UA266 / 18Jan69 B727-222QC N7434U Night T/O from LAX at 1817 hrs (climbed into low cloud), reported Fire Warning on #1 Engine; then loss of all electrical power, after a minute-and-a-half crashed into sea [950 feet depth].
"...the story I got from a UAL pilot... is it a legend...?"
Urban, I'm afraid.
The referenced flight had departed about five minutes prior to my approach to 25L at LAX, and the tower controller asked if we could proceed out to sea, and agree to be radar vectored to where the target disappeared.
I agreed, and did so.
I don't recall any clouds being present, and we were able to circle the location for about ten minutes, at 500 msl (in a BE99 type aircraft) while other aircraft and surface vessels were enroute.
I returned for landing at LAX and resumed normal duties.
There was no fire in any engine that I know of, and yes, the airplane had been dispatched with an engine generator inoperative, in accordance with the MEL.
Sorry. Igh, it was crew error, plain and simple.
The Flight Engineer switched OFF the battery switch after the remaining engine generators had tripped off line.
A fatal mistake.