FROM THE FILES OF THE FBI 308
[xerox in very poor condition]
Business Protective Bureau, Wichita Chamber of Commerce, Wichita, Kansas
March 1, 1952
Memo to All Affiliated
Better Business Bureaus:
re: *Hubbard Dianetics Foundation
211 West Douglas, Wichita, Kansas
*International Library of Arts and Sciences, same address.
*Allied Scientists of the World,
same address and Denver, Colorado.
*Hubbard College, Box 634, Wichita
L. Ron Hubbard, President
James [?]. Elliott, Business Manager
*Scientific Press, Inc., same address.
The following information, secured from what we believe to be reliable
sources but for which we assume no responsibility, is believed to be
correct and up to date.
Hubbard Dianetics Foundation, Inc., a Kansas corporation, on February 21,
1952, filed a voluntary petition in bankruptcy, by action of its
president, Don Purcell, a Wichita business man. The corporation was
previously in receivership (appealed to State Supreme Court) as result of
motion brought by creditors in the [illegible word] prior to the move to
Wichita.
Allied Scientists of the World, and International Library of Arts and
Sciences, are subsidiaries of the Foundation, and presumably affected by
the same action.
The Foundation has had a contract with Hubbard which permits the
Foundation to use the name, Dianetics, and to act as distributor for
Hubbard's books. The contract specifies that if Hubbard is dissatisfied
with the Foundation's methods he has the right to cancel this [illegible
word]. In view of this fact, and since the name Dianetics seems to have
considerable possibility for commercial exploitation, the Foundation
should still be kept in your "live" files, and we will report when there
are further developments.
Hubbard is now completely separated from the Foundation, and has
[illegible word] Hubbard College, a Kansas corporation, non profit, with
temporary offices in the Derby building, Wichita, while they seek larger
quarters.
Scientific Press, Inc., a Kansas corporation, is [illegible word]
completely by Hubbard, for the printing and distributing of his books and
other writings.
Hubbard College isset [sic] up to teach Dianetics under the personal
supervision of Hubbard. Graduates become "registered dianeticists" and
will be licensed to give courses in dianetic processing in their own
offices or schools. The fees and charges for this licensing, with
necessary films and texts, are now $1,000, which is to be increased to
$1,5000 on March 1, 1952, to $2,000 on March 20, and to $5,000 on June 1,
1952.
[page 2]
Business Protective Bureau, Wichita Chamber of Commerce, Wichita, Kansas
_[illegible word] History_ Originally Hubbard Dianetics Foundation was
operating under four separate charters, at Los Angeles, New York City,
Washington, D.C., Elizabeth, N.J., and an office at Honolulu. None of
these are now in operation, we believe. The office at Honolulu was
discontinued because of an old law which forbade any sort of practice of
the kind. An action was brought against the New Jersey corporation for
the illegal practice of medicine, alleging that Dianetics was a form of
psychiatry, therefore subject to this law. Our information form [sic] an
interested party is that this case did not come to trial and was dismissed
when the concern left Elizabeth and came to Wichita.
In 1950 Don G. Purcell, a builder and oil operator of Wichita, became
interested in dianetics and was instrumental in moving the Foundation to
this city. The Foundation was then in financial difficulties, and Purcell
is reported to have invested considerable money in the enterprise,
becoming president of the Kansas corporation and active in the management.
This Bureau received various rumors and reports of lax business management
of affairs in Wichita, but nothing in the way of complaint from the public
until immediately prior to the bankruptcy action, at which time we
received three complaints that the Foundation had not lived up to its
teaching promises. Any claims for refunds could now have to be directed
to the trustee in bankruptcy. Elliott informs us that any students of the
Foundation who wish to do so may continue their course of instruction at
Hubbard College without further cost by assigning their claims to Hubbard.
[illegible word] are informed that prior to the bankruptcy action, Hubbard
had sold his stock in the Foundation, presumably to the Foundation or to
Purcell, but claims he has not been paid for it. He also claims to have
other financial claims as a creditor of the Foundation. The petition of
bankruptcy lists liabilities of about $212,000 and assets of about
$40,000.
_What Is Dianetics?_ (""indicates quoted from their literature, () are
ours.) Printed matter put out by the Foundation while under Hubbard's
direction states that "dianetics is the science of [illegible word]
behavior discovered and originated by L. Ron Hubbard, American engineer
and nuclear physicist. Under study for 20 years and under actual test and
application for five, dianetics is responsible today for saving the lives,
health and sanity of thousands of human beings."
"Life force is an energy not unlike other energies in some respects. This
energy (can) store [illegible word] such as those of physical pain and
(can) later re-inflict [illegible word] on the body." (Apparently the
stored "memories" Which are imprinted on protoplasm or body cells, are
called "engrams" and "dianetic processing" is the process of removing
them.)
"Processing is done by a skilled auditor, one who listens and computes.
The pre-clear (they do not use the word, patient) simply complies with the
easily followed requests of the auditor, and after 20 hours, more or less,
of processing is usually free from his chronic symptoms. The auditor
directs the pre-clear into various portions of the pre-clear's life.
(That is, asks questions.) No hypnotics, drugs, surgery, [illegible word]
or diets are used. It is mostly conversation between the auditor and
pre-clear."
- 2 -
[page 3]
Business Protective Bureau, Wichita Chamber of Commerce, Wichita, Kansas
"Psychosomatic illness such as arthritis, sinus trouble, neuralgia,
rheumatism, and others numbering 70% of man's illness were caused, Hubbard
found, by these storages of pain. Every psychosomatic illness has as its
root some old injury which has become continually inflicted just as though
it had never gotten well. Dianetic processing can remove all pain from a
lifetime, but such an effort is not necessary to relieve a single
psychosomatic illness, to make it unnecessary to wear glasses or to
receive depressions (such as caused by losses in the family)."
"Generally the rapidity of results leaves the pre-clear incredulous. But
this is an incredible age and Dianetics, like its sister, the A-bomb, is
incredible. It does what one would expect an actual miracle to
accomplish. Dianetic processing has on exceptions. Its human engineers
can help you." (In a processed letter, Hubbard says) "bluntly, we are out
to replace medicine in the next three years. We had better get a move
on."
L. Ron Hubbard was born March 13, 1911 Nebraska; educated at George
Washington University as a mathematician, and has worked in the fields of
ethnology and general exploration. He is also known as a writer of
science-fiction. His book, "Dianetics, the Modern Science of Mental
Health," was published by Hermitage House in1950 [sic].
This Bureau has made no attempt to evaluate any of the claims made by and
for dianetics, nor has it been furnished sufficient evidence to support
such claims. We have no information to indicate that the question of
whether dianetics processing conflicts with laws governing the practice of
medicine or the healing arts has ever been adjudicated, except in Hawaii
as previously mentioned. We have been informed, without verification,
that New York has recently passed a state law specifically regulating this
type of practice.
