1 00:00:00,280 --> 00:00:02,840 Speaker 1: Brought to you by the reinvented two thousand twelve camera. 2 00:00:03,160 --> 00:00:08,920 Speaker 1: It's ready. Are you get in touch with technology? With 3 00:00:09,039 --> 00:00:17,960 Speaker 1: tech Stuff from how stuff works dot com. Hello again, everyone, 4 00:00:18,000 --> 00:00:20,480 Speaker 1: Welcome to tech Stuff. My name is Chris Poulette and 5 00:00:20,480 --> 00:00:22,560 Speaker 1: I am an editor at how stuff works dot com. 6 00:00:22,560 --> 00:00:25,560 Speaker 1: Sitting across from me as always a senior writer, Jonathan Strickland. 7 00:00:25,640 --> 00:00:29,480 Speaker 1: They took the credit for your second Symphony Rewritten by machine, 8 00:00:29,720 --> 00:00:33,720 Speaker 1: a new technology. I feel like I've heard that somewhere before. Yeah, 9 00:00:33,840 --> 00:00:36,280 Speaker 1: probably in a recent podcast, because we quoted that song 10 00:00:36,360 --> 00:00:39,319 Speaker 1: not long ago. Yes, it buggles the mind. It does 11 00:00:39,360 --> 00:00:44,760 Speaker 1: buggle the man. Uh. Today though, we're talking about, uh, 12 00:00:44,760 --> 00:00:48,000 Speaker 1: something entirely well, not something entirely different, but something a 13 00:00:48,040 --> 00:00:52,360 Speaker 1: little uh, I don't know. We are gonna we're concentrating. 14 00:00:52,360 --> 00:00:56,040 Speaker 1: We're concentrated today on a particular company. And this is 15 00:00:56,080 --> 00:00:59,920 Speaker 1: going to be a multi part podcast because the come 16 00:01:00,000 --> 00:01:02,560 Speaker 1: and he has such a long history that we can't 17 00:01:02,680 --> 00:01:05,240 Speaker 1: sum it up in one episode. It's just it's too 18 00:01:05,319 --> 00:01:08,120 Speaker 1: much information, um, and it would just mean that if 19 00:01:08,160 --> 00:01:10,680 Speaker 1: we were to try and push it all into thirty minutes, 20 00:01:10,720 --> 00:01:13,320 Speaker 1: you really wouldn't learn anything. Right. As a matter of fact, 21 00:01:13,400 --> 00:01:15,839 Speaker 1: we had we had a request for this at one point, 22 00:01:15,840 --> 00:01:17,600 Speaker 1: I believe, Yeah, I think so. We've had a few 23 00:01:17,600 --> 00:01:21,040 Speaker 1: people ask us about this. I don't have any specifics 24 00:01:21,080 --> 00:01:23,360 Speaker 1: to point to, because we've received quite a few over 25 00:01:23,400 --> 00:01:26,399 Speaker 1: the history of our podcast. So we are going to 26 00:01:26,480 --> 00:01:32,680 Speaker 1: talk today about IBM. Yes, Big Blue International Business Machines. Yes, 27 00:01:32,720 --> 00:01:36,319 Speaker 1: and it's it's got an incredibly long history. Let me 28 00:01:36,400 --> 00:01:40,160 Speaker 1: just ask you, Chris, just curious just when when you 29 00:01:40,200 --> 00:01:44,520 Speaker 1: hear the the letters IBM, what's the first thing you 30 00:01:44,560 --> 00:01:51,440 Speaker 1: think of? Um, Well, I probably think of the current computers, 31 00:01:51,960 --> 00:01:55,920 Speaker 1: mainly because well, just to be honest, um, those of 32 00:01:56,000 --> 00:01:58,880 Speaker 1: us in the editorial department at how stuff Works dot com, 33 00:01:59,120 --> 00:02:02,840 Speaker 1: a lot of us still have IBM laptops, which are 34 00:02:02,880 --> 00:02:06,480 Speaker 1: the machines that they gave us. And specifically, which is 35 00:02:06,520 --> 00:02:10,800 Speaker 1: kind of funny because this actually comes after, uh, the 36 00:02:10,880 --> 00:02:14,720 Speaker 1: company made an agreement with the Chinese computer manufacturer Lenovo, 37 00:02:15,200 --> 00:02:18,639 Speaker 1: so their IBM branded but they're actually Lenovo machines. But yeah, 38 00:02:18,680 --> 00:02:21,280 Speaker 1: I mean, that's probably just because it's there every day. 39 00:02:21,280 --> 00:02:23,600 Speaker 1: I think of that, but I also think of, um 40 00:02:23,760 --> 00:02:27,200 Speaker 1: a number of things, main frames. I think of the 41 00:02:27,240 --> 00:02:30,200 Speaker 1: IBM S electric typewriter that I can't wait to talk 42 00:02:30,240 --> 00:02:34,640 Speaker 1: about that. Um So, yeah, I mean, for me, it's 43 00:02:34,960 --> 00:02:38,280 Speaker 1: the first thing I think of, is, uh, the IBM 44 00:02:38,320 --> 00:02:41,000 Speaker 1: two eighties six that my family had when I was 45 00:02:41,040 --> 00:02:43,680 Speaker 1: a kid. We started off with other computers, which I've 46 00:02:43,680 --> 00:02:45,920 Speaker 1: talked about in the past, but the computer that my 47 00:02:46,040 --> 00:02:49,600 Speaker 1: dad got that ended up being the workhorse was an 48 00:02:49,600 --> 00:02:52,400 Speaker 1: IBM two eighties six. We did eventually upgrade to a 49 00:02:52,440 --> 00:02:54,800 Speaker 1: three eight six and for eighty six further down the line, 50 00:02:54,840 --> 00:02:57,080 Speaker 1: but that two eight six kind of was what I 51 00:02:57,120 --> 00:03:00,560 Speaker 1: cut my teeth on once I got on the Apple 52 00:03:00,600 --> 00:03:02,600 Speaker 1: two e No, no, no, no, you're not supposed to 53 00:03:02,680 --> 00:03:04,920 Speaker 1: chew on them. Well, I realized that, But I was 54 00:03:04,960 --> 00:03:09,760 Speaker 1: a late bloomer anyway. Where the personal computer age is 55 00:03:10,320 --> 00:03:13,799 Speaker 1: very late in IBM's history because the company is very, 56 00:03:13,919 --> 00:03:17,360 Speaker 1: very old. Yeah, it sort of depends on whom you 57 00:03:17,480 --> 00:03:22,440 Speaker 1: ask how old it is, because IBM actually sort of 58 00:03:23,240 --> 00:03:26,040 Speaker 1: gives their their age tracks or age back a little 59 00:03:26,080 --> 00:03:29,240 Speaker 1: differently than other people might write. UM. And I found 60 00:03:29,240 --> 00:03:31,400 Speaker 1: that out. Actually checked out a book from the library 61 00:03:31,440 --> 00:03:34,640 Speaker 1: called Building IBM, Shaping an Industry and its Technology by 62 00:03:34,639 --> 00:03:40,480 Speaker 1: Emerson W. Pu Um, and he actually tracks uh, the 63 00:03:40,600 --> 00:03:44,760 Speaker 1: founding of IBM past where IBM does. He goes back 64 00:03:44,800 --> 00:03:49,000 Speaker 1: to an inventor named Herman Hollowrath. Yes, yes, Herman Hollowrath. 65 00:03:49,080 --> 00:03:52,520 Speaker 1: He created a tabulating machine, didn't he. Yes, he did. Um. 66 00:03:52,560 --> 00:03:55,720 Speaker 1: He actually got his his first patent application in on 67 00:03:55,880 --> 00:03:59,600 Speaker 1: in September four. That's not that when he started the company, 68 00:03:59,640 --> 00:04:02,000 Speaker 1: but that's when he started working on tabulating machines. Now 69 00:04:02,520 --> 00:04:06,000 Speaker 1: there are other people who were doing other related work too, 70 00:04:06,040 --> 00:04:12,920 Speaker 1: because IBM actually was founded by the combination of three companies. Yeah, 71 00:04:13,120 --> 00:04:17,040 Speaker 1: technically kind of a fourth company. Uh. The three companies 72 00:04:17,320 --> 00:04:21,680 Speaker 1: specifically were, UM, let's see, it was the the Tabulating 73 00:04:21,720 --> 00:04:26,279 Speaker 1: Machine Company, which was incorporated in eighteen ninety six, So 74 00:04:26,320 --> 00:04:29,200 Speaker 1: you've got that one. You've got the Computing Scale Company, 75 00:04:29,240 --> 00:04:32,960 Speaker 1: which was incorporated in eighteen nine one, and the International 76 00:04:33,040 --> 00:04:37,280 Speaker 1: Time Recording Company organized in nineteen hundred. And then there 77 00:04:37,360 --> 00:04:40,719 Speaker 1: was also the Bundy Manufacturing Company, which was incorporated in 78 00:04:40,760 --> 00:04:43,599 Speaker 1: eighteen eighty nine. Now a lot of the Bundy UH 79 00:04:43,760 --> 00:04:48,080 Speaker 1: properties had been incorporated into International Time Recording Company already, 80 00:04:48,160 --> 00:04:50,799 Speaker 1: so you're already talking about companies have been undergoing mergers 81 00:04:50,800 --> 00:04:54,640 Speaker 1: and acquisitions. Um. You had people like Julius E. Petrot 82 00:04:54,760 --> 00:04:57,440 Speaker 1: who in five security patent for a device that he 83 00:04:57,520 --> 00:05:00,880 Speaker 1: called a computing scale. That was what created the foundation 84 00:05:00,920 --> 00:05:04,719 Speaker 1: for the Computing Scale company. UH. You had Herman Hollerwrath 85 00:05:04,760 --> 00:05:08,240 Speaker 1: who had the tabulation and punch card machines that he created. 86 00:05:09,120 --> 00:05:11,560 Speaker 1: William L. Bundy, who was of course the founder of 87 00:05:11,560 --> 00:05:14,880 Speaker 1: the Bundy Manufacturing Company, came up with a time recording device. 88 00:05:15,240 --> 00:05:17,800 Speaker 1: He was actually a jeweler, and this guy came up 89 00:05:17,800 --> 00:05:20,200 Speaker 1: with a time recording device that allowed employees to track 90 00:05:20,279 --> 00:05:22,960 Speaker 1: their time based upon using special keys. That would put 91 00:05:22,960 --> 00:05:25,800 Speaker 1: a special key into this machine. Turned the key, it 92 00:05:25,839 --> 00:05:29,040 Speaker 1: would stamp the time that they clocked in, and then 93 00:05:29,080 --> 00:05:30,320 Speaker 1: they would turn the key. At the end of the day, 94 00:05:30,320 --> 00:05:32,240 Speaker 1: it would stamp the time they clocked out, and it 95 00:05:32,320 --> 00:05:35,120 Speaker 1: helped keep track of how many hours they worked. Then 96 00:05:35,120 --> 00:05:38,520 Speaker 1: you also had Dr Alexander day d e Y and 97 00:05:38,560 --> 00:05:41,640 Speaker 1: he created a similar time time keeping device, but it 98 00:05:41,640 --> 00:05:44,120 Speaker 1: didn't use keys. Instead, you put the names of the 99 00:05:44,160 --> 00:05:47,400 Speaker 1: employees on this machine and there was a mechanical pointer. 100 00:05:47,880 --> 00:05:50,479 Speaker 1: You had aimed the pointer at the employee's name. You 101 00:05:50,520 --> 00:05:52,240 Speaker 1: put a punch card in, push a button and it 102 00:05:52,240 --> 00:05:56,680 Speaker 1: would then stamp the employee's sheet which was inside the machine. UH. 103 00:05:56,720 --> 00:05:58,840 Speaker 1: With the time that they clocked in and clocked out. 104 00:05:59,120 --> 00:06:00,960 Speaker 1: So you had all these differ in companies. And remember 105 00:06:01,000 --> 00:06:03,320 Speaker 1: this is this is the age where we're really starting 106 00:06:03,320 --> 00:06:08,080 Speaker 1: to get into mechanical devices. So most of these devices 107 00:06:08,120 --> 00:06:11,440 Speaker 1: are mechanical in nature. There are actual physical gears and 108 00:06:11,480 --> 00:06:15,040 Speaker 1: pistons things like that that are making stuff happen inside 109 00:06:15,040 --> 00:06:19,080 Speaker 1: these machines. But it's not it's I'm sorry, no, go ahead, 110 00:06:19,240 --> 00:06:21,400 Speaker 1: I was gonna say it's it's actually, in a way, 111 00:06:21,800 --> 00:06:27,680 Speaker 1: not any of these guys who created IBM. No, it 112 00:06:27,760 --> 00:06:32,200 Speaker 1: took someone from outside this group to really form it together. 113 00:06:32,680 --> 00:06:34,680 Speaker 1: Which the fun and the funny part is we've got 114 00:06:34,760 --> 00:06:37,880 Speaker 1: all these inventors, but we're really talking about, or at 115 00:06:37,920 --> 00:06:42,440 Speaker 1: least I am talking about a businessman, yes, who saw 116 00:06:42,480 --> 00:06:47,200 Speaker 1: an opportunity to combine the companies and make some money by, 117 00:06:47,279 --> 00:06:50,520 Speaker 1: you know, making a building a merger between them. And 118 00:06:50,600 --> 00:06:53,320 Speaker 1: his name was Charles R. Flint. Yes, So here we 119 00:06:53,400 --> 00:06:56,760 Speaker 1: got a guy who looks at these companies, these individual 120 00:06:56,760 --> 00:07:00,120 Speaker 1: companies that are all making various kinds of mechanical devices, 121 00:07:00,640 --> 00:07:03,359 Speaker 1: and he says, hey, hang on a second, we could 122 00:07:03,360 --> 00:07:06,880 Speaker 1: combine these because a lot of these are are creating 123 00:07:06,920 --> 00:07:11,480 Speaker 1: devices specifically geared toward businesses. And if we were to 124 00:07:11,480 --> 00:07:15,480 Speaker 1: combine these, we could combine the manufacturing power and the 125 00:07:15,520 --> 00:07:18,600 Speaker 1: business power of these and and market it toward businesses. 126 00:07:18,640 --> 00:07:22,160 Speaker 1: We could create an enormous corporation. Now, I just have 127 00:07:22,280 --> 00:07:24,320 Speaker 1: to convince the guys that this is a good idea. 128 00:07:24,480 --> 00:07:26,360 Speaker 1: So he starts going to all these different companies and 129 00:07:26,400 --> 00:07:32,120 Speaker 1: he submits merger proposals, and eventually the companies agreed to this, 130 00:07:32,200 --> 00:07:37,120 Speaker 1: and they formed the Computing Tabulating Recording Corporation or CTR 131 00:07:37,280 --> 00:07:42,640 Speaker 1: on June six, nineteen eleven. I gotta say, these guys 132 00:07:42,720 --> 00:07:47,200 Speaker 1: have a flare for an innovative name. Yes, the Computing 133 00:07:47,480 --> 00:07:50,800 Speaker 1: Tabulating Recording Corporation. It was called computing because of the 134 00:07:50,800 --> 00:07:53,200 Speaker 1: computer scale we were talking about, which was not a 135 00:07:53,240 --> 00:07:57,360 Speaker 1: computer computer. It was a scale that could very accurately 136 00:07:57,480 --> 00:08:01,880 Speaker 1: measure weights computing scale. Yes. And then the tabulating being 137 00:08:01,880 --> 00:08:04,600 Speaker 1: the tabulating from Holly Erath, and the recording being the 138 00:08:04,640 --> 00:08:07,480 Speaker 1: time recording devices that we talked about earlier. Yes, pews 139 00:08:07,480 --> 00:08:09,880 Speaker 1: Book actually said that the scale that they had come 140 00:08:09,960 --> 00:08:13,560 Speaker 1: up with would give you the information up front, so 141 00:08:13,600 --> 00:08:15,320 Speaker 1: you didn't really have to do as much work with it, 142 00:08:15,360 --> 00:08:18,440 Speaker 1: so it would actually do the calculating for you will 143 00:08:18,440 --> 00:08:20,160 Speaker 1: give you an idea of what was going on, which was, 144 00:08:20,320 --> 00:08:22,640 Speaker 1: you know at the time, was was pretty innovative. Yes, 145 00:08:23,040 --> 00:08:26,800 Speaker 1: so we've got this major corporation forming in nineteen eleven. 146 00:08:26,880 --> 00:08:30,960 Speaker 1: But here's a problem. Who heads up this new corporation. Now, 147 00:08:31,600 --> 00:08:35,719 Speaker 1: Flint was pretty savvy, as was the board of directors 148 00:08:35,920 --> 00:08:39,440 Speaker 1: for CTR. They knew that they could not necessarily just 149 00:08:39,559 --> 00:08:42,599 Speaker 1: hire or promote someone from within one of those companies 150 00:08:42,800 --> 00:08:45,360 Speaker 1: to be the head of the new corporation, because if 151 00:08:45,400 --> 00:08:48,880 Speaker 1: they did, there's the danger that that person would favor 152 00:08:49,000 --> 00:08:51,760 Speaker 1: one division over all the others. So if you were 153 00:08:51,800 --> 00:08:55,240 Speaker 1: to promote someone up from the tabulating machine company, for example, 154 00:08:55,600 --> 00:08:59,679 Speaker 1: that person might concentrate on that division of the new 155 00:09:00,040 --> 00:09:04,080 Speaker 1: mega company and ignore the others, and then your business 156 00:09:04,120 --> 00:09:07,720 Speaker 1: venture fails. So they had to find someone from outside 157 00:09:07,840 --> 00:09:11,480 Speaker 1: this this merger to head up the new company. I 158 00:09:11,520 --> 00:09:14,160 Speaker 1: know who you're gonna say, but I I would also 159 00:09:14,200 --> 00:09:15,880 Speaker 1: like to add before we go on to this person, 160 00:09:16,640 --> 00:09:21,520 Speaker 1: um that apparently, from what I understand, not everyone was 161 00:09:22,080 --> 00:09:25,600 Speaker 1: thrilled with the way the merger was working out. Apparently 162 00:09:25,640 --> 00:09:29,240 Speaker 1: hollerth Uh and Flint didn't necessarily get along all that well, 163 00:09:30,080 --> 00:09:32,439 Speaker 1: as a matter of fact, apparently Hollowrath was you know, 164 00:09:32,520 --> 00:09:37,400 Speaker 1: one of the rare business people where he was very egalitarian. Um. 165 00:09:37,600 --> 00:09:40,880 Speaker 1: He when he sold you know, the interest in his 166 00:09:40,920 --> 00:09:44,800 Speaker 1: company to Flint, he insisted that everyone get a fair 167 00:09:44,840 --> 00:09:48,360 Speaker 1: share of the money and apparently was very well liked 168 00:09:48,440 --> 00:09:52,240 Speaker 1: within his own company before uh he did that. And apparently, 169 00:09:52,960 --> 00:09:56,040 Speaker 1: um And I imagine that that would be something to 170 00:09:56,040 --> 00:09:59,400 Speaker 1: to take into account when you are trying to make 171 00:09:59,400 --> 00:10:01,679 Speaker 1: this decision on who you want to run the company, 172 00:10:01,720 --> 00:10:06,800 Speaker 1: because you know, if you've got people who are already 173 00:10:07,200 --> 00:10:11,040 Speaker 1: having you know, personality problems personality conflicts with the people 174 00:10:11,080 --> 00:10:13,240 Speaker 1: at the top, then you're you're certainly going to be 175 00:10:13,320 --> 00:10:16,160 Speaker 1: aware of that and and and try to avoid that 176 00:10:16,240 --> 00:10:19,120 Speaker 1: conflict because otherwise you could scuttle the company. But I 177 00:10:19,120 --> 00:10:22,160 Speaker 1: think you're talking about the person you wanted to mention 178 00:10:22,160 --> 00:10:26,640 Speaker 1: next with someone who was brought in as a general manager. Yes, yes, 179 00:10:26,720 --> 00:10:31,800 Speaker 1: from from the National Cash Register Corporation and CR. Yeah. 180 00:10:32,000 --> 00:10:36,400 Speaker 1: That person was Thomas J. Watson, Sr. And he was 181 00:10:36,600 --> 00:10:40,640 Speaker 1: hired on May fourth, nineteen fourteen, And that is the 182 00:10:40,720 --> 00:10:45,960 Speaker 1: date that IBM uses as its founding. It considers Watson's 183 00:10:46,080 --> 00:10:49,000 Speaker 1: arrival at at the company and remember it's not called 184 00:10:49,000 --> 00:10:52,880 Speaker 1: IBM yet, it's still CTR, but it considers his arrival 185 00:10:52,960 --> 00:10:55,320 Speaker 1: to be the birth of IBM. And part of that 186 00:10:55,360 --> 00:10:59,040 Speaker 1: reason is because Watson really instilled in the company an 187 00:10:59,240 --> 00:11:05,480 Speaker 1: entire array of marketing UM principles and philosophies that he 188 00:11:05,480 --> 00:11:09,080 Speaker 1: he had developed over the years, and that became IBM 189 00:11:09,120 --> 00:11:11,760 Speaker 1: sort of foundation for the way that they do business. Now, 190 00:11:12,000 --> 00:11:14,800 Speaker 1: let's give a little background on Watson. Watson was a 191 00:11:14,840 --> 00:11:16,800 Speaker 1: bit of a character too. In fact, he had he 192 00:11:16,840 --> 00:11:21,400 Speaker 1: was not exactly spotless in his history. UM Watson when 193 00:11:21,400 --> 00:11:24,120 Speaker 1: he graduated college, originally he wanted to be a teacher, 194 00:11:24,360 --> 00:11:27,640 Speaker 1: but reportedly that job lasted all of one day before 195 00:11:27,640 --> 00:11:31,040 Speaker 1: he quit. He then concentrated on becoming a salesman, and 196 00:11:31,040 --> 00:11:34,319 Speaker 1: in fact was a traveling salesman selling. As I recall 197 00:11:34,440 --> 00:11:38,520 Speaker 1: pianos and organs to people in rural areas, it made 198 00:11:38,559 --> 00:11:41,120 Speaker 1: me think of the music man. It was. Essentially Watson 199 00:11:41,240 --> 00:11:45,560 Speaker 1: was was Professor Harold Hill. He was actually selling stuff 200 00:11:45,559 --> 00:11:49,160 Speaker 1: instead of trying trying to and then getting out well 201 00:11:49,200 --> 00:11:51,600 Speaker 1: technically Hill was selling stuff too, He just was making 202 00:11:51,640 --> 00:11:55,040 Speaker 1: promises that people could use it when he didn't intend 203 00:11:55,120 --> 00:11:56,679 Speaker 1: to do it. He wanted to skip town as soon 204 00:11:56,679 --> 00:12:00,360 Speaker 1: as the stuff came in. Spoiler alert for ayone who 205 00:12:00,360 --> 00:12:02,440 Speaker 1: has not seen a musing that I almost got you 206 00:12:02,480 --> 00:12:06,080 Speaker 1: to split water too. That was great. So Watson then 207 00:12:06,120 --> 00:12:08,560 Speaker 1: went on to UH. He started he opened up a 208 00:12:08,559 --> 00:12:11,240 Speaker 1: butcher's shop. He ended up eventually selling the butcher's shop, 209 00:12:11,320 --> 00:12:13,080 Speaker 1: but one thing he had to do was he had 210 00:12:13,120 --> 00:12:16,760 Speaker 1: an NCR cash register in that butcher's shop that was 211 00:12:16,760 --> 00:12:18,400 Speaker 1: not completely paid for, so he had to kind of 212 00:12:18,400 --> 00:12:21,080 Speaker 1: act as a liaison between the new owner of the 213 00:12:21,120 --> 00:12:24,400 Speaker 1: butcher shop and NCR to kind of settle these payments. 214 00:12:24,960 --> 00:12:28,000 Speaker 1: He started to bug the people at NCR for a job, 215 00:12:28,760 --> 00:12:31,640 Speaker 1: and eventually they broke down and and apprenticed him to 216 00:12:31,960 --> 00:12:35,680 Speaker 1: someone at NCR as a salesman, and over time Watson 217 00:12:35,800 --> 00:12:37,720 Speaker 1: was able to make a name for himself as a 218 00:12:37,760 --> 00:12:40,480 Speaker 1: salesman and later as a manager. He actually became known 219 00:12:40,960 --> 00:12:45,760 Speaker 1: for running competitors out of business in certain markets. He 220 00:12:45,760 --> 00:12:48,480 Speaker 1: would go into a market and find out ways to 221 00:12:48,480 --> 00:12:51,800 Speaker 1: to be able to UH to beat any competitor who 222 00:12:51,840 --> 00:12:55,440 Speaker 1: that was also selling a mechanical cash register machine. So, 223 00:12:55,559 --> 00:12:59,080 Speaker 1: for example, he would go into a market and undercut 224 00:12:59,320 --> 00:13:02,360 Speaker 1: all the compere editors and sell cash registers at a 225 00:13:02,400 --> 00:13:06,600 Speaker 1: loss just to bankrupt his uh, his competitors so that 226 00:13:06,640 --> 00:13:09,480 Speaker 1: he could have a monopoly on the market. This eventually 227 00:13:09,559 --> 00:13:15,760 Speaker 1: led to an antitrust lawsuit against him because he was monopolizing. Well, 228 00:13:16,480 --> 00:13:19,880 Speaker 1: the first trial ended with a guilty verdict and a 229 00:13:19,960 --> 00:13:23,920 Speaker 1: five thousand dollar fine and I think two years since 230 00:13:24,000 --> 00:13:25,960 Speaker 1: in jail something like that. Anyway, it was, it was 231 00:13:26,120 --> 00:13:28,520 Speaker 1: it was unusual for a jail sentence to go along 232 00:13:28,559 --> 00:13:32,800 Speaker 1: with this kind of a charge, but Watson ended up 233 00:13:32,840 --> 00:13:37,120 Speaker 1: getting one. He appealed that and during the appeals process, 234 00:13:37,160 --> 00:13:40,040 Speaker 1: the government decided he won the right to appeal. The 235 00:13:40,080 --> 00:13:42,400 Speaker 1: government decided that it was not worth the time and 236 00:13:42,440 --> 00:13:47,560 Speaker 1: money to pursue a second trial, so he the charges 237 00:13:47,600 --> 00:13:50,720 Speaker 1: were dismissed. But yeah, so Watson was he was kind 238 00:13:50,720 --> 00:13:54,880 Speaker 1: of a cutthroat businessman as well. So during his days 239 00:13:54,880 --> 00:13:57,240 Speaker 1: at NCR he did something that ended up being very 240 00:13:57,280 --> 00:14:01,120 Speaker 1: important to ibm s philosophy. It was in a meeting 241 00:14:01,160 --> 00:14:03,679 Speaker 1: in December in nineteen eleven. Do you know where I'm 242 00:14:03,679 --> 00:14:08,640 Speaker 1: going with this? All right? It's a motto that IBM uses. Yeah, 243 00:14:08,720 --> 00:14:11,480 Speaker 1: So there's Watson in this meeting with n c R 244 00:14:11,600 --> 00:14:14,679 Speaker 1: and he says, this is a quote. The trouble with 245 00:14:14,800 --> 00:14:17,480 Speaker 1: every one of us is that we don't think enough. 246 00:14:17,600 --> 00:14:19,960 Speaker 1: We don't get paid for working with our feet, we 247 00:14:20,000 --> 00:14:22,920 Speaker 1: get paid for working with our heads. Thought has been 248 00:14:22,960 --> 00:14:26,520 Speaker 1: the father of every advance since time began. I didn't 249 00:14:26,640 --> 00:14:30,240 Speaker 1: think has cost the world millions of dollars. And then 250 00:14:30,240 --> 00:14:33,360 Speaker 1: he wrote the word think in all capital letters in 251 00:14:33,400 --> 00:14:39,800 Speaker 1: blue crayon on an easel Blue Think Big Things for IBM, 252 00:14:39,920 --> 00:14:42,560 Speaker 1: as it turns out. Yeah, so it's kind of funny 253 00:14:42,560 --> 00:14:45,480 Speaker 1: that IBM can trace one of its central mottos to 254 00:14:45,720 --> 00:14:49,080 Speaker 1: another company because this was before Watson came over. So 255 00:14:49,120 --> 00:14:51,560 Speaker 1: then Watson does come over to the company and begins 256 00:14:51,600 --> 00:14:55,360 Speaker 1: to lead it. He joined in nineteen fourteen, and the 257 00:14:55,440 --> 00:14:57,600 Speaker 1: company really starts to take off. You know, You've got 258 00:14:57,640 --> 00:15:03,040 Speaker 1: all these different divisions that are concentrating on specific elements 259 00:15:03,080 --> 00:15:06,240 Speaker 1: of their business, and uh, they just start really cranking 260 00:15:06,240 --> 00:15:09,960 Speaker 1: out some interesting products, all for businesses, by the way, 261 00:15:10,160 --> 00:15:12,960 Speaker 1: right right, Well, let's put this, let's put it in perspective. 262 00:15:13,000 --> 00:15:18,440 Speaker 1: So in nineteen according to IBM, when Thomas J. Watson Sr. 263 00:15:18,520 --> 00:15:21,640 Speaker 1: Joined the company, it had one thousand, three hundred forty 264 00:15:21,720 --> 00:15:26,000 Speaker 1: six employees and nine million dollars in revenue. Um, the 265 00:15:26,080 --> 00:15:30,040 Speaker 1: gross income from sales, service and rentals was about four 266 00:15:30,080 --> 00:15:33,080 Speaker 1: million dollars. Uh. And as a matter of fact, one 267 00:15:33,160 --> 00:15:37,160 Speaker 1: hundred years of CTR stock UH would set you back 268 00:15:37,160 --> 00:15:39,760 Speaker 1: about three thousand dollars. Yes, so they would make four 269 00:15:39,800 --> 00:15:42,240 Speaker 1: million dollars in a year. But out of that their 270 00:15:42,280 --> 00:15:45,440 Speaker 1: earnings were around a million. Right, So so you make 271 00:15:45,480 --> 00:15:48,640 Speaker 1: four million and after costs you you ranke in a 272 00:15:48,680 --> 00:15:52,640 Speaker 1: million dollars. Um. Yeah, I said, Actually it said nine. 273 00:15:53,120 --> 00:15:55,440 Speaker 1: Well I'm looking at two different IBM documents. One is 274 00:15:55,680 --> 00:15:58,680 Speaker 1: nine million in revenues and the other says, uh, four 275 00:15:58,720 --> 00:16:01,160 Speaker 1: million from gross in come. Yeah, that's what I had, 276 00:16:01,200 --> 00:16:04,680 Speaker 1: the four million engrossing had so um. You know, yeah, 277 00:16:04,760 --> 00:16:06,840 Speaker 1: it sounds like a little today, keeping in mind that 278 00:16:06,920 --> 00:16:10,680 Speaker 1: it's that's quite substantial. Yeah, nine fourteen. Come on, And 279 00:16:10,880 --> 00:16:14,040 Speaker 1: if it sounds weird to say rentals, hollow if actually 280 00:16:14,040 --> 00:16:17,680 Speaker 1: when he did his tabulating machine, would actually rent the 281 00:16:17,680 --> 00:16:21,840 Speaker 1: equipment out. Um, So he did not sell people machines. 282 00:16:22,600 --> 00:16:25,120 Speaker 1: So at the time, you know this kind of equipment, uh, 283 00:16:25,200 --> 00:16:29,480 Speaker 1: the sophisticated mechanical computer equipment. Actually, he was one of 284 00:16:29,520 --> 00:16:34,240 Speaker 1: the first people to use electrical um tabulating devices. Yeah, 285 00:16:34,480 --> 00:16:37,840 Speaker 1: we're getting into the electro mechanical era here. So yeah, 286 00:16:37,840 --> 00:16:39,960 Speaker 1: but I mean you didn't you didn't buy that necessarily, 287 00:16:39,960 --> 00:16:42,440 Speaker 1: you would rent that from someone. And we're actually you 288 00:16:42,520 --> 00:16:45,000 Speaker 1: might wonder what these tabulating devices were used for. Well, 289 00:16:45,000 --> 00:16:46,840 Speaker 1: they were often I mean they were used to classify 290 00:16:46,920 --> 00:16:49,920 Speaker 1: information in a way that could be sorted and categorized 291 00:16:49,920 --> 00:16:53,000 Speaker 1: in various ways relatively quickly, you know, much more quickly 292 00:16:53,000 --> 00:16:55,520 Speaker 1: than humans could. In fact, it was originally used for 293 00:16:55,520 --> 00:16:58,400 Speaker 1: the Census. He worked for hollow Reth worked for the 294 00:16:58,440 --> 00:17:02,200 Speaker 1: Census in eighteen eight I believe, and he actually his 295 00:17:02,280 --> 00:17:04,400 Speaker 1: boss was saying, it would be really nice we could 296 00:17:04,400 --> 00:17:05,840 Speaker 1: come up with a machine to cut down on all 297 00:17:05,880 --> 00:17:07,360 Speaker 1: this work, because this is a real pain in the neck. 298 00:17:07,840 --> 00:17:10,520 Speaker 1: So we did. Yeah, and this this invention plays a 299 00:17:10,600 --> 00:17:13,000 Speaker 1: much darker role in a few years, and we'll touch 300 00:17:13,040 --> 00:17:15,760 Speaker 1: on that because it is an important element of IBM's history. 301 00:17:16,080 --> 00:17:18,040 Speaker 1: But I think that's why Pugh started with Hollywrith was 302 00:17:18,080 --> 00:17:21,879 Speaker 1: because that is the most computer alike of all the things, 303 00:17:22,000 --> 00:17:26,760 Speaker 1: of all the the original businesses that CTR was involved with. Yeah. So, 304 00:17:27,119 --> 00:17:30,480 Speaker 1: so just a couple of highlights in the early years 305 00:17:30,520 --> 00:17:35,239 Speaker 1: of Watson's uh um, what am I gonna call it? 306 00:17:35,280 --> 00:17:38,440 Speaker 1: Watson being the president general manager of of ctr U. 307 00:17:40,160 --> 00:17:44,280 Speaker 1: They have the company's implementation of electric synchronization for the 308 00:17:44,320 --> 00:17:49,240 Speaker 1: control and regulation of complete time and programming systems. Yep, 309 00:17:49,560 --> 00:17:52,640 Speaker 1: and that's that's true, um, now that you pointed out, 310 00:17:52,640 --> 00:17:56,840 Speaker 1: I mean, they introduced the first electric synchronized time clock 311 00:17:56,880 --> 00:18:00,520 Speaker 1: system UM, which again is very computer like, just a 312 00:18:00,800 --> 00:18:04,040 Speaker 1: component that's part of that. And I'd just like to 313 00:18:04,080 --> 00:18:07,920 Speaker 1: add one sort of foreshadowing date. A couple of years 314 00:18:07,960 --> 00:18:12,480 Speaker 1: before that, in nineteen seventeen, UH, CTR decided to enter Canada, 315 00:18:13,200 --> 00:18:15,560 Speaker 1: UH and decided instead of using CTR they would use 316 00:18:15,600 --> 00:18:19,240 Speaker 1: a different name. They decided to call themselves International Business Machines. Yeah, 317 00:18:19,280 --> 00:18:21,879 Speaker 1: so in nineteen seventeen and nineteen eighteen they registered that 318 00:18:22,000 --> 00:18:23,960 Speaker 1: name in New York, but did not use it at 319 00:18:23,960 --> 00:18:27,320 Speaker 1: that time. So uh yeah. And in nineteen twenty they 320 00:18:27,359 --> 00:18:32,480 Speaker 1: introduced the lock Autograph Recorder, which was the first complete 321 00:18:32,520 --> 00:18:37,680 Speaker 1: school time control system. They also launched the electric accounting machines, 322 00:18:37,720 --> 00:18:40,920 Speaker 1: so that's kind of a predecessor to the calculator. Ah. 323 00:18:41,520 --> 00:18:45,280 Speaker 1: And they acquired a company called the ticket O Graph 324 00:18:45,400 --> 00:18:48,120 Speaker 1: Company of Chicago in nineteen twenty one, and they also 325 00:18:48,160 --> 00:18:51,920 Speaker 1: started buying up more patents IBM to this day has 326 00:18:51,960 --> 00:18:56,080 Speaker 1: more than a thousand patents. They had more than a 327 00:18:56,119 --> 00:18:59,480 Speaker 1: thousand in the seventies, but yes, far more than a thousand, so, 328 00:18:59,560 --> 00:19:01,720 Speaker 1: and some of those were developed in house and some 329 00:19:01,760 --> 00:19:05,520 Speaker 1: of them they've purchased. So in those early years, we 330 00:19:05,560 --> 00:19:09,280 Speaker 1: get up to February fourteenth, Valentine's Day, nineteen twenty four. 331 00:19:09,800 --> 00:19:15,320 Speaker 1: Watson has an idea. Yes, he decides that this IBM 332 00:19:15,440 --> 00:19:17,760 Speaker 1: name that they're using in Canada as a good name, 333 00:19:18,000 --> 00:19:20,720 Speaker 1: and that it should it really reflects the business more 334 00:19:20,760 --> 00:19:25,320 Speaker 1: than CTR does. UM. The business at this point is international. 335 00:19:25,359 --> 00:19:29,080 Speaker 1: They have offices elsewhere besides the United States, and so 336 00:19:29,560 --> 00:19:32,520 Speaker 1: they think, well, we're gonna rebrand ourselves. We're gonna be 337 00:19:32,520 --> 00:19:36,640 Speaker 1: called International Business Machines or IBM UM. And by now, 338 00:19:36,960 --> 00:19:39,439 Speaker 1: so this is ten years after he's he's taken the reins. 339 00:19:39,960 --> 00:19:43,960 Speaker 1: The the gross income for the company is that remember 340 00:19:44,000 --> 00:19:46,760 Speaker 1: it was at four million before, it's at eleven million 341 00:19:46,840 --> 00:19:49,320 Speaker 1: now with the net earnings of around two million. And 342 00:19:49,680 --> 00:19:52,600 Speaker 1: there there's more than three thousand employees, so they've essentially 343 00:19:52,640 --> 00:19:55,600 Speaker 1: doubled the size of the number of employees that that 344 00:19:55,600 --> 00:20:00,119 Speaker 1: that they hired. Yes, now, UM, going back to for 345 00:20:00,160 --> 00:20:02,960 Speaker 1: a second, to holler his his tabu lighting machines used 346 00:20:02,960 --> 00:20:05,960 Speaker 1: punched cards, which we've talked about in the past. Um. 347 00:20:06,240 --> 00:20:09,760 Speaker 1: In nine they introduced the first electric key punch. Now 348 00:20:10,119 --> 00:20:12,560 Speaker 1: to record information on these punch cards, you have to 349 00:20:12,560 --> 00:20:17,600 Speaker 1: have something that pops out. The little chats um actually 350 00:20:17,760 --> 00:20:20,600 Speaker 1: just punches a hole in the right spot. Right. Originally 351 00:20:20,640 --> 00:20:22,920 Speaker 1: they did use a circular punch like you would see 352 00:20:22,920 --> 00:20:25,680 Speaker 1: in you know, a traditional hole punch. UM, but they 353 00:20:25,680 --> 00:20:29,320 Speaker 1: were they were becoming more sophisticated, adding this functionality along 354 00:20:29,359 --> 00:20:33,680 Speaker 1: as they went. UM and Uh. The punched card could 355 00:20:33,680 --> 00:20:37,760 Speaker 1: now hold as much as eighty columns worth of information UM, 356 00:20:37,760 --> 00:20:42,120 Speaker 1: which also helped out significantly with what they could do. UM. 357 00:20:42,160 --> 00:20:43,760 Speaker 1: And then of course we're getting close to the Great 358 00:20:43,760 --> 00:20:47,359 Speaker 1: Depression in ninety. Yeah, here's an interesting thing. So in 359 00:20:47,440 --> 00:20:50,359 Speaker 1: nineteen thirty you get the Great Depression, but IBM still 360 00:20:50,440 --> 00:20:53,480 Speaker 1: does pretty well. Right, they're not they're not hurting as 361 00:20:53,480 --> 00:20:56,000 Speaker 1: badly as other companies. In fact, at that point their 362 00:20:56,040 --> 00:20:59,720 Speaker 1: gross income was nineteen million dollars and their net earnings 363 00:20:59,800 --> 00:21:03,760 Speaker 1: seven million dollars with sixty three hundred employees. So IBM 364 00:21:03,840 --> 00:21:06,280 Speaker 1: is actually employing people at the same time the other 365 00:21:06,440 --> 00:21:09,440 Speaker 1: folks are finding themselves out of work. So IBM was 366 00:21:09,480 --> 00:21:11,919 Speaker 1: actually doing quite well well. Of course, you know at 367 00:21:11,960 --> 00:21:15,280 Speaker 1: that time people were laying people off because they couldn't 368 00:21:15,280 --> 00:21:18,760 Speaker 1: afford we're going out of business entirely. Um. Meanwhile, this 369 00:21:18,800 --> 00:21:21,480 Speaker 1: would these machines would help people streamline their business efforts. 370 00:21:21,520 --> 00:21:24,399 Speaker 1: They wouldn't have to hire as many humans to do 371 00:21:24,440 --> 00:21:27,240 Speaker 1: the works well, and I mean they kept on developing 372 00:21:27,240 --> 00:21:30,200 Speaker 1: other things. They developed a public address and signaling system 373 00:21:30,240 --> 00:21:36,080 Speaker 1: for schools. They called it the schoolmaster's joke. That just sounds. 374 00:21:36,119 --> 00:21:39,320 Speaker 1: That just sounds so I don't know, sinister anyway. So 375 00:21:40,880 --> 00:21:44,080 Speaker 1: now we're two decades out from when Watson took control. 376 00:21:44,200 --> 00:21:47,320 Speaker 1: They remember they're grossing around nineteen million and earning around 377 00:21:47,359 --> 00:21:49,600 Speaker 1: seven millions. That's a much more than the four million 378 00:21:49,600 --> 00:21:52,600 Speaker 1: and one million from two decades before. And they're employing 379 00:21:52,640 --> 00:21:57,560 Speaker 1: seven thousand, six hundred thirteen people. So yeah, the company, 380 00:21:57,680 --> 00:22:00,639 Speaker 1: the company is really doing well and the development is 381 00:22:00,640 --> 00:22:03,439 Speaker 1: really just gonna explode over the next few decades, like 382 00:22:03,480 --> 00:22:06,000 Speaker 1: to the point where it's it's almost impossible to believe 383 00:22:06,600 --> 00:22:10,720 Speaker 1: how big it got. I had my first snicker moment 384 00:22:11,320 --> 00:22:17,439 Speaker 1: U because it apparently they decided to divest themselves of 385 00:22:17,520 --> 00:22:23,040 Speaker 1: the Scale division. So they sold it to Hobart, which 386 00:22:23,560 --> 00:22:25,639 Speaker 1: if you if you're thinking back and going, I know, 387 00:22:25,720 --> 00:22:28,840 Speaker 1: I know that name, it's because they're still in business 388 00:22:29,680 --> 00:22:32,879 Speaker 1: and it's apparently from from want to understand, Mr Watson 389 00:22:32,920 --> 00:22:36,360 Speaker 1: was a little concerned because, as it turns out, immediately 390 00:22:36,880 --> 00:22:39,680 Speaker 1: that business took off after the after they got rid 391 00:22:39,680 --> 00:22:43,800 Speaker 1: of it. So well there you go at. They can't 392 00:22:43,800 --> 00:22:46,800 Speaker 1: always do everything well all the time, right, well, you know, 393 00:22:47,560 --> 00:22:49,400 Speaker 1: they made it a decision based on what they thought 394 00:22:49,440 --> 00:22:56,120 Speaker 1: would happen, and in five IBM introduced the International Proof Machine, 395 00:22:56,440 --> 00:23:00,439 Speaker 1: which synchronized twenty four adding machines together, and it was 396 00:23:00,520 --> 00:23:04,159 Speaker 1: meant to process checks in banks as meant as a 397 00:23:04,200 --> 00:23:07,680 Speaker 1: processing system behind the scenes, but eventually people found other 398 00:23:07,800 --> 00:23:09,840 Speaker 1: uses for it and you could think of it as 399 00:23:09,840 --> 00:23:13,600 Speaker 1: a precursor to the computer. Um it could only do. 400 00:23:14,359 --> 00:23:16,480 Speaker 1: It had a limited number of operations that could do 401 00:23:16,760 --> 00:23:19,320 Speaker 1: and uh, it wasn't a true computer in the sense 402 00:23:19,359 --> 00:23:22,600 Speaker 1: that we think of today, but it showed that by 403 00:23:22,720 --> 00:23:26,920 Speaker 1: you know, IBM was thinking, how can we create more 404 00:23:26,960 --> 00:23:31,120 Speaker 1: sophisticated devices without necessarily making bigger ones. In this case, 405 00:23:31,119 --> 00:23:35,359 Speaker 1: it was linking lots of lots of different adding machines together. Now, 406 00:23:35,720 --> 00:23:38,320 Speaker 1: keeping think about what we're talking about here. As we're 407 00:23:38,359 --> 00:23:41,119 Speaker 1: going on through this timeline, IBM is finding ways to 408 00:23:41,240 --> 00:23:45,680 Speaker 1: make crunching numbers easier. They're they're finding new ways to 409 00:23:45,680 --> 00:23:48,040 Speaker 1: to compress the number of items you could put in 410 00:23:48,040 --> 00:23:51,439 Speaker 1: a punch card. They're finding new ways to link machines 411 00:23:51,480 --> 00:23:55,639 Speaker 1: together to increase processing power with these machines. And no, 412 00:23:55,760 --> 00:23:58,040 Speaker 1: we don't think of that in terms of again, the 413 00:23:58,080 --> 00:24:02,359 Speaker 1: IBM laptops that we're using as we record the podcast 414 00:24:02,400 --> 00:24:05,640 Speaker 1: obviously have far more processing power than that. But gradually, 415 00:24:05,680 --> 00:24:08,160 Speaker 1: over time they're innovating and coming up with new ideas. 416 00:24:09,160 --> 00:24:11,160 Speaker 1: In thirty five they also came up with the first 417 00:24:11,280 --> 00:24:17,120 Speaker 1: successful electric typewriter. Yep, yep. So now we'll get more 418 00:24:17,160 --> 00:24:20,119 Speaker 1: into the electric typewriters. A little later in thirty seven 419 00:24:20,320 --> 00:24:24,439 Speaker 1: they introduced a test scoring machine. Um, so this is 420 00:24:24,520 --> 00:24:27,080 Speaker 1: kind of all you folks out there get to play 421 00:24:27,080 --> 00:24:30,280 Speaker 1: those take those standardized tests. This is sort of the 422 00:24:30,320 --> 00:24:33,640 Speaker 1: grandfather to those machines, the Scantron type stuff. But this 423 00:24:33,720 --> 00:24:35,840 Speaker 1: is this was a little earlier than that, but still 424 00:24:35,920 --> 00:24:40,760 Speaker 1: same principle. They came out with the pencil marks sensing reproducer, 425 00:24:41,040 --> 00:24:45,080 Speaker 1: which reproducer. Uh yeah, of course everyone's taking these tests 426 00:24:45,080 --> 00:24:49,080 Speaker 1: on computers now. So in between thirty seven and forty 427 00:24:49,119 --> 00:24:51,760 Speaker 1: there's a little event, big event. We have a little 428 00:24:51,760 --> 00:24:55,280 Speaker 1: big event. Yeah. So world War two here's where we 429 00:24:55,320 --> 00:24:58,760 Speaker 1: got to get in some problematic stuff. There was an 430 00:24:58,760 --> 00:25:03,520 Speaker 1: IBM subsidiary company called de Homag Deutsch hollerth Machine and 431 00:25:03,680 --> 00:25:07,000 Speaker 1: Gazelle Shuft and that was the that was the full name. 432 00:25:07,600 --> 00:25:11,200 Speaker 1: So yeah, just just as an aside um, Mr hollow 433 00:25:11,200 --> 00:25:14,600 Speaker 1: Earth had been working on building the business internationally even 434 00:25:14,680 --> 00:25:18,639 Speaker 1: before he sold tod CTR, so you know they he 435 00:25:18,720 --> 00:25:21,680 Speaker 1: had businesses around the world already. Now they were small, 436 00:25:22,240 --> 00:25:25,240 Speaker 1: but they were divisions of his company, and yes, this 437 00:25:25,320 --> 00:25:26,840 Speaker 1: is one of them. So yeah, this was kind of 438 00:25:26,840 --> 00:25:31,199 Speaker 1: an IBM subsidiary that Hollerwath actually ended up selling of 439 00:25:31,240 --> 00:25:34,280 Speaker 1: the company back to IBM because the company was in 440 00:25:34,320 --> 00:25:40,040 Speaker 1: some financial problems. World War One bankrupted Germany, right, I 441 00:25:40,040 --> 00:25:43,840 Speaker 1: mean Germany was in dire economic straits after World War 442 00:25:43,880 --> 00:25:47,240 Speaker 1: One and this this company was affected by that. So 443 00:25:48,200 --> 00:25:50,440 Speaker 1: part of in order to stay solvent, they sold ninety 444 00:25:50,440 --> 00:25:53,200 Speaker 1: pc of the company back to IBM. So IBM owns 445 00:25:53,240 --> 00:25:56,439 Speaker 1: this company. And here's where things get really dark and murky. 446 00:25:56,720 --> 00:25:59,320 Speaker 1: There's an author and researcher by the name of Edwin 447 00:25:59,400 --> 00:26:02,200 Speaker 1: Black who wrote a full book about IBM and its 448 00:26:02,280 --> 00:26:06,639 Speaker 1: role possibly connected to the Holocaust, and now Black alleges 449 00:26:07,119 --> 00:26:11,560 Speaker 1: that IBM was not just um uh aware of what 450 00:26:11,600 --> 00:26:15,720 Speaker 1: was happening, but somewhat complicit in what was happening. Ibm 451 00:26:15,840 --> 00:26:20,359 Speaker 1: UH They they obviously do not agree with that assessment. 452 00:26:20,960 --> 00:26:25,040 Speaker 1: And in fact, the more you know about Watson, I mean, 453 00:26:25,080 --> 00:26:28,520 Speaker 1: I don't know. I didn't know these people clearly, but 454 00:26:28,560 --> 00:26:31,280 Speaker 1: the more I learned about Watson, the less I was 455 00:26:31,440 --> 00:26:33,600 Speaker 1: convinced that he was the sort of person who would 456 00:26:33,720 --> 00:26:37,280 Speaker 1: actively be complicit in this. But here's what happened. Dio 457 00:26:37,400 --> 00:26:42,640 Speaker 1: magg made this tabulation uh products and Hitler was very 458 00:26:42,720 --> 00:26:47,240 Speaker 1: much interested in getting to know exactly how many Jews 459 00:26:47,320 --> 00:26:50,160 Speaker 1: were in Germany at the time, and so they were 460 00:26:50,240 --> 00:26:54,800 Speaker 1: using this tabulating process to track people, to to classify 461 00:26:54,920 --> 00:26:58,480 Speaker 1: people as either being Jewish or not Jewish. And by 462 00:26:58,520 --> 00:27:02,440 Speaker 1: classifying generations of people, they could actually track people back 463 00:27:02,480 --> 00:27:04,600 Speaker 1: if they if they claim that they weren't Jewish, they 464 00:27:04,800 --> 00:27:07,520 Speaker 1: you know, the Germans could look at the generation before 465 00:27:07,600 --> 00:27:09,480 Speaker 1: the generation before them and see if there were any 466 00:27:09,560 --> 00:27:12,560 Speaker 1: Jewish ancestors and if there were those, you know, the 467 00:27:12,720 --> 00:27:16,400 Speaker 1: people would be classified as being Jewish. This came into 468 00:27:16,400 --> 00:27:20,000 Speaker 1: play both in the ghettoization of the Jewish communities where 469 00:27:20,359 --> 00:27:24,560 Speaker 1: Jews were pushed into ghettos and then later during the 470 00:27:24,600 --> 00:27:30,080 Speaker 1: actual Holocaust. So Dio mag was played a big part 471 00:27:30,400 --> 00:27:34,439 Speaker 1: in in the third Reich's plan to to eliminate the Jews. 472 00:27:34,840 --> 00:27:38,560 Speaker 1: And it's a tragic, horrible story. And Black in his 473 00:27:38,640 --> 00:27:42,639 Speaker 1: book alleges that Watson himself was part of this, that 474 00:27:42,680 --> 00:27:44,960 Speaker 1: he was taking advantage of the situation in order to 475 00:27:44,960 --> 00:27:48,960 Speaker 1: make a profit. Uh, there is some stuff that kind 476 00:27:49,000 --> 00:27:53,600 Speaker 1: of points to Watson being uh at least at least 477 00:27:53,600 --> 00:27:55,680 Speaker 1: a part plays a part in this, and that Hitler 478 00:27:55,840 --> 00:27:59,439 Speaker 1: awarded Watson a medal. It was the Eagle with Star Metal. 479 00:28:00,280 --> 00:28:04,280 Speaker 1: But I should point out that in n Watson returned 480 00:28:04,359 --> 00:28:08,320 Speaker 1: the medal. He had been torn by this because apparently, 481 00:28:08,480 --> 00:28:11,439 Speaker 1: at least according to IBM, Watson at first thought that 482 00:28:11,480 --> 00:28:14,800 Speaker 1: the medal was on behalf of his work to try 483 00:28:14,800 --> 00:28:19,040 Speaker 1: and establish world peace, because Watson actually was concerned about 484 00:28:19,200 --> 00:28:24,680 Speaker 1: creating a peaceful global environment, and that when he became 485 00:28:24,680 --> 00:28:27,080 Speaker 1: convinced that that was not the case, he felt that 486 00:28:27,119 --> 00:28:29,440 Speaker 1: it was necessary to return the medal, which in turn 487 00:28:29,520 --> 00:28:33,720 Speaker 1: infuriated Hitler and reportedly Hitler then said that Watson would 488 00:28:33,720 --> 00:28:38,160 Speaker 1: never again be welcome in Germany. Uh once the United 489 00:28:38,160 --> 00:28:41,280 Speaker 1: States and Germany entered World War two. Once once the 490 00:28:41,320 --> 00:28:44,440 Speaker 1: war was declared between the two countries, Germany took control 491 00:28:44,640 --> 00:28:47,400 Speaker 1: of De Homag and it was no longer under ibm 492 00:28:47,480 --> 00:28:51,200 Speaker 1: s control at all. It was completely under German government control. 493 00:28:52,000 --> 00:28:57,520 Speaker 1: So how involved was IBM. According to IBM, they were, 494 00:28:57,920 --> 00:29:00,520 Speaker 1: you know, it was a subsidiary company. They did not 495 00:29:00,680 --> 00:29:03,880 Speaker 1: have control over it. They had owned they owned um 496 00:29:04,080 --> 00:29:06,280 Speaker 1: interest in it, but they were not the ones making 497 00:29:06,280 --> 00:29:10,640 Speaker 1: the decisions. So it's it's, like I said, a murky, 498 00:29:10,720 --> 00:29:13,960 Speaker 1: complicated part of IBM's past, and it's if you read 499 00:29:14,080 --> 00:29:17,320 Speaker 1: Edwin Black's book, it paints a much darker picture for 500 00:29:17,360 --> 00:29:21,760 Speaker 1: IBM than what IBM says. I honestly don't know the truth. 501 00:29:21,880 --> 00:29:24,200 Speaker 1: I cannot. I'm not going to pass judgment because I 502 00:29:24,240 --> 00:29:28,240 Speaker 1: don't know. And also I should add that Watson has 503 00:29:28,640 --> 00:29:33,280 Speaker 1: had really backed a lot of humanitarian efforts before and 504 00:29:33,480 --> 00:29:36,400 Speaker 1: after World War Two, which again kind of suggests that 505 00:29:36,440 --> 00:29:40,680 Speaker 1: he was not taking this complicit role. Right. Um, what 506 00:29:40,760 --> 00:29:43,600 Speaker 1: I just meant to say was that there are situations 507 00:29:43,880 --> 00:29:48,760 Speaker 1: regarding many companies and individuals and it's unclear, uh, you 508 00:29:48,800 --> 00:29:51,240 Speaker 1: know many people I've read about and which you know, 509 00:29:51,440 --> 00:29:54,240 Speaker 1: how much they knew about what was truly going on, 510 00:29:54,520 --> 00:29:57,600 Speaker 1: how whether or not they were being recruited to the cause, 511 00:29:57,680 --> 00:30:01,800 Speaker 1: whether they were being uh and bridge to supply continue 512 00:30:01,840 --> 00:30:05,040 Speaker 1: supplying when it was obvious that, um, there was a 513 00:30:05,080 --> 00:30:08,000 Speaker 1: genocide going on. And and IBM for its part, also 514 00:30:08,080 --> 00:30:11,880 Speaker 1: began to work very closely with the United States military 515 00:30:11,960 --> 00:30:17,440 Speaker 1: in producing various parts and pieces that were being used 516 00:30:17,440 --> 00:30:22,040 Speaker 1: in military applications. So there's that as well well the 517 00:30:22,040 --> 00:30:26,320 Speaker 1: the I know that the United States used IBM equipment 518 00:30:26,360 --> 00:30:30,840 Speaker 1: to work on codebreaking. Yep, so that's that's certainly were 519 00:30:30,880 --> 00:30:34,520 Speaker 1: contributing to the Allied war effort, certainly, yes, yes, So 520 00:30:34,840 --> 00:30:40,800 Speaker 1: moving beyond that that horrible story, UM, IBM really in 521 00:30:40,840 --> 00:30:45,080 Speaker 1: the in the forties began to work on developing calculators 522 00:30:45,120 --> 00:30:47,760 Speaker 1: that that became a big focus of IBM's business. They 523 00:30:47,760 --> 00:30:51,200 Speaker 1: were still working on tabulating and time recording devices as 524 00:30:51,240 --> 00:30:56,080 Speaker 1: well as various other kinds of adding machines and uh 525 00:30:56,200 --> 00:31:00,760 Speaker 1: they uh they founded the Watson Science of Fit Computing 526 00:31:00,920 --> 00:31:05,200 Speaker 1: laboratory at Columbia University in New York. That that's true, 527 00:31:05,280 --> 00:31:07,959 Speaker 1: that's true. UM, yeah, not too long before that, shortly 528 00:31:07,960 --> 00:31:13,920 Speaker 1: before the war's in, IBM uh gave a large scale computer, 529 00:31:14,000 --> 00:31:16,840 Speaker 1: the first of its kind to the called the Automatic 530 00:31:16,880 --> 00:31:21,040 Speaker 1: Sequence Controlled Calculator to Harvard UM. So they're certainly an 531 00:31:21,080 --> 00:31:24,400 Speaker 1: interested in education at that point. So we're getting close 532 00:31:24,440 --> 00:31:27,840 Speaker 1: to wrapping up this first episode of the IBM history 533 00:31:27,880 --> 00:31:31,240 Speaker 1: and the reason for that is we're very quickly approaching 534 00:31:31,400 --> 00:31:35,520 Speaker 1: the time when IBM introduces the first production computer for 535 00:31:35,600 --> 00:31:39,160 Speaker 1: scientific calculations, which is the seven oh one, and that 536 00:31:39,200 --> 00:31:42,800 Speaker 1: was introduced in nineteen fifty two. We'll we'll probably pick 537 00:31:42,880 --> 00:31:45,560 Speaker 1: up I would say, probably at the seven oh one 538 00:31:45,600 --> 00:31:49,320 Speaker 1: for our next podcast, and we'll we'll move up to uh. 539 00:31:49,480 --> 00:31:51,480 Speaker 1: I think we'll go from the seven oh one to 540 00:31:51,920 --> 00:31:57,240 Speaker 1: just before the the personal computer era for IBM because, 541 00:31:57,280 --> 00:31:59,880 Speaker 1: like we said, this company very large, has a very 542 00:32:00,080 --> 00:32:04,760 Speaker 1: long and and storied history. UM. And you know this again, 543 00:32:05,080 --> 00:32:07,920 Speaker 1: this was like the cliffs Notes version to the cliffs 544 00:32:07,960 --> 00:32:12,200 Speaker 1: Notes version to IBM's history, because you can't cover everything 545 00:32:12,240 --> 00:32:14,400 Speaker 1: they've done unless you were to do you can dedicate 546 00:32:14,400 --> 00:32:18,080 Speaker 1: a full podcast just IBM like not not not an episode, 547 00:32:18,360 --> 00:32:22,120 Speaker 1: an entire podcast. Yes, yes, and I mean there are 548 00:32:22,120 --> 00:32:26,160 Speaker 1: other important computing developments going on here, like um, uh, 549 00:32:26,200 --> 00:32:29,240 Speaker 1: the very large project at the More School of Electrical 550 00:32:29,240 --> 00:32:32,719 Speaker 1: Engineering at the University of Pennsylvania. Uh, you know in 551 00:32:32,760 --> 00:32:35,400 Speaker 1: the late nineteen four mid late nineteen FOURI is called 552 00:32:35,480 --> 00:32:38,760 Speaker 1: I don't know, maybe you've heard of it, Aniac, I 553 00:32:38,800 --> 00:32:44,880 Speaker 1: think so. Wasn't that a muppet? Um? Yes, I have, 554 00:32:45,000 --> 00:32:48,320 Speaker 1: But yeah, there are This is a period of advanced 555 00:32:48,880 --> 00:32:53,240 Speaker 1: advanced scientific development as far as computers are concerned. Um, 556 00:32:53,280 --> 00:32:57,480 Speaker 1: the code breaking, the skills that computer programmers were using 557 00:32:57,520 --> 00:33:01,440 Speaker 1: and trying to break codes, um, and trying to advance 558 00:33:01,480 --> 00:33:05,680 Speaker 1: computing development, this is all accelerating an immense pace at 559 00:33:05,680 --> 00:33:08,520 Speaker 1: this point. Yeah. We we've reached the level of mechanic 560 00:33:08,600 --> 00:33:12,880 Speaker 1: electro mechanical computers already, and electronic computers are right around 561 00:33:12,880 --> 00:33:16,600 Speaker 1: the bend. So let's let's conclude this episode. We will 562 00:33:16,640 --> 00:33:19,960 Speaker 1: pick up in nineteen fifty two and we will move 563 00:33:20,000 --> 00:33:22,680 Speaker 1: on from there. And uh, you know, you guys, if 564 00:33:22,720 --> 00:33:25,320 Speaker 1: you have if you would like us to cover specific 565 00:33:25,400 --> 00:33:29,600 Speaker 1: companies that are were, you know, are or were instrumental 566 00:33:29,640 --> 00:33:32,920 Speaker 1: in the technology fields, let us know. We've talked before 567 00:33:32,960 --> 00:33:35,920 Speaker 1: about companies like Apple and Microsoft, and both of those 568 00:33:35,960 --> 00:33:39,600 Speaker 1: will come up pretty soon in this podcast series. Um, 569 00:33:39,840 --> 00:33:42,160 Speaker 1: and let's you know, if you if there's some other company, 570 00:33:42,280 --> 00:33:45,600 Speaker 1: maybe Intel or A and D or uh, you know, 571 00:33:45,800 --> 00:33:48,400 Speaker 1: I don't know, Infocom, anything you want to hear about, 572 00:33:48,480 --> 00:33:50,440 Speaker 1: let us know. We will. We will look into it 573 00:33:50,480 --> 00:33:53,760 Speaker 1: and cover it. Perhaps not all of them will warrant, 574 00:33:54,000 --> 00:33:57,280 Speaker 1: you know, multi episodes like IBM does, but we're happy 575 00:33:57,280 --> 00:33:59,600 Speaker 1: to cover them, and we'll probably have to move off 576 00:33:59,600 --> 00:34:01,080 Speaker 1: and do some thing else for a while, come back 577 00:34:01,120 --> 00:34:03,800 Speaker 1: and do another company podcast. Yeah, yeah, no, we'll we'll 578 00:34:03,800 --> 00:34:07,600 Speaker 1: definitely put some space between these IBM episodes and the 579 00:34:07,680 --> 00:34:10,480 Speaker 1: next focus on a company, because you know, we don't 580 00:34:10,520 --> 00:34:13,400 Speaker 1: want to just get ourselves stuck into that routine. So 581 00:34:13,480 --> 00:34:15,200 Speaker 1: guys just let us know. You can let's know on 582 00:34:15,320 --> 00:34:18,480 Speaker 1: Twitter or Facebook are handled there is tech stuff hs 583 00:34:18,680 --> 00:34:21,160 Speaker 1: W or shoot us an email. That address is tech 584 00:34:21,200 --> 00:34:23,440 Speaker 1: stuff at how stuff works dot com and Chris and 585 00:34:23,480 --> 00:34:27,520 Speaker 1: I will taught to you again really soon. For more 586 00:34:27,600 --> 00:34:30,080 Speaker 1: on this and thousands of other topics, visit how stuff 587 00:34:30,080 --> 00:34:32,879 Speaker 1: works dot com To learn more about the podcast. 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