What occured at the orphanage?
In November of 1930, the headmaster, Mr. Hoffman, left the orphanage without a word one day, deciding that Clara and Martha could handle things, because he was unable to continue trying to be something he wasn't.  But Clara and Martha quickly grew weary of wasting their lives caring for the crazy, mischevious children and also left.  The children were left to fend for themselves, and the Aristocracy truly controlled everything.  In December, the Princess of the Rose, Wendy, had her friend Jennifer's dog, Brown, killed out of jealousy.  This led to Jennifer finally standing up to the Aristocrats and overthrowing Wendy, who lost her rank and ran off in tears. 

Though Jennifer was made the new Princess, this was short-lived, as Wendy-dressed as Joshua-came with Stray Dog and ordered him to kill everyone.  Jen stayed behind when the others saw Wendy out in the rain and went to make fun of her, but then she started hearing screams and other frightening loud noises from outisde and went to see what was going on.  As she approached the front doors, they opened, revealing "Joshua" and Stray Dog.  Jennifer managed to escape outside, where she found everyone else murdered.  In Jennifer's dream, this harsh memory is toned down, and she only finds their abandoned clothes scattered about the front yard.  Wendy took off her disguise and apologized, giving Jennifer Gregory's gun, before being killed herself. 

At this point, Gregory seemed to regain some sanity and realization.  He took his gun from Jennifer and took his own life.  After Jennifer is led from the scene by a police officer, she locks the traumatic memories away in her mind.  Meanwhile, the murders at the orphanage are quickly pushed to an obscure section of the local newspaper after the only survivor is discovered to also be the sole survivor or an airship crash where everyone was believed to have been killed.  
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