Smith continued to invest in shipbuilding, mainly in Saint John, New Brunswick, and was a principal in the Avon Marine and Shipowners Insurance Company.
Black Watch sailed from Windsor on 6 June 1877 bound for New York in ballast (heavy material placed in hold for stability).
The ship left Germany in ballast (700 tons of stone and sand) on 10 September to cross the Atlantic and return to New York.
Black Watch was driven onto the rocks off the southwest point of Fair Isle[1] while attempting to navigate the channel at night in misty weather.
The court determined that if the Captain was unable to obtain clear and concise instructions for navigating through the Scottish islands as he claimed, he should not have undertaken such a difficult and perilous passage.