Synopsis
The first 2 issues were built around the Human Torch in late 1939 and early 1940. Now it's Summer 1940, and this issue brings Namor the Sub-Mariner fully into the picture. But as usual it packs more stuff around him.
In New York Miss Portnoy contacts P.I. the Ferret (Leslie Lenrow) and his pet ferret Nosie (spelt Nosey in the original), who appeared in Marvel Mystery Comics #4-9. He has since cropped up in the MMC 70th Anniversary issue. Miss Portnoy has a complaint about her missing mother who cleaned apartments. She was murdered last issue by one of her employers Prof Hamilton, secretly Nazi spy Major Kerfoot. Hamilton is now recruited by the US army to work on the super-soldier project.
In England Lt Sawyer taps Nick Fury (and Red Hargrove off-panel) for another mission with the Sky Devils. After they extracted the defecting Abraham Erskine last issue, the Germans moved Project Nietzsche, the Nazi superhuman initiative, from Frankfurt to other sites. Sawyer, who is working for the top levels of the US government, wants Fury, Hargrove and the Sky Devils to go after these laboratories.
Back in New York Angel is scouring the docks seeking Phantom Bullet's killer. The docks where Allan Lewis worked and died last issue as hero and reporter. At Josie's Bar he learns that Bullet was investigating the smuggling in of guns and people. This bar could be the one that featured regularly in Daredevil. But they are obviously run by different Josies.
Torch is now living as policeman Jim Hammond. His police badge number 616 may be a nod to Earth-616, the main Marvel-Earth among a sea of alternates. (Presumably it's not a reference to the real Number of the Beast.) In Timely comics the Hammond alias was adopted in MMC#4 when Dr Manyac's Green Flame gang were making people suspicious of flaming beings like the Torch. This was at the suggestion of his undercover cop pal Johnson, who also helped him join the police in MMC#7 and last issue. Torch's police captain learned who his new rookie was in the same issue of MMC, but here Torch's identity is still secret.
Torch's Sgt complains that he's too hard-working, and tells him to take a day off. So he heads for Coney Island where he runs into Sub-Mariner. Namor is angry about the Nazis killing Atlanteans in #1, as test subjects for Project Nietzsche, and about the destruction rained down on his city. He has come to New York for revenge on surface dwellers. He and the Torch clash amidst the funfair rides, until Torch drives him back into the sea.
The US government can't figure out who Sub-Mariner is working for. Meanwhile they are funding Prof Zogolowski's (originally called Prof Philo Zog) plans for a remote-controlled robot named Electro. This is part of the overall plan that saw them supporting Prof Horton's android (Human Torch) in #1, and bringing Prof Erskine to work on the super-soldier project that will result in Captain America. In MMC#4-19 Zog employed a cadre of agents to sniff out trouble, and then sent Electro to sort things out. Both have since cropped up in the MMC 70th Anniversary issue. Electro was brought into the present in the Twelve limited series.
Planes presumably piloted by the Sky Devils bomb Project Nietzsche's original Frankfurt lab. Hans Bruder is forced to flee leaving his work behind. The bombing shatters a containment tube releasing object of Bruder's work, John Steele the super-strong WWI GI he was examining in stasis last issue. Despite what this issue says about Project Nietzsche being scattered, Steele and Bruder obviously weren't moved, because they are still in Frankfurt. This issue says Erskine has helped locate the sites Project Nietzsche will have been moved to, but we only see the original Frankfurt lab being bombed by the Sky Devils. Despite Sawyer's orders this issue, I don't see any involvement by Fury and Hargrove in this. And when they invade France alongside the Sky Devils in the next 2 issues, they don't seem to be looking for Project Nietzsche.