On its second trip to Killarney on Saturday, November 21, the cargo onboard "Hibou" shifted while she was operating in relatively calm waters, causing her to founder and sink only 10 minutes out of Owen Sound. It is thought that while testing the accuracy of a new compass, Captain Mckay had made a sharp turn to the port side, causing the cargo to shift to starboard. The ship listed to starboard, and did not recover. In the ensuing tragedy, not only the "Hibou", but seven of the 17-member crew, and Captain Mckay himself, were lost.