On September 1, 1951, as the Fisherman's Special emptied its passengers, 62 fares climbed aboard Pelican, as did her captain, Eddie Carroll, and mate.
While rounding Montauk Point at approximately 2:00 PM, Pelican was hit by two successive waves on the starboard quarter and capsized to port, spilling most of her passengers and crew into the water while trapping others inside the cabin.
The accident occurred within sight of Montauk Lighthouse, approximately one nautical mile (1.9 km; 1.2 mi) north off the point in the area known as Endeavor Shoals.
The U.S. Coast Guard picket boat that responded approximately one hour later was only able to rescue one passenger found clinging to Pelican's hull.
The failure of Carroll to keep himself aware of the weather conditions and to properly distribute his passengers on the vessel were also cited as reasons for the capsize.
The Long Island band Brand New wrote the song "Play Crack The Sky" about Pelican's demise and included it on the 2003 album Deja Entendu.