The Mary Elizabeth was built in Green Bay, Wisconsin in 1844 by John P. Arndt. It was launched 1 June 1844 at 3pm. It was a single decked three-masted schooner. The small vessel was one of the first three-masted schooners ever built on the Great Lakes. On 28 May 1844, the Mary Elizabeth arrived in the harbor in Racine, Wisconsin during the worst part of a gale. Captain Henry B. Ketchum wasn't acquainted with Racine Harbor, but managed to dock the ship in the middle of a gale. On 5 May 1845 the Mary Elizabeth departed Milwaukee for Chicago. It was reported that on 25 June 1845, the schooner was loading lumber in Green Bay that was due for Copper Harbor, Michigan on Lake Superior. There was another small schooner named Mary Elizabeth built in Detroit in 1836 and was portaged up the rapids at Sault Ste. Marie, Michigan and then operated on Lake Superior. This may have been a confusion in the media of the time. On 4 August 1846 the Mary Elizabeth arrived in Racine with a cargo of wheat.
On 14 August 1846 the Mary Elizabeth departed Green Bay for Buffalo, New York where the schooner went ashore on or near Louse Island (Rock Island). The crew and cargo was rescued. The ship was a total loss after being battered and going to pieces in heavy seas while grounded. The crew was returned to Green Bay aboard the Janet.