A storm described as "the most severe of the century" developed. The Palme tried to seek shelter in Dublin Bay, but was driven south-east. It was mid-winter and extremely cold. The sea was so heavy that waves were crashing over the light house at the end of the East Pier of Dún Laoghaire. On Tuesday 24 December the Palme was seen dragging her anchor off Merrion strand. The Palme was in danger of being smashed on the rocks. She fired distress rockets. 

 

The Kingstown (now Dun Laoghaire) lifeboat was launched with 15 voluntary crew on board. The lifeboat, Civil Service Number Seven, had only recently been acquired and was under the command of Coxswain Alexander Williams. In those days lifeboats were large open rowing boats which required great strength and skill to control. With great difficulty and superb seamanship the lifeboat got close to the Palme but because of the severe sea conditions was unable to draw alongside. In the course of manoeuvring, the lifeboat was hit broadside by the waves and then, in full public view, the lifeboat was raised by a mighty wave and capsized, throwing all fifteen crewmen into the sea. The crew of the Palme made frantic, but unsuccessful, efforts to launch their own lifeboat which was smashed against the hull of their ship. Soon after, a second Kingstown lifeboat, Hannah Pickard, arrived on the scene but it too capsized. Luckily it righted itself and the crew managed to scramble back on board. The Poolbeg lifeboat was also launched but failed to get to the Palme. Two tugs also failed to get to the Palme. It became clear that the entire crew of Civil Service Number Seven had been lost.