Taken from an old edition of the Lotus Lodge:
British Pay Ship Sighted on Bay
There is a legend that one evening during the War of 1812, a British Pay Ship, just at dusk, was chased into the bay by an American Man-O-War ship. As it was very nearly dark and the American was not familiar with the channel, it remained at the entrance on guard; and it was impossible for any vessel to have come out without being seen.
Nevertheless, at daybreak the British was not in the bay. It has become a legend that the ship was scuttled, the treasure buried under an oak tree on one of the islands, and the crew made its escape overland.
For many years searches were made for the gold, and there were many excavations made. If anyone ever found it, he said not a word.
On bright moonlit nights, the flickering light of a ship’s lantern can be seen again and again crossing the bay.
Many parties have gone out in search to see where the source of the light appears. They have never been able to approach this vessel, as the light mysteriously disappears before their very eyes.
Storytellers claim that the light comes from the ghost of the British ship as it sails around the bay looking for a way past the American Man-O-War.