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A Tech Empire, 1935


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Thomas John Watson was an American businessman, and perhaps the most unsung mogul of his age. Today, few people know Watson’s story, yet he was behind a technological empire and icon of American enterprise – the jewel of the burgeoning digital industry that was IBM. Indeed, it was Watson who coined the company’s now-famous slogan: “World Peace through World Trade.”

 

Thomas John Watson was born in 1874 in Campbell, upstate New York. He was the only son in a family of five children. Watson’s father was a farmer and woodworker, but the young man held loftier ambitions. In the land of capitalism, the supply of labour was higher than demand. A young Thomas John Watson held a string of odd jobs, working as a travelling salesman peddling organs and pianos, and later sewing machines. One fine day, having made a sale of which he was particularly proud, Watson walked into a roadside saloon to toast his success and smoke a cigar. He drank so much that when he emerged from the saloon, he found that his entire rig—horse, buggy, and samples—had been stolen from under his nose. The Wheeler and Wilson Sewing Machine Company fired him and dunned him for the lost property. This experience would have a lasting impact on Watson and his future employees: at IBM, he set strict rules regarding the consumption of alcohol by staff.

 

Thomas John Watson became a butcher, and used an NCR cash registry to handle payments. The machine fascinated him; it was practical and effective, and Watson began singing the praises of this technological marvel. Eventually, he decided he wanted to sell NCR cash registers. Wasting no time, he headed to the Buffalo branch to meet the manager. The man took Watson under his wing, teaching him the principles and secrets of salesmanship, and became a true mentor. Watson would later say that no-one had taught him more, and that he would always be grateful to his first NCR manager. After many failed attempts and disappointments, Watson eventually became the top salesman on the East Coast, earning over a hundred dollars a week. Then young Watson was transferred to manage the Rochester branch. This prestigious promotion saw him earning a much bigger commission on the sale of NCR machines. Watson succeeded in the role, and became a rich man. But his appetite for success was not without consequence, and he was put on trial for anti-competitive practices.

 

The NCR merged with the CTR, the Computing Tabulating Recording Company, to form IBM. The owner of the newly formed company named Thomas John Watson as its president. Once his legal issues from the NCR days were cleared up, he became CEO. Watson quickly grew the company, and its popularity rose steadily. Thomas John Watson carefully oversaw its international relations, making IBM a flourishing multinational enterprise. However, his choice of business partners would later cause a scandal: in 2001, his communications with Nazi Germany came to light, and it was revealed that the company had provided tabulation equipment to the Third Reich. IBM punch cards had served as bar codes for human beings, and enabled the identification of Jews, homosexuals and other enemies of the regime. These punch card machines can now be seen in the Holocaust museum, but no-one can be certain whether Thomas John Watson knew what his technology was being used for.

 

Alan Alfredo Geday

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