On Christmas Day the Ellen Munn is on its way to Goose Bay for repairs when it sinks in the weak ice. The children are carried to dry ground. A salvage operation follows and the song ends with a warning about weak ice and sailing on Christmas Day.
King's Cove is in Bonavista Bay on the east coast of Newfoundland. I found a Newman's Cove instead of Newman's Sound as mentioned in the song in the same area. Goose Bay is in Labrador. - SH