Articles Written About Thomas J. Watson Sr.
Date Published: January 1, 2024
 Articles Written About Thomas J. Watson Sr.
When Peter E. Greulich started his research on Tom Watson and IBM in 2011, he saw this entry in the IBM Annual Reports: "The Watson Fund for Supplementing the IBM Retirement Plan." He, of course, thought it was money set aside for Tom Watson's retirement.
Supplementing the IBM Retirement Plan
Isn't that what most 21st Century Chief Executives would have done—set something aside for the future for themselves? ​The author learned later that this fund was set up by Tom Watson for the benefit of his employees.

​This is an amazing, forgotten slice of IBM history . . .
International Business Machines under the direction of Thomas J. Watson Sr., built homes for its employees through the Endicott Highlands Development Corporation from 1935–36 and from 1947–49.
Building Homes for Employees
The corporation was especially active after World War II in providing homes—at cost—for the corporation’s World War II veterans in the Endicott area, and it all started when George F. Johnson (George F.) of the Endicott Johnson Company threw down the gauntlet at a First Methodist Episcopal Church meeting.
The Revenue Act of 1934 required the U.S. Treasury to publish the names of corporate officials making more than $15,000 in salaries, commissions, and bonuses. Tom Watson "made the mistake" of earning $365,000 in one year. This made him the $1,000-Dollar-A-Day Man.
The $1,000-A-Day Chief Executive
This is more of the story behind what Tom Watson earned during the years 1929 through 1951 and what his employees and shareholders thought of him after seeing the report.

​The complete story is much more interesting than the headline of the day!
B. C. Forbes spoke of Tom Watson in very enlightening terms in September, 1936. He discussed how employees had shared in the company's success. He stated that the following statement from Mr. Watson should encourage other large employers to reduce hours and increase wages: 
The Value of the Individual Employee
"In the last two and one-half years the company has reduced working hours of its factory employees from 48 to 40. Since then we have increased the average pay for factory employees $3.49 a week."
"Probably no one other individual in the business world ever did more to further the cause of peace . . . Undoubtedly, no one was more disappointed when all efforts to avoid war failed. But Tom Watson didn't live up to the expectations of the totalitarians; he didn't throw his hands into the air and run away screaming. ​
Becoming Democracy's Man O' War
"He buckled down. He forgot about living and working in terms of peace. He offered his services and the facilities of his corporation to the government of the United States to be used in the manner they might serve best; and IBM is serving 100 per cent."
A Forbes interviewer once asked Tom Watson Sr. about his company's "Labor Relations." He replied, "At IBM we have Human Relations, not Labor Relations."

​While the Watsons were alive there never was a Human "Resources" organization either.
Human Relations not Human Resources
This is the story of IBM's "Human Relations Bureau."
Thomas J. Watson Sr. in his four decades at IBM faced a total of 10 economic downturns—more than any other IBM Chief Executive. Of these only four were less than twelve months long. Six were greater than or equal to 12 months in duration. Of these, one was the Great Depression.
A CEO Who Earned His Pay
It is unusual to find a corporate document that shows the wage detail that is in the chart at the beginning of this article. Watson Sr. during the Great Depression, increased employment, decreased the hours in a working week, and yet, increased the average annual earnings of his employees.
This is the origin of a story I had heard quite often at IBM. But I had never read the original story behind the legend as told by an individual who was present at the meeting when the motto "THINK" came into being. Lee Olwell, the future publisher of the New York Evening Journal was present. 
The Story of "THINK"
He describes it as a cold, rainy morning and just "another normal weekday meeting" of National Cash Register's (NCR) sales and advertising executives. ​There was a dearth of ideas, when the new general manager [Tom Watson] took charge.

Mr. Olwell relates the story of Thomas J. Watson's "THINK."
Under Tom Watson Sr.’s leadership, IBM weathered ten major economic declines, three major wars, and four of the six largest declines in U.S. stock market history. An investment in 100 shares of IBM stock in 1914 when Tom Watson took charge would have cost approximately $2,750.
Learning from Economic Crises
In 1956, at the time of his death it would have become 5000 shares with a market value of $2.33 million (at $465 per share) and paid over $200,000 in dividends. This is a compound annual rate of return of 17.64 percent.

Tom Watson's learning process is found in three of these economic crises.
Watson Sr. was probably the epitome of a "The Wild Duck." Fired from "The Cash" in 1913, he had to find a new job. He turned down many opportunities with several corporations and finally decided on the C-T-R Company in 1914.
Wild Ducks or Wild Geese?
This opportunity gave him the opportunity to run a business in his unique way. As he turned forty, Tom Watson Sr. flew over the C-T-R Company, a corporation composed of three dissimilar companies full of tame geese and called them to fly.

​And fly they did to become "The IBM."
"The Lengthening Shadow, since its publication in 1962, is one of the major sources of historical information for almost all works that follow it on Thomas J. Watson Sr. and the early IBM Corporation. This is a review of the biography by the editors at The Binghamton Press.
Reviews of the Day: The Lengthening Shadow
This author agrees with much of what they wrote and the points they make in the article. It is good but not great, and it leaves out too much about who Tom Watson was outside of "just" being a businessman.
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