A yellow fever epidemic in 1841 ended its brief period of prosperity and the abandoned remnants of the town were destroyed by a storm surge in 1844.
The land company offered to sell title to the occupied lots in town, but at prices that drove many residents to abandon their homes and move west to the shores of St. Joseph Bay.
Before excavation of the canal began, the company decided to connect Lake Wimico and St. Joseph with a railroad, and work was started on the roadbed.
An 8 miles (13 km) long rail line from St. Joseph to Lake Wimico was completed in March, 1836, and the town became a shipping port.
[4] On the other hand, the presence of a gambling house, a horse racing track, bars, and the many sailors expected in a busy port, resulted in St. Joseph being called the "wickedest City in the Southeast.
Robert R. Reid, fourth governor of the Territory of Florida, and other residents of Tallahassee, died that year of yellow fever that they reportedly contracted while in St.
A hurricane, "The Late Gale at St. Joseph", hit the town on September 14, 1841, destroying the wharf, but with the collapse of trade, no ships were in port.
[3] On May 1, 1844, the USS General Taylor called at St. Joseph, and found a town largely deserted, with only a few residents preparing to leave, and some workers dismantling houses.
Later that year a hurricane struck St. Joseph on September 9 with a large storm surge, destroying whatever remained in the abandoned town.
[12] The Constitution Convention Museum State Park nearby explains the role of St. Joseph in the early history of Florida government.