Action of 16 January 1916 The Action of 16 January 1916 was a single ship action of World War I . It was fought between a German auxiliary cruiser and a British merchant ship off the Portuguese islands of Madeira in the Atlantic Ocean . Background . Most successful of German commerce raiders during the war , SMS " Mowe " was commanded by Corvette Captain Nikolaus zu Dohna - Schlodien and was assigned to duty in the Atlantic . The " Mowe " was originally a freighter launched in 1914 until converted in 1915 . She displaced 9 , 800 tons and was armed with four 150 - milimeter guns , one 105 - millimeter gun and two torpedo tubes . Her opponent was the one gun merchant ship , SS " Clan Mactavish " of Great Britain laden with fur , meat and cotton . Action . " Mowe " was steaming approximately 120 miles south of Madeira on 16 January 1916 , with the merchant steamer SS " Appam " , a vessel previously captured by the Germans who installed a prize crew and transferred several dozen prisoners of war to . At sunset lookouts aboard the " Mowe " sighted smoke on the horizon , a sure indication of a ship . Immediately Captain Dohna - Schlodien ordered the " Appam " to remain behind while he went to investigate . Several minutes later , at about 9 : 00 pm , the " Mowe " came within a distance to where her lookouts could make out that the smoke had originated from a large merchant ship , later identified as the 5 , 816 gross ton " Clan Mactavish " of the Clan Line company . By the time SMS " Mowe " came within close range , it was dark , so the Germans approached cautiously . Using a signal lamp , Dohna - Schlodien requested the steamer ' s name but the British responded by asking that the Germans first identify themselves . Captain Dohna - Schlodien signaled that his ship was the SS " Author " , sailing from Liverpool to Natal . " Mowe " reportedly looked very similar to the " Author " which was sunk by the Germans a few weeks earlier . The " Clan Mactavish " then signaled her name and that they were returning to Britain from Australia . This was the end for the merchantman , now identified as enemy , Captain Dohna - Schlodien crossed the steamer ' s bow and ordered her to halt , a signal which certainly shocked the unsuspecting Britons . Instead of stopping , the British altered course and increased speed , hoping to outrun the raider . Warning shots were fired but they were ignored so a chase began . The one gun of the British ship , mounted on the stern , was manned and opened fire on the chasing Germans but the shots were not well directed . Some splashed into the water near the auxiliary cruiser but ultimately none struck the German vessel and therefore they suffered no damage or casualties in the engagement . The German sailors responded to the British with counter battery fire from their 150 - millimeter guns and for several moments the two vessels fought . " Clan Mactavish " fired at the pursuing " Mowe " and during this she sent distress calls out which were received by the armoured cruiser HMS " Essex " . However , the telegraphist aboard the cruiser failed to inform his superiors of the action so no help was sent . Eventually , after taking several hits topside , the one gun " Clan Mactavish " began to burn and her captain signaled the " Mowe " that they were surrendering . " Mowe " then maneuvered in for boarding . All of the German rounds were hits with the exception of the warning shots . The steamer was quickly seized , prisoners removed and charges set for scuttling . Within moments of boarding , the explosives laid in " Clan Mactavish " were detonated and she sank to the bottom of the ocean . Eighteen British sailors were killed in battle or just after and five others were wounded . The commander of " Clan Mactavish " was a Royal Navy captain and her gun was manned by two navy sailors , all three were captured among dozens of civilians . At this point the Germans now held a total of over 500 Allied prisoners of war on the SMS " Mowe " and SS " Appam " . Aftermath . After destroying the steamer the Germans reunited with " Appam " and set a westward course , thus avoiding any possibility of encountering the British cruisers in the area . Two of the cruisers were just over 100 miles from the battle area that night and could have been moved to a position of intercepting the Germans had the telegraphist aboard " Essex " responded . " Mowe " went on to sink several more Allied ships before returning home . Upon arrival , Captain Dohna - Schlodien received an Iron Cross second class . During her second cruise , " Mowe " defeated another one gun steamer in an action in the mid Atlantic in March 1917 .