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

IBM Cannot Even Do Payroll, Now a "Legitimate Target" of Iran
Missiles or not, it seems like IBM systems will be targeted more by cybercriminals
Microsofters' SLAPP Censorship - Part 10 Out of 200: Showing Public Tweets is Not a Privacy Violation, But This Isn't About Justice, It's About Censorship
It's time to put a stop to this abuse of process (which is what the Judge deemed it to be last year)
 
European Qualifying Examination (EQE) Being Reduced to Pieces of Papers One Can Buy, Patent System Rapidly Losing Its Legitimacy
Welcome to the "new Europe"
Priorities in 2026
2026 is an interesting year
Willis Towers Watson (WTW) Producing More Propaganda for EPO "Cocaine Communication Managers"
The Local Staff Committee The Hague (LSCTH) has this new paper about Willis Towers Watson (WTW) and its annual EPO-sponsored propaganda, pretending all is well when things are clearly dire
Head of Microsoft Office and Microsoft 360 is Leaving Microsoft Amid Problems and Mass Layoffs
Microsoft is like a "legacy" company
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, March 12, 2026
IRC logs for Thursday, March 12, 2026
Gemini Links 13/03/2026: "Someone to Take Over Antenna" and Random Seed/RNG
Links for the day
By Expanding to Advocacy of Ponzi Schemes and Bill Epsteingate (Sex Trafficking), Linux Foundation Revenue Grew to $220,730,594, But Salary of Linus Torvalds Not Even in Top 10 Anymore!
true!
In the Name of Transparency, Today We Show Our Defence and Counterclaim
already uploaded by the other side
Links 12/03/2026: Heating Bills to Soar, "Banks in Gulf Evacuate Their Offices"
Links for the day
Gemini Links 12/03/2026: On Phone Anxiety and Bjorn "Looking for Someone to Take Over Antenna"
Links for the day
Cultification: best candidates avoiding Debian leader elections
Reprinted with permission from Daniel Pocock
Richard Stallman (RMS) et al Cited in 'Nature' (Journal/Site) Today, "CODE beyond FAIR"
Under Open Access
The Register MS, on Verge of Collapse, Keeps Promoting a Ponzi Scheme for China
Publishers that participate in this simply don't care about their readers
Overview of False Narratives and Lies Used to Lower Salaries at the European Patent Office (EPO), Abandoning Patent Quality and the EPC
Many of the latter slides are the same as Munich's
Links 12/03/2026: Atlassian Layoffs, GAFAN Covering up Slop-Induced Outages, "Age-verification in Operating Systems and the Internet"
Links for the day
The EPO's President, Who Covers Up Cocaine Use, is Trying to Suppress Communication Between EPO Staff Under the Guise of 'Privacy' (and in Defiance of a Court Ruling)
Why does Europe's second-largest institution: 1) curtail communication among staff (including union) and 2) go out of its way to avoid obeying a court order from ILOAT in Geneva?
Exactly One Week Before Next EPO Strike, Media Intentionally Not Mentioning EPO Strikes
One form of propaganda technique/s involves the systematic suppression of certain topics, or of particular "narratives"
Suicide of disgruntled employee? Bus fire at Kerzers / Chiètres, Switzerland, at least six dead
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 11, 2026
IRC logs for Wednesday, March 11, 2026
Gemini Links 12/03/2026: "on Urbit" and the True Cost (or Criticism) of "Social Control Media"
Links for the day
Slop About "linux" in Google News
Once people recognise that those sites are fake it's hard to 'unsee' what they are
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part V - Attempts to Take Down and Suppress Criticism of Back Doors Controlled by Microsoft and the American Government
The cost of maintaining illusions
IBM's Payroll: Cannot Even Pay the People What They're Legally Entitled to
How financially-stressed is IBM at this point?
Slides From the European Patent Office (EPO) Explain Why They're Striking, How They're Striking, and What Comes Next
A week from now the strike will go ahead
GAFAM Datacentres Are Facilities of War, So Risk of Downtime by Missiles or State-Sponsored Cracking Has Vastly Increased
How safe is your business in "clown computing" or DCs marked as some "legitimate targets" at wartime?
Companies That Take Away Blood and Sweat From the Community to Sell a Ponzi Scheme to Everybody
We need Free software that is run by communities
1,234 People Gather Online to Plan Next EPO Strikes and Other Industrial Actions
yesterday an online gathering orchestrated the next moves by EPO staff
Links 11/03/2026: Fake Videos Swarm YouTube, "Ukraine Can Now Manufacture ‘China-Free’ Drones"
Links for the day
Gemini Links 11/03/2026: Lagrange for iOS and Android and "Turning a Folder of Git Repos Into Project Launcher"
Links for the day
Kafkaesque: Unlawful Activities in the UK to Cover Up Unlawful Activities in the United States of America
Why is bribery and even extortion seen is OK? Because rich people do those things?
Former IBM Executive, Ron Hovsepian, Doomed S.u.S.E. (SUSE)
SUSE is like a child nobody wants to raise
Quiet Layoffs or Silent Layoffs Alleged at Microsoft
Will some investigative journalists do their job now and ask Microsoft tough questions?
After a Long Lull LinuxTeck (linuxteck.com) Came Back Only as a Slopfarm
Unlike Linuxiac, LinuxTeck wasn't very active in recent years
Links 11/03/2026: EPO and USPTO Software Patents Thrown Out Again, Copyright Concerns Over Slop (Plagiarism Using Buzzwords)
Links for the day
Microsofters' SLAPP Censorship - Part 9 Out of 200: 5RB Barrister Does Not Even Know the Name of His Own Client (That He Was Paid Well Over $200,000 to 'Speak' or 'Cover' for)
If you assault women in the United States, there's a barrister available for you in the UK
IBM's Fedora is Now Led by GAFAM Slop
The official word of Fedora is partly slop
IBM 'Dinobabies' Speak Out
"They want newbies out of school at a much cheaper rate"
Links 11/03/2026: "Drill, Baby, Drill" and Social Control Media Recognised as Threat to Democracy
Links for the day
5 Years Since Freenode Conflict
IRC isn't going away
A Week Ahead of Next EPO Strike the Staff Representatives Show the Administrative Council That the Office Lost the Best Staff, It's No Longer Attractive
the message circulated regarding the open letter to the Administrative Council
Jeff Bezos as an Individual Said to Have Enough Capital to Buy IBM
Assuming a market capitalisation of 234.70 billion
Starting Soon: Another New Series About Richard Stallman
There are some inside stories we can tell
Gemini Links 11/03/2026: School, Code Slop, and "Fancy Weapons"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 10, 2026
IRC logs for Tuesday, March 10, 2026