Ahem, the 'story' is that Dentzel put the wife's bones in the horse. Period. It did light up from time to time, and the music was heard, but when you can enter bars in Sandusky at the age of 19, well, you hear rumors too, stumbling through the park finding the housing units.
Anyway, maintenence chalked it up as water from White Water Landing (where I worked), which ran onto the building causing a wee bout of electrical chaos. Also, there was a bet that no one could take a photo of the horse clearly. Again, I attest most of that to alcohol from the Louies or the Village. I took a photo and, I'll be, it came out clear as a bell.
No bones in the horse(they looked in 92). The ride is fine and dandy in Dorney. But it made a great story for the employees.