Was this a family story? Do you have any other information? How do you know it was sunk? What information are you looking for?

Assuming it was a family story and that is all you have, I would first attempt to check the Ontario newspapers from that period. They would have listed incoming/outgoing vessels. They may have also reported on the sinking.

I am not familiar with Ontario, but they may have a local Maritime Association that might be able to assist with you.