Is Naziismthe FinalStageof Capitalism? 147IBMleasedits equipmentto Germany“but whether,as alleged,it madethe FinalSolution
partof its ‘mission’ and whetherits relationshipwithGermanyin any way‘energized’ or
significantly‘enhanced’ Hitler’s effortsto destroyworldJewry.On the firstpoint,Black
neverevenattemptsto substantiatehis accusation—a scandalousomissionconsidering
the gravityof the charge.”^117 A doublestandardbecomesobviousin thiscase.Black
accusesa companyof beingcomplicitin murderif murdererstakeadvantageof its prod-
uct or service.Simultaneously,thissameBlackdoesnot givecommensuratepraisefor
companiesthatprovidegoodsor servicesthatsaveor extendlives,suchas the manufac-
turersof MRImachinesthat assistin the earlydetectionof cancers,or the pharmaceutical
companiesthat producegeneticallyengineeredinsulinfor diabetics.
Morerelevantly,Black’s portrayalof Watson’s relationshipto IBM’s Germanysubsidi-
ary andthe ThirdReichdistortsactualevents.Award-winningUSATodaytechnology
columnistKevinManeysetsthe recordstraightin his historicaltome,The Maverickand
His Machine:ThomasWatson,Sr. and the Makingof IBM. It will be grantedthatWatsondid
not takethe strongmoralstandagainstNaziismthathe shouldhavetakenas soonas he
learnedof the mistreatmentof Jews.Evenso, it mustalsobe admittedthatWatsonhad
limitedcontroloverwhatIBM’s Germanysubsidiarydid,and limitedknowledgeof that,
besides.The storybeganin 1910whenWillyHeidingerstarteda companyin his native
GermanycalledDeutscheHollerithMachinenGesellschaft,commonlyabbreviatedas
Dehomag. The“Hollerith” in the Germancompany’s namerefersto HermanHollerith
(1860–1929),the Americaninventorof the punch-cardtabulatorthatwasthenIBM’s
flagshipproduct.Heidingerownedthis entireoutfitof Dehomagoutright,and he wona
licenseto sell andleaseIBM’s patentedtabulatingmachineswithinhis owncountry.To
wit,Dehomagwasa not a subsidiaryof IBM.Rather,IBMwasthe franchisor,whereas
HeidingerandDehomagwerethe franchisee.HeidingerpaidIBM’s homeoffice10 per-
centof the costof the tabulatingmachinesthatDehomagimportedanda royaltyof 25
percentof the grosson the rentals.Whenthe Germangovernment’s governistinflation
policiesruinedthe nationaleconomy,Dehomagfounditselfunableto coverits debts.
WatsontheninformedHeidingerthatIBMitselfwouldsavehis companyif he allowed
IBMto takea controllinginterestin it. Overthe courseof severalyearsIBMeventually
cameto own90 percentof it whereasHeidingerheldontothe remaining10 percent,
managingit as a semi-independentsubsidiary.KevinManeynotesthatHeidingerstill
directedDehomag“withsomeautonomy.” Andby “the late 1930sDehomaghad become
a self-containedbusiness.It operatedfactories,designedits ownproducts,licensedpat-
entsfromIBMNewYorkto buildotherproducts,andran its ownsalesorganization.
Dehomagspecializedin one productthat is chillingin retrospect:It madethe world’s best
punchcardmachinesfor takinga census.Dehomag’s censusmachineswereso good,IBM
in the UnitedStatesstoppedmakingcensusmachines,preferringto importDehomag’s.”
The ThirdReichusedmachinesnot fromIBMNewYork,but fromDehomag.In 1933
the Nazishad conducteda censusto establishwhowasJewishand whowasnot. Maney
goeson thatthe IBMchief“didn’t knowin 1937howthe NaziswereusingDehomagor
IBMmachines.Thoughthe Nazishad oppressedJewsand othernon-Germans” through
lawsenforcingsegregationand discrimination,“few outsideof Germanyknewaboutthe
Naziplansfor genocide,andevenfewerknewaboutthe innerworkingsput in placeto
carryout thoseplans.”
EdwinBlackmentionsthaton June28, 1935,the NazishandedWatsonan honorary
medalfor his promotionof American-Germantradeas headof the InternationalChamber
of Commerce.The anti-capitalistjournalistconvenientlyomitsmentionof the widercon-
textof the situation.Theomissionprodsthe readerto inferthatthe awardwasfor
Watson’s allegedlyintentionalcontributionto the Holocaust.In reality,Watsondid not
expectto receivethataward.He metwithHitlerthatdayto securea promisefromthe