Month: March 2021

John Oesterreich, Fred’s brother, began receiving death threats over the phone and through letters telling him to stay away from Dolly’s trial and to not testify.  The District Attorney immediately began an investigation.

The state is putting their case together and gathering witnesses.  One of the witnesses is Alvie Judkins of Milwaukee.  Alvie was Dolly’s paid companion hired by Fred when he was out of town on business.  Her testimony was two-fold; 1.  She will testify that as soon as Fred left Dolly told Alvie to leave, and 2.  There were a lot of domestic arguments. 

Alvie was all set to go when she began receiving anonymous letters threatening her life and the life of her husband if she went to Los Angeles to testify.  She agreed to go to Los Angeles and testify if Los Angeles would pay for the trip for her, her husband, and her attorney.  They agreed so the Judkins headed out.

Otto Sanhuber was also scheduled to testify, subpoenaed by the prosecution.

Monday, August 4, 1930, Dolly’s trial begins.  Judge Carlos Hardy will preside as he did in Otto’s trial.  James P. Costello, deputy district attorney was prosecutor and Jerry Giesler was the defense attorney.

August 4, 1930 was also the day Dolly was supposed to go to court for the case that Herman Shapiro filed against her.  The civil case was postponed until November.

The prosecutions witnesses except for Alvie Judkins were the same as in Otto’s trial.  They were Cora Norton, the next-door neighbor; Roy Klumb that threw the gun in the tar pits, the undertaker, the police investigators from 1922.

Dolly barrels into the courtroom with a huge smile, dressed in black with a black hat that partially covered her face.  The trial began with a bitter argument between the prosecution and the defense in jury selection.  The defense was willing to forego a jury trial and the prosecution insisted on a jury trial.  Judge Hardy ruled in favor of the prosecution.

Then the defense wanted to ask the prospective jurors whether the verdict from Otto’s trial would affect their decision in this trial since a manslaughter verdict would set Dolly free, and the prosecution wanted no reference to the Sanhuber trial given to the prospective jurors.  Judge Hardy agreed with Giesler, the defense attorney. 

Giesler also asked the prospective jurors if their opinion would be changed if they knew that Dolly had “sinned morally”.  Costello asked if Dolly’s promiscuousness could be considered as leading to the motive of the murder.  He followed up by asking about capital punishment.

The jury picking took three days, and the jury took their seats at the opening of court on Thursday, August 7, 1930.  Several prospects were dismissed because of their disapproval of Capital Punishment.  And get this!  The jury consisted of six men and six WOMEN!  Yes, there were women on this jury!  What a difference 1930 is from 1922!

Alvie was not coming to testify.  At the last minute, the city decided it was too expensive to bring three people from Milwaukee to Los Angeles.

Once again Herman Shapiro is MIA.  Costello find that he is in New York.  Costello called both Herman’s attorney and his sister.  Finally, his sister admitted that Herman was in NYC.  Costello told the sister to let him know that he would get a warrant issued and that he would also take it up with the California Bar and get him disbarred. 

Another disappointment for the prosecution was that private detective Phillip Stover fell and broke his leg and could not travel to Los Angeles.  Stover was one of the private detectives that Fred had hired to follow Dolly and Otto around.

Deputy district attorney Russel gave the opening remarks, basically recapping the shooting and locking Dolly in the closet. 

Next the Cora and Flora show continued with the previous next-door neighbors repeating their catty remarks about Dolly for the third time.  This time they added that Dolly was intoxicated, something new for a new trial!

Testimony follows with the Medical Examiner testifying to Fred being killed by three bullets shot downward.

Shapiro it was found was now in Saint Louis.  He demanded that the city of Los Angeles pay his air fare, or he would not return to Los Angeles, this did not go over well with Costello who sent him heated telegrams.  Shapiro responded with his own telegram – sent collect!

“Burton Fitts, District Attorney:  Understand Costello desires my testimony in the Oesterreich case.  Am here on business that will take another month to conclude.  Cannot understand your need of me because relationship of attorney and client that existed between defendant and myself would bar my testimony.  This is apparent because my testimony was inadmissible in the Sanhuber case.  In addition, I have your promise.  Therefore, my absence should cause the state no embarrassment.  However, if matters develop requiring my presence wire me funds covering round trip aeroplane fare from Saint Louis and I will appear upon eighteen hours’ notice.”

Costello had Judge Hardy issue a bench warrant for Herman the next day.

Police that were first on the scene testified with nothing new to add, same for the medical examiner, and the county surveyor.

Roy Klumb also testified adding nothing new to his testimony.  He did repeat his testimony from Otto’s trial that Dolly had once told him that she had a lover that she was afraid would kill her husband.

John Farber testified about burying the second pistol under his rose bush.  Nothing new.

New witness, the cook from next door testified how he heard fights with cursing between the Oesterreichs prior to the shooting. 

The next new witness was John Farber’s wife a friend of Dolly’s.  She testified that Dolly and told her not to be surprised if she heard Dolly and Fred were getting a divorce.  Dolly was fed up!

A bank teller testified that Dolly and Otto once had a joint checking account.

Otto testifies next.  Keep in mind Otto is testifying for the PROSECUTION.  Otto really had nothing new to add, he did blame Dolly for starting their affair. He told the story of being in the attic during the scuffle and the shooting, her heard Dolly in her closet.  Otto heard her call out, “Fred, are you trying to fool me?”

He said he then heard her running downstairs, scream, run back upstairs and faint in her closet.  Otto was on the stand for two days and relayed no new information.

The jury then took a road trip to the house where Fred was killed. 

Costello asked for a three-day (Friday, Saturday, and Sunday) recess as he had witnesses coming in from Milwaukee and was granted it.  The defense was thrilled as Dolly was to be their only witness and that gave them plenty of time to prepare her.

Surprise!  Guess who came from Milwaukee after all?  That’s right Alvie! Her testimony really woke up the audience!  Alvie testified that she was employed by Fred at the manufacturing plant as an office girl.  She testified that Fred was suspicious of Dolly and hired Alvie to be her companion when he went out of town on business trips.  Dolly was having none of that!  She sent Alvie home after the first night and called her back the day before Fred was to return, remember Otto first lived in the attic in Milwaukee.        

When the Oesterreichs were getting ready to move to Los Angeles, Dolly said to Alvie, “ I don’t know why I’m going to California with him.  You know what I think about him.”

Alvie replied, “Why don’t you divorce him?”

“No, there is only one way to get rid of him and it isn’t divorce”, was Dolly’s answer.

After Fred died Dolly returned to Milwaukee to take care of some or the estate business.  Alvie spoke to her several times.  “Tell me who did it,” Alvie asked her several times.

“Don’t ever ask me that question”, responded Dolly.  “I sweat blood while they were questioning me.  But don’t forget this:  I’m a fox!  I’m so hard now that I could shake hands with the devil! “

“But lots of foxes are caught, “ Alvie answered her.

“Not me!  Don’t ever answer any questions about me if you don’t want to get in trouble”, was Dolly’s final answer.

With that Alvie’s testimony was finished, the prosecution rested, and court was dismissed.

Monday, August 18, 1930 the defense begins.  Jerry Giesler starts by making a motion to dismiss because if Dolly is guilty of any crime it is as an accessory after the fact.  The motion was denied.

Dolly takes the stand.  With tears streaming down her face, for the first time since the shooting, she throws Otto under the bus.  Costello, the prosecuting attorney theorized in cross examination that while Otto and Fred were struggling, Dolly went and got the second gun and shot and killed Fred.

Closing arguments begin.  Jerry Giesler, the lead defense attorney threw Dolly’s morals under the bus, saying, “she did not commit that crime even though she is guilty of other sins.  We asked no sympathy for this woman.  Her own actions have condemned her as an unmoral woman whose sins will bring their own punishment in time.  But regardless of she may have violated the moral law, she cannot be convicted of murder on that account.”  His closing arguments lasted over five hours.

Saturday, August 23, 1930, at 9:45 am the case was given to the jury.  Two days later the jury sends notice to Judge Hardy that they are deadlocked.  Rumor has it that the jury is 9-3 to convict.  The judge tells them to go back to their hotel and relax and come back the next morning at 9:30 to reconvene.  They reconvene and manage to switch one of the 3 so it was 10-2 to convict of second-degree murder. 

Judge Hardy delayed the jurors lunch hour while he discussed the situation with the two lead attorneys.  The attorneys argued as you would expect, defense for a mistrial, prosecution for more discussions.  At the close of business Monday, Judge Hardy regretfully called a mistrial.  The jury was deadlocked at 10-2 for conviction.  All six women, by the way, voted for conviction. 

The trial had lasted three weeks and had been very expensive.  Between all of Herman Shapiro’s antics and the witnesses from Milwaukee, the state had paid a lot of money.  A new trial was set for October 14, 1930.  And then it was postponed until November 17 and her civil suit with Shapiro was postponed until January 22. 

District Attorney Castello has made a motion that when the case is called on the 17^th that it will be put off the calendar.  That means that there will be no second trial but if some new evidence comes to light, he will be able to reopen the case and put it on the docket.  Castello did this because of the hung jury in the August trial and the fact that so close to the holidays the Milwaukee witnesses did not want to come back to Los Angeles for weeks.

Judge Hardy and Jerry Giesler were not happy.  Judge Hardy gave Castello until December 15, to decide whether to drop the charges or go back to trial. In the meantime, Dolly was released on her own recognizance.  So, on December 8, 1930 the charges against Dolly were dropped. 

Jerry Giesler got a lot of publicity from Dolly’s trials.  Front page publicity and became known as the attorney to the stars!  He defended Charlie Chaplin, Alexander Pantages, Errol Flynn, Bugsy Siegel, Robert Mitchum,  and Marilyn Monroe.  Jerry died from a heart attack in 1962.

Herman Shapiro was a well-known attorney in Los Angeles and even paired up with Jerry Giesler on several cases.  In 1936 he was elected to the bench in Whittier.  That’s all I could find on Herman.

Dolly developed a taste for litigation.  She sued a jeweler in 1931 for about $3,500 for jewelry she said she gave him for safe keeping in 1928.  In 1932 she won a case against Herman for $90,000 in real estate. 

In 1935 Herman reported to Castello that he had been receiving death threats and threats of bodily harm and attributed them to Dolly.  He had just won a lawsuit against her for $140.  He showed the investigators where he had broken ribs from a scuffle with Dolly’s business manager Ray Hedrick, remember him?  Dolly and Hedrick were called into the investigator’s office and given a slap on the wrist and told to leave Herman alone.

She was also sued by several people for misrepresenting real estate that she leased to them.  She lost both cases. 

In March 1961 Dolly and Ray Hedrick were married.  Do you really think she was faithful to him for 30 years???   Dolly swore that she was 65 although she had to be in her mid-eighties at least.  Ray said they had been in love for 30 years, and they were marrying now because Dolly was ill and as her husband, he could make medical decisions for her.  And she was very ill and died on April 8, 1961 about two weeks after she married Hedrick.

Hedrick inherited millions in real estate.

Dolly lived a long life. She was wealthy beautiful and had lots of lovers. Unfortunately she was crazy too!

The made for TV movie Man in the Attic, was inspired by Dolly’s story. It starred Anne Archer and Neil Patrick Harris.

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Dolly’s Craziness begins. So, remember Herman Shapiro, the attorney that had Fred’s watch?  Herman had his own problems.  He was divorcing his wife Nellie and she filed suit that she receive all the couple’s assets and funds.  She maintained that she had supported Herman throughout their marriage, set up his law office, and that he never contributed to the household expenses.  She won, so Herman had no home, no office, and no money.  Pretty much just the clothes on his back. 

Shapiro moved in with Dolly in her new house, closed his practice and was promised 50% of everything that Dolly inherited from Fred.  He devoted all his time to Dolly until September 1928.  They started a business together, Automobile Loan Corporation.  This business made loans on car purchases and invested in real estate, including a five-story office building for $150,000 and a $100,000 Spanish style house sitting on five lots for Herman.  That house in today’s money would be about $1.5 million. 

Is Dolly Crazy?

When Dolly was in jail in 1925, she begged Shapiro to take some food to the house and leave it where it could be easily reached.  Dolly told him to scratch on the walls and the man would come get it.  The man was her “half-brother” and lived in the attic.  The food was gone the next day.  Shapiro was amazed, he had no idea anyone else was living in the house with them.

After all this happened, Shapiro went to Dolly’s defense attorney, Frank Dominguez and asked him what to do. 

“What should I do,” asked Shapiro.

“Go and tell him to get out!” answered Dominguez.

Shapiro went back to Dolly’s house and to her closet.  He whistled loudly and saw first a hand and then a head and then an entire man come out onto the top shelf of Dolly’s closet. 

The man known as Walter Klein stepped out.  Klein told Shapiro that he had lived in a secret compartment in the attic in the house where Fred was killed and continued to live there for a year after the shooting.  For ten years he had lived in Dolly’s attics.  Klein told Shapiro that he had heard a fight between Fred and Dolly and was afraid that Dolly would be hurt so he came out and struggled with Fred and finally shot him and locked Dolly in the closet.

Who is Walter Klein?

Walter Klein was really Otto Sanhuber.  He was the adopted son of Mr. and Mrs. George Sanhuber and lived next door to the Oesterreichs in Milwaukee.  He left school at the age of 16 and got a job as a repairman for a sewing machine company.  Over the years he visited the Oesterreich manufacturing company many times to maintain their sewing machines.  He was a small retiring teenager and Dolly fell in love with him!

Dolly’s son had just died, and she was lonely.  She called Fred and told him that her sewing machine at home was broken, so he sent Otto over to the house.  Dolly met him at the door in a silk robe, perfume, stockings, and slippers.  The sewing machine had been conveniently moved to the bedroom, and so it began.

They met at Otto’s boarding house, at cheap hotels and at Dolly’s house.  Soon the neighbors began to gossip about him visiting Dolly all the time.  The gossip soon reached Fred who hired private detectives to follow the two lovers.  Dolly was desperate, she didn’t want to give up Otto, but she didn’t want to divorce Fred either and give up all that lovely money!

She told Fred that she wouldn’t see Otto anymore, and all was forgiven, and the marriage continued on smoothly.  Otto just vanished, or so it appeared.

Dolly asked Otto to quit his job and to move into her attic.  Otto had built himself a secret compartment in the attic of the Milwaukee house.  He didn’t mind because he had Dolly every day, free room and board and he could write pulp fiction, his second passion.  Otto did the domestic chores during the day when Fred and Dolly were at work at the plant.  Dolly suddenly called in sick a lot more than usual.  Fred soon wanted to move to Los Angeles and build another manufacturing company.  What was Dolly to do?  She sent Otto on ahead to Los Angeles where he built another secret compartment in the Los Angeles house before they moved in

After Shapiro kicked Otto out of the house.  He got a few jobs as hotel porter and janitor, but he had problems adjusting to being out in the sunshine all the time.  He finally moved to Canada where he changed his name to Walter Klein, met a woman, Matilda, and married her.  She stayed with him through all the things that followed.

Ray Hedrick – a new lover

Dolly’s craziness continues when she became interested in Ray Hedrick.  She and Shapiro had a falling out and she threatened him and had Ray strong arm him into a waiting automobile.  Shapiro called the police for protection.

The craziness continues with Dolly’s love of lawsuits, you file first, she counter sues, you counter sue and so on and so forth. In 1928, Dolly was sued by Genevieve Hedrick for $300,000 for the alienation of affections of her husband Ray B. Hedrick.  She also filed suit against her husband asking to split their assets, alimony, and a restraining order on Ray buying or selling anything until the suit was settled.

Genevieve was given police protection as she started receiving death threats both written and over the phone from the time she filed the lawsuit.

In her complaint, Genevieve states that she and Ray were happy for 12 years until Dolly came onto the scene.  She claims Dolly plied Ray with liquor and gave him presents and money. 

Ray is a real estate man.  He helped Dolly sell the house where Fred was shot and killed and buy a new house in Beverly Hills.  He also was helping her with some real estate investments that she was either acquiring or disposing of.

Dolly vehemently denied the charges in the lawsuit and especially the death threats that were given to Genevieve.  She then filed suit against Genevieve’s mother, Josephine Stanton, for $500,000 for slander.  Josephine was the one that told the police that Dolly was threatening Genevieve.

Ray then filed a cross-suit against Genevieve because she “pinched, struck, slapped, beat, shoved and kicked him, inflicting serious and painful injuries.”  She also called him names, like “Dutch Blockhead”.

The case was settled privately so I have no information on who got what.

Dolly’s craziness continues by taking revenge on Herman Shapiro. Dolly asked the court for a resolution to dissolve Automobile Loan Corporation, she claims that Herman never gave her an accounting of either the profits or the investments.  Herman countered with a suit for $90,000 for his half of the remaining assets. 

But Herman retaliated and soon filed the affidavit.  He filed an affidavit with the District Attorney’s office about a “vagabond half-brother” who lived in the attic of the Oesterreich’s homes both in Milwaukee and Los Angeles.   This “attic-lover” was responsible for shooting Fred. According to Herman, Otto had been living in Dolly’s attics for 10 years.

Otto’s Arrest and Trial

The police investigated the homes in Los Angeles and had the Milwaukee police investigate the house there.  They found the secret compartments in the attics. 

Otto was arrested at a boarding house where he worked as a janitor on April 7, 1930 – eight years after the shooting, and Dolly with her attorney turned herself in.  Dolly was released on $50,000 bail, but Otto was denied bail and went to jail.

They asked for and received separate trials and both entered double pleas.  Otto, not guilty and not guilty by reason of insanity and Dolly, not guilty and not guilty by reason of once having been in jeopardy on the same charge.

Otto’s trial was first.  Oddly enough, Judge Carlos Hardy had to issue a bench warrant for Herman Shapiro to testify.  He failed to show up when he was assigned to testify.  Our good friend Ray Klumb did show up and testified.  Otto’s attorney tried to make a case that Klumb had killed Fred, but nobody was buying it.  Klumb left the courtroom and immediately filed a slander lawsuit against Otto’s attorney, Earl Wakeman for $100,000.

Otto took the stand and said that Herman could not testify as he had paid him $10 and everything he told him was covered by attorney client privilege.  Otto then testified that District Attorney Fitts promised him immunity from First Degree Murder if he would confess to the grand jury.  Fitts had to testify with the jury excused. 

He testified that Herman Shapiro had coached him in the self-defense story to protect Dolly. Otto then testified that he was locked in the attic at the time Fred was killed.  He heard Dolly run upstairs into her closet then he heard a loud noise and gunshots.  He blamed Shapiro for the murder.

However, Otto made two mistakes in his new version of the murder during cross examination.  The first was that he admitted that he owned the two guns, and the second was that he had thrown and inkwell at a prowler in the Oesterreich home once.  Both statements he previously denied vehemently.

Shapiro was brought back and denied having coached Otto on his story.  Two alienists (psychiatrists) testified that when Otto was under observation at a psych hospital he confessed just as he did to the grand jury, with much the same story.

The case was finally given to the jury.  After seven votes, they found Otto guilty of manslaughter.  As soon as the verdict was read, His attorney, Wakeman file a motion that the statute of limitations had run out on the manslaughter verdict, and Otto should be let go.  And so, he was on July 11, 1930.  Otto disappeared with his wife.  Probably back to Canada but there is nothing that says what happened to him.  Hopefully, he and his wife lived happily ever after.

This is one of the strangest stories I have come across.  Hold on to your horses because we’re up for a wild ride!  This story was the basis for the movie The Bliss of Mrs. Blossom.

Fred Oesterreich was killed in his home.  He was shot 3 times, twice in the heart and once in the temple.  His body was laying in the parlor by the front door.  There were chairs overturned and rugs in disorder, and there was a bullet in the ceiling showing Fred put up a fight. 

Dolly Oesterreich was locked in the closet from the outside.  Dolly told the police that they were out with friends and when they came home a man forced her into the closet where she heard 3 shots and began screaming.  J.W. Ashley a neighbor was out walking heard the screaming and looked in the window and saw Fred’s body.  He called the police.  The police arrived and let Dolly out of the closet where she was crying hysterically.  There was jewelry worth over $50,000 that were left in the house.

Police believe that the murder was done by a six-member robber gang which included one woman.  Early in the morning police officers heard a wild party going on and went into the house, they arrested one of the members who had a .25 caliber pistol that had been shot recently.  None of the “gang” could account for their time during the murder.

Inquest into Fred’s death held at Riedeman Undertaking Company.  Cora Norton the next-door neighbor testified that the murderers were in the house for 15 minutes.  Her niece Flora Rawson was staying with her at the time and substantiated that part of her testimony.   Cora then also testified that the screams she heard could not have come from a closet, “they were too distinct for that.”

This confirmed to lead investigator Detective Lieutenant Herman Cline that the gang was not responsible for the murder, and that somehow Walburga “Dolly” Oesterreich was somehow involved.

Walburga “Dolly” Korschel was born in Milwaukee around 1880.  Dolly was working in a bonnet factory in Chicago when she was 14.  Dolly was always beautiful. There she met Fred Oesterreich, 17, the son of a shoe store owner.  They had a three-year romance and married.  They moved to Milwaukee where they opened their own shoe store.  The store did well, and they opened other stores in surrounding cities.  They also started a small manufacturing company that made Men and Boy’s caps. 

Dolly and Fred moved to Los Angeles in 1918 when Dolly was 30.  They started up a new manufacturing facility Oesterreich Garment Company.  The company did very well, and the couple bought a mansion on North St. Andrew that had once belonged to a movie star. 

And then August 22, 1922 disaster strikes!  Fred is shot and killed, and Dolly is locked in her closet.

Lieutenant Cline becomes the lead detective and suspects that Dolly killed Fred.  Herman Shapiro, Dolly’s attorney, who is helping her settle the estate, admits that he has lived with Dolly in her house since Fred was killed, and that the gold watch he is wearing belonged to Fred, which he turns over to the police.  This somehow leaks to the press and two witnesses come forward.

J.E. Farber and Roy Klumb told the DA about Dolly giving them .25 caliber pistols to get rid of.  Frank Dominguez, Dolly’s attorney labeled Klumb as “Judas Iscariot” as Klumb had tried to sell his story to the newspapers before going to the police. 

Roy Klumb the 23-year-old actor/producer seems to have disappeared.  He was set to be the star prosecution witness and can’t be found anywhere; friends and family say they don’t know.  Klumb supposedly pursued Dolly and asked her repeatedly to marry him.  When she wouldn’t he asked for money and cars.  She gave him $600 to go away and he became furious and tried to sell the story and when he couldn’t do that he went to the police.

A meeting occurred between Deputy District Attorney William J. Clark, head of the homicide squad Detective Lieutenants Herman Cline and Captain George K. Home to present the evidence against Dolly Oesterreich to try her for murder.  The main evidence consists of one rusted pistol and the rusted bent pieces of a second pistol.  All they have is Klumb and Farber’s testimony.

Dolly was arrested and detained in the city jail.  When they wanted to question Dolly her attorney, Frank Dominguez said, “My client will not say a word until I give her permission.  I think it is more important this morning to tell about the rats that run over the cots in the women’s department of the city jail and make the women prisoners hysterical.  My client is so wrought up over the rats frightening her that she cannot even discuss her case.” 

A bail hearing is held because of the rats and Dolly’s failing health. Dolly is released on a $50,000 bond.  That’s about $800,000 in today’s dollars.

Detectives Cline and Captain Home toured the Oesterreich’s home.  They found a second door to the closet that Dolly was locked in from the Dressing Room.  Dolly had sold the house and apparently the new owners put in the second door.  Dominguez said that Dolly wanted to clear the atrocious murder and that she had nothing to conceal.

Patrolman Stoll was the first police officer on the scene and his reports are missing.  The reports contained information about the closet door and the door to the room leading to the closet.  Dolly spent the day listening to a Dictaphone tape that Frank recorded to the ex-con and said, “Where one is not guilty of crime, there is nothing to fear.”  Dolly listened to that sentence over and over.

The trial was postponed or continued ten, that’s right 10 times.  Finally, on January 16, 1925, two and a half years after the murder, Dolly was released.  Judge Carlos Hardy dismissed the case for  on a motion by the District Attorney for insufficient evidence. 

So that’s the end of the story….

Not even close!