The V & S Railway awarded a contract to transport mail to the Gulf Islands in February, 1900, and the S. S. Iroquois was built to ply the waters between Sidney, Nanaimo and the Gulf Islands. She entered service on April 2, 1900, and made over two thousand trips from Sidney through the Gulf Islands. The 82 feet long vessel was capable of carrying 100 tons of passengers and freight and travelling at up to 12 knots.
On April 11, 1911 the S. S. Iroquois left the dock at the foot of Beacon Avenue in Sidney with a strong southeaster blowing. The vessel was loaded down with cargo including coal for ballast, 20 bales of hay stacked up on the deck, 20 cases of pickled pig's tails, a large quantity of rice, a tonne of iron and 10 tonnes of fertilizer. The exact number of passengers was unknown because passenger lists were not kept, but it is thought to be about 30. When the ship was fifteen minutes out from the dock the cargo shifted and the S. S. Iroquois began to list. The Captain headed for shore but was unable to get near before the ship capsized. It is believed that 21 people died as a result of the accident. Because of the tragedy strict loading regulations were introduced and enforced and all coastal vessels were ordered to keep exact passenger lists.