On November 20, 1900, the Pankratz Barge No. 2 was in tow of the tug Duncan City when it suddenly veered to port, slamming into the north side of the Sturgeon Bay canal. Its bow was punctured and it sank in the canal; the owner, George Pankratz, was given until noon of the next day to remove the barge, or the government would do it. Since there were no other dredges available to remove the stone on the wreck, Pankratz opted to let the government do the job. Once the stone was pulled off, a diver inspected the hull and found the Pankratz Barge No. 2 relatively intact, save for the hole in its bow, and claimed that it should float once the stone was fully removed. However, even with the stone removed, the barge did not budge, and two tugs were unable to pull the barge from its spot. Dynamite was placed in the ship's hold and it was blown to pieces, dredges worked to pull the wreck apart. Tugs pulled and dumped the debris out into Lake Michigan.
Today a side hull fragment (about 54 feet long) lies about a half a mile northeast of the canal right on shore. It's likely that other pieces have washed up on shore over the century since the Pankratz Barge No. 2's sinking, possibly being taken by residents and visitors.