A City of Fear was built in the 1700s 1st being normal place to live, However a Family named Wells started to pass ways to run the city, using fear and rumor to control the people to believe in small groups that their is Unknown force, a God under the city that needs sacrifices mainly children. A cult that worshipped a dark and ancient figure.

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1st laughed at till, The Earthquake. Scared them, So much cutting the throat of his youngest. Things within the City became clam like magic, which turned non believers. They needed fresh innocence. SO they keep the privileged to be saved as the church, a slaughterhouse, an asylum, and a school. Was always run and shown as the City's lifeblood only killing those in the middle class and poor. 

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They kept residents of the city in the dark, the sacrifices is generational. 

In the year 1948,  The cult is still active, and they are still sacrificing children. The city is still shrouded in mystery, and the residents are numb to it. However higher taxes keeps the people unable to leave. So the officials create hysterias and keeps people mad at each other not seeing the truth. 

And if any adult questions anything they are sent to the Asylum to Rot.
However the body of the 1st sacrifice lays under the school.