The propeller INDIANA, carrying a cargo of iron ore, sank in Lake Superior after her stuffing box burst, causing the stern post to split. The incident occurred about forty miles above Whitefish Point and some ten miles from shore on a Sunday evening. The vessel quickly started filling with water, and the crew of seventeen men, along with the captain, the owner of the boat, and three passengers (21 people in total), were saved by taking to the small boats. The water entered the vessel so rapidly that it settled to its guards in about fifteen or twenty minutes and put out its fires. The crew attempted to tow the propeller ashore using the small boats but had to abandon the effort when one of the boats was damaged and needed constant bailing. The INDIANA sank in about sixty fathoms (about 360 feet) of water.

The crew reached the shore, camped overnight, and then rigged sails to their boats to head for Whitefish Point, where they arrived on Tuesday. They were later picked up by the schooner St. PAUL and reached the Sault (likely Sault Ste. Marie) on Wednesday.

The INDIANA was an older vessel, about ten to twelve years old, and was owned by Frank Perew of Cleveland. It was worth approximately $20,000 and was insured for $9,000, with $2,300 insured by the North Western company and the remainder insured by the Toledo Mutual and the Merchantile Mutual of New York. The vessel had been chartered for the season by E.C. Bancroft for $6,000. The cargo, consisting of 280 tons of iron ore from the Cleveland Mining Company, was also believed to be insured.

This incident occurred in June 1858 and was reported in several newspapers, including the Buffalo Commercial Advertiser and the Buffalo Republic & Times.

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