In 1907, Captain Johnson was still in charge of
Mount Royal. On the afternoon of July 6, he was returning from Hazelton and was steaming through the Kitselas Canyon, when disaster struck. A strong wind pushed her into a large rock formation named Ringbolt Island, wedging her crosswise against the current. Luckily, she held while the passengers and crew scrambled to safety on the shore. Johnson assessed the situation and decided that
Mount Royal could be saved and with ten crewmen, he returned aboard. He had decided that the best way to deal with this problem was to use the
capstan to winch the sternwheeler back over Ringbolt Island. This proved to be a disastrous decision. The king post broke and rammed through the bottom of
Mount Royal and she buckled as the current washed over her, then she rolled upside down and broke into pieces. Although Johnson survived, six of the crewmen drowned, including the first officer. One of the four survivors was rescued by George Little, who would later become the founder of the town of
Terrace. George and a companion spotted the wrecked hull as the wreckage floated past the community of
Kitselas. Curious, they paddled out to it and saw a hand waving at them from a hole in hull. The survivor was
Mount Royal's chief engineer, Ben Maddigan, who was trapped in the bilge and filthy, but unhurt. After George Little chopped him out, Little commented that there must have been some air down there. The exhausted engineer replied, "
I don’t know about air, but there was one hell of a lot of water!" There was a strongbox aboard
Mount Royal when she sank, and the strongbox contained an undisclosed amount of money. The strongbox was never recovered. An estimate of the amount in the strongbox is about $700. The box contained both paper and coin. It has also been stated that there was a large shipment of gold-dust from either the Omineca Country or
Lorne Creek on board. The gold dust theory may be a fabrication. Many ill-equipped attempts have been made to recover the strongbox, but all have failed.{{citation ==See also==