L. Ron Hubbard and the Zen of Org Economics


While compiling information on the economic model of Scientology, I found a fascinating 1970 HCO PL (scroll down) in which L. Ron Hubbard emphasized that the economic viability of an Org trumped posh quarters. Wanting to wring the maximum amount of cash out of Scientology’s Orgs, Hubbard was a pragmatist when it came to the matter of dwellings. This is why Hubbard could live in a rented house in Elizabeth, New Jersey; his manor at St. Hill; on a ship; in nondescript apartments in Queens, Culver City, or Hemet; or in a Bluebird motorhome. Hubbard was also quite willing for Scientology’s facilities to be merely adequate.

In Miscavige era Scientology, this policy has been reversed. Thus, while the Ideal Orgs are posh, they are essentially empty, nonviable, money-losing operations. As such, the Ideal Orgs are not financially sustainable or even justifiable; particularly as these Orgs must increasingly rely upon IAS subsidies or simply begging public Scientologists for subsistence money to pay their utility bills.

Beginning in 2002, David Miscavige bet hundreds of millions of dollars on his Ideal Org strategy. This strategy has proven to be a staggering failure insofar as Scientology membership and the reputation of the Church of Scientology continues to plummet in a free fall. Scientology’s psycho-terrorism of Fair Game and the enslavement and utter exploitation of Sea Org members are mutually contradictory with its goals of growth and expansion and “good PR.”

The Church of Scientology is hopelessly mired in a series of conflicting goals. Scientology cannot possibly hope to create a world without war, crime, or insanity when it is perpetually at war with Culture and governments; engaged in the criminality of financially raping its own members; and perpetually behaving in an insane manner. This self-destructive operating basis is unworkable and cannot possibly be called a technology.

And as membership and cash flow continues to exponentially diminish, the IAS reserves will be increasingly relied upon to fund daily operations, i.e. OSA’s disastrous campaigns of psycho-terrorist Fair Game; endless lawyers; damage control; creating hate websites; the dissemination of the usual PR lies; the enslavement and utter exploitation of Sea Org members; and the subsidizing of both new and existing empty Ideal Orgs.

Bottom Line: Given the Church of Scientology’s system of cruelty and greed created by Founder L. Ron Hubbard it really doesn’t matter if Scientology is ensconced in palaces or housed in decaying strip malls. The System of Scientology itself is doomed to failure and is in a state of decay, stagnation, and collapse. This collapse is dramatically accentuated by staggering revelations of Scientology’s enormous depravity and cruelty.

Saint Hill Manor, Bast Grinstead, Sussex

Estate Bureau
LRH Comm Hat
ED Hat
CO Hat


In twenty years an enormous amount of experience has been gained regarding the quarters and housing of orgs.

From this experience there are only a few clear-cut lessons. These follow:

A. VIABILITY of the org (its economic survival including its security from political-enemy-motivated attack) is the first and foremost consideration. In terms of quarters an org can afford just so much expense. Therefore, viability is the first consideration—not how posh or what repute or what image. Thus, we have the policy that:


Example: Stockholm took very posh, fancy quarters. Up to that time it has been viable. The overload of expense rapidly upset the salary sum, the staff began to moonlight (work on other jobs), and the org all but collapsed until cheaper quarters were found.

Example: Phoenix 1955. A beautiful, big building at small expense was found. It was very prominent. Enemy local attack was stepped up in the area including door-to-door black propaganda by psychiatrists and a campaign by commie newspaper reporters. The full reserves of the org went into furnishing these quarters. The area had to be abandoned,
losing all reserves. Elizabeth, New Jersey, 1950. The shabby quarters there made lots of money. Beautiful country quarters were under survey for purchase. The psychiatric block, much stronger then, began action in Trenton, New Jersey to invoke a law against medical schools. If the better quarters had been purchased, they would have been lost. The org foolishly moved to New York City across the river where the New York Org owned a building.

CONCLUSION: Viability of economics must not exceed the income of the org. The SAFE figure for rent and mortgage payments must not exceed 15 percent to 17 percent of the gross income of the org.

Political security must be attained by counterattack and if not attained or is risky, no heavy property investment or renovation should be programed.

If a country itself is liable to fall, property investment and renovation should be held to a minimum as viability is under the general political threat to the country itself.

B. Quarters must be close to ample and cheap student and pc housing, restaurants and transport.

Example: Abellund in Denmark, 1969, was a lovely place. The org there failed because it was 42 kilometers in the country without transport or taxis or buses, had no student housing nearby and had no restaurants. It was lovely but hated by students and pcs. Its isolation and general atmosphere promoted idleness and the org was down to half rations and no pay when forcefully moved by Flag into Copenhagen where in very bad quarters and bad housing it became viable. Student housing and feeding is very expensive and facilities scarce even so and still hurts the org income greatly.

Example: Elizabeth, New Jersey 1950. The org was located amid square blocks full of rooming houses and at the city center of three railways and bus lines. The students’ own rooms were used for auditing which permitted org expansion. Nothing was posh. Everything noisy. The org was very viable and had streams of people.

Example: SH 1960-1968. The presence of lots of rooms for students in the town and cheap living despite the lousiness of the quarters gave SH in England its greatest periods of affluence. Political attack barred out foreign students, and the town people came at length to petition the government to remove the ban. (The closure of the 1955 Phoenix org also caused 35 small-town businesses to close in the org vicinity.)

CONCLUSION: The presence of ample, cheap housing and restaurants and general and local transport is a main factor in the viability of an org.

C. Image is a secondary consideration.

Example: Hotel Reycar Alicante Spain was relatively cheap. It was quite posh. Students complained as it cost a bit more than they were willing to pay. Image in this case worked against the org,

Example: Johannesburg’s three old buildings foolishly sold and the money squandered has yet to attain the income it made in its “old, horrible quarters” despite its newer image.

Example: The beauty of Saint Hill in England is secondary to its viability and student housing.

CONCLUSION: One does all he can by staff work to improve the image. If image is the reason why one must move from an area where the org was viable or had student housing, forget it. Polish up what you have already, Image is gratifying. If A and B exist, one can think about image. Image of the outer building does not much affect A and B. Cleanliness and order of what you have is the image to concentrate upon. Staff pay and food and cheap student housing do more for an org than a posh building.


Example: London about 1965 agreed to sell its buildings. Three years later by agreement it had to vacate. It squandered its money so made and has rented quarters and has not done well since.

Example; Johannesburg sold its buildings in the late 60s for a profit, blew the profit on old bills instead of making the money and has been on a struggle ever since.

Example: Reversely, Washington, DC has paid for its buildings in rent several times over and has nothing and is in sporadic trouble, probably exceeding its 17 percent of gross for quarters.

CONCLUSION: Purchase is superior to renting unless political viability is very bad. And when an org owns quarters and is viable, it is not clever to sell and rent.

E. Expensive office equipment is not a first priority.

Example: Camden, New Jersey 1954 bought beautiful desks and chairs and cabinets. When it moved they were seized on a landlord pretext. All its reserves were tied up in furniture which can’t be resold anyway.

CONCLUSION: Enough desks and chairs and furnishings is far superior to top-grade office furniture. Reserves tied up in furniture is never recoverable. Furniture quality does not influence production. Furniture lack does reduce production.

F. Renovations are destructive if extensive.

Example: London 1958-59 rented 7 Fitzroy. Contrary to orders which were to hire a man and do one room at a time, it went all out with contractors and even rewired the place and went broke on renovation bills. It took three rough years to get the org out of debt. Then when the building was given back to the owners (Church of England), they charged huge building damages which had to be paid although they had a new, sleek building in return for an old wreck it had been.

Example: Phoenix 1955 cost all the org reserves to renovate a building then lost.

Example: A ship was fully renovated before use and wound up costing more than a huge, usable ship.

CONCLUSION: Don’t renovate at vast expense. Use and make it better as you can with your own people.

G. Other businesses or rentals to support an org wind up very costly.

Example: Hickstead Garage was bought to support Saint Hill. Was a horrible drag and distraction and supported nothing, not even itself. Saint Hill Special Briefing Course supported Saint Hill.

CONCLUSION: Schemes to use other than Scientology actions or partial rentals, etc., can be a bad nuisance. Scientology supports Scientology orgs and we learn this over and over.

H. Depending on political viability, it is better to buy than rent. If political viability is shaky, it is better to rent than buy.

Example: Spain’s Hotel Reycar was a great success as a rental, getting org quarters so students would rent rooms. However, the Spanish government was worked on by the South African ambassador who was worked on by the World Federation of Mental Health stooge Stander, a commie in South Africa. The org was subjected to surveillance and upset and moved. It could not have moved easily had it owned.

CONCLUSION: In politically troubled areas use a downstat hotel and promise student room rentals. One can move in hours. Or one can stay. This would apply to the Middle East or to any country, like Spain, subjected to political menace. (Spain is intolerant of religions, and its officials are bought easily and is caving in to Russian pressures and
probably won’t live as a government beyond Franco’s death.)

I. Where possible, don’t split up units of the same org unless you have to.

Example: Notting Hill Gate 1955 was rented. Half the org stayed a bus ride away at 163 Holland Park, London. Denied some of the services of an org, each part had a rough time.

Examples: The HGC Los Angeles from 1956 for some time was separate. This was not too bad and it paralleled an earlier 1955 separate building HGC in Washington. But the secret here was the personal competence of the HGC D of P and when that person was promoted to Los Angeles the HGC did much less well. The separate HGC in LA got
into out-tech.

CONCLUSION: The functioning public line units (Academy, HGC) should not be in separate buildings from the org. However, working units such as Mimeo or even Div 2, except the Body Reg, have sometimes been separate from an org and no trouble was experienced. Housing and food for a staff can of course be separate and should be.


The above are the major policies relating to obtaining and situating quarters.

A and B are much more important than the remainder.

An org which adventures more than 15 percent of its current gross income
for rent or purchase payments can get into far more serious trouble than an org
with a poor building image. Hopeful thinking contrary to these policies, especially
A and B, can smash an org,

The switch of address alone can cost an org a great deal unless loudly remedied.

One maxim is, if you have a going concern with enough income and pay,
don’t monkey with it until you can realize a total purchase price with A and B
in mind.


February 2017: Notes and Observations on Scientology

February 2017: Here are some notes and observations on how I watch and look at Scientology:

1. So many things constellate around The Underground Bunker that this place is mandatory daily reading. Tony Ortega understands context, story, and significance in a way that utterly eludes Scientology, David Miscavige, Freedom Rag, and the no-show-no-stats SMP.

2. Mike Rinder’s blog is the Tiffany’s of documenting Scientology’s ongoing failures, deceits, and decline. Mike provides an outstanding daily journal of real-time Scientology decline. Mike’s valuable insights into Scientology as an organization are possible due to his decades of managing the Office of Special Affairs on a daily basis. Mike understands Scientology and David Miscavige at a profound level. That Mike’s jovial and robust sense of humor is mated to his ferocious intellect makes reading his analysis of the situation that much more enjoyable.

3. Disconnection and Fair Game are non-negotiable and must go. To the degree that Scientology practices and enforces Disconnection and Fair Game, Scientology’s self-destruction will persist. No one out here in the real world will stand for Scientology’s breaking up of families and its programs of character assassination.

4. Leah Remini: Scientology and the Aftermath was a devastating expose of the Church of Scientology and its brutality. If it is not already in the works, season two will spontaneously appear as an act of Creation Ex Nihilo; the metaphysics of television dictate that this must happen.

4. Twitter and Facebook are extremely important to watch. The sum of message traffic on these platforms provides invaluable existential information about Scientology and Culture. Social media shows Scientology’s inherent inability to interact with Culture. This ineptitude is traceable to L. Ron Hubbard who called for Scientology to use blatantly phony and dishonest PR in the place of apologetics or other forms of meaningful interaction with Culture.

5. Scientology’s hate websites are very important to watch. These incriminating sites constitute damning and irrefutable forensic evidence which shows that Scientology’s programs of Fair Game have an unlimited budget of tax-free dollars. These websites also offer a penetrating insight into the psyche of Miscavige and OSA in a way that betrays both of them. Like a Cold War era Sovietologist would note, a good analyst must study the propaganda operations and party line rhetoric of the other side. IMO, our side needs more analysts who are willing to monitor, document, analyze, and write about Scientology’s websites.

6. Scientology’s cash position, cash surplus, and real estate acquisitions are almost completely meaningless as significant metrics. Any organization with a cash surplus can buy and amass a real estate portfolio. In most cases, Scientology’s real estate acquisitions of decrepit old buildings in need of millions of dollars in renovations are designed to stall and buy time for David Miscavige. From my perspective, Miscavige is obviously using these empty buildings to buy time and create some semblance of hope for the future of Scientology. However, no one is fooled. Example: The San Fernando Valley Ideal Org is a complete waste of time and money. There is no excuse for Miscavige to leave that eyesore unfinished given the IAS cash pile. The PR damage done to Scientology by leaving buildings empty for years or decades, particularly when there is plenty of money available to open these buildings within 12-18 months, is inexcusable. Conversely, Scientology will cherry pick top properties. This was the case with SMP here in Hollywood or Larry Hagman’s place in Ojai. But then the Cult will not actually do anything with these premier properties except use them for PR.

7. David Miscavige needs to reverse the massive and long-term statcrash in Scientology and does not know how to do it because he refuses to understand the nature and essence of the problems facing Scientology. Understanding the real problems would require critical self-reflection on his part wherein he would conclude that he must resign and step aside. He has zero capabilities in this regard and believes himself to be indispensable to Scientology. Compounding this is the long term structural damage to Scientology wrought by Miscavige’s execution of Hubbard’s bad policies and Miscavige’s own failed programs in the period 2001 to the present day is irreversible. Miscavige massively overreached with his frenzied money grab in the Basics, selling IAS statuses, and the failed Ideal Org strategy. GAT I and GAT II were, and are, failures in ways Miscavige does not understand.

8. Scientology’s contradictory policies of greed-driven inhumanity place it at war with itself and all the parts of its own existence. To use an analogy, Scientology is like a raging alcoholic with serious self-created problems who denies they are an alcoholic and blames others for their problems. Everyone else can see the problems except Scientology. The Church of Scientology is an embarrassment to itself and does not see it.

9. The real numbers a good leaker could give are these:
A. Attendance at events: publics and SO.
B. The number of SO members over the past ten years.
C. The total number of IAS members in good standing with the Church.
D. Total membership losses of publics and SO over the past ten years.
E. Number of SO senior execs paid off to sign nondisclosure agreements in the past ten years.

10. One of the real things to watch is the covert consolidation of Scientology Orgs. Miscavige can call it whatever he wants, but consolidation is contraction and Scientology is contracting inwards upon itself with great force. The acquisition of real estate is a red herring. Purchasing buildings is meaningless in the face of Scientology’s uncontrollable and accelerating membership losses. The way out is through the nearest door.

11. The petard upon which Scientology is hanging itself is Disconnection and Fair Game.