The Shadow is following Larry to a club where Theda performs, and she's planning to scram with the money she got from Voggle.
Eunice shows up with a gun to confront Theda, but she's overpowered. The Shadow saves her but he has to flee from the police who think he's a murderer. Larry clears things up with the police chief and the two of them head to the lawyer's house.
Meanwhile, the Shadow drives his car over a cliff and then steals the police car chasing his when the police get out of the car to hunt for him. Pretty much everyone is ending up at the lawyer's house. It turns out the lawyer is innocent, and its Belver who killed Larry's father.
A second story then starts, “The Mystery of the Sleeping Gas.”
The story opens with some kind of plane being tested, but it goes out of control. Some guys steal something from the hanger and the Shadow tries to stop them, but another crook disables the Shadow's car.
Someone named Kalgar is leaving notes, threatening people. The pilot of the plane died in the crash, and now another program, some kind of sleeping gas, is going to be pursued. Some crooks later try to kidnap a woman but the Shadow stops them.
A lab blows up, nearly taking the Shadow and the woman with it. A crook manages to knock out the Shadow with sleeping gas and he dons the Shadow's cloak and hat, only to be killed by other crooks. They crooks take Lamont to Kalgar's castle, thinking he's just some rich guy.
The section ends with the Shadow falling through at trap door.
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