July 3, 1938Guest star: Bill Johnstone (Phillip Ryder) A fake spiritualist named Brother Dykeman lures people to seances and uses his powers of telepathy to extract military secrets. The current target is Phillip Ryder, a War Department official with knowledge of classified military technology. Phillip has been lured to Brother Dykeman's seances because he is grieving over his deceased brother Paul—who was murdered. Phillip invites Lamont and Margo to the seance, where Lamont immediately figures out that Brother Dykeman is a fraud. The Shadow then springs into action to bring down the spy ring.

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