The Case of the Treasonous Dolls

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The facts of the case are odd.

Five letters were written in early 1942 and mailed by seemingly different people in different U.S. locations to the same person at a Buenos Aires, Argentina, address.

Velvaleedickinsonfeb221942letter

In early 1942, five letters were written and mailed by seemingly different people in different U.S. locations to the same person at an address in Buenos Aires, Argentina. Even more strangely, all of them bounced “Return to Sender”—and the “senders” on the return address (women in Oregon, Ohio, Colorado, and Washington state) knew nothing about the letters and had not sent them.

The FBI learned about all this when wartime censors intercepted one letter postmarked in Portland, Oregon, puzzled over its strange contents, and referred it to cryptographers at the FBI Laboratory. These experts concluded that the three “Old English dolls” left at “a wonderful doll hospital” for repairs might well mean three warships being repaired at a west coast naval shipyard; that “fish nets” meant submarine nets; and that “balloons” referred to defense installations.

One of the letters, supposedly sent by a Mary Wallace of Springfield, Ohio, did indicate her home address – 1808 E High Street – but had been postmarked in New York, a place she had never been. The letter, primarily discussing dolls, contained references to a “Mr. Shaw, who had been ill but would be back to work soon.” The letter corresponded to information that the destroyer USS Shaw, which had been damaged in the Pearl Harbor attack, completed repairs on the West Coast and was soon to rejoin the Pacific Fleet.

Another letter, given to the FBI in August of that year and said to have been written by a woman in Colorado Springs, Colorado, was postmarked from Oakland, California. That letter, written in February, made reference to seven small dolls which the writer stated would be altered to look as though they were “seven real Chinese dolls”, designed to mimic a family of parents, grandparents and three children. The FBI determined that the letter was written shortly after a convoy of ships had arrived at the Mare Island Naval Shipyard in Vallejo. The letter contained certain details about the ships, that if made public, would have been detrimental to the war effort.

 

The FBI immediately opened an investigation.

It was May 20, 1942, when a woman in Seattle turned over the crucial second letter. It said, “The wife of an important business associate gave her an old German bisque Doll dressed in a Hulu Grass skirt…I broke this awful doll…I walked all over Seattle to get someone to repair it….”

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In short order, the FBI turned up the other letters. It determined that all five were using “doll code” to describe vital information about U.S. naval matters. All had forged signatures that had been made from authentic original signatures. All had typing characteristics that showed they were typed by the same person on different typewriters. How to put these clues together?

It was the woman in Colorado who provided the big break. She, like the other purported letter senders, was a doll collector, and she believed that a Madison Avenue doll shop owner, Mrs. Velvalee Dickinson, was responsible. She said Ms. Dickinson was angry with her because she’d been late paying for some dolls she’d ordered. That name was a match: the other women were also her customers.

Velvaleedickinson

Who was Velvalee Malvena Dickinson? Basically, a mystery. She was born in California and lived there until she moved with her husband to New York City in 1937. She opened a doll shop on Madison Avenue that same year, catering to wealthy doll collectors and hobbyists, but she struggled to keep it afloat. It also turned out that she had a long and close association with the Japanese diplomatic mission in the U.S.—and she had $13,000 in her safe deposit box traceable to Japanese sources.

Following her guilty plea on July 28, 1944, Ms. Dickinson detailed how she’d gathered intelligence at U.S. shipyards and how she’d used the code provided by Japanese Naval Attaché Ichiro Yokoyama to craft the letters. What we’ll never know is why the letters had been, thankfully, incorrectly addressed.

Yokoyama_Ichiro

 

FBI Laboratory examination of all five letters confirmed that the signatures on the letters were not genuine, but were forgeries which the experts decided were prepared from original signatures in the possession of the forger. The examination also showed that the typewriter used in the preparation of the letters was different in each case, but that the typing characteristics indicated that the letters were prepared by the same person.

The conclusion reached by the FBI cryptographers was that an open code was used in the letters, which attempted to convey information on the U.S. Armed Forces, particularly the ships of the U.S. Navy, their location, condition, and repair, with special emphasis on the damage of such vessels at Pearl Harbo

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On February 11, 1944, Velvalee Malvena Dickinson was indicted by a Federal Grand Jury in the U.S. District Court for the Southern District of New York for violation of the censorship statutes, conviction of which could result in a maximum penalty of ten years in prison and a $10,000 fine.

She pleaded not guilty and was held in lieu of $25,000 bail. A continuing investigation by the FBI resulted in a second indictment on May 5, this time on charges of violating espionage statutes, the Trading with the Enemy Act, tradingwithenemy00natirichand the censorship statutes, conviction of which carried the death penalty. She pleaded not guilty and was released on the same bail.On July 28, 1944, a plea bargain was made between the U.S. Attorney’s Office and Dickinson in which the espionage and Trade Act indictments were dismissed and she pleaded guilty to the censorship violation and agreed to furnish information in her possession concerning Japanese intelligence activities.

After pleading guilty, she admitted that she had typed the five forged letters addressed to Argentina, using correspondence with her customers to forge their signatures.

She claimed the information compiled in her letters was from asking innocent and unsuspecting citizens in Seattle and San Francisco near the location of the Navy yards there, as well as some details from personal observation. She stated that the letters transmitted information about ships damaged at Pearl Harbor and that the names of the dolls corresponded to a list that explained the type of ships involved. She furthermore stated that the code to be used in the letters, instructions for use of the code, and $25,000 in $100 bills had been passed to her husband by Yokoyama around November 26, 1941, in her doll store at 718 Madison Avenue for the purpose of supplying information to the Japanese. She repeated her claims that the money had been hidden in her husband’s bed until his death.

However, an investigation by the FBI refuted those claims, disclosing that while Dickinson had been a friend of Yokoyama, her husband had never met him. It was also learned that a physical examination done on him at the time indicated that his mental faculties were impaired at the time of the supposed payment. Both a nurse and a maid employed by the Dickinsons at the time emphatically stated that no money had ever been concealed there.

Velvalee Dickinson appeared in court for sentencing on August 14, 1944. Upon sentencing, the court commented:

It is hard to believe that some people do not realize that our country is engaged in a life and death struggle. Any help given to the enemy means the death of American boys who are fighting for our national security. You, as a natural-born citizen, having a University education, and selling out to the Japanese, were certainly engaged in espionage. I think that you have been given every consideration by the Government. The indictment to which you have pleaded guilty is a serious matter. It borders close to treason. I, therefore, sentence you to the maximum penalty provided by the law, which is ten years and $10,000 fine.

Still maintaining her innocence and claiming that her ,at that stage deceased. husband had been the Japanese spy, Dickinson was imprisoned at the Federal Correctional Institution for Women (now the Alderson Federal Prison Camp) in Alderson, West Virginia. She was released with conditions on April 23, 1951.

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