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SS Arctic, an American paddle steamer owned by the Collins Line, sank on September 27, 1854, 50 miles (80 km) off the coast of Newfoundland after a collision with SS Vesta, a much smaller French vessel. Passenger and crew lists indicate that there were probably more than 400 on board; of these, only 88 survived, most of whom were members of the crew. All the women and children on board perished, along with the family of the owner of the Collins Line.
Arctic was the largest and most celebrated of the four Collins steamers that had operated a regular transatlantic passenger and mail carrying service since 1850. After the collision her captain, James Luce, first attempted to assist the stricken Vesta, which he believed was in imminent danger of sinking. When he discovered that his own ship had been seriously holed below the waterline, he decided to run her towards the nearest land in the hopes of reaching safety. His plan failed; the engines stopped when the ship was still a considerable distance from land. Arctic's lifeboat capacity was sufficient for fewer than half of those on board; when Luce ordered these launched, a breakdown in order and discipline meant that most places in the boats were taken by members of the crew or the more able-bodied male passengers. The rest struggled to build makeshift rafts, but most were unable to leave the ship and went down with her when she sank, four hours after the collision. Vesta, which initially appeared to have sustained mortal damage, was kept afloat by her watertight bulkheads and managed to limp into harbor at St. John's, Newfoundland.
Two of the six lifeboats that left Arctic reached the Newfoundland shore safely, and another was picked up by a passing steamer, which also rescued a few survivors from improvised rafts. Among those saved was Luce, who had regained the surface after initially going down with the ship. The other three lifeboats disappeared without trace. The limited telegraph facilities of the time meant that news of Arctic's loss did not reach New York City until two weeks after the sinking. Initial public sorrow at the ship's loss quickly turned to anger at the perceived cowardice of the crew. Despite press calls for a full investigation into the disaster, none took place, and nobody was held legally responsible. Demands for the introduction of further safety measures on passenger-carrying vessels were likewise sidestepped. Luce, who was generally exonerated from blame by the public, retired from the sea; some of the surviving crew chose not to return to the United States. The Collins Line continued its transatlantic service until further maritime losses and insolvency led to its closure in 1858.