Bonum Certa Men Certa

Journey Back in History: Misconduct or Disorderly Conduct (Stuffing Money Down the Fronts of Stewardesses' Blouses, According to Witness Account) by Arthur Watson of IBM (Founder's Son and Former IBM Chief), Followed by Watson's Admission and Resignation

IBM Watsons

Summary: Techrights examines more of the past IBM does not want anyone to know about, ranging from serious crimes (like bribery, fraud, corruption, and bid-rigging) to abuse of women

ONE recurring theme here this past spring/summer was IBM weaponising diversity to oust men whom it cannot control (such as Richard Stallman) whilst ignoring IBM's own guilt. As covered here twice before [1, 2], IBM's very leadership and top-level officials have much to hide themselves. Their history with women isn't exactly stunning. It just takes a bit of effort to better understand what happened and at the moment we dig up very old press archives (1960s and 1970s) though "if anything is written," an associate emphasised, "the direct relevance to today's organization must be clearly visible. Arthur K. Watson (AKW) has been dead for almost half a century." Here's an old article about his appointment and his death one decade later. He died quite early.



For Watson, as a brand that IBM still champions (foremost marketing focus), the past should definitely matter. Not only did Watson the father receive a medal from the Nazis (for his service in implementing the Holocaust). What the Nazis did in the war didn't seem to bother him until the US entered the war. He became very wealthy and IBM became very powerful owing to racist eugenics agenda even prior to it. They literally helped the US Government commit ethnic cleansing of blacks, targeting "mixed" couples in particular (with sights on compelled sterilisation). The few historians who bother learning this subject are being obstructed by IBM, which goes out of its way to bury evidence.

That's aside from the women's rights aspects; and the purging of words, much like authoritarian regimes looking to control language itself. I reassured our associate that "the subject [of AKW] might become relevant and of use when IBM preaches from the high heels, claiming to be protector of women's rights to defuse critics of its corporate conduct..."

4 years ago Arne Alsin published "The IBM Hall of Shame: A (Semi) Complete List of Bribes, Blunders and Fraud"

Just over a year ago, in October 2015, IBM disclosed to its shareholders that the company was facing (yet another) SEC investigation. This time, federal agents opened up a probe into how Big Blue reported revenue on “certain transactions” in the United States, the UK, and Ireland. In layman’s terms, it means that the SEC is looking into whether or not IBM is cooking the books.

Surprised? I’m not.

The jury’s still out on that particular case, but I’ve been doing my own research and investigation into IBM for the last decade, and the new revelations fits within a certain pattern: IBM gets implicated or accused of some corporate wrongdoing, the company “cooperates” with investigators, and then — just maybe — the government will slap them with a relatively minor fine. But more often than not, it seems to me, nothing happens, and it’s business as usual.

Don’t believe me? Well, that’s why I’ve compiled this handy guide that exposes the long and sordid history of IBM’s alleged violations, both domestic and abroad. Though the company has defended itself in every single case, the list does not paint a pretty picture: There are multiple cases of bribery, fraud, corruption, and bid-rigging. And they appear to be happening with increasing frequency.


Microsoft does the same thing, in effect defrauding shareholders and faking its financial performance. But let's focus on IBM for now. Here are some excepts:

1993 — 2000, Argentina: Bribery through Swiss bank accounts

Let’s begin with one of the first IBM bribery cases on record.

In Argentina, the scandal was front-page news: Three high-level executives at IBM were caught bribing government officials with multi-million dollar kickbacks, routed through Swiss bank accounts, in order to win a $250 million contract to modernize the computer system of Argentina’s largest government-owned bank.

[...]

2004–2009, South Korea and China: Slush funds and fake invoices with more than 100 IBM employees involved.

Only a few years after the Argentina scandal, IBM was accused of another overseas bribery case — this time in South Korea and China.

[...]

2013, Poland, Argentina, Bangladesh and Ukraine: “Allegations relating to transactions…”

For this case, it looks like the SEC took a break and let the Department of Justice try its hand at investigating the overseas alleged fraud.

[...]

2011–2014, India: Did top IBM executives cook the books in India?

The important thing to know about IBM’s troubles in India is the scope of what happened: repeat accounting troubles over a period of several years. While this may have been swept under the rug in American media, after doing my own research, IBM’s trouble in India (where it has likely over 100,000 employees) gives me a lot of concern.

[...]

2013, USA: IBM under investigation for how it reports cloud revenue

May 2013 was apparently busy month at IBM and the SEC.

As noted above, in the spring of 2013, the SEC opened up investigations into IBM abroad. But at the same time, SEC also apparently opened up an inquiry into IBM in the United States.

[...]

2013–2016, Australia: “The worst failure of public administration in Australia’s history” — IBM is banned from doing business with Queensland’s government

The average American probably has no idea that IBM is completely banned as a contractor within Queensland’s government. Yes, really.

[...]

2015, Canada: Another bribery case at IBM

More allegations continue to surface that IBM is bribing government officials.

[...]

2015 — Present:

Bribery always involves phony books and records — it’s necessary to hide the transactions on the balance sheet. And in order to circumvent internal controls, bribery usually requires the involvement of senior management.


As we noted here before, this kind of bribery is "business as usual" at Microsoft and fraudulent reporting about "cloud" likewise. It's a longstanding tradition and Microsoft tries to bribe and/or blackmail whistleblowers. It's all in the public record now, albeit it takes some digging to find.

Speaking of digging, we've managed to locate additional reporting on what happened to the IBM chief who fell from grace, left his job (maybe forcibly), and died not too long afterwards. Not much is said about his premature death in mainstream sources. Decades of googlebombing make that rather difficult. His New York Times profile is 100% a puff piece. The obituary from the New York Times says "Mr. Watson, who was 55 years old, had been injured in a fall at his home in New Canaan, Conn., on July 18, and had been taken to the hospital." Another drunken tirade, this time at his home/mansion?

It does not say much. There was, however, quite a bit of press coverage about his airplane tirade ("incident"), which led to admission that he had serious problems (apparently with alcohol and with women). In the words of this old article:

Retiring Paris Envoy Sums Up Diplomatic Life

Key parts with our highlights added:

The report by Jack Anderson, the Washington columnist, that the Ambassador indulged in a “glorious drunk” on a transatlantic flight last March had hurt him. “Inwardly, and in the spin–off on the family,” Mr. Watson said.

In the aftermath of the incident, Mr. Watson denied in a letter to Representative Wayne, L. Hays, Democrat of Ohio, that he had become intoxicated. He acknowledged in the letter, however, that “I was exceedingly, and, I think, uncharacteristically, rude.”

The incident was widely considered to have shortened his term at the embassy, but Mr. Watson said, “It didn't hurt my job. There was hardly a ripple here.”


Here's another one:

NIXON SAYS PACT ON ARMS DEPENDS ON MOSCOW TRIP

This article does not say who paid Mr. Nixon before getting this job/post:

He defended the conduct of Arthur K. Watson, the American Ambassador to France, who had been accused of being drunk on a recent flight from Paris to Washington.

Mr. Nixon, smiling, said that Mr. Watson had been carrying out talks with the Chinese Ambassador in Paris “with great competence — and, I understand, total sobriety.” [Question 18.]

He added that he had noted that some members of Congress had raised questions about “the personal conduct of an ambassador when he travels to his post.”

“I would say that people in glass houses should not throw stones,” he said.


Here's yet another one:

President Accepts Resignation Of Watson as Envoy to France

Key parts with our highlights added:

Mr. Watson, a major contributor to Mr. Nixon's 1968 campaign, was involved in a, controversy last March after Jack. Anderson, the columnist, reported “that he had been drunk and disorderly on a commercial trans. Atlantic flight, an accusation that Mr. Watson denied.

In his article, Mr. Anderson said that Mr. Watson became “gloriously drunk” on a flight from Paris to Washington shortly after he had been given the delicate job of establishing diplomatic contacts with the Chinese Communists in Paris.

He wrote that Mr. Watson had a chronic “liquor problem” that could spoil the Chinese American detente that followed President Nixon's trip to Peking.

Both the Senate and Foreign Relations Committees and the House Foreign Affairs Committee opened investigations into the incident, and Mr. Watson said later that the Anderson account had been exaggerated.

The investigation was dropped after Secretary of State William P. Rogers wrote that Mr. Watson had apologized for the incident.


Some more:

CONFIDENCE VOICED IN ENVOY TO PARIS

Key parts with our highlights added:

The State Department expressed confidence today in Arthur K. Watson, Ambassador to France, following a newspaper columnist's report that he had been “gloriously drunk” on an airliner.

The columnist, Jack Anderson, said the incident occurred aboard a flight from London to Washington last Thursday when Mr. Watson was returning for consultations on establishing contacts with the Chinese Ambassador in Paris.

The department spokesman, Charles W. Bray 3rd, declined direct comment on the columnist's charges, but he said: “If you're asking whether the department has confidence in Ambassador Watson and whether Ambassador Watson will continue to carry out his ambassadorial functions and other functions in connection with the ambassador of the People's Republic of China, the answer is yes.”

Mr. Anderson quoted witnesses on the plane as saying:

“He kept up a holler for scotch and grabbed at passing stewardesses. He then tried to stuff $40 down the fronts of their blouses. Finally he passed out and slept for about three hours.”


And finally:

Senate Panel Drops Inquiry Into the Watson Incident

Key parts without highlights added:

The Senate Foreign Relations Committee announced yesterday that it would drop its inquiry into an alleged drinking incident involving Arthur K. Watson, United States Ambassador to France.

Senator J. W. Fulbright, chair man of the committee, said the committee “does not expect to pursue the matter further.” He made public a letter on the subject from Secretary of State William P. Rogers.

Columnist Jack Anderson wrote that Mr. Watson was “gloriously drunk” and abusive toward crew members on a Pan–American flight, March 9, from Paris to Washington. Mr. Watson denied he was drunk, but acknowledged in a letter to Representative Wayne Hays, Democrat of Ohio, that he was rude and had “harsh exchanges” with the crew.

Mr. Rogers said in his letter to Mr. Fulbright “Ambassador Watson has said that he deeply regrets the episode, and assures me that it will not recur.”


So it's his word against that of the eyewitness (we're talking about First or Business Class here, so it's not some random eyewitness but quite likely a high-profile person, maybe even plane crew like pilot).

Watson isn't denying there was a major incident. Watson was very drunk at the time, so maybe his recollection is conveniently selective. He already acknowledged the rudeness and he left his position not too long afterwards. Airline crew was reportedly gagged about the incident, after threats had been made and deterrents issued (to protect the "VIP" and his reputation). As a reminder, as per tapes from the White House (President Nixon, who had received financial contributions from Watson), the abuse of women was seen as "OK" because Watson was "Chasing Girls" and not "Chasing Boys"; how typical of Nixon.

Mr. Watson died at his home (well, after hospitalisation albeit the incident occurred at his home) less than 2 years after stepping down.

Recent Techrights' Posts

Touch Grass
Happiness involves what humans have evolved to appreciate, not what humans create to sedate the mind (like skinnerboxes)
The Cyber Show on Technology Having Become a Tool of Mass Psychosis, Not Enablement or Emancipation
Technology as mass psychosis
The Rumour Said That a Second Wave of Microsoft Layoffs Would Come This Week (Ahead of Fake 'Results'), Maybe Tomorrow
Let's wait and see how "MSM" unfold
Karen Melchior Fought the Good Fight
stay tuned for Part 29
 
This Coming Weekend Marks 4 Years Since We Dumped Content Management Systems (CMSs) in Favour of Static Site Generators (SSGs)
the first page dated July 25
Slop's Latest Casualty: The Credibility of Linus Torvalds
If you care about millionaires and billionaires, follow Torvalds (he is already in that "club")
Techrights Will Become More Productive (More Output) Over Time
Big stories about to land
To Wikipedia, "Notability" is Just an Excuse to Hail People Who Serve Billionaires While Marginalising or Defaming the Rest
Wikipedia is an advertising space
Our Series About Solicitors Regulation Authority (SRA) and SLAPPs Will Resume Soon
Originally, in 2025, we gave ourselves 6 years (until 2031) to cover these issues, but we've seen since extended that to 10 years (until 2036) because of the amount of material we have
European Patent Office (EPO) Series: The EPO Transparency Gap
Despite the "European" tag in the organisation's name, the European Union has no jurisdiction over the European Patent Organisation
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 20, 2026
IRC logs for Monday, July 20, 2026
Links 20/07/2026: Lashes for Songs in Iran, Kurdish Language at Risk
Links for the day
Gemini Links 21/07/2026: The Boss Baby (2017) and 2026 Old Computer Challenge Epilogue
Links for the day
Canonical Staff Acting Like They Aim to Receive Job Offers From Microsoft
There are moreover allegations that Debian will do the same, in the same way Mono boosters infected both distros in tandem or in turn.
Worsening Staff Affairs at Microsoft
Microsoft is managing to piss off many of its own workers
Czech Mate for GNU/Linux on the Way
Czechoslovakia is having none of that "peace for our time" with Microsoft
Nobody Will be Left Who Trusts IBM Anymore
The common theme is, the management must be completely replaced as soon as possible and truth needs to come out
Wall Street is a Bubble and No Company is Worth 5 Trillion Dollars
It's not hard to see which stocks will crash the hardest (or fastest)
The Corrupt Have Historically Tried to Paint Their Exposers as the Real Problem
As usual, there are efforts to shoot or muzzle the messenger
Search Engine Market Share in Italy: Microsoft Falls to Third in Many Countries Including Italy
Expect more layoffs in Bing
Links 20/07/2026: Spotify Drowning in Slop, Expiry of Software Patents in MPEG-4
Links for the day
Gemini Links 20/07/2026: Another Step Towards Owning Personal Data and Gemtext2 Envisioned
Links for the day
European Patent Office (EPO) Series: Public Missions and Private Ambitions
Despite the French government's strong formal pushback, the lobbying momentum generated by Campinos and Negrão proved unstoppable
"DOOM" and "Bloodbath": the State of Microsoft and XBox
Way to piss off fans
Links 20/07/2026: Notes on E-mail Encryption, Torvalds and His Employer Paid a Lot to Promote Slop (Pyramid Scheme)
Links for the day
What a Difference Six Years Make...
We are also beta-testing a new feature for the site; we plan to announce it some time soon
When It Comes to Slop, Richard Stallman is Opposite of Linus Torvalds
When it comes to computing, Dr. Stallman has long been a voice of reason
Daniel Pocock is in Mainstream Media This Week
Pocock's haters will absolutely hate this
In His Departure Post, Poul-Henning Kamp (phk) Explains Why Linus Torvalds is Full of "Hot Air" and Slop Bubbles
Having lived through previous bubbles as a UNIX geek, phk cannot be ignored
Whistleblowers Keep Flowing
Later today a police investigator should phone us regarding death threats we've received
We Need Less Gadgets, More Humanity
If people are being honest with themselves, many of the gadgets they claim they "cannot live without" are just excesses and distractions they could definitely leave behind
Technology and Gadgets Got Obese, Just Like Their Users
They now sell us so-called 'phones' for slop
Daniel Pocock in The Guardian This Morning
There is an opportunity here to spread a message, even if Pocock won't win a seat
"Samsung Recently Projected a 19-fold Surge in Second-Quarter Operating Profit", Now There Are Mass Layoffs
In a 9-month period Samsung's debt rose by about 80%
Gemini Links 20/07/2026: Dungeon Meshi/Undertale Crossover, "The Hitchhiker’s Guide to the Dark Web and Beyond"
Links for the day
IBM's Control of the Media "Just Showed What Taking Accountability Does Not Look Like"
It is no secret that IBM pays the media
Microsoft Loses XBox Lawsuit, But There Are More
The collapse of studios continues
GNU/Linux Approaching International Average in Djibouti
One can envisage further gains for GNU/Linux, seeing Microsoft is in such a bad shape
Daniel Pocock "[t]he Australian Taking on Nigel Farage — from Down Under"
This can help raise awareness of some issues
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 19, 2026
IRC logs for Sunday, July 19, 2026
Misleading Coverage in Slashdot Promotes and Openwashes Slop
Piggybacking RMS for the headline seems like a PR stunt of sorts
As Envisioned, a Rebellion and Many Whistleblowers at Microsoft
Whistleblowers ensure Microsoft has totally lost control of the "narrative" (face-saving PR)
Microsoft is a Right-Wing Company
Just remember that when people call Microsoft "woke"
GNU/Linux "Market Share" Rises to About a Quarter in Sudan
Can anyone explain to us why?
Gemini Links 19/07/2026: Visiting Ethiopia, Two Dreams, and Price of Skinnerboxes
Links for the day
Tears in IBM, Company Falls Apart While Management Fakes "Performance" to Take Bonuses
Wall Street is a naked emperor
Telling Our Story
In the coming years we'll have some high-impact stories to share and generally tell without fear of reprisal
Microsoft XBox Studio Leaders Upset at What the New CEO Did
From what we can gather, in 2024 XBox was already entering what's known as a "death spiral". Now it's literally moving down the drain/pipe.
IRC Started in Finland, GNU/Linux Did Not
History is like that
GNU/Linux Rises to 8% in Bhutan, Same as the International Average
Taking note of estimated GNU/Linux share in that country, we see it hovering around the international median/average this month
Links 19/07/2026: "The Voice of Google" and "Chinese Surveillance Tech a Threat to Privacy"
Links for the day
Keep Both Eyes on the Ball
At the moment we have six series running in parallel; two of them concern the EPO
'Journalists' Who Help IBM Cover Up Fraud
Journalistic malpractice
The "Modern Linux" Song
Join us now, make the kernel
XBox Layoffs Vastly Bigger Than Microsoft Told the Press, Microsoft Keeps Trying to Change the Subject
Many so-called "XBox fans" are no more
Microsoft Lost 1,200 Billion Dollars in "Market Value", Take a Look at What Happened to Windows
while Windows continues to fall unstoppably GNU/Linux is surging
Links 19/07/2026: People in China Are Buying Feelings and 404 Media Has Third Anniversary
Links for the day
Gemini Links 19/07/2026: Camping, Health, and Hardware
Links for the day
The State of Slopfarms
Slopfarms or LLM slopfarms are a menace and a problem on the Web
GNU/Linux Rising to 6% in Brunei
seventh in the world for GDP (PPP) per capita
Free Software is Like an 'Activist Movement'
People who argue strongly in favour of something (even very good things) will attract the wrath of those whom they oppose
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, July 18, 2026
IRC logs for Saturday, July 18, 2026