A Brief History

L. Ron Hubbard
  L. Ron Hubbard first published an article in Astounding Science Fiction Magazine summarizing what he called Dianetic Therapy. Stating that with his discoveries he could cure the sick, and increase intelligence. Soon after the article's publication in May 1950 Hubbard started to work on his book Dianetics: The Modern Science of Mental Health (which is still used by the Church of Scientology to this day for beginners to this cult). Six weeks later the book was published and Hubbard became so successful that he decided to established six Dianetic Foundations in major cities around the United States in order to give this new “therapy” but the success did not last and in the Fall of 1950 financial problems began to develop and by November of 1950, the foundations were more than $200,000 in debt. Disagreements began to emerge, as the Medical and Scientific Communities began viewing Dianetics with concern as complaints were made against local Dianetics practitioners for practicing medicine without a license (This caused Dianetics advocates to disclaim any medicinal benefits in order to avoid regulation, a tactic which they still use to this day). L. Ron Hubbard would claim that the backlash was a response from various groups trying to grab Dianetics for their own uses and  when his creation started to get negative press he took one step further and claimed that it was due to a plot by the American Communist Party (Hubbard would later decide that Psychiatry was the origin of all criticism for both Dianetics and his later creation Scientology). And In January of 1951, the New Jersey Board of Medical Examiners began proceedings against the Hubbard Dianetic Research Foundation in Elizabeth for teaching medicine without a license and as a result the foundation closed its doors, causing the case to be dropped. However, creditors began to demand payment for their debts. A Dianeticist named Don Purcell, offered a brief delay from bankruptcy but the foundation failed again in 1952. Due to the bankruptcy, Hubbard no longer owned the rights to the name “Dianetics” however the framework of Dianetics enabled Hubbard to later create Scientology