Henry Morrel, the owner of the Daily Bugle's nephew, inherits a castle and gets Micky Moran to help him address the possibility of turning it into a youth hostel. Crazy old Silas Varnot is living in the castle, making it appear haunted, and killing anyone who tries to come there. Marvelman nabs Varnot just as he blows up the castle. The insurance money and the reward for Varnot is used to found a youth club.; Billionaire Hyram J. Reinhart dreams of utopia away from the crime of city life. So, he enlists the aid of scientist Howard Lawson and, with Marvelman's help, they build Sky City, an orbiting metropolis. Sky City residents elect ex-con Al Wilson as their governor but he turns the utopia into a totalitarian regime. Marvelman arrives, punches out Wilson, and returns control to Reinhart and Lawson.