Steve Trevor investigates a report that a school of mermaids have sunk a ship, and he ends up being captured by them. Meanwhile, Wonder Woman and the Holiday Girls are also captured when they try to rescue him, but they escape to capture a former female swimming champion who had disguised herself as King Neptune as a cover for her piracy operations.; It appears that Jay Garrick is in danger of losing his title as champion liar at the Liar's Club, when Emerson Kinnick notifies the club members that he has a winged horse on his property. Unfortunately for Kinnick, when he drives a few of the members out to see the steed, he finds the horse gone and his new stablehands (the Three Dimwits) giving lame excuses for its disappearance.; During a pre-Christmas radio program, racial and religious persecution raises its ugly head, prompting Alan Scott to use a life-and-death situation involving Doiby as an example of what America really stands for.