The second James Lee was built at Jeffersonville, Indiana in 1898. Her dimensions were 204 feet in length, 36 feet beam and 5 feet depth of hold. She ran in the Memphis and Friar's Point trade, Captain John H. Darragh commanding. She was eventually converted into an excursion boat at Memphis and renamed the DeSoto, about 1917. In January, 1918 she sank in the ice at Memphis along with the Georgia Lee.