On Monday, July 11, 1932, Nemesis was stopped by the Freedom Phalanx during a massive street battle in Steel Canyon. After Statesman, Maiden Justice, The Dark Watcher, Elementar, and team Vambrace uncovered a web of influence through a company named “Southern United”, Nemesis unleashed hundreds of steam-powered killing machines in an all-out attack. People witnessed the Prussian Prince's metal-clad troops flooding the streets of Steel Canyon in a show of force not seen since the waning years of the Civil War.
Rallying the authorities, Statesman battled back Nemesis' forces. Eventually, the hero confronted Nemesis himself and forced the villain to retreat. As the first super-powered human to receive massive national exposure, Statesman became the leading symbol of the potential good that super-humans could contribute to society. Police forces became more cooperative towards masked crime-fighters, which in turn led many super beings to use their powers more openly. This growing public support eventually culminated in the passage of the 1936 Citizen Crime Fighting Act.