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This case was investigated by the Society of Psychical  Research (SPR) by Frank Podmore in 1885 and published in the Journal for the SPR in September 1886. It was one of the cases that was being investigated for the book to be published by the SPR 'Phantasms of the Living'. The story wasn't considered strong enough for inclusion.
The SPR investigated and reported what they found as told by first hand witnesses, The story was embellished by Maude Ffoulks when it was included in the book True Ghost Stories in 1936. Since then the story has been further embellished by other books reporting on local hauntings. I try to give the original story here as found in the archives of the SPR.