Daniel Lyons was a schooner that sank in Lake Michigan off the coast of Algoma, Wisconsin, United States.

[4] In the early morning hours of the next day, the Daniel Lyons spotted the running lights of the Kate Gillett, a schooner that was carrying fence posts from Cedar River, Michigan to Chicago.

When it became apparent that the vessels were about to collide, the Daniel Lyons tried to make a desperate evasive move, but it was unsuccessful.

The Kate Gillett struck the Daniel Lyons in the side, pushing her stem nearly halfway through the hull.

Both crews worked at a vigorous pace to keep the ship afloat, and made it to port the next day.