Air date: May 1, 1938

Guest star: Bill Johnstone

A yacht owned by an inventor named Rudolph Hoyt disappears without a trace in the South Pacific Ocean. It is only the latest of a dozen ships to disappear in that particular area, earning the area the unfortunate nickname "the graveyard of ships." The U.S. Navy has no clue what is going on, so when The Shadow expresses an interest the Navy is only too happy to give him and Margo Lane a ride on a cruiser.