Secret Service Major Steel (Joseph W. Girard), is one of the few men in America aware of the fact that Captain Albright (Dave O'Brien) is also Captain Midnight, daring masked aviator dedicated to fighting gangsters and enemies of America. When murderous bombing attacks are made on West Coast munitions plants, Steel sends for Albright and asks him to track down the mysterious Ivan Shark (James Craven), the foreign agent mastermind behind the attacks. Shark has learned about an ingenious range finder, invented by John Edwards (Bryant Washburn, and makes plans to obtain a model of the invention. Edwards instructs his daughter, Joyce (Dorothy Short), to bring the model to Albright for safekeeping in his mountain laboratory. Shark takes Edwards prisoner by Albright assures Joyce that her father will be saved and an end put to Shark's reign of terror. Dressing as Captain Midnight and enlisting the aid of his friends, Chuck (Sam Edwards) and Ichabod Mudd (Guy Wilkerson), Captain Midnight delivers on his promises fourteen chapters later.

The Canadians have discovered a valuable substance called Compound X, which can cure infantile paralysis. When a country at war with Canada learns that Compound X also contains magnetic properties that could aid them in their warfare against the British, they send agents to infiltrate Canada and steal a large quantity of the substance. It's up to Sgt. King (Allan Lane) and his Mounties to track down the agents and put an end to their scheme.