Police Comics (Volume 1) with a cover date of May, 1948.
Synopsis for "The Dictator of Dreams"
Woozy and Plas both have dreams about being tormented by a power-mad little man named Scroggs. When he finds out the chief's been subjected to the same dreams, Woozy looks the fellow up in the telephone book and pays him a call. Scroggs readily confesses to using a ray that draws people into his own dream world, where he's a powerful conqueror. He laughs off Woozy's threats to stop, however, because he can't be convicted of crimes only committed in people's dreams!
That night, Plas sneaks into Scroggs' throne room while he's distracted tormenting Woozy, humiliating him, his guards, and his legion of "ghost bats". Plas and Woozy sneak back to Scroggs' house, where, as Plastic Man suspected, they watch him enter the secret room where his dream control machine's hidden. Scroggs tunes it so it won't affect Plastic Man again, and his dream dictatorship will be safe from the hero. However, Plastic Man has actually arranged to sleep in the quarters of one of Scroggs' other victims and surprises the villain. This time Scroggs is so scared he's happy to destroy his dream machine when he's scared awake.
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Synopsis for the 2nd Story
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