Six miles west of Port Angeles the Diamond Knot (Property of the U.S. Maritime Commission & under charter to the Alaska Steamship Company ) and the Freighter Fenn Victory collided at 1:15am on August 13th, 1947.

The Fenn Victory's bow drove a full 14 feet into the side of the Diamond Knot mortally wounding this proud ship. In her hold was over 154,000 cases of Canned Salmon, representing 10% of the years Salmon catch. Her cargo was valued at over $4,000,000.

With the main deck of the Diamond Knot awash the Fenn Victory separated herself, making way to port under her own power. Tugs moved in taking the Diamond Knot into tow attempting to reach the sheltered waters of Crescent Bay. Violent currents flowing off the tongue of Point Reef forced all tugs to chop their towing hawsers at 8:15am. The Diamond Knot was going to the bottom.

There was no time to waste, any significant delays would result in the loss of her valuable cargo. An equipment barge rushed to the wreck's position. A mother barge anchored herself over the Diamond Knot's position and utilizing an innovative water vacuum proceeded to salvage the cargo

Divers working in shifts cut away about 90% of the Diamond Knot's port side. Plate by plate, hour by hour, can by can barges carried away the Diamond Knot's cargo.