The German government issued dire warning after dire warning that the situation could worsen. But a New York Times feature on November 14, 1938, ominously asked, “Inasmuch as everything has been done to the Jews in Germany that can be done to a people short of physical extermination, there are arising some obvious speculations as to what these continued warnings may imply.” The question was answered just days later on November 30, when the newspaper published an article headlined “Jews in Germany Get Extermination Threat,” quoting the Schwarze Korps, the organ of Hitler’s SS, as it advertised the potential for wholesale Jewish murder.32
Watson had visited Germany twice in 1938, once in late May, just after the Anschluss of Austria, and once in early October, during the tense build-up to Kristallnacht. 33
Germany was threatening invasion daily. War preparations were no secret. Reich propagandists spread the word, ensuring headlines and debates. Commanders fortified borders. Mobilization plans were disseminated. Aircraft engineers received special awards for new bomber and fighter designs. Passenger trains were restricted so rail stock could be devoted to troop movements. Housewives were publicly asked to dramatically reduce consumption of fats to save money so the Reich could purchase raw materials urgently needed for its weapons production.34 War was in the air.
Yet, throughout the year, Watson argued passionately for Germany’s demands. He barely made an appearance at an international commercial meeting, university commencement ceremony, ribbon-cutting, or press conference without reiterating his well-worn Hitleresque appeal that the world “redistribute its raw materials” and lower so-called “trade barriers” as “the path to peace.” This public lobbying was undertaken even as the mass media regularly published articles and broadcast explanations that Germany desperately only needed those raw materials to arm her war machine. Even though Watson’s pronouncements sounded to many as mere code for the Nazi agenda, he held fast to his script. More than that, whenever Watson returned from a tour of the Continent, his dockside remarks always spoke glowingly of the optimism throughout Europe and the steadily increased standard of living for all—this at a time when the world was teetering on the brink of total war and witnessing the dispossession of the Jews.35
Prominent writers and personalities would rebut Watson’s brand of thinking. One foreign correspondent in the New York Times reflected the common view when he wrote, “It must be remembered… the series of boycotts due to worldwide resentment against German domestic policies… play almost as large a part as do the trade barriers.” In May 1938, just after the Anschluss and just before sailing to Germany, Watson answered such sentiments. “Unjust criticism of business is a trade barrier,” he lectured his fellow industrialists at an ICC gathering, adding, “Unjust criticism of government is another trade barrier.”36
For Watson, whatever Hitler was doing to the Jews and other perceived enemies of the Third Reich was no obstacle to realizing profit on Germany’s plans. “You know, you can cooperate with a man without believing in everything he says and does,” Watson sermonized to his followers after one trip to Germany, adding, “If you do not agree with everything he does, cooperate with him in the things you do believe in. Others will cooperate with him in the things they believe in.” On another occasion, Watson illuminated his steeled indifference this way: “I am an American citizen. But in the IBM I am a world citizen, because we do business in 78 countries and they all look alike to me—every one of them.”37
Yet when Watson’s ocean liner anchored at New York just days after the November 10 Kristallnacht outrage, it was all different. IBM’s Leader finally realized that American sentiment had become so extremely anti-Nazi, he now needed to distance himself from the very regime he had so publicly saluted.
NOVEMBER 25, 1938
Dr. Hjalmar Schacht
President
Reichsbank
Berlin, Germany
Dear Dr. Schacht:
I returned from Europe about ten days ago, and I feel I owe it to you and the German people to tell you of the tremendous loss of good will to Germany, which is increasing on account of the latest policies of Germany in regard to dealing with Jewish minorities in your country. I feel that I would be unfair to my long list of Jewish friends if I did not appeal to your Government to give fair consideration to the Jews as human beings, and to their property rights. As you know, for many years, I have put forth my best efforts to improve trade relations between Germany and the United States, and I want you to know that it is my honest judgment that if the Jewish situation today is not improved, it will have a very serious effect on Germany’s trade with our country.
Watson reviewed the typed letter from his secretary. A diagonal line was drawn through the entire letter canceling its message and the words “Yours very truly” were vigorously crossed out. The letter would not be sent.39 Second try, this one directly to Adolf Hitler.
NOVEMBER 25, 1938
Your Excellency:
In July 1937, as President of the International Chamber of Commerce, I received by your order the Merit Cross of the German Eagle, which was presented to me by Dr. Schacht on behalf of the German Government, in recognition of my efforts for world peace, and better economic relations between Germany and other nations.
In expressing my thanks to you, I stated that I would cooperate with you in the future as I had in the past in connection with these two important issues. This, I am still most anxious to do; but upon my recent return to my country after an absence of several months I find a change in public sentiment and a loss of good will to your country, and unless something can be done to bring about a more friendly understanding on the part of our people, I feel it is going to be difficult to accomplish mutually satisfactory results in connection with our trade relations.
The change in sentiment referred to has been brought about through the decisions of your Government in dealing with minorities, and I respectfully appeal to you to give consideration to applying the Golden Rule in dealing with these minorities.
I have read with the greatest interest the statement that your Government is prepared to make arrangements with a committee of leading Quakers to assist German Jews in the spirit of charity and the Golden Rule, I venture, therefore, to accept this act as a symbol of willingness on your part to grant more generous treatment to minorities.
If your Excellency would follow up this act of kindliness with policies inspired by its humanitarian effort, it would, in my opinion, be the one way by which those interested in the exchange of goods and services and high ideals might find the opportunity to help Germany regain the valuable trade and good-will which she has lost.
Watson would be able to show his direct and unequivocal protest letter to anyone as evidence of vociferous objection to Hitler’s anti-Semitism. Presumably the letter could be exhibited with the same flourish Watson employed in displaying other letters to and from world leaders, some of which he routinely carried in his inside suit pocket. Surely, the November 25, 1938, letter would put Watson on record as unalterably opposed to Hitler’s campaign. But somehow, Watson’s explicit letter to Hitler was… misaddressed. Watson could always say it had been mailed. But in truth the Post Office returned it—unopened. Watson’s secretary tried again four months later.41