As shipping agents and owners are not in the business of salvage, the wreck of the Walter Hood itself was quickly sold at auction on 2 May 1870 by Stubbs and Co for £95. However the flotsam that had washed ashore was owned by the insurance companies, and they were determined to retrieve and sell as much as they could.
By the 1920s, the original Walter Hood graves had gone through several bushfires, severely damaging the inscribed slabs, and the high tide mark was gradually encroaching on the site. A group of men led by James Murray of Conjola decided it was time to move the burials to a safer site with a new memorial cairn covering the graves.
At the dedication of the Walter Hood memorial cairn near Wreck Bay in 1927, which took place 57 years after the wreck, an extraordinary thing happened. Robert E.F.Williams, one of the last survivors of the wreck, made a startling and disturbing allegation.