[5] On July 12, 1904, Spencer was racing the Oregon Railway and Navigation Company's Dalles City on the Columbia about 15 miles upstream from Hood River.

The Spencer's main steam pipe broke, which forced the pilot to steer for the river bank to beach the vessel.

[3] The opinion of the court describes the fierce commercial competition which was the occasion for the race on that date: The boats were plying between Portland and The Dalles, and belonged to opposition lines which were aggressively competing for the passenger business of the two terminal cities and intermediate points along the Willamette and Columbia rivers.

The first to arrive at any place along the route where passengers were received secured the larger part of the business, and, both boats being scheduled to leave Portland at the same hour, speed became an important consideration.

Upon the morning in question, they left the Portland clocks at about 7 o'clock, the Dalles City passing out through the drawbridges a few hundred feet ahead of the Charles R. Spencer.

A struggle at once began, the Charles R. Spencer seeking by her superior speed to pass her competitor, and the Dalles City to maintain the advantage that she had secured in making the start.

As each vessel raced down the Willamette at high speed, they threw up a wake which rocked and damaged large ships moored alongside piers, which resulted in the captains of the steamboats each being fined $50, a considerable sum for the time.

[1][7] In September 1906, Spencer began transporting wheat from inland Oregon and Washington in cooperation with the Open River Navigation Company.