The first appearance of the Canterville Ghost occurs after Washington Otis declares that special stain remover will get rid of the blood stain that has been there since the 1500s. The stain is scrubbed out, but it reappears just as it always has. This is the first time that the Otis family admits that there might be something to the rumors of the house being haunted.
A few nights later, Mr. Otis is woken up by the ghost's rattling chains. Mr. Otis goes out to see what's going on and meets the ghost for the first time.
"There, right in front of him, stood the ghost - his eyes were as red as burning coals; long grey hair fell over his shoulders and from his wrists and ankles hung heavy chains."
That sounds terrifying. But the best part of the encounter is Mr. Otis's reply.
'My dear Sir,' said Mr Otis, 'you must oil those chains. It's impossible to sleep with such a noise going on outside the bedrooms. I have therefore brought you this bottle of lubricator, and I will be happy to supply you with more if you require it.' With these words Mr Otis laid the bottle down, closed his door and went back to bed.
That's awesome! He tells the ghost to put on some lubricant and be quiet. The ghost is obviously shocked and a little upset at his failure to scare. Then the Otis twins come out and throw a pillow at him.
The ghost didn't appear after that for about a week. When he did appear, it was on a Sunday night. The ghost knocked over a suit of armor, which brought out the twins. They promptly started shooting him with pea-shooters. The Canterville Ghost "ghosted" up the stairs and let out an evil growl/laugh thing. Mrs. Canterville then opened up her door, told the ghost that he sounded sick, and offered him a bottle of medicine.