FROM THE FILES OF THE FBI 300C

[continued from FBI FILE 300B]

The following article regarding two members of the Church of Scientology appeared in the November 25, 1969 issue of the "Los Angeles Times':

Motive Sought in Slaying of Youth, Woman

Only Clue Discovered Was Common Membership of Pair in Scientology Sect

BY DIAL TO RGERSON and JERRY COHEN Times Staff Writers

Police investigating the weird slayings of a youth and young woman pursued Monday what they termed the only common thread between the pair: their membership in the Church of Scientology.

The Scientology organization--a mystical, quasi-scientific group--verified that Doreen Gaul, 19, and James Sharp, 15, were members of the group.

"We are shocked and bereaved by this sudden and brutal crime," a Scientology spokesman said.

The deaths brought to 13 the number of seemingly motiveless murders in Los Angeles since the first of the year. As in the Tate case and other still-unsolved killings, the murders of Miss Gaul and Sharp were crimes of shocking brutality.

Miss Gaul had been stripped except for a string of Indian beads. Both had been repeatedly stabbed and beaten about the face and head. Their eyes were slashed.

They had been murdered elsewhere and their bodies dumped in an alley a half-mile from a hippie-like cult commune which Miss Gaul had left Friday evening for a Scientology session with young Sharp.

Police were concentrating on two aspects of the mystery: where the couple had gone Saturday night and where the crime occurred.

"It's difficult to see how a crime of this sort could be committed--one which would involve this much blood and this much noise--without someone noticing it," said Capt. Frank L. Brittell.

He said it could have been the work of a gang--because of the excessive number of blows rained on the victims. Police talked to scores of people in the Alvarado-Westlake district where the victims lived. Many were fellow Scientologists.

"These two people could have both belonged to the Meat Cutters Union or the church down the street, " said Brittell. "But the only thing they have in common in Scientology. This is the only thread we have so far."

Scientology had its beginnings in the Dyanetics [sic] fad begun in 1950 by science fiction writer L. Ron Hubbard, who now runs what he calls a worldwide church.

In Los Angeles, Scientology has four "church" and administrative buildings and a number of communal living quarters in old Victorian mansions on side streets in the neighborhoods near MacArthur Park.

"Auditors" who offer "parishioners" of Scientology a mystical version of psychological therapy have been ordered by the U.S. Food and Drug Administration to stop using a crude form of lie detector called the Scientology E-meter--a galvanome-

- 13 -

[next page]

ter with two tin cans attached.

It was learned that Miss Gaul had said that Sharp who came here from Missouri last June, was going to "audit" her Friday night. "Auditing" is a term applied to the process of achieving a "clear" state of soul.

The victims lived about a block apart. Sharp lived with an older Scientology worker in an old but well-kept three-story apartment building at 921 S. Bonnie Brae St. Miss Gaul had lived four days at a 14-room commune called Thetan Manor at 1032 S. Bonnie Brae. (Operating Thetan, in the language of Scientology, means reaching the advanced level of study in the cult.)

Sharp was the son of a prosperous salesman living in the upper middle class suburb of Crestwood, southwest of St. Louis. He left high school in June, with his father's permission, to study Scientology here.

"He was a very, very intelligent boy," the father told newsmen in St. Louis.

Miss Gaul, the eldest of four children, was graduated in the spring of 1968 from a parochial high school in Albany, N.Y. Friends said that until she became devoted to Scientology after graduation, the attractive young woman had been a devout Roman Catholic.

Her father told a newsman in Albany that she had apparently become disenchanted with Scientology in recent weeks.

Garb Described

"She was a good kid, but an emotional kid," he said. "She was always looking for green grass and rainbows."

Miss Gaul was wearing a skirt and blouse or sweater when she left Thetan Manor to go to Sharp's house. Mike Thompson, a resident at the commune, remembered her looks: "She was outa sight," he said Monday.

Shortly before midnight, a man taking a short cut through an alley between Arapahoe St. and Magnolia Ave., south of 11th St., found the bodies. They were so badly battered police at first believed them the victims of shotgun blasts.

Preliminary reports indicated Miss Gaul had not been raped.

Police said Scientology officials cooperated with them in their investigation. The Rev. Natalie Fisher, who describes herself as resident agent of Scientology's American St. Hill Organization at 2723 W. Temple St., issued a statement saying in part:

"This organization has no facts or information regarding the circumstances of the crime, but we are doing everything in our power to assist law enforcement agencies to see that justice is done."

Police said there was no apparent connection between the latest deaths and 11 others, including the five Tate murders, which have remained unsolved in Los Angeles County since January.

Other seemingly motiveless crimes included the deaths of a wealthy grocer and his wife in the Los Feliz district and the slaying of four young women in separate crimes.

- 14 -

[continued in FBI FILE 300D]

FROM THE FILES OF THE FBI 300D

[continued from FBI FILE 300C]

The "Los Angeles Times," issue of October 10, 1970, Part I, Page 23, contains the following article regarding Scientology:

Ex-Scientologist Tells of Fear' Atmosphere

McMaster Accuses Hubbard of Fostering Spiritual Tyranny Within Organization

BY JOHN DART
Times Religion Writer

One year ago an articulate but soft-spoken man named John McMaster was extolling the virtues of Scientology and L. Ron Hubbard, the founder of the worldwide, quasi-scientific "religion."

Appearing on television talk shows and giving lectures as Hubbard's personal representative, McMaster was eminently qualified. He was the first person to achieve Scientology's state of "clear," which purportedly gives a person full control of his mental processes.

Now McMaster describes the Church of Scientology and other organizations run by Hubbard as engaging in "spiritual tyranny."

"Ron was always busy getting everybody looking beyond the mulberry bush for a nonexistent enemy," said McMaster in a recent interview.

Discipline Group

The 43-year-old South African was in Los Angeles for the first time since he resigned last November from Scientology's Sea Organization.

Scientology was an out-growth of a book, "Dianetics," published in 1950 and written by Hubbard, a onetime science-fiction writer and Hollywood screenwriter.

For more than a decade, working from a yacht in the Mediterranean, Hubbard has elaborated on psychoanalytic techniques with the "E-meter," similar to a lie detector, and the courses offering "the road to total freedom."

The Scientology organizations have had run-ins with the Food and Drug Administration and Internal Revenue Service in this country and with some government agencies in other countries. However, Scientology officials claim that they have been falsely misrepresented by some disenchanted followers, government officials and the news media.

London Suburb

World headquarters is in a London suburb, but a large following exists in the United States, particularly in Los Angeles where the American Saint Hill Organization, 2723 W. Temple St., represents the only advanced-course center for Scientology in this country.

McMaster said he resigned because of "unnecessary harshness" in the organization "that kept people in a kind of electronic jitter." He said he also opposed his reassignment from a public relations mission to the United Nations to service aboard one of the Sea Organization's several yachts.

McMaster, still convinced of the value of Scientology's teachings and analytic techniques, recently gave some lectures in Phoenix and the Los Angeles area on behalf of a Dianology organization in Westwood run by Jack Horner, another ex-Scientologist.

Lecture sponsors in Phoenix, McMaster said, were told by Scientologists that "a different spirit was occupying the body of John McMaster." McMaster said he had heard that explanation used be-

- 15 -

[next page]

fore in Scientology to explain the changed attitudes of some persons.

A spokesman from the Church of Scientology, 2005 W. 9th St., denied that the church has said that of McMaster.

Regarding the circumstances of McMaster's resignation, the spokesman said reports had been made by Scientologists last year that McMaster was "holding the founder in contempt in public," was becoming money-motivated and was accused of conduct unbecoming a minister of the church.

"We started making every attempt to get him to undergo spiritual rehabilitation, but these attempts were thwarted," said the spokesman. A telegram was sent recalling McMaster for rest and spiritual counseling, but no reply was made, said the official.

Later Expelled

"At that point he left and went into hiding and tendered his resignation, but not through proper authorities," said the spokesman. For McMaster's "betrayal of trust" and other acts, he was later expelled from the church, the spokesman said.

McMaster left New York by freighter to his home in Durban, South Africa, but only after expressing the hope for some rapprochement with Hubbard.

While in Durban McMaster said he was approached by Scientologists who offered to give him some "Class A auditing (interviewing)" free of charge. "I accepted it as a peace offering but I asked my mother to come with me," said McMaster.

"It wasn't auditing. It was a security check--they were trying to find some crimes I'd committed," McMaster said.

Closed Book

"At this stage, they left me and I realized that Scientology was a closed book for me," he said.

McMaster said he has not denounced the techniques of Dianetics and Scientology "and never will." But the organization in charge has "built a structure and called it God," he said.

McMaster in February, 1966 became the first of thousands to achieve "clear" status.

If McMaster disagreed with the practices in Scientology, why didn't he quit sooner? "I felt that as long as I could get out and deliver the sane truth, this would show that all this ethics stuff (internal security) was perfectly unnecessary," he said. "It didn't work," he said..

- 16 -

[continued in FBI FILE 300E]

FROM THE FILES OF THE FBI 300E

[continued from FBI FILE 300D]

"Dianetics, the Modern Science of Mental Health", by L. RON HUBBARD, a handbook of dianetic therapy, published in June 1950 by Hermitage House, New York, New York, contains the following synopsis concerning dianetics, the basis of Scientology:

THE creation of dianetics is a milestone for Man comparable to his discovery of fire and superior to his inventions of the wheel and arch.

Dianetics (Gr., dianoua--thought) is the science of mind. Far simpler than physics or chemistry, it compares with them in the exactness of its axioms and is on a considerably higher echelon of usefulness. The hidden source of all psycho-somatic ills and human aberration has been discovered and skills have been developed for their invariable cure.

[there follows 9 Xeroxed pages of text, apparently from the 1950 edition of DtMSoMH, discussing the four dynamics of survival, the state of clear and how one can achieve it using dianetics, the reactive mind and engrams and their relationship to psychosomatic illness, the purpose and process of auditing, the time track, and an extensive discussion of prenatal engrams. The selection ends with the following paragraph]

This matter of prenatal life is discussed here at length in this synopsis to give the reader a perspective on the subject. We are dealing here with an exact science, precision axioms and new skills of application. By them we gain a command over aberration and psycho-somatic ills and with them we take an evolutionary step in the development of Man which places him yet another stage above his distant cousins of the animal kingdom.

- 25 -

***

[this ends the Los Angeles Field Office report, begun in FBI FILE 300]

FROM THE FILES OF THE FBI 301

OPTIONAL FORM NO. 10
MAY 1962 EDITION
GSA FPMR (41 CFR) 101-11.6

UNITED STATES GOVERNMENT
Memorandum

DATE: 5-29-75

TO: J.J. McDermott

FROM: [handwritten and illegible]

SUBJECT: [handwritten and illegible]

The attached __Publ. "Freedom"_ has been received in the Records Section, appropriately initialed, and indicated for file. By use of instant transmittal memorandum, all necessary recording and indexing will be accomplished. It is to be noted this form is for internal use only within the Records Section, principally by the Routing Unit where bulky material not accompanied by memorandum is usually received.

The enclosure, if bulky and not usually filed with other papers in file, may be detached but this action should be clearly noted under the word "Enclosure."

Enc.

FROM THE FILES OF THE FBI 302

Airtel

1 - Mr. J.J. McDermott
     (Mr. Farrington)
     (Route through for Review)

5/29/75

To: [BLACKED OUT]

From: Director, FBI

1 - Mr. V.V. Kolombatovic
1 - Mr. R.A. Bermingham

OPERATION AND TRANSPORTATION CORPORATION, LTD.
FOREIGN POLICE COOPERATION

[BLACKED OUT]

Captioned organization is connected with the Church of Scientology. The FBI is currently involved in litigation with this latter organization. In order to avoid complications in this regard unnecessary dissemination of information concerning captioned organization or the Church of Scientology should be avoided.

[PARAGRAPH BLACKED OUT]

RAB:mam

NOTE: This matter was coordinated with the Files and Communications Division; namely the Freedom of Information Act Section, who is handling litigations involved with above organizations.

FROM THE FILES OF THE FBI 303

Founding Church of Scientology
Of Washington D.C.

2125 S Street N.W. Washington D.C. 20008
202-797-1204

Rev. Lynn McNeil
President
Rev. Barbara Reeves
Vice President
Rev. Greg Gloor
Secretary

April 30, 1975

Clarency M. Kelley
Director
Federal Bureau of Investigation
Washington, D.C.

Dear Mr. Kelley:

On March 26, 1975, a representative of the world wide offices of the Church of Scientology, David Gaiman, met with Jean Nepote, Secretary General of INTERPOL.

The purpose of that meeting was reports maintained by INTERPOL, regarding our Church and Founder, which are false and based upon conjecture. Mr. Nepote was given documents to indicate their falsity in the hope that the matter which has enjoined our organizations could be quickly and easily terminated.

It is in this same spirit that I am writing to you.

Mr. Nepote has promised to ask the appropriate national authorities in each country involved to authenticate the documents. In the United States, that will be the Federal Bureau of Investigation.

I have already met with James B. Clawson, Deputy Assistant Secretary of the Treasury, who is familiar not only with INTERPOL but with our request. It was he, in fact, who recommended the March 26 meeting. Therefore, I would like him to serve as the liaison to Mr. Nepote when the authentication is completed.

Since you can appreciate our desire to expedite this matter, I would like to meet with you this Monday, May 5th, at about 2 p.m. to present the documents in question. Should that time be inconvenient, another can be arranged as I have come to Washington, in part, to complete this matter. I can be reached at the above number and address.

Sincerely,

[signed]

Rev. Vaughn Young
National Offices
Church of Scientology

cc: James B. Clawson
Treasury Department

A non profit corporation in the USA registered in the District of Columbia

FROM THE FILES OF THE FBI 304

OPTIONAL FORM NO. 10
MAY 1962 EDITION
GSA GEN. REG. NO. 27

UNITED STATES GOVERNMENT
Memorandum

1 - Mr. T.J. Jenkins
1 - Mr. J.B. Adams
1 - Mr. J.A. Mintz
DATE: 5/8/75
1 - Mr. J.J. McDermott
1 - Mr. W.R. Wannall
1 - Mr. H.E. Helgeson

TO : Mr. W.R. Wannall

FROM : H.E. Helgeson

SUBJECT: THE FOUNDING CHURCH OF SCIENTOLOGY
INFORMATION CONCERNING

By letter to the Director 4/30/75 Reverend Vaughn Young, National Office, Church of Scientology (CS), Washington, D.C., requested to meet with the Director to present to him documents obtained by CS showing that false or erroneous information is maintained by Interpol concerning CS and its founder, L. Ron Hubbard. According to the letter, Jean Nepote, Secretary General of Interpol, advised a representative of CS in Paris that FBI would be agency to authenticate documents obtained by CS and therefore Reverend Young was requesting a meeting with the Director for this purpose on 5/5 75.

Reverend Young and Hugh Wilhere, CS, were interviewed by me and Supervisor William N. Preusse on 5/5/75. Reverend Young had in his possession copies of documents which indicated Interpol had in its possession information from FBI concerning CS and Hubbard. He also had other documents obtained by CS which Reverend Young claimed refuted this information. It was determined from Reverend Young that information attributed to FBI came from West German Federal Criminal Police and an unknown reporter in Europe supposedly obtained from Interpol files and furnished to CS.

Reverend Young was advised that the FBI cannot authenticate any of the documents presented by him and it was further noted that various representatives of CS had requested information in Bureau files concerning CS and Hubbard through the Freedom of Information Act (FOIA), and that any documents desired by him may be made available to authorized representatives of CS. Reverend Young noted however that he did not want to wait for this to happen and would be in recontact with me this week to see if he can get an immediate reply to his request.

Reverend Young recontacted me again on 5/8/75 and at his request interviewed. Procedures on how to obtain Identification Record on Hubbard were explained to him and it was again

62-94080

CONTINUED - OVER

[page 2]

Memorandum to Mr. W.R. Wannell
Re: The Founding Church of Scientology
62-94080

reiterated that information desired by him must be obtained through FOIA and he should contact appropriate CS attorney. He was advised that if he desired information in his possession being made matter of record with FBI he should submit same to us and it would be so noted.

_OBSERVATIONS_:

This matter was referred to me as the exact reason for Reverend Young's visit to the Bureau was not known. Since it is now obvious that his request strictly pertains to material in our files, it is being recommended that any future contacts by him be referred to the Files and Communications Division. Reverend Young was informed that requests by officials of CS for information concerning CS and Hubbard are being processed and appropriate documents will be made available to authorized representatives of CS.

[PARAGRAPH BLACKED OUT]

RECOMMENDATION:

In future contacts with the Bureau by Reverend Young, he be referred to a representative of the Files and Communications Division handling FOIA matters.

- 2 -

FROM THE FILES OF THE FBI 305

[although the last page of this letter is missing, it appears to be from Reverend Vaughn Young]

The Founding Church of Scientology
Of Washington D.C.

2125 S Street N.W. Washington D.C. 20008
202-797-1204

Rev. Lynn McNeil
President
Rev. Barbara Reeves
Vice President
Rev. Greg Gloor
Secretary

May 11, 1975

Clarence M. Kelley
Director
Federal Bureau of Investigation
Washington, D.C.

Dear Mr. Kelley:

This letter is to confirm two meetings with your representative and to make a request that has come about as a result of those discussions.

On May 2, 1975, your Deputy Assistant Director for Intelligence, Hunter Helgeson, called me in response to my letter to you of April 30, 1975. He informed me that you were unavailable so I accepted his suggestion of meeting with him as your representative.

On May 5, 1975, accompanied by Rev. Hugh Wilhere of the Founding Church of Scientology, here in Washington, I met with Mr. Helgeson who was, in turn, accompanied by Special Agent Preuss, Intelligence. We met in the conference room across from his office on the 4th floor from about 2:30 - 4:00 p.m.

During that meeting, I explained to Mr. Helgeson that a representative from our world offices in England, Mr. David Gaiman, had met with Jean Nepote, Secretary General of Interpol, on March 26, 1975, to discuss reports circulated by that organization which were false and based upon conjecture. This meeting of the 26th had come about upon the suggestion of James B. Clawson, Deputy Assistant Secretary of the Treasury, who knew Mr. Nepote, had attended Interpol meetings in Paris, and was familiar with the organization, as well as being an ardent supporter.. He had, in the process, met with one of our officials while overseas as well as with myself here in Washington.

The report in question was from the Federal Criminal Office in Wiesbaden, Germany, to the Federal Minister of the Interior and dated 8 Mar 1973. In it, two reports from the F.B.I. were cited. The rest of the report was from other police agencies.

A non profit corporation in the USA registered in the District of Columbia

[page 2]

- 2 -

As a result of that meeting on the 26th, an exchange of letters occurred as well as the presentation, by Mr. Gaiman, of documentation to counter the false reports being circulated by Interpol. (See Attachments A, B and C for the letters exchanged.)

Mr. Nepote informed Mr. Gaiman that he would accept the documents and ask the appropriate national authorities (in each country involved since it was multi-national) to make a check of the contents of the document prior to making any corrections.

Since Mr. Clawson had helped to bring about the meeting, I met with him to inform him that I was going to bring these documents to the attention of the F.B.I. in order to facilitate Mr. Nepote's request. I asked Mr. Clawson if he would, being a party both sides were willing to deal with, assist in the matter by transmitting any documents/letters, etc., between the F.B.I. and Interpol. He agreed to be of whatever assistance within his capacity.

Thus I approached your office and met with Mr. Helgeson.

Our first meeting, on May 5, 1975, was quite brief as Mr. Helgeson was able to stay only a few minutes. However, we informed Mr. Preuss fully of our request, the reason, etc., and he, in turn, informed me of the avenues open to us by the policies of the F.B.I. He stated that he would brief Mr. Helgeson. I, in turn, told him that we would seek another meeting after Mr. Helgeson had been so informed, now that the matter raised in my letter of April 30, 1975, had been fully explained.

On May 7, 1975, I called Mr. Helgeson and set an appointment for the next day. The same four parties again met in the same room.

In that meeting, I again laid out the reasons for our request. For the record, and your own information, I would like to briefly summarize it here:

We are in possession of a report from the German Police which contains numerous falsehoods regarding our Church and our Founder, L. Ron Hubbard. (The report concerns "Scientology" so Mr. Hubbard is being cited as the Founder.)

We have sought, from the beginning, to have this report corrected and removed from circulation. Interpol, and the German Police, can certainly do the latter. However, since it draws from multiple-sources, we are taking the initiative to correct and update each area which was cited as reliable.

At the same time, we initiated a campaign regarding such practices. We seriously doubted that we were the first.

To better understand the systems that produce such practices as found in Germany, we undertook an extensive study of

[letter ends here; there is handwritten note at the bottom of the page: "3rd page can not be located 8-7-95 SRD"]

FALSE REPORT CORRECTION:

Statements Made by The F. B. I.
re The Church of Scientology
and L. Ron Hubbard, Founder

Compiled by the National Offices
Church of Scientology
5930 Franklin
Los Angeles, California 90028

(enclosed with letter to Director Kelley dated May 11, 1975, from Rev. Vaughn Young)

[next page]

I. Falsehoods Regarding L. Ron Hubbard Reported by the Federal Bureau of Investigation Followed by Complete Documentation to the Contrary.

A. The Federal Bureau of Investigation has reported the following falsehoods about L. Ron Hubbard:

a. "According to a report from the FBI in Washington, Hubbard was sentenced to a $25 fine on the 17th of August 1948 in San Luis, Obispo, [sic] California, for theft ..."

b. That he was declared bankrupt on 16 December 1952 in Philadelphia, Pennsylvania.

c. "On December 1950 there appeared an article in the magazine Look' with the title "Dianetics - Science or Hoax" from which it became evident that Hubbard is an insignificant writer of pseudo-scientific dime novels."

d. In March 1951, the medical examination board of the State of New Jersey brought charges against the Hubbard Dianetic Research Foundation on account of medical and surgical instruction without a license.

e. On 24 April 1951, the "Washington Times Herald" published an article in which Hubbard's wife, in bringing her divorce charges, designated him as hopelessly insane." According to the information in this article, a recommendation was made by competent medical consultants to admit Hubbard to a private sanitorium with a view to psychiatric observation and treatment of a mental illness known as paranoid schizophrenia.'

f. That "in November 1958, having been the object of a seizure of 20,000 pills of Dianazene', by the Food and Drug Administration, he was indicted for possession of dangerous substances.

B. _COMPLETE DOCUMENTATION TO THE CONTRARY RE: L. RON HUBBARD FALSEHOODS_:

A. ATTACHED IS THE SWORN STATEMENT OF RUTH WARNKEN, COUNTY CLERK OF THE COUNTY OF SAN LUIS OBISPO, IN WHICH SHE STATES THAT THERE ARE NO RECORDS OF L. RON HUBBARD AS A DEFENDANT IN ANY CRIMINAL ACTION DURING THE YEARS 1948-49. (SEE DOCUMENT 1).

B. THE BANKRUPTCY PROCEEDINGS IN QUESTION HERE WERE FILED BY THE HUBBARD DIANETIC FOUNDATION, INC. OF WICHITA, KANSAS. MR. HUBBARD'S ONLY CONNECTION WITH THIS CONCERNS A CONTRACT WHICH HE MADE WITH ITS PRESIDENT, DON PURCELL, ALLOWING HIM TO USE THE WORD "DIANETICS" AND DISTRIBUTE HIS BOOKS.

[next page]

- 2 -

DURING BANKRUPTCY PROCEEDINGS, L. RON HUBBARD WAS IN PHILADELPHIA GIVING A SERIES OF LECTURES. HE WAS SUBPOENAED TO GIVE EVIDENCE IN THE PROCEEDINGS. IN THE COURSE OF SERVING THE SUBPOENA, THE TWO DEPUTY U.S. MARSHALS WHO HAD THAT DUTY MANAGED TO UPSET THREE OF THE STUDENTS WHO WERE ATTENDING MR. HUBBARD'S LECTURES. THERE WAS A SCUFFLE, AND THE THREE STUDENTS WERE ARRESTED. FOLLOWING THIS INCIDENT, MR. HUBBARD HIMSELF ACCOMPANIED THE U.S. MARSHALS TO THE POLICE STATION, BOTH AS A WITNESS TO THE SCUFFLE AND AS A WITNESS IN THE BANKRUPTCY PROCEEDINGS. WHILE AT THE POLICE STATION, HE HAD HIS FINGERPRINTS TAKEN, ON THE ABOVE DATE (16 DECEMBER 1952).

SEE MEMO FROM THE BUSINESS PROTECTIVE BUREAU, WICHITA CHAMBER OF COMMERCE. (DOCUMENT 2).

C. MR. HUBBARD'S LONG AND HIGHLY RESPECTED CAREER AS AN AUTHOR IS ATTESTED TO IN THE ATTACHED STATEMENT BY SAM MOSKOWITZ, EDITOR OF SCIENCE FICTION IN THE 1950'S.

"DIANETICS: THE MODERN SCIENCE OF MENTAL HEALTH" HAS BEEN A BEST SELLER FOR OVER 25 YEARS. THE VERY FACT THAT INDIVIDUALS WITH EXCELLENT ACADEMIC CREDENTIALS, SUCH AS DR. FRANK GERBODE, FIND CONCRETE SUBSTANCE IN MR. HUBBARD'S WORKS BELIES THE NOTION THAT ONE WHO WRITES SCIENCE FICTION CANNOT ALSO ENGAGE IN SERIOUS PHILOSOPHIC OR SCIENTIFIC THOUGHT. (SEE DOCUMENTS 3 AND 4).

D. THERE IS NO RECORD OF SUCH CHARGES BEING MADE IN NEW JERSEY. SEE THE ATTACHED TESTIMONY OF COURT CLERK MORTIMER G. NEWMAN, JR. (DOCUMENTS [sic] 5).

E. SUCH CHARGES WERE PUBLICLY RETRACTED BY SARA HUBBARD ON JUNE 11, 1951. (SEE DOCUMENT 6).

F. DIANAZENE WAS A VITAMIN TABLET CONSISTING OF VITAMIN B, NICOTINIC ACID, ASCORBIC ACID, DICALCIUM PHOSPHATE, REDUCED IRON, PANTOTHENIC ACID. NONE OF THESE SUBSTANCES, SEPARATELY OR IN COMBINATION ARE DANGEROUS. THE FORMULA OF THE TABLETS HAD BEEN APPROVED AS SAFE BY THE FOOD AND DRUG ADMINISTRATION.

THE DISTRIBUTION CENTRE, INC., OF SILVER SPRINGS [sic], MARYLAND, ORDERED A QUANTITY OF DIANAZENE FROM DELMAR PHARMACAL, INC., A NEW YORK CORPORATION. THE U.S. F.D.A ANALYZED A SAMPLE OF THESE TABLETS AND FOUND THEM TO CONTAIN SMALLER QUANTITIES OF THE VITAMINS THAN WERE LISTED ON THE LABEL. THE FOOD AND DRUG ADMINISTRATION THEREUPON SEIZED THE ENTIRE SHIPMENT UNDER 21 UNITED STATES CODE WHICH PROVIDES FOR THE SEIZURE OF ANY DRUG WHICH IS MISBRANDED. UNDER THE UNITED STATES FOOD AND DRUG LAWS, THE "SUBJECT" OF A SEIZURE CAN ONLY BE THE ARTICLES ACTUALLY SEIZED.

[next page]

- 3 -

THE DISTRIBUTION CENTER, INC. IS A CORPORATION WHICH, FOR MANY YEARS, HAD DISTRIBUTED SCIENTOLOGY BOOKS AND E-METERS AND TO THAT EXTENT ONLY WAS CONNECTED WITH SCIENTOLOGY. MR. HUBBARD WAS NEVER A DIRECTOR OR SHAREHOLDER OF THE CORPORATION. (SEE DOCUMENTS 7 AND 8).

[next page]

- 4 -

II. Falsehoods Regarding the Church of Scientology Reported by the Federal Bureau of Investigation Followed by Complete Documentation to the Contrary.

A. The Federal Bureau of Investigation has Reported the Following Falsehoods about the Church of Scientology:

a. In January 1963, on the instructions of the Ministry of Health, (sic) (Food and Drug Administration) a house search was carried out in the Academy of Scientology in Washington, D.C., in the course of which machines which were used by the Academy in the performance of Scientology were secured. It was assumed that these machines, known as Hubbard Electrometers', were advertised with intent to defraud, in that they were declared effective in the treatment of various illnesses.

B. COMPLETE DOCUMENTATION TO THE CONTRARY RE: CHURCH OF SCIENTOLOGY FALSEHOODS:

A. THE E-METER HAS NEVER CURED ANYTHING NOR HAVE SCIENTOLOGISTS MADE CLAIMS TO THIS EFFECT. IN 1971, A FEDERAL DISTRICT COURT JUDGE IN THE DISTRICT OF COLUMBIA RULED THAT THE E-METERS WERE RELIGIOUS ARTIFACTS AND HE ORDERED THE FDA TO RETURN THEM. THE RETURN OF THE CHURCH'S RELIGIOUS ITEMS OCCURRED IN OCTOBER OF 1973. (SEE DOCUMENT 9).

[next page]

- 5 -

III. Additional Falsehood Regarding L. Ron Hubbard, Founder of Scientology Followed by Complete Documentation to the Contrary.

A. The Federal Bureau of Investigation has Reported the Following Falsehoods about L. Ron Hubbard, Founder of Scientology:

a. "The Police of Phoenix (Arizona) indicate that Hubbard arrived in this town in 1952 accompanied by his son and he there established the "Hubbard Association of Scientologists Incorporated." It was made, in 1952, the object of a control operation for having awarded diplomas to persons frequenting his establishment for only 5 months and for having received donations for his "Church." However, he was not prosecuted."

B. _COMPLETE DOCUMENTATION TO THE CONTRARY RE: L. RON HUBBARD, FOUNDER OF SCIENTOLOGY FALSEHOOD:

A. THE CHURCH HAS NO KNOWLEDGE OF ANY FORM OF "CONTROL OPERATION" BEING MOUNTED. THE "HUBBARD ASSOCIATION OF SCIENTOLOGISTS INCORPORATED" WAS AN EDUCATIONAL ESTABLISHMENT APPROVED BY THE ARIZONA STATE CORPORATION COMMISSION, WHICH HELD CLASSES IN SCIENTOLOGY MINISTRY. ATTACHED ARE THE ARTICLES OF INCORPORATION OF THE HUBBARD ASSOCIATION OF SCIENTOLOGISTS INCORPORATED WHICH SHOW IT TO BE A VALID ARIZONA CORPORATION. ALSO ATTACHED IS THE SWORN STATEMENT OF WILSON D. PALMER, CLERK OF THE SUPERIOR COURT OF MARICOPA COUNTY, STATE OF ARIZONA WHICH STATES THAT THERE IS NO RECORD OF ANY CRIMINAL ACTION FOR LAFAYETTE RONALD HUBBARD FILED IN THE OFFICE OF THE CLERK OF THE SUPERIOR COURT ... FROM OCTOBER 1949 TO DECEMBER 1959. (SEE DOCUMENTS DC 10 AND DC 11).

FROM THE FILES OF THE FBI 307

RUTH WARNKEN
County Clerk                                                  Telephone
543-1550, EXT/ 231

COUNTY CLERK Courthouse Annex SAN LUIS OBISPO, CALIFORNIA - 93401

February 6, 1973

I, RUTH WARNKEN, County Clerk of the County of San Luis Obispo, State of California, and Ex-Officio Clerk of the Superior Court of the State of California, in and for said County, hereby certify that I have searced [sic] the index to the Criminal Register of Actions in and for said county, and that I have found no record of Lafayette Ronald Hubbard as a defendant in any criminal action during the years 1948-1949 inclusive.

IN WITNESS WHEREOF, I have hereunto set my hand and the seal of said Superior Court, this 6th day of February, 1973.

RUTH WARNKEN, County Clerk
By [signed] Helen Finn
Deputy Clerk

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.

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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."

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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.

L. Ron Hubbard was a hard-working science fiction writer and an extremely good one. During the early forties he was ranked with Robert A. Heinlein, A.E. Van Vogt, Theodore Sturgeon, Isaac Asimov, L. Sprague de Camp, Henry Kuttner and other moderns developed by John W. Campbell, Jr. for two great magazines, Astounding Science Fiction and Unknown. His novel The Final Blackout (Astounding Science Fiction, April to June 1940) is among the greatest future war novels ever written, and in characterization and sustained pace probably is the very best. Fear (Unknown, July, 1940) is a brilliant piece of stream-of consciousness literary psychoanalysis; and To The Stars (Astounding Science Fiction, March and April, 1950) came close to being the classic story on the time-dilation effect.

Hubbard did not start out as a science fiction writer. He began as a travel an- [sic] aviation writer in 1930. Then shifted into pulp fiction writing. One of his best early markets was Five Novels Monthly, published by Dell. For them he wrote air adventure stories like Hurtling Wings, (November, 1934) coast guard stories like The Phantom Patrol, (January, 1935) and diving stories such as Twenty Fathoms Down, (September, 1934). Hubbard was one of the first writers to switch to an electric type-writer in order to keep pace with his own fertile imagination.

F. Orlin Tremaine had been editorial director of Astounding Stories and Astounding Science Fiction since late 1933. Around 1938 he persuaded L. Ron Hubbard, who had been doing work for some of Street & Smith's nonfantasy magazines, to try his hand at science fiction. He felt that Hubbard had a light, flippant touch which would offset some of the weighty pieces the magazine had been featuring.

(from Samuel Moskowitz, Futures to Infinity, Pyramid Books, New York, 1970)

FROM THE FILES OF THE FBI 310

[there is no indication where or when this was originally published]

Dianetics and Psychosomatic Disturbances
by Frank A. Gerbode, M.D.

There is widespread agreement amongst medical professionals and lay public that a large proportion of man's ills are psychosomatic. By "psychosomatic disturbances" is meant "disturbances in the body caused by disturbances in the mind." These may range from minor ones, like Excedrin Headache Number 57, caused by burned Jello, through "compensationitis", e.g., delayed healing of a back injury because the patient continues to receive pay for having the injury, to actual recognized disease entities, such as asthma, that are thought to be psychologically caused or aggravated.

That mental disturbances can and do cause physical disturbances is now beyond dispute. A study done at Yale Medical Clinic in 1951 showed that 76% of all patients suffered from what was called "emotionally induced illness." Having personally worked at the Yale Clinic, I would agree that this "disease" category far outweighs all others in that and other medical establishments.

Psychosomatic disturbances fall into several different categories. The most classic form is the so-called "conversion reaction." This name comes from the psychoanalytic theory that emotional disturbances or complexes are "converted" into physical manifestations so that the individual can express or defend against expressing these complexes without having to be aware of doing so. Thus, a person may be hysterically blind to defend against the memory of having seen his parents having intercourse or paralyzed to defend against aggressive impulses. A rather dramatic example of this kind of psychosomatic phenomenon is pseudocyesis or pseudo-pregnancy, in which a woman or even a man may induce a physical condition similar in appearance to pregnancy, complete with hormonal changes, as an expression of a repressed desire to be pregnant.

In addition to these rather dramatic--and rare-- instances of physical disabilities for which there is no classifiable physical disease process, there is the less dramatic manifestation of hypochondriasis, a constant preoccupation with the body and real or imagined physical problems. A fact often overlooked by harried physicians who have to deal with these patients is that hypochondriacs are characteristically in real physical distress, with real aches, pains, and other abnormal sensations.

Even illness with well-defined physical causes are profoundly affected by the psychological state of the individual. It is well known, for instance, that epileptic seizures and diabetic crises--not to mention heart attacks and ulcers--are frequently precipitated or aggravated by emotional crises. Asthma, migraine headaches, ulcerative colitis, atopic dermatitis, and a variety of other very real physical illnesses are thought by many to have mainly psychological causes. And it is currently being widely acknowledged that all forms of illness may be strongly influenced by psychological factors.

At any rate, doctors find that a large proportion of their patients are "crocks." "Crock" is a term of contempt for people who, for psychological reasons, refuse to get well and continually haunt clinics and physicians' offices, frequently "shopping around" from doctor to doctor, giving them all failures and making themselves very unpopular. When confronted with such a patient (who is more politely called a case with "psychological overlay"), a family physician will, if he is ambitious, administer psychotherapy himself insofar as he can, but more often he will refer the patient to a psychiatrist. Having received many such referrals, as a psychiatrist, I can attest that these cases are quite frustrating to handle within the framework of traditional psychotherapy. Although psychoanalysts have for decades felt that treatment of psychosomatic conditions was possible, they have only had any real success in the rarest category of psychosomatic disorders--conversion reactions, and while these cases in Freud's time seemed to resolve in months, the current psychoanalytic timetable is measured in years.

A patient who suffers from an immediate physical problem characteristically has little interest in a long-term therapy. He wants relief now and is usually not satisfied with the explanation that his Oedipus complex will take 3-7 years to resolve. Consequently, tranquilizers and reassurance is the most common form of treatment, since this affords immediate relief and is therefore acceptable to the patient. Moreover, this form of treatment does not cure his condition. Rather, it serves two purposes: It

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dulls the patient's awareness of the condition by partially obtunding him and it renders him apathetic by giving him a message that it's hopeless to effect a real cure. This is a desirable outcome, not for the patient, but for the referring physician, who is no longer harassed by the patient.

Most psychiatrists are trying to make the best of a job for which they lack adequate tools. If it is in fact impossible to afford psychosomatic cases relief from or cure of their conditions, then the sooner everyone knows it's hopeless, the better. One could get very frustrated and unhappy trying to run the 10-second mile. However, the psychiatrist who wishes to treat such patients has, whether he knows it or not, incurred an obligation to have a very good look around to see if anyone has a way to handle these disorders before deciding they are untreatable. Any method which is claimed to be workable by its proponents needs to be looked at carefully to see whether it is or not. If psychiatry had an effective way to handle psychosomatic problems, psychiatrists could afford to ignore lay techniques, but since it doesn't, they can't.

I was lucky enough to have a close friend who told me enough about Dianetics to make it seem worthwhile to investigate further. I found, first of all, that Dianetics has a sound theoretical structure, one whose principles are readily understandable and intuitively acceptable. Dianetic theory, like most theories that are close to the truth, is simple, of wide application, and predicts further data which, when sought after, will be found. Its results are duplicatable in practice by anyone who is willing to get trained in its techniques. Dianetic counselling [sic] acts by eliminating the psychological factors that tend to hold an illness in place, thus allowing the natural course of healing or medical treatment to proceed unimpeded.

Dianetics does not compete with medicine as a healing technique. A Dianetic counselor requires that counselee to obtain a complete medical exam and appropriate medical treatment before starting Dianetic counseling. Thus it turns out that Dianetic groups are a major source of referrals for doctors. And doctors whose patients are concurrently getting Dianetics have the gratifying experience of having their treatments work well.

The primary purpose of Dianetics is not healing but the elimination of distractions which a nonoptimum bodily and emotional state causes. Even a relatively minor disorder such as hay fever or a headache can greatly lower a person's efficiency in life. Phobias, such as fear of heights or less "clinical" fears, such as fear of talking in front of groups, can restrict one's life considerably. Drug addiction could be said to be caused by the presence of unwanted body sensations and emotions that compel use of drugs for their alleviation. When these unwanted sensations and emotions are handled Dianetically, a person has no further need to use drugs. He is then free to go about the business of living a full life.

SUMMARY

1. Psychosomatic disorders and emotional upsets make up the vast majority of human suffering.

2. Standard medical treatment alone is inadequate to alleviate much of this suffering.

3. Psychiatric resources are few, consisting mainly of offering support and drugs to help a person live with a condition he cannot hope to cure.

4. Outside the standard psychiatric framework, there is a precise, duplicatable technique which, when correctly applied, uniformly and predictably leads to cure or great improvement in psychosomatic disorders when combined with standard medical treatment.

5. The purpose of Dianetics, however, is not primarily to heal bodies but to free an individual from physical and emotional distractions so that he can pursue the business of living with maximum efficiency.

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FROM THE FILES OF THE FBI 311

Superior Court of New Jersey

State Board of Medical Examiners,
Plaintiff,
vs.
Hubbard Dianetic Research Foundation,
Defendant.

Civil Action CERTIFICATE

I, MORTIMER G. NEWMAN, JR., Clerk of the Superior Court of the State of New Jersey, the same being a Court of Record, do hereby certify that I have searched the indices of this Court from January 1, 1945 to December 31, 1965, inclusive, and can find no record of a case entitled as above.

IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seal of said Court at Trenton, this 4th day of September, 1973.

[signed] Mortimer G. Newman, Jr.
Clerk

FROM THE FILES OF THE FBI 312

June 11, 1951

I, Sara Northrup Hubbard, do hereby state that the things I have said about L. Ron Hubbard in courts and the public prints have been grossly exaggerated or entirely false.

I have not at any time believed otherwise than that L. Ron Hubbard was a fine and brilliant man.

I make this statement of my own free will for I have begun to realize that what I have done may have injured the science of dianetics, which in my studied opinion may be the only hope of sanity in future generations.

I was under enormous stress and my advisers insisted it was necessary for me to carry through any action I have done.

There is no other reason for this statement than my own wish to make atonement for the damage I may have done. In the future I wish to lead a quiet and orderly existence with my little girl far away from the enturbulating influences which have ruined my marriage.

[signed] Sara Northrup Hubbard
SARA NORTHRUP HUBBARD

[handwritten] Witnessed 6/11/51
John Wm. Maloney
Chas. Leonard

FROM THE FILES OF THE FBI 313

DEPARTMENT OF
HEALTH, EDUCATION, AND WELFARE
FOOD AND DRUG ADMINISTRATION
WASHINGTON, D.C.
April 2, 1957

Mr. Kenneth D. Barrett
The Distribution Center, Inc.
Box 242
Silver Spring, Maryland

Dear Mr. Barrett:

In Mr. Cook's absence, I am replying to your letter of February 26 concerning "Dianazene."

We understand from your letters that the Dianazene label will recommend that three tablets be taken per day and will name ferrous gluconate as the ingredient supplying the iron.

If three tablets (the recommended daily dose) supply an amount of ferrous gluconate equivalent to 100 milligrams of elemental iron, we would have no objection to the proposed use for [?]oming iron-deficiency anemia. In this connection, we point out that since the iron content of ferrous gluconate is approximately 12 percent, three tablets of Dianazene would have to contain approximately 0.8 gram [sic] of ferrous gluconate in order to provide a daily intake of 100 milligrams of elemental iron.

Assuming that, as finally marketed, the article will provide the equivalent of 100 milligrams of elemental iron in the daily dose and that the only claims made for the article in all of its promotional material is that it is for overcoming iron deficiency anemia and deficiencies of vitamins, B1, B2, C, and nicotinic acid, we have no other significant comment [sic] to offer.

Sincerely yours,

[signed] H.L. Yakowitz
H.L. Yakowitz
Assistant to the Director
Bureau of Enforcement

FROM THE FILES OF THE FBI 314

UNITED STATES OF AMERICA, plaintiff
vs.
SPECIAL ANTI-RADITION [sic] COMPOUND (DIANAZENE), ETC., defendant

No. 10-58, District Court Docket

I, JAMES F. DAVEY, Clerk of the UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA, do hereby certify the annexed to be true and correct copies of the original pleadings and the docket sheets as they appear of record in the Clerk's Office of said Court in the above-entitled cause.

IN TESTIMONY WHEREOF, I hereunto subscribe my name and affix the seal of said Court, at the City of Washington, this 30th day of January, 1973

JAMES F. DAVEY, Clerk
By [signed] Thomas J. Brennan
Deputy Clerk

100 mg. [illegible] 6-2/3 gr. Dicalcium Phosphate 200 mg. Iron Reduced N.F. 3-1/2 mg. Pantothenic Acid *** This is a bulk shipment *** Delmar Pharmacal, Inc., Rensselaer, N.Y."

(bottle) "Dianazene *** Manufactured for the Distribution Center, Inc., Box 242 Silver Spring, Maryland *** Each Tablet Contains: Nicotinic Acid 100 mg. Vitamin B1 6-2/3 mg. Di-Calcium Phosphate 6-2/3 gr. Pantothenic Acid 3-1/3 mg. Ascorbic Acid 100 mg. Iron 333 mg. ***

To the Honorable Judge of the United States District Court For The District of Columbia.

Now comes the United States of America, by Oliver Gasch, United States Attorney for the District of Columbia and shows to the Court:

[document ends here]

FROM THE FILES OF THE FBI 315

The Washington Post
Times Herald
WEDNESDAY, OCTOBER 24, 1973
Church Gets Back Books, E-Meters

By William R. MacKaye
Washington Post Staff Writer

About 100 persons burst into applause yesterday as a rented truck drew up in front of 1812 19th St. NW and local followers of the Church of Scientology received back three tons of books and other materials seized by the government from them 10 years ago.

The ceremony represented the denouement of the longest case ever fought by the Food and Drug Administration. The Scientologists in effect won the case, successfully defending themselves against FDA charges of medical quackery by satisfying federal courts that the seized materials were religious paraphernalia.

Despite the largely favorable ruling, which was confirmed in March by three judges of the U.S. Court of Appeals for the District of Columbia, the Scientologists had to pay the costs the government accrued on storing their things for 10 years at Security Storage Company of Washington, around the corner at 1701 Florida Ave., NW.

A Security Storage officer declined to say what the government's bill had been or even to confirm that the materials had been stored there, but the Rev. Arthur Maren, a spokesman for the church, said the bill through 1970 totalled $3,600.

What the Scientologists got back, somewhat yellowed with age, were 5,000 volumes of 13 different books, about 20,000 booklets and 65 E-meters.

The E-meters, made from tin cans and batteries, are used to measure electrical conductivity of the skin. The FDA insisted they were phony medical devices banned under federal pure food and drug laws; the Church of Scientology said they were religious artifacts comparable to holy water.

The church said that another 25 to 50 E-meters seized in the raid on Jan. 4, 1963, were not included in the return shipment and remain unaccounted for.

In contrast to the drama of the seizure, which involved a team of deputized Baltimore longshoremen bursting into the converted town house that is the church, the return ceremony was a sedate affair.

Mr. Maren, speaking from a temporary podium on the church's front porch, referred mildly to the seizure and the legal struggle that followed as an example of "the bureaucratic tendency to overgovern in the name of the public good."

One of the books seized in the raid--and proposed for destruction by the FDA--was "Dianetics," by L. Ron Hubbard. It dominated best-seller lists in 1950, Mr. Maren pointed out. Hubbard, who now lives on an ever-cruising ship, is the founder of the Church of Scientology.

After the speeches were concluded, several black-garbed ministers of the church began to unload the cartons from the truck and carry them into the building.

The believers clustered on the sidewalk and in the street, smiled broadly at each other, then went inside the church to toast the occasion with champagne.

[photo of several people carrying boxes; caption reads "Followers of Church of Scientology carry boxes of books inside while the Rev. Amanda Ambrose says a prayer. Seated are the Rev. Arthur Maren and the Rev. Duke Snider. U.S. government had seized materials 10 years ago."]

FROM THE FILES OF THE FBI 316

IN THE SUPERIOR COURT OF THE STATE OF ARIZONA
IN AND FOR THE COUNTY OF MARICOPA

STATE OF ARIZONA
ss.
County of Maricopa

I, WILSON D. PALMER, Clerk of the Superior Court of Maricopa County, State of Arizona, hereby certify that a thorough search has been made of our records from October 1949 through December 1959. The records did not disclose a Criminal action for Lafayette Ronald Hubbard filed in the Office of the Clerk of the Superior Court.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Court this 29th day of December, 1972.

WILSON D. PALMER, Clerk
BY: [signed] M. Loza
Deputy Clerk

FROM THE FILES OF THE FBI 317

[xerox is in very poor condition; this document starts on page 2]

ARTICLES OF INCORPORATION

OF

HUBBARD ASSOCIATION OF SCIENTOLOGISTS

KNOW ALL MEN BY THE PRESENTS:

That we, L. RON HUBBARD, MARY SUE WHIPP HUBBARD, JA[?] A. [illegible word], ALP[?] HART and GEORGE [?] T[?]EN having associated ourselves together for the purpose of forming a corporation under the laws of the State of Arizona, do hereby adopt the following Articles of Incorporation:

ARTICLE I

The name of the corporation shall be "HUBBARD ASSOCIATION OF SCIENTOLOGISTS."

ARTICLE II

The principal place of business of the corporation shall be at Phoenix, Maricopa County, Arizona, but the directors of this corporation may open and establish offices within or outside the State of Arizona in such other places as they may designate, where meetings of the members and directors may be held and where the business of the corporation may be transacted.

ARTICLE III

The affairs of this corporation shall be conducted by a Board of Directors and a President, a Vice-President, a Secretary, and a Treasurer, and such other officers as may be desired. The President, Vice-

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[page 3]

President, Secretary, and Treasurer shall be members of the Board of Directors, which Board of Directors shall consist of not less than five (5) nor more than (9) members. The directors and officers shall be elected by the voting members at any special meeting called for that purpose, or at the annual meeting to be held on the first Monday in March of each year, and shall hold office until the next annual meeting or until their successors are elected and qualified. The Board of Directors shall have the power to adopt, amend, or repeal by-laws for the government of the corporation and the regulation of its affairs. Until their successors have been elected and qualified the following persons shall hold the offices set forth opposite their names, and shall conduct the affairs of the corporation:

L. Ron Hubbard, President
James A. Struckmeyer, Vice President
Mary Sue Whipp Hubbard, Secretary
Alphia Hart, Treasurer

ARTICLE V

The purposes for which this corporation is formed shall be the dissemination and advancement of knowledge of the human mind and investigation and research into the functioning of the human mind. The general nature of this business to be transacted by this corporation and its powers are:

1. To carry on any and all scientific research and most particularly the dissemination and advancement of knowledge of the human mind in mental, psychosomatic and allied fields.

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2. To teach and instruct of and concerning the human mind, and to conduct research of and concerning the same.

3. To accept and receive contributions of services, money, and other gifts of both real and personal property.

4. To expend money and execute and perform contracts of every character, and to do and perform every act and thing which may be lawfully done, performed, executed, engaged in, conducted, or carried on by a natural person.

5. To purchase, take, own, hold, and to lease, sell, convey, exchange, transfer, or in any other manner, dispose of real and personal property of every class and description, and to borrow money, and pledge or mortgage the whole or any part of the property of this corporation to secure the re-payment thereof.

It is the intention that the foregoing clauses shall be construed both as objects and powers, and the foregoing enumeration of specific powers shall not be held to limit or restrain in any manner the powers of the corporation.

ARTICLE V

There shall be authorized the sum of $200,000.00 in capital stock to be issued under the terms and conditions of the by-laws of this corporation. The shares shall be non-assessable and there shall be no return, expressed or implied, and the shares shall be issued for such consideration as the Board of Directors shall deem desirable to serve the ends of this corporation. The private property of the officers, directors, or members of this corporation shall be forever exempt of any debts or liabilities of every kind and character of the corporation. The highest amount of in-

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debtedness of liability, direct or contingent, to which the corporation shall at any time subject itself is $150,000.00.

ARTICLE VI

The time of the commencement of this corporation shall be the day a certificate of incorporation is issued by the Corporation Commission. The termination shall be twenty-five (25) years thereafter, with the privilege of renewal as provided by law.

ARTICLE VII

The membership of this corporation shall consist of those persons interested in promoting the purposes of this corporation as shall be provided by the by-laws.

ARTICLE VIII

James A. Struckmeyer, Phoenix, Arizona, who has been a bona fide resident of Arizona for at least three (3) years, is hereby appointed its lawful agent, in and for the State of Arizona, for and on behalf of said corporation to accept service of and upon whom may be served process of any action or proceeding that may be brought against this corporation in any of the courts of the State of Arizona.

ARTICLE IX

The [illegible word], residences, and post office addresses of the incorporators are as follows:

1. L. Ron Hubbard, Rt. 2, Box 1203, Phoenix, Ariz.
2. Mary Sue Whipp Hubbard, Rt. 3, Box 1[?], Phoenix, Ariz.
3. James A. Struckmeyer, 207 L[?] Bldg., Phoenix, Ariz.
4. Alphia Hart, 1403 [?] Central, Phoenix, Ariz.

[page 6]

5. George Petersen, 222 West Jefferson, Phoenix, Arizona

IN WITNESS WHEREOF, the incorporators undersigned have hereunto subscribed their names this 9th day of September, 1952.

[signed]

L. Ron Hubbard
Mary Sue Whipp Hubbard
Alphia Hart
George Petersen
James A. Struckmeyer

STATE OF ARIZONA
ss:
County of Maricopa

On this, the 9th day of September, 1952, before me JACK C. CA[?]ESS, a Notary Public, personally appeared L. RON HUBBARD, M.S.W. HUBBARD, ALPHIA HART GEORGE PETERSEN and JAMES A. STRUCKMEYER known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes contained therein.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal

[signed] [illegible]
Notary Public
My Commission Expires
[illegible 1954]

FROM THE FILES OF THE FBI 318

STATE OF ARIZONA
ss
COUNTY OF MARICOPA

I, Marguerite B. Cooley, hereby certify:

That I am Director of the Department of Library and Archives of the State of Arizona.

That there is on file in said Department the following:

ARTICLES OF INCORPORATION
OF
HUBBARD ASSOCIATION OF SCIENTOLOGISTS

That the reproductions to which this affidavit is attached are true and correct copies taken from microfilm of the above mentioned file.

[signed] Marguerite B. Cooley
Marguerite B. Cooley, Director
Department of Library and Archives

Subscribed and sworn to before me this 27th day of February, 1973.

[signed] Evelyn L. Nielson
Evelyn L. Nielson, Notary Public

My commission expires May 19, 1975

THE CHURCH OF SCIENTOLOGY
The Hubbard Scientology Organisation
WORLD WIDE

Founder L. Ron Hubbard

Saint Hill Manor, East Grinstead
Sussex England RH19 4JY
Tel: East Grinstead 24571/3

Mr. C.M. Kelley
Director
United States Department of Justice
Federal Bureau of Investigation
Washington, D.C. 20535
U.S.A.

2 August 1974

Dear Mr. Kelley,

I do not appear to have received any reply to my letter of 25th June. I appreciate that you are very busy. Possibly also the letter was lost in the mails; I enclose a copy, and look forward to the favour of your reply in due course.

Yours sincerely,

[signed] CBB Parselle

C.B.B. Parselle
D/Guardian Legal WW

Church of Scientology of California
A NON PROFIT CORPORATION IN U.S.A. REGISTERED IN ENGLAND
[?]S. HOPKINS PRESIDENT ERNEST DENZIL GOGERLY VICE PRESIDENT H.[?]
PARKHOUSE SECRETARY P. HURWITZ RESIDENT AGENT (ENGLAND0

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Mr. C.M. Kelley
Director
United States Department of Justice
Federal Bureau of Investigation
Washington, D.C. 20535
U.S.A.

25 June 1974

Dear Mr. Kelley,

Thank you for your letter of 20 June 1974.

I can understand that in terms of your long-standing policy to make information in your files available only to duly authorised law enforcement officials etc., your policy to protect the identity of members of the general public who furnish information can be made defensible. You might otherwise not get such information, whether true or false.

The error seems to me, with respect, to be that the FBI lends the weight of its authority to information which it furnishes from its files. It does not make it clear that such information might be raw, unevaluated dated furnished by persons who cannot be challenged because their identity is to be protected, who may have acted on rumour, or out of malice or ill-will. Might I suggest, as a "ready solution" to what is a problem for you but sometimes a catastrophe for others, that information furnished by

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the FBI should carry a rubber stamp with the legend:

Raw, unevaluated data.
The authenticity of this information
is not guaranteed.

Further, occasions do arise when the long-standing policy of the FBI is violated, and leaks of information occur. You will readily appreciate that such leaks are capable of doing irreparable harm to the individuals concerned. May I ask whether the FBI in such circumstances has a policy for putting the matter right?

Thank you for your courtesy and co-operation.

Yours sincerely,

C.B.B. Parselle
D/Guardian Legal WW

FROM THE FILES OF THE FBI 320

OPTIONAL FORM NO 10
MAY 1962 EDITION
GSA GEN REG. NO. 27

UNITED STATES GOVERNMENT
Memorandum

DATE: 8-23-74

TO : Mr. J.B. Adams

FROM : Legal Counsel

SUBJECT: CORRESPONDENCE WITH C.B.B. PARSELLE
THE CHURCH OF SCIENTOLOGY

Reference is made to letters dated 5-3-74, 6-10-74, 6-25-74, and 8-2-74 from captioned individual to this Bureau. The initial two communications were answered by Bulets dated 5-16-74 and 6-20-74. The 6-25-74 letter from Parselle was not acknowledged, and it is our view that most recent letter of 8-2-74 should also not be answered.

Our files reveal no identifiable information with correspondent outside of the described communications. It should be noted the letters were written on the stationery of the Church of Scientology. The Church of Scientology of Washington, D.C., Inc., has sued the FBI for information in our files concerning that organization and its affiliates under the Freedom of Information Act.

Correspondent is mainly interested in our policy with regard to allowing individuals access to their FBI files and our reasons behind this. We feel his inquiries have been sufficiently answered by the above-mentioned Bulets and the letter prior to this most recent communication appears to be frivolous in nature. Consequently, we believe it is unnecessary to continue a dialogue in letters which could go on indefinitely.

_RECOMMENDATION_:

That this most recent communication of 8-2-74 and future communications of a similar nature not be acknowledged.

1 - Mr. Mintz
RD:law (3)

FROM THE FILES OF THE FBI 321

4-750 (Rev. 4-17-85)

FEDERAL BUREAU OF INVESTIGATION
FOIPA DELETED PAGE INFORMATION SHEET

36 Page(s) withheld entirely at this location in the file. One or more of the following statements, where indicated, explain this deletion.

X Deleted under exemption(s) __b7c, b1____ with no segregate material available for release to you.

Information pertained only to a third party with no reference to you or the subject of your request.

Information pertained only to a third party. Your name is listed in the title only.

Documents originated with another Government agency(ies). These documents were referred to that agency(ies) for review and direct response to you.

Pages contain information furnished by another Government agency(ies). You will be advised by the FBI as to the releasability of this information following our consultation with the other agency(ies).

Page(s) withheld for the following reason(s):

________________
________________
 

For your information: ___________________
____________________________________
X the following number is to be used for reference regarding these pages:

__62-94080-207_______

XXXXXXXXXXXXXXXXXXXXXX
X    DELETED PAGE(S) X
X NO DUPLICATION FEE X
X     FOR THIS PAGE  X
XXXXXXXXXXXXXXXXXXXXXX

FBI/DOJ

[exemption b7c is for information that "could reasonably be expected to constitute an unwarranted invasion of personal privacy"; b1 exemptions are "(A) specifically authorized under criteria established by an Executive order to be kept secret in the interest of national defense or foreign policy and (B) are in fact properly classified pursuant to such Executive order"]

FROM THE FILES OF THE FBI 322

FOUNDING CHURCH OF SCIENTOLOGY

2125 "S" STREET, NORTHWEST
WASHINGTON, D.C. 20008
(202) 797-9800

FOUNDER
L. Ron Hubbard

BOARD OF DIRECTORS

Rev. William M. Bromfield
President

Rev. Joel Morris
Vice-President

Jane Layton
Secretary-Treasurer

Federal Bureau of Investigation
Ninth Street and Pennsylvania Ave. N.W.
Washington, D.C. 20535

May 27, 1980

Dear Sirs:

I would like to bring to your attention a final decision in an international court case which you may have in your files.

Approximately two years ago a court in France convicted members of the Church of Scientology on charges of fraud. The case was unprecidented [sic] in that some of the people involved had never been to France and were tried in absentia. The charges stemmed from a number of false reports about the Church which were circulated around the world by intelligence agencies in the United States and Interpol, the private French police organization.

A few months ago the Appeals Court in France reversed the lower court decision, dismissed all of the charges and formally declared Scientology to be a religion under the meaning of the law in France.

I have included some material on this case for your Scientology files to correct any earlier material you may have on the original convictions.

If you have any questions please feel free to contact me at (202) 797-9828.

Sincerely,

[signed[ Gregory Layton

Rev. Gregory Layton
Public Affairs Representative

GL:st

The Founding Church of Scientology (R) is a non-profit organization registered in the District Columbia

FROM THE FILES OF THE FBI 323

INTERNATIONAL HERALD TRIBUNE
Published with The New York Times and the Washington Post
PARIS, MONDAY, MARCH 3, 1980

Court in France Recognizes Cult, Acquits Ex-Head

PARIS, March [?] (Reuters)--The Paris Court of Appeal has recognized the U.S.-based Church of Scientology as a religion and cleared a former leader of the movement's French branch of fraud.

Georges Andreu, former head of the cult in France, and three other leaders including the American founder, Ron Hubbard, had received fines and suspended prison sentences a year ago after the movement was accused of enticing people to join by making fraudulent promises. Mr. Andreu was the only one of the four to appeal.

The appeals court acquitted him on Friday because of what judges called his evident good faith. The court's president indicated that the three others, who were sentenced in their absence, might be acquitted if they appealed.

"Scientology seemed to correspond to a definition of religion in that it embraces both a faith and a community," the court said. The sect claims to have 5 million members around the world, including [illegible words] France.

FROM THE FILES OF THE FBI 324

[this appears to have been translated from French]

FRANCE : FRAUD CASE APPEAL
===========================

EXTRACTS OF THE JUDGEMENT/29 FEB 80
====================================

On the merits :
________________

Whereas in everything that has to do with the background of Scientology and the genesis of this case, the Court intends to refer expressly to the very complete accounts of facts which appears in the preamble of the contested judgement.
(follows the very precise account of the prosecution)

A. On the application of the dispositions invoked by the law of 9 December 1905:

Whereas the article 1st of this text stipulates : "That the French Republic ensures the liberty of conscience and guaranties [sic] the free exercise of cults, under the sole restrictions enacted thereafter and this in the interest of Public Order,

Whereas the state thus claims its neutrality in religious matters, does not favor any cult and leaves to anyone a total freedom of belief,

Whereas however that this neutrality does not forbid in any way the secular tribunals and more specifically to the repressive jurisdiction - Guardian of Public Order - to intervene as such in the presence of the practice of a cult whatever it may be, a penal offense has been committed to the prejudice of a member of a religious community,

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that [?]is right of intervention is a consequence on one hand of the sovereignty of the secular state which manifests itself by the primacy of the civil law and also by the duty which devolves upon that state to protect the essential interests of its nationals in any circumstances,

Whereas the Scientology fact seems to correspond to an activity which applies to the usual definition of a religion, inasmuch the Court observes that in Scientology, despite the lack of metaphysical preoccupations to which the great occidental religions traditionally cling to,

The subjective element which is faith is supplemented by the existence of a human community, as small as it maybe [sic], whose members are united by a system of beliefs and practices relating to sacred things,

But whereas it does not mean that Scientology, even though regarded as a religion and fitting thereupon the juridical structure set by the law of 9 December 1905, escapes all repression once the relations it maintains with its parishioners are no longer on the terrain of spirituality or belief or of the one of its internal organisation but deal with financial questions on the occasion of which the patrimony of some adepts could have been wronged under circumstances which fit to the qualifications as defined by the article 405 of the Penal Code,

Whereas indeed the Court could not admit the interpretation brought up by ANDREU's counsels according to which the principle of the neutrality of the State in religious matters demonstrated by the organization of secularity in the law of the 1st August 1905, the provision by this text of a mean of financing of Churches by the believers themselves, according to the system known at [sic] Cultual [sic] Associations and the use by

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the s[?]e text in its article 1st [?]of the formulation : "under the sole restrictions thereafter", confers vis-a-vis the state a complete autonomy of the system established and forbids the jurisdiction of Common Law to withold their competence towards members of the Church of Scientology outside the perimeter laid down by the repressive clauses of the aforementioned law,

Whereas indeed, the text referred to - article 32 - which guarantees the free exercise of cult covers exclusively the acts, assaults, violence or threats against an individual in order to determine him, either by fear of loosing [sic] his job, or by the wrong which could happen to himself, his family or his fortune, to exercise or refrain from exercising a cult, to belong or cease to belong to a cultual [sic] association, to contribute or refrain from contributing to the expenses of a cult,

Whereas the qualification thus defined is without relation to the fraud, the said fraud is distinguished mainly by the existence of fraudulent manoeuvres to undermine or attempt to undermine the patrimony of somebody, while the article 31 of the 1905 law intends to curb an offence which is similar to the crime of extortion or threats and which if it can in fact be expressed by a transfer of funds could not be classified as fraud within the so-called "shrewd" criminality,

That moreover, the spirit of the two opposed texts is profoundly different, that the article 31 is a special text whose perimeter of application is limited to the relations between the Church and its parishioners and which is liable to cover the facts directed at by [sic] the prosecution while the article 405 of the Penal Code is a general text whose object is to protect without any restriction the victims of prejudice to

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[?]ei[?] patrimony through the use of a false name or false quality, or in a lar[?] way of fraudulent manoeuvres,

Whereas the article 33 of the 1905 law manoeuvres enacts that the precedent clauses - that is to say those of the articles 31 and 32 - only apply to troubles outrages or violence whose nature or circumstances do not lead to heavier penalties according to the clauses of the Penal Code, that in this way the 1905 legislator has himself foreseen that the texts of this Code would be, if the case arises, applied to certain infractions in relation with the administration of cults, but about which the repression demands, in view of their gravity, that they be punished by clauses envisioning heavier penalties than those of the articles 31 and 32, that if the article 33 does not expressly aim at the article 405, the principle it states about recourse if need be to the Common Law texts, thwarts the socalled [sic] interdiction to base the lawsuit on penal qualifications other than those defined by the 1905 law.

Whereas it does not matter much that the financial ressources [sic] of Scientology in France be precisely those foreseen, as regards their finality, by the law of 9 Dec 1905, that such a condition is insufficient to exempt its directors from all risks of penal lawsuit,

Whereas it comes into the province of the repressive jurisdiction to which the matter is referred to verify whether or not, under the cover of apparently voluntary adherents' payments, the concerned Church did not use any mean, through its founders or leaders, which turned out to be fraudulent when examined, and leading to any damage to people whose agreement would have been twisted and would have been in fact deceived.

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B. _Concerning ANDREU's personal position__

Whereas the Court has to examine it within the tight extent of its seisin (saisine) [sic] since ANDREU as well was the only defendant to appeal the decision, the fraudulent manoeuvres have to be appraised according to his specific position, whereas it appears that this defendant's role was limited, at least regarding his powers extent, whereas he was appointed as president of the French Association of Scientology, in September 1972, when the whole organisation in question was already established and whereas he immediately resigned from the presidency to become again a simple minister of the cult after he was convicted on January the 8th 1976 within the frame work of the examination started on December the 12th 1970,

Whereas im 1972, ANDREU was 21 years old, whereas he got into the Church of Scientology to follow initiation conferences and whereas he did not previously obtain any religious or philosophical education which might have enabled him to appraise with a detached enough attitude the merits or unselfishness of the method chosen by the founder of Scientology, Ron HUBBARD,

Whereas this latter never stopped, in spite of a more apparent than real retirement from his functions of Director of the Church in 1966 to impress with his authority upon the organizing of Scientology associations, whereas a document seized on March the 10th 1972 bears that he was at that time the director of the Scientology centers, whereas LAARHUIS, the executive Director for all the associations was put by HUBBARD above the President of the French Association and was supervising all the activities of that one, of which he was responsible for under senior authorities, to wit, HUBBARD on the

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ATHENA yacht, whereas it is to these authorities that LAARHUIS was sending his reports on the activities of the French association.

Whereas before he disappeared, LAARHUIS stated to the Examining Magistrate that the President, the Treasurer, and the secretary were his direct assistants, whereas he was particularly responsible for the good running of the courses, the controlling of the treasury of the association, and that it was up to him to decide finally regarding its budget establishing.

Whereas ANDREU, who did nothing but enforce HUBBARD's general policies, and more specifically LAARHUIS's ones, as regards the French Association, could not have gained due to his functions any profit which can be considered as abnormal, whereas in 1972, he received 8,977 Frs for full time duties, funds which progressively increased to reach 21,682 Frs in 1976, whereas in 1976 he resigned from his president's function - which was no longer allowing him to decently survive in order to devote himself to a remunerated management consultant's activity.

Whereas it is fitting however to examine whether or not, ANDREU who was then in function, was responsible of the facts mentioned by the KOCH couple to support their complaint for fraud,

Whereas in their complaint which, in spite of it having been withdrawn, did let the prosecution running, the KOCH couple were explaining that they got interested when starting on November 1973 and bought several books of this discipline,

Whereas in March 1974, their son Thierry, 16 years old came to Paris to follow the socalled [sic] communication course, and appeared to have written a letter to ANDREU, telling him that he was pleased whereas nevertheless in February

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1975, when Thierry KOCH was located in Strasbourg, his mother claimed for being refunded of the sum of 6,350 Frs that she paid for an electrometer - which was delivered to her - and for two courses - which were to be followed in Paris - and for a book,

Whereas the repayment was claimed for in a letter of 15 February 1974, and confirmed by another letter of 20 February where Mrs. KOCH was threatening to lodge a complaint, whereas it got filed at the Public Prosecutor's in Strasbourg on 24 February, whereas besides, it seems that a post strike delayed the Church of Scientology is the receiving of Mrs. KOCH's letters, whereas this latter was later refunded for the entirety of the claimed sums and whereas she decided to withdraw her complaint,

Whereas the facts denounced by the KOCH couple do not appear to constitute a fraud offense, whereas the counterpart of the cost did correspond to an electrometer which was provide, and of two books, and the remainder relating to courses to be delivered on which an advance payment had been claimed,

Whereas inasmuch as upon one of the parties request, the contract may be cancelled and the price refunded, the needed element of chimerical credit and imaginary power is uneasy or even impossible to detect, the courses not having been followed by Thierry KOCH and their content thus their value cannot be appraised,

Whereas concerning TRAN NCOG LAN's constitution as civil party, it deals with facts prior to ANDREU's appointment as a director of the Association, whereas on another hand, TRAN charges only LAARHUIS, with whom he was frequently in contact, whereas he met ANDREU only the day he decided to leave the association, and whereas upon a decision made

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[at least one page appears to be missing here]

Whereas during the hearings the Court was able to observe ANDREU's spiritual fervor and strength of convictions whereas the sincerity of this young 20 years old man, married with a wife whom he met at the initiation conferences, should not challenged, whereas he gave himself body and soul to this new religious discipline, whereas this adherence established by LAARHUIS under HUBBARD's directives, and whereas the, moreover not very important role he played, as regards the responsibilities he was entrusted with and the extent of his wages, did not permit him to judge with enough moral independence whether or not the method preached and taught by Scientology could constitute a breach of the French Penal Law, whereas the Court deems that in its entirety, ANDREU's act is impressed with good faith and that the moral element of fraud, the intention to deceive in order to obtain funds not being established, the suit against him was not founded and whereas by annulation of the appealed decision, ANDREU must be discharged,

Whereas by the effect of the decision to occur on the prosecution, TRAN's constitution as civil party against ANDREU is not founded and whereas he will be dismissed, the Court,