The picture of the man with the hatchet with the noose tied around his neck is indeed Master Gracey, and our Ghost Host. There are many stories that people can sit there and tell you, some of them go well together, but other stories sound and flow better than the others. One of the stories I've come to love is this one:
Master Gracey and Elizabeth were cousins. She was much younger than him, and he was a millionaire who had inherited the mansion from his father, after he died. Master Gracey lived with few servants, and was known to throw such elaborate parties. His father had taken in a gypsy woman off of the streets, whom none of the town folk liked. They called her a witch, and spread nasty rumors about her. It was only Master Gracey who could stop the town's leering eyes from peering over the house. This protection she received from Master Gracey caused her to fall in love with him, but sadly, he had eyes for another.
Elizabeth and Master Gracey fell in love, and Madame Leota hated this. She despised this new girl, and she believed that she was stealing Master Gracey from her. In disguise, she walked through town, spreading rumors that Elizabeth was a tramp, and that she had already slept with nearly all the bachelors in town. She told them that Elizabeth secretly wanted to kill him so she could inherit his mansion and his money. Leota hated Elizabeth and the town, but what she hated more than them was Master Gracey himself. She felt betrayed and hurt, and she wanted to curse him and Elizabeth and the whole town if she couldn't have her way.
When the rumors about Elizabeth and Master Gracey hit home, they tried to prove the people wrong by getting married and celebrating their union in front of everyone, showing their undying love for one another. Leota tried pleading to Master Gracey, saying she loved him, and she needed him. He refused her, and in despair, Leota went to her seance room, and she knew it was time to cast a spell; a curse. She would ensure that Elizabeth and Master Gracey would be torn apart forever.
Still being quite a child, Elizabeth wanted to play hide and seek with her new husband on their honeymoon. She hid in the attic, in a trunk, and some unseen spirit from beyond locked her within, and she suffocated to death. Leota's spell had worked. But it had backfired. It was too strong, and she ended up sealing herself in her own crystal ball. To this day, some say you can hear her spirit still channeling the "spirits from somewhere beyond."
As for Elizabeth, she still waits there, for her husband to come find her. After she died, the ground's keeper finally found her lifeless body in the attic when he was cleaning it out. During the funeral in front of the mansion, people still jeered at Master Gracey, saying that the love was false, and they accused him of murdering her because she had supposedly "cheated" on Master Gracey. He held the ring up before the town and declared that he loved her, and she would take his love to her grave, but something "spooked" the horse, and Master Gracey and the ring were flung from the hearse, and the ring was stomped into the cement. In a panic, one of the townsmen shot the horse, dead, for fear it may trample him too.
Gracey felt that he had finally lost everything. He lost his wife, his dignity, and the trust the townspeople had in him. He was alone, and wanted to be left that way. The parties stopped, the lights barely flickered at night, and the mansion became cold and dark. He wandered the halls aimlessly, searching for some speck of hope, but none would come. He drank himself to insanity, and found that he would sometimes see things or hear things. He thought he found himself in a room with no way out. He began to hyperventilate and panic, hearing voices laughing in his ears. They mocked him and taunted him, but somewhere in those voices, he heard Elizabeth's. A wall seemed to slide away in this room, and he followed her voice, calling for her name. He followed the voice up to the attic, and the voice convinced him to come to her. He obeyed, knowing only one way to come to her. He heard the spirits mocking him, still, telling him to free himself from this world. And so he did... Master Gracey tied a noose, threw it over the rafters, and hung himself.
In a way, the spirits were right. He did free himself... from his body. However, even when he was in death, Master Gracey never knew Elizabeth's exact location even when he was a mortal, so he wanders the spirit world of the mansion, still searching for her, and she still waits. And the curse still lives on. To those who walk into the house, they see the final moments of Master Gracey, of Elizabeth, and Madame Leota, and the spirits reveal themselves to the mortal world, so they can tell their story. 999 people died in that house, but there will always be room for one more...
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That's one of the stories I was told, and it's my favorite. Whenever I go through the mansion, I think of that story, and it makes the ride SO much scarier for me.