From the July, 1926 pages of True Detective Mysteries Magazine comes the shadowy figure of the Red Specter. The gangster and moonshiner name Gochnauer lived in a large and imposing mansion that he built. After the death of his wife, he is found to have hung himself in a closet. The house sitting idly for a year, it is purchased by Lucius Draper Buddington. The new owner outbid Red Lubahn, Gochauer's thought-to-be-friend in life.
Margery Mallette, on trial for operating a den of iniquity, encounters Lubahn on the street. This enrages her, likely out of jealousy. She calls the newspaper from the jail, promising to turn evidence against Lubahn. The newspaper prints the story for the morning edition. While being escorted to the courthouse, her police escorts are overcome and Mallette is kidnapped. This is now a police matter.
A woman calls the police to inform them that Mallette was spirited away to Gochauer's former mansion. The reporter from the newspaper accompanies the police. When they arrive, they find an apologetic Buddington denying his culpability. After a quick investigation, the intrepid crimebusters find Margery Mallette hung in an expert fashion. During the investigation, they hear a man scream. Rushing to the area of the mansion, they find that Buddington joins in the mystery by disappearing.
After the police leave for the night, two detectives and the reporter remain surreptitiously. They wait throughout the night until a terrified young woman, scantily clothed, runs into the room. She is quickly pursued by the Red Phantom, who appears to be a bat-like, man-shaped creature. Big Jim Devery, a wise detective, fires at the beast. When the lights are turned on, Devery interviews Red Lubahn who is wearing the bat costume. With his dying breaths, Red Lubahn bemoaned the fact that he could not use the vast moonshining equipment in the basement of the house after he lost the bid for it to Buddington. Gochauer built hidden passageways into the house, one of which led to the discovery of Buddington tied, fit-to-be-tied, yet otherwise fine. Lubahn's girlfriend later explained the strange night-clothes worn by Lubahn, stating that he wore them so women would be too terrified to run away from him. Thus ends the career of the Red Specter of Hollow Hill.