* 1st Appearance of The "PHANTOM" (Farley Fairfax) NOT yet named

Randu and Harry give Etrigan a tour of Jason Blood's apartment when Randu's ESP alerts him to something unusual. Etrigan concurs, and they discover some antique weapons missing. Randu's senses guide him to a hole in the wall, secreted behind a mannequin display, and Etrigan wastes no time leaping through, only to fall into a deep shaft. The Demon clings to the wall and descends into the sewers of Gotham City where a masked thief waits in ambush. As Etrigan draws close, the stranger swings the purloined sword, narrowly missing the Demon's neck. Etrigan wrests the blade from his attacker and the coward flees into the warren of tunnels.

Once certain he has not been followed, the mysterious Phantom of the sewers opens his hidden lair. In his sanctuary from the outside, Phantom feels safe, yet painfully lonely, his only companion is a wax likeness of his long-lost love, Galatea. In his melancholy, he plays the great organ to forget his sadness.

Etrigan has strangely given up pursuit and slumps in the sewer as he feels the transformation taking place without any incantation. Jason soon takes his place, confused as to why he's in the sewers holding Merlin's sword. It's not long before he hears voices approaching, and Harry and Randu meet him with a police officer.

Later, gathered at Jason's, Harry regales Glenda with his fiend's heroics while swinging the sword around. In his enthusiasm, Harry proposes a costume party, but Randu pulls him aside to quietly remind him how Jason's duel identity was nearly revealed at the last party they attended. However, the idea has already stuck with Glenda, and Jason reluctantly follows suit.

In the evening, as Jason peruses one of his esoteric books, the encounter with the Phantom brings attention to his own social problems. The Demon plagues his mind, and the concept of a normal life seems impossible. Concerned about being taken over by the Etrigan completely, Jason takes action to rid himself of the dark entity. Stashed in a draw, Jason takes the Philosopher's Stone in hand and produces an eldritch cold that can snuff out even the fires of Hell. His body is entirely enveloped in a magical frost and a black vapour tries to escape, but fails. Jason stiffens and collapses to ground, where he lies until he thaws.

The Phantom returns to Blood's home just as his guests begin to arrive. He sees Glenda dressed in white robes, and noticing she is the splitting image of his beloved Galatea, he recklessly storms into the room, pushing Harry aside, and dispatching Jason and Randu with seemingly unnatural strength and agility. The Phantom abducts Glenda, smashing Jason in the face with a brazier on his departure. Jason murmurs for Etrigan in vain before passing out. Jason recovers to find Randu has used his army medic training to bandage him until the ambulance arrives. With Glenda in danger, he suddenly regrets destroying the Demon.

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