The second _Kate_ was a new iron steamer, double-screw propeller,
344 tons, English built, commanded by Captain Stubbs. She had made a
successful run into Charleston with a valuable cargo, and was also
successful in running out again with 700 bales of cotton, which she
landed in Nassau.
She had loaded a second inward cargo at Nassau and sailed for
Charleston, but, failing to elude the blockaders, she ran for
Wilmington and on July 12, 1863, at 4.55 o'clock a.m., was making for
New Inlet close ahead when she was intercepted by the Federal blockader
_Penobscot_, which opened a heavy fire on her and drove her ashore on
the south end of Smith's Island, where her wrecked hull still remains.
The Federals attempted to haul the _Kate_ off into deep water, but
were prevented by the Confederates on shore, who drove them away. With
the exception of two of her crew who remained and were captured, the
officers and men of the _Kate_ escaped to the shore.