Williams was built as the private vessel Grayling - described by sources both as a wooden-hulled screw steam yacht[1] and as a motorboat[2] - in 1907 by B. Frank Wood at City Island, The Bronx, New York, for Justus Ruperti of New York City to a design by the firm of Tams, Lemoine, and Crane.

During her "unofficial trial trip"[3] on 18 March 1918, Williams suffered a broken propeller shaft and was towed to the Philadelphia Marine Basin for repairs.

She suffered slight damage in collision with the salvage tug USS Relief on 27 September 1918.

At 1045 hours on 16 October 1918, Williams got underway quickly to come to the assistance of the sinking British steamer Port Phillip.

She then proceeded to Shadyside, New Jersey, on 18 December 1918, where on that day she was simultaneously decommissioned, stricken from the Navy List, and returned to her owner.