To many people in the city last Sunday, who from their different points of observation were scanning the lake with glasses, during the heavy gale, it was evident that some boat of small dimensions had found a grave beneath the waves. At any rate, those looking out upon the water saw, for some length of time, a small craft manfully struggling against the wind, and then suddenly disappear. The next sight that greeted their eyes was that of an in coming propeller, which was suddenly seen to leave her course and dart out into the lake, in the direction where the smaller vessel was last seen. The knowledge of this observation, which was taken at Wetmore's sawmill, flew like the wind from mouth to mouth, and it was not long before the report had nearly as many different interpretations as it had hearers, and to many people in the city who had relatives and friends known or supposed to be on the water, the intelligence carried with it great alarm and anxiety for their safety, and fathers, brothers and friends were made almost frantic in their anxiety to learn if any of their dear ones were among those who had found a watery grave. It was known that a party of young men from this city had left the night before on the Grace Ely for Sauk Head with a cargo of supplies for the camp at that place, and the fears that it was this boat with its well known occupants that had foundered increased the anxiety and made the minutes of the coming intelligence by the rescuing barge seem like hours. On the arrival of the barge, towing a yawl boat which was soon landed on the beach, Capt. W. H. Daniels, of the schooner Tom Boy, with his assistant, a lad of 15 years of age named Willie Annear, stepped ashore, and the simple story of the captain, who said that the Tom Boy had sunk, and that no lives had been lost, relieved the terrible anxiety to a considerable extent, although much fear was still entertained for the safety of the boys who had gone out the night before. As soon as practicable our reporter interviewed Capt. Daniels, and from his lips gained the following story of the wreck.

The schooner Tom Boy was bound to Marquette from Hancock, laden with 2043 kegs of black powder, consigned to C. H. Call, of this city. The entire crew of the boat consisted of the owner, Capt. W. H. Daniels, and Willie Annear, who acted as assistant. About 6 o'clock on Sunday morning a severe gale commenced blowing from the south-west, which compelled the Captain to take a close reef in his main and foresail, in order to keep the vessel right side up and bring her with safety to port. His course lay toward Shot Point, and when on his way across the bay, and about two miles out from Bon rocks, near Presque Isle, he discovered that the schooner had sprung a leak. As soon as his peril was realized the captain lowered sail and hoisted the distress flag from the main rigging. At this time the flag of distress could be of no avail as no vessels were in sight from any direction, but with that coolness born of many years' experience on the seas, the captain went to work at the pumps, and from the hour of half past six till half past eleven, a.m., the work of pumping was kept up without intermission, the water slowly but surely gaining on the doomed craft. At the hour last named Capt. Daniels gave up all hopes of saving the Tom Boy, and with an axe cut away and lowered the yawl boat, in which he and his boy assistant, after a hasty but final farewell to their pride and floating home, embarked, the schooner sinking less than five minutes after they left her. Captain Daniels was so intent upon keeping the yawl from swamping that he was unable to say positively whether the Tom Boy went to the bottom or not, although he thinks she did, and has abandoned all hope of her recovery; but he says that when nearly under, and the masts but a few feet out of the water, the vessel suddenly keeled over and disappeared. When she went down or swamped she was, as near as he could judge, about 10 miles due east of the south end of the Marquette break-water, and about 5 miles due north of Shot Point, in about 50 fathoms of water. The Tom Boy was well known at this place, having for a number of years been employed about here and other Lake Superior ports in carrying local freight. Of this boat and her captain local poets have often sung in our columns, and others who would be poets but could not, have oftener to her dedicated the products of their diseased and uncultivated brains, and even Cinders himself, who makes a target of any and everything, has not slighted the Tom Boy, who has furnished him many occasions on which to vent his sarcasm. The boat was 50 feet over all - 14 feet beam, 4 feet 8 inches of hold, and 19 tons burden. She was built 12 years ago, rebuilt some four or five years since, and during the ownership of Capt. Daniels has been engaged in taking explosives from this city to Hancock. The loss to Capt. Daniels, including the boat and personal effects, will reach about $2,000, and the loss of the cargo will foot up about $5,000. Capt. Daniels has been upon the seas for upwards of twenty-two years, during which time he has suffered shipwreck nine times - eight of which were on salt water. On landing here last Sunday the captain and boy were without hat or coat and in a half starved condition, and had they not been picked up when they were it is more than probable that they would have fasted long and suffered much from hunger and exposure.