NELLIE J. BANKS .... con't  

For twelve years the schooner sailed the Gulf of St. Lawrence from southern Newfoundland to Cape Breton and the north and eastern coasts of Prince Edward Island. Rum-running included smuggling of whiskey, gin, brandy, wine and cigarettes, all cargoes being readily available at

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St-Pierre and Miquelon, the French islands off the Burin Peninsula of Newfoundland. Off the shore of PEI, the vessel brought its cargo close to the three-mile limit at pre-arranged locations and times. A network of onshore “bootleggers” ventured out by boat, watching carefully for Customs
  patrol vessels (known as “cutters”). They received the customary welcoming drink of thick dark rum before doing business which seldom amounted to more than 5 five-gallon kegs at a time. The risk of being caught increased over the years as Customs, and after 1932 the RCMP Marine Division, became better equipped but relations between smugglers and enforcement officials always remained cordial. Captain Lillington of the Nellie J. Banks had formerly been a Customs official in Newfoundland
The little schooner became the symbol of the illicit industry during a court case in 1927 after being seized illegally outside the three-mile limit by frustrated officials. The colorful courtroom drama was avidly followed by newspapers and provided unparalleled entertainment for Maritimers, especially when vessel owners won damages from the government. Her notoriety was thus firmly established and later a large stain on a forward sail became her trademark
The legal limit for enforcement of the Customs Act changed from three to twelve miles in 1938 when the schooner was at sea and prompted another seizure of the vessel and cargo. Courtroom drama again drew large audiences, but although the jury found in favour of the captain, the  
cargo was seized and the ship sold by tender. It was renamed the Leona G. Maguire and sailed the Northumberland Strait for almost a decade before being permanently anchored in Murray Harbour. She was hauled out of the water in 1950and subsequently burned unceremoniously in 1953.