Thomas J. Watson
Born 1874 · Age 151
American businessman; long-time chairman and CEO who transformed CTR into International Business Machines (IBM) and built it into a global leader in tabulating machines and early computers.
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Life & Career Timeline
Born in Campbell, New York
Thomas John Watson born to Thomas and Jane Fulton White Watson in Campbell, Steuben County, NY.
Attended District School Number Five
Attended the one-room District School Number Five near his family farm in East Campbell (late 1870s).
Attended Addison Academy (teen years)
As a teenager he attended Addison Academy in nearby Addison, NY.
Completed course at Miller School of Commerce; became bookkeeper
Took a year's course in accounting and business at the Miller School of Commerce (Elmira) and left in 1891 to work as a bookkeeper for Clarence Risley's Market at $6/week.
Became traveling salesman (organs & pianos)
Joined a traveling salesman (George Cornwell) peddling organs and pianos around farms as a door-to-door salesman.
Briefly sold sewing machines; fired after saloon incident
Worked briefly selling sewing machines for Wheeler & Wilson; reportedly lost his outfit after a night of drinking and was fired (anecdote passed through family sources).
Opened and lost a butcher shop in Buffalo
Started a butcher shop in Buffalo which failed financially, leaving him without funds; he had an NCR cash register at the time that led him to approach NCR for work.
Hired by National Cash Register Company (NCR)
After persistent calls to the Buffalo NCR branch manager John J. Range he was hired in November 1896 as a sales apprentice; Range became an important mentor.
Assigned to run NCR Rochester agency
After becoming NCR's top eastern salesman, he was assigned to run the struggling Rochester agency and significantly increased its market share.
Called to NCR head office in Dayton, Ohio
Recognized for success in Rochester, Watson was called to NCR's head office in Dayton for higher responsibilities.
Convicted in Sherman Antitrust case (NCR)
NCR executives including John Patterson and Watson were convicted for illegal anti-competitive sales practices and sentenced to one year imprisonment (public outcry followed).
Married Jeanette Kittredge
Married Jeanette M. Kittredge (from a prominent Dayton railroad family) on April 17, 1913; they eventually had four children.
Hired as General Manager of Computing-Tabulating-Recording (CTR)
Charles Ranlett Flint hired Watson as general manager of CTR on May 1, 1914; CTR comprised five companies and had roughly 1,300 employees at the time.
Became President of CTR
Approximately 11 months after joining CTR Watson was elevated to president when legal matters from his NCR period were resolved.
CTR revenues grow to about $8M
Under Watson's leadership CTR grew rapidly; by 1917 gross revenue reached approximately $8 million (up from ~$4M in 1914).
First executive training program launched
In 1918 some 70 managers enrolled in CTR/IBM's first executive training program—an early sign of Watson's focus on employee education.
Introduced electrically operated tabulator with automatic feeder & printer
CTR marketed an electrically operated machine (automatic card feeder and built-in printer) that advanced punched-card processing capabilities.
CTR gross revenue reached $14M
By 1920 CTR's growth continued and gross revenues were approximately $14 million.
Renamed the company to International Business Machines (IBM)
CTR was rebranded as International Business Machines (IBM) to reflect global expansion; Watson continued as head and shaped corporate culture.
Addressed first IBM Executive School
Watson addressed the inaugural IBM Executive School (company training for managers) continuing his emphasis on sales and management training.
Opened the IBM Schoolhouse
Watson established the IBM Schoolhouse (1932) to provide employee education and training at scale.
Became Trustee of Columbia University
Appointed a powerful trustee of Columbia University on June 6, 1933, a role he held until his death and used to influence academic and research collaborations.
Moved manufacturing employees from piecework to hourly wages
Introduced hourly wage system for manufacturing employees in 1934—part of Watson's paternalistic, employee-focused benefits program.
Filed US trademark for 'THINK'
IBM's first U.S. trademark was for the name 'THINK' (filed June 6, 1935) for a periodical—Watson had used 'THINK' as a cultural slogan since NCR days.
U.S. court decision on punch card purchasing practice
In 1936 the Supreme Court upheld a lower court decision requiring IBM to cease certain tying practices (requiring customers to buy punch cards solely from IBM), though IBM remained dominant.
Elected President of the International Chamber of Commerce (ICC)
Elected ICC president in 1937 and delivered the keynote 'World Peace Through World Trade' at the ICC biennial in Berlin.
Received Order of the German Eagle in Berlin
Awarded the Order of the German Eagle (a Nazi-era German medal) at the 1937 ICC meeting in Berlin, a controversial honor later returned.
Received honorary Doctor of Commercial Science (Oglethorpe)
Awarded an honorary doctorate (Doctor of Commercial Science) from Oglethorpe University in 1939.
Returned the German medal
After debate and U.S. State Department counsel, Watson sent back the Order of the German Eagle in June 1940.
Reported compensation of $517,221 (1941)
In 1941 Watson received the third-highest CEO compensation package in the U.S.: $517,221; he reportedly paid 69% in taxes on it.
Received Silver Buffalo Award (Boy Scouts of America)
Honored with the Silver Buffalo Award in 1944 for service to youth through the Boy Scouts; he also served on the national executive board.
Funded Watson Scientific Computing Laboratory (Columbia)
Watson funded the Watson Scientific Computing Laboratory at Columbia University (initially $1M, sources cite up to $5M total over time) to pair IBM computing with scientific research.
IBM supplied land & funding for Triple Cities College (Binghamton Univ.)
In 1946 IBM provided land and funding for Triple Cities College (an extension of Syracuse University), which later evolved into Binghamton University (Harpur College).
Dedication of the Selective Sequence Electronic Calculator (SSEC)
IBM dedicated the SSEC at 590 Madison Avenue (1948), a machine combining electronic computation with stored program elements — precursor to later computing milestones.
Created IBM World Trade Corporation
Established the IBM World Trade Corporation (1949) to oversee and grow IBM's international business; expanded global footprint aggressively in the 1930s–40s.
Named Chairman of IBM's Board (per some sources)
Sources note Watson became chairman of IBM's board in September 1949 while continuing executive oversight; exact corporate titles varied in different records.
IBM 701 (Defense Calculator) debuts; early computer leasing
IBM introduced the IBM 701 (its first production business computer) in 1952 and leased units (reports cite ~20 leased machines at ~$24,000/month each).
U.S. government civil antitrust suit filed against IBM
By 1952 IBM's market dominance prompted a civil antitrust suit alleging control of over 90% of tabulating machines in the U.S.
Appointed Thomas J. Watson Jr. President of IBM
In 1952 Watson Sr. elevated his eldest son Thomas J. Watson Jr. to company president as part of a planned succession (Watson Sr. remained chairman).
Donated family farm and $1,000,000 to Methodist Church
In 1955 Watson and his wife gave their family farm and $1,000,000 to the Methodist Church for a retreat center named Watson Homestead.
Chairman of Elmira College centennial; donated Watson Hall
Served as chairman of Elmira College centennial committee and donated Watson Hall, a primary music and mathematics building.
IBM at Watson's death — revenue and headcount
At Watson Sr.'s death IBM reported roughly USD 897–900 million in revenues and roughly 60,000–72,500 employees (figures vary by source).
Retired; Thomas J. Watson Jr. became CEO
Watson Sr. retired in May 1956 and handed full leadership of IBM to his son Thomas J. Watson Jr.; Watson Sr. stepped down as CEO/chairman role transitioned.
Died in Manhattan, New York City
Died June 19, 1956 (heart attack reported) in Manhattan; buried at Sleepy Hollow Cemetery. At death he was regarded as one of the richest men of his time.
Jeannette Watson establishes Thomas J. Watson Foundation (posthumous legacy)
In honor of Watson, his wife Jeannette established the Thomas J. Watson Foundation in 1961 (foundation advances education and world affairs).
Thomas J. Watson Fellowship created by the family
Watson's children launched the Thomas J. Watson Fellowship in 1968 to give graduating college students a year for independent international study.
Posthumous induction into Junior Achievement U.S. Business Hall of Fame
Thomas J. Watson Sr. was posthumously inducted in 1990 into the Junior Achievement U.S. Business Hall of Fame.
Key Achievement Ages
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