The passenger manifest was lost with the collision, but the sinking of Lady Elgin resulted in the loss of about 300 lives[2] in what was called "one of the greatest marine horrors on record".

The Lady Elgin disaster remains the greatest loss of life on open water in the history of the Great Lakes.

In 1899, Great Lakes historian J.B. Mansfield called Lady Elgin's sinking "one of the greatest marine horrors on record".

[7] On the morning of September 6, 1860 Lady Elgin left Milwaukee, Wisconsin, from the Dooley, Martin, Dousman, and Company Dock, for Chicago, carrying members of Milwaukee's Union Guard to hear a campaign speech by Stephen A. Douglas, Abraham Lincoln's opponent, although there is no clear historical evidence that Douglas actually appeared.

The passengers spent the day of September 7 listening to political speeches followed by an evening of entertainment by a German brass band on board Lady Elgin.

[6] On the return trip to Chicago that night, the brightly lit Lady Elgin was steaming through Lake Michigan against gale force winds when she was rammed by the schooner Augusta of Oswego.

Augusta was sailing using only a single white light, mounted on a five-foot Samson on the bow, and did not attempt, or was unable, to turn to avoid the collision in the gale.

[9] On the morning of the collision (September 8) at 2:30 am, Augusta rammed the port side of Lady Elgin, damaging her own bowsprit and headgear, while holing the latter ship below the waterline.

[11] About 300 people died in the sinking,[2] including Captain Wilson, who was lost trying to save two women when he was caught by the surf and forced into the rocks.

[14][page needed] The Lady Elgin disaster remains the greatest loss of life on open water in the history of the Great Lakes.

[6] In 2009, the Milwaukee Irish Heritage and Cultural Center launched a $200,000[b] fundraising campaign for a mammoth, two-story bronze memorial statue for the Lady Elgin disaster.

[18] Steamboat historian Peter Charlebois noted that, after the investigation, Captain Malott and Lady Elgin's crew and owners were absolved of any blame.

Divers must obtain permission from Zych and Lady Elgin Foundation,[20] and are expected to observe the preservation laws governing historic sites.