A SHIELD scientist examines the remains of the Baron Strucker robot fought by Captain America (last issue), astonishing Nick Fury with revelations of its sophistication. A movement in the eye alerts Cap that the thing is still spying on them and likely booby trapped. Cap is barely able to push the scientist out of the way before the bomb is remotely detonated. From the blazing wreckage emerges a data module which flies back to its creator—Machinesmith—before it can be stopped. Fury announces that SHIELD will be conducting further investigation and Cap will be kept informed as needed….
Machinesmith receives the data module and moves on to his next project: he has gotten hold of the comatose Dragon Man and is planning to send it against Captain America….
Cap, in his civilian identity as Steve Rogers, commercial artist, makes the rounds of the advertising agencies looking for freelance work but comes up empty. Heading back to his apartment house, he is met by his pal Josh Cooper who invites him to dinner with a new tenant, Mike Farrel’s old pal Bernie Rosenthal, who startles Steve by turning out to be an attractive young woman….
At his lab, Machinesmith revives the dormant Dragon Man who turns out to be quite vicious. A programmed floating sphere, Gadget-12, emits a soothing ultrasonic wave to calm the creature. The villain then orders the gadget to lead the huge monster to Captain America….
At the party, the radio reports sightings of a huge monster at various points downtown; Steve notes that he had visited those same buildings in that order earlier that day. He glances out the window and sees the Dragon Man heading toward them. Hastily excusing himself he heads to his apartment, dons his Captain America costume and meets Dragon Man on the roof. He sees the huge monster occupied with a floating sphere similar to the one from the Strucker robot and realizes he is being targeted. Gadget-12 switches from a soothing wave to an irritating one, sending the dragon into a rage directed at Cap. In the ensuing battle Dragon Man crashes through a roof into a couple’s apartment. Trying to distract the creature, Cap hurls his shield at his foe but Dragon Man catches it and hurls it straight upward—5000 feet. Cap tries to lead the monster away from the crowded building but Dragon Man turns out to be faster than he realizes and Cap is caught in the creature’s deadly vice-like grip….