Well, it's the usual sort of pirate tale. A long, long time ago, a king and a queen lived in the Palace here, and the City was their kingdom. And then around about this time of year, Peg-Fist Jack and his crew sailed up in their ship, the Wandering Hangman, and came to pillage and plunder and all that. Well, when he heard word of all this, the king's Captain of the Guard decided to set a trap for Peg-Fist Jack, with the queen's most priceless jewels as the bait. When the pirates came to steal it, he ambushed them with the rest of the guard, and there was a great fight. Peg-Fist Jack was badly wounded, but the pirates managed to get away with the treasure.

Of course, to get back to their ship, they had to cross the whole City, and that was with the Captain of the Guard's men looking for them. So they had to go in the dead of night, bit by bit, over the course of a few days. And they did make it back and escaped, but Peg-Fist Jack died of his wounds along the way, and they buried him with his treasure somewhere in the City, which is why he still haunts it every Halloween. And then every year, the crew comes back as ghosts to try to reunite with their scurvy captain and recover their treasure once and for all.