Thomas J. Watson Sr.'s and IBM's World War II Efforts
Date Published: January 1, 2024
Thomas J. Watson Sr.'s and IBM's World War II Efforts
In 1943, Thomas J. Watson Sr. and IBM ran well over 1,000 war-bond advertisements across the United States encouraging Americans to buy bonds to support the World War II war effort. This does not include an additional set of war-bond campaign advertisements that also ran across Canada.
IBM Supports Buying War Bonds
To assist the reader in understanding how critical the year 1943 was to the war effort and to set the context for these advertisements, a list of critical dates from World War II is included.
In 1906, the Navy instituted an award for excellence which has been known ever since as the Navy "E". First awarded for excellence in gunnery, the "E" was later extended to include outstanding performance in engineering and communications. This honor was not bestowed lightly nor easily won. 
Military Awards for Plant Excellence
During WWII the "E" award was extended to embrace those plants and organizations which demonstrated excellence in building ships, weapons, and background equipment for the Navy. This is a list of the "E" awards earned by IBM's Endicott and Poughkeepsie plants: nine in all.
During World War II Watson voluntarily limited profits on all government contracts to 1.5%. Additionally, this money was placed in a fund for the benefit of the widows and orphans of IBM servicemen who lost their lives during the war. As IBM increased productivity, it also passed those savings on to the government.
IBM Controls Profits During World War II
Charts are provided documenting the significant rise in IBM revenues but that profits were flat during the war years. This is what a corporation did—and corporations should do, during a time of social crisis such as a war.

​An audit after the war showed profits were actually less than one percent.
Mobile Machine Records Units (MRUs) were the invention of Lieutenant Arthur K. (Dick) Watson, son of Thomas J. Watson Sr. He proposed housing punch-card machines in army trucks for mobile use in combat zones. It was a unique application of IBM tabulating machines installed in mobile tractor-trailers.
IBM Machine Records Units (MRU)
These "mobile" units which followed the troops—sometimes under fire—gathered, evaluated, and forwarded intelligence for leaders like Eisenhower and Patton to utilize. This information was a wartime advantage for the Allies.
"For the benefit of the new employees, I wish to state that our company manufactured thirty-eight major munition products and that IBM inventors and engineers worked on ninety-nine developments for the war program.
IBM's World War II Wartime Contributions
"Our extensive building and expansion program to meet the demands made upon us by the government was financed entirely by the company."
Watson Sr., National Telephone Conference, October 25, 1946
Tom Watson insisted that IBM's profits from any munitions contracts be limited to one and one-half per cent. These "profits" were dedicated to assisting the widows and orphans of IBM's war-time veterans. He also voluntarily relinquished any possible commissions or personal profit from World War II munition's contracts. 
Caring for World War II Widows and Orphans
He insisted on a retroactive agreement that set his maximum share of company income to a 1939 level—a  time prior to the start of World War II when IBM was receiving no revenue from government munitions.
On the 153rd Anniversary of the ratification of the United States Bill of Rights, an appeal was issued for an International Bill of Rights. It was made public for the American Jewish community by Joseph M. Proskauer along with a list of the signatures of the 172 public officials and 348 church leaders.
Standing for International Human Rights
Thomas J. Watson Sr. was one of the “public officials” who signed this declaration as documented in multiple press articles dated December 15, 1944.
In 1944, the Allies would take the battle to the Nazis. Many Americans could now sense the possibility of victory. At least in Europe, it seemed possible and achievable. It was important to ensure the stable morale of the American people behind the war effort.
Supporting War Morale on the Home Front
To convey the level of commitment of IBM and its chief executive officer to supporting their economic system of capitalism and their political system of democracy, two individual 1944 morale-lifting campaigns are documented in this article.
​As of March 31, 1944, IBM had 4,147 members of the United States and 152 members of the Canadian organization or a total of 4,299 individuals in the Armed Forces of the United States and Canada. This represented 27 per cent of the corporation's men.
IBM's World War II Service Record
Additionally, IBM had 54 women in the service.
In 1945, World War II came to a close. Germany surrendered unconditionally in May and the Japanese in September. During this time, forward thinking political, business, and spiritual leaders wanted to avoid another Versailles.
Keeping a Promise to WWII Veterans
To convey the level of commitment of IBM and its chief executive officer to supporting their economic system of capitalism, their political system of democracy, and world peace, four 1945 IBM advertising campaigns are listed in this article.
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