At 13:00 hours, the convoy was attacked by G4M1 Betty bombers from the 751 Kokutai and 705 Kokutai. One squadron attacked an AK and corvette, but scored only near misses. One squadron attacked s'Jacob An American pilot claimed a Betty shot down but misidentified escorting fighters as Ki-43 Oscars. An aerial bomb hit the number 3 hatch causing major structural damage and causing the vessel to sink.
Sgt. James E. Guilford, Jr writes in "The George Watson Saga":
...We were 14 miles from Oro Bay. Land was barely visible on the horizon. Watson knew that I could not swim... Watson and I jumped into the ocean towards the rope raft. As I jumped I held my breath. I went so far down in the water, I thought I would never come back to the surface. Watson was there to assist me to the raft... with his help and God's help, I did not take another breath until I reached the raft with my hands.
Later Watson was brining more soldiers in distress to the raft. I yelled at him to put some of the soldiers on some of the other floating material. That was the last time I saw George Watson alive. There was debris all over the ocean. The huge freighter had taken on a lot of water. Within minutes after the bombs hit the ship, it listed to starboard and rolled over. It pitched forward. Its bow dipped into the water. Then it took a vertical position and gradually disappeared into the ocean.
Within minutes everything was tranquil and peaceful again, as if nothing happened. All of us, including George Watson, were rescued by the Australian corvette, our escort. Watson had been pulled out of the ocean unconscious and exhausted. I knew nothing of his rescue or condition at this time. While the crew was trying to revive him, they kept what happened to me. When the found out he could not be revived, they finally told me. George Watson was buried at sea with full military honors. I was amazed at the number of soldiers he helped and saved, before he succumbed himself from exhaustion. Even the white Lieutenant, who was in charge of our detail related how George Watson rescued him.
Pvt. George Watson's Medal
Lying upright on the bottom, few divers go to this wreck. Thousands of fish that inhabit the wreck including mantas, whale sharks, giant groper and sharks. The funnel is the most predominant feature towering above the rest of the vessel. Divers from this vantage point can look down on the rest of the ship and admire the fish life and soft corals. The Jacob's wheelhouse has been fortified against attack and her telegraphs and bridge machine guns are as they were when she sank. Her propeller is still intact.
The cargo holds are full of timber, ammunition, weapons, food and fuel. Crockery is scattered throughout the wreck, several pieces showing the Dutch shipping company's emblem KPM. And below decks, Coca Cola bottles showing their place of manufacture and dating from 1938 to 1942.