The Shadow appears to be sea-sick once the ship is under way.
Apparently the Bund leader plans to scuttle all the ships in the merchant shipping group that he's taken over.
The Shadow frees the prisoners and Margo and starts to work to block the Bund leaders plan for the ships. The ships are supposed to be met by U-boats, but the Shadow sends a signal and gets US subs to meet the fleet. The sailors and the men the Shadow freed capture the Bund leader and the others.
The next story is “The Shadow vs. Shiwan Khan.”
Margo seems to be hypnotized by a sign, and we see that a man is also hypnotized by a sign. The guy is hypnotized into thinking that he killed someone.
Margo gets into a cab meant for Paul Brent who was hypnotized again. An oriental tries to kill Brent but the Shadow stops him.
Margo meets Shiwan Khan who (also) knows that Lamont is the Shadow. Khan sends two thugs to kill the Shadow and the police commissioner; then he plans to kill Brent and Margo.
The Shadow manages for one of the thugs to be killed and he hypnotizes the other to take him to Shiwan Khan.
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