First Dianetics groups formed in Israel and New Zealand. (CofS)
In early 1952 Purcell and Hubbard split up. It was agreed that Hubbard would resign, sell his stock for a nominal figure to Purcell and set up an independent
Hubbard College in Wichita. (The
Sad Tale of Scientology, Eric Townsend, Chapt. 5, pg. 16)
The Hubbard College, the first organization established and controlled
by L. Ron Hubbard, founded in Wichita, Kansas to train Dianetics auditors.
(CofS)

Purcell and other members of the Dianetics board of directors
vote Hubbard out for gross mis-management.
(The Roots of Scientology)

LRH: Well, I slogged through the remainder of 1951 and eventually…I had no
control of these organizations at all and they, through mismanagement and so
forth by their existing Boards, they folded up and I went off down to Phoenix,
Arizona, and I started a Scientology organization.
The name of the earlier subject was Dianetics, and you will find that is
still in useful practice, but it was basically a healing subject. We got in bad
with the healing professions because the publisher and a medical doctor, not me,
said that any two people could use it and get well instantly, and it was Walter
Winchell no less who said it was a greater development than the wheel and arch.
That wasn't me. Now these people staring attributing these statements to me.
Well, I parted company with this field because I did not want to be mixed up
with a healing activity because this was a philosophic line of research and I
ran into Scientology and the basic subject from which Dianetics was derived, and
I went on with this development down in Phoenix, Arizona, and I got the earliest
Scientology Organization put together and I had control of that and it ran
pretty well, and it has been prospering ever since. (LRH Conference With The Investigators 17 August 1966)
Hubbard, by this time no longer in control of Dianetics, announces
that he has a new device, called the "e-meter" that will figure prominently
in his new science that he calls "Scientology."
He takes time out during
this month to marry one of his followers, Mary Sue Whipp who is now at this
time two months pregnant.
(The Roots of Scientology)
In April 1952 the Foundation finally went bankrupt. Its assets were bought by Purcell. These included the sole right to the name 'Hubbard Dianetic Foundation' and
the publishing rights and copyrights on all the Foundation's publications, including 'Dianetics-Modern Science and Mental Health'.
(The Sad Tale of
Scientology, Eric Townsend, Chapt. 5, pg. 16)

LRH: That was a full war against Dianetics. It revived in 1951 and 1952 using the
late Don Purcell, a millionaire oil man in Kansas who received $500,000 into his
bank account the day after he threw the Wichita Foundations into bankruptcy.
(To: The Guardian WW 2 December 1969)

Hubbard opens a Scientology office in Phoenix, Arizona. He discovers
the state of OT (operating thetan).
(The Roots of Scientology)
The Wichita training center moved to Phoenix, Arizona. There, L. Ron
Hubbard publicly announced the formal establishment of the philosophy of
Scientology and the formation of the Hubbard Association of
Scientologists International (HASI). (CofS)

Hubbard had meanwhile transplanted the Hubbard College to Phoenix Arizona, where he established Scientology. This
seems to have been a conscious decision to abandon the Dianetics field for the moment.
The conflicts that had led to Hubbard's isolation, or isolation of himself, were fundamental. It was as if an isolated community
living in an area surrounded by impenetrable mountains had built a flying machine which would let them contact surrounding
valleys. The main inventor however now wanted to use this machine to go to the moon whereas his colleagues still wanted to
fulfil the original objectives.
Most particularly Dr Winter wanted to get Dianetics accepted by the scientific and medical community. Hubbard's moves
towards the spiritual and the apparently occult were felt to be making this goal unachievable.
Purcell wanted a sound commercial operation which could provide the backing and
support that the popular movement needed. Hubbards impetuous and grandiose money raising schemes, such as 'Allied Scientists of the World', were out of
keeping with the respectable image he wanted Hubbard's first major supporter, John
Campbell, withdrew in reaction to Hubbard's authoritarian style and his unwillingness to accept the intellectual contributions of others.
(The Sad Tale of
Scientology, Eric Townsend, Chapt. 5, pg. 16/17)

From his new base in Phoenix, Hubbard started to establish the new subject of
Scientology. As explained earlier this grew out of the further development work he
did on Dianetics with more advanced auditing procedures.
By 1952 he had moved beyond the exclusive area of the human mind to dealing with its 'animator'. This animator is the
concept of a spiritual being that determines the action of the mind and body. In our normal experience our spiritual
awareness becomes largely obscured by the physical and mental inefficiencies that we pick up during our growth to
adulthood. With the development of techniques for increasing our awareness of existing as a spiritual being, separate from our body and mind, Scientology was born.
Hubbard established the Hubbard's orbit as the HAS, in Phoenix. He began Scientology auditing and training of interested
members of the Dianetics community there. He also started a periodical called the Journal of Scientology.
From this new platform he began to attack Purcell's Dianetic Foundation in Wichita, claiming that it was profiteering from
Dianetics. He made a strong appeal to Dianetics followers which produced many converts to Scientology.
As the HAS grew it changed its name to Hubbard Association of Scientologists International (HASI) and became tougher in
the control it exerted over its members using Scientology techniques. Hubbard was obviously determined to avoid a repeat
of the uncontrolled evolution of field auditors and groups that had happened with Dianetics. Only organisations affiliated to
the HAS were permitted to have and use Scientology materials. To qualify as an affiliated group all
members had to be individual members of the HASI and monthly reports of activities were required. Groups that did not toe the line had their
certificates withdrawn and became ineligible for new Scientology materials. Independent practitioners were similarly
controlled and these now included quite a few former Dianetics practitioners who were drawn back into to be individual
members of the HASI and monthly reports of activities were required. Groups that did not toe
the line had their certificates withdrawn and became ineligible for new Scientology materials. Independent practitioners were similarly controlled and
these now included quite a few former Dianetics practitioners who were drawn back into.
(The Sad Tale of
Scientology, Eric Townsend, Chapt. 5, pg. 16/17)

CBR on infiltration of Orgs with psych cases (Quote): ... the Boss told
me, he said, "Hey, they tried to do the same thing on the
Org in Phoenix in 1952." And he said he had to take care
of the nuts they kept sending into the Org. The
"psychs" were all working on the outside and sending
implanted people into the Org. And he had to be very discerning
in those days to make sure that somebody coming in was really
there to be audited and not being sent to go crazy, and to cause
a big flap. (CBR-debrief from 1982)
As AMA's Operation Catspaw continued, Oliver Field, director of the medical fraternity's Bureau of
Investigation, compiled an impressive file of published material attacking Dianetics (and later, Scientology)
and defaming its founder. From this "black propaganda", he selected those items which apparently he felt
would be most damaging to the Scientologists, and these were sent out as enclosures in all his
correspondence concerning them. Eventually, he devised a kind of form letter which repeated over and over
identical statements to doctors, laymen and casual inquirers alike.
Only in a few instances did Field so far forget his role of psychological warrior as to inject personal statements
which, had they become known to Hubbard at the time, would almost certainly have landed the AMA executive
in court charged with slander.
For example, in a letter dated June 30, 1952, replying to a query by a lieutenant in the
U.S. Marine Corps, Field wrote: "From information in our file, we wonder if Mr. Hubbard is not in need of some psychiatric treatment
himself."
Again, in a written communication addressed to a lawyer in Currituck, North Carolina, Field stated: "It is our
understanding that Mr. Hubbard, the originator of all this has spent some time in a mental institution."
On at least two occasions, Field told his correspondents that Scientology was "a scheme to victimize gullible persons.
When newspapers published inaccurate allegations made against Hubbard in a domestic relations court case,
Field had the stories photocopied and sent them as additional hand-outs to various correspondents.
(Omar
V. Garrison - Hidden
Story of Scientology, pg. 78/79)
Scientology: A History of Man published. (CofS)
Hubbard and wife move to London, England.
(The Roots of Scientology)
L. Ron Hubbard began delivery of the first training course for auditors
in England. He also established the first British Scientology
organization, and a London branch of the Hubbard Association of
Scientologists International. (CofS)

In the UK the development of Dianetics followed a similar pattern to the early days in the United States. The loose
coordinating body was the British Dianetic Association which was succeeded by the
Dianetic Association Ltd. Their main function was to get hold of American material and distribute it in the UK. In 1952
the Dianetic Association Ltd was absorbed by the Dianetic Federation of Great
Britain. Like its American counterpart it exercised virtually no control over the
multitude of field groups and auditors. Very few of these auditors had been to the United States to be trained at the Foundation.
(The Sad Tale of Scientology,
Eric Townsend, Chapt. 5, pg. 17)
Scientology 8-80 published. (CofS)
The first lecture of the Philadelphia Doctorate Course was delivered by
L. Ron Hubbard in Philadelphia, Pennsylvania and he presented the first
copies ofScientology 8-8008. (CofS)

Hubbard returns to the US to give a series of lectures in
Philadelphia.
There he is arrested for wrongfully withdrawing $9,286.00 from
the now bankrupt Wichita Dianetics Foundation. He agrees to pay restitution
and the matter is dropped.
(The Roots of Scientology)
When L. Ron Hubbard gave dianetics to a wondering world (TIME, July 24,
1950), it looked as though he had claimed everything
in sight, and more. "The hidden source of all psychosomatic ills and human aberration has been discovered," he wrote then, "and
skills have been developed for their invariable cure." But to Science Fictioneer Hubbard, these achievements soon seemed like
kid stuff. He broke with the Hubbard Dianetic Foundation in Wichita, "to further pursue investigations into the incredible and
fantastic," as the foundation puts it. Now, the founder of still another cult, he claims to have discovered the ultimate secrets of life
and the universe, and to be able to cure everything, including cancer.
For the cult, L. (for Lafayette) Ron (for Ronald) Hubbard has whipped up the bastard word "scientology," which he defines as
"knowing about knowing" or "the science of knowledge." His latest ology is compounded of equal parts of science fiction,
dianetics (with "auditing," "preclears" and engrams), and plain jabberwocky.* Hubbard has preached his gospel to the British; he
spent last week drumming for converts in Philadelphia. Awed by his own accomplishments, Hubbard has awarded himself the
degree of "D. Scn." -- doctor of scientology.
* Sample, from Hubbard's new tract, Scientology: 8-80: "An individual who cannot get out of his body immediately can look
around inside his head and find the black spots and turn them white..."
(Articles on
Dianetics/Scientology)
