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 Scientology Time Track By Entry
1958
(no date)
  Through the 1950s, Scientology tried to develop a good public image. The therapy had become a religious practice, compared by Hubbard to the Christian confessional, and the therapists had become ministers.

The Washington Church had obtained tax exempt status in 1956, and other Churches had followed suit. Then, in 1958, exemption was denied. The Washington Church appealed to the U.S. Court of Claims. The Tax Court ruled that exempt status was rightly withdrawn, because Hubbard and his wife were benefiting financially from the Church of Scientology beyond reasonable remuneration.

Between June 1955 and June 1959, Hubbard had been given $108,000 by the Scientology Church, along with the use of a car, all expenses paid. The Church maintained a private residence for him through 1958 and 1959. His family, including his son Nibs and his daughter Catherine, had also withdrawn thousands of dollars. Mary Sue Hubbard derived over $10,000 income by renting property to the Church. On top of this, Hubbard received his tithes (ten percent, or more) from Scientology organizations throughout the world. Despite Hubbard's pronouncements, Scientology and Dianetics were very definitely a business, a profit-making organization, run by Hubbard for his personal enrichment.

A Piece of Blue Sky by Jon Atack

Falsehood that he did not receive church money - LRH
Incorrectly Included criminal fraud on taxes - LRH
Incorrectly Included placing church tax exemption at risk - LRH
Altered Importance of cheating IRS versus safety and integrity of churches - LRH

(no date)
  While it was possible to defend against prosecution in the United States for claims of miracle cures by invoking the First Amendment's freedom of belief, it was stupid of Hubbard to sell his vitamin mixture as a specific for radiation sickness. In 1958, the Food and Drug Administration (FDA) seized a consignment of 21,000 "Dianazene" tablets, which were marketed by a Scientology company, the Distribution Center. The tablets were destroyed by the FDA because their labeling claimed they were a preventative and treatment for radiation sickness.

A Piece of Blue Sky by Jon Atack

Altered Importance of stopping beneficial treatment over a misworded label - FDA
Incorrectly Included collusion with AMA to help them maintain a drug-based healing monopoly - FDA

07 Aug
  An FBI document sent to J. Edgar Hoover informs him that L. Ron Hubbard thinks he is stupid. The document is created because, at some unknown date, probably in June or July 1958, the Academy of Scientology delivered twelve thousand feet of film to a Washington laboratory for processing. Technicians forwarded it to the FBI for investigation, alleging that the speaker on the film is anti-American. The film covered six one-hour lectures by Hubbard, during which he made a crack about the government developing the hydrogen bomb in order to 'kill more people faster'.

He also talked about his experience, when he was a policeman, in dealing with the criminal mind. The FBI thinks there's such a thing as the criminal mind--always a big joke, he said. There's a criminal mind and a non-criminal mind. The FBI has never shown me a non- criminal mind. Of course, these are terrible things to say--simply comments on J. Edgar who is an awfully good guy. Stupid, but awfully good. The Washington Field Office, which lacked Hubbard's sense of humor, had solemnly taken note of this analysis of their director and diligently forwarded it to him.

Russell Miller, book: Bare Faced Messiah, Chapter 13;
FBI Airtel, 7 August 1958





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