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The book, oalled "Dianetics: Modern"Science of Mental iHealth" startled the publishing world, and Hubbard, by cliabinc.high into the best-seller listing of the New York Tiaes and steing there for months. Such instant popularity found Hubbard ur.prepared for the floods of mail and pleas for help.

Hubbard, interested only in research, financially in-dependent without such royalties, was glad to listen to a propcfrom one C. Parker Morgan and his publisher to let them fora aFoundation to service this demand. Seven'.trustees, of whichHubbard was only one, formed on June 1, 1950 the Hubbard DianetBesearch Foundation of Elizabeth, New Jersey. Hubbard gave thethe book and its royalities and returned to his own pursuits, j

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* This organization, however, pressed heavily upon him •for lectures and disturbed his own routine. Yet thi# corporati jinsisted on growing, forming other corporations in Illinois,Cal ioraia and Hawaii, each with a duplicate directorate.- ]

In November, 1950 Hubbard became convinced that the \corporation was not sound and that it would not attai* to its "" jprofessed goal of helping people. He attempted to-withdrasr-his Iname from it and was variously inveighed against. He had only , |one vote in seven. Forced to leave it in possession end cont- , |inued use of his name, he retired in December to Palm Springs, i jCalifornia where he set up a modest research laboratory* *'4tfeo) !he; did not seek them, aany people beaan to coae -t« *»!•» in F-*la I .!Springs. This serious!v i-ap^iica the business of that foundstio j«uch «* 'r«-i jn Los Angeles for Hubbard charged nothing.

A, E. van Vogt, the principal mover in the los IngcleFoundation and others were intensely provoked at Hubbard's withdrawal. Hubberd's wife, from whoa he had been separated, alsobecame incensed *t nim. For public appearance she had been aFoundation director. With the obvious.coating failure of theFoundations and with it a failure of the income she drew from i

Hshe threatened Hubbard with public scandal ifthe Foundations.

&

did not suppor

^ busy writing a new book, refused to lend anycredence to these threats or those of the Elizabeth board andwent to Cuba'where he completed a 125,000" word book in i**e nextaany weeks. La their young child had always been under his, noher mother's care, the child accompanied him.

True to her thrs**ts ansl those of the Foundation trusta .great deal of scandal was stirred «p. A receivership was gaiin Los Angoles by this wotnan and the trustees to seize controlthe Foundations and many statements were made to the press.

Hubbard made no statements of any kind durino all thiperiod and when ho became aware that they h?d been, aade, orderehis separated wife to hist, had her sign a confession*to perjury(copy enclosed) and applied for and received a divorflfitfrom herwithout alimony to her. *&mF"*-

Meanwhile the Elisabeth Foundation over whSfelTHubbardnev«>r had power beyond his personality, sold itself to one

Don S. Purcell, an oilman in Kansas.

Purcell moved the Foundation to Wichita, Kansas andHubbard, having completed his book, went to Kansas to settlejrarious affairs.

Considering that* Purcell wished only .to make money frDianetics, Hubbard sought to reform the attitude of the FoundstTo accomplish this he supported himself in Kansas by writing &n<lecturing and finally, after a few months, unable

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to bring about a good public presence on the'part of the -Foundation and Purcell, he resigned from all .connections .in early 1952 and refused- Purcell and others any furtherpermission to use his name or work*

Purcell'• answer was to file for bankruptcy withinone month conceiving that the Foundations could not continuewithout Hubbard's support. Purcell bought the Foundationsfrom bankruptcy as his personal property shortly after andcontinued them in business, but, unable to use Hubbard's nameor additional work, the organization The Oianetic Foundationof Kansas came to exist only as a shell, quite inactive today

i' >~ After resigning in early 1952, Hubbaid cam* toPhoenix to visit his parents, likedthe city and with'his wifeMary Sue whom he married early in 1952, settled here* Heopened a quiet office which became that fall (1952) the HubbaAssociation of Scientologists. He. had reverted "Dianetics"back to its original naae, 3cientology.

This organization was founded by some five hundredpeople in various parts of the world who had long been inter-ested in Hubbard's work. Publishing a few books locally andissuing twice a month, the Journal of Scientology, the HAShas continued a quiet carrer in Arizona. It has opened upbranch offices in Caaden, New Jersey and London, England. Th«*«~-1*tion exists to publish material related to behaviorand t<* tia»; 4- ;.: \»4 -fT%* '• Scientology.

The Hi'3 is the first organization in the tie±a vi"Dianetics" and Scientology to be controlled by Hubbard. Itpays its bills promptly as any Phoenix business firm with whi-it deals can attest. <-Ithough any organization dealing withbehaviour can attract hangers-on, there has been no consequenof this in the HAS. Hubbard's policy of quiet, orderly busi-ness and investigation is clearly manifested in the gneral >good repute of the HAS in-Phoenix. j

In so far as possible the HAS has sought to associaitself with steady and reliable people. It does permit its :name and the name Scientology to be used by autonomous organ!zations*-. Such, called associates or groups, exist in many ciThey use HAS materials and pay a membership fee but otherwisehave no connection. Whey they e m financially or seem to hurHAS repute, their membership is cancelled, This has happenedrecently in Los Angeles. The H/.S has no other control over ]such persons. 3

The addresses off the HAS * » 806 North Third Street*Phoenix, Arizona,507 Market Street, tfamden. New Jersey, 163Holland Perk nvemie, London, England. The Caaden and Londonoffices are run by committees.

The HAS, under the management of Hubbard -tt«» « twc,year record of good repute and responsibility* Ife&wtvare, !«• is Hubba rd, that the 1950 blatant use of HubbardW««»e by

Jarly Foundations has often reflected against HAS progress. •t is aware of the mountains of publicity generated by the :sudden end strange popularity of a book* The HA3 is also &vathat it is the first organization controlled by Hubbard and tit enjoys good public reputation as well as good credit. Itis content to pay its way, has no great ambition to riches anbuilds solidly as it goes* ' '—. r

The HAS recently-rented-quarters at 401-/1 East Rootevelt and 616 Korth Third Street. The latter address was oneoccupied by a psychologist. Dr. Gordon Beckstead, who was in)no way connected with the HA3. £

Awakening recently to the fact that many of its in>[tereeted people were ministers, the HAS has.assisted them to!form churches such as the Church of American Science and th* •Church of Scientology. Also, whan friends of Hubbard in Eare

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•~~-Vr • . pointed out to hla that the hoae organiration'of psycho- ~~'"' -v "•-: analysis, the Freudian Institute of Vienna, was now in the••-. - " Russian sone of Austria and desired removal/Hubbard helped.;. : *'. finance the organisation of the "Freudian Foundation of

"*• v I... Aaerica' to be offered to those in Vienna should they desire;• •>.•••• -":" to avail themselves of it. In the latter and in the churches,

" '-.. '. the WI3 has no further control or interest.

As 3cientology is proving it can do much for dis- 'abled veterans and others such as they, the W3 aay soon make iScientology available to the disabled as a public service.

The HAS business gross is" about $10,000 • •onth. It'has no profits or dividends. It pays Hubbard's expanses in

..i~--writing and investigation. It finances the processing, with ''. Scientology of indigent and disabled people* ' >f?.

" * ' There Is no broadly stated medical opinion of Seien-• tology, aainly because it does not in any way intend or preten. to encroach upon medicine. . Its field in the study of Knpwiedc. f

itself and its benefits are more closely allied to philosophy •*; and religion than to medicine or ptyclvology. If one "gct»-wel \in the process of knowing more about himself or Mankind the , }

vbenefit derived froa;knowledge gained, not treatment received.' }

Aside froa offering public services, the fir« two-ryear policy of'the H/.S- will contir.u* •«• h* '•"lloiwed. To neithdefend nor attack on the public stage t>ut to ke«r • »- -i. it 1.house, financially and ethically soond. . .. '

Sincerely, /"• "Board of. directors

/

John Galusha, Secretary

r M. KJLOOKC w. v*.JOMN L. MC nn i iw , M K .«.wiujimnnM,w. KA«. «. MUMBT. «. cWAMUN •• UAOMUMH. WMHi. MAWSAUCT CMU1 »M«TM. » Msrc»A>o u. Mocuua. M > « " " e- O»««»««K. IO*»«JOHN triNMS. HISS.

( c euHons. «"•(VCXAKO H. M"TM. 0 0 * ) ; =

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Mr.' BerbaMr. Mohr.Mr. P»r«nn«'Mr. Sos«iiMr. TiMr.Mr. Wi»tcm*4.Tele. K »Mr.Jtf G

Mr. J . Edgar HooverDirector

\'.Pederal Bureau of Investigation'"Department of Just ice'Washington 25, D. C.

Dear Mr. Hoover:

e received a request from a member orthej^rizona State Legislature for Informationabout the-background of the organization knownas thefcfchurch of. Scientology, whose local addresi s Jisted as East Roosevelt S t ree t , PKoenlx,Arizona. • —

l a t further Informed that an organisationwith the above name was said to be listed inthe local Phoenix, Arizona, newspaper as being

U connected with communism..' I would- be obligedj! to have whatever information your office may"have about this organization and its activities.

Yours very sincerely^

''

r, SL I

o ca Ro8amus_

62- f'

.-, ?-.•'•-^••^&3st

"TT

%O^1 * ~ ,

RECORDED-72

17, 1955PERSONAL AND COh'flDt.VTS 4L

Honorable Carl Sayden-. United State* Senate

Washington, D. C.

Jfy dear SeMtor*':''ft,^ '*"•-.

Tour letter dated Way 21, 2955, has beenreceived* Tour courtesy and interest in referringthis natter to my attention are indeed appreciated,

- • A- While I would like to be of assistance in ---connection vith the request directed to you by a •—-—member of the JLrt*ona State Legislature, I can only. .

.inform hit* that information contained in the filet "of this Bureau is maintained as confidential inaccordance- with a Departmental regulation,. I_avt surahe vill understand ay position as well as the necessityfor this regulation, and no inference *"<i2 be drawnbecause of my inability to be of assistance that wedo or do not have in out. file* the information he hasrequested, *- , . ~ ,-'• ,." - .

-;••-.-- As of po*sib2e assistance to you and foryour confidential information only, no investigationha* been conducted by thi* Burea i ^has been conducted by. thi* Bureau concerning t&e*: S *C h u r c h o f S c i e n t o l o g y .,•,••",.•-:•'•.:, .... ; ;. • •-, J - , - . . ^ " - — /

• Phoenih

5{Q&tfr«Ijr yours,Jr Ectgsr fiooret

.." i"~* 5 ' ' <J>

/ SAC, PSOSNIZt .". . . .> - . : - • - " ' : ' • • • •

^^V-Senator Bayden's letter..stattsm U'^

received, a request from. » «!*£&>•• of 4ke^«£k£Staff Legislature for^hsormation about the*$?md'of thei'Q-i'.aan.isn.-kitirk^jfintnn no. the Church,'

o.

o£ Scientology, whose local address is listed atEast Roosevelt Street, Phoenix, Arizona*

T am further informed that an organization withthe- above name was said to be listed in the localPhoenix, Arizona, newspaper as being connected withcommunism* I would be obliged to have whateverinformation your office may have about this organ»-i sat ion and its activities*" .. -*•

Sufiles reflect thai the Church of Scientoloaiis mentioned in your letter dated 3-28-55 entitledi

NOTE 0If YELLOW: :

Afore^mentioned Phoenix letter reports that-the- --~Church of Scientology has a business office located at 616North Third Street, Phoenix, and a meeting place at 403 EastRoosevelt Road, Phoenix* Furthermore, the HubbardAssociation of Scientologists, International, whose headquarterare at 616 North Third Street, has a school located at 403East Roosevelt Road, Literature of the Church of Scientologyclaims that it is completely independent of the HubbardAssociation of Scientologists* An official of the latterorganization stated thai the organisation has for its purposethe instilling of self-confidence and removal of mentalproblems in individuals. Another official reported that thefoundation is anti»Communist and has been criticized inCommunist publications* .

The files reflect that Senator Carl Hayden, Chairmanof Senate Appropriations Cow^^te^^reaards the Bureau highly.In April, 1955, he asked JflHHHHjjJH^*0' remind the Directorof the assistance that Sen^toraayaet^rendered in securingfunds to start the Identification Mvision* Although review ofBufiles failed* to^'substantiate this information, a cordialletter in that connection was sent to Senator Hayden*

(Salutation per Reading Room* It is noted

correspondence does not pertain to appropriations comnittsbusiness***. An original and copy of letter being sent tSenatowHayden. in- view of the- note on his letter that origtand copifc.b9 sent*

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6 -- S • - A

Q>1826 R St.Washington, D. C.July 11, 1955 \ >w

TO- THE PEDIS

FROEp

Hubbard

REAUBDF INVESTIGATION

ISUBJECT Further information on attack on Hubbard Assrt

- of Scientologists of Phoenix, ArizonaRef. First report of last week.

Information has- 3ust been received here that oneof the ma^or contributing factors in the attack uponand collapse of the Hubbard Assn. of Scientologistsin Phoenix Arizona was an accountant. <

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2?ame«i "tferry11 Rahn tl:i§ accountant first cans to c

the organization in inarch volunteering to assist in £accounting and income tax matters* A tax return m s £;given him for filing with the IBS. This tax return C}was then reported "by the IRS as never having been /jfiled and was then filed again by registered mailv §J C

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His presence insisted upon by Wm. Burke Belknapas Asan president, this Rahn proceeded, in the absenceof the treasurer and without her permission, to delveinto the books of the Assn. on the pretext that theywere in serious error. He pretended to discover manyomissions and cast a,.serious shadow on the organizationdirectors except BaHcaap. Many rumors were started bythis Rahn. which had no foundation in fact.

Finally Rahm brought into the picture a Mr. Brewer^reputed to lie from the IBS*-" Before employees in severalvisits Mr* 'Brewer.:'alleged that-1, while a director, wssactually engaged in some dark and underhanded activityand had used the organizatioii as a blind and that I wasin serious trouble with the ISS which, in consulting -~the main office, is apparently not the case, therebeing no reason for it. .,

Panieiced by this Rahn and Brewer-the organization •directors* Belknap, and one Carol Hadley spent little^time oa their actual duties and spent some six weeksinvolving themselves with this Rahn and Brevier, whicby Reason of such inattention, but the organizationoffS&fiws iHBiediate income and stopped all outgoingcorrespondence and activity, qu:L;te :sufficient _in thiscas*^ ta destroyjr|Lftji0l5)c$0 is whai1 happened.

I have had to act to *preserye ,wha,t few assttisand activities the organization, .had for with its localLcredit deatroved ftnfl thout! activity^ its'iiembershicredit destroyed and

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a> a>its finances, already involved in the Humphrey suitcollapsed. -

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% As no reports were due to the government untilOctafcear IQtb,* 1955 and as adequate time remained 'and is being used to make these reports, the introductio:of arstrange accountant against the wishes of theabsezxir reBsttrfir and the interjection of a supposedIRS agent - who may very well be an IRS agent inPhoenix - and the rumors and threats made by thesemen, it can be seen that this contributing factorwas important. . ..

The attack made by psychiatrists using evidentlyCommunist connected personnel on the Elizabeth NJFoundation in 1950 and 51 and the attack made onthe Wichita Foundation in 1952 all ended on thesame note of reports to ISS and much, rumor concerningwhat the IRS would do. However, so far as anyoneknows, the IRS itself took no real notice of the1950,51 and 52 attacks and waea contacted by myselfdid not seem to know anything about .the matter. ...The current attack on these organizations howeveris known to the IRS for the ISS has mildly interviewedme concerning matters* However the panic caused bythe wild accusations and insinuations of this Brewer,prompted evidently by Raha (pronounced, I -think, "Ran")are new and strange to my experience with the IRS.

However, the accountant at the ElizabethN..J. Foundation in 19^0 was continued in employmentby one John JSaloney and D. S. Purcell until ai(i«1951when 1, demanding better security and demandinga review of the books as Chairman of the Board,the post. % occupied in 1951 with, the Wi/c&ttaFouadatio n, 'was refused.- X ineifted on, then," -"•• " 'a. lie detector check eing madeeoa personnel ofwhom I was not sw*&* Ome 3XHv Rogers, an officer ofthe Elizabeth end tl$e Wichita Foundation registeredr -—

fositive on Communist leanings* The registrara Cole Alyneck (Sp?)) refused the test exid disappeared.The accountant, whose service had extended-over botliFoundations became very nervous, refused the test anddisappeared. Hid name is not now knovffi. to me. -

Thus we have a continued parallelism in theseattack^ oa Bianeties and Scientology in accountancy,Accoi^tancy was a target in 1950, 1951 and 1955 •by* a«ji$Tantanta strange to the organization or ofsuspicious circumstance. There might have beensome parallelism in the public relations department-",if the organization now maintained one for the „ ,1950 and 51 public relations man, Charles Leonard,registered positive on Communism in the police check

at Wichita in or around April of 1951, possibly Hay..

In 1952 an A.E. van Vog$r a writer from.. Canada ,—naturalised in the US and living in Los Angeles .;„..and a| heavy fo« of Pianetics and Scientology for ' -years! although pretending to be involved with itand em associate of Gene Benton, Sara Hollisterand others of stated Communistic leanings, made thestatement in writing many times that the IRS wasafter me and the organization, a thing which acall to the IBS failed to disclose. Thus the patternof reporting to the IRS or spreading rumors about theintention of the Internal Revenue Service has beencontinued and confirmed and is at this time evidentlythe contributing factor in ending the life of theHubbard Association of Scientologists.

To the best of my recollection the accountant-"Jerry •• RaJm appeared in the organisation about threedays after tie first despatch, was sent to the Departmentof Defense,, l»y wire, concerning a solution to brainwashing* I ean establish, this more accuratelywhen I obtain, if I can* possession of my f iland accounts. f ^'

ubbar

Note: To the best of my knowledge and belief and havingseen lately some copies of its accounts and seeing•to an audit of them at this time, there is nothingwhatever in error about or suspicious about theseaccounts. They are the ordinary routine accountsof a business of the type the Association is engaged in. 1RH

Q>

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DIRJCIGR, FEI (65=316*}}

i (100-4*813*

5/28/55

E» S fo le t te r to Bureau, 3/9/?5«

JMra* !»• B* RUBEARD, JB., one of the operators of the_ _ _ Int^rnationalj -••

~oilvlei»'"a1;_ _ _ ^ thatj

hrollea in tho Lubbape iTofeBsional College1.03 ^» Boosevelfc Koad Ffooenix* on Il/l5/5it»

for rr» absence of about tRi»ee-voolcs around Cbrlct-mas i'K'*|. vhcn sab joe t >et«riiOd .id •Istfi-hoao i s California,.he hac boon in attendance $%' tlio college eontihuounly

<and la. about to^coKolete a beginner*aordinarily extends over a period of two

1

.will «Q«lp him tp$;^Aodlis^ eonsulti-tions «a wa "auditor"lo the Aesocietioii"'df Soientologlsts which have for theirporposa Inst l l l iac s41f««onfldenc« end assisting IndividualsIn reMoving cental problems and acco^llehing specificfa>:-• 'yf-p* *fr">- ".+.nt&t* >hafc y-jb?fiat.'.5; • -yc«• idpncc l a l i s t e d as

and apparently'•plans.- ''to "relur !>•••" ;tliofe_; upoa. coagKLes&oa'ox h is course.

t of the &bbap4 Aasootation of Scien-onm3L# 616 « .Ihird St-raet, nnJLLLLl^

,eg«» xms?i?00JRlag tooase i s rented by tha*/-ssdelation-'of' Selentol'o^iatSf.-'International, to

students wti@ 'ar© ftt>'lr<bn<3inc.. .thd --ubbara ?ro—

regard to %hm Hubbard AssoclatLcn of 3cientologists tInternational^ a t tent ion l a directed to Hev&vk l e t t e r toEureau da'tod 37^1/51 anlJltlaf*BIIBBAT!iD DIftJIEfIC F::3Ei.KCI£

J£im££IIOWINCr# IS-R" wherein~iHe fbllowlfig~nr reportodf

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co l* San Dieco (1OO-U179)* RKCISTEKED

IS- 6 7 APR 7 1955, . - ' • • • - - • • v