Ambitious German imperial hussars veteran baron Geert von Instetten takes office as coastal district administrator, hoping to e promoted to the colonies. His childhood love, Luise, married local estate owner von Briest and now arranges for their daughter, Effie, to wed the baron, rather then her beloved cousin Dagobert. In his creepy home, built and filled with exotica by an ocean captain whose Chinese servant is said to haunt it, Effie believes to meet ghosts. She starts an affair with married, swagger major von Crampas.