In the middle of the night, a fire broke out at the terminal building near the Key Ferry slip in Oakland. The ferry Peralta, which is moored there, can't leave her berth in time. Three Key System employees managed to break open a window and climb inside. They rescued the day's receipts of $8,000.
Her tie lines are cut in an attempt to save her, but she drifts away from shore, engulfed in flames. By morning, flames have gutted the Peralta, and her superstructure is melted and twisted. The Key System decides not to rebuild her.
Four months later, the Puget Sound Navigation Co. bought her hull for use in the construction of the ferry Kalakala.