Politics & Prose April 2001

Hitler's Willing Business Partners

Hitler's Willing Business PartnersA shocking account of IBM's complicity with the Nazis is a reminder that people bear moral responsibility for the actions of the corporation&mdasha point that critics have failed to grasp.
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You are Thomas Watson, the founder of IBM, and you face a choice. Hitler has just come to power in Germany, and you are considering whether to direct your German subsidiary, Dehomag, to bid for the job of tabulating the results of a census the Nazi government wants to conduct. While you are making up your mind in your New York office, the local papers swell with stories of anti-Semitic outrages committed by that government. On March 18, 1933, The New York Times reports that the Nazis have ousted all Jewish professionals—lawyers, doctors, teachers—from their jobs. A front-page story under the headline "German Fugitives Tell of Atrocities at Hands of Nazis" describes Brown Shirts dragging Jews out of a Berlin restaurant and forcing them to run a gauntlet of kicks and blows such that the face of the last man through "resembled a beefsteak." Other stories tell of Jews being forced to clean the streets with toothbrushes, of book burnings, of 10,000 refugees fleeing Germany, and of 30,000 people—Jews, political prisoners, gays, and others—imprisoned in concentration camps. On March 27, virtually outside your window on Broadway, a crowd of more than 50,000 at a Madison Square Garden mass rally demands that American firms boycott Nazi Germany. In these circumstances, with this knowledge, will you, Thomas Watson, bid for the census contract?

From Atlantic Unbound

Flashbacks: "Swiss Banks, Nazi Plunder" (June 26, 1997)
Some damages are irreparable, some losses unrecoverable. Atlantic articles on the legacy of the Nazi past.

You are Thomas Watson, it is 1937, and you must know that the census and other work your German branch has performed for the Nazis has been used not just to count cars and cows but to identify Jews. Perhaps you have even read the comment of a Nazi statistician that "In using statistics the government now has the road map to switch from knowledge to deeds." You have visited Germany; you were in Berlin in July, 1935, when Black Shirts rampaged through the streets smashing the windows of Jewish stores, and forcing your friends, the Wertheims, to sell their department store for "next to nothing" and escape to Sweden. You have seen the broken windows, you have taken tea with a German official at a fine home that he told you was once the property of a Jew who had fled Germany, and now, in recognition of your services to the Third Reich, Hitler wants to give you a medal. Will you accept it? You are Thomas Watson, it is 1940, and Hitler has invaded France. Now comes another choice: executives of your German subsidiary want you to sell out to German principals. With Hitler moving to occupy all of Europe, this is a chance for a clean break. True, the United States is not yet in the war, but Hitler's bombs are falling on London. Disengagement would be politic. Will you sell out or fight to hold on to Dehomag?

Thomas Watson chose to tabulate the Nazi census, to accept Hitler's medal, and to fight for control of Dehomag. And he made other equally indefensible choices in his years of doing a profitable business counting Jews for Hitler—choices that are described in IBM and the Holocaust by Edwin Black. This is a shocking book, even if its subtitle, "The Strategic Alliance Between Nazi Germany and America's Most Powerful Corporation," is hyperbolic and misleading. (IBM was hardly America's most powerful company in the 1930s and 1940s; General Motors was, and it too did business with the Third Reich, though you could be forgiven for getting the impression from Mr. Black that IBM was alone in this unrighteous commerce.) IBM was a New Deal company that famously strove to avoid laying off its work force during the Depression. Watson was a friend of President and Mrs. Roosevelt's. IBM helped crack the German intelligence code. It had a good war. Yet, with the help of more than a hundred researchers working in archives in the U.S., Britain, Germany, France, and Israel, Edwin Black has documented a sordid relationship between this great American company and the Third Reich, one that extended into the war years.

The Holocaust, Black stipulates, would have occurred with or without the Hollerith tabulating machines and punch cards IBM/Dehomag leased to the Nazis. But he raises the important if ultimately unanswerable question of whether Hitler's destruction of the Jews would have happened as rapidly and claimed as many victims without the harvest of deadly information recorded by the Hollerith machines, on IBM punch cards, by IBM/Dehomag employees working for the Nazi death bureaucracy. On the efficiency question, he provocatively contrasts Holland and France. The Nazis ordered censuses in both countries soon after they were occupied. In Holland, a country with "a well-entrenched Hollerith infrastructure," out of "an estimated 140,000 Dutch Jews, more than 107,000 were deported, and of those 102,000 were murdered—a death ratio of approximately 73 percent." In France, where the "punch card infrastructure was in complete disarray," of the estimated 300,000 to 350,000 Jews in both German-occupied and Vichy zones, 85,000 were deported, of whom around 3,000 survived. "The death ratio for France was approximately 25 percent."

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Jack Beatty is a senior editor at The Atlantic Monthly and the editor of Colossus: How the Corporation Changed America, which was named one of the top ten books of 2001 by Business Week. His previous books are The World According to Peter Drucker (1998) and The Rascal King: The Life and Times of James Michael Curley (1992). More

Jack Beatty"The Atlantic Monthly is an American tradition; since 1857 it has helped to shape the American mind and conscience," senior editor Jack Beatty explains. "We are proud of that tradition. It is the tradition of excellence for which we were awarded the National Magazine Award for General Excellence. It is the tie that binds us to our past. It is a standard we won't betray."

Beatty joined The Atlantic Monthly as a senior editor in September of 1983, having previously worked as a book reviewer at Newsweek and as the literary editor of The New Republic.

Born, raised, and educated in Boston, Beatty wrote a best-selling biography of James Michael Curley, the Massachusetts congressman and governor and Boston mayor, which Addison-Wesley published in 1992 to enthusiastic reviews. The Washington Post said, "The Rascal King is an exemplary political biography. It is thorough, balanced, reflective, and gracefully written." The Chicago Sun-Times called it a ". . . beautifully written, richly detailed, vibrant biography." The book was nominated for a National Book Critics' Circle award.

His 1993 contribution to The Atlantic Monthly's Travel pages, "The Bounteous Berkshires," earned these words of praise from The Washington Post: "The best travel writers make you want to travel with them. I, for instance, would like to travel somewhere with Jack Beatty, having read his superb account of a cultural journey to the Berkshire Hills of western Massachusetts." Beatty is also the author of The World According to Peter Drucker, published in 1998 by The Free Press and called "a fine intellectual portrait" by Michael Lewis in the New York Times Book Review.

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