An explosion takes place at the Anderson Steel Mills. Captain Action blames a rabble rousing hate monger named Matthew Blackwell. In Central Park, Carl Arno and his friend Johnny Johnson stage a demonstration against Matthew Blackwell. Jimmy then goes to see his father Eugene Johnson, publisher of Tempo Magazine. Unbeknownst to them, Eugene Johnson is Matthew Blackwell. Driven mad by the death of his wife Adrienne (Johnny's mother) Eugene has taken on this Mr. Hyde like persona, Matthew Blackwell. Captain Action attempts to foil Blackwell's plans to take over America, but in the end it is Johnny's Johnson's sacrifice of his own life that defeats Blackwell. A broken Matthew Blackwell, or Eugene Johnson if you wish, is taken to a mental hospital

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