Synopsis
This issue is dated Summer 1941 and will end with the 1st clash of Timely's big 3, Captain America, Human Torch and Sub-Mariner.
Namor is stalking the streets of New York in disguise, looking for revenge on the Human Torch, and on all surface dwellers. In the months since they fought Atlantis has seen internal rebellion and attack from the surface. SM's spurning of a homeless man on page 1 may be an ironic reference to when the modern Human Torch finds derelict SM in Fantastic Four #3.
Torch has stopped being a policeman since we last saw him in #3, but is accepted as a hero by the public. I can't relate the cameos of 2 Human Torch cases on page 2 to actual Timely stories. It is also difficult to say when HT stopped being a policeman. I think he was last seen in uniform Marvel Mystery Comics #14. But he often worked for the police chief afterwards.
He returns to the remains of Prof Horton's lab to try to trace his 'father' Horton. He finds a picture of Horton with assistant Fred Raymond, and tracks him down in Staten Island instead. Fred's wife Nora is sick, and their son Toro bursts into flame when Torch arrives. Even though the flames don't hurt Toro, Torch leaves.
In Germany John Steele, escapee from Nazi superhuman Project Nietzsche, has tracked Red Skull to another of the Project's labs. Skull sends Hans Bruder's assistant Eric Schmitt to a concentration camp because he is Jewish. Bruder is still trying to perfect Erskine's supersoldier serum from the incomplete formula stolen last issue. Skull brings in a renegade Atlantean Meranno, who he claims led the Germans to find Atlanteans.
Torch returns to New York and Namor attacks him. But Sub-Mariner has also caused a tidal wave to engulf the city. Angel aids the drowning populace, alongside other heroes we've come across in earlier issues (Thin Man, Electro, Hurricane, Fiery Mask and Mr E) and some we haven't (Phantom Reporter and Patriot). Namor defeats Torch, but Captain America arrives and knocks him out with his round shield.
Phantom Reporter was another 1-shot character (Daring Mystery Comics #3), who was resurrected in The Twelve limited series. But he has also been given an origin in Daring Mystery Comics 70th Anniversary.
Patriot on the other hand was one of the longest-running of Timely's heroes, mainly in MMC. He has also been retroactively made 1 of the heroes who replaced CA after his 'death' in 1945, as recently described in detail in the CA: Patriot limited series. Adding the relevant Captain America Comics stories to Patriot's own adventures may make him challenge Angel for the number 4 spot in the Timely pantheon (after CA, HT and SM).