Richard Dragon started out as a two-bit hoodlum, while Red McGraw was a marine sergeant. Eventually, Dragon stole from the wrong victim, O-Sensei of Japan, and soon became the disciple to the martial arts master... thus turning his life around to the side of good. McGraw was caught in Japan-occupied China, helping the natives to liberate their land from their foreign oppressors during World War II.
In fact, Richard as the "Kung-Fu Figher" of Earth-One, alongside his fellow student and best friend Ben Turner, enlisted in the agency known as G.O.O.D. to try to bring justice the world over. Red as the Earth-Two hero known as the Dragon worked alongside several locals whom he inspired, while striking terror in those whom he opposed.
After Dragon discovered that the leader of G.O.O.D., Barney Ling, was in fact a criminal mastermind... and after Turner was brainwashed into becoming the sinister Bronze Tiger... Richard retired after one encounter with Earth-One's Batman. As for the other Dragon, McGraw seemingly disappeared after only a few adventures, perhaps finding the odds were to overwhelming and either retreated or perished during the fevered pitch of wartime.