On March 8, 1943, the Army transport "Jacob" was near Porlock Harbor, New Guinea, when it was attacked by nine high-flying Japanese bombers. The bombers scored three direct hits on the "Jacob" causing a large fire which could not be extinguished, so the order was given for all to abandon ship. After the ship was abandoned, Watson remained in the water and, instead of trying to save himself, assisted soldiers who could not swim into life rafts. Weakened by his exertions, he was dragged down by the suction of the sinking ship and drowned. The minesweeper which had been escorting the "Jacob", rescued 158 men. Watson's body was never recovered. On June 13, 1943, he was awarded posthumously the Army's second-highest medal for valor, the Distinguished Service Cross (DSC) for extraordinary heroism. He was the first Black American serviceman in World War II to receive this decoration.