zegel1.memo

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           ((Editors Comments in double parentheses - Homer))
 
                            ZEGEL TAPE NO. 1
 
                               ZEGEL - 1
                              13 May 1994
 
                      Copyright (C) 1982 Jon Zegel
       Redistribution rights granted for non commercial purposes.
 
     ((This is the complete and unabridged, word for word transcript of
Jon Zegel's tape number 1.  Remember that Zegel recants the entirety of
his first 3 tapes, including this one, in the 4th tape.))
 
     To understand how we have come to this point, with the change in
Church Management, and the other things that have happened, we are going
to start about 10 years ago when the ship, the Flag Ship Apollo was
still at sea.  It's important to realize that the Flag Ship's management
was under the Church of Scientology of California Corporation, and that
during that period of time, in 73, the Church's taxes were being looked
into, especially their tax exempt status.
 
     And in order to handle a portion of that problem, which included
the excess amount of income that was coming into the Church beyond what
was being spent and problems that might have occurred as a result,
Herbie Parkhouse, a fairly well known person of Church history, decided
that it would be appropriate to set up a foreign corporation to handle
foreign money coming to the Flag Ship.  That is anybody coming to the
ship that was not a US citizen, their money, rather than traveling
through USA banks, would go directly from the ship to a foreign bank.
 
     A corporation was set up called the Religious Research Foundation,
or the RRF.  It apparently was founded in Luxembourg, and bank accounts
were established in Luxembourg to handle the Church's money, there.
 
     When a person would come to the Flag Ship who was not a US citizen
his income would be received, it would be invoiced to the RRF and that
money would be couriered from the ship directly to Luxembourg where it
would be deposited in the accounts there.
 
     The couriers that were active at the time, were two young men, Pat
Broeker was one of them, and Peter Gillham Jr. is another.
 
     In 1975 the ship stopped sailing around and the Flag Land Base was
established.  The ship landed in Florida, I believe in Dayton, and
projects were initiated to find suitable quarters to house the Flag Land
Base.
 
     The money that came into the country to purchase the Flag Land Base
came from the Luxembourg accounts of the RRF into the United States in
cash.  And it went through a corporation that was set up called the
United Churches, and it was United Churches who initially made the
purchase of the building ((Fort Harrison Hotel in Clearwater Florida.))
 
     Now that the Flag Land Base was landed, the RRF nonetheless was
continued, and so that money coming into the United States from those
people from overseas was again invoiced to the RRF and that money was
packeted up, sent to the Guardians Office, that was apparently then
responsible for couriering it out of the country, again to the accounts
in Luxembourg.
 
     We have talked to a couple of people who have been present while
these things have gone on, including a Flag Banking Officer who was at
Flag and WROTE the invoices, and people from other countries who came to
the Flag Land Base and received those invoices.
 
     Now Ron was in the area around Clearwater during the early years of
the establishment of the land base.  And he was known to travel in and
out of the buildings there occasionally, giving lectures to the C/Ses,
participating in directing research and so forth.  However during the
raids and just slightly there after, as the legal problems of the Church
began to multiply, it was considered that the Flag Land Base was
probably not the best location overall for Ron to be, particularly in
terms of his security.  Now there may have been other reasons for
considering a change of location, but those are the ones we can easily
see.
 
     None the less, it was decided that a location in the western part
of the United States would be appropriate, and the area around Palm
Springs apparently was selected.  When I say around Palm Springs, I mean
approximately a 50 mile radius around Palm Springs.  Some teams of
individuals were sent out to locate property, some properties were
found, and a new headquarters for the international management was
established in the western part of the United States, again in the Palm
Springs area.
 
     The external communication lines of the Church were set up there,
telex lines and so forth, and the international management team
established its location there.
 
     Ron was also there, the Senior C/S international and other
individuals as well.
 
     During that period of time, we are now looking in the year 77, 78
and 79, that group began to grow, and among the responsibilities of the
individuals there, aside from international management overall, was that
Dave Mayo was working with Ron on NOTS, and specifically was auditing
Ron on his audited NOTS ((as opposed to Solo NOTS)).
 
     Dave Mayo however was also doing some traveling at that period of
time, doing some missions around the country, and was becoming well
known, almost a celebrity if you will, as the foremost tech terminal
aside from Ron himself.  That was considered to be potentially a
security problem.  Also the size of the staff that was there with Ron,
was also considered to be a possible security risk, and concurrently a
lawsuit in Oregon being run, was also considered to be a potential risk.
 
     The solution to that was going to be to find a new location for Ron
to live.  Ron's audited NOTS apparently was finished up, Ron's staff was
moved to the newly purchased Gilman Hot Springs.  That was purchased
about the middle of the year in 1979, that was a resort that was just
outside of a town called Hemit, again in the same 50 mile radius
approximately around Palm Springs, and was simultaneously the home of
Golden Era Studios.
 
     Ron selected two people from his staff to be his full time aids
essentially personal associates, and the two people who were selected
were Pat and Annie Broeker.
 
     Now one of the reasons for selecting Pat Broeker, although there
may be others, was that as a principle courier for the RRF, no new
courier would be needed to be told where Ron was living and he and his
wife Annie had been part of LRH's household staff or personal staff for
some time, and so they seemed apparently to be logical choices.
 
     The Broekers apparently participated in selecting the new quarters,
and when the new quarters were found they and Ron moved off to those new
quarters, along with a couple of people to be grounds keepers and
security folks.
 
     In 1980 Ron apparently began to become concerned about his eventual
death.  Evidence of that is that he sent letters to each of his children
indicating that he did not expect to live longer than 5 years, and that
they should begin to make whatever preparations would be appropriate for
his passing.  In addition several individuals of the Commodore's
Messenger Org staff received similar letters, and the activities were
put into operation to prepare for the establishment of trusts that would
allow Ron to drop the body, go off and pick up another body, return, and
pick up where he had left off.
 
     The legal activities apparently were quite extensive, trust funds
were established, trustees were appointed and it is around the
appointment of these trustees that things began to become..., the
intrigue begins to grow here.
 
     First was the settlement of some of Ron's personal affairs, and it
was considered that the Church owed Ron not an inconsiderable sum of
money for past use of trademarks, copyrights and so forth.
 
     And so Ron got together with several of his financial advisors,
personal staff and so forth, and during the year 1980 or perhaps early
1981, began to work out exactly how much money was owed.  Now according
to Time Magazine, the figure that was eventually arrived at was 85
million dollars, and a demand for that amount specifically or one close
to it was made of the Church.
 
     Now it wasn't "We have to have this money by Thursday at 2
o'clock", a little bit more time than that was allowed, but none the
less that's a big task to gather together that kind of money, and
according to reports we have people were told that the Church reserves
were not to be reduced in order to satisfy this particular request.
 
     ((The "by Thursday at 2 o'clock" is an inside joke, all Church
financial cycles were one week long and ended every Thursday at 2
o'clock.  So if stats were down on Wednesday night, they would hustle to
get money in by the next day at 2 o'clock often going to great and
ridiculous lengths to get this done.
 
     It would have been the ultimate irony and joke if the demand for
the 85 million HAD been by Thursday at 2!
 
     The significance of the order to not reduce Church reserves to get
the 85 million, is that the money had to be newly raised which lead to
some of what followed.))
 
     It was not going to be an inconsiderable problem as well to deal
with the tax consequences of that kind of income.  No body thought that
it would be a good idea for Ron to get 85 million dollars and then have
to turn around and give half of it to the federal government in terms of
taxes.  So a solution was needed for that problem as well.
 
     And the solution that was eventually arrived at among Ron and his
various advisors was to set up a non profit religious corporation
separate from the Church.  The solution continued in that the
trademarks, the trademarks we are all familiar with, the double triangle
and S, the name Scientology, the name Dianetics, the name L. Ron
Hubbard, the initials LRH, the signature L. Ron Hubbard, those
trademarks would be withdrawn from the Church, that is the Church
wouldn't be allowed to use them, and that those trademarks would be
donated ((by Ron)) to this new religious corporation.  That religious
corporation would then receive those trademarks as a donation and they
would value them, in terms of their actual cash value, in such a way as
to offset the tax liability.
 
     Let's just review this quickly because it's a little bit complex.
The Church would give Ron the cash money, 85 million dollars allegedly.
Ron would withdraw from the church the various trademarks.  The
trademarks would be donated ((by Ron)) to this new religious
corporation, and Ron would receive a tax benefit for having made that
donation, enough to offset the income taxes that he would have to pay on
this 85 million dollars of income.
 
     ((Having some experience in tax law and charitable donations, I am
not sure I follow this.  Assuming the deal was done under normal Federal
1040 rules, a person is allowed to deduct donations up to half of his
income to charitable purposes in any given year.  So if you made 10,000
in a year, but donated 20,000 say, you would only be allowed to deduct
5,000 in the year of the donation, so you would still have to pay taxes
on 5,000.  However the remaining undeducted 15,000 could still be
deducted against income in future years as a carry over, but again only
against half of each years income until all of the donation was
accounted for, or until 5 years had passed which ever came first.  The
laws may have been different in 1982.
 
     So really there is no way to escape all taxes on income.  At best
Ron could have donated '42.5 million' dollars of trademarks to the RTC,
and deducted the 42.5 million donation from his 85 million income,
leaving him with 42.5 million to pay taxes on, which would have been
21.25 million in taxes.  He at best saved himself 21.25 in further taxes
had he not made the donation.
 
     In other words if he had paid taxes on the full 85 million, he
would have paid 42.5 million in taxes.  But since he deducted 42.5
million as a charitable donation from the 85 million, he only paid taxes
on the remaining 42.5 million which would have come out to 21.25 million
in taxes, which is 21.25 million less than the full amount of taxes he
would have paid with out the donation.
 
     I am not a tax expert on this, and I might have it all wrong.))
 
     So among others things, that was the purpose of the set up of the
Religious Technology Center (RTC).  Now there was some other laudable
purposes as well.  What the RTC was supposed to be doing was to regulate
the use of the tech, to encourage people to use it, to push tech into a
variety of different areas around the country, to encourage field
auditing, to encourage the growth of missions.
 
     And to ensure that this happened, when the original papers were
drawn up, the members of the boards of directors and so forth of the RTC
were to be trained individuals, and they were to be progressing in their
training on a yearly basis.
 
     It was clear that the current situation regarding Ron and the legal
problems that he was facing, was far from an optimum situation.  And Ron
put together a group of people that was to be called the All Clear
Committee.  And the ACC had a specific purpose and that purpose was to
get rid of all the legal hassles that were facing Ron, so that he could
again come back out in the public.
 
     And the person who as selected to be the chairman of the all clear
committee was a young man named David Miscavige.  Now David Miscavige's
principle claim to fame was that he had worked as part of the film unit.
He had been in the CMO for some years, and he had gained a reputation as
a person who could get things done, when other people couldn't.
 
     He also gained a reputation of being the kind of person that could
get things done by screaming at the top of his lungs, but getting things
done was the important factor, and he gained for himself quite a
reputation in that regard.
 
     When it came time to select the chairman of the All Clear
Committee, David was recommended, he was also a close friend of Pat
Broekers, and he seemed to be just the right guy for doing that
particular job.
 
     Along with him, three women, or three other members specifically
were appointed to be part of the committee, and that committee was
constituted separately from the Commodores Messenger Org.  It had its
own special communication line directly to Ron and that was going to
prove to be instrumental in the future.
 
     As time passed, the ACC began to come apart, that is to say, David
Miscavige survived, but the other people who were members of the
committee either left it for one reason or another, were perhaps Comm
ev'd, one person was, left the Sea Org.  I don't have the specifics what
happened to each individual person, but suffice it to say, the other
three people from the committee eventually disappeared and David
Miscavige was left on his own, holding this rather important post, and
again SEPARATE from the CMO.
 
     And because he had this separate and rather special communication
line, it put him a position of being in essence senior to the CMO.  Now
earlier than this time, when Ron and the CMO were all in the same
location, the CMO worked directly with Ron and consequently had an
enormous amount of power, because of that personal and specific
communication line.  When Ron's location was moved to his more secure
quarters, and the quarters were...only Pat and and Annie Broeker were
his principle aids, the CMO in essence became simply another management
org in the upper level strata of Church management.
 
     And this ACC, and eventually just David Miscavige, then would be in
a senior position because of this special communication line.
 
     Now the evolution continued, and what happened was that David
Miscavige became the principle communication link between the Church as
a whole ((and Ron)).  The whole management structure of the Church below
was like a giant inverted funnel headed directly to him ((David
Miscavige)), and he actually became the relay point for all
communication from the Church directly to Ron.
 
     Now that communication was on a couple of vias, it would all come
up through the Church lines to David Miscavige, who would then
specifically transport it and turn it over to Pat Broeker at a
predesignated meeting place.  Pat Broeker or his wife Annie Broeker
would then transport that material back to LRH ((LRH's headquarters))
where it would be read ((by the Broekers)) and those particles that
needed to go directly to Ron would be passed onto him.
 
     That communication link and this secrecy of Ron's physical location
is going to turn out to be the basis of the power of these three people,
Pat Broeker, Annie Broeker and David Miscavige.
 
     Additionally, a few minutes ago we were talking about trustees
being appointed to manage Ron's affairs during his absence, and these
three people were going to become the trustees.
 
     It is worthwhile now to spend a little time and talk about David
Mayo, and what happened to remove him from a point of no inconsiderable
responsibility.
 
     As we mentioned earlier, David Mayo had been the Senior C/S
International, a principle confidant and and terminal of Ron's.  The two
had worked together very closely, in piloting new material, in working
on research projects and so forth, and the fact that David Mayo has
subsequently been removed from the Church and declared a Suppressive
Person, is quite a story in itself, and how that come about is rather
interesting.
 
     Now David was posted as the Senior C/S International.  That person
is in essence the highest posted technical official in the Church
outside of Ron himself.  That's a person who is responsible for the
application of tech on a world wide basis, and this is a person who
works very closely with LRH when projects such as new pilot programs are
put together and so forth.
 
     David Mayo and Ron had a regular correspondence going back and
forth IN WRITING after Ron moved to his new secure quarters.  And the
two of them would exchange a few letters a week, sometimes more,
sometimes less, but at any rate there was a constant stream of
communication between them.
 
     At one point Ron asked David if he would please do a Security Check
or a couple of sec checks on Pat Broeker.  The purpose of these sec
checks is not entirely clear, but none the less Ron went to Pat Broeker
and said please report to David Mayo and get these sec checks.  Pat of
course obliged, and he went to where David Mayo was at point stationed
and received these sec checks.
 
     Now I have not heard any specifics on exactly what was found, aside
from the fact that some of the findings on those sec checks were
unfavorable to Pat Broeker.  A report was apparently written to Ron by
David Mayo and sent up the lines.  Now here is where this via of David
Miscavige through the Broekers becomes a very important factor, because
that was the comm line that any such report would have had to travel on.
And indeed those were the lines that the reports traveled on, and one or
both of the reports regarding the sec checks were pulled off the lines
by Pat Broeker.
 
     Acknowledgements from Ron that went to David Mayo, contained a copy
of the altered report, that Pat Broeker had written, replacing David
Mayo's actual report of the outcome of the sec check.  And the two
reports were not precisely the same as you might imagine.
 
     David Mayo on learning of this tried a variety of approaches to
correct this problem, he tried sending additional communications up the
lines, and a personal confrontation with Pat Broeker, but this was to no
avail.  At that point of course he was, if you will, a marked man.  He
had to be gotten rid of because he had the secret.
 
     So a campaign was initiated, ON THE RUMOR LINES, that David Mayo
was plotting with some known Church enemies, specifically Allen Walters
and Bill Franks, to take over the Church.  Now those people who have
worked closely with Ron in the past, several of whom I have spoken to,
have indicated that Ron does not appreciate those kinds of take over
attempts.  As a matter of fact that is quite a button ((with Ron)), and
if you wanted to do some body in, in terms of discrediting them, that's
the ideal way to do so.
 
     Apparently this rumor was planted on Church lines, and as you can
imagine those rumor lines virtually hummed all around the Church with
that information.
 
     Well any diligent staff member hearing such a rumor would feel
obliged to write it up, and so the Knowledge Reports began to flow up
the lines regarding this rumor, which was now beginning to circulate
about David Mayo plotting to take over the Church.  Those rumors of
course found their way directly to Ron very quickly.
 
     Dave Mayo's communications about the fact that these sec check
reports had been altered were stopped, but the knowledge reports of the
take over zipped right through the lines.  So his position, David Mayo's
position in the Church, from Ron's viewpoint, began to deteriorate.
David Mayo had apparently completely fallen out of communication, all of
his letters and so forth coming up the lines were stopped.  Ron became
concerned as to what had happened to David.  He sent communications to
various terminals in the Church, saying what happened to Dave Mayo,
where is he, why haven't I heard from him, that sort of thing.  But no
answers that David could originate could actually get through.
 
     As a result of his being discredited, he was eventually removed
from post as taken from Gilman Hot Springs to a Church location which is
known as Happy Valley.
 
     Now, there is a real place called Happy Valley.  It is part of an
Indian Reservation that's apparently situated near a boxed canyon.
Happy Valley is a chunk of land that is surrounded on all sides by the
Indian Res. with a right of way for a road that goes back to it.  These
people were going to be transported to Happy Valley and what was going
to happen to them there was that their ethics was going to be handled
and this cycle was going to be handled with them.
 
     The people that were being handled at this moment totalled sixteen.
This included the Senior C/S International staff, which was 5 people and
11 additional people from other units.  They were all transported to
this particular location, which again is in this Palm Springs area out
in the desert.
 
     Previous to this a program had been announced by Ron called the
Running Program.  This was for staff of Golden Era Studios and for INT,
the International Management Groups.  What the running program consisted
of was:  vigorous exercise, outdoors, and the idea of the program was to
stabilize the sleep/awake cycle and handle people whose cases that had
been apparently very badly enturbulated in some way by extroverting
their attention getting them outdoors and giving them good vigorous
exercise to do.  When this program had originally been put into action,
David Mayo had been the person responsible for piloting it and Ron had
sent him the materials and the instructions for doing so.
 
     Again, this is 1982 now, and he had begun people running this
program on a gradient.  When he was transported out there, apparently
this idea of gradients was not considered to have been standard and they
were put on it for twelve hours a day, seven days a week.  Now, during
this period of time, several things were to happen:  1. Ethics handling
was to be done on these 16 people.  They were to receive a Comm ev and
other ethics handling as required and ; 2. They were to do this running
program and presumably be rehabilitated and recycled, if you will, back
into the Church.  In the earlier tape I made, some people got the
impression that these individuals were just simply being victims of this
activity and I want to correct that impression.
 
     David Mayo and those people that were around him worked very hard
using standard Church lines, knowledge reports, write ups of one kind or
another, to try and solve this dilemma that they were in.  This sort of
forced ethics situation, the fact that they were held captive, they were
guarded 24 hours a day and those sorts of things.  The idea that they
were just victims of this is far from the truth.  They were working very
hard.
 
     That's not to say these people were treated kindly, or that this
was a very pleasant time for them, because it certainly wasn't.  They
were out in the middle of the desert, they were being forced to run
essentially all during all the daylight hours, and it was a very
difficult period of time.  You can imagine what it would be like,
running in August, in the desert, around and around a tree, at about a
50ft radius, all day long.  It was devastating bodily for them.  They
lost a tremendous amount of weight as a result of this kind of stress on
a body.  Many of them suffered from physical maladies, from sprained
ankles, pulled ligaments to the actual loss of teeth as a result of the
body leeching minerals out of it's own system.
 
     This was a terribly difficult period of time for all of them, but
these were individuals of enormous commitment to the Church and they
were really knocking themselves out to not blow and to consequently take
on the apparency of being an enemy.  Because it really was their
intention to sort out and resolve any difficulties that were there.  But
also, this period of time was not without its humor as well.  People in
the most adverse situations can make adjustments and find ways to live
their lives in spite of these horrendous events.
 
     Dave Mayo tells a story of him being assigned his own particular
tree, separate from everybody else.  The reasons for that are not
completely clear but, none the less, it was felt important that he be
completely segregated from the group.  They had a supervisor whose job
was to watch them during the day and make sure they didn't stop running;
that their rest periods were not excessive and so forth.  The two trees,
the one tree the balance of the people were running around, and David's
tree, were apparently a considerable distance apart.  One person
standing in one spot could see both trees but, it was a good walk from
one to the other.
 
     So, what David would do is:  sit down and the supervisor would of
course, begin to walk across the intervening space to get to David.  By
the time he would get there, everybody at the other tree, was sitting
down.  So, the supervisor would say to David, "Come on, get up and get
going here," and David would comply and get up and start to jog around
the tree, or whatever, and the supervisor would turn around and, of
course, would now have to head back for the other tree, because
everybody else there was sitting down.  Right after he would pass the
half way point, David would sit down, so, he would then turn around and
see David sitting down but, he was past the half way point , so he would
go and handle the other ones and apparently, they caused this fellow
considerable excess walking back and forth between the two trees as this
period went on.
 
     At any rate, the result of the Comm ev was that David and virtually
everyone else connected with the Comm ev, were found to be suppressive
people and were going to be expelled from the Church and so forth.
David will be issuing or has already issued a not inconsiderable paper
on his position regarding what happened and I don't presume to speak for
him here, but, suffice it to say here, the findings were not from his
point of point, just, and I have seen substantial evidence that supports
that point of view.
 
     What we're going to do now is, we are going to return to looking at
what the RTC, the Religious Technology Center, has been doing, or had
been doing since that time.  To clarify something, the RTC was
incorporated in California in Jan of 1982.  It was clear that the IRS
was not going to simply roll over on its back and say, well, hey, if you
guys say that these trademarks that have been donated to the RTC are
worth 42 and a half million dollars, or whatever the appropriate dollar
figure would be to have offset the taxes, if you guys say that they are
worth that much, that's good enough for us.  The RTC, was going to have
to demonstrate in some sort of a real way that it really was in control
of the trademarks, that it was more than just a paper transaction and
two, that those trademarks really did have some significant value.
 
     So, the first step that was done in early 1982 was to put together
all new paper work for the Class 4 Churches and above.  What was done
there was to make the RTC, essentially the senior management
organization, responsible for the activities for all of these class 4
orgs, and that paper work gave the RTC sweeping powers over the
Churches.
 
     They could send groups of individuals into a church, the books
could be examined, the Pre Clear folders could be examined, the personal
space could be inspected, personnel could be pulled in and sec checked
and otherwise handled.  Nothing essentially could be done to stop those
activities from going on.  None-the-less, it was well understood that
the RTC was to benefit the Church so, the resistance to this was not
terribly great.  An additional portion of the gross income of each
church was also to be paid to the RTC in exchange for that organizations
being allowed to use the trademarks.  My information is that, there was
an additional 5 percent of the gross income.
 
     Once that was complete, apparently in the spring of 1982, work
began to relicense all the Missions on a worldwide basis.  That is a bit
more difficult a task because missions exist in many more locations than
class 4 orgs and above.  And the paper work had to be constructed in
such a way, that it would be legally usable in every locale.
 
     That was a considerable task and they worked during the bulk of the
summer to get that paper work together.  In the early fall, around the
beginning of Sept, the new mission charters were mailed out to all the
missions on a worldwide basis.  This consisted of a new charter that
made the mission subservient to the RTC and new papers that had to be
filed with the state or federal government, depending on where each
particular mission was located.  A time machine was also sent along with
these papers, that they were to be signed by the mission holders and
filed with the state, Let us say, certified copies were to be received
back and forwarded to the RTC.  All this was to be done by Oct 1, 1982.
 
     Compliance was pretty good.  It wasn't really clear what this RTC
was all about during the period of time but, the changing of mission
incorporation paper work was fairly routine.  It had happened any number
of times over the past years and nobody gave a whole lot of credence to
it.  There were a few missions holders who had apparently read these
materials carefully and had some objections, but, some fairly heavy
handed tactics from the RTC got those papers filed and forwarded it in.
The stragglers were gathered up and, for the most part, all of the
papers that could be expected to be gotten were indeed gathered all
together by 14 Oct 1982.
 
     Within 72 hours the infamous San Francisco mission holders meeting
was held.
 
     It is worthwhile to know that a complete transcript was made of
that meeting and was published and I invite you to try and get a hold of
a copy of that because it makes good reading.  I would also, however, be
cautious because there are two versions of it.  There is a very severely
pared down edited version and there is quite a long version that's
perhaps 40, or even 50, pages long.  That's the one you want to see
because the content of that meeting is pretty scary.
 
     Mission holders are told that if they don't comply with what the
RTC says, and what the RTC says is source, that their right to use the
Tech, the rights to call themselves Scientologists or be Scientology
missions, will be simply canceled.  If they don't comply with those
cancellation orders, individual mission holders will be either civilly
or criminally prosecuted, or both, and there were a variety of threats,
to throw them into jail and other activities of that kind.
 
     In addition to all of this activity, groups of individuals are
going to be sent around to investigate the missions.  They are going to
look into their books, review their tech and so forth, and each mission
holder is going to have to pay for the privilege for having this done.
The tariff for doing this is going to be exactly 15,000.00 dollars per
day, payable in advance, in cash.
 
     The mission holders meeting then ended and the individual mission
holders went back to their missions and these teams of investigators
came to the missions as promised.  They arrived, they charged the fees
that they said they were going to charge, and within 10 days after that
meeting was completed the RTC and the people doing those investigations
had collected in excess of 2 million dollars in cash.
 
     25 missions of the 98 missions in the U.S. network either defected,
that is, left the Church, or were bankrupt and closed their doors.  The
Westwood mission, here in the Los Angeles area, was severely hit.
Literally every dollar from every bank account they have was taken out
and given to the RTC, and/or these teams of investigators, either in
fees or in fines.  In addition, an agreement had been made previously
that those missions that had been chartered prior to SMI (Scientology
Missions International) would be allowed to keep their charters and they
would not have to buy a new charter from SMI.  That agreement was
canceled and all of those missions previously chartered now have to buy
new charters at 35,000.00 dollars each.  The Westwood mission ended up
with fines of approximately 30,000.00 dollars, plus having to buy the
new charter at 35,000.00 dollars, bringing its total fees to 65,000.00
dollars.  That was a financial burden that that group has yet to recover
from.
 
     They lost their ability to advertise, the staff went on half or no
pay and it's been financially rollercoastering, or very rocky ever
since.  Other missions found themselves in similar positions of either
financially exhausted or administratively shocked as a result of what
had occurred.  But, the mission network was now thoroughly under the
control of the RTC and its enforcement arms, the financial police, was
run by the financial dictator, a young man whose name is Wendell
Reynolds.
 
     The next target of these individuals was the field auditors.  These
were groups of people that were using scientology trademarks without
paying their fair share.  A meeting was called in Dec. in Los Angeles to
gather all the field auditors together to announce the fact that a major
campaign was being launched to license all the field auditors into an
organization called I HELP.
 
     I HELP stands for the International Hubbard Ecclesiastical League
of Pastors.  This was to be the licensing body for field auditors and
the requirements for membership in I HELP were:  a 100 dollar per year
membership fee, plus 10 per cent of one's gross income as an auditor,
again, payable to I HELP.  That would make you a member in good
standing.  Additionally, you had weekly stat sheets that you were to
fill out and you had to sign a contract to I HELP, canceling all of your
previous agreements with the Church and with L Ron Hubbard, and stating
that you acknowledge the RTC, essentially as the holder of the
trademarks and as the senior organizing body over the I HELP network of
auditors.
 
     The meeting in Los Angeles was held in Levinen (sic) Hall, and it
was very well attended.  Estimates range from 300 to 600 people
attending and, when the meeting began, a question was asked, "How many
people in the hall were field auditors?"  Virtually every hand in the
hall was raised.  During the course of the meeting, field auditors were
told that I HELP was going to stamp out squirreling and if you knew of
somebody who was squirreling and couldn't get fast enough action from
the Church you were empowered at this point to take that person out into
an alley and, if you will, explain it to them by hand.  This kind of
vigilante ethics did not sit well with the field auditors and you could
tell, I could tell, sitting in that meeting that discontent growing
amongst the group.
 
     They were additionally told that if they failed to comply with I
HELP, if they failed to make folders available when they were demanded,
to pay their fees and so forth, that they would be civilly and
ultimately criminally prosecuted.  Once again, this did not exactly
bring in everyones good indicators.  About two thirds through the
meeting another question was raised, "How many people here are field
auditors?", and looking around the room, it appeared that less than a
dozen people raised their hands.  So, there was a considerable change in
the number of field auditors present just during the course of the
meeting.  None-the-less, the I HELP plans went forward, that meeting
ended, and various people who had indicated they were field auditors
were given copies of the contract and told to sign them on the spot.
 
     Subsequently, people have smuggled copies of the contracts out and
they are available to read.  They make very interesting reading indeed.
What they demonstrate is that the RTC is indeed in charge of the Church
and via their various enforcement arms, can indeed fine, and otherwise
prosecute, or go against field auditors.  As a matter of fact, I'm
acquainted with a field auditor who was handled in this fashion.  He was
called into a local org.  He was told he had been investigated and found
to be the center of a certain amount of discontent in the community, and
that he was going to be looked into.  He was taken to his office with
five members of the finance police and others.  He was what I call 'gang
sec' checked, that is, he was taken into a room and sec checked by more
than one person at a time.
 
     While that was going on, his personal files and all the materials
in his office were searched and at the time that the sec check was
completed, it was announced to him that he owed the Church fines in
excess of $30,000.00.  One of the fines that was levied against him was
for committing the following heinous act:  He had two pre clears on his
lines, one of whom was in the business of arranging tax shelters, and
the other was in the business of drilling for oil.  These two
individuals were introduced to one another on a social basis.  In
discussing what they did for a living and so forth came to an agreement,
where by they would make a tax sheltered oil drilling program together.
Some money was invested in putting this program together and this field
auditor was told this was illegal, that these individuals should have
been putting that money on the bridge.  His having introduced them
consequently was a crime and he was expected to pay a fine as a result
for doing so.
 
     So, I HELP did not become a terribly popular group in Los Angeles.
I don't know specifically of other instances of this type but, I have
heard stories that such things have occurred.  The one I just related to
you, I know about very specifically.
 
     During this period of time, as you might imagine, mission
statistics crashed.  Now the LRH Birthday Game, which was due to expire
on Mar 9, 1983, based on LRH ED ((Executive Directive)) 339-1, dictated
that the orgs were to expand by 5.4 times prior to that date.  This was
the Birthday Game target, and the crash of the mission stats didn't do
that any good.  A telex was sent to Los Angeles, to the finance police
and others, saying that 250 people were to be gotten to Flag before
March 9, 1982.  Someone came up with a bright idea:  let's get a hold of
people in the field, the idea went, who have large followings of
individuals, and we will use those people to help reg these followings
and get them off to Flag.
 
     The first person that was approached in this regard was a man named
Richard Stewart.  He had quite a large number of people that were part
of, or had participated in, seminars and courses that he had given on
financial management in one guise or another.  He had given a course on
How to Manage Real Estate, or How To Invest in Real Estate, a course on
How to Be a Millionaire and things of that nature.  Richard Stewart was
asked to cooperate in this venture, to essentially pull his entire staff
off their daily work and put them to work on this regging program.
 
     When he declined, although not unpleasantly declined, he was
nonetheless accused of being a squirrel.  He was ganged sec checked in
his offices and his entire staff was called together and told that
Richard Stewart had duped them, that he was a squirrel and a bad guy and
that each and everyone of these staff members had the responsibility to
get busy and gather together every single person who had ever taken a
Richard Stewart course and each and everyone of those individuals would
have to go to Flag and do the Keeping Scientology Working course.  Now a
number of individuals asked why it was necessary to go to Flag to do the
Keeping Scientology working course, when there were at least 4 major
orgs right here in the Los Angeles area.
 
     The reasons that they were told was that the Los Angeles area was
significantly out tech, in that Richard Stewart had been allowed to
operate in this environment and no one had written up reports to stamp
out his squirreling.  Additionally, they were told that, because the
tech was so far out, they would have to go to Flag to be in the
appropriate environment to receive this tech upgrade, if you will.
Several individuals raised the question as to whether or not it wouldn't
be more cost effective to bring supervisors from Flag here to Los
Angeles, since there were 200 or 300 people in need of this course and
wouldn't it be more cost effective to do it that way, given that a
Scientologist ordinarily gets more case gain from auditing and training
than from air fare.  It seemed worth while to put the airline ticket
money on the bridge as opposed to giving it to, let's say, National
Airlines.
 
     That idea was refused as well.  Of course, it's very clear why.
The idea was to get these people to Flag, to have them buying services
at Flag, buying accommodations at Flag.  And many of them, if they
complained even in the least bit, were immediately put onto sec checks.
That money that they had set aside for auditing was used to check out to
see if they had overts and that's why perhaps they were complaining.
Many, many thousands of dollars were consumed in doing unnecessary sec
checks on people at Flag; although, you may be able to get some argument
as to whether they were necessary, speaking to a number of people that
went and actually had them, they were quite sure that they were
unnecessary.
 
     The target apparently for this program was to collect 3.8 million
dollars at Flag.  According to an interview that an individual I spoke
to had with a registrar at Flag, this program fell short by about a
million dollars but, was none the less successful to the degree of
collecting over 2 and a half million dollars.
 
     The mood in the Los Angeles area became very frightened.  Other
individuals in the area were similarly approached by the finance police.
A doctor, a chiropractor, a health specialist, were all approached.
Their people were pulled in, they were told that these individuals had
been squirreling, or were otherwise altering the tech and individuals
from those groups were ordered to go off to Flag and do the Keeping
Scientology Working course as well.
 
     Some were intimidated, many were told they would not be permitted
to return to the bridge at all if they failed to comply with these
orders.  So there was a considerable atmosphere of fear generated and to
this day the atmosphere has not diminished.
 
     Now, there were still of group of Scientologists that were not
paying their fair share to the RTC and/or Church organizations of one
kind or another.  That was those people who owned businesses.  So, the
World Institute of Scientology Enterprises, or WISE, as it's commonly
called, was beefed up.  A new ED International was appointed to WISE,
and WISE was put on a program to sign up Scientology businessmen to pay
their appropriate tithe.  The tithe was to be a yearly membership fee of
$250.00 and 6 percent of the gross income of the business, plus 7
percent of the net income of the business.
 
     As you might imagine several of the businessmen that were
approached in this regard were not delighted.  This particular policy of
putting these people under contract to do that is currently under
review.  We're not sure whether they're going to continue to pursue that
or not.  The amount of anger that that generated was immeasurable.  An
additional program was under consideration and was actually begun
apparently in one location, where simply Scientologists who worked for a
living were told that they were to pay 7 percent of their gross income
as a tithe, because, it went on to say, they were using Scientology in
their lives on an everyday basis and would not be doing as well as they
were doing were it not for that.
 
     Well, that pretty much summarizes the down side of what has
happened.  I think it brings together a number of the pieces of this
story, to let you know in part what has happened to bring this new
management into power.  The new management bases its power on its
ability to manage the comm lines to and from Ron.  The people managing
those comm lines are three:  Annie and Pat Broeker and David Miscavige.
Those communication lines are their power base.  Those three individuals
have been appointed the trustees of LRH's estate.  Each one of them is
to receive a fee of 5 percent of the total amount of the trust as a
trustee's payment, if you will, for being responsible for that
particular task.  Obviously there's a considerable financial incentive
for them to stay in that position.  The finance police, and its man
manhandling of the Scientology public, has been principally, to the best
of our ability to understand it, a grab to increase the sizes of those
trusts and to increase the Church's monetary power on a worldwide basis.
 
     Recently, on June 12, 1983, to be precise, the existence of the
Religious Research Foundation was exposed in the St Petersburg Times at
St.  Petersburg, Florida.  In that article, it was revealed that certain
monies from the Religious Research Foundation were being paid to LRH
personally.  That would be what is called in tax parlance, inurement.
Inurement is the passing of money from a non-profit corporation into the
benefit of a private person beyond simply that person being on staff and
receiving a salary.  Inurement is adequate evidence to lose tax exempt
status and the Church is apparently in considerable danger as a result.
If the IRS finds against the Church, and that finding could be based on
the fact that Ron himself received substantial amounts of money, that
could cause the Church literally tens of millions of dollars in back
taxes.
 
     Now, there was a tax case filed against the Church in 1973, or
based upon the 1973/74 tax year.  That case was lost and in 1980, in the
early part of the year, a lien was placed on the complex of buildings in
Los Angeles, commonly known as the blue buildings.  A lien was placed
for 6 million dollars as a tax lien against those buildings pending the
outcome of the appeals on that case.  It would not be unlikely to expect
that the IRS would take the Church into court and try to enforce further
tax liens for other tax years based on the fact that this personal
inurement has allegedly occurred.
 
     The Church's response to this potential tax liability has been to
mortgage the various properties it owns, the buildings in Florida, the
Flag Land Base, the Miami Org, the Clearwater buildings and other
buildings there, our investigations have revealed, have been quite
heavily mortgaged recently.  We have learned that other Church buildings
around the country have also been mortgaged.  The purpose in doing that
of course is if a tax lien is filed and the property is mortgaged,
there's no value in the property that can be seized, the worth of the
property has been taken out.  What the IRS in this instance essentially
is liening is the mortgage as opposed to value of the real property.
 
     So, the pressures that have been brought to bear on the Church
financially, tax wise, politically and so forth, have changed the
atmosphere in the Church.  Certainly it is no surprise to anybody that's
been active on Church lines recently, particularly in the Los Angeles
area, that ethics is very very heavy; that security is very very heavy;
that the Church seems to be in an attitude, over all, very worried about
it's survival.  I think there's good reasons for it to be worried about
it's survival and it's time now to begin to look at what alternatives
are present for those individuals that want to progress up the bridge,
who do not want to have to take Scientology services under the kinds of
oppressions that we've been talking about and to pay the kinds of prices
for services that the Church has apparently been forced to charge.
 
     So, there's good news and there's bad news.  Well, you've heard the
bad news.  Now let's take a few moments and talk about the good news.
First of all there are any number of places where one can do the
Scientology bridge.  All around the country there are field auditors and
small groups that have sprung up, that can offer the lower parts of the
bridge, the Clearing Course and the OT levels.  Such groups are not, to
the group, absolutely standard.  There are some that are good and some
that are bad.  Scientologists now have a new responsibility, those that
want to continue in what we call, alternative Scientology settings, and
that is they have to look into them in much the way as they would have
to look into a doctor or a dentist.  They have to check the individual
or group out that they may want to become associated with, to examine
the tech for themselves, to be sure that the auditing and training that
is going on in that location is standard and to make rational choices in
that regard.
 
     It has been certainly convenient over the years to be able to
assign that responsibility to the Church.  I certainly have seen
evidence of the failure of the execution of that responsibility and I
think it may be a boon to all of us to reassume that responsibility,
each one of us for ourselves.
 
     There are new Churches springing up around the country all the
time.  David Mayo and his associates have founded a new church in the
Riverside area; Bent Corydon and his associates have founded the Church
of Scio Logos and they are delivering services, in the Sacramento area
Marvin Price and his Personal Ability Center, or Advanced Awareness
Center, I've forgotten the name precisely, are busy and actively moving
Scientologists up the bridge at reasonable prices.  These kinds of
alternatives are available all around the country.  It is felt among
these groups that the reason these abuses, that we've talked about here,
have been able to occur is because the Church has had a monopoly, and it
has been their intention generally to help to break down that monopoly.
 
     It has been my experience that these groups are not in a games
condition with the Church.  They are not trying to get out there and do
the Church in.  Parenthetically, I don't think that any body could do a
better job at that than the Church itself is doing at the moment.  But,
the point is, is that we all want to get people up the bridge.  We all
want to clear the planet, we all want to achieve the goals that we set
out to achieve when we got into Scientology.  And it is not necessary to
fight with the Church, to unmock the Church if you will, in order to do
that.
 
     There are only certain pressures that really affect the Church in
any way meaningful.  Of course Ron himself is a pressure, the market
place, how much money is available in the market place, is the other
pressure.  And since it has been impossible to get meaningful
communications back and forth to Ron, and since the internal struggles
of the Church as a whole have been controlled by this new group of
managers, the only pressure that really is effective against the Church,
at this point, is the market place pressure.
 
     And frankly, the ideal scene as far as everybody in the field is
concerned over all, would be for the Church to examine the popularity
and the strength of what's going on in the field, to realize that the
tech can be delivered by any number of people, to come it its senses
economically, and to begin to bring the Church back together again,
rather than simply attacking and throwing away everyone that has an
alternate idea.  And you will find that in these alternate groups,
freedom is the watch word and it's very difficult to advocate total
freedom in an environment of enormous suppression and oppression.  And
the alternative groups we have found, for the most part, offer
Scientology in a much less oppressive environment.  And we invite you to
have a look around and see what's going on in your area, to take some
time to investigate the things that have been said on these tapes.
 
     There is an enormous amount of documentation to go along with the
things that have been said and that documentation is widely available.
So, I would invite you to do so.  Certainly, be as skeptical as you
would be if you were buying a used car.  Perhaps, many of us have made
the mistake early on of becoming involved in Scientology, in adopting
attitudes and viewpoints, without taking the time to seriously consider
the ramifications of that.  And this is not a time to repeat that
mistake.
 
     Jon Zegel

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