During the evening of November 22, 1862, the schooner C. Reeve travelling east to Oswego, New York was run into by the schooner Exchange. The Enchange was headed west for the Welland Canal. The Reeve had departed Chicago with a cargo of 13,500 bushels of corn destined for Oswego. The Exchange had cleared the port of Oswego the previous day with a full load of 2,000 barrels of Onondaga salt bound for ports on Lake Erie.

Collission at night during a snow storm
In the early evening hours a blinding snow storm set in with a strong wind coming out of the north.Visibility was almost nonexistent and neither crew could see ahead of them. Within a short time the schooner Exchange collided with the Reeve and stove in her starboard side just aft of the foremast. The accident occurred approximately 3 to 4 miles off the port of Oak Orchard, New York.

The Exchange had plowed right into the rigging that secured the Reeve's foremast to the starboard side of the ship. This caused the foremost to lose any support and it immediately toppled over the side of the ship. The collision also created a large gap in the side of the Reeve's hull allowing water to pour into the schooner. Within a few minutes the Reeve sank out of sight into the depths of Lake Ontario.

The Exchange was not without significant damage too, as she lost her bowsprit which became tangled in the foremast rigging. She also sustained severe damage to her cutwater, the forward portion of the stem of the vessel which cuts through the water. Leaking but still afloat the Exchange was able to take on board the crew of the Reeve, then turned about and headed back for the port of Rochester. The crew of the Reeve only had enough time to save themselves and consequently lost all their personal effects.

A reporter for the Rochester Union and Advertiser describing the condition of the Exchange after returning to port said "She bears the marks of a collision and reminds one of a bully with his nose badly broken."

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