July 8


ROMANIA:

Then They Came for the Gypsies: The Legacy of Death's Calculator


In April 1941, a Romanian census taker came to the home of a suspected
Roma Gypsy working as a blacksmith in the picturesque town of Schaas. The
senior Nazi statistical official observing the process wrote, "He did not
dare to deny his ethnical descent as Gypsy." The census taker instructed:
"Now, please write: Gypsy."

Shortly thereafter, that Gypsy blacksmith's census questionnaire, filled
out by simple pencil, joined thousands of similar questionnaires at the
Romanian Central Institute for Statistics facility. This facility was
equipped with the latest IBM Hollerith high-speed punch-card machines,
specifically programmed for the Romanian census. IBM's Hollerith
punch-card system stored any information, such as ethnic type, profession
and residential location, in the rows and columns strategically punched.
The cards could then be counted and cross-tabulated at the rate of 24,000
cards per hour, yielding almost any permutation of data.

To help systematize the persecution and extermination of minorities, the
Romanians used custom-designed punch cards, printed exclusively by IBM,
which included special columns and rows for all ethnic groups, including
Roma Gypsies. The printed census forms were approved for compatibility by
IBM engineers, ensuring each of the numbered boxes on the printed census
forms corresponded to the designated punch-card column. Because this was a
state-of-the-art census, the women operating IBM equipment were all at
least high school educated.

Within a year of being identified, an estimated 25,000 Gypsies were
rounded up pursuant to the Romanian Interior Minister's order #70S/1942.
Typically, roadblocks were set up on the outskirts of town as gendarmes,
with lists of names, fanned out to arrest the Gypsies. Gypsies were then
deported in trains, which were scheduled and tracked by IBM's leased and
regularly serviced Hollerith machines. Their destination was a death of
starvation, beatings or execution every bit as horrible as that
experienced by the Jews of Romania.

The Nazi census expert observing the Romanian census was Friedrich
Burgdrfer, president of the Bavarian Office for Statistics in Munich.
Ludwig Hmmer, an IBM punch-card expert working in IBM's German subsidiary,
Dehomag, accompanied Burgdrfer to Romania. Hmmer went to Romania only
reluctantly since he was not receiving a commission on the punch-card
business in Romania.

Romania was a sales territory operated directly from New York. But Hmmer
was specifically instructed to assist in the Romanian census by Werner
Lier, IBM's general manager in Geneva, Switzerland. Lier acted with the
full knowledge of IBM president Thomas J. Watson.

Recently, IBM's role as a willing accomplice in the mass murders of
Gypsies and indeed, the larger question of its Swiss operation has come
back to haunt the technology company. Big Blue has refused to answer the
charges since the first simultaneous disclosures in 40 countries on
February 11, 2001, that IBM knowingly systemized Hitler's persecution and
extermination of Europe's Jews, directly from New York and through its
subsidiaries in Europe coordinated through the Swiss office. But on June
22, a Swiss appellate Court ruled that a compensation suit filed by the
Gypsy International Recognition and Compensation Action could proceed.

"The precision, speed and reliability of IBM's machines," the Swiss judge
ruled, "especially related to the censuses of the German population and
racial biology by the Nazis, were praised in the publications of Dehomag
itself, the branch of respondent IBM. It does not thus seem unreasonable
to deduce that IBM's technical assistance facilitated the tasks of the
Nazis in the commission of their crimes against humanity, acts also
involving accountancy and classification by IBM machines and utilized in
the concentration camps themselves."

The judge's ruling pointedly added: "In view of the preceding, IBM's
complicity with material and intellectual assistance in the criminal acts
of the Nazis during the Second World War by means of its Geneva
establishment does not appear to be ruled out, as there is a great deal of
evidence indicating that the Geneva establishment was aware that it was
aiding and supporting these acts."

IBM has consistently stated through its spokesmen that it has no
information about how its machines were being used. But that is the
opposite of what IBM itself stated during World War II to American
investigators probing IBM's Geneva office. Werner Lier, IBM's European
manager in Geneva until Germany surrendered, was the company's top officer
in Europe, involved with virtually every transaction in every country
throughout the war. Lier himself defined IBM Geneva not as an autonomous,
detached office but as a nexus, which simply implemented the business
decisions made by IBM New York.

On April 29, 1942, Lier outlined for the American consul in Geneva exactly
how IBM Geneva operated. "You will readily understand," explained Lier,
"that this office is a clearing office between the local organizations in
the various countries and the New York Headquarters."

Lier added that IBM New York made all the decisions. His function was
simply to monitor the business and keep the records. "The European
Headquarters in Geneva," Lier explained, "are, in a way, a representative
of the World Headquarters in New York, whose job it is to manage and
control European affairs... In short, the functions of the Geneva Office
are purely administrative." Lier emphasized, "When the local offices [in
different countries] require machines or material from our factories in
the United States, they pass the order to the Geneva Office which, in
turn, transmits it to the New York Headquarters for handling and supplying
the machines direct to the local office."

Switzerland was the commercial nexus of World War II. Its famous financial
secrecy laws, neutrality and willingness to trade with enemies made
Switzerland the Third Reich's preferred repository for pilfered assets and
a switchboard for Nazi-era commercial intrigue. In 1935, when talk of war
in Europe became pervasive, Watson moved the company's European
headquarters from Paris to Geneva. As a Swiss national, Lier freely
traveled to and from Germany, the occupied territories and neutral
countries, micro-managing company affairs for Watson.

Census was one of Lier's most important projects. IBM, through Lier and
the Swiss office, moved its machines from place to place around Europe as
Nazi-allied regimes required them. For example, the Romanian census
presented a huge business opportunity involving many machines and millions
of custom punch cards which only IBM printed. Watson had been preparing
for the Romanian census and similar censuses for years. As far back as
1938, Geneva official J C. Milner advised New York, "During 1940, the
census will be taken in several countries, and we expect a number of
orders." Milner hoped IBM New York could develop a special IBM census
tabulator in time.

On October 10, 1941, Lier visited Berlin to review arrangements to supply
the Romanians. He wrote to Watson's personal assistant Harrison K.
Chauncey in New York: "As regards the Census... neither we nor the Dehomag
have been able to obtain any precise information as regards the
specifications of the machines which are needed in Bucharest. I agreed,
exceptionally, to Mr. Hmmer going to Bucharest together with a
representative of the German Statistical Office [Friedrich Burgdrfer] in
order to analyze the whole situation. The commercial side of these two
subjects has been dealt with direct with [two IBM executives in Geneva]
Mr. [Jurriaan] Schotte and Mr. [J.C.] Milner."

The Romanian business was not in Dehomag's commission portfolio. It was an
enterprise of IBM New York. Because Dehomag employees received no
commission outside the Reich, IBM New York and IBM Geneva were uncertain
whether German employees could be relied upon to carry out IBM projects
elsewhere in Europe. Weeks before in 1941, when Watson's personal
assistant Chauncey had inquired whether tabulators had been dispatched to
Romania, German manager Karl Hummel responded with what seemed like a lack
of initiative: "We have not furnished any to Romania." He seemed to be
waiting for direct orders, saying, "If Geneva gives us an order for
Romania, we will fill it."

But for Lier, Romania was clearly a priority. When he arrived in Berlin in
the fall of 1941, "One of the first matters discussed with them," Lier
reported to Chauncey on October 10, 1941, "was that of the Romanian census
and the machines destined for this business, which are actually blocked in
Poland." The day before, Lier had sent a more formal letter to Watson
himself to allay any concerns: "On the occasion of my visit to Berlin,"
Lier wrote, "I also settled a few pending matters, such as the machines
blocked in Poland [and] the Romanian census... I am addressing separate
reports to the executives concerned in New York."

Lier felt that if only he could contact the Romanian embassy, diplomats
could use their connection with Reich offices in occupied Poland to
forward the machines through the war zone. He called IBM's best contact in
Berlin, American commercial attach Sam Woods. "Thanks to Mr. Woods," Lier
reported to IBM New York, "I obtained an interview with the Romanian
Commercial Attach who immediately endeavored to obtain the freeing of
approximately seventeen machines at present blocked in Poland from the
Devisenstelle [Foreign Currency Office] and the German Authorities... I
have been given every assurance as to the satisfactory outcome of this
demand." Shortly thereafter, Lier did effect the transfer of Dehomag
machines to IBM's Romanian subsidiary.

Even Nazi census master Burgdrfer admitted, in a journal article, that
Romania's Central Statistical Institute was "unusually well-equipped."
Romania's massive census was so sophisticated it even enumerated which
Roma Gypsies were already refugees or already interned in concentration
camps. Hence, IBM's punch card was designed to record such designations as
"temporarily absent" for refugees and "in a concentration camp." No wonder
that even Burgdrfer praised the census as "an extraordinarily extensive
(maybe even too vast) program of registration."

Burgdrfer elaborated on how the census takers handled Gypsies afraid to
admit their extraction. "Settled gypsies," wrote Burgdrfer, "wanted to
avoid answering on the question of ethnicity with the specific term
'gypsy' and often claimed they were Romanians... Therefore, counting
officials and inspectors received orders to make the official entries
according to the countees' wishes, but add a comment stating that in their
opinion or in the general opinion of the community they were considered to
be Gypsies." Hence, the IBM tabulations would record them as Gypsy
regardless of the ethnic box checked.

"Even more difficult is the statistical registration of so-called forest
gypsies and wandering gypsies," Burgdrfer continued. "We met a number of
forest gypsies (these are gypsies, who for a small compensation to the
owner of the forest settle temporarily in a part of the woods, in order
to produce wooden spoons and the like, which they proceed to sell on
towns' markets) in the area of Strehaia. And soon afterwards in the same
region we met so-called wandering gypsies, who make their camps somewhere
along the road and who earn their living by mending pots and the like,
apart from begging and thievery. In this case, we could check if the
registration of wandering gypsies worked this time... but wasn't
successful in earlier censuses."

Burgdrfer explained how special measures were needed to make sure all
three types of Gypsies were registered. "At the census of 1941 police
stations," he recounted, "... each police station had to try on the date
of the census to register all wandering gypsies using the census lists.
They had to report to the Central Institute of Statistics, if there were
wandering gypsies present in their territory at the time of the census and
if this was the case, they had to include them in the census; if it wasn't
reported, than it was 'a dead loss.' Dead losses were to be examined in a
special post-control. In this fashion it is hoped that in the census of
1941 all gypsies not only settled, but also forest gypsies and primarily
wandering gypsies are registered completely."

The census was also used as an identification card. "Every head of the
household recorded in the census," stated Burgdrfer, "has to receive a
receipt and carry it at all times. On the road Dr. Golopentia stopped a
group of wandering gypsies and demanded to see their certification, which
they could produce much to my surprise." The same method of
census-receipt identification had been pioneered against Jews in Poland
just before they were sent to concentration sites and ghettos.

Prior to IBM's 1941 system of census cross-tabulation, all three different
types of Gypsies in Romania, regardless of whether they wandered, resided
in forest camps or settled in villages, could not all be efficiently
identified. "An exact investigation of gypsies in numbers has not been
possible until today," boasted Burgdrfer, "but everyone hopes that by
special control measures for wandering gypsies, etc., this census will
result in a somewhat proper registration of gypsy totality." That said, he
remained skeptical about Gypsies of mixed descent. He lamented that it was
"bordering on impossible, to statistically register Gypsy half-breeds, who
pose a serious problem, from a race-psychological perspective."

He concluded, "The total number of [Romanian] Gypsies (without counting
Gypsy half-breeds) is estimated to be 300,000."

IBM's subsidiary in Bucharest was incorporated on March 4, 1938, as
Compania Electrocontabila Watson with approximately $240,000 in equipment,
punch cards and leaseable machines. The unit quickly became profitable.
The subsidiary's main clients were the Communications Ministry, census
bureaus, statistical offices and railroads. Watson's decision to
incorporate coincided with Romania embarking on an enhanced war footing.
This martial program would include massive orders of Hollerith equipment
and punch cards. IBM Europe was unable to fill all the leases requested by
Bucharest, but it ramped up production to meet the need. IBM New York was
kept apprised of the progress by Geneva.

Company executives had worked with Romanian military committees early in
the war to scrutinize each commercial installation in the country,
identifying which could be requisitioned by the War Ministry. These
machines were to be relocated to secure sites in the countryside when
fighting broke out. Special arrangements with the Romanian War Ministry
exempted IBM supervisors and engineers from the draft to assure continuity
of service.

A few months after Lier arranged the shipment of 17 additional machines
from Poland to Bucharest to process the Romanian census, the United States
declared war. Shortly thereafter, Axis-aligned Romania was deemed enemy
territory under General Ruling 11. But IBM needed to finalize commissions
owed to the Italian bank in Bucharest that covered delivery guarantees.
Writing on June 18, 1942, on corporate letterhead displaying equally the
name of IBM in New York and IBM Europe in Geneva, Lier tried to secure
from the American commercial attach in Bern a special license to pay the
bank commissions.

Lier wrote, "In the middle of last year, our Romanian company contracted a
large order with the Romanian census authorities for the execution of the
census of the population of Romania. Prior to giving that order to our
Romanian company, the Romanian Government required a bank guarantee to be
filed with the Banque Commerciale Italienne et Roumaine in Bucharest to
cover the delivery of the equipment foreseen by the order... May we
therefore request you to issue a license which would authorize us to cover
the amount of Lei 111,348 by remitting this amount in Swiss Francs to the
Societe de Banque Suisse in Geneva."

The American legation denied Lier's request and suggested he contact the
Treasury Department in the United States. Lier asked IBM New York to
handle the matter directly with Washington.

As late as January 1944, Jurraand Schotte, formerly of the Swiss office
and now Lier's counterpart in New York, acknowledged to Justice Department
investigator Harold Carter that he knew that punch cards at the Central
Institute of Statistics contained information on census, population trends
and "special studies of all minority groups in Romania." Schotte also
confirmed that Romania's railroads maintained "a large installation of
machines" located at the Communications Ministry. The railroad's
Statistical Department alone utilized as many as 1.7 million cards
annually, and its Traction Department 3.34 million more. Those cards were
printed on IBM's Swift Press in its busy Bucharest facility, which was
functioning at its absolute capacity of 20 million cards per year.

Romania was liberated from fascist domination by Russian forces in late
August 1944. On September 2, 1944, IBM Bucharest cabled a report to IBM
Geneva: "Company in working order. Cable instructions for changed
circumstances. Arrange urgently protection of property and personnel."

IBM New York later sent a note: "Your telegram of the 12th October seems
to indicate that your present situation is normal and that you are
proceeding with your work as best you can."

The company then asked for a comprehensive 11-point report on all
financial statements, including profit or loss, and rental revenues by
customer, for the years 1942, 1943 and 1944. In addition, the company also
wanted an immediate estimate of future prospects in war-ravaged Romania,
broken down by machines that could be immediately rented, personnel needed
and spare parts required. New York also wanted to know if Romania had made
its quota: asking for "points installed and uninstalled to date." This
way, the Romanian subsidiary could take its rightful place in IBM's 100
Hundred Percent Club for outstanding performance.

Romania was liable for war reparations, including $20 million to pay
American claims, $50 million to Britain for its claims and approximately
$300 million for Russian claims.

By late July 1945, IBM had lodged its own compensation claims for war
damage. The total of $151,383.73 included $37,946.41 for damaged Hollerith
machines. It also called on State Department intermediaries to secure its
bank accounts in Romania.

Romania was not the only place IBM assisted in the identification and
persecution of the Gypsies. For example, in Czechoslovakia, Gypsies
constituted the second largest ethnic minority. Nazi raceologists and
population statisticians were especially concerned about racial
contamination from Czech gypsies.

In November, 1936, Watson approved a card printing plant in a small town
near Prague, where 16 presses and two cutting machines were installed. The
next year, Georg Schneider was hired as an additional salesman for Prague.
Within about a year, Schneider was transferred to Dehomag in Berlin "as a
salesman and studying the German organization." He met Watson in Berlin,
as well as the company's leading Swiss-based supervisors. By that time,
Czechoslovakian State Railways was utilizing 52.2 million punch cards per
year. In 1939, IBM Geneva and Dehomag agreed that Schneider should return
to occupied Prague, where about 60 employees worked, as the new co-manager
working with director Emil Kuzcek, where some 60 employees worked. At
about that time, just after the invasion, the Third Reich opened the
Statistical Office for the Protectorate of Bohemia and Moravia, located in
Prague. IBM did not list itself in Czech commercial registries as owning
its own subsidiary. Instead, 102,000 of the subsidiary's 200,000 Kroner
value was held by IBM's attorney in Prague, Stefan Schmid, and 98,000 by
then-IBM European General Manager John Holt, both men acting as nominees
for IBM New York.

On July 4, 1945 just weeks after the war ended Schneider, the manager of
IBM's Czech subsidiary, wrote a warm letter to Watson in New York,
summarizing his loyal efforts on behalf of the New York office. "I beg to
give you my report about the IBM office in Prague, Czechoslovakia... All
the interests of the IBM were in good hands. The $-rentals were
transferred to the account of IBM in Geneva, after begin [sic] of war with
U.S. All $-rentals must be converted at the rate of exchange of K25.02
Crowns = $1 and stored on the blocked account of IBM in Prague."

Schneider added that he met Watson's emissary Chauncey in Berlin, after
the United States entered the war, to obtain IBM New York's permission to
disguise German machines as Czech. "I made in 1942," Schneider reminded
Watson, "with Mr. Chauncey, visiting Berlin, an agreement and so we were
authorized to buy machines from the Dehomag and to sell or lend [lease] in
our name. From each machine we had to pay a license-tax [royalty] to the
IBM."

In the concentration camps, IBM's code for Jews was 8. Its code for
Gypsies was 12. General executions were coded as 4, death in the gas
chambers as 6. Only Jews and Gypsies were systematically murdered in gas
chambers.

When Gypsies were allowed to work in camps, they received a prisoner
number compatible with the IBM tracking systems maintained by the S.S.
Economics Administration, which operated all camps. All Gypsy cards, once
processed, were stamped with IBM's trademark name, Hollerith Erfasst
German for "registered by Hollerith." Gypsies worked in camps across the
Third Reich, including Mauthausen, IBM coded 7; Buchenwald, IBM coded 2;
and Auschwitz, IBM coded 1. Nearly every concentration camp maintained an
IBM customer site called Hollerith Abteilung, or "Hollerith Department,"
some with machines, some just with card-sorting operations and some just
with forms that prisoners prepped for Hollerith processing.

IBM machines required on-site service, whether that was in the huge
Hollerith Bro situated in the I.G. Farben factory complex housed in
Barracks 18 next to German Civil Worker Camp 7, about two kilometers from
Auschwitz III, also known as Monowitz Concentration Camp or in the
Hollerith Service across from the parade plaza in Mauthausen, or in the
bombproof Hollerith Bunker just outside the gate at Dachau. No machines
were sold, only leased. They always remained IBM property.

Although IBM Geneva left a massive paper trail, it has been hard to
unravel and decipher it. Deals and denials characterized virtually the
length and breadth of IBM's wartime presence in Geneva. Murky transactions
were fundamentally untraceable since they could filter through a maze of
banks or their branches, many of them newly created by Germany and
scattered across occupied and neutral countries. New York branches of
Swiss banks only complicated the trail, prompting Treasury officials in
Washington to dispatch squads of investigators to Manhattan seeking
evidence of trade with the enemy.

During the war years, IBM's own internal reviews conceded that
correspondence about its European business, primarily through its Geneva
office, was often faked. Dates were falsified. Revised contract provisions
were proffered to hide the true facts. Misleading logs and chronologies
were kept.

For instance, in late March 1942, Lier negotiated contracts with two
blacklisted Swiss munitions companies. Yet on April 27, 1942, Lier sent a
cable to IBM New York pretending that the two newly negotiated contracts
had actually been signed before the war, and then openly asking New York
to petition the U.S. government for a special exemption: "U.S. Commercial
Attach Bern requests we cancel contracts," cabled Lier. "Can you intervene
to maintain installations on basis contracts signed before war." But IBM's
own internal review later confirmed, "This is a definitely misleading
statement because, apart from the two contracts here under consideration,
three other contracts had been signed by the customer after the United
States had entered into the war... the machines were supplied and billed
by Geneva, and payment accepted. Mr. Lier made thereby a deliberately
misleading statement... This deception is the more serious since none of
the contracts signed before the war existed any longer."

IBM also found a pattern of falsified dates. For instance, Lier sent IBM
New York a cable July 21, 1942 asserting that a Type 954 Hollerith was
installed at a blacklisted customer site in Switzerland on December 31,
1941, just before tough new trading with the enemy regulations went into
effect. However, IBM's own fraud review, citing its Installation Report
No. 22, proved the machine was actually installed on March 31, 1942 with
rent beginning in April 1942.

Foot-dragging, false logs and contrived chronologies were commonplace at
IBM Geneva. For example, Lier had created an extensive log to demonstrate
how he regularly complied with American consular officials in Bern who
demanded IBM cease business with blacklisted companies. Eventually, IBM
had to admit in a letter: "Thus it has taken Mr. Lier thirteen days to
inform Mr. Herzog [an IBM sales manager] that two of his customers
appeared on the 'Black List,' when he [Lier] could have informed Mr.
Herzog by telephone on the day he was in possession of this information
namely on March 25 [1942]. In consequence," the company letter continued,
"[American Commercial Attach Daniel] Reagan had pierced the mystery
surrounding this case and [refused]... to accept Mr. Lier's...
chronological report, inasmuch as he accuses him of having had these
contracts five days after he [Lier] knew that these customers were on the
Black List."

On occasion, even IBM New York could no longer unravel the ruses its key
managers were weaving. IBM's own internal review of one case confessed
that after June 1942, "we lose track of the case as the correspondence
relating thereto was withdrawn from the files."

Despite IBM's own internal reviews summarizing a pattern of improprieties,
Watson allowed Lier to continue at his pivotal post. Just after the war,
with the authorities trying to arrest him, Lier was smuggled back into the
United States.

IBM has consistently refused to allow access to its Swiss office files,
its Polish files, its Romanian files or its Vichy files, which include
spare-part shipments to the Third Reich. However, in 1999, History
Associates, a Rockville, Md.-based corporate archival service, announced
its newest project in a client newsletter: "IBM Corporation: processing
8,500 cubic feet of archival materials from the origins of the company up
through the 1990s." The notation follows an article headlined: "American
Corporations Research Ties With World War II-Era European Subsidiaries."
Records measuring 8,500 cubic feet would fill a small warehouse twenty
feet long, twenty feet wide and more than 21 feet tall with thousands of
file boxes. But the 8,500 cubic feet reflect only the American holdings,
and not the many thousands of boxes held overseas.

IBM's explanation? "We're a technology company, not historians," spokesman
Carol Malkovich told media outlets throughout 2002.

When IBM's director of worldwide media relations, John Bukovinsky, was
asked about the disclosures in 2001 and 2002 of the company's involvement
in facilitating the extermination of millions of Jews, Gypsies and others,
he replied, "That was six years ago [sic]." When a reporter pointed out
that the Holocaust itself was some 60 years ago, Bukovinsky quipped, "So
what. What is the point?"





Edwin Black is the author of the award-winning "IBM and the
Holocaust"(Crown Publishing, 2001)

(source: Forward)