The first time I saw it in some old US silent-movie comedy as I was kid. I was scared just as I've seen it. You can imagine that those guys managed to make gags with that.

I can't find that movie (maybe somebody knows) (Edit: German Wikipedia mentions Charlie Chaplin?) the only thing I can find is something completely different I've also remembered:

https://www.youtube.com/watch?v=bXBmUOjgWJE&t=8m20s

Back to the chain elevator, as a grown-up I rode in it, and it felt not scary, more like "safe enough" and even interesting.

But it surely isn't made for everybody.