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

Introduction
This book will be profoundly uncomfortable to read. It was profoundly uncomfortable to write. It tells the story of IBM's conscious involvement--directly and through its subsidiaries--in the Holocaust, as well as its involvement in the Nazi war machine that murdered millions of others throughout Europe.
Mankind barely noticed when the concept of massively organized information quietly emerged to become a means of social control, a weapon of war, and a roadmap for group destruction. The unique igniting event was the most fateful day of the last century, January 30, 1933, the day Adolf Hitler came to power. Hitler and his hatred of the Jews was the ironic driving force behind this intellectual turning point. But his quest was greatly enhanced and energized by the ingenuity and craving for profit of a single American company and its legendary, autocratic chairman. That company was International Business Machines, and its chairman was Thomas J. Watson.
Der Führer's obsession with Jewish destruction was hardly original. There had been czars and tyrants before him. But for the first time in history, an anti-Semite had automation on his side. Hitler didn't do it alone. He had help.
In the upside-down world of the Holocaust, dignified professionals were Hitler's advance troops. Police officials disregarded their duty in favor of protecting villains and persecuting victims. Lawyers perverted concepts of justice to create anti-Jewish laws. Doctors defiled the art of medicine to perpetrate ghastly experiments and even choose who was healthy enough to be worked to death--and who could be cost-effectively sent to the gas chamber. Scientists and engineersdebased their higher calling to devise the instruments and rationales of destruction. And statisticians used their little known but powerful discipline to identify the victims, project and rationalize the benefits of their destruction, organize their persecution, and even audit the efficiency of genocide. Enter IBM and its overseas subsidiaries.
Solipsistic and dazzled by its own swirling universe of technical possibilities, IBM was self-gripped by a special amoral corporate mantra: if it can be done, it should be done. To the blind technocrat, the means were more important than the ends. The destruction of the Jewish people became even less important because the invigorating nature of IBM's technical achievement was only heightened by the fantastical profits to be made at a time when bread lines stretched across the world.
So how did it work?
When Hitler came to power, a central Nazi goal was to identify and destroy Germany's 600,000 Jews. To Nazis, Jews were not just those who practiced Judaism, but those of Jewish blood, regardless of their assimilation, intermarriage, religious activity, or even conversion to Christianity. Only after Jews were identified could they be targeted for asset confiscation, ghettoization, deportation, and ultimately extermination. To search generations of communal, church, and governmental records all across Germany--and later throughout Europe--was a cross-indexing task so monumental, it called for a computer. But in 1933, no computer existed.
When the Reich needed to mount a systematic campaign of Jewish economic disenfranchisement and later began the massive movement of European Jews out of their homes and into ghettos, once again, the task was so prodigious it called for a computer. But in 1933, no computer existed.
When the Final Solution sought to efficiently transport Jews out of European ghettos along railroad lines and into death camps, with timing so precise the victims were able to walk right out of the boxcar and into a waiting gas chamber, the coordination was so complex a task, this too called for a computer. But in 1933, no computer existed.
However, another invention did exist: the IBM punch card and card sorting system--a precursor to the computer. IBM, primarily through its German subsidiary, made Hitler's program of Jewish destruction a technologic mission the company pursued with chilling success. IBM Germany, using its own staff and equipment, designed, executed, and supplied the indispensable technologic assistance Hitler's Third Reich needed to accomplish what had never been done before--the automation of human destruction. More than 2,000 such multi-machine sets were dispatched throughout Germany, and thousands more throughout German-dominated Europe. Card sorting operations were established in every major concentration camp. People were moved from place to place, systematically worked to death, and their remains cataloged with icy automation.
IBM Germany, known in those days as Deutsche Hollerith Maschinen Gesellschaft, or Dehomag, did not simply sell the Reich machines and then walk away. IBM's subsidiary, with the knowledge of its New York headquarters, enthusiastically custom-designed the complex devices and specialized applications as an official corporate undertaking. Dehomag's top management was comprised of openly rabid Nazis who were arrested after the war for their Party affiliation. IBM NY always understood--from the outset in 1933--that it was courting and doing business with the upper echelon of the Nazi Party. The company leveraged its Nazi Party connections to continuously enhance its business relationship with Hitler's Reich, in Germany and throughout Nazi-dominated Europe.
Dehomag and other IBM subsidiaries custom-designed the applications. Its technicians sent mock-ups of punch cards back and forth to Reich offices until the data columns were acceptable, much as any software designer would today. Punch cards could only be designed, printed, and purchased from one source: IBM. The machines were not sold, they were leased, and regularly maintained and upgraded by only one source: IBM. IBM subsidiaries trained the Nazi officers and their surrogates throughout Europe, set up branch offices and local dealerships throughout Nazi Europe staffed by a revolving door of IBM employees, and scoured paper mills to produce as many as 1.5 billion punch cards a year in Germany alone. Moreover, the fragile machines were serviced on site about once per month, even when that site was in or near a concentration camp. IBM Germany's headquarters in Berlin maintained duplicates of many code books, much as any IBM service bureau today would maintain data backups for computers.
I was haunted by a question whose answer has long eluded historians. The Germans always had the lists of Jewish names. Suddenly, a squadron of grim-faced SS would burst into a city square and post a notice demanding those listed assemble the next day at the train station for deportation to the East. But how did the Nazis get the lists? For decades, no one has known. Few have asked.
The answer: IBM Germany's census operations and similar advanced people counting and registration technologies. IBM was founded in 1898 by German inventor Herman Hollerith as a census tabulating company. Census was its business. But when IBM Germany formed its philosophical and technologic alliance with Nazi Germany, census and registration took on a new mission. IBM Germany invented the racial census--listing not just religious affiliation, but bloodline going back generations. This was the Nazi data lust. Not just to count the Jews--but to identify them.
People and asset registration was only one of the many uses Nazi Germany found for high-speed data sorters. Food allocation was organized around databases, allowing Germany to starve the Jews. Slave labor was identified, tracked, and managed largely through punch cards. Punch cards even made the trains run on time and cataloged their human cargo. German Railway, the Reichsbahn, Dehomag's biggest customer, dealt directly with senior management in Berlin. Dehomag maintained punch card installations at train depots across Germany, and eventually across all Europe.
How much did IBM know? Some of it IBM knew on a daily basis throughout the 12-year Reich. The worst of it IBM preferred not to know--"don't ask, don't tell" was the order of the day. Yet IBM NY officials, and frequently Watson's personal representatives, Harrison Chauncey and Werner Lier, were almost constantly in Berlin or Geneva, monitoring activities, ensuring that the parent company in New York was not cut out of any of the profits or business opportunities Nazism presented. When U.S. law made such direct contact illegal, IBM's Swiss office became the nexus, providing the New York office continuous information and credible deniability.
Certainly, the dynamics and context of IBM's alliance with Nazi Germany changed throughout the twelve-year Reich. I want the full story understood in context. Skipping around in the book will only lead to flawed and erroneous conclusions. So if you intend to skim, or rely on selected sections, please do not read the book at all. Make no mistake. The Holocaust would still have occurred without IBM. To think otherwise is more than wrong. The Holocaust would have proceeded--and often did proceed--with simple bullets, death marches, and massacres based on pen and paper persecution. But there is reason to examine the fantastical numbers Hitler achieved in murdering so many millions so swiftly, and identify the crucial role of automation and technology. Accountability is needed.
What made me demand answers to the unasked questions about IBM and the Holocaust? I confronted the reality of IBM's involvement one day in 1993 in Washington at the United States Holocaust Museum. There, in the very first exhibit, an IBM Hollerith D-11 card sorting machine--riddled with circuits, slots, and wires--was prominently displayed. Clearly affixed to the machine's front panel glistened an IBM nameplate. It has since been replaced with a smaller IBM machine because so many people congregated around it, creating a bottleneck. The exhibit explained little more than that IBM was responsible for organizing the census of 1933 that first identified the Jews. IBM had been tight-lipped about its involvement with Nazi Germany. So although 15 million people, including most major Holocaust experts, have seen the display, and in spite of the best efforts of leading Museum historians, little more was understood about this provocative display other than the brief curator's description at the exhibit and a few pages of supportive research.
I still remember the moment, staring at the machine for an hour. I turned to my mother and father who accompanied me to the museum that day and promised I would discover more.
My parents are Holocaust survivors, uprooted from their homes in Poland. My mother escaped from a boxcar en route to Treblinka, was shot, and then buried in a shallow mass grave. My father had already run away from a guarded line of Jews and discovered her leg protruding from the snow. By moonlight and by courage, these two escapees survived against the cold, the hunger, and the Reich. Standing next to me five decades later, their image within the reflection of the exhibit glass, shrapnel and bullet fragments permanently embedded in their bodies, my parents could only express confusion.
But I had other questions. The Nazis had my parents' names. How?
What was the connection of this gleaming black, beige and silver machine, squatting silently in this dimly lit museum, to the millions of Jews and other Europeans who were murdered--and murdered not just in a chaotic split-second as a casualty of war, but in a grotesque and protracted twelve-year campaign of highly organized humiliation, dehumanization, and then ultimately extermination.
For years after that chance discovery, I was shadowed by the realization that IBM was somehow involved in the Holocaust in technologic ways that had not yet been pieced together. Dots were everywhere. The dots needed to be connected.
Knowing that International Business Machines has always billed itself as a "solutions" company, I understood that IBM does not merely wait for governmental customers to call. IBM has amassed its fortune and reputation precisely because it generally anticipates governmental and corporate needs even before they develop, and then offers, designs, and delivers customized solutions--even if it must execute those technologic solutions with its own staff and equipment. IBM has done so for countless government agencies, corporate giants, and industrial associations.
For years I promised myself I would one day answer the question: how many solutions did IBM provide to Nazi Germany? I knew about the initial solution: the census. Just how far did the solutions go?
In 1998, I began an obsessive quest for answers. Proceeding without any foundation funds, organizational grants, or publisher dollars behind me, I began recruiting a team of researchers, interns, translators and assistants, all on my own dime.
Soon a network developed throughout the United States, as well as in Germany, Israel, England, Holland, Poland, and France. This network continued to grow as time went on. Holocaust survivors, children of survivors, retirees, and students with no connection to the Holocaust--as well as professional researchers, distinguished archivists and historians, and even former Nuremberg Trial investigators--all began a search for documentation. Ultimately, more than 100 people participated, some for months at a time, some for just a few hours searching obscure Polish documents for key phrases. Not knowing the story, they searched for key words: census, statistics, lists, registrations, railroads, punch cards, and a roster of other topics. When they found them, the material was copied and sent. For many weeks, documents were flowing in at the rate of 100 per day.
Most of my team was volunteers. All of them were sworn to secrecy. Each was shocked and saddened by the implications of the project and intensely motivated. A few said they could not sleep well for days after learning of the connection. I was often sustained by their words of encouragement.
Ultimately, I assembled more than 20,000 pages of documentation from 50 archives, library manuscript collections, museum files, and other repositories. In the process, I accessed thousands of formerly classified State Department, OSS, or other previously restricted government papers. Other obscure documents from European holdings had never been translated or connected to such an inquiry. All these were organized in my own central archive mirroring the original archival source files. We also scanned and translated more than 50 general books and memoirs, as well as contemporary technical and scientific journals covering punch cards and statistics, Nazi publications, and newspapers of the era. All of this material--primary documents, journal articles, newsclips, and book extracts--were cross-indexed by month. We created one manila folder for every month from 1933 to 1950. If a document referred to numerous dates, it was cross-filed in the numerous monthly folders. Then all contents of monthly folders were further cross-indexed into narrow topic threads, such as Warsaw Ghetto, German Census, Bulgarian Railroads, Watson in Germany, Auschwitz, and so on.
Stacks of documents organized into topics were arrayed across my basement floor. As many as six people at a time busily shuttled copies of documents from one topic stack to another from morning until midnight. One document might be copied into five or six topic stacks. A high-speed copier with a 20-bin sorter was installed. Just moving from place to place in the basement involved hopscotching around document piles.
None of the 20,000 documents were flash cards. It was much more complex. Examined singly, none revealed their story. Indeed, most of them were profoundly misleading as standalone papers. They only assumed their true meaning when juxtaposed with numerous other related documents, often from totally unrelated sources. In other words, the documents were all puzzle pieces--the picture could not be constructed until all the fragments were put together. For example, one IBM report fleetingly referred to a "Mr. Hendricks" as fetching an IBM machine from Dachau. Not until I juxtaposed that document with an obscure military statistics report discovered at the Public Record Office in London did I learn who Sgt. Hendricks really was.
Complicating the task, many of the IBM papers and notes were unsigned or undated carbons, employing deliberate vagueness, code words, catch phrases, or transient corporate short hand. I had to learn the contemporaneous lexicon of the company to decipher their content. I would study and stare at some individual documents for months until their meaning finally became clear through some other discovered document. For example, I encountered an IBM reference to accumulating "points." Eventually, I discovered that "points" referred to making sales quotas for inclusion in IBM's Hundred Percent Club. IBM maintained sales quotas for all its subsidiaries during the Hitler-era.
Sometimes a key revelation did not occur until we tracked a source back three and four stages. For example, I reviewed the English version of the well-known volume Destruction of the Dutch Jews by Jacob Presser. I found nothing on my subject. I then asked my researchers in Holland to check the Dutch edition. They found a single unfootnoted reference to a punch card system. Only by checking Presser's original typescript did we discover a marginal notation that referenced a Dutch archival document that led to a cascade of information on the Netherlands. In reviewing the Romanian census, I commissioned the translation of a German statistician's 20-page memoir to discover a single sentence confirming that punch cards were used in Romania. That information was juxtaposed against an IBM letter confirming the company was moving machinery from war-torn Poland into Romania to aid Romanian census operations.
In the truest sense, the story of IBM and the Holocaust has been shattered into thousands of shards. Only by piecing them all together did I erect a towering picture window permitting me to view what really occurred. That verified account is retold in this book.
In my pursuit, I received extraordinary cooperation from every private, public, and governmental source in every country. Sadly, the only refusal came from IBM itself, which rebuffed my requests for access to documents and interviews. I was not alone. Since WWII, the company has steadfastly refused to cooperate with outside authors. Virtually every recent book on IBM, whether written by esteemed business historians or ex-IBM employees, includes a reference to the company's refusal to cooperate with the author in any way. Ultimately, I was able to arrange proper access. Hundreds of IBM documents were placed at my disposal. I read them all.
Behind every text footnote is a file folder with all the hardcopy documentation needed to document every sentence in this book at a moment's notice. Moreover, I assembled a team of hair-splitting, nitpicking, adversarial researchers and archivists to review each and every sentence, collectively ensuring that each fact and fragment of a fact was backed up with the necessary black and white documents.
In reconstructing the facts, I was guided on every page by two principles: context and consequences. For instance, although I enjoyed access to volumes of diplomatic and intelligence information, I was careful to concentrate on what was known publicly in the media about atrocities and anti-Jewish conditions in Europe. For this reason, readers will notice an extraordinary reliance on articles in the New York Times. I quote the New York Times not because it was the newspaper of record in America, but because IBM executives, including Thomas Watson, were headquartered in New York. Had they lived in Chicago, I would have quoted the Chicago Tribune. Had they lived in Cleveland, I would have quoted the Cleveland Plain Dealer.
Readers will also notice that I frequently relied upon reproducing the exact words the principals themselves used in telegrams, letters, or telephone transcripts. Readers can judge for themselves exactly what was said in what context.
With few exceptions (see Bibliographical Note), the Holocaust literature is virtually devoid of mention of the Hollerith machines--in spite of its high profile display at the United States Holocaust Museum. Historians should not be defensive about the absence of even a mention. The public documents were all there, but there are literally millions of frames and pages of Holocaust documents in the leading archives of the world. Many of these materials had simply never been accessed, many have not been available, and some are based on false chronologies or appear to be corporate minutia. Others were well known, such as Heydrich's 1939 instruction on concentrating Jewish communities near railroad tracks, but the repeated references to census operations were simply overlooked.
More than the obscurity of the documents, such an investigation would require expertise in the history of the Holocaust before and after the war began, the history of post-Industrial Revolution mechanization, the history of technology, and more specifically the archaic punch card system, as well as an understanding of Reich economics, multi-national corporations, and a grasp of financial collusion. In addition, one would need to juxtapose the information for numerous countries before assembling the complete picture. Just as important is the fact that until I examined the IBM documents, that half of the screen was totally obscured. Again, the documents do not speak by themselves, only in ensemble. I was fortunate to have an understanding of Reich economics and multinational commerce from my earlier book, The Transfer Agreement, as well as a background in the computer industry, and years of experience as an investigative journalist specializing in corporate misconduct. I approached this project as a typical if not grandiose investigation of corporate conduct with one dramatic difference: the conduct impacted on the lives and deaths of millions.
Gathering my pre-publication expert reviewers was a process in itself. I sought not only the leading historians of the Holocaust, but niche experts on such topics as Vichy France, Romania, and census and persecution. But I also consulted business historians, technical specialists, accountants, legal sources on reparations and corporate war crimes, an investigator from the original Nuremberg prosecution team, a wartime military intelligence technology expert, and even an ex-FBI special agent with expertise in financial crimes. I wanted the prismatic view of all.
Changing perspective was perhaps the dominant reason why the relationship between IBM and the Holocaust has never been explored. When I first wrote The Transfer Agreement in 1984, no one wanted to focus on assets. Now everyone talks about the assets. The formative years for most Holocaust scholarship was before the computer age, and well before the Age of Information. Everyone now possesses an understanding of how technology can be utilized in the affairs of war and peace. We can now go back and look at the same documentation in a new light.
Many of us have become enraptured by the Age of Computerization and the Age of Information. I know I have. But now I am consumed with a new awareness that, for me, as the son of Holocaust survivors, brings me to a whole new consciousness. I call it the Age of Realization, as we look back and examine technology's wake. Unless we understand how the Nazis acquired the names, more lists will be compiled against more people.
The story of IBM and the Holocaust is just a beginning. I could have written 20 books with the documents I uncovered, one for every country in Europe. I estimate there are 100,000 more documents scattered in basements and corporate archives around the United States and Europe. Corporate archivists should take note: these documents are related to a crime and must not be moved, tampered with, or destroyed. They must be transferred to those appropriate archival institutions that can assure immediate and undelayed access to scholars and war crimes prosecutors so the accountability process can continue (see Note on Sources).
Only through exposing and examining what really occurred can the world of technology finally adopt the well-worn motto: Never Again.
Edwin Black
Washington DC
October 2000
From the Hardcover edition.