When the ghost became bold enough to start throwing loaves of bread off the shelves in the pantry and continuously tromping up and down the wooden stairs between the second and third floors, Rose had to admit the building had a serious ghost problem. Her second and final visit to the third-floor storage area resulted in Rose’s only visual experience with the ghost. After that experience, Rose refused to set foot on the third floor.

What did she see? Looking down the long barren hallway lined with heavy wooden doors, Rose saw an apparition of a beautiful woman all in blue, floating just above the floor. Rose described the ghost: "It didn’t walk- it floated. It wasn’t like seeing another human being-I could see right through it. I knew it was an image. The figure was in baby blue-it was absolutely gorgeous. There is no way to describe it. It looked like mounds and mounds of handkerchief material; it literally floated just off the floor, moving down the hall. It was dressed in blue: it looked like a pile of blue handkerchiefs."

Although Rose described the apparition as beautiful, she said that it had no discernible face or features. Her husband experienced the same type of apparition on the third floor, too. Several vendors in the building felt that they had encountered the blue handkerchief ghost as well. The owner of a jewelry shop on the second floor claimed that she had seen the ghost-reflected in a mirror in her shop. What she saw was pale, blue, and floating. She also reported mysterious prankish incidents in her shop, such as jewelry flung off walls into the center of the room and stick-on price cards moved around on pictures. Once, in a shop room next door to her store, she and two other women experienced a sudden episode of dizziness and a "compression" feeling upon entering the room, and the room began whirling about her. All three women claimed to have shared the same frightening experience simultaneously. They thought it was Julie.