In the struggle of the packet boats against rail competition the Anchor Line put up a bold fight. To reduce operating expenses they built the Bluff City, the only stern-wheeler the Anchor Line ever built. She came out new in October 1896, built at Jeffersonville, Indiana. But fate was against her as she lasted but one year. On November 18, 1897 she caught fire at Chester, Illinois on the Mississippi River. The fire was supposed to have been started by a spark from a pipe falling among some logs. She and her cargo were a total loss. The steamer was valued at $55,000 and the cargo at $30,000.