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The Freedom Fighters forcibly restrain the Black Condor. The emergence of telepathic powers have driven the Black Condor berserk. Uncle Sam finally calms the Black Condor. Use of his telepathy has given the Black Condor a vague sense of the Silver Ghost's presence, at Santaland. An elf, in Santa Claus' employ, has plans to tilt the Earth on it's axis, moving the North Pole over half of the continental United States of America. The Freedom Fighters investigate Santaland. The Ray openly flirts with the Phantom Lady, much to the dismay of the Human Bomb. Toy soldiers, armed with real ammunition, attack the Freedom Fighters. The Ray destroys the toy soldiers. Teddy Bears, and dolls, attack the Freedom Fighters.

The Human Bomb, and Uncle Sam, wrestle with the Teddy Bears. The remaining Freedom Fighters battle the dolls. News of the Freedom Fighters assault on Santaland spreads quickly. WGNY news reporter, Martha Roberts, wants to spin the event in the Freedom Fighters' favor, but is shut down by the station manager. The Doll Man removes the Human Bomb's gauntlet, allowing the Human Bomb to use his explosive power to destroy a Teddy Bear. The Ray destroys the dolls. Uncle Sam, finally, defeats his Teddy Bear opponent. The Black Condor uses his telepathic powers to discern the identity of their attacker. Use of his telepathic power drives the Black Condor mad. The elf attacks the Freedom Fighters with super-hero action figures.

The Doll Man is bound by action figures of the Batman, Robin, the Boy Wonder, and Wonder Woman. An action figure replica of Superman damages the Human Bomb's containment suit. The Human Bomb destroys the action figure. The Ray is attacked by an action figure replica of Supergirl, as well as the Black Condor. Uncle Sam tackles the Black Condor. Doll Man uses his telekinetic power to destroy the Supergirl action figure. The Ray flash freezes the elf. As soon as the police arrive, the Freedom Fighters flee. Roberts goes on the air, providing a more balanced view of the Freedom Fighters' actions, much to District Attorney David Pearson's chagrin. The Crusaders offer to bring in the Freedom Fighters.

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