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

It Has Cost $215,000 in Legal Costs to Sue IBM for Wrongful Termination
IBM typically settles out of court and demands secrecy (to avoid anyone else benefiting from the very expensive outcome)
The PIPs or 'Voluntary Termination Offers' Help IBM Fake Its Situation
"IBM is not a tech company"
 
While GAFAM/Microsoft Disguise Financial Crisis as "Investment in AI" the Slop Giants Make Up a Narrative of Wilful Slowdown
A BS artist is good at the art of BS when the artist's failures or weaknesses get twisted as moral or professional leadership
SLAPP Censorship - Part 184 Out of 200: A Tiny Law Firm That Knows Nothing But Microsoft (But Merely Pretends to Understand "IT")
They've managed to trick some mainstream media into thinking they're "Tech" experts or "Social [Control] Media" gurus; nothing could be further from the truth
Links 15/09/2026: Sweden’s Far Right Perishing and "Iceland Just Got Played"
Links for the day
It's Not About How Developers Vote
This isn't about politics, it's about users being in control of their own computers and computing
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 14, 2026
IRC logs for Monday, September 14, 2026
Gemini Links 15/09/2026: Poetry, Enshittification of Ebay, and Mecha System
Links for the day
LG Lies to Cover Up Lies About Its Spying TVs (It Records and Transmits Conversations in Rooms)
This is what a lot of "modern" technology is like
Oracle's Debt Continues to Soar (Increase of 60 Billion Dollars in 15 Months, Not Counting the Secret Debt, With Off-balance-sheet Debt Having "Grown Roughly Thirtyfold in Four Years")
Oracle debt continues to grow
Apple's iOS and macOS Measured as Bigger Than Windows in the US, Linux-Based OSes at Almost 30%
Expect the silent layoffs at Microsoft to continue at a rapid pace
Oracle, Like Microsoft, Drowns in Debt and Discards Tens of Thousands of Staff (Microsoft Does the Same More Discreetly)
The main difference between Microsoft and Oracle is that the latter is honest about what's going on
Gemini Links 14/09/2026: First Android Phone, Leaving Sony, and Rant About Gemini-to-HTTP Proxy Providers
Links for the day
Links 14/09/2026: "Scam Altman Now Trying to Gain Control of Electric Grid" and Sweden Moving to the Right
Links for the day
Vista 11 Flunked
Microsoft cannot start a "Vista 12" campaign as it would only make matters worse
Microsoft Urgently Needs Distraction: There's No "Next XBox", But There's a New Boot Screen (Like 'Dark Mode', a Feature That Can be Implemented in Mere Minutes/Hours)
Anything to distract from XBox fiasco
IBM Flying Away to Sweatshops (So Will Red Hat)
Even on Sunday people post about 'leaving' IBM
RFID Ambitions Already Established by Widespread Skinnerbox Adoption
A society that cannot maintain privacy for those who deserve it will not manage to assure dignity of citizens
SLAPP Censorship - Part 183 Out of 200: What Actually Happened Two Months Ago (Based on People Who Attended)
It's dangerous to assert what happened in a hearing you did not attend (there was no video stream or recording, either)
Phil Harvey, an Editor-in-Chief in a B2B Site, Explains Why ChannelFutures (Connected to TechTarget) and Other Sites That Used to Cover Linux Deleted Many Articles
Every old article in channelfutures is gone!
Software Freedom Day 2026 is 5 Days From Now, Fresh Reminder to Boycott Proprietary Software
Let this be a timely reminder of why people should avoid proprietary software
Links 14/09/2026: Slop Hardly Used for Actual Work (Chatbots Are for Lonely People), Slop Bots (Scrapers, Plagiarism) "Are Thirsty for Power"
Links for the day
Gemini Links 14/09/2026: Trip, Hiding, and OCR
Links for the day
IBM PIPs Are Layoffs (RAs Come Later Even If You Satisfy the "Performance" and "Plan")
Notice how "the media" almost never mentions silent layoffs, as if just because they're silent, there's nothing to investigate, nothing to see there
Slop Companies Engage in Plagiarising the Web, Now They Pay People to Contaminate the Web With Their Lies
Remember that the lawfare against us is funded by slop salaries!
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, September 13, 2026
IRC logs for Sunday, September 13, 2026
Microsoft is Laying Off All Year Long (It's Just Keeping Quiet About It)
The issue here is also the media. It's complicit.
MElon's Twitter Takeover Was Meant to Amplify People Like Himself or David Heinemeier Hansson (Slop Pyramid Schemes and Bigotry)
Social control media is not neutral
Microsoft Lunduke of 'Linux Sucks' (and Microsoft Corp.) Tries to Replace GNU/Linux With Toxic Discussions About Toxic Politics
Poisoning the well people drink from
General Assembly Covers EPO Strikes on Thursday, September 17th (2026)
The EPO's staff representation at The Hague has asked people to join an upcoming online session about industrial actions
Links 13/09/2026: Republican Campaign Aide Uses Nazi Photo and Convicted Felon is Wielding Power to Stifle Speech
Links for the day
Gemini Links 13/09/2026: Never Settling, Plain Text Digital Life, and Newsgroups
Links for the day
SLAPP Censorship - Part 182 Out of 200: UK Dockets With Machine-Generated Applications to the Court (From American Slop Companies)
Earlier this year Garrett was using machine-generated output as legal papers and submissions
Efforts to Cancel Matt Mullenweg Have Made Us More Sympathetic Towards Mullenweg and More Sceptical of the People Who Run Automattic (Named After Mullenweg)
Mullenweg, unlike Automattic, is not "in it for the money"
Boosters of Omarchy Are No 'Underdogs'
There are many Arch derivatives that do not rely on "viral" marketing in MElon's child porn-pushing social control media and are instead relying on real development, not slop
PIPs Are a Setup: They Set Workers Up to Fail While Working Their Arse Off Before Getting Kicked (Out) in the Arse
Malicious and exploitative
SLAPP Censorship - Part 181 Out of 200: This is Really More Like Brett Wilson LLP v Schestowitz (Using Money From American Slop Companies, Plagiarism Pushers)
We approach the parts where we explain that the Application to the Court with Garrett's name on it was instead complaining about fair criticism of the combative law firm (irrelevant to any injunctions) as if it was impermissible to explain what it had done - and still does - to my wife and I
It Sometimes Feels Like Slop Companies Are Committing Online/Digital Crimes
"GPT" out of control
Gemini Links 13/09/2026: Why Omarchy is "Plain Disgusting" and "AI Slop" and Why "Plain Text To Do List" Rocks
Links for the day
Links 13/09/2026: Scam Altman Admits Issues (Financial), Rival Says Stop Slop (Plagiarism)
Links for the day
Windows Down to New Lows as Switzerland's Federal Government Abandons Microsoft (Where Feasible for Now)
That's how it starts...
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, September 12, 2026
IRC logs for Saturday, September 12, 2026