IBM Punched Card Manufacturing
IBM's Fred M. Carroll developed a series of rotary type presses that were used to produce the well-known standard tabulating cards, including a 1921 model that operated at 400 cards per minute (cpm). Later, he developed a completely different press capable of operating at speeds in excess of 800 cpm, and it was introduced in 1936. Carroll's high-speed press, containing a printing cylinder, revolutionized the manufacture of punched tabulating cards. It is estimated that between 1930 and 1950, the Carroll press accounted for as much as 25 percent of the company's profits
Discarded printing plates from these card presses, each printing plate the size of an IBM card and formed into a cylinder, often found use as desk pen/pencil holders, and even today are collectible IBM artifacts (every card layout had its own printing plate).
IBM initially required that its customers use only IBM manufactured cards with IBM machines, which were leased, not sold. IBM viewed its business as providing a service and that the cards were part of the machine. In 1932 the government took IBM to court on this issue. IBM fought all the way to the Supreme Court and lost; the court ruling that IBM could only set card specifications. In another case, heard in 1955, IBM signed a consent decree requiring, amongst other things, that IBM would by 1962 have no more than one-half of the punched card manufacturing capacity in the United States. Tom Watson Jr.'s decision to sign this decree, where IBM saw the punched card provisions as the most significant point, completed the transfer of power to him from Thomas Watson, Sr.
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