In the winter of 1859, two of the finest vessels of the line were lost, and with them a great number of lives. The winter route of the Allan steamers between Liverpool and Portland ran westward from Ireland to Cape Race, the south-eastern extremity of Newfoundland, thence to the waters between Sable Island and Nova Scotia, the coast of which the steamers skirted for its whole length. After getting clear of Cape Sable, the southerly point of Nova Scotia, vessels had a deep water passage for the rest of the voyage.

The Nova Scotia coast was a source of much anxiety to navigators. The "Columbia," the only vessel of the Cunard line which was lost until this time, was wrecked on this coast, as were also the "Humboldt" of the American line and the "City of Manchester" of the Inman line. It was on this coast also that the two Allan ships were wrecked. On the 29th of November, the "Indian," on her way out from Liverpool, ran ashore on the "Deal Ledges" near the fishing hamlet of Marie Joseph. Parting amidships, some sixty of her passengers were lost. It was made clear that the captain had taken every precaution after leaving Cape Race, but he had been misled by defective charts.

Three months later, on the 20th of February, 1860, the "Hungarian" went down among the rocks off Cape Sable, and not a soul on board was saved. This steamer was the pride of the fleet. She was a new vessel, and had a record of three consecutive passages in twenty-seven days and twenty-three hours. The facts disclosed by the investigation were few. But it did transpire that the captain was noted for a certain dash rather than for seamanly prudence. It was said that by his skill in shaving sharp corners and scudding over shoals, and by his recklessness in keeping up a head of steam, he had converted the slowest of the Canadian steamers into the fastest.

News of the disaster to the "Hungarian" soon reached Montreal. It was melancholy news for the city, and public grief was soon followed by popular anger with the Allan Company and with the postmaster general. Smith was denounced by the legislature as particeps criminis in the destruction of the lives which had been lost on the "Hungarian."

A parliamentary investigation was ordered into the circumstances, and the report[312] of the committee is instructive in the information it gives on the coast lights, and on the problems, which the substitution of iron for wood in the construction of steam vessels raised for those dealing with questions of navigation.

Neither Sable Island nor Cape Sable, on the winter route, were provided with lighthouses; and the lower St. Lawrence was most inadequately furnished with the indispensable guides for sailing by night. From Forteau Bay on the straits of Belle Isle, a vessel ran four hundred and fifty miles before it passed a lighthouse, and it then entered a stretch of one hundred and twenty miles which it was obliged to make without the assistance of lights.

On the comparative merits of iron and wooden vessels, expert opinion was unanimous in favour of wooden vessels. It was considered that, in the event of a vessel being wrecked or stranded, there was less liability of loss of life in the wooden vessel. There was also the effect of the material of which the vessels were built on the working of the compass. In iron vessels, the compasses were a source of great and continued anxiety.

Before the vessels proceeded to sea, the local attraction from the ship was neutralized by magnets and, thus adjusted, the compasses acted with tolerable accuracy while the vessel was at sea and beyond the influence of land attraction. But when approaching the land the compasses were not to be depended upon. There was, it was asserted, an attraction from the land, but whether the mass of iron in the vessel was first acted upon by the land attraction, was a problem of which the existing state of science did not afford a solution.

The Cunard line at this time—1860—consisted of ten vessels. Only two were of iron; and it was noted that the irregular action of the compass on the iron vessel "Persia," after it left Cape Race, led the vessel into danger which was only averted by unusual care with the soundings. The committee of the legislature concluded by expressing a fear that, until new light had been thrown on the susceptibilities and workings of the mysterious magnetic forces, it might be necessary to abandon the construction of iron vessels.

Misfortune continued to dog the course of the Canadian steamers. In 1861 two more vessels were lost—both on the St. Lawrence route.