"while another died after being 'Led into a horse pond by a will of the whisp"
I read that to mean "falling down drunk and drowned".
More than you might want to know about 'Will of the Whist'
Anonymous (1834), Ignis Fatuus. In "The Times" newspaper, 16th October 1834, p.4, column B. Reprinted from the Edinburgh Evening Courant.
Ignis Fatuus.—A fine specimen of this phenomenon was witnessed on the "Loch of Barbush," near Dunblane, on Monday evening. This loch, comprising upwards of seven acres, was used about 10 years ago as a curling pond by the Dunblane Club; but subsequently, from the excessive growth of a species of lichen and furze from its mossy bottom, this water disappeared, and the whole surface now presents the appearance of a brown dusky morass. Here, during an hour and a half, apparently dancing along the whole surface of the marsh, "Jack wi' the lantern," or rather "Will o' the Whisp," went through all the varieties of his nocturnal gambols, to the amusement of some and the wonder and terror of others, who were passing at the time. Two, three, four, and even six "glints" of blue light were frequently visible at the same instant, reeling and passing each other in the most fantastic manner imaginable. It was remarked that this phenomenon became extinct upon the fall of a heavy shower of rain, accompanied with a high wind; and that during the whole time of the phosphoric ignition the air was perfectly calm and moist.—Edinburgh Evening Courant.
Your interpretation sounds more like it