The Royal Canadian Legion branch in Campbellford, Ont., has been closed temporarily as officials investigate why two men attended a Halloween party there dressed as a member of the Ku Klux Klan and his black prisoner.

One of the two men, who are not from Campbellford, arrived at the party Saturday night wearing white robes and a cone-shaped headpiece, with a Confederate flag draped across his shoulders.

He was leading the other man -- who had full blackface makeup and was wearing a red and blue plaid shirt -- around by a rope.

Legion officials have shut down Branch 103 pending the investigation.

"We are very sorry that this happened," Dave Gordon of the Royal Canadian Legion told CTV News. "We apologize to the public."

Earlier Wednesday, police said they do not intend to lay charges in connection with the incident.

Const. Chris Dewsbury of the Northumberland OPP said police began to look into the situation after receiving a complaint following the party.

He said an officer is still investigating but police don't expect to press charges.

"At the present time it would appear this was simply a case of poor judgment into the selection of a Halloween costume and there is no evidence to suggest a criminal offence has taken place," Dewsbury told CTV.ca.

He said the people wearing the costume did not intend it as a racist gesture and added that wearing the costume does not constitute a hate crime. The pair won a prize for the costume.

Corey Crowley, the son of the man who wore the white robes, said his father is "not a racist, obviously not.

"It was just a costume for Halloween," Crowley told CTV News. "People dress up like axe murderers every day. So I didn't think it was that big of a deal."

Mayor Hector MacMillan called the incident "unfortunate" and said "it should not have happened."

Joy Herrington, president of the Campbellford Legion, issued an apology on Tuesday for the incident.

"As president of Branch 103 Campbellford, of the Royal Canadian Legion, I humbly apologize to all those offended by the events that took place at our Halloween Party," she said in a statement.

"The events in no way reflect the views of the Royal Canadian Legion, or its members. Those responsible have been spoken to."

Mark Andrade, who owns a restaurant in Campbellford, said he was disgusted by the costume and upset that the Legion allowed it -- and even awarded a prize to the men.

But Andrade, who is black, told CTV News the incident is not indicative of the community.

"Everybody in this community has expressed nothing but outrage on the same level, if not more so, than I have myself."

With a report from CTV's John Vennavally-Rao