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The story of the “Blue Lady” precedes even the Story Inn’s current owner. Accounts of seeing the ghost in the former Garden Room (now the Blue Room) have been written in guest books for years, noting that if the room’s blue light is turned on, a woman will appear with hypnotic blue eyes. If you smell cherry tobacco, she’s already come and gone.

U.S. Tobacco Cooperative Inc., based in Raleigh, and five subsidiaries filed this week for federal Chapter 11 Bankruptcy protection in the Eastern District of N.C.

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