The hospital was opened in 1934, a little before the second World War began. Once the Japanese bombed Pearl Harbor in the United States, Japanese Canadians were considered "enemy aliens" and were forced out of their own homes. Some of the Japanese were sent to New Denver and were forced to live in small shacks that barely sustained large families.
New Denver was a small town, and the people reacted negatively to the Japanese arriving in their town. The Japanese Canadians, some of them who lived in Canada their entire life, were suddenly treated like animals. They were called names, pushed around and sometimes denied service from certain stores.
One day, there was a riot in the middle of town, with the Japanese fighting the Canadian citizens. Many sustained injuries, some of them broke bones and in an instance of madness, one person was fatally shot.
The New Denver hospital received patients immediately, and they worked night and day. The patients eventually fully recovered and were restored to full health.
However, something odd happened as the patients left the hospital. The patients started to show odd behaviour such as talking to themselves in an empty room, refusing to eat (thus becoming weak), and repeatedly talking about their experience in the hospital, even though it was after their recovery.
Eventually, it came to a point where many previous patients were starting to hurt themselves purposely. No patient would give a reason why, only mumbling incoherent sentences.
The hospital was investigated as the rise of people hurting themselves reached a peak. Nothing seemed out of the ordinary, and the investigation ended with no results. But the patients became worse in their mental state, as they started to yell and scream in the middle of the night in their hospital beds.
Then, out of nowhere, there was an incident in the hospital. One of the patients exited his hospital room and jumped out of a window, ending his life. There was no instance of suicidal tendencies before, and he was generally considered to be a happy man.
Soon, others started to follow the pattern. People were jumping out of the hospital in large numbers and the investigative team returned with no results.
Finally, a detective named John Norwitz stayed in the hospital for one night, to see if anything was out of the usual. He slept in one of the hospital beds until the crack of dawn. Suddenly, he was not the same person that he was before.
He showed the same symptoms of the other patients, only in a much more schizophrenic matter. He mumbled and screamed at the top of his lungs for many nights. He disappeared suddenly, supposedly in the nearby forest.
One night, an incident occurred. The building caught fire for an unexplainable reason, and the building collapsed in flames. The nurses and doctors inside perished, along with some patients who were suffering from the symptoms.
Nobody knew why the building caught fire, or why it was so. All there was at the scene was a mention of a dark figure that stood outside the night of the fire. The case was dropped, and a new building was built a couple years later.