On the 6th of May 1898 the Merksworth was hit by a strong gale off Stockton Beach, Newcastle. The force of the waves smashed the engine skylight and let water into the furnace, which extinguished the fire. Water kept coming into the vessel and the crew abandoned it, but out of the 12 men, only three survived.
The 165 ton screw steamer was built in 1874 and registered in 1875 in Sydney.