IBM and the Holocaust : The Strategic Alliance Between Nazi Germany and America's Most Powerful Corporation

Thomas Watson, as the CEO of IBM, and the majority shareholder of IBM’s German subsidiary Dehomag, paid little or no attention to the plight of Germany’s Jews and accepted the Merit Cross of the German Eagle with Star from Hitler himself in 1937. The award was for the company’s work in supplying Germany with IBM punch card reading machines - the computers of the day. The machines were used throughout the German government, including the Reichsbahn, the Luftwaffe, the Wehrmacht, the concentration camps themselves, and for a series of German racial censuses designed mostly to identify converted, non-observant or distant relatives of German Jews. In some camps, the punch card data included forms of torture used. The author and his researchers found letters, public statements and published articles indicating that Dehomag and IBM were completely aware of the uses of their machines. In fact, Watson strove to acquire and expand these contracts, and IBM made huge profits from them. He had to go through many convoluted legal paths to get his money out of Germany, convince the Nazis that Dehomag was not an American company and that his profits were royalties and not subject to taxation. IBM’s profits increased dramatically with the invasion of Germany’s neighbors. IBM assisted the Nazi war effort and the efficient operation of the Holocaust right up to December 7, 1941, after that date, Dehomag was run partly by the German government. IBM continued to operate in occupied Europe through their Geneva office until they were, country by country, legally prohibited from doing so. IBM concealed as much of this information as they could, and hypocritically advertised about how patriotic they were during the war.

Is any of this a surprise? I’d heard about this book, but the totality of the story is shocking.
I now recoil when I hear what new use IBM has selected for their Jeopardy-winning supercomputer “Watson”. I suppose they’ve removed the swastika from it. There were other well-known Americans who either did or would have accepted medals from Hitler. After all, should we be more reluctant to buy a car that was designed (supposedly) by Hitler himself and made by slaves, or from the American company that advised them how to do it (mondediplo.com/1998/01/11volkswag)? The failure or inability of businesses and governments to respond to genocide is clear, both in history and in today’s newspaper. What have the governments of the developed world done for the Rohingya -- and what can they do?

Sadly, for the reader of this book, the substance of the story is laid out in the introduction. Reading the rest can be a slog. And personally, I wanted to know exactly how these machines worked. There are occasional technical paragraphs, the instruments could add, or sort, or alphabetize, but this book needs an appendix with diagrams and clear technical explanations. I thought that the machines themselves were an important part of the story.
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I read a used hardbound copy of this book. I’ve heard that the paperback version is a second edition that has additional information and corrections

From the beginning of this book, two paragraphs spring to mind to not only contrast the mind of what I deem as the psychopathology behind major corporations, but what also separates murderous decisions from having to be the one at the end of the whip, so to speak:

Quickly, Cheim learned the method. Every day, transports of slave laborers were received. Prisoners were identified by descriptive Hollerith cards, each with columns and punched holes detailing nationality, date of birth, marital status, number of children, reason for incarceration, physical characteristics, and work skills. Sixteen coded categories of prisoners were listed in columns 3 and 4, depending upon the hole position: hole 3 signified homosexual, hole 9 for anti-social, hole 12 for Gypsy. Hole 8 designated a Jew. Printouts based on the cards listed the prisoners by personal code number as well.8 Column 34 was labeled "Reason for Departure." Code 2 simply meant transferred to another camp for continuing labor. Natural death was coded 3. Execution was coded 4. Suicide coded 5. The ominous code 6 designated "special handling," the term commonly understood as extermination, either in a gas chamber, by hanging, or by gunshot.

One December morning, even as the numbered man Cheim, in his tattered uniform, stepped quickly toward the Bergen-Belsen Hollerith office to stay warm and to stay alive, another man, this one dressed elegantly in a fine suit and warm overcoat, stepped out of a new chauffeured car at 590 Madison Avenue in New York. He was Thomas J. Watson. His company, IBM—one of the biggest in the world—custom-designed and leased the Hollerith card sorting system to the Third Reich for use at Bergen-Belsen and most of the other concentration camps. International Business Machines also serviced its machines almost monthly, and trained Nazi personnel to use the intricate systems. Duplicate copies of code books were kept in IBM's offices in case field books were lost. What's more, his company was the exclusive source for up to 1.5 billion punch cards the Reich required each year to run its machines.

Even though IBM still, to this day, negate their cooperating with the nazis, evidence stands clear. Thomas Watson received a medal from Hitler in 1937 and the war started in 1939, and despite this IBM still cooperated with the nazis. The pressure on Watson to return the medal didn't stand in the way of American IBM of controlling IBM in every part of Europe in every facet.

It was an irony of the war that IBM equipment was used to encode and decode for both sides of the conflict.

Indeed. Hitler and the Allies came to the same conclusion: they could not be without the machines that IBM owned, the ones that made all the automatic calculations work. All the counting of people, arms, gender, sexual preference, nationality, whether or not the person counted was a jew or not, one-half jew, one-fourth jew, one-sixteenth jew. The statistics collected was staggering and used by the Reich to fast-track The Final Solution.

IBM was in some ways bigger than the war. Both sides could not afford to proceed without the company's all-important technology. Hitler needed IBM. So did the Allies.

IBM was there every step of the way, and their personnel not only serviced the machines that made the punch-cards work, but the machines were leased - not sold - to the Reich, so that IBM could make as much money as possible. And traipsed along with IBM across Europe as the nazis exploded their boundaries and willen.

Fascism is good business, as the book says.

Watson and his international cohorts went to great lengths not only to help kill anybody to make a buck, but also to secure as many patents as possible to eliminate their competition likewise. And then, ultimately, tried to murder any trail that was left after their doings with Hitler as they realised the nazis were in fact going to lose the war. Of course, that was in the pipes from the start. IBM was, after all, a self-professed "solutions company".

The Final Solution.

Which is merely one - albeit the biggest cog, of sorts - of the many bits of the war and the book that exposes the far-reaching, blood-curdling operation that IBM ran, but chilling precision:

After nearly a decade of incremental solutions the Third Reich was ready to launch the last stage. In January 1942, a conference was held in Wannsee outside Berlin. This conference, supported by Reich statisticians and Hollerith experts, would outline the Final Solution of the Jewish problem in Europe. Once more, Holleriths would be used, but this time the Jews would not be sent away from their offices or congregated into ghettos. Germany was now ready for mass shooting pits, gas chambers, crematoria, and an ambitious Hollerith-driven program known as "extermination by labor" where Jews were systematically worked to death like spent matches. For the Jews of Europe, it was their final encounter with German automation.

And, as stated, there was The End of WWII:

In many instances, elaborate document trails in Europe were fabricated to demonstrate compliance when the opposite was true. Nonetheless, the true record would be permanently obscured. During the war years, IBM's own internal reviews conceded that correspondence about its European business primarily through its Geneva office was often faked. Dates were falsified. Revised contract provisions were proffered to hide the true facts. Misleading logs and chronologies were kept.

In the years that followed, IBM's worldwide stature became even more of a beacon to the cause of progress. It adopted a corporate motto: "The Solutions Company." Whatever the impossible task, IBM technology could find a solution. The men who headed up the IBM enterprise in Nazi Europe and America became revered giants within the corporation's global community. Chauncey became chairman of the IBM World Trade Corporation, and the European subsidiary managers were rewarded for their loyalty with top jobs. Their exploits during the Nazi era were lionized with amazing specificity in a promotional book entitled The History of Computing in Europe, published in 1967 by IBM itself. However, an internal IBM review decided to immediately withdraw the book from the market. It is no longer available in any publicly accessible library anywhere in the world.

More information also surfaced about IBM president Thomas J. Watson's involvement in Germany. A former IBM employee, now in New York State, discovered a pamphlet in his basement and sent me a copy. It was the commemorative program of a luncheon held in Watson's honor just before Watson received Hitler's medal during the 1937 Berlin International Chamber of Commerce festivities. The program includes a picture of Watson surrounded by grateful Hitler Youth, and the text of toasts by Nazi finance wizard Hjalmar Schacht appealing to Watson to help stop the anti-Nazi boycott.

All in all, this tome is extremely well-researched and well-written. I'm just waiting for a newer edition with even more information that's come up since 2003. And there's www.edwinblack.com.

From the beginning of this book, two paragraphs spring to mind to not only contrast the mind of what I deem as the psychopathology behind major corporations, but what also separates murderous decisions from having to be the one at the end of the whip, so to speak:

Quickly, Cheim learned the method. Every day, transports of slave laborers were received. Prisoners were identified by descriptive Hollerith cards, each with columns and punched holes detailing nationality, date of birth, marital status, number of children, reason for incarceration, physical characteristics, and work skills. Sixteen coded categories of prisoners were listed in columns 3 and 4, depending upon the hole position: hole 3 signified homosexual, hole 9 for anti-social, hole 12 for Gypsy. Hole 8 designated a Jew. Printouts based on the cards listed the prisoners by personal code number as well.8 Column 34 was labeled "Reason for Departure." Code 2 simply meant transferred to another camp for continuing labor. Natural death was coded 3. Execution was coded 4. Suicide coded 5. The ominous code 6 designated "special handling," the term commonly understood as extermination, either in a gas chamber, by hanging, or by gunshot.

One December morning, even as the numbered man Cheim, in his tattered uniform, stepped quickly toward the Bergen-Belsen Hollerith office to stay warm and to stay alive, another man, this one dressed elegantly in a fine suit and warm overcoat, stepped out of a new chauffeured car at 590 Madison Avenue in New York. He was Thomas J. Watson. His company, IBM—one of the biggest in the world—custom-designed and leased the Hollerith card sorting system to the Third Reich for use at Bergen-Belsen and most of the other concentration camps. International Business Machines also serviced its machines almost monthly, and trained Nazi personnel to use the intricate systems. Duplicate copies of code books were kept in IBM's offices in case field books were lost. What's more, his company was the exclusive source for up to 1.5 billion punch cards the Reich required each year to run its machines.

Even though IBM still, to this day, negate their cooperating with the nazis, evidence stands clear. Thomas Watson received a medal from Hitler in 1937 and the war started in 1939, and despite this IBM still cooperated with the nazis. The pressure on Watson to return the medal didn't stand in the way of American IBM of controlling IBM in every part of Europe in every facet.

It was an irony of the war that IBM equipment was used to encode and decode for both sides of the conflict.

Indeed. Hitler and the Allies came to the same conclusion: they could not be without the machines that IBM owned, the ones that made all the automatic calculations work. All the counting of people, arms, gender, sexual preference, nationality, whether or not the person counted was a jew or not, one-half jew, one-fourth jew, one-sixteenth jew. The statistics collected was staggering and used by the Reich to fast-track The Final Solution.

IBM was in some ways bigger than the war. Both sides could not afford to proceed without the company's all-important technology. Hitler needed IBM. So did the Allies.

IBM was there every step of the way, and their personnel not only serviced the machines that made the punch-cards work, but the machines were leased - not sold - to the Reich, so that IBM could make as much money as possible. And traipsed along with IBM across Europe as the nazis exploded their boundaries and willen.

Fascism is good business, as the book says.

Watson and his international cohorts went to great lengths not only to help kill anybody to make a buck, but also to secure as many patents as possible to eliminate their competition likewise. And then, ultimately, tried to murder any trail that was left after their doings with Hitler as they realised the nazis were in fact going to lose the war. Of course, that was in the pipes from the start. IBM was, after all, a self-professed "solutions company".

The Final Solution.

Which is merely one - albeit the biggest cog, of sorts - of the many bits of the war and the book that exposes the far-reaching, blood-curdling operation that IBM ran, but chilling precision:

After nearly a decade of incremental solutions the Third Reich was ready to launch the last stage. In January 1942, a conference was held in Wannsee outside Berlin. This conference, supported by Reich statisticians and Hollerith experts, would outline the Final Solution of the Jewish problem in Europe. Once more, Holleriths would be used, but this time the Jews would not be sent away from their offices or congregated into ghettos. Germany was now ready for mass shooting pits, gas chambers, crematoria, and an ambitious Hollerith-driven program known as "extermination by labor" where Jews were systematically worked to death like spent matches. For the Jews of Europe, it was their final encounter with German automation.

And, as stated, there was The End of WWII:

In many instances, elaborate document trails in Europe were fabricated to demonstrate compliance when the opposite was true. Nonetheless, the true record would be permanently obscured. During the war years, IBM's own internal reviews conceded that correspondence about its European business primarily through its Geneva office was often faked. Dates were falsified. Revised contract provisions were proffered to hide the true facts. Misleading logs and chronologies were kept.

In the years that followed, IBM's worldwide stature became even more of a beacon to the cause of progress. It adopted a corporate motto: "The Solutions Company." Whatever the impossible task, IBM technology could find a solution. The men who headed up the IBM enterprise in Nazi Europe and America became revered giants within the corporation's global community. Chauncey became chairman of the IBM World Trade Corporation, and the European subsidiary managers were rewarded for their loyalty with top jobs. Their exploits during the Nazi era were lionized with amazing specificity in a promotional book entitled The History of Computing in Europe, published in 1967 by IBM itself. However, an internal IBM review decided to immediately withdraw the book from the market. It is no longer available in any publicly accessible library anywhere in the world.

More information also surfaced about IBM president Thomas J. Watson's involvement in Germany. A former IBM employee, now in New York State, discovered a pamphlet in his basement and sent me a copy. It was the commemorative program of a luncheon held in Watson's honor just before Watson received Hitler's medal during the 1937 Berlin International Chamber of Commerce festivities. The program includes a picture of Watson surrounded by grateful Hitler Youth, and the text of toasts by Nazi finance wizard Hjalmar Schacht appealing to Watson to help stop the anti-Nazi boycott.

All in all, this tome is extremely well-researched and well-written. I'm just waiting for a newer edition with even more information that's come up since 2003. And there's www.edwinblack.com.

From the beginning of this book, two paragraphs spring to mind to not only contrast the mind of what I deem as the psychopathology behind major corporations, but what also separates murderous decisions from having to be the one at the end of the whip, so to speak:

Quickly, Cheim learned the method. Every day, transports of slave laborers were received. Prisoners were identified by descriptive Hollerith cards, each with columns and punched holes detailing nationality, date of birth, marital status, number of children, reason for incarceration, physical characteristics, and work skills. Sixteen coded categories of prisoners were listed in columns 3 and 4, depending upon the hole position: hole 3 signified homosexual, hole 9 for anti-social, hole 12 for Gypsy. Hole 8 designated a Jew. Printouts based on the cards listed the prisoners by personal code number as well.8 Column 34 was labeled "Reason for Departure." Code 2 simply meant transferred to another camp for continuing labor. Natural death was coded 3. Execution was coded 4. Suicide coded 5. The ominous code 6 designated "special handling," the term commonly understood as extermination, either in a gas chamber, by hanging, or by gunshot.

One December morning, even as the numbered man Cheim, in his tattered uniform, stepped quickly toward the Bergen-Belsen Hollerith office to stay warm and to stay alive, another man, this one dressed elegantly in a fine suit and warm overcoat, stepped out of a new chauffeured car at 590 Madison Avenue in New York. He was Thomas J. Watson. His company, IBM—one of the biggest in the world—custom-designed and leased the Hollerith card sorting system to the Third Reich for use at Bergen-Belsen and most of the other concentration camps. International Business Machines also serviced its machines almost monthly, and trained Nazi personnel to use the intricate systems. Duplicate copies of code books were kept in IBM's offices in case field books were lost. What's more, his company was the exclusive source for up to 1.5 billion punch cards the Reich required each year to run its machines.

Even though IBM still, to this day, negate their cooperating with the nazis, evidence stands clear. Thomas Watson received a medal from Hitler in 1937 and the war started in 1939, and despite this IBM still cooperated with the nazis. The pressure on Watson to return the medal didn't stand in the way of American IBM of controlling IBM in every part of Europe in every facet.

It was an irony of the war that IBM equipment was used to encode and decode for both sides of the conflict.

Indeed. Hitler and the Allies came to the same conclusion: they could not be without the machines that IBM owned, the ones that made all the automatic calculations work. All the counting of people, arms, gender, sexual preference, nationality, whether or not the person counted was a jew or not, one-half jew, one-fourth jew, one-sixteenth jew. The statistics collected was staggering and used by the Reich to fast-track The Final Solution.

IBM was in some ways bigger than the war. Both sides could not afford to proceed without the company's all-important technology. Hitler needed IBM. So did the Allies.

IBM was there every step of the way, and their personnel not only serviced the machines that made the punch-cards work, but the machines were leased - not sold - to the Reich, so that IBM could make as much money as possible. And traipsed along with IBM across Europe as the nazis exploded their boundaries and willen.

Fascism is good business, as the book says.

Watson and his international cohorts went to great lengths not only to help kill anybody to make a buck, but also to secure as many patents as possible to eliminate their competition likewise. And then, ultimately, tried to murder any trail that was left after their doings with Hitler as they realised the nazis were in fact going to lose the war. Of course, that was in the pipes from the start. IBM was, after all, a self-professed "solutions company".

The Final Solution.

Which is merely one - albeit the biggest cog, of sorts - of the many bits of the war and the book that exposes the far-reaching, blood-curdling operation that IBM ran, but chilling precision:

After nearly a decade of incremental solutions the Third Reich was ready to launch the last stage. In January 1942, a conference was held in Wannsee outside Berlin. This conference, supported by Reich statisticians and Hollerith experts, would outline the Final Solution of the Jewish problem in Europe. Once more, Holleriths would be used, but this time the Jews would not be sent away from their offices or congregated into ghettos. Germany was now ready for mass shooting pits, gas chambers, crematoria, and an ambitious Hollerith-driven program known as "extermination by labor" where Jews were systematically worked to death like spent matches. For the Jews of Europe, it was their final encounter with German automation.

And, as stated, there was The End of WWII:

In many instances, elaborate document trails in Europe were fabricated to demonstrate compliance when the opposite was true. Nonetheless, the true record would be permanently obscured. During the war years, IBM's own internal reviews conceded that correspondence about its European business primarily through its Geneva office was often faked. Dates were falsified. Revised contract provisions were proffered to hide the true facts. Misleading logs and chronologies were kept.

In the years that followed, IBM's worldwide stature became even more of a beacon to the cause of progress. It adopted a corporate motto: "The Solutions Company." Whatever the impossible task, IBM technology could find a solution. The men who headed up the IBM enterprise in Nazi Europe and America became revered giants within the corporation's global community. Chauncey became chairman of the IBM World Trade Corporation, and the European subsidiary managers were rewarded for their loyalty with top jobs. Their exploits during the Nazi era were lionized with amazing specificity in a promotional book entitled The History of Computing in Europe, published in 1967 by IBM itself. However, an internal IBM review decided to immediately withdraw the book from the market. It is no longer available in any publicly accessible library anywhere in the world.

More information also surfaced about IBM president Thomas J. Watson's involvement in Germany. A former IBM employee, now in New York State, discovered a pamphlet in his basement and sent me a copy. It was the commemorative program of a luncheon held in Watson's honor just before Watson received Hitler's medal during the 1937 Berlin International Chamber of Commerce festivities. The program includes a picture of Watson surrounded by grateful Hitler Youth, and the text of toasts by Nazi finance wizard Hjalmar Schacht appealing to Watson to help stop the anti-Nazi boycott.

All in all, this tome is extremely well-researched and well-written. I'm just waiting for a newer edition with even more information that's come up since 2003. And there's www.edwinblack.com.