ARTICLE NOTATION: The source referenced does not mention the speculation of the White Lady and baby drowning in the lagoon.
Tucked away in the trees near Rubio Woods Forest Preserve is Chicago’s famous Bachelor’s Grove Cemetery. A small one-acre graveyard with an ominous, weedy pond, Bachelor’s Grove is probably the most haunted location in Chicago. Over 100 reports of paranormal experiences have been recorded over the years.
The White Lady of Bachelor’s Grove is the most common apparition. She appears on nights of the full moon. Her dress is white, and sometimes she carries a baby in her arms. Some have speculated that either she, or the baby, were drowned in the nearby lagoon. Other ghostly figures are sometimes seen rising from the waters of this eerie little pond. Some suspect that the Chicagoland gangs of the 1930s dumped bodies in the desolate little spot, secreting them in the murky waters of the pond. Others posit that the very location of the cemetery itself is haunted, and whatever strange power slumbers in the lagoon encourages the activities of the restless dead.
Source: Guiley, Rosemary Ellen. Atlas of the Mysterious is North America. Facts on File, New York, 1995.