The wooden tug A.W. Lawrence was built in Sturgeon Bay by John Gregory of Chicago. The craft was used to tow lumber to and from the Sturgeon Bay Lumber Company's sawmill throughout the 1880s. In early spring of 1883, the A.W. Lawrence received a new engine and boiler from the Ben Drake. In October 1886, it collided with the tug George Nelson, and wintered at Sturgeon Bay that December.
On October 31, 1888 at 2:35 A.M., the boiler of the A.W. Lawrence exploded while racing the tug Merrill in the Milwaukee Harbor. The accident occurred approximately 3 miles offshore of North Point. Only two of the Lawrence's crew survived, four perished, and the vessel was a total loss in the explosion. Thomas Dooley, one of the survivors of the wreck, commented to a Milwaukee Sentinel reporter that both tugs were going ahead under full steam, but did not think they were racing as there was no tow in sight. Dooley stated, "I don't know whether the Lawrence carried more steam than usual or not."

The boiler of the A.W. Lawrence was inspected by the local government inspectors the previous spring, and found the boiler to be in good condition. It with-stood a cold water test equal to one-third more steam than she was certified to carry. It is theorized that the engineer must have suddenly turned on the water feed while the tug was carrying a full head of steam, resulting in the explosion.