When I found this website, I immediately saw a cover image I had catalogued sometime ago.
The site, called Poulpe Pulps, is a collection of octopus-themed pulps! How wacky is that?
Well, actually, it's not too crazy thanks to H.P. Lovecraft, the man who brought us the Cthulhu Mythos in all its cephalopod-headed glory. (I swear, sometime I'll do an entry on Lovecraft)
Anway, The site also includes some comic book covers, so it's worth a peek!
One Web site describes the story above as "Another lost-race tale, this one has two versions, one with a happy ending, one without. Merritt was one of the pioneers of the Sci-Fi and fantasy field. His books are now out of print, but they were popular enough that you should be able to find them at a good library. "
If you're interested in reading "The Dwellers in the Mirage," then click here, where you can download it (for free, I think).