A blind, mute boy is the sole "witness" of a gangland execution. Once discovered, the gangsters pursue the boy, who finds protection behind the tattered cloak of the Ragman. The trio of hoods are beaten into unconsciousness by Ragman. By the time they recover, the Ragman and the boy are long gone. The boy pantomimes the series of events that led up to his pursuit from the gangsters. Ragman takes the boy, and his cat, to the Rags 'N' Tatters pawn shop, which he operates in his civilian identity, Rory Regan. While the boy sleeps, Regan's mind races back to the past. His tour of duty in Viet Nam. His return home to the Rags 'N' Tatters shop. His reunion with his father. The horrible night gangsters murdered his father, and three of his father's friends, which culminated in his decision to become the Ragman. At that same moment, the hoods who chased the boy are reporting to Mr. Big. With his operation potentially at risk from the "witness", Mr. Big vows to scour the slums until the boy is found. Bette Berg arrives at the Rags 'N' Tatters shop to remind Regan of their date, to visit Chinatown, the following day. After she departs, Regan sees the beams of several flashlights moving through his junkyard. Regan investigates as Ragman. Once more, Ragman beats the hoods into unconsciousness.
Regan serves the boy breakfast, before opening Rags 'N' Tatters fro business. The usual parade of down-on-their-luck patrons shuffle through, parting with their dearest belongings for the few, paltry dollars Regan can spare in return. After close of business, Regan, Berg and the boy are out on the street corner when they are approached by a social worker who recognizes the boy, calling him "Teddy". Berg asks if it would be alright if Teddy accompany her, and Regan, to Chinatown, to take in the festival. Anticipating trouble, Regan excuses himself, stating that he'll catch up with Berg and Teddy at the festival. Spotting Teddy in the crowd, Mr. Big and his men close in on the boy. Teddy recognizes the incessant knuckle cracking and the pomade scent of one of the murderers, and realizes they've found him. In a panic, he clutches tightly to Berg and begins wildly pointing into the crowd. Suddenly, the Ragman appears, and again beats the hoods into unconsciousness. Mr. Big races forward in his motorized wheelchair, guns blazing. Teddy's cat pounces on Mr. Big, clawing at him. Mr. Big loses control of his wheelchair, and is sent hurtling through a plate glass window. Police officers arrive on the scene to round up the gangsters, while the Ragman watches from the shadows.
Note: This issue contains the Hostess Superhero Ad, Batman "The Muse."