November 30, 1866: "Marine Disaster--The schooner Josephine owned by Captain Robert Graham of this place went ashore on the Peshtigo Reef (near Peshitgo Point in Marinette County, Wisconsin) on Friday, Nov. 30th, at eight o'clock in the morning. Efforts were made to get her off but without success and she finally went to pieces. The freight, rigging and sails were saved and the hull was sold for $150. We believe there was no insurance on her. This is the second mishap that Capt. Graham has experienced during the season..." Door County Advocate December 13, 1866.

In January of 1867 the Kewaunee Enterprise reported that Robert Graham had began building another schooner to replace the Josephine.