
1961 EDITION
The story still revolves around Emily Crandell's jewels, only this time, Nancy and chum Helen travel to the historic inn and resort owned by Emily and her fiance, Dick, which will serve as their livelihood after marriage. Lilac Inn, in full bloom, is being "haunted" by a mysterious glowing woman in a flowing gown with brunette hair. Waitresses leave the restaurant business based upon their fear. Nancy is called home to investigate a break-in of her own bedroom, and discovers by surprise someone is wearing some of her own distinctive clothing and charging luxury items on her account at local department stores. Nancy returns to the inn only to see Emily's diamonds stolen during a melodramatic blackout during her 21st birthday dinner. In the meantime, a strange shark appears in the Muskoka River and Nancy uses newly acquired scuba skills to investigate with Dick's friend John, who is on leave from the military. The girls' guest cottage gets set on fire by a time bomb, but luckily Nancy and Helen weren't in the cottage at that time. Nancy sneaks back to the inn after a day's absence and dresses in a composite of the apparition, aided by mini electric torches in her dress sleeves, and is shocked to come face to face with a ghost, this time wearing Nancy's titian blond hair and make-up style just like Nancy. Further investigation leads Nancy to believe Gay Moreau, a model sent to prison by her father for forgery and larceny, may be involved in the case. Nancy is caught spying on Gay, disguised as a waitress at the Inn, and other criminal gang members, all involved in espionage. They have a miniature submarine, and use it to escape, leaving Nancy bound aboard a sinking cabin cruiser. Gay, dressed as Nancy, is exposed, and Nancy finds out John has been investigating the stolen electronics parts; Gay couldn't resist the chance to steal diamonds and tried to discredit Nancy by running up her charge accounts on luxury items. Nancy receives presidential honors for breaking the cold war spy investigation.
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