The schooner Lincoln, a rum runner, was seized by the Coast Guard and commissioned into Coast Guard service in 1926. A sailing vessel with an auxiliary engine, she was used as a patrol boat tender and supply vessel off the East Coast. In late 1926 she departed Cape May, New Jersey, bound for Baltimore, Maryland, with a cargo of gasoline and oil. After arriving safely at Baltimore she picked up a cargo of scrap metal and set sail for Morehead City, North Carolina. On December 18, 1926, in heavy seas and wind off the coast of North Carolina, she caught fire after her fuel tank exploded. A passing British passenger liner, the RMS Defender, responded to a wireless distress call issued by the Cape Lookout lightship, whose crew had spotted the fire. During a five-hour rescue attempt, the British crew fought heavy seas, winds, and fire to effect a rescue. They managed to save two of the seven aboard the cutter, but the other five perished. The Lincoln sank soon thereafter. The CGC Modoc also responded, but arrived too late to assist. She searched the area for other survivors without success.
| Name | Rating | Duty Station | Date |
| Hansen, O. | CMM | USCGC Lincoln | 12/18/1926 |
| Quirega, P. S. | SC3 | USCGC Lincoln | 12/18/1926 |
| Erlingson, T. A. | BOSN | USCGC Lincoln | 12/18/1926 |
| Hunnicutt, W. C. | MM2 | USCGC Lincoln | 12/18/1926 |
| Alaton, W. H. Jr. | Cox | USCGC Lincoln | 12/18/1926 |