A second and different type of HCO Franchise is now available in addition to the HCO HAS Co-Audit Franchise.

The new type is the HCO Processing Franchise. It permits an individual auditor in practice to receive immediate bulletins, discounts, and tests, and requires that he remit 10% of his income from Dianetics and Scientology to HCO WW. This permits the individual to run an individual practice or a guidance center without running an HAS Co-Audit.

THIS DOES NOT MEAN WE ARE ABANDONING HAS CO-AUDITS. These are the backbone.

One auditor or several may have such an HCO Processing Franchise but if more than one are considered under such a Franchise, the processing earnings of the group are considered collectively.

This makes two types of Franchise. The first is the HCO HAS Co-Audit Franchise which permits group processing, the running of an HAS Co-Audit, the processing of individuals, and, eventually, training to professional level. The second is the HCO Processing Franchise where individual processing only would be done.

In the case of the HCO HAS Co-Audit Franchise HCO is going to do all it can to help set the Franchise holder up on a permanent basis when he is proved out, helping to establish proper finance, quarters, publications and organizational assistance.

In the case of an HCO Franchise like the first type, we will issue now only an interim Franchise. When it is made permanent after due test of the holder by his use of it, HCO will assist the holder to obtain proper finance, processing quarters and organizational assistance for the activity of individual processing in a guidance center.

There will be a third type some day but it is not available now. This will be an HCO Organizational Franchise where the individual works “outside” Scientology organizations to bring order into larger non-Scientology activities in which he will be helped by HCO as a special activity.

Persons now holding HCO HAS Co-Audit Franchises who wish to exchange their Franchise for an individual processing Franchise may do so. Where the person is not running an HAS Co-Audit and sees no immediate chance of starting one, he is liable to cancellation of Franchise. This offers such a person the right to remain a Franchise holder even though he is only processing individually.

Out of these enfranchised guidance centers we hope will grow clinics, hospitals and sanitariums to cover that hole in the society now apparent. The very unable will need such assistance and we are here providing for it in the distant future.

An HAS Co-Audit activity is basically more important and more immediately needed, but there are those in the society who are not up to co-auditing and we must also remember them.

If you transfer now you do however abandon your right to start an HAS Co-Audit and get HAS Certificates for your group. And with either Franchise you owe HCO 10% of all you make from Dianetics and Scientology. The main advantage of transfer is apparent only in the fact that you won’t lose your Franchise rights if you are not now running an HAS Co-Audit and don’t intend to. For all inactive Franchises will be cancelled within the next 30 days.

HCO WW took over in the U.S. because of a previous randomness in getting Franchise holders started and serviced. Some of the randomness is still about. Some bulletins, unseen by HCO WW before issue, have been sent out from several points in the U.S. which are not factual.

The following information is correct:

All 10%s from Franchise holders should be sent to HCO WW only, made out to HCO WW and airmailed to HCO WW Saint Hill Manor, East Grinstead, Sussex, U.K.

HCO 10%s from Central Organizations in the U.S. are sent to “L. Ron Hubbard, Founder”, which is a special division of HCO.

Contributions for research are sent to HCO WW made payable to the Scientology Research and Investigation Fund.

These items cancel “HCO Policy Letter of July 22nd” mailed from Washington.

Other bulletins mailed inside the U.S. to U.S. Franchise holders requesting 10%s to be sent to L.A. should be disregarded as unauthorized.

Stable Datum: If it’s postmarked HCO WW in the U.K. it’s authentic, otherwise, ignore it.

We will bring order yet. You can assist us by not being dismayed at disorder. When you start to introduce order into anything disorder shows up as the second postulate and blows off. Therefore our efforts to bring order in the society or any part of it will be productive of disorder for a short while every time. The trick is to keep on bringing order and soon the disorder is gone and you have orderly activity remaining. But if you hate disorder, and fight disorder only don’t ever try to bring any order to anything for the resulting disorder will drive you half mad. Only if you can ignore disorder and can understand this principle, can you have a working world — or a working operation, for that matter.

The problems of HAS Co-Audit Franchises have evidently gotten to Nile Adams. A few days ago, when I refused to permit him to overtax Franchise holders, he quit in Washington. His protest was against my refusal to let Franchise holders be made to pay 25% of their gross income for the privilege of being financed. The absolute maximum gross that a Scientology organization can lose to other activities and still live is 18%. A high but workable top is 15% of gross. But 25% gross is unthinkable.

If you become big enough to require as a Franchise holder an HCO office of your own for liaison it will probably cost another 5% of your gross, but you will get all its services and save it on other payroll. But you will never be required to pay extravagant gross percentages while I can still stamp on toes and zap skulls.

Nile has been ordered to 500 hours of processing at his own expense for breaking the Code of a Scientologist flagrantly in public for he really got mad. That he did probably shows he was already under strain. So don’t be too mad at him. He’s a good promoter and when he’s seen the elephant he’ll be back in our ranks again. All he has to learn is to work for us also and he’ll learn that.

Don G. Purcell, by the way, the millionnaire who tried to seize Dianetics in 1951, died last month after a long illness, at the Mayo (MD type) Clinic. As in the case of the late Dr. Joseph Winter, author of much critical literature against Dianetics, Auditors refused to audit Purcell according to my reports.

We are so few at HCO WW and covering so many fronts that we cannot accept the phone calls that keep coming in. In the first place a trans-atlantic call takes usually an hour or two of waiting by one of us before it is fully connected. Such calls have taken 12 hrs to complete. And we have missed completion so often after such wasted time and have had such bad inaudible connections even with domestic calls in England, that it’s no phone.

Use telegrams and cables instead, they’re faster. They have a memory. We can handle them without missing data not put down after a phone call.

In the Manor staff office we have a Telex. That’s a teletype like in the telegraph office. About five minutes after you file your telegram or cable it comes complete and accurate out of our Telex, typed with copies. These don’t get lost. They get instant attention from the Communication guard.

When a small group such as ours at HCO WW are handling indirectly several hundred thousand people, and are handling directly, at any given time, a few thousand and intimately a few hundred scattered all over Earth, we have to have a Communication discipline to get anything done. You’re part of that Comm system, so if you want something done, be brief, to the point, and use:

Airmail — Airletters — Cables — Telegrams.

And you’ll be heard fast.

Be pointless, use phones, come in person, and you won’t be heard.

You are much closer to HCO WW at your letter box or the telegraph office than you would be standing at the Manor’s front door. We’re proud of our Comm system. Use it!

We are making fine progress with clearing. And we have three buttons we want flat on everybody in Scientology. The first is VICTIM. The second is MONEY. And the third — well — we’ll let you know when the first two are flat on you. The auditing command is “From where could you communicate to a Victim?” and it’s flat when the E-Meter tone arm reads clear for your sex and stays at that reading on the command. The second is “From where could you communicate to money?”, and when the tone arm reads clear for your sex and stays there, you’ll not only be well along, you’ll be able to have the stuff.

And now if no past emergencies spring up, I can get on with some other writing.

And any day now, I may get some sleep.