Clearly, if he could reconstruct as much as he did with a simple request, a full search was called for. Carter returned, this time for a systematic “file search.” But he was still hobbled by the lack of a subpoena; his superiors would still not approve one. As such, he was dependent upon the voluntary cooperation of the very people he was investigating.22
In IBM’s warehouse, at 75 Murray Street in Manhattan, Carter found ten file drawers. Files were arranged alphabetically by country covering the years 1934 to 1940. They contained correspondence relating to punch card production, machine and parts inventories, tariff files, repair records, customer complaints, lists of international fairs and visitors entertained.23
But where were the key European files listing “the customer, location, type of business, ownership… card consumption and name of salesman” for each machine? Most importantly, where were the “application studies,” that is, the specific analysis of each machine’s purpose, how well it performed its task, and how it could improve? Schotte’s answer: all those records were located in the offices of IBM Geneva.24
Where were the records for 1933? Schotte’s answer: destroyed.25
At IBM World Headquarters, 590 Madison Avenue, Carter first asked for Schotte’s files. But now, cooperation had substantially narrowed. Carter was not permitted to examine the actual file drawers. Instead, Schotte brought the folders into his office for Carter’s review. Again, all the files were arranged alphabetically by country. The covered years spanned 1940 to IBM’s most recent correspondence, containing monthly narrative reports by subsidiary, the details of the IBM machine installations, and “in many instances, applications of the machines.” But no “application studies” were found for Germany, France, or Japan.26
Where were the copies of Schotte’s personal correspondence with the subsidiaries? Schotte’s answer: none were in America—they were all kept in the files of the various subsidiaries.27
Hence, to examine Schotte’s instructions, Carter would have to travel to all the capitals of Europe.
Second, Carter asked for the files of Fred Nichol, executive vice president and general manager of IBM. Nichol was second-in-command to Watson, continuously in touch with Harrison K. Chauncey, W. C. Lier, and others in Europe, and had for years maintained daily scrutiny over foreign operations. Nichol’s files were arranged chronologically from 1936 to 1942, but again Carter could not review the entire file. Carter noted, “I was not permitted to take the material from the general file, but the material was chosen for me.” Schotte explained that whatever was brought out “comprises the entire file on the foreign subsidiaries.”28
Nichol’s files contained analyses of sales performance and quotas, personnel problems, operating efficiencies at overseas branches, general records of business volume, and details of foreign visitors including “Good Will Ambassadors.” Nothing was available on operations in Germany, France, or Italy that was not shown on Carter’s previous visits.29
Third, Carter wanted to see Watson’s files. Again, Carter was not permitted to examine the actual file location. Instead, twenty-six folders covering the years from 1938 to 1942 were brought into Schotte’s office. Schotte presented the folders as “the complete file.” They included details of Watson’s tour as ICC president, lists of top sales achievers, copies of overseas information previously given, correspondence involving tax rates and subsidiary voting shares, letters from and about friends moving from Europe to the Americas, and exchanges of Season’s Greetings.30
Where was all of Watson’s business correspondence? Schotte’s answer: Since Watson traveled in Europe extensively, “much of the business was transacted orally.” If written materials did exist, then they would be in Geneva.31
Carter left IBM’s offices with little. He typed a note to file:
Because of the meager information contained in the files, especially on the European subsidiaries, it is reasonable to assume that either the important files are in the offices of the European headquarters in Geneva, Switzerland, or IBM has not made full disclosure.32
ALTHOUGH WATSON had been America’s chief peace exponent during the Hitler years before Pearl Harbor, he had prepared for the day when the United States would enter the conflict. As early as August 1940, the War Department began speaking to Watson about converting IBM’s manufacturing muscle to war use—but not for Holleriths. The War Department wanted IBM to make machine guns.33
On March 31, 1941, long before the U.S. was attacked, Watson had incorporated a new subsidiary, Munitions Manufacturing Corporation. The president of a long-time IBM supplier was designated president. Two small canning buildings were purchased for $201,546. Within sixty days of the December 1941 attack on Pearl Harbor, Watson unveiled a fully equipped 140,000-square-foot manufacturing facility, staffed by 250 employees. The first product was a 20mm anti-aircraft cannon. Eventually, Munitions Manufacturing Corporation produced approximately thirty-two different weapons and other military items, including Browning automatic rifles, gas masks, bomb-sights, 90mm anti-aircraft gun directors, and 345,500 units of the 30-caliber M1 carbine rifle. IBM logos were stamped on most of the products, including the carbine rifle butts. By 1943, eventually two-thirds of IBM’s entire factory capacity had shifted from tabulators to munitions.34
More than just a manufacturer, IBM undertook sophisticated research on ninety-nine strategic military research projects, including ballistics trajectory studies, aircraft design, automated inventory control, transportation routing, aircraft fire control systems, and an advanced wireless, electronic messaging unit called Radiotype.35
One special defense project involved an experimental system requested by the Army Air Corps. It needed a device that could read holes in telegraphic paper and translate the results to punch cards. Watson was ready for such a request because he had already produced a preliminary design for a company identified as “National Analine.” IBM did not complete the work for “National Analine” and instead transferred the project to the U.S. military.36
IBM also developed powerful mobile Hollerith units transported in thirty-foot rubber-padded trailers pulled by 2.5-ton tractors. The first sixteen mo bile units were delivered by spring 1942 with more than 260 similar such units deployed throughout the war. In the Pacific, mobile Holleriths were hopscotched from one Pacific atoll to the next. In the European theatre, Hollerith vans were brought ashore in Tunisia and Sicily along with all other mobile equipment. Understanding their strategic value, the German High Command had issued priority orders to capture such a unit, with its crew, if possible. That never happened.37
Machine Record Units [MRUs] were nothing less than IBM-trained military units specializing in deploying IBM-made equipment. They were also designated to help capture any Holleriths discovered in Europe or the Pacific theatre. A typical MRU detachment was staffed by twenty-nine enlisted men and three officers proficient in punch card operations. To churn out the MRUs, IBM’s school at Endicott was converted into a military academy where about 1,300 soldiers were trained to use Holleriths under war conditions. Many of these units were commanded and serviced by IBM employees on leave. They formed a cohesive group of troops, affectionately called “IBM Soldiers,” with distinct loyalties to their company and Watson.38 These IBM Soldiers would have special roles when they came upon IBM factories in Europe.