In mid-summer of 1865, the keel was laid for the steamboat Olive in Carleton, Saint John. She was built by the Olive firm for the Express Line. She was launched six weeks later, and within the next fortnight, the side wheel machinery taken from the wreck of the Heather Bell had been installed and she made her maiden voyage on the river. The speed of her construction can be attributed to the readily available labor and timber supplies existing at this time. She was given the name Olive in honor of her builder and was declared to be "as clean looking as a race gig". She was 161 feet long, beam of 23 feet, and a capacity of 343 tons.
On October 4, 1869, while on her way to Fredericton as a night boat, she encountered a terrific storm which later received the name of "The Saxby Gale". The gale struck with tremendous force when the Olive was passing Scovils, below Gagetown. As she proceeded up through No Man's Friend, it soon became evident that due to the high wind she was becoming quite unmanageable. At first the passengers did not realize the extent of the hurricane and continued their revelry in the saloon, but very soon they were brought face to face with the worst storm in the history of transportation on the St. John River. Despite Captain Weston's best efforts in the heavy wind and total darkness, the steamer was blown ashore on the Harrison interval. As she struck, the furious gale ripped the saloon clear of the deck below and carried it overboard, putting out all the oil lights.
Panic seized the passengers. The captain and crew first tried to ascertain if any of their number had been carried overboard with the saloon, and then tried to calm the travelers, many of whom were struggling with each other for possession of life preservers. One man, a portly liquor dealer from Saint John, was found to have two life preservers firmly tied to his person, although by this time the Olive was held firmly on the shore by the gale force wind. Fortunately, no lives were lost and no serious injuries occurred. Damage to the vessel, other than the saloon, was minimal. In the morning, the wind abated, and the Olive was freed from the shore and proceeded on her way to Fredericton.
One of her final duties was to supply for a short time on the Grand Lake route for the steamer the May Queen, which unfortunately had run aground in the Salmon River.
In 1876, the Olive was taken out of service. It was rebuilt and renamed the Prince Arthur. The Prince Arthur was transferred to Lake Ontario in 1878.