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

The Problem is Not Technology, the Problem is Really Bad Things Sold or Imposed as "Tech" (Like a Religion Built Around Technology)
Don't hate technology, hate the corporations that abuse it to promote coercion, exploitation etc.
Resisting IBM and EPO Corruption
Rise up against EPO dictatorship next week
Where Slop Meets Ghostwriting: It's a False Analogy
It's a false analogy
Slop Technica: Ars Technica Seems Like Repeat Offender, a Part-Time Slopfarm
The culprits are repeat offenders, but the publisher will never admit this in public
Where Microsoft's Bing Cannot Even Reach 1% "Market Share"
Looking at "I" countries
Links 16/02/2026: Barack Obama Responds to Racist Cheeto and Benjamin Mako Hill Studies Online Communities
Links for the day
 
EPO "Productivity" Will Fall Off a Cliff If Examiners Stick to the European Patent Convention (EPC) and Follow the Real Rules
The EPO's "Cocaine Communication Manager" would hate to see the next "productivity" metrics
Links 17/02/2026: Why OpenClaw is Very Sleazy and Ars Technica Exposed as Hub of LLM Slop (Credibility Destroyed Overnight)
Links for the day
Benj Edwards (Ars Technica) Used Fake Articles to Promote Ponzi Scheme for Conde Nast and Its Client (Marketing)
What Ars Technica and Conde Nast do here helps defraud the general public
Only One in 50 Saudis Would Use Microsoft for Search, Almost Same as Would Use Russia's Yandex
If statCounter is to be trusted
Microsoft's "AI" Concerns Are All Indian (or Low-Paid Workers Who Work Extra Hours Unpaid)
portraying charlatans and frauds like they're some kind of visionaries and luminaries
Microsoft Turned Bing Into Censorship Machine of China, But Bing Is Pegged at a Mere 2% in Asia, Yandex is Bigger
Expect many Bing layoffs some time soon (like in past years)
Just Like The Register MS, Conde Nast's Ars Technica Has Just Publicly Admitted That It Published Fake Articles (Slop) Made by LLMs About Serious Subjects
Conde Nast might shut Ars Technica down to escape the bad publicity/association
Solicitors Regulation Authority (SRA) Way Too Slow to Respond to Financial Fraud at Law Firms, in Effect Helping Those Law Firms Defraud Many More People (Fleecing Clients)
Who will hold the SRA accountable for this?
Techrights Became a Hub for News That IBM/Red Hat Doesn't Want You to See (and Pays Mainstream Media to Distract From)
the more viciously the notorious organisation attacks the reporter, the greater the interest in what the reporter has to say
EPO's Central Staff Committee on Fourth Technical Meeting, Two Days Before First of (At Least) 4 Winter Strikes at the Second-Largest European Institution
“future orientations on the salary adjustment procedure”
IBM's Collapse Continues, Half of EU Countries to Have Mass Layoffs, "IBM Clearly Disinvests From Europe" Says IBM European Works Council
Recent publication
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, February 16, 2026
IRC logs for Monday, February 16, 2026
Gemini Links 17/02/2026: Alpenglow Industries' Closure and Gemini Server Issues
Links for the day
The Southern California Linux Expo (“SCALE”) or SCALE 23x Becomes Microsoft
It's not supporting the event, it is buying it.
Microsoft to Focus on Name-Dropping Buzzwords to Distract From Declining Business, IBM RAs (Layoffs) With Staff Stack-Ranked
Calling everything cloud or reclassifying as "AI"
Another EPO Strike One Week From Now, Local Staff Committee Munich to Discuss It This Week
Campinos MIA while Office staff goes on strike at least 4 times
Gemini Links 16/02/2026: Task Completed by Avoidance and "Playing Again With Akkoma"
Links for the day
Happy Birthday (or Anniversary) to SoylentNews
"Happy Birthday SoylentNews"
Techrights' Architecture
Stability is the main goal
IBM Reduces the Thresholds for Acceptance (and the Salaries)
Are chatbots good enough as IBM staff?
When It Comes to Rust, Keep All the Eyes on the Ball (Technical and Legal Perils, Sustainability Questions)
It's not about security or politics
Linux Foundation Continues Falling Off a Cliff in Geminispace
Gemini Protocol will turn 7 this summer
Links 16/02/2026: cURL’s Daniel Stenberg Asserts That Slop is DDoSing Free Software, But Still Uses a Plagiarism and GPL-Violating Blender (Microsoft GitHub)
Links for the day
The Techrights Community Never Needed Money, Only Goodwill
We accomplish things by a track record of suppressed facts
"AboutCode" is a Microsoft Proxy and Microsoft's Acquisition of the OSI Advances Via OSI Moles
presenting direct evidence anybody can verify
Social Control Media is Just a Digital Weapon
Social control media is not social and not media
They Will Call Smart People "Luddites"
Is society "seeing the light"?
Microsoft Amutable Already Reveals That Its Focus Is Not Linux, It'll Promote "Remote Attestation"
This is basically an attack on Software Freedom, even if they toss around the brand "Linux"
More People in Chad Move to GNU/Linux
Last year we began to see GNU/Linux rising there - a trend which continues this year
Dr. Andy Farnell on How Universities and Culture of Education Got Crushed by "Technofascist Nightmare"
Farnell says he "already soft-quit in [his] mind"
Debt of Broadcom Grew by More Than 50%, Broadcom is Deeper in Debt Than Google
Expect many more cuts
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, February 15, 2026
IRC logs for Sunday, February 15, 2026
Links 15/02/2026: Slop, Politics, and Gemini
Links for the day
Small is Beautiful (in Cascading Style Sheets/Inheritance Rules)
If done correctly, pages can take a tenth of a second to fully load
Microsoft Has Fallen to New Lows in Hong Kong This Year
That Windows "market share" falls there is perhaps expected
Free Software Foundation (FSF) Raised About 1.5 Million Dollars This Winter, Almost 50% More Than in All of 2024 Combined
Verbal advocacy goes a long way
Spread the Word About EPO Strikes and Patent Injustices in Europe
Corruption in Europe is a real thing
The Register MS is Promoting Slop, Promotion Connected to Microsoft (Trying to Replace Judges With Microsoft)
marketing spun as "science"
He Did Not Have Enough Souls
A lot of the subjects we cover here no other site dares touch
"Mix Vale" is a Slopfarm
3 "articles" about "ubuntu"
Links 15/02/2026: Roy Medvedev Dead at 100, Rise of "YouTube Politicians"
Links for the day
Links 15/02/2026: How Alexey Navalny Was Executed by Putin, Erdogan Helping Iran
Links for the day
IBM Fedora Keeps Promoting Slop, Red Hat Has Been Turned Into Chaff and Trash to Help IBM's Stock (With "AI" Storytelling)
Red Hat's Fedora is an old brand (20+ years). It no longer stands for what it meant to people in the Fedora Core days (I was a Fedora user back then).
What IBM Said About 2026 Layoffs and What's Happening in Practice
t'll leave IBM at the very bottom, in due course (customers will notice something profound has changed)
Gemini Links 15/02/2026: "Already Midway February" and Loadbars Remembered
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, February 14, 2026
IRC logs for Saturday, February 14, 2026