Jack the Ripper is being pursued by a mob in the White Chapel area of London. He ducks into an apartment, where his wife is with their baby daughter. She tells him that they're after "Jack the Ripper" and when she sees his blood covered hands realizes it's him. He stabs her in front of the baby, which leaves some permanent scars on the child.
Years later, she is a young woman named Anna working for a "psychic", who also wants her to service her male clients. She ends up killing her adoptive mother by running her through with a fireplace poker right before the horny guy. However, Dr. John Pritchard was nearby (he was trying to debunk the psychic) and comes in afterwards. Anna is taken to jail but he gets her out, thinking he'll help her overcome her psychosis. But she keeps on killing people. That last scene is of him, fatally wounded, trying to stop her from killing his daughter-in-law, who is blind.There's a theme throughout the movie of "is it in her mind, like schizophrenia" or is she possessed by the evil spirit of her father.
All in all a great sequel to the Jack The Ripper story.