The Kotzé Report

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SECTION II

CHAPTER 4
SCIENTOLOGY: ITS NATURE, ITS FOUNDER AND ITS ORGANIZATION

The term Scientology

4.1.    Scientology is —

"a word which has recently been invented. It finds no place in the English dictionaries."[01]

The word unquestionably has been coined by Mr. Lafayette Ronald Hubbard, the man who claims to be the founder or discoverer of the system known by the name. He derived the word from the Latin word Scio and the Greek word Logos.

"The term SCIENTOLOGY is taken from the Latin word SCIO (knowing in the fullest meaning of the word) and the Greek word LOGOS (to study)."[02a]

"Scientology was discovered (found) not invented (created). It was organized by L. Ron Hubbard, an American, who has many degrees and is very skilled by reason of study."[02b]

4.2    According to the dictionary of Scientology, published under the authority of Mr. Hubbard, it is —

"An applied philosophy dealing with the study of knowledge, which, through the application of its technology can bring about desirable changes in the conditions of life."[03]

4.3.    During 1969 the religious was introduced into the definition by inserting it between the words applied and philosophy.[04]

4.4    In the Memorandum of Association of Hubbard Scientology Organisations in South Africa (Pty.) Ltd., the term is defined in the first "objects" clause as follows:

"Scientology is an organized body of Scientific research knowledge concerning life, life sources and the mind and includes practices that improve the intelligence, state and conduct of persons as developed by Lafayette Ronald Hubbard."[05]

4.5.    The aims and objects of Scientology and its relationship to Dianetics is discussed in Chapter 5.

The Founder

4.6.    In the absence of direct evidence, the biographical detail concerning Mr. Hubbard set out in (a), (c), (d) and (e) hereunder is reproduced in summarised form but without change of language or phraseology from some of Mr. Hubbard's own publications and those of his organizations:

1. He was born on the 13th March, 1911, in Tilden, Nebraska, United States of America. He was the only child of Commander H.R. Hubbard, U.S.N., and Dora May Hubbard. He was raised on his grandfather's cattle ranch in Montana. It has often been stated of Hubbard that "he could ride before he could walk." At the age of ten he rejoined his father and mother. At the age of fourteen, his father's duties took the family to the Far East where the young Hubbard travelled extensively in China, throughout Asia and India. In Northern China and India he became intensely curious about the composition and destiny of man, and studied on the one hand with Lama priests, and made himself agreeable on the other to war-like people by his ability to ride.

   At the age of nineteen, Mr. Hubbard commenced study at the University of Washington D.C. where he graduated in Mathematics and Engineering from Columbia College. He also attended the Princeton University and obtained a degree of Ph.D. from the Sequoia University.

2. The Commission is aware of allegations which have from time to time been made that Mr. Hubbard's claims that he holds degrees are false. On the evidence adduced to it, the Commission is unable to verify the accuracy of the claim, but records that according to uncertified copies of documents submitted to it (which documents include a photo-copy of a certificate which purports to emanate from Sequoia University) the degree of Doctor of Philosophy, Honoria Causa, was conferred on Mr. Hubbard by the said University on 10th February, 1953. The following statement is made:

   "You often hear slurs on LRH 'lack of degrees'. LRH was trained in mathematics and science at George Washington University, in government at Princeton and was given his doctor of philosophy degree by Sequoia University in California. But there are no degrees or courses given in Universities for the subjects he researches. He does not practice in any field requiring a degree. He does not need or want degrees, but even so he has them."[06]

3. Pre-war Period

   His first action on leaving college was to blow off steam by leading an expedition into Central America. In the next few years, he headed three, all of them undertaken in order to study savage peoples and cultures to provide fodder for his articles and stories. Between 1931 and 1941 he visited many barbaric cultures and yet found time to write seven million words of published fact and fiction.

   Having first become interested in Asia, in the mind, and in man, he multiplied this interest with his investigations of savage peoples, and by 1938 wrote a never-published work called by the code name "Excalibur", on the basic principles of human existence.

   By 1936 he had become a member of the Explorer's Club in New York City, and until this day, this is his permanent address.

   He has written in addition to travel articles, western, science fiction, and adventure stories, and is still one of the better known science fiction writers. He is called in this field by many the "H.G. Wells of America". He was first called to Hollywood to write a script for a motion picture in 1936, and since that time has done considerable work in this direction.

4. War Service

   Commissioned before the war in 1941, by the United States Navy, he was ordered to the Phillipines at the outbreak of war in the United States and was flown home in the late spring of 1942 in the Secretary of the Navy's private plane as the first United States returned casualty from the Far East.

   As a yachtsman, he had considerable sea experience, and the scarcity of officers and the frequency of torpedoings were such that without rest, he was ordered at once to the command of the former British corvette, the Mist, and saw service for the remainder of that year, serving with British and American anti-submarine war vessels in the North Atlantic. He rose to command a squadron. In 1943 he saw duty in the North Pacific.

5. Post War

   In 1950 Mr. Hubbard supposed he had studied man enough and had written about man enough to write a book about him as such, stressing what made him "tick".

   Although he had early written monographs such as Man Under Stress, and a Description of Mental Workings, from the viewpoint of the physicist and anthropologist, his 1950 work was for popular consumption, written at the behest of a psychiatric textbook publisher. It's name was Dianetics: The Modern Science of Mental Health.

   Because of the public's interest in the book, several connections of the publisher organized a company to serve the communication lines it has created. They formed the Hubbard Dianetic Research Foundation of Elizabeth, New Jersey, and to give it the stamp of approval, made Mr. Hubbard a director.

   There are two such official organizations today and these are the Hubbard Association of Scientologists International of the United States and Great Britain, and the original Hubbard Dianetic Research Foundation.

   Mr. Hubbard still thinks of himself as a writer and a lecturer, not a psychotherapist. His role as he sees it is to give people what he knows about mind and life, and let them use it for the benefit of mankind if they wish. Concerning sudden recoveries from illness, Mr. Hubbard said: "I saw miracles in India and China done by holy men, but long association with them convinced me that they did not know entirely how they did it. I set out to find out from nuclear physics a knowledge of the physical universe, things lacking entirely in Asian philosophy. I made a few discoveries and we have been applying them. I believe any student given a similar background could have done the same thing. I just happened along at the right cross-roads."[07]

6. Character Assessments of Mr. Hubbard

   Witnesses who testified before the Commission gave the following evidence:

   1. "He was a dynamic man with a lot of presence, quite a large man, and I found the only thing that was in his favour, was, he had a great deal of presence, but he is a man who must be obeyed at all costs … I have seen him go up and down a passageway yelling and ranting and banging on the walls, and tearing up a carpet because he was disobeyed. This was at Saint Hill … he is an impressive speaker. Very impressive speaker … Well, he doesn't mix at all. He has no outside interests. He lived entirely inside his Saint Hill mansion. He won't accept telephone calls and he won't accept callers. You have got to come through a busload this and this and this; he won't accept a registered letter. He is very difficult to get to see. You could see the Pope much easier than you could see Ron Hubbard. He would appear for his lecture you know, swoop down and into his pulpit. He was always very elevated when he gave his lectures, deliver his lecture, and disappear again. He was not a man who mixed much amongst his students. And he was really very inaccessible and anything but what he claimed to be."[08a]

   2. "… I didn't know whether he had set himself up as a Messiah or whether the Scientologists had set him up as a Messiah or some sort of god or something and I was pleasantly surprised to find that he was completely human … Made of ordinary flesh and blood, a very big man, flamboyant sort of Texan — slight Texas American accent … bright. Very much alive and all there."[08b]

   3. "He is a big man, red hair, he speaks slowly, a compulsive smoker, a compulsive Coca-Cola drinker, and what shall I say — at a distance, observing this, very aware of his importance. We had to clap when he came in to sit down and everything had to be quiet, the doors closed, then he commenced to speak, and such controls which were a sort of mark of respect, I suppose. And he read with great glee the telegrams and so forth of congratulations which came from various countries, congratulating him on his new techniques — 'Good old Ron has done it again' — this sort of thing. This gave me the impression that possibly he liked this admiration, he was conscious of his position. He wasn't easily tolerant of the environment, the environment had to be very quiet."[09]

The Organization of the Scientology Movement

4.7.    The Scientology organization is encountered in several countries of the world. The world headquarters for the organization is the Hubbard College of Scientology, Saint Hill Manor, East Grinstead, Sussex, England. The Scientology movement has been active in South Africa since the middle 1950's. In September 1955 Dr. Jack Horner arrived in Johannesburg to conduct the first Advanced Clinical Course in South Africa.[10] At present there are Orgs[11] in Johannesburg, Cape Town, Durban, Pretoria and Port Elizabeth. Scientology is also actively propagated in other centres e.g. East London and Bloemfontein. The Commission has not been able to ascertain the exact number of members of Scientology in South Africa, but the figure is put at 25,000 by Mr. Gaiman.[12] This figure is probably the number of names on the South African mailing list and not an indication of true membership. As at December 1971 there were a total number of 3,107 Clears in the entire world.[13] Bearing in mind that the state of Clear is one of the objectives of all true Scientologists and that Mr. Hubbard claims that the precision of his technology has made it a distinctly attainable state, it is quite impossible to regard Mr. Gaiman's estimate as anything but a highly exaggerated one.

4.8.    The most constant characteristic of the Scientology movement over the years has been continual change. The first period — the 1950's to early 1960's — was largely devoted to experimentation, research and explanation. All the basic books on Scientology and Dianetics were published during these years e.g. Dianetics: The Modern Science of Mental Health, Science of Survival, Creation of Human Ability, Scientology: The Fundamentals of Thought, Scientology 8-80, Fundamentals of Scientology, Dianetics: The Evolution of a Science, Scientology: Its Contribution to Knowledge and The Book of Ceremonies. Later publications on the subject contain very little new subject matter.

4.9.    During this period the teaching activities of the organization were still in a fluid state. The various grades now instituted were not yet worked out, with the result that such courses as were taken (e.g. to attain the state of Clear) later had to be revised.[14] The administration with its manifold ramifications[15] was being built up, and individual initiative was given a great deal of scope. There were, for example, co-auditing sessions in which "Students audit students under supervision and with coaching from an experienced and veteran instructor, and in some cases from L. Ron Hubbard."[16] It must be noted that at that stage such veteran instructors could at most have had five years experience. Extensive use was also made of so-called field auditors whose main function was to propagate Scientology and canvass new members. How this should be done is explained in an HCO Bulletin. It stresses the importance of personal contact and gives detailed advice on how to spread Scientology by means of casual contact, newspaper advertisements, addressing and co-operating with groups. The final word of advice is: "Don't try to explain. Penetrate. Don't try to overwhelm. Penetrate."[17] At this time individual scientologists were also permitted to set up private Scientology practice.[18]

4.10.    By 1961 the organization was working on a fixed pattern as is evident from the following:

"There are now two types of Scientology Organizations. One is the large Central Organization as represented by Washington, Los Angeles, London, Melbourne, Capetown and Auckland. The other is the City Office as represented by Sydney, Perth, Durban, Jo'burg, Port Elizabeth, New York, Detroit, Twin Cities, San Diego, etc.

Fundamentals

Fundamentally, a City Office evolves much as a large Central Organization did.

A City Office at first cannot use or afford the extensive pattern of a Central Organization and still remain solvent.

There is a make-break point above which one can afford the six department system and below which one has to 'cope'. This is at a minimum at £100 per week income or $1200. Until one routinely has that, one cannot do otherwise than 'cope'.

A City Office is at its beginning characterized by the fact that everyone on staff wears all the hats.[19] There is no individuation of departments. Later some semi-individuation can take place. This comes in as income grows.

Even if all the titles are worn, the departments do not exist in fact and a condition can arise where people try to be Dept heads when they are really just sweeping floors.

In a City Office at first one cannot afford to employ Administrative staff who only Administer. The first break-out of this is hiring a receptionist.

A City Office is composed almost entirely of technical personnel who while working at technical activities (teaching, processing) somehow handle Administration.

A City Office invoices everything received, banks it all and pays all its salaries and bills by cheque. That is the lowest rung of an Accts Dept. Probably the Assn. Sec. in a City Office does this. The records are kept no further and someday get audited.

The fundamental action of a City Office is technical service.

A Running City Office

A City Office could be said to be running when it is receiving income for its support. This is paramount above posts and patterns.

An Established City Office

A City Office which is well established may have seven or eight people on staff.

Almost all of these people render at least some technical service except reception. For example:

• Assn. Sec. is Promotion, also Interview Registrar, Dir. Accts and Purchasing.

• D of P is a Registrar, does all Letter Registration and Invoicing.

• Dir. Mat. keeps the place clean, does Address and Mail.

• D of T teaches all students all classes.

• PE Director handles PE and Co-audit both (staggered nights).

• Any additional personnel are staff auditors.

A crew such as the above (such as HASI[20] London, 1956) can actually make £500 or $1 500 a week using only five rooms and this small staff.

Now very little Admin is expected of these people. The whole of Admin is a weekly financial breakdown for the unit and Adcomm reports, pc[21] graphs and auditors reports, student training reports and local mailings. Nobody expects OIC boards to be kept or long winded reports to be made.

The Test Line

To an established City Office, already doing well, a Test Line may be added providing it requires only the services of two people — one as Test in Charge, the other as Test Marking, Evaluation and Test Mailing.

If the PE Director is the best control person in the Org, the test line would then have a hope of paying off very well.

A test line should probably not be put into a City Organization which is not yet an established office.

HCO[22] Office

A City Office has an HCO Area Office.

The actions and duties of this office are covered by HCO Policy Letters.

But in a City Office there is an added action for the HCO Area Sec. She may or may not have a communicator, depending on the size of the 5%. But the HCO Area Sec in a City Office assumes the HCO Continental Hat for Broad Dissemination in that area.

The HCO Area of a City Office must think about, handle and bring off special events.

These consist of Free Open Evenings, Tape Plays, Junior Congresses, Meetings for Field Auditors in the area and any special activity calculated to interest people in Scientology in that area.

Summary

A City Office, well-handled can grow to become a Central Organization with a Six Department System. But its income must rise above £500 a week or $1500 before it starts adding anything but technical personnel."[23]

This Policy Letter was re-issued under a Policy Letter of the 30th October, 1963 — Concerning City Offices. Policy Letters of the 9th April, 1961 — City Offices Successful Patterns — the 2nd May 1961 — Procedure on setting up city offices — and the 11th May, 1961 — City Offices — were also re-issued under the Policy Letter of the 30th October 1963.

4.11.    Mr. Hubbard remarks:

"As I had no legal control over these Orgs. and as (especially the first Los Angeles Dianetic Org) the staffs elected their own heads (a fatal error) and as security was zero-minus there is little to be learned from them of a positive nature. Negative lessons consisted of:

1. I keep control of the Orgs.
2. No heads of Orgs. may be elected.
3. Security is vital.
4. Press must be avoided.
5. Vested interests first try to capture an Org., then try to invalidate me to the public, then try to infiltrate.
6. Finance must remain for Scientology, not for private profit.

These were bitter lessons and have determined our pattern of organization from the moment in 1952 that I managed to regain control and put a gradual end to the various evils which began with the pre-Book One attacks on Dianetics by an aberrated society."[24]

It is interesting to note that there were further trials for Mr. Hubbard as the following indicates:

"JOHANNESBURG

During October '62, it was brought to my attention by HCO World Wide executives that the Central Organization in Johannesburg was refusing to report or answer up on despatches.

An investigation has subsequently demonstrated that … the organization had quietly, without advices elsewhere, slipped about R24,000 in the red. Upwards of R18,000 of this did not belong to the Johannesburg organization but had been taken from HCO WW.[25] All reports to hand at HCO WW during the past six months however, are full of phrases like, 'we are doing fine', 'all is well', etc. While money is not a prime consideration in Scientology, abuse or lack of it by an organization can destroy a dissemination point."[26]

4.12.    A general tightening up of control and discipline became noticeable. This is reflected by the issue of a series of Policy Letters viz. —

• The Fair Game Law, dated 1.3.1965

• Justice: Offences and Penalties, dated 7.3.1965

• Ethics: Review, dated 29.4.1965

• Ethics Chits, dated 1.7.1965

• Suppressive Persons, dated 7.8.1965

• Suppressive Acts, dated 23.12.1965

• Public Investigation Section, dated 17.2.1966.

In addition the private practice of Scientology was discontinued,[27] and internal control became more stringent. Duties were precisely defined.

"HATS, THE REASON FOR

HAT:— Slang for the title and work of a post in an org. Taken from the fact that in many professions such as railroading the type of hat worn is the badge of the job.

Organization consists of certain people doing certain jobs.

Disorganization consists of each person wearing all hats regardless of assignment.

In a smooth organization that runs well and succeeds EACH PERSON WEARS HIS OWN ASSIGNED HAT.

When a person has a job that belongs to another hat than his own, he passes the job to the other hat.

Each staff member is a specialist. He specialises in his own hat."[28]

4.13.    A close check was kept on productivity and disciplinary measures were instituted to ensure that everyone was on the job.[29]

4.14.    That these and other policies emanated directly from Mr. Hubbard and were required to be enforced was made clear by a witness who worked for a time as Mr. Hubbard's personal communiqué at Saint Hill Manor, East Grinstead, Sussex, England, in 1966.[30]

4.15.    Another change of direction for Scientology is indicated by the following:

"It is of interest to all organizations that all Scientology incorporations are religious in nature.

…

For information of the London and Commonwealth offices, they will soon be transferred to Church Status when the Founding Church of Washington DC is given full tax exemption, and HASI Ltd. and HCO Ltd. shares will be converted to equally valuable Church certificates. Scientology 1970 is being planned on a religious organization basis throughout the world."[31]

4.16.    During 1968 Mr. Callaghan, the British Home Secretary, took a decision which prohibited Mr. Hubbard from re-entering Great Britain.

4.17.    On July 25th, 1968, the British Minister of Health made a statement in the British House of Commons to the effect that the Government satisfied itself that Scientology is socially harmful. He announced that the following steps would be taken with immediate effect:

1. "The Hubbard College of Scientology, and all other scientology establishments, will no longer be accepted as educational establishments for the purposes of Home Office policy on the admission and subsequent control of foreign nationals;

2. Foreign nationals arriving at United Kingdom ports who intend to proceed to scientology establishments will no longer be eligible for admission as students;

3. Foreign nationals who are already in the United Kingdom, for example as visitors, will not be granted student status for the purpose of attending a scientology establishment;

4. Foreign nationals already in the United Kingdom for study at a scientology establishment will not be granted extensions of stay to continue these studies;

5. Work permits and employment vouchers will not be issued to foreign nationals (or Commonwealth citizens) for work at a scientology establishment;

6. Work permits already issued to foreign nationals for work at a Scientology establishment will not be extended."[32]

4.18.    The action referred to in the preceding two paragraphs appear to have led to variations in the organization, practice and teaching of Scientology.

1. Mr. Hubbard established a Scientology sea organization on a sea-faring vessel, the Apollo, which seems to be the headquarters of that organization.

2. The lessened effectiveness of Saint Hill as the main educational centre for Scientology throughout the world led to the establishment of similar colleges in Denmark and California.

4.19.    Mr. Hubbard, his present wife and their children now appear to spend most of their time on the Apollo. Indeed Mr. Hubbard's daughter, Diana, was married aboard the vessel on the 24th March, 1971.[33]

4.20.    Mr. D.B. Gaiman, the Deputy Guardian of the Church of Scientology World Wide, told the Commission in evidence that it is a falsehood to say at the present time, as some persons have at times suggested, that Mr. Hubbard controls the Church of Scientology organization throughout the world and is in fact the managing director. He referred the Commission to a policy letter which deals with the present position of Mr. Hubbard as follows:

"FOUNDER

In that new boards of directors are being elected for the various corporations and their branches, I am resigning the title of Executive Director and in accordance with a resolution of the general meeting of charter members am being given the title of 'Founder' instead. Hereinafter all SecEds will be signed for L. Ron Hubbard, Founder, as the name is now owned by the corporation.

The 'Office of LRH' remains as before. The designation SecEds does not change.

All Org Boards should change the top line Executive Director to 'Founder' in letters of similar size.

None of this changes various communications lines, but Policy Letters are hereafter to be accepted or nullified by Boards of Directors in their regular meetings.

I have not for a long while received pay from any organisation and my services are wholly volunteer.

The name Hubbard has been purchased by the organisations.

There are considerable outstanding sums loaned by me to orgs or owed to me by orgs and these should be paid as feasible, carrying me as a creditor in Disbursement Files.

I have worked long to stabilize and expand orgs and to complete technology and policies and am resigning on a high statistic.

I am still available for consultation and for signature, the signature being purchased by the orgs.

My Office of LRH as Founder remains mine as the public demonstrably stays away from orgs that do not bear the name 'L. Ron Hubbard' and I do not wish to damage their 'traffic' volume.

This is not a retirement but is a resignation from all director posts and the conducting of organisations by myself.

Organisations have now proven they can manage themselves and with mainly Clears in charge should come to no grief.

This affects all corporate structures in that I am not now a board member.

Bank accounts need no longer bear my signature but as they are so numerous and the task of changing them so great, I leave this to the new Boards to accomplish when they can.

I would appreciate the new boards holding early meetings to review or accept policy and bank mandates as soon as possible as I wish to remain available to answer any questions.

On specific request, as a writer, I will write books on Scientology, its organisation, and will write HCO B's and Policy Letters as requested. This is my writer hat.

L. RON HUBBARD."[34]

4.21.    The Commission is, the above policy letter notwithstanding, convinced that Mr. Hubbard's influence in the general structure and organization of the Scientology movement is still considerable and decisive. It is significant that the advertisement of the Sea Org bears the heading: "The Sea Org — Ron needs you now!"[35], and that the Sea Org is represented as the Training centre for the advanced OT grades especially with a view to posts in Africa.

4.22.    A Flag Order outlines special functions of the Sea Org officers as follows:

"The Sea Org sends its officers to individual orgs with unlimited powers to handle

1. Ethics
2. Tech
3. Admin.

A general Sea Org Mission handles all three.

…

Controlling the upper end of the Bridge and having so many Class VI and Class VIIs and OT[36] Grade Vs and OT Grade VI personnel, the technical level of the Sea Org is very high.

…

The confront and organizational ability of Sea Org personnel is high above that of purely admin personnel.

Such activities give a strong base for Sea Org pre-dominance.

…

The Sea Org has an area of public or political control based on

1. ETHICS ACTION
2. PEACE
3. FINANCE AND ADMIN.

The above are the basic elements in Sea Org planning for use in future activities and for use by orgs in coordinating with the Sea Org."[37]

4.23.    That Mr. Hubbard is by no means a passive member of the Sea Org is confirmed by the evidence of Mr. Gaiman, who said that Mr. Hubbard trains scientologists who go to the Sea Org.[38]

4.24.    As from July, 1970, a Flag Executive Briefing Course has been available aboard the Flagship Apollo.[39]

4.25.    The St. Hill Special Briefing Course at the Advanced Organisation St. Hill Denmark (SHSBC at AOSHDK) caters for the training needs of scientologists from all of Europe and South Africa.[40]

4.26.    On the 31st August, 1965, a company —

Hasi (Proprietary) Ltd.,

was incorporated under the Companies Act No. 46 of 1926, as amended, with registered office situate in the Transvaal and with a share capital of R10,00 divided into ten shares of R1,00 each. The name of the company was changed to —

Hubbard Scientology Organisation in South Africa (Pty.) Ltd.

pursuant to a special resolution dated 23rd December, 1966. This change was registered by the Registrar of Companies on the 23rd January, 1967. The share capital was increased to R100,00 by special resolution dated 5th December, 1967.[41]

"The Objects for which the Company is established are:

1. To conduct and carry on any and all kinds of scientific research especially with reference to the human mind, spirit and soul in mental psychosomatic and allied fields and the grounds and processes of human knowledge, and to apply that knowledge; to further the dissemination and advancement of knowledge of all kinds and in particular of the human mind and the functioning thereof; and in particular to achieve such objects by the means and in accordance with the principles of the science known as Scientology developed by Lafayette Ronald Hubbard, and outlined in his work 'Scientology 8-8008' and in other works by him. 'Scientology is an organized body of scientific research knowledge concerning life, life sources and the mind and includes practices that improve the intelligence, state and conduct of persons as developed by Lafayette Ronald Hubbard'.

2. To conduct, establish and support schools, classes and lectures and to employ and train persons to teach and conduct the same.

3. To conduct guidance centres or clinics to make the data and technology of Dianetics and Scientology available to individuals and groups.

4. To produce, print, publish, sell, circulate and distribute gratuitously or otherwise, films, books, pamphlets, periodicals and literature of all descriptions and to exchange educational material with other kindred organisations and in particular with Hubbard Association of Scientologists.

5. To receive subscriptions, donations and legacies for the purposes of applying the same to or for any of the objects of the Company and to apply the same accordingly.

6. To prosecute and execute directly or by contributions or other assistance any such or any other works, undertakings, projects or enterprises in which, or for the prosecution whereof, or on the security whereof, or of any profits or emoluments derivable therefrom, the Company shall have invested money, embarked capital, or engaged its credit.

7. To purchase and hold for investment or otherwise acquire for investment property and rights in shares, stocks, bonds, debentures, scrip, securities, units, bills of exchange, promissory notes, negotiable or transferable instruments, contracts and obligations of any description.

8. To purchase or otherwise acquire immovable properties, particularly with a view to deriving rent or other income therefrom; to improve the income earning capacity of such properties by erecting, constructing, altering or repairing buildings or other erections and constructions thereon; to lease such properties to tenants; to sell such properties and to utilise the proceeds in the acquisition of other properties; and to exchange such properties for other properties.

9. to acquire any such property or rights by original subscription, tender, purchase, participation, exchange or otherwise; to underwrite or subscribe for the same conditionally or otherwise; to guarantee the subscription or underwriting thereof with a view to investment and to vary, realise or otherwise deal with the investments of the Company by sale, exchange or otherwise.

10. To invest and deal with the monies of the Company (whether belonging to it in its own right or held in its capacity as a Trustee) in such manner and on such security as may from time to time be determined and in particular on the security of the mortgage of immovable property or the pledge of movable or incorporeal property.

11. To lend money to such persons and on such terms as may seem expedient and in particular to any person or company having dealings with the Company; and to give and to enter into suretyships or guarantees for the performance of any contract or obligation by any person or company or in connection with any part or portion of the business or objects of the Company.

12. To guarantee the payment of money secured by or payable under or in respect of bonds, debentures, debenture stock, contracts, mortgages, charges, obligations and securities of any company in which this Company is interested.

13. To raise or borrow or secure the payment of money, or the performance of any obligation in such manner and on such terms as may seem expedient, and in particular by the issue of debentures or debenture stock, whether perpetual or otherwise, and by passing bonds for registration with the proper authorities, and charged or not charged upon the whole or any part of the property of the Company, both present and future, including its uncalled capital, and to redeem, purchase or pay off any such securities, and to confer any special rights and privileges on the holders of such debentures or debenture stock or bonds.

14. To sell, improve, manage, develop, exchange, enfranchise, lease, mortgage, dispose of, turn to account or otherwise deal with all or any part of the property or rights of the Company.

15. To act as agents for the investment, loan, payment, transmission and collection of money, and for the purchase, sale, improvement, development and management of property, including business concerns and undertakings, and generally to transact and undertake all kinds of agency business, whether in respect of financial, commercial or agricultural matters.

16. To undertake and execute any trust whatsoever either gratuitously or otherwise; to hold and administer any property movable or immovable vested in the Company by virtue of or in terms of any trust undertaken by it; to deal with and dispose of any such property in accordance with the terms of the trust; to exercise any powers or discretions vested in or conferred upon the Company as trustee of any trust; to charge and receive a remuneration for its service as a trustee.

17. To apply for, purchase or otherwise acquire any patents, brevets d'invention, licences, concessions and the like, conferring an exclusive or non-exclusive or limited right to use any secret or other information as to any invention which may seem capable of being used for any of the purposes of the Company, or the acquisition of which may seem calculated, directly or indirectly, to benefit this Company, and to use, exercise, develop, grant licences in respect of, or otherwise turn to account the property, rights and information so acquired.

18. To purchase, take on lease or in exchange, hire or otherwise acquire, any movable or immovable property, and any rights or privileges which the Company may think necessary or convenient with reference to any of these objects, or capable of being profitably dealt with in connection with any of the Company's property or rights for the time being, and in particular any land, buildings, servitudes, licences, mines, mining rights and title, apparatus, equipment, instruments, appliances, formulae, processes, machinery, vehicles, plant and stock-in-trade, shares, stocks, bonds, debentures, scrip, securities, units, bills of exchange, promissory notes, negotiable or transferable instruments, and to pay for any such property, rights or privileges, either in cash, shares, debentures or securities of the Company, or partly in cash and partly in such shares, debentures or securities or otherwise.

19. To take part in the formation, management, supervision or control of the business or operations of any company or undertaking, and for that purpose to appoint and remunerate any directors, accountant or other servants or agents.

20. To act as managers, secre[ta]ries, consulting engineers, technical advisers, members of any local or advisory committees and/or promoters of other companies; to secure the appointment of the Company's nominees as directors or managers and/or members of any local or advisory committees of other companies, upon such terms and conditions as it may think fit, and in particular to arrange with any person or persons so appointed for the cession by such person or persons to the Company of any fees or other remuneration which any such person or persons may receive or be entitled to receive as remuneration for his or their services as a director or directors or a member or members of a local or advisory committee of any such company or companies; to give to any person who is a director or a member or members of a local or advisory committee or any other company or companies and who agrees to cede to the Company any fees or other remuneration which he may receive or be entitled to receive as remuneration for so acting, in consideration of his so doing a percentage or percentages of the profits made by the Company and/or of the amount distributed or to be distributed by the Company by way of dividends, whether in cash or otherwise, or to make any other arrangements with such person or persons on account of such cession as aforesaid as the the Company may deem fit.

21. To carry on all or any of the businesses of manufacturers, producers, assemblers, converters, servicers, repairers, importers, exporters, distributors and wholesale and retail dealers of and in goods, articles, commodities, products, produce, livestock, materials (raw and finished), metals, minerals, ores, substances and preparations of whatsoever kind or description, including machinery, plant, vehicles, equipment, rolling stock, tools, implements, instruments, apparatus, utensils and foodstuffs, and to import, export, buy, sell and deal in the same, and to act as agents for or representatives of local or foreign principals, manufacturers, producers or merchants and to hold or exploit the exclusive or non-exclusive right to purchase, vend, dispose of and deal in the goods, articles, commodities, products, produce, livestock, materials, metals, minerals, ores, substances and preparations manufactured or dealt in by any such manufacturers, producers or merchants, and to enter into contracts in that behalf.

22. To carry on any of the following businesses in all their branches, that is to say: Agents (whether air transport, shipping, landing and forwarding, customs, market, indent, estate, general and commission or otherwise), aircraft owners, air service operators, appraisers, auctioneers, bankers, boarding-house keepers, boiler-makers, book-[k]eepers, brass-founders, brewers, brokers, builders, canners, carriers, chemists (whether manufacturing, industrial, analytical, pharmaceutical or otherwise), club proprietors, consultants, contractors, dairymen, decorators, druggists, dry cleaners, educationalists, electricians, electricity suppliers, engineers (whether civil, consulting, electrical, mechanical, mining, structural or otherwise), engravers, entertainment providers, executors, farmers, film makers and operators, financiers, florists, furniture removers, gold, copper and silversmiths, hairdressers, horticulturists, hotel keepers, insurers, ironmasters, jewellers, launderers, leather tanners, librarians, licensed victuallers, lithographers, managers, market gardeners, metal and wood-workers, metallurgists, millwrights, miners, motor garage owners, motor transport operators and carriers, newspaper proprietors and publishers, nurserymen, opticians, packers, painters, pawnbrokers, petroleum refiners, planters, printers, publishers, quarry owners, railroad operators, refiners, restaurant keepers, salvagers, saw-millers, secretaries, shipowners, smelters, smiths, steel-converters and workers, stevedores, surveyors, theatre owners and operators, timber growers, township owners, transport contractors, trawler operators, trustees, upholsterers, valuers, warehousemen.

23. To carry on any other business, whether manufacturing, trading or otherwise, which may seem to the Company capable of being conveniently carried on in connection with any of the objects herein specified or calculated directly or indirectly to enhance the value of or to render profitable any of the Company's property or rights.

24. To purchase or otherwise acquire and undertake all or any part of the business, property and liabilities of any person or company carrying on business which this Company is authorised to carry on or possessed of property suitable for the purposes of this Company.

25. To enter into partnership or into any arrangement for sharing profits, union or interest, joint adventure, reciprocal concessions or co-operation with any person or company carrying on or engaged in or about to carry on or engage in any business or transaction which this Company is authorised to carry on or engage in,or any business or transaction capable of being conducted so as directly or indirectly to benefit this Company, and to guarantee the issue of, take or otherwise acquire and hold, shares or stock in, or securities of and to subsidise or otherwise assist any company, and to sell, hold, re-issue with or without guarantee, or otherwise deal with such shares, stocks or securities.

26. To amalgamate with any other company having objects altogether or in part similar to those of this Company and to promote or assist in promoting any company or companies for the purpose of its or their acquiring all or any of the property, rights and liabilities of the Company, or for any other purposes, which may seem directly or indirectly calculated to benefit this Company.

27. To enter into any agreement with any Government or authorities, supreme, municipal, local or otherwise, and to obtain from any such Government or authority any rights, concessions and privileges that may seem conducive to the Company's objects or any of them.

28. To sell the undertaking of the Company or any part thereof for such consideration as the Company may think fit and in particular for shares or debentures, debenture stock or other securities of any other company having objects altogether or in part similar to those of this Company.

29. To establish and support or aid in the establishment and support of associations, institutions, funds, trusts and conveniences calculated to benefit employees or ex-employees of the Company (or its predecessors in business), or the dependants or connections of such persons, and to grant pensions and allowances, and to make payments towards insurance, and to subscribe or guarantee money for charitable or benefolent objects, or for any exhibition, or for any public, general or useful object.

30. To draw, accept, endorse, discount, execute and issue bills of exchange, promissory notes, debentures, bills of lading, warrants and other negotiable or transferable instruments or securities.

31. To distribute by way of dividend or bonus amongst the members such specific assets belonging to the Company as may be determined by the Company, and in particular shares, stock, debentures or securities of any other Company held by or otherwise belonging to the Company, but so that no distribution amounting to a reduction of capital be made except with the sanction (if any) for the time being required by law.

32. To pay all expenses of and incidental to the registration and promotion of the Company.

33. To do all or any of the above things in any part of the world, and either as principals, agents, trustees, contractors or otherwise, and either alone or in conjunction with others, and either by or through agents, sub-contractors, trustees or otherwise.

34. To do all such other things as are incidental or conducive to the attainment of the above objects, and so that the word 'Company' in this Clause shall, except when used with reference to this Company, be deemed to include any partnership or other body of persons, whether incorporated or not incorporated, and whether domiciled in the Republic of South Africa or elsewhere.

THE Objects set forth in any sub-clause of this Clause shall not, except when the context expressly so requires, be in any wise limited or restricted by reference to or inference from the terms of any other sub-clause or by the name of the Company. None of such sub-clauses or the objects therein specified or the powers thereby conferred shall be deemed subsidiary or auxiliary merely to any other sub-clause or the objects therein specified or the powers thereby conferred, but the Company shall have full power to exercise all or any of the powers conferred by any part of this Clause in any part of the world, and notwithstanding that the business, undertaking, property or acts proposed to be transacted, acquired, dealt with or performed do not fall within the objects of any particular sub-clause of this Clause."[42]

4.27.    On the 27th November, 1968, a Company — The Church of Scientology in South Africa (Proprietary) Ltd., was incorporated under the Companies Act No. 46 of 1926 as amended with the object inter alia —

"(r) To take over from the [Company?] known as Hubbard Scientology Organisations in South Africa (Proprietary) Limited its assets and liabilities and all affairs of that Company as a [?]ing concern without payment, and to devote such to the furtherance of the objects of this Company."[43]

4.28.    The remaining objects of the Company — The Church of Scientology in South Africa (Proprietary) Limited are:

"2. …

1. To accept and adopt the aims, purpose, principles and creed of The Mother Church,'THE CHURCH OF AMERICAN SCIENCE', of Camden, New Jersey with the power, objectives and duties as herein defined and enumerated.

2. To [?] in the principles and [?] of the Church of American Science.

3. To [?] the work of the Church of American Science, [?] and minister to and conduct congregations.

4. To resolve the travail and difficulties of members of congregations, as they may appertain to the spirit.

5. To instruct in spiritual healing acts and other matters within the Creed of the Church of American Science.

6. To conduct seminaries and instruction groups.

7. To create congregations and have other powers similar to those of the Church of American Science.

8. To propagate the religious faith know as SCIENTOLOGY. Believing that Man's best evidence of God is the God he finds within himself, and trusting with Enduring Faith that The Author of this Universe intended Life to thrive within it, the Church of Scientology is formed to espouse such evidence of the Supreme Being and Spirit as may be knowable to Man and by their use the Church of Scientology hopes to bring a greater tranquility to the State and better order and survival to Man upon this planet.

9. The Church of American Science exists upon the following creed which is adopted as the creed of the Church of Scientology of California, with the additional tenets provided for in n[umb]er 5 and 6 below:

   1. That God works within Man his wonders to perform.
   2. That Man is his own soul, basically free and immortal, but deluded by the flesh.
   3. That Man has a God-given right to his own life.
   4. That Man has a God-given right to his own reason.
   5. That Man has a God-given right to his own beliefs.
   6. That Man has a God-given right to [?] thought and [?] thinking.
   7. That Man as a God-given right [?].
   8. That [?].
   9. That [?].
   10. [?]
   11. [?]
   12. The Church of Scientology exists to assist the strong and the weak, to suppress the wrongdoer and to champion the right and Godly. Its mission is to carry to Man, revelations and teachings and practices of the present and the ages past and to assist him[,] his family and communities to live in greater peace and harmony.
   13. To practice the teachings and beliefs and propogate in accordance with its tenets the healing of the sick and suffering by prayer or other mental and/or spiritual means without the use of drugs or material remedy.
   14. The Holy Book of the Church of American Science consists of a collection of the works of and about the Great Teachers, including the work, St. Luke.
   15. The Saints of the Church of American Science are the messiahs and religious philosophers.
   16. The specific teachings of the Church of American Science concerns its Holy Book and these contributions on the Mind and Spirit made in more recent times as a result of scientific investigations concerning the human spirit and the physical universe.

10. To charter, support, organize, establish, co-operate with, affiliate with, other organizations of a like or similar nature.

11. To apply for, hold and dispose of copyrights, patents and trademarks.

12. To print and publish articles, books, lessons, periodicals, radio and/or television script or other media for the purpose of dissemination of the religious faith, Scientology, to the public.

13. To acquire by purchase, deed, gift, devise, bequest, or otherwise hold or manage, operate, to improve, sell, lease and or deal with or in any immovable or movable property of any sort or character, or wherever situated, as may be necessary for the business and objects, aims, and purposes of the company, and to transact all business relative thereto.

14. To enter into, make, perform, or carry out contracts of any kind with any firm, person, persons, partnership, corporation, church or association; to do any and all acts necessary or expedient for carrying out any or all of the objects, aims or purposes of the company in the Republic of South Africa or anywhere else in the world.

15. To act as trustees under any trust incidental to the principle objects of the corporation and to receive, hold and administer and expand funds and property subject to such trusts as may be confided to the company.

16. To have offices and to promote and carry on its aims, objects withing and without the Republic of South Africa, and in particular in all other countries on the African Continent.

17. To do and perform all other acts or things necessary or incidental to any of the objects, aims or purposes herein set out."[44]

4.29.    During 1969 the Directors of Hubbard Scientology Organisation in South Africa (Proprietary) Limited reported as follows to the shareholders of the Company:

1. "THE STATE OF THE COMPANY'S AFFAIRS
   The fixed properties of the Company were sold during the year for R67,500-00 and transfer was only effected in the name of the purchaser in February, 1969. The Company ceased its activities on 31st December, 1968, and transferred all its assets and liabilities to the Church of Scientology in South Africa (Pty.) Ltd. at that date …"[45]

4.30.    Mrs. Lacey, the Assistant Guardian of the Church of Scientology in South Africa (Pty.) Ltd., in evidence before the Commission stated that the Board of Directors of the Company controls the various churches in the Republic of South Africa mainly pursuant to directives issued by the World Wide Church Council. The administrative divisions of the Church are set out in the chart hereunto attached and marked Annexure "D" which was presented to the Commission as an exhibit.

4.31.    In South Africa the Church of Scientology in South Africa (Pty.) Ltd., has offices in Johannesburg, Durban, Cape Town, Port Elizabeth and Pretoria.

4.32.    Intelligence files are, without doubt, extensively kept by all South African Organizations. The form to be used by Intelligence Officers for Investigation Reports is prescribed as follows:

"INTELLIGENCE REPORT.

Intelligence Chief WW
Via: D/Guardian WW
     Asst. Guardian .................
Investigator  .......................
           
1.  Person being investigator:   ........................................
           
2.  Source of information:  .............................................
           
3.  Where investigation was conducted:  .................................
           
4.  Time investigation took:  ...............  Travel Time:  ............
           
5.  Date obtained:  .....................................................
           
    .....................................................................
               
    .....................................................................
               
    .....................................................................
               
6.  List of evidence appended:  .........................................
           
      (append evidence)  ................................................
                 
                         ................................................
                                    
                         ................................................
                                    
7.  Country: .............. State or district: ........... City .........

8.  Names of all persons mentioned in above report:

    .....................................................................

    ....................................................................

    ....................................................................

                                              Signature of Investigator"

4.33.    It is clear from the fact that the report is addressed to the Intelligence Chief WW, that independent records are kept at World headquarters at Saint Hill. Further confirmation of this inference is derived from the wording "c.c. Guardian Intelligence WW" usually found at the top left hand corner of intelligence documents. A copy of a report of an interview held with Dr. E.L. Fisher, M.P., by Mrs. J.N. Ollemans referred to in paragraph 9.8 of Chapter 9 infra — serves as an example of this practice.

4.34.    The keeping of complete files on all Suppressive Persons engaged in anti-Scientology actions is a requirement.[46]

4.35.    The keeping of files is not confined to active opponents of Scientology. In South Africa the investigation searchlight fell on many prominent citizens including Cabinet Ministers. This is revealed by a letter dated 29th July, 1968, addressed to Mrs. Mary Sue Hubbard in her capacity as the Guardian World Wide by Mrs. Ellen Dunning. The letter reads:

"Guardian WW
via Dep. Guardian WW
Asst. Guardian AF
LRH Comm AF
Intelligence Chief AF
Legal Chief AF
PRO Chief AF
Intelligence, Legal and PRO Admin Officer AF

Dear Mary Sue,

The following files are in LRH's office in Johannesburg. I would like permission to remove these files and place them in the Office of the Guardian in Intelligence, Legal and PRO as the contents are relevant to these posts. The list is as follows:

LEGAL FILES

• Acts
• Provincial Secretary
• Memberships Lists
• Share Memos
• Shares Lists and Advises
• Shares — Bank Deposit Slips Applications etc.
• Shares
• Life Memberships
• HASI Ltd. (U.K.)
• Incoming
• Contracts
• Registration
• Miscellaneous — Legal
• Legal Financial (Sapire Jacobson & Creswick)
• Legal Financial (Barclays Bank)
• Copyrights
• Trademarks
• Legal Business — M. Lebos (Lebos and Lebos)

PRO FILES

• Johannesburg Chamber of Commerce
• The Hon. E.H. Louw
• C.R. Swart
• The Hon. D.C.H. Uys
• The Hon. B.J. Schoeman
• The Hon. P.M.K. Le Roux
• The Hon. Dr. A. Hertzog
• The Hon. W.A. Marec
• The Hon. J. De Klerk
• The Hon. J.J. Fouche
• The Hon. Minister F.C. Erasmus
• The Hon. P.M. Botha
• Mr. J.P. De Villiers
• Mr. G.P. Jooste
• Mr. W.H.P. Cordell
• Mr. Von Schuur
• Mrs. Sauer
• The Hon. J.F.T. Nande
• Dr. D.H. Steyn
• Mr. G.W.E. Browne
• Dir. of Immigration
• List of Ministers, Senators, M.P.s
• Mr. C.B. Young
• Commissioner for Native Affairs of Johannesburg
• Mr. C. Heald
• The Hon. B.J. Vorster
• The Hon. M. Viljoen
• Senators
• Mr. W. Du Plessis
• S.A.B.C.
• Radio Afrika
• Dept. of Official Affairs

INTELLIGENCE FILES

• Newspaper Contacts
• Press
  • Die Vaderland
  • Transvaler
  • The Star
  • Sunday Express
  • S.A. Associated
  • Newspapers
    • Cape Times
    • Dagbreek and Sendagnurs
    • Huisgenoot
    • Landstem
    • Brandwag
    • Cuttings
• Scientology — The Catholic Viewpoint
• Envelope containing Press Clippings
• Press General Info — 2 Correspondence
• Correspondence re IQ Tests in March 1961

OK ..........................  NOT OK  ............................

Best,

{Sgd.} Ellen
Ellen Dunning."

4.36.    At present, according to the testimony of Mr. Gaiman the Scientology Organization World Wide is governed by a Board of Directors consisting of five members and assisted by a Guardian World Wide and seven Deputy Guardians. The Guardian World Wide is the senior executive of the Church of Scientology.

4.37.    In each continental area there is also a Guardian (called Assistant or Deputy Guardian). The Deputy Guardian for the Republic of South Africa is the senior executive in administration and planning and implements policy. The Deputy Guardian is a member of the Board of Directors of the Church of Scientology in South Africa (Pty.) Ltd. This Board of Directors is not compelled to carry out policy laid down by the World Wide Board and may introduce new polity of its own, provided it is within the sphere of the Articles of Association and the rules and regulations of the Church. This means that the various Scientology churches throughout the world are now autonomous.

4.38.    In addition to the Deputy Guardian for the Republic of South Africa and the Board of Directors of the Church of Scientology in South Africa (Pty.) Ltd., there is also an Executive Council for Africa (three members), which is responsible for the day to day running of the Church and Organizations in the Republic of South Africa, and a Director of Social Work.[47]

For the rest the work in the Organizations is presumably carried out by the auditors, directors of training, chaplains, secretaries, security officers and other members of staff.

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Report of the Commission of Enquiry into Scientology for 1972
Republic of South Africa