The IBM 405 Alphabetical Accounting Machine is introduced. A functionally versatile product that featured a removable plugboard, the 405 remains an IBM flagship product until after World War II. Also brought to market are the first alphabetical duplicating printing punch, card marking verifier and Insto time stamp.
The IBM 801 Bank Proof machine to clear bank checks is introduced. A new type of proof machine, the 801 would list and separate checks, endorse them, and record totals.
The Dayton Scale Division is sold to the Hobart Manufacturing Company as IBM exits one of its original lines of business.
IBM factory employees are placed on salary, eliminating piece work and providing employees with an added degree of economic stability. A group life insurance plan is also initiated for employees, marking the beginning of IBM's pioneering employee benefits programs.