HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W. 1 HCO POLICY LETTER OF 16 APRIL 1959 BOOKS, COST OF Inform all Assoc Secs The principal comm particles of Scientology Organization are books. Obviously, books cost money. When books are sold their money must be safeguarded so that replacement books can be bought. Book monies cannot be part of Prop Income. A book is bought by a Central Organization at 50% of the list price, sold to members at 80%. If this 80% is halved for prop pay and added to salary sum, it costs the Org 10% of list just to handle the book! This means a 10% loss every time a book is sold! Therefore books cannot become part of the salary or expense sum. They must remain as they are, the income from them kept ready to buy new stocks when old stocks are exhausted. The price of all books should be computed on the basis that when 20% is deducted from the price for members, a round sum remains which is not less than 4 times the exact printing cost. No book may be listed at less than 5 times the cost of one volume. Only then can the sale of books be remunerative enough to buy new stocks. As policy, no book may be printed without my permission. Most books will be printed in London or the U.S. These books will be sold to Central Orgs by HCO Ltd for a distributor figure of 50% of the list price. The books will be shipped as soon as ready. The continental magazine should forecast only any book (or tape) until it is actually in hand, then announce it as arrived and on sale. No book should be neglected. Send copies gratis to local papers for review always each time a new book appears, or whenever an old book has been neglected in this way. Announce in the magazine. Advertise on the Bulletin Board. Push books at Congresses. From 10 to 25 people read every book sold, according to advertising people. This then is high level dissemination. Send out the continental magazine every month or two, one issue to the whole list you have, not just to members. And advertise Books, Books, Books. About once a year send a full list of books on hand on a sheet order form to everyone. This says "Which of these books don't you have?" People order them by the ton from the form by marking X and sending a cheque. Book business is cash business from a Central Org to the field. Credit on books can be a bad headache in several ways. Send out your magazine to the whole mailing list frequently. Heavily advertise books first, services second. And set the money you get aside. I am about to do several new books. A new book can sell two to three thousand copies in your area in a few weeks if you handle it right. Books are the sparks you need to light the fire. Let's handle them so they make us (as above) not break us. LRH:mp.aap.cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 82 HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W. 1 HCO POLICY LETTER OF 14 MAY 1959 Distrib. "Central" HCO Offices only HOW TO ESTABLISH PRICE OF BOOKS AND TAPES BOOKS Establish fully the printing cost. Multiply by five. This is cost of the book to usual buyers. However, a book price can be further increased so that when one gets a 20% reduction he pays a whole figure. Example: Printing cost X = 20 shillings. This is minimum safe retail price. This can be fixed further so members buy it for 20 shillings after their 20% discount, i.e. 24s X 20% = 20s. TAPE PRICING Add: 1. Cost of tape original. 2. Cost of recorder and equipment depreciation (2 yrs per recorder); includes cost of recorders in copying. 3. Cost of time of engineer (gross weekly). 4. Cost of tape for copy master. 5. Cost of tapes for copies. 6. Rental cost of recording room or rooms. 7. Performer cost. (Min. œ15.0.0./week) 8. Shipping cost of whole package by air + insurance. Add 100% of above. LRH:mp.pm.cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD BOOK PRICING FORMULA /Excerpt/ 16. The costing formula for pricing a book by the publishing agency (not the seller) is as follows: Printing cost x 5 + 2 x Surface post to furthest org. This is the standard publisher costing formula and allows for discounts up to 50% for large distributors, overhead and royalties. To sell for less than this is to cause loss and prevent distribution. This also allows enough money for the distributor and the publisher both to advertise. This is a minimum price formula. LRH:jw.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD [Exerpted from HCO Policy letter of 10 February 1965, Ad and Book Policies. A complete copy of this Policy Letter can be found in Volume 2, page 101.] 83 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 10 FEBRUARY 1961 HCOs Central Orgs Franchise PROFESSIONAL CHARGES No Franchise or Field Auditor may charge less for services than the Central Organization for that Continent. They may, however, charge more. LRH:js.rd Copyright (c) 1961 by L. Ron Hubbard ALL RIGHTS RESERVED HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 14 JUNE 1962 CenOCon Franchise Field Auditors BPI L. RON HUBBARD PROFESSIONAL CHARGES (Amends and amplifies HCO Pol Ltr of 10 February 1961, same title) No Franchise or Field Auditor should charge less for services than the Central Organization for that Continent. They may, however, charge more. The Organization cannot be fully responsible for the excellence of any auditing that is not regularly purchased through the Registrar and done in the HGC at a Central Organization. However, in the case of complaints against an auditor, if it is found that the auditor has conscientiously applied standard procedures to the best of his ability, and has not charged less than the recognized fee for the area, he may expect some support from the HCO, HASI and myself All auditing rates in an area are uniform. Field auditors are supposed to charge the same as the Organization. Good auditing today is excellent. It is worth far more than the fees charged in the HGC. Bad auditing is money wasted. No responsibility need be accepted and no legal help or advice need be given where, on investigation of a complaint, it is found that an auditor has given auditing for fees that are less than those charged by the Central Organization for the area. In the event of preclear complaints in such circumstances, severe disciplinary action may be taken against the auditor concerned. The Central Organization should take steps to ensure that all field and Franchise auditors in its area are kept informed of their current charges and terms, so that field auditors can align their charges and terms accordingly. Field auditors also should assume responsibility for keeping themselves informed of the current charges. LRH:jw.rd Copyright (c) 1962 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 84 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 23 SEPTEMBER 1964 Remimeo Interested Sthil Staff /Excerpt/ COST OF SERVICE You must realize, despite propaganda about our expensiveness, that our services break into two parts. (a) Cheap, broad services for everyone. (b) Personal services at a much higher (but cheaper than any other field) price. Don't get confused and try to make (a) expensive or (b) cheap. Whenever I get a plea from some staff to "cut our prices" I now realize they haven't got (a) and (b) separate and they're confused and try to identify all service with all service. Make our cheap services (PE, HAS, Co-audit, brief assists) very, very, very cheap. Give them away, in fact. This is broad, general Scientology. You have to spend money to give them away. The book auditor, the Extension Course, the dollar book, the magazine, these are all part of these cheap services. Most orgs err in never really spending money on cheap services. They get all tied up with income needs and sell only expensive services and never get a whirlwind of interest going. Cheap service costs the org money. You have to hire staff just to administer it. You have to have people to care for it. You answer letters from book auditors (but the Letter Reg doesn't) and PE people and greet out-of-Towners with a hostess. You don't turn such traffic off because it doesn't buy. You form a place for it to come to like a public lounge. You give it tape plays. You whip it up to a roar. And you don't let it into your production departments or lines because it bothers these and upsets them. For instance, you never give away an Academy Course. You always charge heavily for it. But you give public tape plays that train the "multitude". ALL PERSONAL SERVICES RENDERED TO THE INDIVIDUAL RESULTING IN A GOOD PROCESS RESULT OR A WORTHWHILE CERTIFICATE MUST BE CHARGED FOR HEAVILY. L. RON HUBBARD LRH:jw.rd Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED [Excerpted from HCO Policy Letter of 23 September 1964, Policies: Dissemination and Programmes. A complete copy of this Policy Letter can be found in Volume 2, page 41.] 85 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 9 MAY 1965 Remimeo Registrar Tech Sec HAT Qual Sec HAT Org Sec HAT Dir Accts HAT Cashier's HAT HAT TECHNICAL & QUALIFICATIONS DIVISIONS DIVISION 4 - 5 URGENT AUDITING FEES PREFERENTIAL TREATMENT OF PRECLEARS SCALE OF PREFERENCE There is a definite and positive Scale of Preference for accepting and scheduling preclears (including students sent to Review) for auditing in the HGC and in the Case Cracking Section of the Department of Review. Last on the list is any person who seeks auditing as a favour "to demonstrate to others what it can do" or "because of importance as a person". The auditing of someone just because the result would "prove" something or other or because the person has money or power and might donate, by firm policy since 1950, has been relegated to the "circular file" (the waste basket). Giving auditing away to such persons or their friends or children or psychotic brother in the asylum is in fact forbidden. Giving preference in scheduling to such persons is governed, when for pay, entirely by the Scale of Preference. Such bids are a snare and a delusion; it sounds good; it doesn't work out Mr. Big takes his place in line with Mr. Little, and the Scale of Preference alone applies. The person who has to be audited AT ONCE for desperate reasons is also governed only by the Scale of Preference. The person who will only be audited by a certain or special auditor is also governed entirely by the Scale of Preference (See A). SCALE OF PREFERENCE Assignment of Auditor and Preferential Scheduling is governed as follows: A. Best Available Auditors, earliest possible commencement; E. G. Pcs Paying full rate Cash in Advance with the longest consecutive auditing period purchased, Where two pcs have to be chosen between for the best auditor, the one who has purchased the most auditing in consecutive periods is given the best auditor at the earliest moment. (It is obvious that to get a special auditor one should pay full public rate in cash even when entitled to Professional Rate. Otherwise there may be no pc requested auditor assignments. Buying additional auditing or offering a specified donation in addition to the full rate as per A can also influence the assignment of a requested auditor. The auditor does not have to accept.) B. Skilled auditor (but not specially requested auditor), early commencement; Full rate pass whose credit has proven excellent and prompt by past experience. C. Good auditor, early commencement; Pcs paying cash in advance professional rate. D. Auditor staff available scheduling; Full public rate pcs with 50% deposit and unknown or not established credit. Interne Auditor and any scheduling convenient to org; Full public rate pcs requiring up to 75% credit, credit unknown. Any Interne Auditor, and any scheduling convenient to org; Professional rate requiring credit. Any student, any scheduling convenient to org; Total credit at any rate, credit unknown. H. Students who need practice, cases not supervised except for student check sheet in Examinations, scheduled randomly or by waiting list, charity or pcs on full credit of a pcs unknown nature. 86 In scheduling there is also the problem of matching Interne Auditors in pairs so they can crack their own cases. This is normally done by Case Parity. Cases more or less the same in state of case should be matched up. Auditors who goof seriously in handling specially assigned processes in HGCs or Case Cracking Sections and are removed from active auditing because of it as dangerous, are normally paired with the last one who goofed and they are assigned as a co-audit team and they are permitted to slug it out, getting a better reality on goofs and their cases in shape as well. This is not disciplinary assignment. It is prevention of case damage to others, both by giving them a reality and by advancing their cases Their folders are carefully watched by auditing supervisors for false entries on auditing reports. The whole theory of the above is not Cash. It will be found that those who will pay were the most able to begin with and have the greatest value to others. Their worth as persons is greater. Thus good, swift auditing brings up even this value. I have never thanked myself for giving any concessions on fees or scheduling not based on the above. I can say with complete case histories that giving free service to those who demanded it or sought it has never resulted in any useful gain for Scientology. On the contrary some of our biggest headaches administrationally come from those who continually sought free courses and free auditing. In the case of award auditing or training it is a different matter. Here it was worked for and deserved before the fact. The Registrar is never faced with such persons as awards are given staff and staff has staff staff auditors. The "the world owes me a living" preclear (or student) is a candidate for the Better Dead Club. There were two branches of this Club, by the way-Better Dead for their own sakes and Better Dead for the sake of others. Demands by individuals for free service on any pretext should be given a light, airy laugh. It doesn't do anybody any good, often not even the person who received it. Real charity cases who never pay are actually hard to find. In Charity Auditing one must always give them a chance to pay. A Registrar's matter of fact attitude about paying for auditing or training is a valuable asset. Giving the person a problem about how and what they'll pay is poor Registraring. Don't make them choose about paying in full or not paying in full. Just tell them "Go to the Accounts Cashier". An evil laugh when they advance the idea of some tiny down payment on auditing and a remark, "Well, that would put you on the waiting list and give you a new student," might be very effective. Printing up the above preference scale for presentation to falterers on payment might be effective. Accounts must always give Scheduling Personnel a copy of the invoice. Accounts must mark the invoice clearly as per the above preference scale. Scheduling may only be done by scheduling personnel and must be done in accordance with the above Scale of Preference, and the prospective preclear already in the office (not on promotion lines) should be informed that the above scale exists. L. RON HUBBARD LRH:mh.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED 87 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 12 OCTOBER 1967 Remimeo CHARGES As WE NEVER VALIDATE A DOWN STAT (it is entirely fatal to all to do so) we ALWAYS CHARGE FOR RAISING STATS ON ANY DYNAMIC. And we always adjust charges in proportion to the degree the stat was down. The further down, the more we charge. L. RON HUBBARD Founder LRH:jp.rd Copyright (c) 1967 by L. Ron Hubbard ALL RIGHTS RESERVED 88 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 27 SEPTEMBER 1970 Issue I Remimeo Cashiers Div Ills Pub Div Hats Div II Hats FSMs F/Os Organization Series No. 6 CUTATIVE PRICES HCO PL of 27 Apt AD 15 "Organizational Price Engram" is fully valid and must be followed. It explains why price cuts damage orgs. Price cuts are forbidden under any guise. 1. PROCESSING MAY NEVER BE GIVEN AWAY BY AN ORG. Processing is too expensive to deliver. 2. BOOKS MAY NEVER BE GIVEN AWAY BY AN ORG OR BY PUBS ORG. They are too expensive to manufacture. 3. FSM COMMISSIONS MAY NEVER BE PAID ON DISCOUNTED OR CUT RATE ITEMS. If an FSM can't sell for full value he does not rate any commission. 4. SCHOLARSHIPS FOR COURSES ARE LIMITED TO INTERNESHIPS, HSDC AND ACADEMY LEVELS. 5. COURSE SCHOLARSHIPS ONLY MAY BE OFFERED FSM ON CONTEST AWARDS. 6. SCHOLARSHIPS ARE ONLY AVAILABLE TO WORKING FSMs OF PROVEN SELECTEE SUCCESSES. 7. ALL SCHOLARSHIPS AND AWARDS OUTSTANDING TERMINATE IF NOT TAKEN BEFORE 1 JANUARY 1971. 8. FSM COMMISSIONS ARE PAID ONLY ON THE ARRIVAL OF A STUDENT OR PC, NOT ON RECEIPT OF THE FEE. Adv payments are sometimes refunded. 9. ONLY FULLY CONTRACTED STAFF IS AWARDED FREE SERVICE, AND THIS IS DONE BY INVOICE AND LEGAL NOTE WHICH BECOMES DUE AND PAYABLE IF THE CONTRACT IS BROKEN. 10. FSM BONUS AWARDS TO ORGS MAY ONLY BE DELIVERED TO CONTRACTED STAFF MEMBERS OF THAT ORG. L. RON HUBBARD Founder LRH:sb.rd Copyright (c) 1970 by L. Ron Hubbard ALL RIGHTS RESERVED 89 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 31 JANUARY 1971 Remimeo Cashiers Div 3s Public Divs Hats FSMs Franchises FSM CONTEST AWARDS (Modifies HCO PL 27 Sept 1970, CUTATIVE PRICES) FSM Awards outstanding as of 27 September 1970 were to be taken by 1 Jan 1971 or forfeited by the above policy letter. Many were not able to arrange to take their awards within the stipulated time. In response to public requests the deadline for claim and use of such awards is abolished. LRH:VP:nt.rd Copyright (c) 1971 by L. Ron Hubbard ALL RIGHTS RESERVED Lt. V. Polimeni CS-3 for L. RON HUBBARD Founder 90 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 27 APRIL AD15 Issue II Remimeo ORGANIZATIONAL PRICE ENGRAM It's an awful good thing I found the engram in organizations before we released the new pattern of orgs and began to expand prices. Had I not found it we would have expanded to insolvency! A few suppressive persons with their "everybody" and "they" have here and there over the years set up a price ridge between orgs and public. "You charge too much!" "Money" "Prices too high!" combined with "everybody thinks" and other generalities have made executives believe that the public won't pay. Not detecting the true reason for this attack, the executive swallowed it whole. The true reason is a suppressive reason-if we don't charge we will vanish. A guilt complex (I won't use a Scientology term on anything so low) arose about money. Accommodatingly around the world org Scientologists tended to cease to exist financially. All to please Jo-Jo the famous loop of Capetown or Too-Too the famous paranoid of Sydney or Gut-growl the renowned psychotic of Washington or Oh-no the wildly celebrated pervert of Los Angeles or Sinangulp the loudest mouth in Johannesburg. These ARC Break specialists howled so loud their minority was overlooked. They wanted us gone. We helped people. A dastardly act. To prove it, Sinangulp tried to give away Johannesburg's buildings! And stole HASI's equipment and tapes and recorders Staffs resenting these attacks, resisted. But gradually succumbed. Covertly prices were lowered. Very covertly. While still reporting and advertising high prices some orgs were charging very small. It's a case of how crazy can one get. It's one thing to advertise the discounted price. It's quite another to only advertise the high price while secretly selling at a ridiculously low price. The tendency then against which we must guard is covert lowering of prices once set. The prices given me last year for use in computing a discount programme were in some orgs higher than the actual price taken by the org. Therefore, when we went on the early 1965 programme, the lie about former prices made it appear to the public in some areas that we had raised prices from 400% to 1000%! Hence, no business and the Jan-Feb slump. It's good this happened while we were still small in orgs. For had we expanded without discovering this the tendency of secretly lowering prices would have wrecked us. The bigger we got the broker we would have been and the poorer the staff. I now know why staffs got higher than average units on proportionate pay when I managed an org personally. I just didn't cut-rate things. And the public paid happily. The lesson we have learned and which we must never lose sight of is that secret price cuts by separate orgs and discounts can undermine all financial planning and lay in an engram that can destroy all expansion. 91 Hardly one price actually collected in the world was the authorized price or the advertised price. And when the false data was used for planning the public was confronted with a HUGE increase even in the discounted price, which was based on reports that made the discounted price equal to the advertised 1964 price. But that reported 1964 price was not the price received for service. I personally am of the opinion that even top executives in orgs did not know what their staffs were charging by the org. What it amounts to is that a big false report by orgs lay behind the 1965 Jan-Feb slump. They did not report their actual low prices, only their advertised prices. Therefore we can draw up some policies on prices. 1. The advertised and reported price of anything sold by an org must be the actual price received by the org for that item. 2. There may be no hidden discounts, trick reductions, whims or favours given in pricing. 3. Merchandising by advertising that prices are going up soon is forbidden. 4. Anyone covertly reducing prices is guilty of suppressing an org which is a high crime. 5. Any price passed upon at Saint Hill by myself may not be changed for anything by anyone else in any org. And finally: 6. Efforts to reduce prices below a set scale will be considered suppressive acts. I can easily handle a situation when I have all the data. It was easy to re-shuffle programmes to get us again into an income range where orgs and staffs will prosper and which pleases the public. But it was a lot of worry until I got the real story. We have learned some valuable lessons by the Jan-Feb 1965 slump. And we were saved by the bell. We didn't have a public book pouring in people and we didn't set up the orgs to boom. Had these two things been done, without my establishing a programme which started the rabbits out of the brush and into view, we would have been wiped out by a boom. Now we can plan with a better reality and set up the org and release some popular books and boom. The only other datum on this also teaches us a lesson. Earlier in 1964 a query to all orgs about their prices elicited a good response. I several times asked for those despatches to be collected in a folder and given to me and it was not done. In the press of things, I didn't notice I was getting a non-compliance here and so never saw them until last week. However those price reports too were not correct. And I did have other data given me later in the year of 1964 on prices and National Councils did inspect the raises without comment. There's no mystery left about this - the price data given by most orgs for planning were not the prices actually paid by the public - and orgs sold things for far less in most cases than what they said they did. And the '64 discount complexity was greater than the '65. The engram was that prices were covertly reduced and the new prices of 1965 were thus many times the old. Don't listen to suppressives. Turn them in to HCO. And hold the prices set. And tell me the truth. L. RON HUBBARD LRH:ml.eh.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED 92 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 18 APRIL 1965 Remimeo Sthil Execs Franchise insert separately in Auditor 8 as a printed Pol Ltr BPI May be mailed to Scn Mailing Lists ALL SCIENTOLOGY PRICES LOWERED BECAUSE OF NEW ORGANIZATION STREAMLINE COST OF TRAINING, PROCESSING AND BOOKS LOWERED BY NEW DISCOVERIES Cancels HCO Policy Letters: 19 Oct 1964 Pricing Formulas 30 Oct AD14 Mailing List for Franchise Holders 31 Oct 1964 Issue II: Current Policies, Orgs & Franchise 3 Dec 1964 Pricing Meetings Final Policy 23 Dec 1964 Field and Public Programming 15 Mar 1965 Issue II: Only Accts Talks Money 22 Mar 1965 Saint Hill Services, Prices and Discounts Scientologists may now have a Membership Free. And all prices and sign up procedures revert to 1964 levels and conditions. We are retaining all that was good of the programme such as obtaining funds and heavily advertising books. We are only cutting out discount puzzles and raised prices. I have answered your request that we do so by streamlining orgs and I have returned you to the 1964 arrangements that you did like and wanted. We can do this because of costing lowered by our new organizational pattern. All International Memberships recently purchased will be extended 6 months free. The Professional Auditors' Bulletins (the PABs) will no longer be shortened and will be restored to their old format and are to be sent to all International Members regularly. They will contain the tremendous backlog of invaluable data of HCO Bulletins of 1964. HCOBs printed in it will come on up to present time and will continue to be issued as PABs as before. The higher prices and discount plan of early 1965 are rendered unnecessary because of technical and organizational advances. LOWER LEVELS The technical advances which came from the level above clear when I contacted It, opened not only the top, but the bottom of the levels and I found many new "sub-zero" levels and developed many of the processes that go with them. This lets us undercut the toughest cases we've ever seen in the fastest possible TIME. DISSEMINATION FORMULA Also, I have discovered and developed the long awaited dissemination formula which makes it a walk In the park to easily present Scientology to even the roughest objector, much less decent people. Its drills just need to be written up in Bulletin form and they will be part of the PABs in due course. You will get the PABs with your International Membership. FIELD STAFF MEMBER With the Field Staff Member programme and lots of book auditors we don't want a complicated price programme to stand in anyone's way now. FIELD AUDITOR PRICES All Field Auditors and Centres are now being required to return to the 1964 price level of their Continental Organization and may not charge more or less than those prices. 93 Such auditing is not supervised from Saint Hill. Only HGC and Academy auditing and training is supervised by me. To charge a fee an auditor must be Classified up to the level being run for fee. ORG PATTERN The new org pattern makes for a somewhat less costly org per person trained or processed so the prices can be dropped back. Also volume will be rising. NEW BOOKS I am holding up new books here until orgs are better able to care for very heavy traffic flows. The new books will increase the volume again. Before we start pouring new public in we want to clean up all our old clearing contracts and our existing field auditors and Scientologists. This should take about a year. After all, they have first call on org services and we'd better not start such a heavy flood of business that the old timer will be crowded out before his case and training are up. PLANNING I've been working to remove any obstacles in the way of the training or processing of any old time Scientologist. If we can get all our present people well up while we still have breathing space, their help will be invaluable as we spread out. Therefore, consider the 1965 discount programme run out and erased. We don't need it and you found it hard to understand. Things are as they were in 1964 - same prices, same services, same courses - same people, but the orgs with a new streamlined pattern based on technology taken from the high levels above clear. I'm glad to be able to give you this break. And I'm going to need every last Scientologist in the world as highly trained and processed as possible. And so I have swept aside all the blocks 1 could. We must we can get the show on the road in time. So let's get the show on the road! LRH:ml.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 94 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 19 OCTOBER 1964 General Non- Remimeo Assn/Org Sec HCO Sec Adcomm Deputy Assn/Org Sec PRICING FORMULAS Reference: HCO Exec Ltr of July 3, 1964, (Requested Data on Prices). (This Policy Letter modifies HCO Pol Ltr of Sept 23, 1964, in giving three months' average income, instead of one month's as the average price for training and processing. Otherwise, HCO Pol Ltr of Sept 23, 1964, is generally valid.) PRICES AND DISCOUNTS ARE EFFECTIVE JANUARY 1, 1965, (but must be prepared for and announced as contained herein.) First, thank you for your response to my request for pricing data. I now have formulas and data to give to you as policy now issued. THE NEEDS OF A NEW PRICING FORMULA The needs for new pricing formulas are required by: 1. Inflating currencies in all countries. 2. Low units in many orgs. 3. No flexibility. PRICING FORMULAS The pricing formulas are: 1. The price of a 25 hour intensive or any one course above the level of HAS shall be computed as costing the same as three months' pay for the average middle class working individual. Each Continental District shall make its own computation of what this sum is. From this total price a Lifetime Member shall have a discount of 20%. An International (yearly) member may have a discount of 30%. For the purpose of Courses and intensives only these two discounts may be additive. Courses above the level of HPA may be increased in price at the discretion of the Continental Director or Executive Director. Processing bought in amounts more than one 25 hour intensive may be decreased proportionally at the discretion of the Continental Director or the Executive Director. ASSISTS 2. Assists are to be charged at the hourly division of the above, but no assist shall be more than five hours and must be delivered in one session. Discounts are allowed. Two or more assists may not be sold the same preclear in any one month. PE FREE COURSES 3. HAS Courses are to be divided into a free period of one or two weeks, but only for five or six evenings on Course. HAS COURSES 4. The HAS Course is to continue for an additional series of evenings paid for by the evening or in advance and shall be no less than 30 and no more than 60 additional evenings on course. The amount to be charged is based on three weeks pay of the average, middle class pay rate and, if paid in advance, is subject to a refund in cash or future credit of 25% of the total fee, providing the course is fully completed 95 and the refund payable only at the end of the course. Lifetime 20% and International 30% discounts apply. PROFESSIONAL RATES 5. Professional rates are abolished as they are cared for by membership discounts. STAFF MEMBER AUDITING 6. Staff members, full or consistent-part-time under contract, may be audited 12 1/2 hours or 25 hours in any week in the HGC by giving up half of their units for a 12 1/2 hour intensive and all their units for 25 hours which then serve as a general rise in all the others' units; but staff members may not have more than one 12 1/2 or 25 hour intensive in a month. They may have 12 1/2 hour intensives over week-ends by directly paying the staff auditor auditing them the average units for the week before last calculated for 2 1/2 days only, if this is overtime for the staff auditor, or by paying the org the same amount, if the staff auditor is a regular, week-end, part-time auditor. No staff member may be audited if paying pcs consume the available auditing time. Two staff members must be audited in the same week by the same auditor if only 12 1/2 hours is taken. BOOK DISCOUNTS 7. Book discounts will be: (a) Central Orgs which act as the Continental Book Dept for the continent and Saint Hill from Washington or Washington from Saint Hill get a 50% discount on the retail sales price, plus postage and any shipping charges. (b) City Offices which are not the Continental Book Dept, and Franchise Holders get 33 1/3% discount with no other discount, whether ordering from Saint Hill, Washington, or a Central Org or a City Office, plus postage and any shipping charge. (c) An International Member gets a 10% discount, plus postage and any shipping charges on tapes, books and meters. (d) A Lifetime Member gets a 10% discount on tapes, books and meters, plus postage and any shipping or handling charges, whether buying from Saint Hill, Washington, Central Orgs, or City Offices, but not binding on Franchise Holders. BOOK PRICES ARE NOT UNIFORM CONTINENT TO CONTINENT, BUT ARE FIXED WITH PERMISSION FROM SAINT HILL. (e) Lifetime and international Membership discounts are additive in all cases except where the Lifetime Member has been promised before Nov 15, 1964, a 20% discount on books, tapes or meters, in which case the discount will be honoured in all orgs, but the additional international Membership discount does not apply then on tape, book and meter purchases. The maximum membership discount is therefore 20% in all orgs including Saint Hill on tapes, books and meters. (f) Any org may buy tapes from Saint Hill at 50% discount. (g) Other discounts on tapes, books and meters to be arranged from time to time. (h) Central Organizations and City Offices may arrange for discounts with the Director of Publications at Saint Hill on quantity purchases of meters, tapes, insignia, etc. Any such discount is a temporary arrangement. Evidence that an organization or office is selling books, meters, tapes or insignia at cut rates (below list price for that area less proper member discounts) will cause cancellation of all further meter, or insignia discounts (except membership discounts) to that area. 96 INTERNATIONAL MEMBERSHIP FOR STAFF MEMBERS 8. Staff members full or part time, continuously employed and under contract are given their international Membership yearly without charge. Their Lifetime Membership must be purchased by themselves. On departure from staff a staff member's international Membership is cancelled as of that date, but may be renewed on proper payment. THE NATIONAL MAGAZINE 9. International Members receive every other month a Major issue of the National Magazine. Everyone in the address files receives the Minor issue in the alternate months, THE AUDITOR 10. The Auditor goes to all Founding Members, International Members, Lifetime Members and Professional Auditors, but the mailing of this magazine is not to be promised and comprises no part of the pricing programming, Saint Hill making no promise to continue to issue it to any certain person or anyone. THE PROFESSIONAL AUDITOR'S BULLETIN 11. The Professional Auditors Bulletin goes to all International Members and Professional Auditors either direct from Saint Hill or as an enclosure in a Major national issue. RESEARCH TEN PERCENTS OF GROSS INCOME 12. (c) Central Orgs, City Offices and Franchise Holders contribute 10% of their gross weekly income to various expenses and usages at Saint Hill or to L. Ron Hubbard as Director of Research. But this 10% shall not include payments received for books by anyone. BOOK TEN PERCENTS 13. Washington and Saint Hill pay 10% of their gross book sales to the Research Fund Account of Scientology Library and Research Ltd., but only on books actually published and printing paid for by each area. If Washington publishes a book it pays 10% of the gross retail sales price as sold. If Saint Hill publishes a book it pays 10% of the gross retail sales price as sold. If Washington, for example pays Saint Hill for a shipment of books and sells them from Washington, then Washington does not pay any 10% and vice versa. Although it is not policy at this time for other offices to reprint books, if one ever does get permission, it will also pay 10% to the Research Fund of Scientology Library and Research Ltd on each. INTERNATIONAL AND LIFETIME MEMBERSHIP PRICES or $30. 14. International Membership shall be uniform at this time for the world at œ10 Lifetime Memberships shall be uniform at this time for the world at œ25 or $75. Neither Membership may be bought at a discount. Memberships are not refundable. RECEIPT AND USE OF INTERNATIONAL AND LIFETIME MEMBERSHIP MONIES 15. Both International and Lifetime Memberships shall be paid in to the HCO in the Area Office and deposited only and at once in the HCO Book Account, and shall serve, amongst other things, to defray magazine printing, handling and postage costs of the National magazine. All Memberships must be paid for in cash, made out directly to HCO Book Account. Memberships shall be deposited only in the Main Book Account of the Area Office. The Continental Office may call on sums proportionate to the number of magazines (their cost of printing, handling and postage) mailed in the area of the HCO Area Office, but book ads saying books are available at the Area Office and the ads of the Area Office must be carried in the magazine. All sums additional to magazine cost in both the Area and Continental Office shall be used only to purchase 97 more books, and tapes and to defray expenses of high quality facilities for tape playing and the expenses of Congresses. All Membership monies received by an Area Office, not called upon to defray magazine printing and postage may be retained in the Area Book Account. CONGRESS FEES 16. All Congress fees shall be received into the Area Book Account of the area where held. No Congress fees, membership fees, or book monies received may be used for the payment of units, rent (except for Congress Halls) or organization expenses. USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES 17. Congress, membership and book fees may be used for advertising Scientology books in magazines, but not for newspaper or magazine advertising of PEs, auditing or services. FURTHER USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES 18. Any further use or disposition of Congress fees, membership fees or book receipts shall be at the sole permission, personally signed, of the Executive Director. HCO BOOK ACCOUNT SIGNATORIES 19. The HCO Continental Sec and HCO Area Sec or where the HCO Continental Sec is also an Area Sec. by the HCO Continental Sec and the HCO Communicator jointly, or the single signatures of LRH and MSH are requisite on any Book Account cheque for it to be valid and all bank mandates for that account must so state and must include the signatures of LRH and MSH. OTHER PRICES 20. All other prices of all other commodities or services shall be set by the Continental Director in agreement with the HCO Continental Sec for all offices in their continental area. COMMITTEE DETERMINATION OF AVERAGE MIDDLE CLASS PAY 21. The determination of what constitutes 3 months' pay for an average middle-class individual for a continent shall be determined by a Committee of which the Continental Director shall be chairman and each Association or Organization Secretary of that zone a committee member. All government data and averages shall be consulted as available from departments or ministries involved in commerce and labour and from other sources and it is the responsibility of the Chairman that this data is obtained. MEETING TIMES OF THIS COMMITTEE 22. This Committee is to meet in the fourth week of November in this year and on the first week of September in succeeding years to determine the price scale that will become effective on the first of January of the coming year and these prices shall be announced in the National Magazine at once as they will generally be found to be rising in the coming year, causing a rush of business in December. CONGRESS DATES 23. Congress dates should be set for the period July 1 of the coming year to June 30 of the next year after and announced in the same issue of the National Magazine. AUTHORIZATION OF PRICES 24. Final authority for prices must be obtained by cable from the Executive Director before publication with brief supporting data. 98 Note: it is called to your attention that if an international Membership and a Lifetime Membership is held by an applicant for training above the level of HAS and below the level of HPA or for processing, then there must be one pc or student per month per staff member to give each staff member 1 1/2 times the average pay of a comparable post to his own in an outside business firm. A staff of 20 would have to sign up 5 students or pcs per week on courses above the level of HAS or 25 hour intensives to do that and it was common (at comparable prices to those arranged for in these formula policies) in Washington or London in 1956 to sign up more than that with a staff of less than 20. (But book ads were being regularly placed - an action amply provided for in this plan.) HCO AREA SEC BONUS 25. The HCO Area Sec is granted a bonus of 2 percent of the gross receipts of the local Book Account. ASSN SEC/ORG SEC BONUS 26. The Association/Organization Secretary is granted 2 percent of the gross receipts of the HCO Book Account but may not be a signatory to that account. HCO CONTINENTAL SEC BONUS 27. The HCO Continental Secretary is paid 1/2 of one percent of each Book Account in the Area, whether or not acting as an HCO Area Sec as well. CONTINENTAL DIRECTOR BONUS 28. The Continental Director is paid 1/2 of one percent of the gross receipts of each Book Account in his continent, when acting as an Assn/Org Sec or when not. MONTHLY PAYMENT OF BONUS month. 29. All such bonuses are payable monthly only, computed on the first of the NO ADVANCES OR LOANS FROM HCO BOOK ACCOUNT 30. No Demon may be paid such a bonus in advance nor may any loan be made to any person from any HCO Book Account. HCO BOOK ACCOUNT BONUS SUSPENSION 31. When a Book Account tends to become insolvent by reason of owing more than it receives, bonuses are suspended until the condition alters but in no event less than 60 days. REGULATIONS CONCERNING HCO BOOK ACCOUNT 32. Book, Congress, Tape and Membership income may not be used or loaned for any salary sum, expense sum, building fund or past bills of the organization as a whole, but past book and tape bills are an exception. STAFF MEMBER LOANS 33. All loans to staff members from any organization or outside source must have the permission of the Treasurer at Saint Hill before being granted or received. Exception is actual personal leases and/or Hire Purchase or Time Payment purchases by the staff member for his or her own use, and no monies may be borrowed by full or part time staff members from past or present organizational students or pcs. STAFF REGULATIONS 34. Any staff member accepting for training or processing any student or pc for his personal profit or for favours during his time of employment on staff or any HASI 99 student or pc for two years following will be subject to a Committee of Evidence and possible revocation of certificates. REPORTING OF UNUSUAL FAVOURS 35. Any unusual favours received by a staff member from organizational students or pcs must be reported to HCO Exec Sec World Wide via the HCO Area Sec and Continental Sec. This includes uses of cars, apartments or receiving expenses as well as other favours. FRANCHISE AND FIELD ACTIVITIES 36. Franchise and Field Auditors are influenced in prices in that they must not charge less than but may charge more than the auditing and training prices above the level of HAS for their continent, but they may credit the facts of International and Lifetime Memberships discounts, even though they should not sell them. INTENSIVES OF MORE THAN 25 HOURS 37. Additional sliding scale discounts may be given when pcs or students buy more than one intensive or course at the same time but the reductions for quantity purchases must be passed upon by the Continental Director. TAPES 38. No tapes may be manufactured, copied or copied for resale by any Central Organization or City Office. Only Saint Hill may copy tapes. Evidence of any tapes being copied or copied for resale in a Central Organization or City Office will suspend their tape discount for one year. Please note that the only discount Policy Letter marked BPI is Pol Ltr of October 31, 1964. This is a repeat of others and additional data of special interest to and clarification for the Franchise Holder and the public. The one you release is October 31, 1964. DO NOT RELEASE ANY OTHERS OF THIS PRICING SERIES OF OCTOBER - NOVEMBER 1964 TO FRANCHISE OR THE GENERAL PUBLIC. CREDIT PAYMENTS 39. Previous policy disallowing discounts on credit are cancelled. This does not mean that memberships may be had for credit. They cannot be. It does mean that all discounts apply whether the full or only a part of the payment for training, processing or other service or materials are purchased. However a reasonable deposit, covering the actual cost of the service or material must be procured in all cases where credit is extended. On future credits, after January 1, 1965, no penalty clauses should exist on new credit notes signed and these are hereby cancelled for new notes. Interest must not be lower than the highest permitted by law in the area or 10% in areas having no limit. Interest for the term of the note is added in full sum for the term of the contract to the note on signing it, the amount of the note then being owed sum plus interest for the entire term of the note. RELEASES REQUIRED 40. Releases of the older type are now required on all sign-ups, particularly credit sign- ups where an even tougher release form should be drawn up especially for those persons signing notes. Sign up policy remains otherwise unchanged. 100 Note: New programming, new processes, new PE format, the technology of how we lose pcs and students, the data in HCO Pol Ltr of September 23, 1964 and Exec Ltr of October 5, 1964, a recognition of the field and franchise auditor as a pc and student source that must be encouraged, a recognition of how units and staff members and business-done balance up, new books, new type Congresses, my general planning on your promotion lines and your increasing activity and alertness, combined with expected case gains, the new Book of Remedies, these things and others combine to guarantee an increasingly busy future with considerable rise in personal Income and general financial health. You realize, of course, that as you increase students you don't increase instructors to that degree and staff auditors pay for themselves as added, and that a great deal more income lies in salvaging all old cases and increasing the potential to earn in all new ones. All this requires a lot of snap, pop and hard work but it can be done and you can be paid better for doing it. In the business of fast plainly spiritual healing you will also increase your activity and income beyond expected average. Advertising actions are arranged for in the above. Nobody expects magazines to cost any more than they have previously. Magazine cost and postage is dropped from org expenses. Note also that under this plan the most neglected action in producing income in any area, BOOK ADVERTISEMENT, the No. 1 magic formula of dissemination, is pushed into being by restricting the expenditure of memberships and other HCO Book Account monies until, to get rid of the surplus, book advertisements nationally and locally on a large scale would have to be placed constantly. With quantities of book ads, income from students and pcs as well as books will flood in. It always has. This is the basic formula of the coming boom. Because they cost the org money it could spend and "needed" elsewhere, the number of national magazines printed was curtailed and book ads were dropped out and that has been the chief cause of any financial difficulty in any org. - As local offices and franchise centres become truly active, they will cease to drain off the old timers from the Central Org and stir up more local business of which the Central Org gets its part in courses and pcs. This all looks pretty favourable to me. I hope it does to you. LRH:jw.cden Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED [Important. See also HCO P/L 18 April 1965, page 93.] L RON HUBBARD [Note: in 34. STAFF REGULATIONS the phrase or any HASI student or pa has been added per HCO PL 26 November 1964. 7 (h), 38, 39 and 40 have been added per HCO PL 9 November 1964.] 101 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 30 OCTOBER AD14 Gen. Non-Remimeo Sthil Students Franchise Sthil CF MAILING LISTS FOR FRANCHISE HOLDERS (HCO Sec: Note that this is an important piece of current promotion and see that it, with Pol Ltr on Pricing Formulas, Exec Ltr on CF Overhaul, are thoroughly known and understood by the Assn/Org Sec. Dir Prom Reg. and CF and Address In Charge. We're arranging a boom. Don't let any parts of how we're doing it go awry, in your Org. If all steps are taken and continue in force, the boom will be on in your area.) For some years we have had a policy of no mailing lists should be sent or issued to the field. That policy is now relaxed only so far as the following: 1. Franchise Holders in good standing may be issued a certain type of list. 3. 5. 2. The list may only be issued by being addressed on address envelopes for a brochure as follows and may not be in tape roll or card form and no plates may be given to Franchise Holders. No list of persons actively in communication with the Central Org may be released and such persons may not be part of any list issued. 4. A Franchise Holder may receive lists only for the area in which he is actually operating. No list issued becomes anyone's exclusive property and lists may be duplicated where areas are the same or overlap. TWO TYPES OF ADDRESS FILES A Central Org or City Office with Address Equipment and Files normally carries and preserves all addresses ever collected. In practice, certain plates are retired to storage when the name has not been actively in communication with the Central Org for some time. This period has varied but was usually 3 years. In short, if someone was out of comm with a Central Org for 3 years, the address plate was retired to dead files. If this procedure has not been followed, then this action will have to be done: All invoices ever written by the Org will have to be exhumed from Accounts and a whole new Address Plate File made, from the start of the Org up to its present "active" plate files. If the plates have been kept, this is a simple matter. One simply regards "inactive address plates" as Franchise Files. The two types of address files are then as follows: File A: Active Address Files of the Central Organization. File F: Franchise File. All files are by districts as postal authorities usually require it for mail packaging. If they aren't then File F must be broken down into states or counties or some such geographical area. Population density, not square miles, is the best criteria, so you may have 3 districts for Greater New York and one for Arizona, New Mexico and Wyoming. BROCHURE FOR FRANCHISE A special brochure for the Franchise Holder must be made up and printed by the Central Org. This should consist of the 17 basic definitions and what a Franchise Auditor can do and what training he can give. A Franchised Auditor should be defined. An invitation to communicate should be given. A space for a Franchised Auditor to write, print or stamp his name or the name of his centre must be left on the brochure. The brochure is provided with proper mailing envelopes. 102 BROCHURE DRILL On payment for a certain number of brochure copies (500, 1,000) to cover printing, addressing and posting the carton to him, a Franchise Auditor in good standing may receive addressed brochures from Central Orgs (not Saint Hill). Address addresses the envelopes up to the number of addresses available for that district. Only File F (above) is used. Address does not stuff. The addressed envelopes in one bundle of the carton and the brochures in another part of the same carton are shipped off to the Franchise Auditor. Any part of the ordered brochure envelopes remaining when the number of plates for that area are exhausted, are sent blank for the Franchise Auditor to put his own addresses on. The Franchise Auditor receives the carton, addresses the envelopes left blank as he wishes, has a printer run off his name and address on all the brochures or stamps them or writes his name and address on them, and, paying the postage, mails them out to his area. People, finding service close to hand, will often break silence and correspond or call. Groups will form. Personal contact will revive. Now that we have why people dropped out (definitions not understood in older subjects or in Scientology, a fact which can be mentioned in the brochure), we can get them back. FACTS ABOUT THE FIELD It is hard for a Franchise Auditor to get in touch with people. People when they know he is there will wake up and go to him when they never would come into the org. A Central Org which does not cultivate auditors in the field does badly. A Central Org has been known to misguidedly suppress field "competition". A survey of pcs some time ago showed the majority originally had been sent in to the HGC by the field, a fact Central Orgs sometimes overlook. The Franchise Auditor, delivering service as a well trained professional is nobody for an Org to deter but encourage. Only bad experiences with squirrel, badly trained or untrained persons in the field lead Orgs to withhold from them. These experiences seldom if ever occur with Franchise Auditors. It would be dull to release the total active list to the field. It would be dull indeed to release File F to anybody and everybody, competent and incompetent alike. It would be equally dull not to forward the programme covered in this Policy Letter. NEW PROMOTION The above project should be undertaken quickly. The sooner it is undertaken, the higher the general activities of Scientology will increase. The line must be grooved in now while it can be. The brochure must be prepared and printed. Special help must organize the separation of Files A and F and in at least one case File F will have to be put on plates all over again. The reason this will have to be done quickly is because there won't be any spare motion later with which to do it. New promotion is so rigged that City Offices will be putting out vast amounts of advertising of books locally and Central Orgs nationally. These new book buyers have been missing in our planning for years for reasons of false economy. Now we are going to start them rolling in. New Promotion - and new books-will send orgs into a state of such activity that they might flub the drill of Franchise brochures if begun later. So start it now and you will have it grooved in when things really start. You will soon have more addresses than you know what to do with. 103 HANDLING NEW ADDRESSES IN CENTRAL ORGS AND OFFICES Starting right away, this is the drill for new book buyers. This drill also will be kept in and followed after advertising begins. 1. A person buys a book personally or by mail for the first time. 2. The invoice is made out with the name and address bright and clear on all copies. 3. One copy goes to shipping or books whether mailed or just handed out. 4. One copy goes to own Address. (This is true of all orgs including City Offices. Whatever is done with remaining invoice copies is according to standard accounts procedure.) 5. Address cuts a plate or stencil and puts a date on it and a designation like BB 3/3/65, meaning the person bought a book on 3/3/65. 6. This plate is put in File A and receives whatever goes out to File A for 3 or 4 months. 7. Any new invoice, indeed all invoices, go to Address. If a BB in File A buys more books or training or processing Address obliterates the BB 3/3/65 on the plate or stencil either by just flattening it on a metal plate or cutting a new stencil in case of less durable stencils. 8.At the end of each quarter (Mar. 31, June 30, Sept. 30, Dec. 31 all approximate) Address removes all BB plates older than 3 months. 9. These plates are now placed in File F with its geographical mates. 10. Franchise Holders are informed they should buy new brochure sets and these should be addressed from File F. using all plates in it, old or new. FRANCHISE OBLIGATION To procure a set of addressed brochures, a Franchise Holder must pay cash to the org and must specify how many addresses for what districts and how many envelopes are to be left blank. On receipt of the carton, the Franchise Holder is obliged to mail at least the addressed envelopes, containing the brochure furnished and any piece of his own additional literature, providing only that it mirrors no games condition with other auditors or the org, and contains no claims contrary to standard policy regarding healing, the insane, etc., as contained in HCO Pol Ltr of Oct. 27, 1964, or as amended from time to time. The Franchise Holder is obligated to turn in to Saint Hill at the end of each year a COMPLETE LIST of the names and addresses of persons who have bought things from him - books, auditing, processing, courses - so that these people can be sent a copy of an International Magazine. Failure to carry out these above named obligations would result in a cancellation of the privilege of receiving mailing lists, if not of Franchise. CITY OFFICES A City Office must forward copies of its new book buyer list to its Central Organization the moment it becomes File F. It must be plainly marked File F and include only File F names as above. The City Office may keep its book buyers who then buy more books, training or processing (its File A). However, to get its people sent a magazine it should routinely send ENVELOPES pre- addressed by the City Office to the Central Org. If a City Office finds this arduous, it may simply send all its invoices to the Central Org for the Central Org's complete address and File A, File F handling. A City Office may then (a) keep its own address unit going, or (b) count on the Central Org doing it all for them. Either one or the other must be selected and followed. Where a City Office fails to keep its address unit cracking, the Central Org must demand the address unit copy be sent to the Central Org when the invoice is written up 104 by the City Office just as though the Address Unit of the Central Org was part of the City Office. A City Office may not retain the Address Invoice Copy if it is not maintaining an Address Unit, even if it "plans to" but must send the copy to the Central Org, not save it. It can note down and record its active "customers" in a book and still send the invoice copy to the Central Org. The names and addresses of City Offices must be carried in each issue of every magazine mailed by Scientology Orgs. A City Office may also buy its area's brochure but in this case should add to the envelope a sheet of its own stating it is a City Office and defining Central Org, City Office, Franchise Holder and Field Auditor as to their relative status and seniority in Scientology. This should be done without ARC Breaking Central Orgs, Franchise Holders or Field Auditors, but should also emphasize the virtues of a City Office as the responsible representatives for Scientology in the area. DESIGN FOR THE BOOM You see the promotion pattern emerge now. First, get the org streamlined, with tech high. Second, the Pricing Policy Letter of Oct. 19, 1964. Now the using of names to the fullest extent. The HCO Pol Ltr of Oct. 19, 1964, is going to force city and national book advertising into existence. This is done by building an account up (HCO Book Account) that has only one real outlet-book advertising. I intend to get each org's HCO Book Account into a very swollen condition and get it spent on book advertising as the only possible value that saves it from the tax man. Into this channel, new effective books will be poured into the public's hands. The ensuing prosperity will come first to Central Orgs and City Offices and then to Franchise Holders. Out of this prosperity the HCO Book Account is going to fatten up alarmingly and have to be spent prodigiously on advertising books. Given only effective training and processing in accordance to current design and supported by our now existing technology, this cycle can continue over and over. The HCO Book Account in each Central Org and City Office will swell up by reason of processing and training discounts and book sales and can only be lowered greatly by new book ads. The book buyers will be channeled to Franchise Holders as above. These, to cope, and because org income is spectacular, will become City Offices and coming under the rule of the HCO Book Account and now able to sell membership and higher level courses, will pour new advertising out in their areas. And new Franchise Auditors will come into existence and in their turn Well, you get the pattern. There are those who dread a boom. They think if it can all be kept small enough it can be handled easily. But we don't happen to have easy handling of things as our main purpose, so I trust such won't be too spun about by the rush. The truth is, things are only hard to handle when you haven't got any volume. Right? So let it boom! I said I was kicking the door open. That pop you just heard was the top hinge. LRH:jw.rd Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD [Important. See also HCO P/L 18 April 1965, page 93.] 105 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 31 OCTOBER 1964 Issue II Gen Non-Remimeo Franchise BPI CURRENT POLICIES ORGS & FRANCHISE HQS Course Permission As of this date, no further permissions to teach HQS Courses will be granted to Franchise or Field Auditors. Existing permissions for Franchise Holders to teach HQS Courses will expire on January 1, 1966. The reason does not lie in poor teaching. The HAS Course has been expanded and is well designed and effective and is adequate and long enough to receive a good fee. From this date forward permission to teach HQS will be given only to Central Orgs AND CITY OFFICES. Franchise Soon To Be Required For HAS Franchise Holders. As of Jan 1, 1966 the teaching of HAS or PE Courses may be done only by As of that date the general permission to any field auditor to teach HAS or PE Courses will be ended. City Office And Central Org Courses Eventually City Offices will be teaching HAS, HQS and PICA. Central Orgs will be teaching HAS, HQS, HCA, HPA and HCS Courses. In 1968 Central Orgs will also be given permission to teach HAA and HSS. Franchise Becoming City Offices Successful Franchise Centres may become City Offices on application if their record and activity as a Franchise Holder is adequate. The requirements of a City Office are (a) corporate regularity by which is meant their incorporation must be passed upon and in accordance with policy, (b) adequate premises, (c) the presence of a full time HCO Area Sec. (d) training of someone in org administration at their central org. Membership Sales No Franchise Holder may sell memberships. International and Lifetime Memberships may be sold only by City Of rices and Central Orgs. All Membership money received by a Central Org or City Office must be paid into the HCO Book Account of that office and this money is used for dissemination. Salaries and general org bills may not be paid from the HCO Book Account. Franchise Holders receiving requests or monies for membership must forward the matter to the Central Organization, referring the requests and sending the money in its entirety. There is no commission. This does not restrict a Franchise Holder from advising memberships - and indeed he should do so as he will receive the benefit of it directly, membership monies being invested mainly in advertising of books and assisting his own sale of these as well as bringing other indirect benefits. 106 Membership Discounts Membership discounts on training and processing amount to 20% for a Lifetime Member and an additional 30% for an International Member. These discounts are additive, making a 50% discount in all for training and processing. Membership discounts on books, meters and tapes are never more than 20%. An International Membership gives 10% and a new Lifetime Membership gives 10%, making the total of 20%. Old Lifetime Memberships, bought prior to November 15, 1964 give a 20% discount on books, meters and tapes which will be honoured. But in this case an International Membership discount is not also added. Memberships Non- Refundable No membership monies are ever refundable even for a portion of a year since the purchaser of one usually receives many times its value in discounts within a few days or months. Membership Prices An International Membership is necessary to keep a certificate in force. A Lifetime Membership costs œ25 Sterling or 375. An International Membership costs œ10 Sterling per year or $30. Franchise Not Bound By Discounts Franchise Holders do not have to give discounts because their book buyers, pcs or HAS students have memberships. But they may do so if they wish to bona fide members. They do not however receive membership monies but if any is offered, as above, they should send it at once to the Central Org. A Franchise Holder may persuade the student or pc to send the membership fees to the Central Org and then grant the discount as this all helps only dissemination and a boom, after all. A Franchise Holder may not grant membership discounts to non-members. Franchise Processing Fees Franchise Holders must keep to the scale of processing fees announced by Central Orgs for each year. These are precisely calculated. However he can charge more than this amount if he wishes. Increase Of Fees A Central Org or City Office can also charge more for special auditors or considerations and for courses of higher levels above HPA. In fact any demand by a pc for a special or particular auditor or class of auditing should be cared for by an increase in fee for that particular person or level of service otherwise it could not be delivered. R6 auditing should be double or treble any usual fee, with discounts allowed on the higher fee. In November of this year (1964) and September of future years all Association or Organization Secretaries meet under the Continental Director to set the auditing and training fees for the coming year. Other prices (HAS, etc) are set by the Continental Director of the zone. Book Prices Book, tape and meter prices are not uniform, Continental Zone to Continental Zone. U.S. and U.K. prices are on a parity of one pound equals three dollars for easy computation and to make up for exchange delays and fees. Other Continental Zone book prices are computed on the cost of books generally in the area plus handling and shipping charges. These prices are published from time to time in "The Auditor". 107 Central Org and City Office discounts are included in HCO Pol Ltr of Oct 19, '64. Franchise Book Discounts Franchise book discount is 33 1/3 percent now whether the book is bought from Saint Hill, Washington, D.C., a City Office or a Central Org BUT this discount may not be given unless 25 or more books are bought at the same time. Otherwise only any Membership discounts to which he is entitled apply to the Franchise Holder. Book Handling Charges All shipping and handling charges are contained in the price of a single book sale from Saint Hill or Washington on the new price list effective Jan 1, 1965. This is absorbed by Saint Hill or Washington. Central Orgs, City Offices and Franchise Centres may still charge postage as is customary in mailing in the past. Also, on lots of more than one book ordered from Saint Hill or Washington, postage and handling are added to the price of the order. But if from a Central Org or City Office the payment is received with the order in cash, Saint Hill and Washington will waive postage and handling. They will ship at the airmail price or the surface price as requested and in accordance with the proper amount received. Central Org, City Office and Franchise Centres receive all their discounts on the book prices published in "The Auditor". They need to pay, for air shipment on quantities, only the air mail price quoted if cash accompanies order. By cash payment at the surface price they may add the actual air cost but will find it amounts to the same thing. Central Orgs and City Offices may have books on credit where their payments are not far behind already, but must pay the postage and handling fees in addition, as we cannot carry these on credit, being due and owing at once from us by the shipping companies and agents. No Credit Credit is not extended at Saint Hill or Washington to Franchise Holders or members on books, tapes or meters as it makes too much accounting. No SHSBC Discount No Membership discounts are given at Saint Hill on the Saint Hill Special Briefing Course as no membership money comes to Saint Hill. Membership Not Part Of 10% No 10% administrative percentage is to be sent to Saint Hill on memberships sold. It all goes into the HCO Book Account in the area where the membership is bought and is not part of the organization's weekly gross income. Membership monies go to dissemination. Saint Hill Discounts To Members Saint Hill, however, grants the standard membership discounts as above on all books, tapes, meters and insignia, etc. Franchise Discounts Limited Franchise Holders may not have membership discounts in addition to their 33 1/3% discount on lots of 25 or more books. There is no discount other than membership to Franchise Holders on tapes, meters, insignia, etc., but the membership discount is granted where their memberships are in force. L. RON HUBBARD LRH:jw.cden Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED [Important. See also HCO P/L 18 April 1965, page 93.] 108 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 3 DECEMBER 1964 Gen Non-Remimeo PRICING MEETINGS FINAL POLICY On the basis of cables and minutes from various continents and accepting various recommendations fully explained or implied the formulas and policy letters of recent weeks are confirmed. By adjusting the average weekly pay given in cables and minutes, I was able to honour most recommendations concerning what prices should be. By re-working basic promotion and using what had proven successful in the past I therefore amended pricing policy slightly as follows and with Mary Sue's help recalculated the sum known as the average weekly wage to mean "What sum did we have to charge to get staff the reported average weekly wage in an area?" None by the way mentioned staff or pay in recommendations at the various meetings. I just wanted to be sure that we didn't set a price that impoverished staffs. These reported sums were then computed and ratified on the following basis: We took the average weekly wage reported as the required average wage of a staff auditor. This was multiplied by two to allow for one administrative staff per staff auditor. This sum was then considered to be 45% of the required gross. Then, examining recommendations for some reduction, we recalculated the figures for the various areas. They are very close to figures recommended by the committees in those areas all things considered. (The US requested a sliding training fee and this was met by giving HAS official academy day course status as well as retaining it as an evening course.) UNITED STATES: Average income figure reported $100 per week. Figure recalculated to meet requests for lower prices, $83.33 giving a potential staff average pay of $100. Full price of HQS, HCA, HPA or a 25 hour intensive, $1,000 making 20% $800, 30% $700, 50% $500. This is a reduction for US prices. HAS as a Cheap Academy I month course provides sliding scale. Free PE cautioned to be well done if retained. LONDON: Average National Income reported œ15 per week. Meeting in London recommended œ12.10.0. Figure allowed for publication based on œ11.3.4 per week. This gives full price of HQS, HCA, HPA or a 25 hour intensive as œ134, 20% œ107.4. 0, 30% œ93.16.0, 50% œ67.0.0. This is a very small increase, but a larger one considering initial outlay of memberships. It is not sufficiently great to cause many balks as some of the membership fee may be paid at HAS level on students, and pcs can see advantage of discounts. MELBOURNE: Average weekly income reported for Australian middle class workers was astonishingly high, showing inflated condition of Australian pound and high local prices prevailing. It was œ25 Australian. The committee asked for changes in the number of weeks to be used but as no one else had, this was over-ruled and instead the weekly pay calculation figure was based on an average, lowered a similar amount to the weeks they wanted lessened (they wanted 2 months average pay for training and 21/2 months for processing). Accordingly the rough figure œ18 Australian was authorized as this gives about œ25 Australian as the potential average staff member pay. Full fee for an HQS, HCA, HPA or a 25 hour intensive œ216, 20% œ172.16.0, 30% œ151.4.0, 50% œ108 all pounds Australian. NEW ZEALAND: Running with different currency and economic conditions, New Zealand reported œ20 New Zealand as the average weekly income. Using this for staff member pay, the figure œ15 New Zealand was authorized. This gives a full fee for HQS, HCA, HPA or a 25 hour intensive as œ180.0.0, 20% œ144.0.0, 30% œ126.0.0, 50% œ90.0.0. SOUTH AFRICA: Meeting reheld as Continental Director just returned to Johannesburg from Saint Hill. Data not available yet so will not be reported in policy letters but only directly for local issue. These remaining policies in this policy letter are, however, binding on South Africa as these hold a majority opinion amongst committees. HAS COURSE The sliding scale of courses already working well in the US is retained not by lowering the HQS Course but by formalizing the HAS Course as an Academy course. 109 The price of this course is set by the Continental Director, who may wish to reset the price he first recommended in view of this change of status. The HAS Course will be one month long, is to teach only data and listen style, has as its training goal a Scientology vocabulary and knowledge of Scientology philosophy and as its auditing goal "feeling free to talk to anyone". This course also can be taught evenings as set by previous policy. This gives a gradient of payment for courses. It also guarantees no missed words. HAS is requisite for HQS. HAS is not classified. There is no final examination. Certificate is given at course end and may be denied only be repeated tardiness or non-attendance, neither made up by the student. You must realize in costing for the HQS Course that it is the old 1956 HCA/HPA Course, not a light course easily taught. Therefore to reduce its price would be to invite a reduction of quality. The earliest successful procurement was a cheap data course, well taught, followed by a tough auditing course. We have never reached the percentage of enrollment from that early data course to the tougher course since. PC "COURSE" In the Gradation Programme, we have pcs being taught. This continues but don't confuse this pc training with any HAS Course or any Academy course. All pc training is done by the pc's auditor and that auditor's text assignments. No course makes a "pc" The HAS Course is a data course teaching the basic fundamentals of Scientology as a vocabulary and a philosophy. It has no bearing at all on pc training. CLASSIFICATION A student is given his certificate when he completes any course's month's training, without final examination. However to enroll in the next course the student takes his Classification Examination. This is just a good, comprehensive examination of the exact course he has completed earlier. It is in theory, practical and auditing. It takes about 3 hours. If the student flunks his Classification Examination he is enrolled in the next course anyway. He is not however classified. This rule, then, is made: - NO AUDITOR MAY ACCEPT PAY OR FEES FOR ADMINISTERING PROCESSES FOR A LEVEL HIGHER THAN THAT FOR WHICH HE HAS BEEN CLASSIFIED. Example: J.B. is Class I (HQS). He takes PICA. On seeking to enter HPA he flunks his Classification Exam. He is permitted to take his HPA and at its end is again examined for Class 11. If he still flunks, he can only accept fees for Class I processing. In the upper grades he is only a Co-auditor. We have a Pro Class I with an HPA Certificate. He is a Grades II and III Co-auditor, only a pro in Class 1. VIOLATIONS OF THIS POLICY MUST GO BEFORE A COMMITTEE OF EVIDENCE. As the policy will be known to pcs (in the PC Log Book now under completion, and from the magazines) we can force status over to Classification. Thus we end most sloppy field auditing. And where we have Classified auditors auditing we will get proper results in pcs in the field. Where there are bad field results, we will be able to take action, for it will uniformly be violations of Classification. We are that good at training now. Co-auditing is knowingly done at risk. Pro field auditing that is bad is a direct betrayal of us. These policies keep auditors progressing at minimum public risk. CO-AUDIT COURSES You see how we have handled the "Co-audit Course" mentioned in earlier policy letters. A Co-auditor is just somebody who never does get classified. Flunks exams for Classification. Doesn't turn up for them. He goes on getting trained, course after course. But he isn't a Classified Auditor. He's a Co-auditor. He can't audit for fee. 110 This then is your answer to "But why take a course? I don't want to be a professional." You say, "But my dear fellow, who's trying to make you a professional? We just know you won't succeed in using Scientology unless you can audit." And when the AMA starts to scream "Your people aren't qualified!" we look stern and say "These fast courses are for the public. Our professionals really have to study. More than yours with your six hours of lecture to make an MD into a psycho-quack" So this also has good propaganda value. IMMEDIATE EXAMINATION It will be found occasionally that an auditor is anxious for his Classification in order to audit pcs at once on his return home at that level professionally for a fee. In such cases, our policy is that we favour the professionally inclined auditor in all training. We will grant an immediate after course Classification Exam if the auditor's class record warrants it. If this class record does not warrant it, or if this professionally inclined auditor fails his Classification Exam given at Course end (rather than the beginning of the next course on which exam failures this section does not apply to anyone) we will permit the professionally inclined auditor only one repeat of the course he or she has taken, repeating the exact same course, but only its one month before re-examining. We will only do this once for one course paid for. We will not require further fee but HCO may charge the equivalent of one week's average national pay for having to give two examinations, one of which failed. This favour is not accorded auditors not interested in fee auditing. If the professionally inclined auditor still fails the second exam, he is yet awarded an in Training Classification for the level just above the one he is already classed for (or in the case of an HQS, an In Training Class I). With this he may audit for a fee providing he informs his pcs of the facts of his classification. An in Training Classification expires without further notice one year from date of issue. At that time or before, he can enter the next higher course, take an examination for the level he had In Training Classification for and if passed may receive it permanently as a Classification. He may also repeat the actions allowed to the professionally inclined auditor in this section at the conclusion of his next course. This is a favour not a right he has. The favour is extended only by the Org/Assn Sec. All an org makes out of this is a better trained professional in the field. But at no time may an organization sell the same course twice to any person or refuse a certificate for the course taken except on grounds of continual tardiness or non-attendance not made up. HUSBAND-WIFE TEAMS ENTERING ACADEMIES Husband-Wife teams should not be forbidden. But in all cases where husband and wife are trained to co-audit each other they must mail their auditor's reports routinely to the D of P for which they will be charged a nominal but real fee for case supervision. Professional auditors or Co-auditors who use auditing in or out of an Academy to estrange husbands and wives are subject to a Committee of Evidence at their nearest HCO on complaint from either party, husband or wife, and a penalty up to suspension of certificate and 500 hours of HGC auditing at their own expense may be sentenced the offender if proven guilty. During training it is against policy to team husbands and wives together for practice drills or actual Academy Auditing even when they will be co-auditing after leaving class Where possible husbands and wives should, however, be persuaded to bring another couple to be trained rather than co-audit and it should be arranged that the wife audits the other wife and the husband the other husband after training. In this case it is all right to team them in any pairing under training for drills and actual class auditing. DISCOUNTS Discounts may be granted without full payment of fee for training or auditing. But a realistic arrangement of payment must be made and the first deposit must cover actual cost of the service. The interest charged on notes should be the maximum interest rate allowable for the zone or state or 12 percent where there is no limit. LEGAL ASPECTS OF SIGN UPS No persons may be admitted to an Academy or HGC who have not signed waivers (release forms) of the old type. 111 All such waivers must include a statement that the person is there on his or her own determinism and that the person has no record of being committed in an institution or has a criminal record for felony. Persons with such commitments or records should be referred to a field auditor near their home and refused training or processing at the organization. Persons suspected of purely medical illness should be referred to a doctor for competent treatment if such a doctor or treatment exists. Minors must have their parents or guardians sign the waiver and any note for time payments. Known trouble sources as per recent HCO Policy Letter, all of which remains in force, should be required to straighten up their lives before enrolling or signing up for processing or should be forthrightly refused. They may however be referred to a field auditor near their home. Anyone objecting to an E-Meter check should be refused entrance. Thus by keeping the legal aspects straight you will be able to help the many and not be messed up by a few. For a very few such people (21 to be exact) were the sole sources of grief in the 1950 boom. To have a boom, you have to keep your nose clean legally or you can be stopped by the enturbulence generated, both in the org and the public. Such enturbulence is all that shortens your lines or overworks staff. NEWS POLICIES Our news policies have not changed. Just kick reporters down stairs. Every time it has been relaxed we have not profited at all. PLEDGING CODES Applications for certificate must be made by every student for each course taken during the course. This should give how they want their name on the certificate, address, and the routing of the student out of the org, CF routing and all that. This application must also carry a pledge stating that the applicant subscribes to and promises to uphold the Auditor's Code, the Code of a Scientologist and it must state he is informed of and will follow the policies relating to gradation and classification. MEMBERSHIPS Members enrolling must be furnished their cards at once. However, this is also done by application form and on that form the person signing must pledge himself to abide by the rules, codes and policies of the organization and that he understands there is no refund of membership and that he does not belong to or work for any hostile organization or group or any group undisclosed to us that is dedicated to the harming of Mankind. Every Registrar must be or have near to hand in the organization - such as the receptionist - a person with notary powers, or where that is not available by reason of state restrictions, must accomplish the same purpose otherwise, so that the member swears to his membership statement, its pledge and denial, under oath, to the end that anyone falsely signing may be prosecuted for perjury or false swearing. In the case of mail-in memberships the same statement must be sworn to on the application by the person filling it out. This is done by the person going to a notary. PINS Wherever possible, make it easy for persons to obtain and wear Scientology pins, the S and double triangle. Such a pin as available should be given new members. Pins should be purchasable for a small sum along with books in the reception office. Policy as to who wears a Scientology pin is governed only by their being a member and subscribing to the membership application statement. However there is no penalty for non members wearing general pins that do not bear notation of class for grade or state of case. HIGHER CLASS AUDITING A DC applying for auditing higher than his grade should be smoothly put into the 112 Pcs who are not brought up through grades have many session-disabilities which if not handled in the lower grades, make the pc a very serious problem to the HGC or the auditing section of the Academy in the upper grades. Technically it is foolish to be persuaded to let a pc jump grades. Pcs who demand to are always the roughest pcs and simply have some necessity for status rather than a wish to improve. To handle this, it is always permissible to charge more than a going rate for special consideration and this can be made so high the pc accepts the proper grade at normal cost. The higher rates are never quoted in the hope they will be paid but in the certainty they won't be. Demands for special or certain auditors are similarly handled by increased fee. But in this case the fee can be quite real and is quoted to compensate for the trouble caused and it is expected it will be accepted. Example: "I only want a Saint Hill graduate." Correct response. "Very good. There is one here. The fee is exactly double normal fees but discounts still apply. You will of course be audited by him in your correct grade." Example: "I must be cleared at once and can only be audited by a Saint Hill graduate on Grade IV materials." Correct response to a Grade I pc. "Very well. The fee for that is five times the normal fee." Naturally he takes Grade I auditing. TAPE PLAYS Orgs can hold all the tape plays they want but only for a fee and not in lieu of taking courses. Special courses are now forbidden as the materials are fitted to their levels and the courses for each level should be routine. However, if a higher classed auditor wishes the right to listen to tapes, he or she should be charged an annual fee for the privilege of coming into an org and putting on the headphones. But the favour should not be available below Class IV. And it should not cost less than $30 a year. Tapes may not be removed from the org or microphone copied. Notes of tapes may not be published by individuals as it is an infringement of Copyright R6 COURSE Permission to teach an R6 course will not necessarily be given to an org in 1968. The permission depends on an org's Academy excellence and volume reviewed between now and 1968 and re-reviewed in 1968. Saint Hill training will not cease as permission has been granted by the government for extensive new buildings. An org should therefore build its future on Grades 0 to IV and stress clearing as the highest offered goal, with no public mention of OT or even Grade V. Keep it this lifetime and clear, all problems of training and processing now being cracked for easy training and processing up to Grade IV. Grades V and VI training and processing problems are all cracked but they aren't easy and nobody expects them to be easy, ever. So new publications will slant at Grades 0 to IV. PE COURSE Where you can't guarantee an excellent free PE it is better to use only the new HAS sign up for fee as the student's entrance gate. In that way they won't drift off in a fog. They stay because they've paid and we get a chance to straighten them out. With heavy book sales, you will have no trouble filling up an HAS Course for fee with no free introduction. Free PE is allowed only where it is very high calibre and very text book. Otherwise it is abolished and HAS Courses for immediate fee only are offered. That's firm policy. SCHOLARSHIPS No scholarships are now allowed. FIELD AUDITOR PRICE REGULATION All regulation of field auditor prices is abolished. Field auditors may charge whatever they please for auditing. COURSE FEES STANDARDIZED Any course taught in a continental zone must conform to that zone's course fees. 113 OUTSIDE COURSES An Academy may send an instructor to teach a group formed for the purpose up to required course levels. The fee in such a case may not be less than the full Zonal fee for the course per student. The fee must be paid in full in advance to the Registrar of the org. The group also pays for all facilities. The org sending the instructor pays his or her expenses while instructing that group. Any such "outside course" conducted by an Academy shall be conducted as a day Academy Course, tightly scheduled and precisely conducted. It may not be instructed. as a night course or part time course. In event of the group requiring classification examination first, it may be given by the instructor on arrival. In cases where "fastest available transport" fee exceeds $100 round trip, the group must also pay the instructor's travel fare and travel expenses. The $100 is not deductible from these. To receive an instructor, the group must have no less than 10 enrolling students. This applies to all organizations and areas of the world. Trips for translation and dictionary purposes may be arranged otherwise but in that case, where the above group instruction conditions are not met, no course of any kind may be taught. STRESS ON TRAINING It will now be seen that an organization potentially will make a larger staff unit from training than processing due to the lesser number of technical staff members required. This is purposely designed. A boom depends on training, not processing. The high auditing fee is maintained to deter pcs while shunting them into the Academy. A high processing fee in the HGC then permits higher training fees and keeps the org solvent. When our Academies did less business and orgs concentrated on HGCs, gross income declined. THE BOOM The whole forward thrust of the boom depends upon: 1. Getting books to orgs. 2. Heavily, even extravagantly, advertising books and filling the orders. 3. Running an excellent Academy. Getting books to orgs depends on me, on Saint Hill and upon orgs making sure they're ordered and paid for. If we take care to do just those things we'll see (1) above hugely successful. Advertising books depends on intelligent adherence to the price-membership scheme, the Registrar pushing the advantage of membership with every breath. The Assn/Org Sec and HCO Sec are in the best position to see this doesn't choke off - hence their bonuses. It will cost them money personally not to plaster the place with book ads and drive memberships home. They are given no bonus on a net. Only a gross. They get paid a bonus from the book account based on volume not its profit. The Department Heads and Staff get their bonus indirectly by an org driving in a heavy volume through ads and books and the alertness of the Org/Assn Sec and the HCO Sec. Continental also has a vested interest in books flowing and is paid for it. Thus this point is cared for. As for the Academy, it may not at first be visible why this has a dissemination value about 150 times that of an HGC. The following are long established data: (a) Students disseminate. Pcs don't. (b) High income in orgs has always occurred when the Academy was good. And when the Academy really did its job the income was continued. HGCs can receive a good income from the public, bad or good, but the flow of income suddenly shuts off when processing has been poor for six months. There is a 6 months lag and then a depression caused by a poor HGC. The lag is about one week on a sour Academy. I never have fathomed how the public finds out so fast about a bad Academy beyond knowing students disseminate and pcs don't. (c) The only thing which ever gets us into public trouble is an HGC. If we had no HGCs we would almost never have a ripple of discontent from the powers that be. 114 Why? Because an HGC brings us the failed cases of the AMA-BMA psychoquacks. Thus we gather the lunatic fringe around orgs. One can never really discover the bad cases until they're processed and then it's too late. The characteristic of a lunatic is one-way-help- inflow. They don't want to help anyone. They only want to be helped. The moment you insist they help others they either (a) vanish or (b) do so and get well fast. The dear laughable old buffoons, the psychiatrists, shut the door on their own boom with insisting on " 12 years of training (in meat carving) to make a psychiatrist". They made patients into patients forever and "trained" their students forever. We were well on the way to doing that in April this year when I took the helm again. You must let people help or you condemn them utterly. (d) The original plan, 1950, was to train people on short courses, let them go out and get some experience and then let them come back and be trained. By 1959 only I was doing this, with ACCs. We had too few courses. We now have a remedy for this with lots of 1 month courses and examination after experience. REGISTRARS MUST PUSH COURSES The fairest, cheapest way to get auditing is to get trained and then co-audit. An HGC doing its job well is really a public service unit, no more. I will not run down HGCs. We do a great job. But the moment when we can train "outside" auditors to do that great job, we're no longer interested in an HGC as such but only in its income. It's money we don't need and it's very expensive money. Stress must be on Get Trained! That's the pat answer to any questions about the cost of auditing or how to get audited. HGC auditors and Ds of P. bless them, have alone held high auditing standards all these years. That was why they were there. But wouldn't it be nicer to have those staff auditors running the org's co-audits and classes? Training groups in far places? Handling the Correspondence Courses? We'll still have HGCs. But we must not count on them for income for more than another two years. (The time it will take to get really rolling on the boom.) Instead, enroll pcs in the Academy whenever possible by: 1. Sell them auditing and also an HAS Course ("It will make you progress so much faster, Mr. Jones"). Short of that, sell the auditing and also a basic book and demand the pc do a chapter each evening during his intensive. Put a ceiling (stated to the pc) on how much auditing you sell them before they take an HAS and insist on an HAS before you exceed that limit of number of weeks set, even when you accept them back in the HGC afterwards. 3. Use the HGC to feed the Academy and not the Academy to feed the HGC. 4. Count on Academy income only. 5. Use the HGC to square up field ARC Breaks to promote. To set an example. To pick up dropped balls. Not to make income. Sell Training hard. ASSN/ORG SEC MUST PUSH ACADEMY The state of the Academy should be the first thought every morning of the Assn/Org Sec. Not the despatch pile. How is that Academy doing? Better look in. Ah! Floor dirty. One minute past schedule and the sessions not running! Rave! An instructor explaining confusedly off-text. New janitor! Make an Academy Taut Ship. Every halyard humming in the wind. And suddenly it will be full. Suddenly things get solvent. Suddenly the income soars. We start to go! No matter how many students there are, make it a tremendous Academy. If there are 2 or 2,000, make it a streamlined piece of glittering efficiency. Short of instructors? Coolly take the best auditors in the HGC. That makes the HGC short of auditors. So what? Enroll the pcs. Teach Scientology in a Central Org or City Office. Don't try to process the world to enlightenment. Make it process itself in that direction. Otherwise you'll never make it at all. The Assn/Org Sec must promote Academy hard and see, of course, we have a good HGC because it's a model, you know. Income.? Think Academy. 115 PROMOTION Many people "want to know about Scientology but don't want to be an auditor you know.' You'll have to break that attitude. Honestly how can a person use Scientology who can't audit? How can an executive use it in his business if he hasn't been trained? Well, he can't. That's the reality you must put across. Don't say "If you want a happy home, get audited." For that may or may not be true. There may be so much messy environment and so little auditing time that there's no win. Say instead the bald truth as you and I know it, "If you want a better environment, become an auditor!" Thank the HGC for what they do. Demand the Academy perform only miracles. THE PROGRESS OF THE BOOM A. Person sees an ad, buys a book. B. Gets interested, writes in. C. Gets told he should be trained to HAS to get the full benefit of it. D. Person says "That's cheap. I will." E. Person really gets trained, no words misunderstood, really gets it, in a sparkling Academy. F. Person makes a big case gain in finding he can talk to anyone freely. G. Decides at home wants his wife audited and writes in. H. Is told to bring his wife to the HAS while he takes the HQS Course. Etc. THE PCS Now what about the pcs who want to be pcs? Don't be hoggish. Let the field auditor live. Pcs who are only pcs can be salvaged too. But, being pcs they don't write in when they read a book. So send people who haven't corresponded as name lists to field auditors who are franchise holders. Field auditors make people trainable, people come in for courses eventually. Field auditors get fat. Everybody happy. THE FIELD AUDITOR You are only a rival of the field auditor if you are hungry for pc income. The field auditor actually has sent orgs the bulk of the org business in the past. So don't count on HGC income. Count on the much greater Academy income and earn and guarantee its continuance with fine training. Encourage the field auditor to succeed. Make him take out a Franchise. Use successful franchise holders as success stories. Use them as procurement agencies for more auditors. Let them have their groups and pcs. Keep them as friends. Sell them the next course they should take. Make millions of field auditors. SUMMARY These then are the designs and policies which have shaped up. All earlier policies in this "boom series" stand. It may seem odd to base staff member income on HGC pcs and then tell you you must not count on the HGC. But this boom is just beginning. Your economy depends in a large measure on your HGC. It will have to go on pulling its load for a while. And you'll always have me! And there is another factor. I don't intend for a staff member to draw only an average national wage. And the ratio of 1 Admin staff to 1 staff auditor is quite low. As you get to swinging along it may become one technical staff member to more than 1 Admin personnel even when you have a huge Academy. For dissemination takes a lot of Admin. As you expand, you'll get tech thin. So Tech personnel have to be freed up by assistance from Admin as you expand. So it's more that I want to be sure you still charge enough to be able to eat than that I expect you to go on with only HGC income. That's the design. If it needs improvement, we'll improve it. Right now let's make it work. I've got to go off and get the books written. You get your end of it done too. Okay? LRH:jw.rd Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD [Important. See also HCO P/L 18 April 1965, page 93.] HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 23 DECEMBER 1964 Gen. Non-Remimeo Franchise BPI FIELD AND PUBLIC PROGRAMMING Since April 1964 we 'nave been busy with organizational reorganization, public and field programming all armed at the realization of a boom. All levels and technology from Hubbard Apprentice Scientologist Level 0 to Hubbard Senior Scientologist Level VI are complete and being taught. We have our boom already under way. Six Scientology organizations across the world have done more business in December than in any previous month this year. At Saint Hill, as a result of planning and new programmed mail volume rises daily and is entering boom proportions. In the midst of all this change, we have had to grope our way and things are now being smoothed out. This is the design of the boom: BOOKS We are about to broadly advertise books as never before and use all book and membership income to push book ads. I am publishing several new books with public appeal. Franchise Holders may also sell books. BOOK PRICES Pricing has done a bit of a wobble and is being corrected. Publishing costs have risen enormously in the past few years but we are countering this. Books being offered to the public in ads will be at cheap prices. More advanced books will be more in keeping with what the books cost to publish. DISCOUNTS People are expected to become both Life Members and international Members. The cost is œ10 sterling per year for International Membership or $30. This gives a 10% discount on books, a 30% discount on training and processing. An International Membership is membership in the main International organization. A Lifetime Membership costs œ25 sterling or $75. This gives a 10% discount on books (added to the International 10% making 20% if one holds both memberships). It gives a 20% discount on training and processing. This adds to the International 30%, making it possible, by holding both types of membership, to obtain a 50% discount on training and processing. The old Life Membership (bought prior to Nov. 15, 1964) still gives 20% on books and 20% on training and processing. But on books only, this does not also add an international discount. 20% is the maximum book discount obtainable for 117 individual Scientologists. Lifetime Membership means membership in that Continental Zone Organizations. Anyone can be an International Member and a Lifetime Member providing only that they are on our side. All Membership monies go into supporting the advertising and sale of books, so it's in a good cause. TRAINING AND PROCESSING FEES Each Continental Area has now fixed its training and processing fees for its own The increase, discounts considered, is very slight most places. And on training and processing fees 50% discount is obtainable by being both types of Member. So everyone gets a break as the membership costs less than what one saves with his first intensive or Level I Academy Course, and the discount is still valid afterwards. Only the International Membership has to be renewed yearly and this is far less than what one saves in books or Congresses or training or processing. So there is a great deal of incentive to own both memberships. And the membership money goes to make a boom by advertising books and therefore expanding Scientology. FIELD AUDITOR FEES Field Auditors can now charge whatever they please for processing. Processing fees are no longer regulated for them. This applies also to Franchise Holders. Some field auditors have not understood this. They can charge now as much or as little as they please. Many charge more than orgs. However a field auditor or Franchise Holder must now be Classified for any level he receives a fee for. If he or she is only classified for Level II and yet seeks to collect money for doing Level III processes, he or she will be subject to a Committee of Evidence. This is public protection as the field auditor should not use processes he or she is not trained to use. Processing is very workable today. Why spoil it by poor application? And a field auditor seeking to run Level VI while classified only for Level IV on a pc who isn't up to Grade I on his own case is going to injure somebody. So this is frowned upon. Today's processes are very powerful. Only the worst cases insist on upgrading their processes anyway - by which is meant demanding to be processed over their heads. They are a bit suicidal, it seems. COURSES All courses are now exactly one month long. These include HAS courses. At the end of the course one gets his certificate without examination. But before taking the next Level Course, students must be examined for classification. Even if they fail the classification exam they can go on and take their next course. But they can only process people as high as their own actual classification, duly awarded by a Hubbard Communications Office examiner. PC GRADES Pcs can be run on any process the auditor is classified to run. All processes now belong in one level or another. Pcs are not limited nor do they have to be trained before being processed. 118 For their own good, pcs should- 1. Make sure their auditor is classified in the Level being audited, and 2. Move up through the pc grades 0, I, II, III, IV and VI in an orderly fashion so they don't get in over their heads. PE COURSES PE Courses will still be taught by field auditors and franchise holders. They may cease to be taught in some orgs. HAS COURSES Hubbard Apprentice Scientologist Courses are now Academy type courses, less costly than others, but equally precise, and are 160 class hours in length whether taught daytime, evening or week-end. Some very fine new processes and a full curriculum now exist for this Level 0 Course. HQS COURSE Until Jan. 1, 1966 some Franchise Holders can teach Hubbard Qualified Scientologist Courses. Mainly it is taught to certificate in City Office and Central Org Academies. To give some idea of where we have gone technically, present HAS (Level 0) and HQS (Level I) Course data formerly was taught as HPA in the Commonwealth and HCA in the U.S. We have gone very high above these levels and so have to have new courses to teach the material. Further, we can't keep holding people in an Academy for a year at a crack and at the same time we can guarantee an auditor's skill by requiring he be classified in order to charge a fee. So the new HAS and HQS courses embrace everything Academies used to teach. And above that, level by level, the new materials are laid out. Each level has a definite, finite, end product, attainable by an auditor if trained and by a pc if run up through the levels one by one. SUMMARY We are grooving in the policies developed for the boom. Be patient with the rough spots, old timer. Part of our programing is to coax field auditors over to Franchise Holders, and Franchise Holders, by helping them with mailing lists for their areas, are going to be coaxed up to City Office status. And some City Offices are going to become Central Organizations in their own right. With teamwork, hard work and patience we will climb the hill rather easily. In April I started to work on orgs. Through the summer and autumn I also developed the lower levels to good effectiveness. Here in December I have just begun to receive org reports on the telex which speak of greatly increased volume as a direct result of all our hard work. Shortly we will really begin to enter the boom. We are just on its fringes now. Whenever lines become more active their weak spots show up. It's our job right now to locate and fix those up. This boom will be an orderly one. The objective is extremely worth while for all of us. And I myself am pretty cheered up. In April '64 I plan a boom. In December it starts to happen. There are no rough spots in it that can't be fixed up. So let's get the show on the road. LRH:jw.rd Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD [Important. See also HCO P/L 18 April 1965, page 93.] 119 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 15 MARCH 1965 Issue II Remimeo ONLY ACCOUNTS TALKS MONEY Scientology organizations are service organizations. Now, it goes without saying, that service costs money. So please don't equate service with the idea that it is all give away. People expect to pay for good service, and they do pay for good service, unless you barrier the line, or by some foolish handling, convince them otherwise. It is the job of the Registrar, whether it is Letter Registrar or Body Registrar, to find people to communicate to, to communicate with people, to PROMOTE whether by mail, phone, or in personal interview, SERVICE, and to help people arrive at and attain whichever Scientology service best suits their needs and goals. So the Registrar does take responsibility for them, listens to their problems and aspirations, becomes friend and advisor to them, AND CHANNELS THEM TO THE PROPER SERVICE AND CHECKS TO SEE IF THEY GOT THAT SERVICE, ROUTES THEM BACK TO THE DEPARTMENT FOR COMPLETION IF THEY DIDN'T AND BRIDGES TO FURTHER FUTURE SERVICE, IF THEY DID. Now a Registrar knowing about the road to Truth, hence knowing an infinity more about the person usually, than he or she knows himself or herself, must take responsibility for this and channel them and keep them on the road until the person cognites and reaches for the rest of the road himself Even then, the Registrar must work to keep them on the road, and keep them from falling into pitholes, side paths, etc. that the confusions and randomities and distractions of life present But none of this has anything to do with money, except that such services are expected to be paid for. Money is an Accounting function. When money is a concern of the Registrar, and "how is he going to pay for this", and "we have got to keep our units up", "gads, I have got to write up a note form now", "that's going to cost him too much" (the guy has walked in and wants 75 hours of processing and 3 courses before going to Saint Hill)-when the Registrar's concern is all about money, money, MONEY MONEY MONEY, she gets all inverted into what are we going to get out of it, instead of what the person is going to get out of it. In all his years of auditing which exceed anything any of the rest of us have even dreamed about, Ron has never talked to the guy who wanted some auditing or whatever about money. Yes, it was understood it was going to cost something and what it would cost, but that was the end of it. Ron's concern was for the guy and getting him better, and he was not even remotely worried about the money, and the money rolled in because he got the guy better. Oh yes, sometimes he was paid in eggs or cheese, but the guy was wanting to pay because he got service. He never had a problem about money, and he never talked about money. Registrar's concern on money barriers the line for someone coming in, and that's an overt any Scientologist recognizes - to barrier the line of someone coming into Scientology. Here is an example. A person who has been out of contact with Scientology for about 9 years writes in and says to the effect of "Are you there? I need auditing. Send me details, including costs" and was written back (by the FCDC Registrar, winter 1965), "Regarding processing. The original cost is $1000, for 25 hours of auditing. (25 hours constitutes what we call an intensive.) We do have two memberships and there is a good discount on each of these. The first is the International membership (+,30) on which the discount is 30% making therefore auditing 5700; the second membership is the Lifetime membership ($75) making a discount of 20% which would mean auditing would be $800. If perchance you have both memberships, the discount would then be $500. (50%.) You can have more than one intensive should you so desire, in fact, I believe you can have up to 250 hours at any one time." !!!!! The person writing in said "I need auditing". They were saying, "HELP!" and the answer was analogous to throwing a bunch of confetti in their face, just when they needed a stable datum. The answer was a confusion and that confusion is a barrier. The answer to HELP! is help, not confusions. And if the Registrar's concern is on money instead of help then her communications are going to communicate a confusion, and barrier the line. It amounts to an alter-is, so REGISTRARS ARE FORBIDDEN TO TALK, WRITE OR THINK ANYTHING ABOUT MONEY. 120 Well, how about money, then? How does this get handled? Simple. MONEY IS AN ACCOUNTING FUNCTION. It IS the proper concern of Accounts. Accounts, in the past, has had difficulty collecting in some cases where credit was extended. Registrars in the past had been on the money line, and were busy issuing credit, and the line to Accounts was poor or non-existent for checking to see if the person was a good credit risk or not. Well, that is a thing of the past, with money totally in Accounts where it belongs, and the following into operation: 1. Three fliers (printed handouts) are to be made, as follows: A. International Membership Flier. HASI INTERNATIONAL ANNUAL MEMBERSHIP The Cash Discount Membership The HASI International Membership is open to anyone, of whatever race, colour or creed, who is not hostile to Scientology. It is an annual membership, and the yearly fee is $25.00 / œ10.0.0 (apply to your currency). It must be renewed yearly. The HASI International Annual Member enjoys a 50% discount off the public price, when training and processing is paid for in full at the time it is taken. The HASI International Member enjoys the privilege of buying the books, tapes and meters and insignia of Scientology which are offered to members only, at 50% discount of the local price when paid for in full with the order. The International Membership is the ANNUAL 50% CASH DISCOUNT MEMBERSHIP. Its holder gets a 50% discount on everything and as many as he wants of anything. The person applying for membership signs a pledge to abide by the rules, codes and disciplines of the organization and that he understands there is no refund of membership and that he does not belong to or work for any hostile organization or group or any group undisclosed to us that is dedicated to the harming of Mankind. The pledge signing must be notarized. The International Member is a member of the brotherhood of Scientologists which span this planet. He or she receives a numbered membership card and Scientology pin (only issued once). Those who already have an International Annual Membership in force may have a 50% discount until its expiry date if they have signed their pledge. The card is annual, and a new card is issued with renewal. HASI International Annual Membership brings all issues of (put your continental Magazine name) and the Professional Auditor's Bulletins, which is the oldest continuous Scientology publication, and is direct from L. Ron Hubbard to the professional field in Scientology. A HASI International Annual Membership is necessary to keep a classification in force. Membership may be applied for from the following Hubbard Communications Offices (put offices and addresses of all the HCOs of City Offices and Central Orgs coming under one Continental Office). B. HASI Lifetime Membership Flier. HASI LIFETIME MEMBERSHIP The Scientology Credit Member This is the Scientology wide open credit card, entitling the owner in good standing to one of anything in Scientology at a 25% discount from the regular price. One of any book published, one course, one grade of processing intensives, one meter, one tie, one anything. When the first one is paid for he can have another. There are no down payments, only routine billing. It is a full wide open credit card, valid all over the world. The HASI Lifetime Membership is open to anyone, of whatever race colour or creed, who is not hostile to Scientology, and who is not in default on any credit extended to him or her by any Scientology organization. It is a lifetime membership and the fee is $75.00 (put your currency). The HASI Lifetime Member enjoys the privilege of being extended credit by Scientology organizations. Flagrant default in payments on credit extended, and as agreed to, results in loss of membership without refund. Fulfilling of payments within 12 months or before, when credit has been 121 extended results in a gold star credit rating for that year. Credit may be extended only on one course, one intensive through one pc grade, 1 of each book, payment for which must be fully discharged before further credit may be extended on that type of item. And the further credit, again, may be on only one thing of that type. The credit may be up to 100% credit extended, and the 'one thing' it may be extended for include one course, one intensive through one pc grade, one of each book, one meter, one tape, one insignia - in other words, one of a kind only. Memberships may never be purchased on credit. The HASI Lifetime Member, when using his credit privilege, enjoys a 25% discount off the regular price on courses, intensives, books, tapes, meters, insignia, etc. (If the person is going to pay in full, it is conceived that he would take out a HASI International Membership and enjoy the 50% discount.) Loss of membership through default in payment may be regained by payment in full of the amount owed, plus a penalty fee of 25% of the amount owed in full at the time of default, plus the purchase price of the HASI Lifetime Membership fee- . Until the above is done, the person may not have a HASI Lifetime Membership. This however does not affect their international Annual Membership if held. The person applying for HASI Lifetime Membership signs a pledge to abide by the rules, codes and disciplines of the organization and that he understands there is no refund of membership, and that he will fulfil the obligations within one year or before on any credit extended to him, and that he understands that failure to do so will immediately result in his loss of membership, and that in order to regain his membership he must pay in full the amount owed, plus a penalty of 25% of the amount owed (in full) at the time of the default, and that he then may purchase a new membership. He must declare that he does not belong to or work for any hostile organization or group or any group undisclosed to us that is dedicated to the harming of Mankind. The HASI Lifetime Member is issued a numbered membership card with years blocked in on the reverse side for impressing of the gold star credit rating when achieved. Extant HASI Lifetime Members are granted the above credit if they sign the new declaration for membership and are not indebted to a Scientology organization. Otherwise they still get only a 20% discount. HASI Lifetime Membership may be applied for at the following Hubbard Communications Office (list offices and addresses) Services Offered Academy Courses HAS Level 0 HQS Level 1 HCA Level 2 HPA Level 3 etc. Scientology Processing 12 1/2 hr intensive (1/2 week or week-end) 25 hour intensive (1 week) (Leading to Preclear Grades 0, I, II, III, IV - more than one intensive may be required per Grade). The third flier is a rate card. SCIENTOLOGY SERVICES RATE CARD Full Public Price (give in your currency for each item) Lifetime Member Price (Credit) 25% Discount (Reduce each item by 25%) (Full Public Price is your local full price per January price raises.) 122 International Member (cash) price 50% Discount On the back of each Rate card give a full book list of books you have at your local prices. SCIENTOLOGY MATERIALS All sent Postpaid from your Local HCO Books you actually have Full Public Lifetime Member International Advertised Price(Credit price Annual 25% off) Member (cash) (50% off) Titles of Books Tapes Meters Materials, badges, etc (but not pins which are now free) _ So now, you have these two fliers and this rate card. Now, the Registrar, in response to queries on prices, and otherwise in correspondence, talking, phoning, etc. supplies only these three things. Does not otherwise discuss money in any way, shape or form. Now what happens when a person comes in, wanting to sign up? He or she doesn't "sign up" at all. The person is routed by Reception to Accounts for an Accounts Clearance. In Accounts, the cashier is at post preferably in a wicket. This is exactly like a theater ticket front, complete with the glasses window with the hole (small and awkward) in it to talk through and the hole at the bottom to slide money through. Any accounts office door, if up front in the org, can be fixed with a half door to look like this. It would not at all be out of place for the cashier to wear a green eyeshade, and have a very detached attitude about anything except money or money matters. Very businesslike. The person coming in is routed to this cashier. Posted on the outside of the wicket or immediately in the area on display signs, is exactly the same data contained in the above fliers and rate card. If the cashier is asked for data, he points to the proper sign. The cashier's actions otherwise are: 1. He checks the membership. If none, he collects the money (if the person is seeking the HASI Lifetime membership, the cashier must check his defaulted list to make sure the person is not on it. [This tells you immediately that the defaulted list must be kept up to date daily, and defaulted lists circulated between orgs on a fast comm line, for immediate posting. No show is made to keep a defaulted list confidential. It must be posted in Accounts.]). After collecting the money for the membership, he invoices it, marks the membership number in the invoice, issues the white copy as an Accounts Clearance slip for whatever kind of membership it is, and the person is routed to HCO to sign his membership pledge and receive his card which is issued on the spot by HCO in a log book. It is Accounts that keeps and assigns the numbers of members. These are coded LM + (area code letter such as Me for Melbourne) + 15 (Scientology year) + number in sequence for the area international is IM + (area code letters) + Scientology year + number in sequence. HCO gets a copy of the invoice which bears the person's name, address and number. 2. If the person already had a membership, or now having one per above (remember, if the person had a Lifetime membership and is seeking credit, the cashier must also check the defaulted list), the cashier does the following: 1. If the service or material is being paid for in full he collects the money and invoices, and issues an Accounts Clearance slip for whatever the service is, and the person is then routed directly by Reception to the service section (Division 2), directly into testing to the D of 1' or D of P and thence into class, or processing. In the event the person is not acceptable for processing by the D of P. who so marks the Accounts Clearance slip, the person is routed back to Accounts who immediately returns the money and voids the invoice upon having the slip turned in to him, or destroys the payment pledge. The routing slip for processing must say (name of person) CLEARED BY ACCOUNTS FOR PROCESSING (in whatever amount) THIS SLIP DOES NOT CONSTITUTE AN ACCEPTANCE BY THE HGC FOR PROCESSING, BUT IS AN ACCOUNTS CLEARANCE ONLY. 123 2. If the person is seeking credit, which he may have unquestioned, providing he has a HASI Lifetime Membership, and is not on a defaulted list, but may have it for one item only (AND NO FURTHER CREDIT MAY BE EXTENDED ON THAT TYPE OF ITEM UNTIL THIS ITEM, COURSE, PC GRADE, ANOTHER COPY OF SAME BOOK, IS PAID FOR IN FULL, ON SCHEDULE), then the Cashier invoices the Course, Intensive, book(s), or whatever, i.e. John Jones address I HCA Course S 1,000 L.T. discount 250 Charged to Account (c) 750 L.T. Membership No. LMDC 15459 John Jones (signed) THE CASHIER MUST HAVE THE PERSON SIGN THE INVOICE (with carbons) so that the signature goes through on all copies. The white copy is given to the person. And he is issued an Accounts Clearance slip. The Accounts Clearance slip which says - John Jones has been cleared by Accounts for 1 HCA Course. April 25, 1965 Signature in full of Cashier. Remember the slip for Processing must say, THIS SLIP DOES NOT CONSTITUTE AN ACCEPTANCE FOR PROCESSING, BUT IS AN ACCOUNTS CLEARANCE ONLY. A rubber stamp for this may be made and used. The customer is led to look on these as monthly bills, not time payment or hire purchase. There are NO notes. NO contracts. There is NO interest. This is simply a credit sale. This is maximum protection for us. The statements are arranged for (1) (Academy bill), (2) (Processing bill) and (3) Books and materials. If the (1) Account is unpaid, no more credit courses until it is. If (2) account is unpaid, no more credit processing until it is, if (3) is large and unpaid no more books, tapes, etc. If nothing is paid in a year on any one of the three, no more membership. Accounts, in billing for amounts owed, just issues a routine monthly statement. If a payment has been made on the account, then that, of course, is posted, and the next monthly statement reflects only the amount now due. 3. Scientology materials. Any person off the street, public, etc. who comes in wanting information on Scientology, etc. is only told by reception to get a book. In the reception office are placed books for sale. One section contains books for the public, marked BASIC SCIENTOLOGY BOOKS, and posters around saying, THE WAY INTO SCIENTOLOGY IS TO START AT THE BEGINNING, and DON'T ASK SOMEONE TO EXPLAIN SCIENTOLOGY TO YOU, GET YOUR OWN REALITY - READ A BOOK, THEN TAKE A COURSE, and THE DATA IN SCIENTOLOGY SPANS THE TOTALITY OF EXISTENCE, WHICH MAY SEEM TO BE AN ENTICING MYSTERY TO YOU, BUT IF YOU WANT TO UNDERSTAND THE TOTALITY OF EXISTENCE, THE MYSTERY WILL ONLY UNRAVEL BY INCREASING YOUR REALITY, OTHERWISE THE MYSTERY DEEPENS. BEGIN HERE with an arrow pointing to the Basic books. The other books and materials of Scientology are in a divided section marked FOR HASI MEMBERS ONLY. When the person has selected the book or books he or she wants, the cashier collects the money and reception delivers the book or books. If the person is a HASI member he gets 50% discount on the books m the Basic section, or the International Membership price if paying cash for materials for members only (must have 124 International Membership), or if seeking credit, must have the HASI Lifetime membership with the same checks on default as in Services applying, and the rule of one of each item applying. If the person is new and wishes a membership to get the 50% discount or to buy books from the Membership section, he or she is handled exactly as in (1) above. He or she is not then prevented from buying higher level books, but the signs still warn the person to start at the beginning. Reception looks after books and their cases. Reception is to have nothing to do with money as she is a Division 1 personnel and is not Division 3. If a person comes into the org not knowing what he wants, but presents only his or her problem, and wants help, he or she is routed to HCO to the Registrar who channels them according to their needs, but who does not talk money. The Registrar may (and must if pressed by the incoming person for information about costs) say "Only Accounts can talk to you about money. I am here to help you find what you need in the way of service." And when the person is routed by Reception to Accounts, it is all on the signs which the cashier merely shows them, or hands them the two fliers and rate card. The Registrar is forbidden to hand them to body callers. Accounts is admonished not to mention credit. Also Accounts has no interest in credit rating before it is defaulted. Let the person ask about it. It was found many years ago that most people walked into the org with the money for the service on them. If the Registrar (in those days she was handling the money) asked, "Will this be cash or credit?", the person, with this invitation, inevitably said, "Oh, can I get some credit? Well, let's see, I'd like to pay so and so, and get the rest on credit." And they would walk out of the Registrar's office with the rest of the money still in their pocket The Registrar's question should have been "Are you paying this by cash or check?", and if there is a question of credit, let them bring it up, as an origination. But today the Registrar mustn't talk money at all. Think of the most exclusive restaurant that you know of. Get the idea of going in there and ordering a meal without any money or credit card. You cringe? Well, create that same kind of atmosphere and attitude for the org. All service today is "travel now pay later". This must pay because everyone selling service that way is rich and powerful. The public does pay its bills. Your prices are now rigged to absorb the 33 1/3% loss we have due to bad credit. The prices are 33 1/3% higher than cash. No interest or notes or trouble. Train now, pay later, get Grade 0 now (2 or 3 intensives) and pay later. If they don't pay, then worry. Don't worry everyone because 1/3 are dead beats. Create the attitude that a person's credit card is extremely valuable, and must be kept in good standing at all costs. It is practically a moral code in the society today. Use it. But it will not prevail with sloppy handling of accounts, breaking the rule for a friend, just letting this one go by. It will be strict and unbreakable 8-C on the line - heartless, maybe, but not any more heartless than a low, below living, unit check...not any more heartless than the guy who doesn't get into Scientology next year because there weren't enough funds to disseminate because the guy last year didn't pay for what he got. Well, what about the guy who got poor service - no gains, ARC breaks instead of training? Well, Accounts has a control line on that too. It is Accounts who issues the free week of processing, or who can send a student back for free retraining (not a next course up, retraining on the course that was flubbed on). And it's the whole org who is to scream when people start defaulting. Too many defaulters tells you there's bad tech going on, so it is an indicator, and you'd better start screaming, because people won't pay if there's no delivery. They'll say "To heck with it", the same way you would if you had a Diner's Credit Card, and every restaurant you used it in served you soup with flies in it, you found finger nail clippings in the mashed potatoes, and the steak was green on the under-side. You'd tear up your credit card, walk out without paying, and probably go see your lawyer. You have the total tools for delivery today. So deliver. Count on good delivery to collect the credit issued. Not on lawyers or complicated registration. Reception ONLY ROUTES. She does not answer questions except with "Oh, where you want to go is to Accounts", or "You need to get a book", and she routes. Accounts is to be located adjacent to Reception, and people are to be routed and handled with a friendly dignity. The public tries to wander all over - it is unaware, generally, of your hats and lines. They will try to put anybody's hat on the nearest guy they can get hold of. If it isn't your job, and hasn't come to you on the proper routing line, then you only route. A river will overflow if the barriers (banks) at the side are 125 not there, or so weak that they can't hold up. If it has strong firm banks, the river will flow down the channel so delineated. Having, by now, I hope, heard the tape of March 2, 1965 you recognize that you don't do a big acknowledgement job on the incoming student or preclear You don't say "Well, you arrived. Good. Fine. I am sure glad you got here." You don't end the cycle this way for him. Reception never greets. It is just barely at start. Getting the person to reception was not the cycle you are working for, and neither is the pc or student. So you say, "Well, you must be anxious to get going. Let's get you into class," or "Testing is waiting for you." Staffs should dress and behave with appropriate dignity to create the attitude and atmosphere set out in this Policy Letter. So you have had a hard time and have no clothes! Well, get inventive, until you get so affluent that you can hire a tailor. Get inventive on low or no cost ways of sharpening up the premises, particularly that part which meets the public eye, until you are affluent enough to do something better about it. And demand cleanliness and neatness of premises at all times. But don't let clothes and shaping up premises distract you from your job. Just make a habit of expectancy on it, got the idea? The day of the doldrums is over, so just end cycle on that. THANK YOU. We have entered a new echelon of Scientology. P.S.: The effective data of this Policy Letter is as soon as you are set up with your materials printed up, you need to get your wicket in and the personnel drilled on it, but at the latest June I, 1965. You will be receiving the additional data needed on this, how to handle pledges internally, membership card mock-ups, etc. In the meantime get going on what is supplied here. And muzzle Body and Letter Registrar on money. Route to Accounts. Design by: L. RON HUBBARD Written by: Marilynn Routsong for L. RON HUBBARD LRH:jw.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED [Important. See HCO P/L 18 April 1965, page 93 and HCO P/L 11 March 1971, page 268.] 126 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 22 MARCH 1965 Gen Non Remimeo BPI SAINT HILL SERVICES, PRICES AND DISCOUNTS Saint Hill has just opened its Hubbard Guidance Centre in order to be in line with all orgs over the world in all departments. The Saint Hill Course now handles all levels of Training but these courses are review courses at the lower levels and HCA (classed or unclassed) or old Commonwealth HPA (classed or unclassed) remain the entrance requirement. Students go through all levels, usually the lower ones very rapidly, and are Classified for each Level with a Saint Hill Classification. Saint Hill Classification takes precedent over all other classifications in any level. A student's own Classification is not taken away but for the duration of the course is invalid but may be resumed on departure from the course. However the student usually has a far higher Saint Hill Class on leaving. The purpose of the Saint Hill Special Briefing Course remains the same - to make the auditors and instructors who make the auditors and instructors over the world and to put the final polish on auditing. As auditors sometimes do not realize that an auditor of a higher level always audits at the pc's level, seeing and getting lower level results and clearing with them is very revelatory. One does not expect a Class VI auditor to run only Level VI. Quite the contrary, Level VI training is never applied to an untrained pc by an ethical auditor. A Level VI auditor should be able to do Level 0 work superlatively well. Level 0 processes release people with ease and many clear today at only Level II, much less IV. So the Saint Hill Course enters all students today at Level 0 and rapidly moves them right on up in quick time. Students who know the lower material of course get it checked out very readily. A student can always ask HCO Board of Review for a classification while on course, but of course must pass all lower classes before being tested for the one asked for. DISCOUNTS International Membership 50% discounts apply to all HGC pc and Course Student enrollments at Saint Hill, now. Credit, by agreement with other orgs, which might lose business if Saint Hill allowed it, will not be extended by Saint Hill, so Lifetime Membership does not apply at this time. This gives a 50% cash discount on all courses and Intensives. COURSE The Course (50% discount price) is still œ275 sterling. This makes its public price œ550, but of course no public applies. This is about œ40 a level, making it a very cheap review course. It must be bought all at once or œ275. HGC Intensives are the same price as in the U.S. The 50% cash discount makes an intensive 5500 or the equivalent in sterling. Saint Hill Student price for an intensive (75% discount price for Saint Hill students only) is $250. The student may be an old graduate or one currently on course. Academy Students do not qualify for the Saint Hill Professional Rate, only Saint Hill Students and Graduates. Any level pc is taken but only the pc's level will be run, of course. However it will be run very well, usually by Level VI auditors. Pcs are issued their Grade Certificate the moment they complete a level and this Certificate takes precedence over all other Grade Certificates in the world. BOOKS Saint Hill book prices carry a 50% discount from list for International Members. LRH:jw.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD [Important. See also HCO P/L 18 April 1965, page 93.] 127 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 22 MARCH 1965 Gen Non Remimeo Post Staff Not Public Boards (Expose all sheets on board) CURRENT PROMOTION AND ORG PROGRAMME SUMMARY MEMBERSHIP RUNDOWN INTERNATIONAL ANNUAL MEMBERSHIP There are two Memberships-THE INTERNATIONAL ANNUAL MEMBERSHIP - This is the CASH DISCOUNT MEMBERSHIP. It gives a 50% cash purchase discount across the boards-Training, Processing, Books, Meters, Tapes, Insignia, Congress, the lot. If we sell it, an International Member gets 50% off The Membership must be renewed every year. It expires on the same date the following year at one minute past midnight. It keeps one's certificates in force. No services are ever promised to its holders but a monthly magazine is sent and a copy of the Professional Auditors' Bulletins comes to them from Saint Hill providing Saint Hill is given their addresses and changes of address. Members' lists are kept in orgs and org Central Files and the Org Roster of Members. Anyone can have an International Annual Membership providing they are for us and not members of groups seeking to harm Mankind. The cost is œ10 sterling or $30 US. The entire fee is paid into the HCO Book Fund Account and buys advertising for Scientology books and pays book bills. (All receipts for books, meters, tapes, Insignia and all Memberships go into this Account. These are the funds that promote Scientology through books, the only effective way orgs have ever promoted.) To obtain or renew an International Membership one must (1) Get an Accounts Clearance and (2) what will be called a Division 9 Clearance and (3) sign a sworn statement promising to uphold the codes of Scientology and declaring they are not a member of a group hostile to Mankind or Scientology. Note that there is no waiver of rights to sign now. LIFETIME MEMBERSHIPS THE LIFETIME MEMBERSHIP is the CREDIT MEMBERSHIP of Scientology. Its holders can obtain a discount from the list price of courses, intensives, books, meters, tapes, Insignia, Congresses, etc. They can have ONE of anything on credit. One course, and one grade worth of intensives. In books, meters, tapes, Insignia, Congresses, they in actual practice can have a reasonable amount, as it is too hard on accounts to keep more than three items in view (courses, intensives, books, etc). It acts as a Carte Blanche credit card. There is NO note, NO interest rate, nothing. The Lifetime or Credit Member is billed monthly on a standard charge account system. There are no arrangements for payments at regular intervals. However, the Credit Member must have paid for his course or his Grade worth of intensives or his book bill before he can have another course or grade or beyond a reasonable amount of books. If the bill is not paid in 12 months the membership is forfeit. After a forfeit of a Credit Membership, if the person then belatedly pays his bill in full with any additional amount as penalty, he may now buy another Lifetime Membership if Accounts will sell him or her one. The idea here is to keep one's credit good, for the card itself has good value in supporting credit elsewhere. Old holders of these may have the new discount if they sign the sworn statement for the new status. If not, then they get 20% off on books, meters, courses, intensives bought for cash. Neither the old or new Lifetime Membership adds now to the International Discount. That went out because the International alone gives one the cash 50% discount. If a Lifetime-International combination Holder that bought both before March 1, 1965 insists on a 50% combination discount for credit the way we were selling we always deliver what we promised and he or she may have it by signing notes, paying heavy interest, giving the down payment and signing a waiver of liabilities and all that just like we were doing from January 1, 1965 to March 1,1965. Newer ones (sold after March 1, 1965) can't have that "privilege". Actually it is likely to be more costly to them than the new system. 128 For in 1966 we will begin to GOLD STAR the Lifetime Members' cards, giving them a GOLD STAR CREDIT RATING where they have promptly paid their bills and a Gold Star Credit Card in Scientology will carry a 45% discount. To get one really sizable credit will have had to have been advanced and promptly paid such as courses, or grades. A Gold Star Credit Rating must of course be kept good after award and default carries the same results as a new Lifetime Membership. A Lifetime Membership will be a handy thing to have-one will only have to sail into an org, get his Accounts Clearance slip and so have his next pc grade or course any time he feels like it. The Lifetime Membership costs œ30 or $75 and need not be renewed unless forfeited for payment failures. It is paid for in cash at the time of application. Anyone can have one, of any race, colour or creed. They need only sign a sworn statement to abide by Scientology Codes and that they are not a member of a group hostile to Mankind or Scientology. OLD HASI SHARES You may wonder what to do with old HASI Ltd Shareholders. The share, of course, can't be cancelled. The answer to this is that a HASI Ltd Shareholder is not a Lifetime Member in any sense of the word. The 20% discount if promised in that area is not additive. If the Shareholder buys books or intensives or courses, for cash of course, since nobody promised any credit discount ever, the HASI Shareholder-if the local offer to buy one said so originally-gets 20% discount and no other. It does not add to International. A few of these shares in South Africa were maliciously held onto. Most other places converted back and turned their shares in. Such Shareholders should be written to personally and advised of the advantages of a new Lifetime Membership and the above limitations of the old share should be heavily stressed. They should be told that the local government would not grant HASI Ltd a non profit status and so we remain HASI, Inc of Arizona and will continue so and offer them their money back or a new Lifetime Membership with all its advantages of full credit and good discount. Please shake off these old HASI Shareholders so we can close the company. We're booming Internationally as HASI, inc. It's to their advantage to become Lifetime Members now. QUALIFICATION OF MEMBERSHIP There is no grade, certificate or classification Qualification for any Membership. One must only swear to abide by and uphold the Codes of Scientology including the Auditor's Code, the Code of a Scientologist and any other Code of Scientology and that one is not now a member of a group hostile to Scientology or Mankind. This sworn statement is made in and the membership issued from the Membership section of the org at once. OPEN DOOR You may detect from the above that we have now opened the door of orgs for action. Hitherto one was interviewed and registered personally by the Registrar. This is no longer necessary. The Registrar is now HCO personnel and handles no money, makes no notes. One should be able now to walk straight into an org, straight up to the Accounts Cashier near the entrance and get an Accounts Clearance. This is a white invoice slip. Accounts receives any payment and issues the "white copy" to the person. If it is a 129 credit sale, the person must sign the white while it is still on the Invoice machine but this is not necessary on a credit mail order from an org. This is all the procedure for the person. He or she then takes the "Accounts Clearance" to the division giving the service and gets it then and there. If one is buying a membership and then processing or training or books, one goes to the Accounts Cashier first, then to Division 9 nearby and gets the Membership issued, then with their membership card returns to Accounts for the "Accounts Clearance" for the next service. Reception near Accounts is ready to direct anyone to Membership Issue or the HGC or Academy interviewers. If a member requiring processing or wanting training wants advice, a registrar is available. But actually all the necessary advice is posted beside the Accounts Cashier window complete with Membership descriptions and costs and all prices including book, meter, tape and insignia prices. A floor plan is in plain sight in reception if one wants to find one's own way. Therefore there is no waiting. THE NEWCOMER If a person comes in asking "What is Scientology", reception instantly says, "That is very well covered in a book. Here is the correct book for you and it will tell you all about it. The price is " Reception, via Accounts, sells the person the public book and reserves all other books for members only. Thus nobody there explains Scientology. They sell him a book. The Registrar does not talk to newcomers and indeed is forbidden to try to explain Scientology or processing to a completely uninformed person. If they didn't know, she like everyone else, sells the newcomer the public book. There is no brochure given out in Reception, no PE brochure. Only book ads. In the back of the book the newcomer buys, an inserted card fastened in, invites him to a PE Course. This card must be discovered only by someone who has read that far in the book - it mustn't merely fall out and no such cards may be placed about in reception. PE is for book finishers. If they can read a book we want them. If not, we don't as they'll only fog others in the class. The passport to PE is "Have you read a book?" That alone is what we require before we will put in Admin time on them. There is a formula and drill for use on public persons on personal contact. We don't use it at the front door of the org. We use it through members of our Field Division only-the Field Auditors. This handling of the newcomer is based on 15 years of experience. The Field Auditor can handle him best. Only when the newcomer has read a book or been audited or trained by a Field Auditor can he or she be entered into an org at any higher level than "Buy a Book". What you have to do to sell the Newcomer a book is another thing and is technology, not policy and so is not covered here. The policy is the Newcomer must buy a book and that's it. Otherwise an org tends to develop a psychiatric type practice that wears everyone out. Orgs are live activities, not morgues. Admitting the Newcomer who has not read a book into PE or the HGC or Academy is pure nonsense. Scientology is aimed at the able. When you curve it toward the unable, your dissemination programme will go all awry as it is no longer reaching the able public for which it is designed and you will get into the org a lot of fringe that breaks the instructors' and staff auditors' hearts and breaks the economics of the org as well. Scientology is for Scientologists, not for the person in need of daily nursing. You can't build a new civilization with dead meat. You tend to them afterwards when you've time and money to burn. The simple selection is, Can they read a book? If they can't they'll take far too much time and effort and will only distract the main body. There's plenty who can read a book and if you only handle them you'll handle more and more of them. If you even try in an org or a practice to handle people too distracted to do so you'll handle less and less. That formula alone is the determining force of whether an org auditor goes up in activity and numbers or down. If you accept only those who can read a book you will grow. If you ever accept those who can't you will shrink. There are no exceptions. Leave it to me to give them the book they can read. You tend the store and we'll have a rush hour 24 hours a day and the staff to handle them. 130 Advertise and sell books hard. Then service those who could read. Book prices of public books will be such as to permit the book to sell. There will only be 3 or 4 public books in all. You don't have them yet. Meanwhile sell Problems of Work or old Dianetics or Scientology Evolution of a Science or the Original Thesis. The real Public Book #1 will be out before the end of 1965 by the thousands. It's already outlined and mostly written. It will probably cost the public $5 in the US and 30s. in England and some round equivalent in the Australian or SA market, whole paper money in every case, post paid, even Airmail. So don't use up too much public medium ad money yet for old books. Just feel your way around until we shoot the works on Public Book #1. We have to groom up our orgs first anyway and get them booming by existing actions alone and clearing up their existing public. They better come in and get clear now because next year will find a jam for service no matter how many we have on staffs. Tell them so. PROFESSIONAL RATES Old time Professional Rates are back for the HPA/HCA or above (classed or unclassed). If he or she has an International Annual Membership in good standing (current year and unexpired) intensives cost only 25% of the public list. Cash only. HQS, HAS are not eligible when not actually in the Academy. However an HAS or HQS student, only if ordered by the D of 1' to an Intensive may also be given the Professional Rate if they have also an International Annual Membership. This is an excellent chance and should receive wide publicity. However, trip up HAS/HQS students who enroll on course only to get HGC student rates. For the D of T may not order a student to processing if he suspects the enrollment was only for that purpose. HAS PRICES HAS prices may be too low to take a 50% cash discount in some areas. If so, raise it. Continental Director has that authority. It still gives a 25% refund if the course is finished by the student. These HAS courses can be weekend courses, too, you know. Or night courses, 160 course hours, I think. COURSE TIMES All courses in all orgs enroll every Monday. No special courses for certain dates will be tolerated in any org. Magazines should say "Enrolls every Monday" after every course in every Academy Ad. If you don't you go mad trying to get pcs every week for ad money and wind up with a psychiatric ward for an HGC. The check sheet system used now at Saint Hill for levels fits every course nicely and requires no "every 4 weeks". Saint Hill enrolls all week long! Further, Instructors in Scientology must not personally lecture students on technology. Instructors only do this when they don't know their HCO Bulletins and the same instructor is always giving squirrelly unusual solutions in answer to student questions rather than answer them accurately or get the student to find the answer in his student materials. If you want a current check sheet for a level write your comm-member (HCO Pol Ltr of March 13 '65) at Saint Hill. PROCESSES TO USE Break down the Q and A that Class VI auditors run Class VI only on all pcs. It isn't so. Pcs not trained don't get enough TA and Class VI caves them in, quite. Same pc gets as much as 75 TA Div per session run on Level 0 where he should start. A Class VI auditor can do better Level 0. One audits always where the pc is. Never only where the auditor is. That error alone stops you from making clears. CLEARS Clears are bobbing up routinely now. They release these days at Level 0 or Level I and begin to clear at Level II free needle. However Levels III and IV stabilize them very well and they really go very clear if the auditing is good and smooth. 131 Sell Release and Clear with confidence. Only squirrelling on levels and rough ARC Break handling can prevent it. The total rundown of processes is easy to groove in in an HGC and should be adhered to violently if you want to get results and releases and clears. It's no myth now. A person who clears at Level II can be audited on Level III and IV providing you don't do subjective processes-only CT work. And the clear can (and must) audit others subjective and objective. PC GRADES Pc Grade Certificates as already outlined in recent awards HCO Policy Letters will save your bacon on odd demands for hidden standard type results and save you as well from HGC squirrelling. A pc is given his Grade Certificate when he has finished all the processes of a level. Some new auditor may try to do this in 20 minutes. But it really takes about 3 twenty-five hour intensives on a lower level to do all the processes of that one level and flatten them. This is easy, easy. Don't strain anyone's brain. Just use a check sheet on the processes run in the HGC for each level. It's a form. The auditor has to certify each process has no more TA in it when left. It also finally says the pc has no ARC Breaks now and is very okay. The pc must also agree and sign the sheet. When done, the Grade check sheet goes rapidly to Certificates and a Grade Certificate (a letter) is signed by the HCO Area Sec and is issued to the pc. The pc only now can go on to the next grade. Where a pc gets to a Grade in the middle of an intensive and has no more bought (and particularly where he has this one on credit) spend the last few hours of any Grade doing Itsa in all his treatment, auditing and other solutions. Now that he's loosened up by the Grade, you may be astonished to see your meter needle start to float. Clearing has always been easy. People mainly were too rough on pcs or tried too strenuously. The Grade Sheets (and the pcs) must all begin at Level 0 and go on up no matter who the pc is or what old certificate he or she has or how horribly urgent it is that OT be reached last week. HGC processing must now be all by Grade Certificate. The Grade Certificate says on appropriate stationery, "Let it be known this day of...that John Doe has completed all processes of this Grade as a Preclear in the Hubbard Guidance Centre and has successfully completed Grade and is now fully qualified to be processed on Grade (next grade) processes. Signed HCO" The sooner that system is in - check sheet, grade carts - the quicker you'll start making Releases and Clears. Release and Clear are Honorary not technical awards. Release is simply "Know now I won't be getting worse" and Clear is a Meter condition of near TA position and a floating needle. You can't miss it when you see it. Some meters aren't dead centre on the clear read. But it's near 2 or near 3 and all meter needles float. Just because a person attains release or clear is no reason to halt either an intensive or a grade. Let the pc have a win on the process if he or she insists that one is flat now. But go on to the next process. You only begin to skip subjective (figure or think) processes (except pure Itsa). All Clay Table work is objective. STUDENTS Let a student "finish his course" (such as complete his own case for grade) if he insists but a course completion is a check sheet not a condition or classification. It is now a crime to run a course without a check sheet or to change a check sheet on a student after it's issued. A different check sheet can be issued to the next student that enrolls on that very same course. But once issued, the same one is completed for a course completion of that course and the student gets his certificate for the Level when it is and can take his exam for class. There are 3 check sheets actually - Theory, Practical and Auditing. There is no Academy check sheet for student's own case but an HGC case check may be used but not taken much account of. All 3 should be complete 132 before you let a student go up for classification. A grade certificate is only issued a student who has had all the processes run, not because he finished his study of the level. The Grade Certificate, if issued, says Loudly Academy and may have no weight in an HGC or Saint Hill. CLEARED STUDENTS Students who are clears have to do all the required auditing as an auditor. And get it passed. Clear is an honorary, not a technical award. But a truly floating needle clear may not be audited on involved subjective processes. This doesn't get him off any CT work at all. He or she may not be jumped a grade or a course. (One course early on in clearing they panicked and urged promotion of a student to high levels at once from an incomplete Level II, were refused and in CT work the student cleared more clear.) A student doesn't know more about Scientology just because he's clear. He just learns faster. So the cleared student must do all his auditing on pcs, subjective and objective, clear or not If you don't have any raw meat for a student to do all his levels on, make the student scrounge his own pcs off the street or city dump. Remember, don't panic on clear. It means the student like any other student must do all his required check sheets and go on up, level by level just like every other student. Just don't run any further subjective processes or he'll key in. CT will only key him out more if properly done. SAINT HILL PRICES Saint Hill is being careful not to undercut anybody and won't give credit in order to prevent orgs from losing out. Saint Hill auditing prices are same as US Professional discounts and student discounts apply at the Saint Hill HGC. The Saint Hill Course was doubled in price and then halved for International Members just to be able to grant the discount like anybody else. Saint Hill books, tapes, meters, insignia, are all 50% off for internationals. 20% for all Lifetime if cash Not additive now. Just like in other orgs. This standardizes the shape and activities of Saint Hill and makes it the same as other org boards. This makes its advices more real too. Saint Hill has the world's most experienced people in Central Org activities so don't be misled about the advice you get-it's hot and good. MAILING LISTS The elementary Emergency formula for a down org is: 1. Promote Promote Promote. 2. Then change bad spots and re-organize. 3. Then economize, cut off all Purchase Orders except postage, communications and rent. 4. Get ready to Deliver to the people who will be coming in as a result of the promotion and deliver. To promote you must have a full mailing list. Anyone who failed to get his mailing list back off old invoices will probably make about thirty or forty thousand pounds less between now and Christmas-which is punishment enough for not following my late '64 orders where the job was skimped. I see two orgs that are limping also have a very small mailing list. Any connection? Rush the project ordered in '64 wherein you culled your addresses back from old invoices and you'll have lots of people and money again. Scientologists never get truly lost. 133 Then get onto Book Promotion, put a return self-address card for "more info" in the back of every book you sell and get your list up both from the book sale and the card. Omitted that? Look over the earlier 1965 Policy Letters that define promotion. That's all it is. But promotion is successful when you use books to front for you and a flop when you don't. If you think promotion is costly it's because the money isn't invested in getting books sold. Books are your first line of promotion. Re-organize your book department if it doesn't slam back a book at every orderer within 24 hours of the receipt of the order. Why be poor all the time? 1. Place ads. 2. Get mailing lists from anywhere. 3. Get mailing lists by selling books. 4. Sell more books to them. 5. Have good processing available for them and say so loudly. 6. Have good training available for them and say so loudly. Do just those things and do only those things and you'll be 10 times your size with a lot more pay. It's very easy. Why keep doing it the hard way? I'm interested in review that only those orgs are poor which haven't been following my direct orders. Well, anybody has a right to be poor, I suppose, if he has an appetite for it. Personally I don't care for it. It must be a carefully acquired taste. As a brand new idea in those orgs that are struggling, why not get rich by doing what Ron says? L. RON HUBBARD LRH:jw.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED [Important. See also HCO P/L 18 April 1965, page 93.] 134 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 15 MARCH 1968 Remimeo STUDENTS: STUDENT & STAFF PROGRAM Students will now have an opportunity to earn free Level Courses. Any student who is presently on a Level Course and brings in 5 students for HAS or above may have his next Theory or Practical Course free. He may do this as often as he likes. This offer only applies to students actually on a Levels Course (HRS to HAA), now or in the future (in other words, this does not just apply to those presently on a course, but to future enrollees as well). The award is given for actual people brought in who signed up and paid. Five HAS courses sold should equal the cost of a Levels Course. If it does not in your Org, then change the number of people the student must bring in until it does. STAFF: If RAP finds a student who shows himself to be intelligent and responsible (up stat) or an untrained or partially trained staff member who has the same indicators, RAP may offer that person his or her Levels up to and including HAA free of charge in return for a one year contract. The contract is specifically for auditing - we want trained and experienced auditors from this. We want them in the Tech division or in Qual. The contract commences after the training has been completed. Later, the staff member may be offered his Class VI or VII in return for a 2 1/2 year contract. This contract would include getting his Power free. This contract requires him to be Staff Status II. Inter Org arrangements and agreements re awards will have to be made between those concerned. The outer Org would pay unless specifically awarded by the Guardian, or unless it fell in to some other award system. These programs are designed to increase Org flow, speed movement upwards, expand staffs, and increase the number of trained auditors in the world. We are beginning to have much larger flows and must get trained staff quickly to handle it. LRH:jc.cden Copyright (c) 1968 by L. Ron Hubbard ALL RIGHTS RESERVED Lt. Fred Payer Sea Org Approved by - L. RON HUBBARD Founder [This policy was cancelled by LRH in HCO P/L 27 September 1970, issue II, Volume 3-page 136, being in direct violation of HCO P/L 27 April 1965, issue II, Price Engram. Volume 3 - page 91; which forbids cutatives in prices as damaging to expansion.] 135 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 27 SEPTEMBER 1970 Issue II Remimeo CANCELLATION HCO Policy Letter of 15 March 1968 "Student and Staff Program" which advises many give aways, issued by Fred Payer, is cancelled. It is in direct violation of HCO P/L 27 April AD 15 Issue II "Organizational Price Engram" which forbids cutatives in prices as damaging to expansion. Covert Price Cuts by orgs are directly responsible for low staff pay. L. RON HUBBARD Founder LRH:sb.ka.rd Copyright (c) 1970 by L. Ron Hubbard ALL RIGHTS RESERVED 136 HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W. 1 HCO POLICY LETTER OF 27 APRIL 1959 WHY NEW BOOKS ARE FEW The income I am supposed to derive from Scientology should pay for research, investigation, my promotional time, the writing of books and my living expenses. At present it does not. We are short of new books because I haven't had the time or the place to write them and do not even have a transcription secretary. Clear results were delayed and released incomplete because research funds were missing and I had to do it all on the cuff. I couldn't pay auditors to assist me. Right now I am buying a home in England which will be a research centre and am faced with getting another house in the U.S. soon. Basically the 10% paid as royalty by Central Orgs is looked on as my income. It is not income. It pays for HCO personnel in most places who are more and more doing the administrative and promotional work vital to keep the lines flowing. HCO is worth, in income to Central Orgs an enormous amount just for these things. I have a need for help here. Research and writing, on which we exist, is not being paid for. Therefore it is very hard for me to get it done. It would not be unusual for 10% to be paid for these two items. On the contrary. But the 10% is absorbed in paying for administration-and vital administration it is! Magazines, promotion, organizational data, to name a few, come under the 10%. We are in for a boom. You may not see it in your area yet but HAS Co-audit well run has begun the project "Clear Earth". HGCs have already begun Theta Clearing. And hotter stuff is to come But unless I can up my income for writing, research and living, we are somewhat slowed down. My program has gone as far as this: I have bought, with my own money and whatever I could gather, a place in Sussex that's quiet enough and remote enough for research and in which I can get lost enough to write. I emptied out all my loose cash, sold my boats and made my credit creak but we have a writing and research centre for the U.K. The place belonged to an important person and is itself more or less self supporting as to upkeep. I want to get a research centre for the U.S., equally remote and later on for each continent. In such places research records can be safe and the kind of research which now has to be done can be done. This will take several years. I am perfectly willing to do and finance any and all of this out of my 10% royalties from Central Orgs. If HCO personnel can be paid out of Congresses, books, tapes, records and memberships, if certain HCO services can be nominally charged for, and if Central Orgs can help out by paying HCOs where needed, then I can get every one into a position through writing, research and planning to take all the strain off by increasing book sale volume and general volume. Right now we are doing things a bit backwards. I am having to bolster and plan to keep things afloat without the whereabouts or wherewithal to do the writing and research that will make floating easy. 137 HCO is vital to keep us going. So is writing and research. I am truly and honestly concerned with all our incomes and work ceaselessly in an effort to raise yours. Only recently did I realize that I was having a hard time raising yours because my own income was too low, despite the overall high current and steadily increasing income of Scientology, to pay for the things I have always paid for from any income or money I received - research and writing. In establishing HAS Co-audit in London I found ads to be fabulously expensive. I realized suddenly that I could get plenty of press with books and book reviews. I abruptly cognited that "Have You Lived Before this Life?" was our first new book in two years. And "All About Radiation" was our first new book for two years. As we did in AAR, we sell from 6,000 to 9,000 new books worldwide, every new one I write The market we have is steady. Only old books reprinted cost heavily. New books get their cost out in about 80 days and make us thousands in friends and money. Our book market would take a new book every six months. These, sent to reviewers widely in every area would give us plenty of press. And we'd have data in usable form. And 9 to 25 people read every book printed! HCO has taken off a heavy administrative burden to a great extent, freeing the time. This leaves lacking (1) Finance for research (testing and leg work), (2) A place I can do research and do the actual writing, (3) Book transcription. If we want a boom, it's vital to free the income needed to create it. And this will up all our incomes, as well as get the job done. My book schedule is now 1. Have You Lived Before this Life? (I rewrote it in the last 2 weeks amongst doing the new HCA/HPA series. It's now at the printers.) 2. The Elements of Scientology. (Needed as the new course book to fit with the tapes. It's partially compiled-has been for a year and a half but needs complete redoing.) 3. The Criminal Mind. (To give us a whole prison clearing program.) 4. The Mentally Retarded Child. (The text for the Society for Mentally Retarded Children program we are now piloting in the U.K.) 5. Great Men of the Mind. (The biographies of mental healers, a missing text in psychology courses in universities.) You maybe sometimes wonder why I don't write more new books. For a research confirmation, to whom do I say "Audit Bill on so and so" (HGC processes are too stable now for research). To whom do I say, "Run down to the local library and find out...". Whom do I pull off post and say "Type up these 80,000 words of dictation tapes I've done?" Why me, of course. And I just can't get it all in. So - no new books. But 10% devoted to these and the cash I need can do it easily. Any comment or suggestion any secretary or executive in Central Orgs would care to make would be very welcome. I would find your views very helpful. P.S. Only the F.C.D.C. bears the cost and more of writing and research at this time. P.P.S. You didn't realize I too had problems, did you? LRH:cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 138 Best, L. RON HUBBARD HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W.1 HCO POLICY LETTER OF 21 MAY 1959 (Convert to Sec ED) HCO MONIES AND BOOK STOCKS Effective now. All monies received by reason of book sales, ACCs, Congresses, tapes, records and memberships shall be invoiced to the credit of and deposited in the accounts of the Hubbard Communications Office. All book printing, bills for tapes, records, Congresses but not magazine printing or postage costs, shall be paid by HCO save only where Central Organizations need tapes, etc., which they then buy from HCO. All book stocks are now the property of HCO and Central Organizations obtain books at 50% discount. Exception: The sums advanced by Central Organizations for copies of "Have You Lived Before This Life?" to HASI London, will be credited to them and all sales of this book will be paid into Central Organizations, not HCOs until Jan 1, 1960. L. RON HUBBARD LRH:mp.cden 139 HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W. 1 HCO POLICY LETTER OF 28 MAY 1959 Central Convert to Sec ED PROMOTIONAL WRITING FUND Pursuant to the HCO Policy Letter of April 27, 1959, it is now generally agreed that the suggestion of Jack Parkhouse is best. He suggested that instead of 20% or 15% of the proportional income going into the Building Fund of each Central Organization that 15% or 10% be so deposited and the other 5% be made available to me for promotional writing. This 5% of the proportional income would then immediately be applied to the expenses mentioned in HCO Pol Ltr of April 27. Any part of the regular HCO 10% would be applied directly to research expenses. However, New Zealand and others suggest 121/2 percent. Let us do it this way. We make it 8% now and drop it to five when our income is all brought up by all our actions and my promotional writing. All Assoc Secs should get the immediate opinion of staff and if favourable should then at once begin the regular, routine weekly transfer of 8% of the proportional income to "Special Fund HCO WW, National Provincial Bank Ltd., 6 Fitzroy Sq. London, W. 1 " and delete the sum from the Building Fund. It should be clearly understood that this money and any funds that can be salvaged from the HCO 10% (which is spent locally in most Central Organizations) will help pay the expenses of the new promotional writing and research centre, located at Saint Hill, East Grinstead, Sussex. If this money can assist promotional writing, we will all experience an increase in income since it is promotional writing that carries most of the public interest and I am currently too pressed by other thongs to do it to an adequate extent. We can continue with other financing plans for research, many of which are quite good. I have been paying for and shoe-stringing research for so long that an enormous backlog has developed needful to be done now to advance the whole picture of Scientology. So if we can get this 8% coming in very soon, and gather up what HCO cash is about and send it in we can get both promotional writing and research going with attendant rise in income everywhere. L. RON HUBBARD LRH:mp.cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 140 HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W. 1 HCO POLICY LETTER OF 9 JUNE 1959 HCO SPECIAL FUND Scientology Research and Investigation Fund is the name of the HCO Special Fund to which the following monies should be transferred: 1. All sterling area HCO 10%s except where needed for office and salary expenses to finish out CBM deficiencies. 2. All HASI and other Central Organization 8%s. The only exceptions are the 10%s from US organizations which go to LRH Founder personally. This means that all HCO surpluses anywhere above immediate office needs should be now transferred routinely to HCO WW Research and Investigation Fund as well as all Central Organizations' 8%5. L. RON HUBBARD LRH:gh.pm.cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 141 HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W.1 HCO POLICY LETTER OF 24 JUNE 1959 All Franchise Holders in US All HCO STATUS OF HCO OFFICES AND HCO SECS AND HCO VOLUNTEER SECS IN US The status and duties of HCO Secs and HCO Volunteer Secs in the US are not changed by the fact of HCO WW mailing bulletins to HCO Franchise holders except as follows: There is no need to duplicate the mailing by sending HCO WW bulletins again to HCO Franchise holders. However, special bulletins from US HCO offices will still be sent to Franchise holders by HCO Secs and Volunteer Secs as appears needful. They themselves can author needful bulletins or add data from bulletins not mailed by HCO WW to Franchise holders but mailed to HCO offices only by HCO WW. There will be no need to collect money directly as all 10%s will be sent direct by the Franchise holder to HCO WW and all accounting will be done by HCO WW. However there will be many collection items (delinquent payments, checking income, etc) that will be handled by US HCO Secs and Volunteer Secs as requested by HCO WW. The US HCO offices are still in the financial picture but relieved of funds handling and accounting. Funds for HCO office operation in the US where very dependent upon the 10%s from the Franchises, should be solved by giving Congresses, tape plays for charge, book sales, and the revenue of a model HAS Co-audit Course. Relieved of mimeographing, mailing and invoicing, the HCO Secs in the US can devote time to personal service for Franchise holders, and more vitally, promotion. We are now looking at HCO Secs US for front line promotion and keeping Franchise holders in line on ethical and technical standards. Central Orgs in DC and LA and HCO Area offices are in no way changed in their contracts and relations with HCO WW by reason of this change of handling Franchise holders. Where financial duress is created for HCO Secs by this by-pass of the ten percents, HCO WW will handle the situation on an individual basis. However, tapes, congresses, books and other means are looked to to support HCO offices not attached to Central Orgs. The collection arrangements to HCO WW are after all only temporary to get the show rolling and HCO US organized meanwhile to cope. L. RON HUBBARD LRH:mp.aap Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 142 HUBBARD COMMUNICATIONS OFFICE 37 Fitzroy Street, London W. l HCO POLICY LETTER OF 22 JULY 1959 (Reissued from Washington DC) CenO MONIES INTENDED FOR SCIENTOLOGY RESEARCH AND INVESTIGATION FUND The following type monies are deposited to Scientology Research and Investigation Fund-therefore, the checks should be made out not to L. Ron Hubbard or HCO, but to "Scientology Research and Investigation Fund" and sent directly to HCO WW, Saint Hill, East Grinstead, Sussex, England: 1. Any Central Organisation 8% checks (such as Founding Church, Washington DC- 8% is deducted weekly specifically for this Fund). 2. Any HCO 10%s. 3. Any 10% monies from Franchised Auditors. LRH:hlc:gh.rd Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED Mildred Galusha for L. RON HUBBARD HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 25 JULY 1959 CenO MEMBERSHIP MONIES No monies received for memberships in HASI U.S. or HASI U.K. may be used for proportionate pay but must be kept in a sealed account. LRH:brb.cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 143 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East, Grinstead, Sussex HCO POLICY LETTER OF 10 AUGUST 1959 To All US and UK Franchise Holders This Policy Letter cancels all previous Policy Letters which you might have received referring to your gross weekly income from Scientology and Dianetics. All 10%s are to be sent to HCO WW Saint Hill Manor, East Grinstead, Sussex. This is directly to Ron and HCO WW who need your 10%s to disseminate Scientology in the field for you. Do not send any 10%s to your Central Organization-send all 10%s to HCO WW, Saint Hill, East Grinstead. HCO Secretary WW for L. RON HUBBARD NW:brb.rd Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 144 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 24 AUGUST 1959 All HCO Offices and Assoc Secs HCO FINANCIAL ARRANGEMENTS ALTERED Effective on receipt to the nearest prop income Thursday, the following financial arrangements will be in effect. On all new franchises including those now being drafted for Central Organizations, and all permanent franchises, any office which has the personal services of an Area HCO office shall pay 15% of its gross income and no other sums to HCO. (It is now 18%.) This will be apportioned as follows: 5% will be held by the area office for its own payroll and expenses. This 5% as a separate cheque shall be deposited to the local HCO Acct and will have as its signatories, L. Ron Hubbard, Mary Sue Hubbard, and the HCO Secretary in that area. To this same account will be added, books, tapes, special events and any other sums. The other 10% will be transferred directly as royalties from the organization or franchise holder as a royalty payment to HCO WW, Barclays Bank, East Grinstead, Sussex and the transfer will be weekly. If any franchise holder is granted the presence and majority service of an HCO Office his franchise payment shall be increased to 15%. If he has no HCO local office, he may not train above the level of HAS as the professional course could not be properly certified examined and assisted. In the case of an HCO City Secretary devoting full time to HCO duties, it is necessary to attach the office of HCO to the largest franchise holder in the city and increase the franchise payment from 10% to 15% and handle the matter as above. This applies worldwide. All transfers of funds and arrangements of these matters is the responsibility of the Treasurer of HCO, Mary Sue Hubbard, and the HCO Area Secretary in the organization involved. I feel these are fairer terms All Central Organizations should return to 50% of their prop income for their salary sum and HCO should now pay its own personnel. Responsibility for solvency of any HCO Area Office now rests wholly with the HCO Area Secretary. HCO AREA EXISTING ACCOUNTS All HCO Area Accounts balances not due on immediate HCO Area bills should be forwarded at once as collected royalties to HCO WW, HCO Sec This means send HCO WW your full account balance as of effective date. EXISTING DEBTS NOT ALTERED This arrangement does not in any way alter existing debts to HCO. These should be computed and collected at once and forwarded to HCO WW as soon as possible. COLLECTIONS FROM STERLING AREAS Regular royalty payments have been found to be feasible to obtain government permits for. 145 However, if this is found completely impossible the HCO Area Secretary is authorised to employ a shares broker to regularly buy bonds for shipment to England which can be sold for a similar price in London, providing this is not specifically legislated against by the government. COMMUNICATION EXPENSES Central Organizations or franchise holders are to bear communication costs in their own areas for HCO. HCO WW will in its turn pay its costs of communications to HCO office and Central Organizations. Any Telex installations and costs are included in this arrangement. LRH FOUNDER CHEQUES L. RON HUBBARD All cheques for LRH Founder 10% including U.S. organization cheques for LRH are now to be made out to "Hubbard Communications Office Royalties", instead and mailed to HCO WW. CHEQUES DESIGNATIONS All cheques, regardless of for what, are to be made out to Hubbard Communications Office. They can be further designated, "Royalty 10%" or "Area Office 5%" or "Book Refund" or whatever. But Payee in all cases is: Hubbard Communications Office. Any cheque to be signed as a disbursement by an HCO Office anywhere must be entered first on a disbursement voucher machine (exactly like an invoice machine except it says "Disbursement Voucher With the Compliments of the Hubbard Communications Office" instead of "Invoice". Any cheque made out by an HCO office may be signed only as follows: Hubbard Communications Office by L. Ron Hubbard Hubbard Communications Office by Mary Sue Hubbard or: Hubbard Communications Office (signature of HCO Secretary) by the Authority of L. Ron Hubbard No other types or styles of signature will be permitted. HCO ACCOUNT SIGNATORIES withdrawal: All HCO Bank Accounts must carry each of the following signatures for any L. Ron Hubbard - singly. Mary Sue Hubbard - singly. HCO Area Sec singly or with another. LRH:cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 146 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 3 SEPTEMBER 1959 Ltd HCO Offices HCO BOOK ACCOUNT On receipt of this Policy Letter, HCO Secretaries everywhere are to make arrangements to open a new account in the HCO Account called the "HCO Book Account". In this account must be placed all monies obtained from the sale of books and tapes. This will enable us to see at a glance what sums are available for the printing of new books. Hitherto this money has apparently often been swallowed up in running expenses. From time to time surpluses will be used for printing new books and other promotional projects, both local and worldwide. The Account should have the same signatories as the regular HCO Account. PH:brb.rd Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO BULLETIN OF 9 SEPTEMBER 1959 CenOCon CBMT ACCOUNT Peter Hemery HCO Communicator WW [This P/L was also reissued from Washington as HCO B 9 September 1959.] NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH NOT GREEN ON WHITE It has been stated in the past that all Sterling area HCO offices would pay London and any other bills on the Central Organizational's CBMT account, in return for receiving all book stocks of the Central Organization. However, Jack Parkhouse has suggested a more equitable solution to this situation and his suggestion has been passed by Executive Director. All HCO Sterling Area offices will now submit a report to each Central Organization of the total stocks which it received from the Central Organization and the pound value of such stocks based upon the prices which were charged by London to the Central Organization. The Central Organization shall then do an accounting of how much was owed on by the CBMT account to London and to other firms up until the time HCO took over the book stocks. The two amounts obtained from doing the above shall then be subtracted one from the other. HCO shall be responsible for paying to London that portion which represents the amount of the book stock it received and the Central Organization shall be responsible for paying the remaining amount. Have this done as soon as possible and submit an accounting of this to the Treasurer, WW. In the meantime, the Central Organization and HCO shall send weekly payments on amounts owed to London to HCO, WW. We would like to clear these debts up as rapidly as possible. MSH:iet.rd Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED MARY SUE HUBBARD HCO Treasurer WW 147 HUBBARD COMMUNICATIONS OFFICE 23 Hancock Street, Joubert Park, Johannesburg (Issued Saint Hill) HCO POLICY LETTER OF 14 OCTOBER 1959 HCO Offices only plus Vol Secs DIVISION OF HCO PERCENTAGE REVISED (Cancels earlier directives on this subject) In order to assist offices in giving service to Franchise Holders, the following arrangements are now finalized on franchise monies. America There is no HCO Continental Secretary or Office, U.S., except in Sussex, England. Therefore the full 10% of HCO Franchise monies is to continue to be sent to HCO Sthil. Where an Area, City or Vol HCO Office exists, arrangements must be made, in finalizing franchises particularly, to receive another 5% of the Building Fund of any franchise holder nearby to support that Area, City or Volunteer Office. Provision will be made for this in awarding permanent franchises. Local arrangement can predate final franchise. United Kingdom America. As the U.K. Continental Office is at Sthil. the same arrangements apply as for South Africa, Australia and New Zealand As these areas have Continental HCO Offices, the following arrangements should be put in force the nearest Friday to the date of receipt of this letter, but in no case later than Nov. 1, 1959. The Continental Office of S. Africa, Australia or New Zealand collects 100% and retains 66.2/3rd of ail franchise 10%s. The remaining 33-1/3rd is to be sent to HCO WW. This is arranged because the burden of franchise management falls on the Continental Offices in the mentioned areas. When a franchise is finalized, as in the case of Central Orgs, they will have to have Area HCO Offices. A permanent franchise holder is to pay 10% of his gross and 5% as in Central Orgs for his privileges, which will include training. The 5% is to remain with his Area Office along with book sales, etc. When a franchise is made permanent, 5% of the gross 10% is to be retained by the Continental Offices in S. Africa, Australia and New Zealand, and the other half of the 10% is to be sent to HCO WW. 148 This arrangement will continue with permanent franchise holders until such time as they are surviving well as permanent franchise holders, at which time they will assume the same percentile plans as is in force at Central Orgs at that time. PERMANENCY DECLARATIONS All permanent franchise awards are made by HCO WW only, therefore the financial arrangements of interim franchise holders are in force in the case of each holder until a permanent franchise is awarded, at which time the above percentile arrangements for permanent holders will go into force for that awarded centre only. Central Org Percentiles The current percentile arrangement of Central Orgs with HCO are: - 10% of gross goes to HCO WW the same week as earned by the Central Org. 5% of the Building Fund to the HCO Area Office plus Book Sales, Special Events and ACC Collections. This is modified as follows for the Sterling Area only: In any week that the Central Org makes a gross in excess of œ1,000 the Continental HCO Office of that place receives 5% of that gross, HCO WW receives 5% of that gross, and the Area HCO Office receives 5% of the Building Fund as before. This arrangement will also go into force with permanent franchise holders at such time as they are sufficiently stable to warrant it, but will not be m force for another two years at least. Excess Funds All HCO Area, City and Continental excess funds should be forwarded to HCO WW for research. By Excess Funds is meant monies not immediately needed in running expenses and publication. L. RON HUBBARD LRH:dd.cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 149 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 29 OCTOBER 1959 CenOcon Assoc Secs HCO Secs Dir Ace INTERNATIONAL MEMBERSHIP International Membership money has been handed over to the HASI and should be entered into a special account from which all printing expenses on the Minor Magazine should be made. LIFETIME MEMBERSHIPS Lifetime Membership money is to be entered into a special account and is not to be touched at any time unless with direct consent or authorization of the Executive Director himself. HCO Secretary WW for L. RON HUBBARD LRH:js.rd Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 150 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 18 NOVEMBER 1959 CenOCon HCO CENTRAL ORG-FINANCIAL MODIFICATIONS On advices from HCOs the following financial modifications are made: The HCO of any Central Org will collect and bank any and all membership monies (but not lifetime members or shares money) received by any Central Org and will use this money to pay for the make-up, printing and postage of the monthly magazine, the Central Org furnishing addressing and enveloping services only. Further HCOs will cease on receipt of this letter to pay 10% of local HCO income to HCO WW. Central Orgs will continue to remit 10% of their gross income to HCO WW direct. Central Orgs will pay 5% of their Building Fund to the local HCO. All books will be sold by HCO (excepting American College, Perth, and Franchise Holders with no HCO). HCO will give a 20% discount to all members of whatever class on books, tapes, congresses and special events but the discount applies to cash sales only. Whole or partial credit sales carry no discount. A lifetime member or shares member may not be promised a magazine as part of his membership in any literature. A lifetime or shares member who also buys an annual membership gets an additional 10% discount on all books and tapes purchases and gets both magazines (Continental Monthly and PAB Monthly). This gives him a 30% discount on all book and tape record purchases. HCO receives therefore the whole of C.B.M.T., pays the whole of printing and posting (but not addressing) books, magazines and pays the whole of recording and selling tapes and pays for its supplies, desks, machines (but not address machines which must be owned and paid for by the Central Org); HCO pays for its personnel, (but not Sec ED) transport, legal fees, etc., but does not pay rent for offices contained in a Central Org's quarters, it being of value to Central Orgs to have HCO on the premises; HCO pays for any offices it rents outside Central Org premises. HCO Continental offices where they exist retain 66 2/3% of all Franchise Holder 10%s (not true of U.S. or U.K.) 33 1/3% of such money goes to HCO WW. Since HCO is a profit company unlike HASI its excess funds are quarterly sent to HCO WW for disposition. By excess is meant monies over and above all expenses and not to be used for local investment. L. RON HUBBARD LRH:js.cden Copyright (c) 1959 by L. Ron Hubbard ALL RIGHTS RESERVED 151 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 30 DECEMBER 1960 HCO Offices plus Vol Secs REVISION OF HCO PERCENTAGES (Cancels HCO Policy Letter of October 14, 1959) Because PE Foundation has proved successful and œ1,000 weeks will be more evident in the future, HCO Policy Letter of October 14th 1959, "Division of HCO Percentages Revised" is herewith cancelled and the usual percentages will go to HCO WW and the Area. LRH:js.des,cden Copyright (c) 1960 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 6 APRIL 1961 Central Orgs All HCOs City Offices WW Do not Remimeo REMITTANCE OF HCO MONIES TO HCO Due to the difficulty of collecting large sums of money from various Commonwealth countries, the policy of sending weekly to HCO WW the 10% of all book sales and 33 1/3% of all weekly Franchise income from the local HCO is re-instated. Monetary restrictions are more difficult on large sums of money than on regular payments of small sums of money; therefore, upon receipt of this Policy begin sending weekly to HCO WW the following: 1. The regular 10% of HASI's weekly income. 2. The 10% of all book, tape, records, Congress, Special Events, in other words, 10% of all its weekly income excepting its 5% income from the Central Organization, ACC income, and income from Franchise Holders. 3. The 33 1/3% of all weekly Franchise income. This applies to all HCO Offices throughout the world where applicable. LRH:jl.cden Copyright (c) 1961 by L. Ron Hubbard ALL RIGHTS RESERVED Mary Sue Hubbard Treasurer for L. RON HUBBARD 152 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 17 JULY 1962 Accts Depts HCO Secs Assoc Secs ACCOUNTS: BANK CHARGES ON REMITTANCES Orgs remitting 10%'s to WW by bank draft or credit transfer must bear the cost of transmission and any bank charges. E.G Melbourne's 10% for week = Australian œ100 - which is equivalent to œ80-British Sterling. Bank charges amount to œ1-British Sterling. WW must actually receive œ80 - and not œ79 (i.e. British Sterling equivalent less charges). WW must receive the exact equivalent of the Org's 10%, and not this amount less bank charges. This policy letter is effective on receipt and is not retroactive. Central Organizations routinely bear HCO's costs in postage, mailing, telex, telegraph, cable and equipment, and should bear as well, cost of transmission of funds as a routine administrative cost. Issued by: Mike Rigby. Director of Accounts WW for L. RON HUBBARD LRH:jw.cden Copyright (c) 1962 by L. Ron Hubbard ALL RIGHTS RESERVED 153 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 19 SEPTEMBER 1962 Assoc Secs HCO Secs Accts HCO WW FORM AC 1 HCO WW Form AC 1 is the only Proportionate Breakdown acceptable to HCO WW Accounts. No exceptions will be acceptable unless specific written instructions to the contrary are received by the Director of Accounts WW from the Treasurer WW and OK'd by either L. Ron Hubbard or Mary Sue Hubbard. So if you require an exception communicate direct RUSH to Treasurer WW. Commencing week ending 4th October 1962, HCO WW Form AC 1 (one sheet lightweight Pink Foolscap, green printing) will be the only acceptable form. This Form AC I is to be remitted direct to Accounts Department WW with cheque each week, plus a copy for LRH info Treas WW. LRH:gl.pm.rd Copyright (c) 1962 by L. Ron Hubbard ALL RIGHTS RESERVED Issued by: H.G. Parkhouse Treasurer WW Authorised by:L. RON HUBBARD HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 26 SEPTEMBER 1962 Assoc Secs HCO Secs Accts HCO WW FORM AC I (Changes HCO Pol Ltr of Sept 19, 1962) In accordance with HCO Policy Letter of September 26, 1962, entitled "Memberships", HCO WW Form AC 1 will be amended as follows: Line G. Delete Memberships. Beneath Line B write Line B1 Memberships. Line R. Change to read: Add B. B1, C and D, put total here and on the line to the side. (Put down twice.) LRH:lw.rd Copyright (c) 1962 by L. Ron Hubbard ALL RIGHTS RESERVED Issued by: H.G. Parkhouse Treasurer WW for L. RON HUBBARD 154 (Use Green Ink on light-weight pink paper) HCO WW FORM AC 1 (Org name) ...................(In Capitals) PROPORTIONATE INCOME BREAKDOWN WORK SHEET WEEK ENDING .................. I. A. GROSS INCOME ...............................Put down total. B. DONATIONS RECEIVED ..Put down total B1. MEMBERSHIPS .......Put down total C. RENT COLLECTED ......Put down total D. LOANS COLLECTED .....Put down total E. PHONE CALLS COLLECTED Put down total F. REFUNDS GIVEN .......Put down total G. Put down the total of all Congress, books, tape monies & special event monies if any were invoiced by Central Org for HCO ................ H. Put down total others ......................... ADD B. B1, C, D, E, F. G. H & put down total here & on the line to the side. (Put down twice) .......... J. CORRECTED GROSS INCOME. Subtract I from A & put down here ........................................ K. HCO WW 10%. Take 10% of J & put down here ................ L. PROPORTIONATE AMOUNT. Subtract K from J & put down here M. SALARY SUM 50% of L. Take 50% of L & put down here ....... N. DISBURSEMENT SUM. Take 30% of L & put down here ........ O. Add E & H & put total here & on the line E to the side (Put down twice) .......(c) ............ H- Total ... P. TOTAL DISBURSEMENT SUM. Add N & O & put total here .... Q. BUILDING SUM. Take 15% of L & put down here .............. R. Add B. B1, C & D, put total here & on the line ... B to the side. (Put down twice) ..B I C_ D Total .... S..............................................TOTAL BUILDING SUM. Add Q & R & put total here _ T. AREA HCO 5%. Take 5% of L & put down here .... U. Put G down here ............................ V. TOTAL SUM TO AREA HCO. Add T & U. put total here & on the line to the side. (Put down twice) .... BALANCE CHECK AA. Put down total Gross Income from line A ........... BB. Put down total refunds from line F .............. CC. Put down HCO WW 10% from line K ............. DD. Put down Salary Sum from line M ............... EE. Put down Total Disbursement Sum from line P ..... FF. Put down Total Building Sum from line S _ GG. Put down Total HCO Area Sum from line V _ HH. Add BB, CC, DD, EE, FF, GG & put total here & on the line to the side (Put down twice) _ II. Subtract HH from AA & put down here (There should be NO BALANCE) ............ SIGNATURE & TITLE ....................................... 155 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 26 SEPTEMBER 1962 HCO Secs Assoc Secs Accts Depts ACCs AND SPECIAL EVENTS COURSES All ACCs and Special Events Courses have been, and are currently, run under the auspices of HCOs. As of this date all monies received for such future Courses must be totalled on the last day of the Course and the running costs deducted; any excess of income will be dispatched to the "L. R. Hubbard Trustee Account". With regard to past and future ACCs and Special Events Courses, any and all payments received from this date forward from past and future ACCs and Special Events Courses will be paid in full to the "L. Ron Hubbard Trustee Account". This money will be remitted WEEKLY and on a SEPARATE cheque (not included with 10% etc). This ruling is made in agreement with the Copyright Holders of such Technology Tapes and Literature originated by L. Ron Hubbard for use in these Courses, in as much as that all ACCs and Special Events Courses shall be run on a non-profit basis and that any excess of income over Expenditure shall be deposited with the "L. Ron Hubbard Trustee Account". This account is a Trust Holding pending the formation of the Hubbard Scientology Research Foundation. Any accounts containing such monies shall now be closed and the balance sent to L. Ron Hubbard Trustee Account. Issued by: H.G. Parkhouse Treasurer WW for L. RON HUBBARD LRH:dr.cden Copyright (c) 1962 by L. Ron Hubbard ALL RIGHTS RESERVED 156 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 26 SEPTEMBER 1962 HCO Secs Assoc Secs Accts Depts MEMBERSHIPS As of the date above all Membership monies will be received by HASI, (this does not apply to Share monies) and shall be deposited in the Building Fund where it will be allowed to accumulate. Such money as is deposited may not be used without direct orders from L. Ron Hubbard or Mary Sue Hubbard. The costs of magazine mailings (i.e. Certainty, Ability, etc.) will be borne by HASI. LRH:jw.cden Copyright (c) 1962 by L. Ron Hubbard ALL RIGHTS RESERVED Issued by: H.G. Parkhouse Treasurer WW for L. RON HUBBARD [Important. See also HCO Policy Letter of 11 April 1963, Memberships, on page 252.] HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 26 SEPTEMBER 1962 CenOCon HUBBARD SCIENTOLOGY RESEARCH FOUNDATION This Foundation is to be formed with the purpose of receiving donations, gifts, dues, etc. and then disposing of such accumulated funds as grants, loans or gifts to further Scientology Research in accordance with its aims and purposes. Any monies remitted to this proposed Foundation pending its formation should be made payable to the "L. Ron Hubbard Trustee Account". H.G. Parkhouse Treasurer WW LRH:gl.rd Copyright (c) 1962 by L. Ron Hubbard ALL RIGHTS RESERVED for L. RON HUBBARD 157 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 1 FEBRUARY 1963 Central Orgs HCO Secs Assoc Secs HCO AREA 5%s (Cancels earlier directives) Effective immediately the payment of 5% of the corrected gross income by the Central Organisation or City Office to its attached HCO Area Office is cancelled. As a corollary to this, the HASI or FC will pay the salary (units) of its attached HCO Staff Members. For the present this will also apply to HCO Continental Offices. As a result of this, the area 5% sum is added to the Salary Sum which will now stand at 55% of the corrected Gross Income. An amended version of Form AC 1 is attached, the form of which should be introduced immediately in all orgs. All routine administrative expenses of an area HCO and-where applicable-a Continental HCO, must be borne by the Central Organisation to which the HCO is attached. This would include cost and maintenance of telex machines, telegraphic and telephone charges, postal and mail charges, etc. The services which HCO provide and maintain, such as the telex, are for the benefit of the Central Organisation and should therefore be paid for by the Central Org. Issued by: Mike Rigby Director of Accounts WW for L. RON HUBBARD Authorised by: L. RON HUBBARD LRH:jw.rd Copyright (c) 1963 by L. Ron Hubbard ALL RIGHTS RESERVED [Note: The error in the original mimeo issue Of Form AC1 opposite has been corrected per HCO P/L 6 February 1963, HCO Area 5%s.] 158 (Use Green Ink on light-weight pink paper) HCO WW FORM AC 1 (Org name) ................... PROPORTIONATE INCOME BREAKDOWN WORK SHEET WEEK ENDING .................. A. GROSS INCOME ........Put down total _ B. DONATIONS RECEIVED ..Put down total B1. MEMBERSHIPS ........Put down total C.......................RENT COLLECTED Put down total D.......................LOANS COLLECTED Put down total E.......................PHONE CALLS COLLECTED Put down total F.......................REFUNDS GIVEN Put down total G. Put down the total of all Congress, books, tape monies & special event monies if any were invoiced by Central Org for HCO ................ H. Put down total others ......................... I. ADD B. B1, C, D, E, F, G, H &putdown total here & on the line to the side. (Put down twice) .......... J. CORRECTED GROSS INCOME. Subtract I from A & put down here ............................ K..............................................HCO WW 10%. Take 10% of J & put down here L. PROPORTIONATE AMOUNT. Subtract K from J & put down here M. SALARY SUM 55% of L. Take 55% of L & put down here N. DISBURSEMENT SUM Take 30% of L & put down here O. Add E & H & put total here & on the line E to the side (Put down twice) ... ..........(In Capitals) ........... H Total .... P. TOTAL DISBURSEMENT SUM. Add N & O & put total here ..... Q. BUILDING SUM. Take 15% of L & put down here R. Add B. B1, C & D, put total here & on the line ... B to the side. (Put down twice) ..B I C D Total .... S. TOTAL BUILDING SUM. Add Q & R & put total here .......... T. SUM TO AREA HCO. Put G down here twice...... BALANCE CHECK AA. Put down total Gross income from line A .... - BB. Put down total refunds from line F .............. CC. Put down HCO WW 10% from line K ............. DD. Put down Salary Sum from line M ............... EE. Put down Total Disbursement Sum from line P ..... FF. Put down Total Building Sum from line S.......... GG. Put down Total HCO Area Sum from line I' ....... HH. Add BB, CC, DD, EE, FF, GG & put total here & on the line to the side (Put down twice) ............. 11. Subtract HH from AA & put down here (There should be NO BALANCE) ........_ SIGNATURE & TITLE ........ HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 13 FEBRUARY 1963 Australia Only HCO Exec Sec ANZO HCO Sec Perth HCO Sec Sydney HCO 10%s DUE TO WW Effective immediately all HCO 10%s due to WW will be forwarded directly to WW accompanied by copies of the appropriate form AC42. These monies will not be sent to Melbourne HCO or to the HCO Secretary ANZO. They must be routed to the Director of Accounts WW. This directive applies particularly to HCO Perth and HCO Sydney. LRH:dr.cden Copyright (c) 1963 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 16 APRIL 1963 HCO Secs Assoc Secs Accts Depts REVISION OF CONGRESS PAYMENTS TO HCO WW The payment to HCO WW of 50% of Congress gross takings is cancelled. Instead a payment of 10% of the gross takings will be remitted to HCO WW. This will appear on the revised HCO Accounts Form AC.43, Section B - part 4. Personal Congresses given by L. Ron Hubbard are not included in this directive. LRH:gl.cden Copyright (c) 1963 by L. Ron Hubbard ALL RIGHTS RESERVED Issued by: M.R. Rigby Director of Accounts for L. RON HUBBARD Authorized by: L. RON HUBBARD 160 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 14 JANUARY 1964 CenOCon CONTINENTAL AND AREA HCO FINANCE POLICIES All HCO Area and other offices excepting only HCO WW and HCO Sthil should be on the following salary and expense arrangements. HCO Area and Continental personnel are paid from the Salary Sums of the Org to which attached. All HCO Area and Continental expenses are paid from the Disbursement Sum of the Org to which attached. There is no HCO Local 5% paid to Local HCO by the Org to which attached. HCO Area and Continental have no separate accounts system of their own. All their accounts are handled by the Org to which attached. Book Sales money and Special Events (such as Congress fees) are held and banked under the direction of the senior HCO official of the area to ensure that the Central Org does not use this money for operating expenses but for book, tape and film replacement and bills. The mailing costs, personnel handling such items and a quarters charge, as well as Congress costs, etc. may be deducted from book receipts by the Central Organization. Such receipts, books, tapes, film and special events must not be used for Central Org operating expenses as this would drastically reduce dissemination. Membership monies are also separately banked. The Salary Sum of Central Orgs has been increased to 55% to compensate paying HCO staff All magazine costs and mailings are paid for by the Central Organization. An additional 5% of the receipts of an organization is contemplated as payable to HCO (WW) Ltd. for administrative expenses now that HCO (WW) Ltd. is a separate corporation. Heretofore I have financed HCO WW's costs out of my 10% and own income. This 10% is desperately needed to help defray research costs and although still submitted as Administration Expenses will be used in research. I am engaged in the compilation, recording and preparation of the whole of Scientology, the most expensive step. Heretofore I have borne research costs out of income intended for me personally. I no longer choose to do so as the most expensive research step is just ahead of us - writing it all up and publishing it, a step which is the most expensive of all. Therefore, financial reorganization is in order if we ever are to have all the data of Scientology in an organized codified and published state. L. RON HUBBARD LRH:gl.rd Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED 161 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 30 NOVEMBER 1964 Gen Non-Remimeo HCO BOOK ACCOUNT The handling of this account is of considerable interest in view of new membership and book ad policies. As all corporations are now HASI, Inc of DC except in the US where they are churches, all HCO Book Accounts are of course under the same corporate name as the main organization. Thus even a church organization holds the HCO account in its own name. For example: the Melbourne HCO Book Account would be called at the bank HASI, INC HCO DIV ACCOUNT. For a Church, this would be FCDC HCO DIV ACCOUNT. "Div" of course stands for DIVISION. The signatories of the account should be the HCO Area Sec and one other officer, not the Assn/Org Sec. and each cheque should bear two signatures to be valid. Three persons, the HCO Area Sec. and two others may be named of which any two out of the three signatures can be valid. The account also carries as a signature my own name, that of Mary Sue Hubbard as Secretary and of Marilynn Routsong as Treasurer, any one of these three signatures being valid to withdraw. The account is handled by the regular Accounts Unit of the organization, not by a separate system in HCO. Invoicing to the HCO Account is, however, done on a separate invoice machine in the Accounts Unit. On this machine no other than HCO funds are invoiced. All membership receipts for Associate (5 shillings or $1), international and Lifetime Memberships are invoiced only on this machine. All book, tape, meter and insignia sales are invoiced on this machine. All Congress and tape play receipts are invoiced on this machine. There is also a separate disbursement voucher machine and all disbursements from the HCO Div Acct are disbursed only with a voucher from the disbursement machine. Even when a cheque on the account is written a disbursement voucher is also written. If the voucher has on it a printed "HCO Division of HASI, Inc. With Our Compliments" no transmission letter is needed with the cheque as the data of what is being paid is on the voucher. Thus Accounts does not need an additional letter to go with a cheque. An office which is too small to afford two invoice machines can do as well with a Sales Book for Income and a Disbursement Book for disbursements, such as they have in Department Stores, providing the books give adequate carbons and are used consecutively (one book completed before another is started). These books can also be printed and have carbon pages. One copy remains in the book and when finished that book becomes part of accounts records. You must be very careful in Invoicing and properly depositing membership funds particularly as many states and countries have regulations concerning such records of membership 162 No books may be invoiced to the Central Org or City Office general accounts for any reason. All book sales are invoiced only to the HCO Div Acct. In some orgs, reception does all invoicing. When this is done, the same procedure applies, and the same invoice machines or books are used, but the disbursement machine or book is kept by the Accounts Unit. No wages of any kind may be paid from the book account. The only postage which may be paid from the account is book or magazine postage. No correspondence postage may be paid from the account. No rent may be paid from the account. No loans may be made from the account. Book and tape purchases may be made from the account. Magazine printing and postage bills may be paid from the account, but no extravagant increases in printing quality or volume may be paid from it, nor may brochures or mailings announcing service be paid from it. Further, magazine bills for magazines which do not have half their advertising space taken up with book and membership ads may not be paid from the account. The organization pays any salaries or space rental connected with books or tape handling. Congress hall space may, however, be paid from the account. The above arrangement is equitable to the organization in that it receives without further cost to it all its training and processing ads in magazines and, the full benefit of the increased business. Advertising fees may be paid from the HCO Div Acct but only for book ads. No general advertising of the org may be paid for from the account. No personnel ads or PE ads may be paid from the account or be included in ad coverage contracts. No advisory fees may be paid to advertising firms from the account. In handling this account, great care must be taken to buy enough book stock so as to have stock available to mail in response to ads. Air freight of books is very dear from Saint Hill or Washington to Commonwealth countries and books must be ordered in time to arrive surface and pass through local customs. No office should ever seek to enter books or meters into its country free of charge on grounds of "educational" or "religious" materials, as there is no surer way to stop receipt of books. Some book departments are mad on the subject of "getting it in for free" and will doodle about for months, wasting ten times the price of the duty in lost book sales. The department seldom tells the Org/Assn Sec or the HCO Sec why the books aren't being let in. Customs is fast so long as you pay duty. Local reprintings of books are now forbidden. New Zealand only is excepted from this but New Zealand may now not export books to other offices. The HCO Div Acct should be opened at once and should be the only HCO Account operating in Central Orgs or City Offices. L. RON HUBBARD LRH:jw.cden Copyright (c) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED 163 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 20 JANUARY 1965 General Non-Remimeo Sthil Executives Franchise FINANCE CURRENCY REGULATIONS AND 10%s It should be brought to notice that an old policy regarding currency regulations is in force. When organizations such as New Zealand, or Franchise holders in currency restricted areas, are prohibited from paying 10% of their gross income to Saint Hill for their administrative expenses and services, the following procedure must be followed: A bank account in the name of the International Organization to be called the HASI International Administrative Account must be opened in the local area of the Org or Franchise Holder. Into this account must be deposited weekly 10% of the past week's gross income from Scientology. TAX PICTURE Once paid into the account, sums in it are the property and responsibility of the International Board and are an expenditure for administrative purposes by the local org or Franchise holder. These sums cease to be part of the local org's tax picture as they are owed abroad and are accounted for abroad by the international Board in its own returns in its area. The deposit slip must be sent to Saint Hill along with the weekly report. SIGNATORIES International Board Members, the Chairman, the Secretary and Treasurer, each one singly, are the only allowed signatories for the account There may be, of course, local paying in or endorsement signatures on the account. STARTING AN ACCOUNT To start such an account it is only necessary to obtain the usual blank forms and cards from a nearby bank and airmail them to Saint Hill for signature and return to the bank. Saint Hill gets these papers signed and airmails them to the designated bank and informs the org or Franchise holder of the action. In returning the papers to the bank a cheque book is requested of the bank. This cheque book and copies of all papers become part of the Treasurer's files at Saint Hill. Deposit slips of monies paid into the account are handled as follows: An org's local Saint Hill Account deposit slip is given to the International Org Supervisor and is noted in that Org's files and is passed on to the Treasurer. Franchise holders' deposit slips into their local Saint Hill Account are sent to the Franchise Secretary, who notes them in the records of that Franchise holder and passes the slip on to the Treasurer. Neither slip is invoiced for Saint Hill accounting. Instead it is invoiced by the Treasurer. The Treasurer sends the white copy of an org to the International Org Sec. who sends it to the org, or to the Franchise Sec. who sends it to the Franchise holder. All deposit slips and other materials relating to the account are held by the Treasurer at Saint Hill. All bank statements for the Account go only to the Treasurer at Saint Hill. LRH:jw.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 164 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 11 MAY AD 15 Remimeo HCO BOOK ACCOUNT POLICY RECEIPT AND USE OF MEMBERSHIP MONIES 1. All membership monies shall be paid in to the HCO in the Area Office and deposited only and at once in the HCO Book Account, and shall serve, amongst other things, to defray magazine printing, handling and postage costs of the National magazine. All Memberships must be paid for in cash, (there are only Free Memberships, or Memberships paid for by cash) made out directly to HCO Book Account. Memberships shall be deposited only in the Main Book Account of the Area Office. The Continental Office may call on sums proportionate to the number of magazines (their cost of printing; handling and postage) mailed in the area of the HCO Area Office, but book ads saying books are available at the Area Office and the ads of the Area Office must be carried in the magazine. All sums additional to magazine cost in both the Area and Continental Office shall be used only to purchase more books, and tapes and to defray expenses of high quality facilities for tape playing and the expenses of Congresses. All Membership monies received by an Area Office, not called upon to defray magazine printing and postage may be retained in the Area Book Account. CONGRESS FEES 2. All Congress fees shall be received into the Area Book Account of the area where held. No Congress fees, membership fees, or book monies received may be used for the payment of units, rent (except for Congress Halls) or organization expenses. USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES 3. Congress, membership and book fees may be used for advertising Scientology books in magazines, but not for newspaper or magazine advertising of PEs, auditing or services. FURTHER USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES 4. Any further use or disposition of Congress fees, membership fees or book receipts shall be at the sole permission, personally signed, of the Executive Director. HCO BOOK ACCOUNT SIGNATORIES 5. The HCO Continental Sec and HCO Area Sec or where the HCO Continental Sec is also an Area Sec. by the HCO Continental Sec and the HCO Communicator jointly, or the single signatures of LRH and MSH are requisite on any Book Account cheque for it to be valid and all bank mandates for that account must so state and must include the signatures of LRH and MSH and Marilynn Routsong. BOOK PRICES 6. Book, tape and meter prices are not uniform, Continental Zone to Continental Zone. US and UK prices are on a parity of one pound equals three dollars for easy computation and to make up for exchange delays and fees. Other Continental Zone book prices are computed on the cost of books generally in the area plus handling and shipping charges. 165 These prices are published from time to time in "The Auditor". BOOK TEN PERCENTS 7. Washington and Saint Hill pay 10% of their gross book sales to the Research Fund Account of HCO WW, but only on books actually published and printing paid for by each area. If Washington publishes a book it pays 10% of the gross retail sales price as sold. If Saint Hill publishes a book it pays 10% of the gross retail sales price as sold. If Washington, for example, pays Saint Hill for a shipment of books and sells them from Washington, then Washington does not pay any 10% and vice versa. Although it is not policy at this time for other offices to reprint books, if one ever does get permission, it will also pay 10% to the Research Fund of HCO. WW. RESEARCH TEN PERCENTS OF GROSS INCOME 8. Central Orgs, City Offices and Franchise Holders contribute 10% of their gross weekly income to various expenses and usages at Saint Hill or to L. Ron Hubbard as Director of Research. But this 10% shall not include payments received for books by anyone. HCO AREA SEC BONUS 9. The HCO Area Sec is granted a bonus of 2 percent of the gross receipts of the local Book Account. ASSN SEC/ORG SEC BONUS 10. The Association/Organization Secretary is granted 2 percent of the gross receipts of the HCO Book Account but may not be a signatory to that account. HCO CONTINENTAL SEC BONUS 11. The HCO Continental Secretary is paid (c) of one percent of each Book Account in the Area, whether or not acting as an HCO Area Sec as well. CONTINENTAL DIRECTOR BONUS 12. The Continental Director is paid i/, of one percent of the gross receipts of each Book Account in his continent, when acting as an Assn/Org Sec or when not. MONTHLY PAYMENT OF BONUS 13. All such bonuses are payable monthly only, computed on the first of the month. NO ADVANCES OR LOANS FROM HCO BOOK ACCOUNT 14. No person may be paid such a bonus in advance nor may any loan be made to any person from any HCO Book Account. HCO BOOK ACCOUNT BONUS SUSPENSION 15. When a Book Account tends to become insolvent by reason of owing more than it receives, bonuses are suspended until the condition alters but in no event less than 60 days. REGULATIONS CONCERNING HCO BOOK ACCOUNT 16. Book, Congress, Tape and Membership income may not be used or loaned for any salary sum, expense sum, building fund or past bills of the organization as a whole, but past book and tape bills are an exception. 166 HCO CHECK BOOK TO SAINT HILL 17. All HCO Area Officers are to send a check book for the HCO Book Acct to Saint Hill, and to keep St Hill apprised of the balance in the account monthly, and also to inform St Hill of any large amounts written against the account locally. THE BOOM The whole forward thrust of any boom depends upon: 1. Getting books to orgs. 2. Heavily, even extravagantly, advertising books and filling the orders. 3. Courses in and running per Gradation Chart. 4. Running an excellent Academy. 5. Running an excellent HGC. Getting books to orgs depends on me, on Saint Hill and upon orgs making sure they're ordered and paid for. If we take care to do just those things we'll see (1) above hugely successful. It will cost the Assn/Org Sec and HCO Sec money personally not to plaster the place with book ads. They are given no bonus on a net. Only a gross. They get paid a bonus from the book account based on volume not its profit. The Department Heads and Staff get their bonus indirectly by an org driving in a heavy volume through ads and books and the alertness of the Org/Assn Sec and the HCO Sec. Continental also has a vested interest in books flowing and is paid for it. Thus this point is cared for. Advertising actions are arranged for in the above. Nobody expects magazines to cost any more than they have previously. Magazine cost and postage is dropped from org expenses. Note also that under this plan the most neglected action in producing income in any area, BOOK ADVERTISEMENT, the No. 1 magic formula of dissemination, is pushed into being by restricting the expenditure of memberships and other HCO Book Account monies until, to get rid of the surplus, book advertisements nationally and locally on a large scale would have to be placed constantly. With quantities of book ads, income from students and pcs as well as books will flood in. It always has. This is the basic formula of the coming boom. Because they cost the org money it could spend and "needed" elsewhere, the number of national magazines printed was curtailed and book ads were dropped out and that has been the chief cause of any financial difficulty in any org. As local offices and franchise centres become truly active, they will cease to drain off the old timers from the Central Org and stir up more local business of which the Central Org gets its part in courses and pcs. This all looks pretty favourable to me. I hope it does to you. LRH:wmc.rd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 167 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 9 DECEMBER 1965 Remimeo HCO INCOME MEMBERSHIPS - CONGRESSES - TAPE PLAYS Money received for Memberships, tape plays and Congresses goes into HCO Dissemination, Division 2, income and is deposited into the HCO Book Account. The use of these funds is outlined in HCO Policy Letter of May 11, 1965, "HCO Book Account Policy, Receipt and use of Membership Monies ". This income is not part of the gross Divisional statistic and is graphed on a separate graph. LRH:ep.kd Copyright (c) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD AFRICA ONLY Applies to Johannesburg Cape Town Durban Port Elizabeth Franchise Holders SA (Info Saint Hill) South Africa 10%s will not be forwarded straight to Saint Hill as from this date. Johannesburg, Cape Town, Durban, Port Elizabeth and Franchise Holders will forward their 10%s weekly to the LRH Communicator AFRICA where the 10%s will be invoiced and put into LRH No. 2 Account for "MISSION AFRICA". OFFICE OF LRH 27 Hancock Street, Joubert Park Johannesburg, South Africa HCO POLICY LETTER OF 26 APRIL 1966 SOUTH AFRICA 10%s (Effective at once) White Invoice will go to the Org concerned. Blue Invoice will go to Saint Hill. Yellow Invoice remains in the book. Pink Invoice to Org Exec Sec AFRICA. Org Exec Sec AFRICA will make out a deposit slip and bank the money. This invoice will then be filed in Continental files. This will be forwarded by LRH Communicator AFRICA to "MISSION FILES". Any funds so invoiced may be held by the LRH Comm AF in a Johannesburg account designated "HCO Mission Account". LRH:cden Copyright (c) 1966 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD 168 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 3 MAY 1966 Gen Non-Remimeo RESERVE FUND 1. Every Scientology organization must accumulate a GENERAL LIABILITY FUND The fund is to be built up against claims made against organizations or any Scientologist by the public or governments for legal costs, libel and slander costs, defence funds, destruction of repute and restraint of trade. Uninsured risks to buildings, lapsed insurance policies, acts of God, war, riot and civil disorder, usurpation of power, restraint of princes, radioactive fallout, atomic destruction, salvage of persons and property, reorganization costs due to departure or demise of founder. This fund is computed by taking the number of Scientologists on the mailing list and the value to each Scientologist is assigned at the manager's discretion. It is computed every year and added to the fund. Refuse to breakdown the calculations on how the fund is computed if demanded by an insurance inspector or tax collector, instead obtain an estimate of coverage cost from Mecca (Brokers) Ltd London, to confirm our cost assignment to fund. It should not be less than œ5/- /- per year per Scientologist on our list. This fund may be kept as a reserve. A special bank account must be opened to care for this fund called "The General Liability Fund" account to which is added the local name of the organization. The signatories on this account are the Board members of the controlling Scientology organization. Money is paid out of this fund only on claims and demands approved by the Board of Directors on subjects or requirements as covered in the description of the fund above. The Fund may be retrospective - which is to say calculated for former years. Income Tax reports should be refiled for the former years. L. RON HUBBARD LRH:lb-r.cden Copyright (c) 1966 by L. Ron Hubbard ALL RIGHTS RESERVED 169 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 6 OCTOBER 1966 Issue II Remimeo ADDITION TO HCO DIV ACCOUNT POLICY (Amplifies HCO Policy Letter of 11 May 1965) The HCO Div Account (Old Book Account) has very rigid policy on how its money can be spent. The reason for this is that money must be safeguarded to provide for adequate promotion and sale of books. BOOK SALES have always been your FIRST LINE OF DISSEMINATION and will always be so. Improper use of this money has resulted in depletion of the HCO Div Account in some orgs leaving insufficient funds to order adequate book stocks, print and mail the magazine and provide for other vital book promotion. Book promotion and book sales are an absolute must for the continued health of any org. The most important and successful dissemination line is book sales and about three months later the buyers come in for service. To cut this line by reducing book sales will seriously damage the org income three months later. NEW POLICY Because poor book sales could result in a collapse of the org and misappropriation of the HCO Div Account can make it impossible to buy and promote books, violation of HCO Div Account policy now becomes a HIGH CRIME. HCO Div Accounts are now to be monitored by WW. Each Org Exec Sec is to see that an exact accounting of the HCO Div Account expenditures and deposits with full information on who, what for, how much and when monies are paid into and out of the account are sent monthly to the ES Comm Treasury WW. Failure to comply with this order and other orders regarding bank mandates, sending of cheque books, etc., will result in immediate Ethics action being called for by ES Comm Treasury WW. POLICY ON USE OF THE HCO DIV ACCOUNT Following is an exact list of items that the HCO Div Account may be used for. No others are allowed: - 1. Books ordered from Saint Hill or DC (other orgs when and if allowed to print). 2. Meters and material for resale only ordered from Saint Hill or DC. 3. Authorized book printing, meter and material manufacture. 4. Books, meters and material packing, shipping costs. 5. Printing or ordering of books, meters and book flyers, and book promotion material. 6. Assist in defraying the costs of the printing and mailing of continental magazines. (This does not mean that the HCO Div Account is obligated to pay any amounts for such.) 7. Ads and promotion for books in newspapers and magazines. 170 8. Mailing list purchase and rental for book promotion purposes only. 9. Special book promotion projects other than the above. (Not usual, but possible if approved for project status by WW.) 10. Direct Congress expenses for items used specifically and only for a Congress. Examples: hall rental, sound equipment rental, program printing, advertising, ES Comm WW speaker fees to WW, hall decoration, visual aids, tape and film charges. 11. Printing membership cards, applications for memberships, and membership promotion expenses for the sale or renewal of memberships. 12. Tapes for org use. Examples of illegal uses of HCO Div Account monies in the past are: Staff member fares from Saint Hill, ES Comm Qual WW expenses and fares, Release pins and course certificates and flowers for staff members having babies. To be paid into the HCO Div Account are: 1. All receipts for books, meters and material sales, (called Gross Book Sales). 2. All membership fee receipts. 3. All Congress receipts. LRH:lb-r.cden Copyright (c) 1966 by L. Ron Hubbard ALL RIGHTS RESERVED L. RON HUBBARD Founder 171 HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 15 FEBRUARY 1967 Remimeo All Staff Treasury Hats ALLOCATION OF INCOME (Cancels HCO Pol Ltr 6 Feb '63, "HCO Area 5%'s") All orgs allocate their income as specified in this Policy Letter unless specifically exempted from doing so by The Guardian WW. (At present Saint Hill is the only org managed under different financial arrangements.) The basis of the proportionate income breakdown is only changed in that: 1. The allocation between Salary Sum, Disbursement Sum and Building Sum reverts to 50%, 35% and 15% respectively. 2. Minor changes have been made in the AC 1 report form to bring it into line with Policy changes since 1963. (Note - all additional information regarding the AC1 form must be written on a separate sheet and not on the form.) The increase in the Disbursement Sum from 30% to 35% of Corrected Gross Income has been found necessary to keep orgs solvent. As income expands, bills expand and if a sufficient proportion is not allotted to Disbursements, some bills cannot be paid, and debts accumulate. However, whatever the allocation to Disbursement Sum, IT IS THE PRIMARY RESPONSIBILITY OF FINANCIAL PLANNING TO SEE THAT THE TOTAL OF EXPENDITURE APPROVED IN ANY PERIOD IS LESS THAN THE FUNDS AVAILABLE FOR EXPENDITURE IN THAT PERIOD. This of course includes making allowances for routine expenditure on electricity, telephone, telex, postage, and other utilities; it is part of each staff member's hat to see that no wasteful use of such utilities occurs. In order to improve the Cash-Bills ratio of an org, the local Executive Council may propose on lines to the Executive Council WW a further change towards reducing the percentage of the Salary Sum, while increasing the Disbursement Sum percentage. It is expected that the better the ratio of Cash-Bills of an org and its solvency is permitted to develop, the more scope there will be for expansion as well as an increase of pay. This is with reference to HCO Policy Letter "Financial Planning" of 15 December 1966. And if anyone commits the org to expenditures that have not been approved, this must be immediately reported to the Ethics Officer, who must see that the org is reimbursed out of that person's own pocket. SALARY SUM The reduction of Salary Sum to 50% of the Corrected Gross Income should make no difference at all to staff member incomes. If the org is kept solvent by having funds to pay bills, Execs will be able to put their full attention on (1) making Scientology more widely known, (2) promotion to 172 Scientologists, and (3) excellent delivery; the more efficient and effective the org becomes, the greater the flow will become and the faster Org and staff pay will rise-provided the number on staff is not increased beyond what is necessary to handle the increased flow efficiently. NUMBER ON STAFF Too many people on staff in relation to the rate of delivery bogs an org down with Dev-T and poor rewards for good statistics. Too few people on staff in relation to the flow they have built up of services signed up results eventually in stagnation: the flow jams, efficiency falls off and the flow tends to dwindle and not increase, because THE FLOW OF PEOPLE DEMANDING SERVICES IS MONITORED SOLELY BY THE EXCELLENCE OF DELIVERY. Thus the optimum number on staff depends on the efforts of the whole org: THE OPTIMUM NUMBER ON STAFF IS WHEN EACH MEMBER OF TECH AND QUAL STAFF IS WORKING FLAT OUT AT HIGH EFFICIENCY AND THE TECH/ADMIN RATIO IS 1: 1. (Tech/Admin ratio = number in Tech & Qual: number in all other Divisions.) This does not mean that orgs must get rid of half their staff. It means that they must dismiss any deadwood (chronic low statistics personnel) and then get moving to increase the effectiveness of Distribution, Dissem, Tech, Qual, and all other org functions. Technology is firmly established, stable, and works when applied exactly. All that is needed for a fantastic boom is to get your job done well. Written by Ralph Pearcy, A/Div Org Treas WW George Galpin Dalene Regenass Brian Livingston Joan McNocher) Otto Roos Ken Delderfield Betty James Leon Steinberg ) Fred Hare ) Philip Quirino Mary Sue Hubbard The Guardian WW for L. RON HUBBARD Founder LRH:jp.rd Copyright (c) 1967 by L. Ron Hubbard ALL RIGHTS RESERVED 173 Qual Sec SH HCO Area Sec SH Chairman Ad Council SH Exec Council SH LRH Comm SH Chairman Ad Council WW Exec Council WW LRH Comm WW Div 3 WW Form AC 1 Pol Ltr 15 Feb 1967) Org PROPORTIONATE INCOME BREAKDOWN WORK SHEET FOR WEEK ENDING ........... Put down total A. GROSS INCOME B1. DONATIONS RECEIVED A1 . ADVANCE PYMTS B2. MEMBERSHIPS........._. REC'D C............................RENT COLLECTED A2. Subtract A1 from A. D............................LOANS COLLECTED... A3. ADV. PAYMENTS E............................PHONE CALLS USED ... COLLECTED ...............A4. ADD A3 to A2 F. REFUNDS GIVEN ..... FI. REPAYMENTS ....._ F2. FSM COMMISSIONS PAID ............... Put down the total of all Congresses, books, tape monies and special event monies if any were invoiced by the org for HCO ............ H. Put down total others .................... I. ADD B1, B2, C, D, E, F. F1, F2, G. H & put total here and in right-hand column (put down twice) .. J. CORRECTED GROSS INCOME Subtract I from A4 and put down here ...................... K. HCO WW 10% Take 10% of J and put down here ........... L. PROPORTIONATE AMOUNT Subtract K from J and put down here ............................... M. SALARY SUM: 50% of L Take 50% of L and put down here ... N. DISBURSEMENT SUM Take 35% of L and put down here .... O. Put down amount from line E Put down amount from line H ........... Add E and H and put total down twice ..... P. TOTAL DISBURSEMENT SUM Add N & O and put total here Q. BUILDING SUM Take 15% of L and put down here ......... R. Put down amount from line B I Put down amount from line C ........... Put down amount from line D ........... Add and put total down twice ........... S. TOTAL BUILDING SUM Add Q & R and put total here ...... T. SUM TO AREA HCO Put down amount from line G .............................. Put down amount from line B2 .......... Add G & B2 and put total down twice ..... BALANCE CHECK AA. Put down Gross Income corrected for Advance Payments from line A4 ................... BB. Put down Total Refunds from line F .......... CC. Put down Total Repayments from line F1 ...... DD. Put down FSM Commissions Paid from line F2 ... EE. Put down HCO WW 10% from line K .......... FF. Put down Salary Sum from line M ............ GG. Put down Total Disbursement Sum from line P ... HH. Put down Total Building Sum from line S ....... II. Put down Total HCO Area Sum from line T ..... JJ. Add BB, CC, DD, EE, FF, GG, HH & II and put down total here and at right-hand side ......... KK. SUBTRACT JJ from AA and put down here (there should be NO BALANCE) ........ ATTESTED BY 174 (Signature and Title) HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 15 MAY 1968 (Reissue and Amendment to HCO Policy Letter of 3 May 1966) Gen NonRemimeo RESERVE FUND 1. Every Scientology Organization must accumulate a GENERAL LIABILITY FUND. The fund is to be built up against claims made against organizations or any Scientologist by the public or governments for legal costs, libel and slander costs, defence funds, destruction of repute and restraint of trade. Uninsured risks to buildings, lapsed insurance policies, acts of God, war, riot and civil disorder, usurpation of power, restraint of princes, radioactive fallout, atomic destruction, salvage of persons and property, reorganization costs due to departure or demise of Founder. This fund is Computed by taking the number of Scientologists on the mailing list and the value to each Scientologist is assigned at the manager's discretion. It is computed every year and added to the fund. Refuse to breakdown the calculations on how the fund is computed if demanded by an insurance inspector or tax collector, instead obtain an estimate of coverage cost from brokers recommended and approved by Legal WW, to confirm our cost assignment to fund. It should not be less than œ5.0.0 per year per Scientologist on our list. This fund may be kept as a reserve. A special bank account must be opened to care for this fund called "The General Liability Fund" account to which is added the local name of the organization. The signatories on this account are the Guardian WW and the Treasurer WW, these being Mary Sue Hubbard and Denny Gogerly jointly. Money is paid out of this fund only on claims and demands approved by the Board of Directors on subjects or requirements as covered in the description of the fund above. The fund may be retrospective - which is to say calculated for former years. Income Tax reports should be refiled for the former years. LRH:js.rd Copyright (c) 1968 by L. Ron Hubbard ALL RIGHTS RESERVED Proposed by Lola Rossouw Denny Gogerly Kevin Kember Lenka Marinko Exec Council WW Allan Ferguson: O.E.S. WW Tony Dunleavy: P.E.S. WW Anne Tampion: D/HCO E.S. WW Ken Delderfield: LRH Comm WW Joan McNocher: D/Guardian WW : Treasury Liaison Off. WW : The Treasurer WW : Qual Sec WW : HCO Area Sec WW Mary Sue Hubbard The Guardian WW (Policy Review Section) for L. RON HUBBARD Founder 175