Alright, this is the first of March AD22 and the subject is the Establishment Officer. The background history of Establishment Officers begins in l950 when I was the Establishment Officer. And what happened was that I bought the desks and gave the lectures and did all the products and did most of the auditing, and tried to do this, that and the other thing. And I worked about eighteen or twenty hours a day, and to some degree made it come off.

We have a dichotomy working here. Now, it will ebb and flow. The Product Officer will continue to make inroads on the very hard won establishing ground that has been won. "And I don't care what you have to do with those CF folders, I want right away eighty-five names out of them..." Of course he gets the eighty-five names this week and then nobody's developed any eighty-five names for next week, because CF didn't get established. Everybody in it was writing letters and they never got a chance to file in all the requests for training and processing. You know how bad establish, you know how bad establishment can get?

When I dropped off of the scene, there was an instant collapse. These organizations ran, but they ran to such a degree with out-ethics and this, that and the other thing, that they eventually went down the drain. Those were the first Foundations. I wasn't an officer of those foundations, that is I was an officer of them in a courtesy, but I was not the Board and I was not the prime mover. Actually the Board of Directors was a very, very bad barrier to getting anything done. Mostly, mostly because they had ideas that they should be popular and do the usual, and popularity is one thing and truth is another.

A radio ad in the Los Angeles area in l950 was pulling in a hundred and twenty five new people a night. They came in, they were given cards, they were given a very bright lecture, they were very interested, they were given these cards to fill out as to whether or not they wanted training and processing, and what was their home address and phone number. The cards were handed out to them. The organization left them on the chairs, they fell off the chairs and on the floor, and eventually an old showman, the janitor, sort of got the idea maybe he shouldn't be burning up all this trash and started turning them into me directly. So the line which was established was the janitor swept the application cards up off the floor, sorted them out from the chewing gum and handed them to me. That was the operating line of PE, l950.

And the reason why the university has never made it, the reason why psychiatry would never make it, the reason why the medical doctor would never make it, the reason why the normal garden variety research man would never make it, is because everything he researches is debted, that is to say edited, against the reputation of the institution. "Reputation is all, truth is nothing." And that is the downfall of the American or any other university, or any research organization or any research man.

The organization was making a fortune, until it all just went bong bang crash thud bong on just too much dev-t, out-ethics, dishonesty, various things. Somebody decided he'd like to cut himself a whole piece of the organization, things of this character. But the organization could be put back together again to run at that high rate of speed anytime, any minute. We have found out it doesn't matter what the papers say, it doesn't matter what Time Magazine says, it doesn't matter what the psychiatrists say, the word of mouth in the streets, it doesn't matter one bit at all. It doesn't matter how many football matches, it doesn't matter how many this, how many that and so forth. An effective, efficient organization which is viably running and so forth, makes a mint. It makes money exactly in proportion to the amount of production done by each individual post in it without dev-t. And that is how an organization is put together.

So, when you found out that this or that was necessary to resolve the case and you found out that this or that was the way it was, you found out that this had to be edited because it might not be popular, because it might not be acceptable to the people, or the best people who were running people into the very best possible grave. So that, that type of editing of the organizational actions and that type of government is a government that will fail.

Now, let me give you a tremendous flaw that has been going on. They hat somebody, that's a flaw, they hat somebody. There's a period there, see? There's the remainder of the sentence, hat somebody and get him to produce what he should be producing on the post. And that is the full sentence embraced in the word hatting. And that doesn't make the Establishment Officer a Product Officer at all. Now, let me show you how this goes.

The normal management lines which are conducted in the world are conducted, when they are successful, by men in a mood of desperation and exasperation, they are carried on the backs of one person. And there will be a half a dozen stalwarts within a very large group that keep the show on the road one way or the other over innumerable slumberous, alter-ising, editing, all-for-the-best mobs. And as a result, the life span of organizations approximate the willingness span of their prime motivators. And after a fellow has wrestled with it just long enough and been caved in and done this and done that, why, he tends to move off or quit to some slight degree. He says, "Well, I'll put my attention on this now, and I'll try to make this go right," and abandon certain other lines and sectors. And then things cave in here and there, and then with great heroism he rolls up his sleeves again and gets in there and tries to make the machine go, and leaves bruised feelings and human emotion and reaction widely spread, but he does get something done. And then he will relax and it will tend to fall apart.

There was an OOD item which will probably be in the thing, but I'll just read it off to you rapid fire. A new guy comes on post, see; this isn't all, I'm going to continue beyond this, see; new guy comes on post. The Establishment Officer would say something like this, "There you are on the org board, there's your desk, here are your supplies, here's your hat pack, the guy you relieve can answer your questions, here he is, go ask, and so forth, read your hat pack, I'll be back in a couple of hours to check you out.

You ask any of the executives who have been the motivator, motivating, that is to say the causative executives of Scientology organizations and they will tell you that that cycle is too true. And it is the cycle of civilizations, not just the cycle of one organization. Anybody who has been in there pitching can count the number of times that they have put together a Dissem Division or an HCO or a Tech Division or something like this. A missionaire goes into an org and he sorts out what he's supposed to sort out. One week later it's gone. The stats show it.

"Now, what's your post? Who's your senior? Now, what do you produce on this post? Take hold of these cans. What are your misunderstoods? What word is it?" Method four. This isn't necessarily how you guys go about it, but this is just a review of ways I have hatted people and gotten them. "What machines do you have here? Where's your instruction manual for operating that machine? Study it for an hour, identify all the parts, I'll be back in an hour to star rate you on it. I'm sorry you're confused. Sit right in front of me, sit right here and confront your area for two hours. Good. We'll run reach and withdraw on your boatswain's locker, or typewriter or desk or whatever it is."

Now establishment, establishment is then the key to organizational prosperity and it has never been recognized to what degree establishment accounts for the prosperity and longevity or long life of an organization. What happened to a Joburg or what happened to a Washington or a London or a St. Hill? Well, they were put together, they should have run, but in a relatively short space of time they fell apart. Now, why did they fall apart?

By the way, do you know how to run reach and withdraw on a steward? You have him walk into the dining room and walk out, and walk in and walk out, and walk in and walk out. And that's running reach and withdraw. Berthing steward, walk into the cabin, walk out. But you know you won't do that unless you've done a two hour confront first? The gradient of the TRs. These are work TRs, and they work. All the TRs can be done.

Man in his cultural, anthropological, ethnical and other brain cracking word background, is essentially a nomad. And when you have a society which runs at high tension and where the values in the society are tremendously multi-changeable, where the society itself is enturbulative in the extreme, the individual society member is knocked from here to there to back and forth and around and around. And he himself is in a state of foment and a state of change, continuous state of change.

You would just be amazed, around here someplace is the account of Bill Robertson hatting somebody by reach and withdraw on one of the wildest dev-t artists we had had for some time. And he had him walking into the dining room and walking out for quite a while. And the guy would go in and he would give him all sorts of cognitions and he would come out and so forth. And it is a howl, because the fellow actually was one of the worst that we had anywhere, he just caromed from this and that. All due respect to it, after this sort of thing he did produce on his post, he did function on his post and is doing quite well as a Sea Org member now.

The number of, the number of addresses that have to be changed in an organization; you can have your address list write-up and then the address change is, backlogs or drops behind, and you get immediately an out-of-date mailing list. Why? It's worst in the United States where the society itself is the most chaotic, but it is certainly bad enough in England and Europe. The society itself doesn't take care of the fellow's various rights. Oh, take a simple matter of a divorce. Take a simple matter of owing somebody for some blackberries that weren't fresh on delivery which you now won't pay for. Well, I suppose you could spend a hundred thousand dollars and so forth trying to clear up this case of blackberries.

Now of course, there would be your repetitive actions and your, of, or there'd be your acknowledgements of three and so forth when you're repiti; you'll find a lot of guys who are on, on their posts who have gone downhill because they don't acknowledge and they've never been acknowledged. They don't report, they don't say they've done it, things like this. Their TRs go out, you see, on their post. TRs have a lot to do with this. Alright.

If there is an injustice in the United States, the United States government's probably committed it. As a result, these injustices and these various economic social stresses are such that you get people who are PTS to the society, cannot concentrate well on what they're doing, and who are themselves in motion; they themselves are unstable. So, you've got a Dissem Sec today and you haven't got one tomorrow, and you've got a Registrar today and you haven't got one tomorrow, and you don't have a Distribution Sec today and you're not about to get one. In other words, the ebb and flow of personnel is the primary disestablishing factor, the stresses the personnel are under and their nervousness and restlessness in the society.

"Now, let's go on with this hatting. Read Problems of Work, I'll be back in four hours to see if you've finished. Alright, go to admin cramming and attest if you make it. Buy Volume 0 from the book store and read it. Oh, you haven't got any pay? Well, we'll arrange for some credit for you or something. Now, come over here and we'll show you the comm system. Here's what the comm system is, this is how it runs." And it says it goes on for weeks. Now, the funny part of it is that would be a Hatting Officer operating, you would, could be more detailed. You as an Establishment Officer could actually drop back and see if he actually was doing his confront, see if he actually was reading his Problems of Work, see if that, this thing was going on.

Now, our organizations are built out of people so we have an analogy in a machine whose parts are there today and gone tomorrow, whose parts run all right today, the oil filter works okay today, but tomorrow has a dent in it mysteriously received. In other words, that machine would have an awful time running. Today it has a cog wheel, tomorrow it doesn't; today the spark plugs are there, tomorrow they aren't. And so, the economic stresses of the society make no allowance for the fact of this instability. And day by day all of the hustlers and salesmen and bill collectors have to be paid. The landlord has to be paid and this one has to be paid and that one has to be paid.

Now, these are degrees of hatting. On the job training was the modern solution to the fact that university students who had majored Medieval Arabic or something, were producing and doing nothing and couldn't do their jobs in England. English engineers were getting bad, they were sitting in the little cloisters of their offices wondering "what wall?" So they introduced the idea of on the job training, and they sent them to school for six months and then they sent them over into an architect's office for six months or a shop for six months or an engineering firm for six months, and they alternated training and practical. And it wasn't just practical.

So the organization which is disestablished, suddenly or gradually, yet is still carrying an economic burden. Its economic burden does not decrease, it increases. And that is because the money itself at this stage of the game is inflating. And that's because there was no establishment officer to hat the President of the United States and give him a few facts of life. Instead of that, he read a book by a pederast named Keanes who, part and parcel of the Fabian society, the honored guest of Stalin and the husband of a Russian ballet dancer, has dominated the political economic scene for decades. They're just getting wise to him now and starting to throw him out as the primary textbooks of the university. He advocates infinite inflation, the keynote by which he runs is "create want." He's sure going to create it eventually.

Now, we're going to step that up enormously. We're going to instant hat him and have him produce the product of the post, and then we'll hat him a little more and have him produce the product of the post, and then we will hat him a little more and produce the product of the post, and hat him a little more and produce the product of the post. We're going to do on the job hatting, so that you could fully expect to bring in a brand new typist, into dissem, letter registration, and have her immediately getting out some letters. And tomorrow, they're going to be better letters because you're going to spend some time in the middle of that hatting her. And then you're going to have her produce some more letters, and you're going to have her produce post. Post production, post production.

But that was not the economic textbook which built the United States. There were two Hungarians used to tear around and advise the heads of state. I'm sure they were backed up by the Council of Foreign Relations or someone like that. But they used to go around, and they'd see this country, they'd go in and they would give the head of the state all this advice, and then they would move on and they'd go to another country. Somebody got interested and ran their back trail, and their back trail was followed down to ruin and bankruptcy each time they had advised anybody to do anything. They were Wilson's key advisors just before the deflation.

Now, I had somebody the other day get the FMA and track the FMA around to get him to do an investigation. Now, in that wise you could see what the FMA was up against and what he became confused against. Now, he unfortunately ran down his criminal to being one of the people he couldn't touch and the other person was a bit high up. I don't know if you heard the aftermath, but he couldn't quite complete his investigation and he didn't complete it in a half an hour, but he got it narrowed down to two, neither one of whom he could tag. But he was probably for the first time doing something that resembled an investigation.

Now, England's economics were not built by two Hungarians who drifted in with some weird oddball Keanesian theories, so they changed their tech. And nobody has ever done an evaluation in any of these economic scenes. First and foremost, they don't know how to evaluate, that's the best reason. But the other is that governments are on a sort of a suicidal kick, they are not on a constructive kick, they are on a destructive kick. The only answer a government has to any given situation is violence. You press them a little bit and you run instantly into violence. You do not run into anything sensible. They cannot be talked to. Now you could see violence occurring or being pushed out from a government if they're attacked by violence, but mostly their violence is against the weakest and the most easily controlled people.

Now, that of course could speed up, that would get better, that would get better and better. And that could be steeped up to a point where the guy all of a sudden would be a top investigator the like of which you never heard of. "Oh, I know who that is." You know, it's almost that, you know? "The modus operandi of the crime is so-and-so and so-and-so, the head of it must be so-and-so, up to it again. Let's go out and check this, there's about three more. Pang pang pang did whop whop whup, that's that investigation, bing."

So, here's an economic scene which basically is not solved by good sense but is solved by off-the-cuff squirrel tech and which gives the establishment of anything a curve, because you can't establish it today on X dollars and expect that it will run tomorrow on X. So you could establish a whole organization beautifully to run with a Financial Planning number one, and three months later with birds like these Hungarians, oddball textbooks like Keane's, and you will suddenly find out that your Financial Planning number one no longer matches. In addition to that, the economic stresses on the staff members that you are dealing with will have increased.

Now, people will tell you, and I have C/Ses right now telling me, "But you see, I know where to look for the technology, so I don't really have to know it, do I?" Aah so, aah so. A C/S of all people has to know of the existence of the technology so he can tell the auditor to look it up. He has to know the existence of the technology so he can plan and put it together with the case. I see C/Ses stumbling around on things that I find it very difficult to credit that they would stumble around on. Our C/Ses are not all that bad, but they make mistakes, they make mistakes. Now, why do they make mistakes? They just haven't been over their materials often enough.

And then this therefore is a disestablishing action from the point of the staff member, adding to his restiveness, his move-on-ness and so on.

It's a very funny thing, I became an absolute genius on one subject through my formal education. And that was basically because, for some reason or other, it was always in question that I had done it, because I never seemed to get a formal credit for it. I would either leave a class early before it was all over or the examinations or something I never really failed an examination on, I just didn't ever get a formal completion. I've studied basic physics, the same textbook, five times. That's an awful lot of times to study basic physics with all of its laws and so on. I have studied it within an inch of its life five times.

Then some bird comes in and tells some auditor who is stupid enough to listen, that he can make twelve hundred dollars a week if he just goes to work for the Keokuk Franchise. And the auditor is damn fool enough to pick this up, goes over to the Keokuk Franchise and makes one dollar and twenty cents. But, there is an effort also, then, to pull off trained or staff-experienced people.

One day, maybe you've heard this story, but one day I was walking through the senior's lab at George Washington University, where I "never went," and I found a senior sweating blood. He happened to be a pal of mine, I was a freshman at the time, but he was a pal of mine. And I said, "What's the matter?" and he was trying to design a railroad locomotive and he didn't know how big to make the fire box. I said, "But that's easy. It's the number of BTU, British thermal units, that you can recover from coal efficiently at cold water percentage of about nine or eight percent. And that converted into power..." And he says, "British? British thermal unit. Oh yeah, I've heard something about those." "Yeah," I told him, "Well, you go look it up, and you'll see that..." "Gee, thanks." Here was four years of education, fancy education, hanging up on high school physics.

Now, the answers to these things are not as grim as they look and they are not just establishment, that you get it into concrete and then it stays in concrete and then the Establishment Officer is no longer needed. And if you have that view of an Establishment Officer, that you're going to build something that there it is and all you have to do is dust your hands and step back and it will stay there, throw the idea into the nearest waste basket because it isn't true. You are dealing with an economic society which is restive. You are dealing with people who are nomadic. You are dealing with governments that deal in violence against their populations. And you get shifts and changes, both in the society around you and within the staffs you are trying to establish.

Do you know that C/Ses hang up because they don't know what an engram does? They don't know what it's capable of. They'll send a guy to medical right after he's had a Dianetic session because he's suddenly broken out with a rash. Never occurs to them, "Hey, I must have restimulated, must have restimulated something," because that's caused by an engram. I have to take C/Ses back to their basic textbooks, basic textbooks. I never bothered to teach them the upper story of this. And you'll find out with every post that isn't doing its job well has its basic tech fundamentals out, to the point where they don't even know they exist.

So an establish and maintain established is the index of it all. It's establish and maintain, and establish and maintain, and establish and maintain, and establish and maintain, and establish and maintain. And it's all gone one Monday morning when you look in because the guy you had been counting on to do waffle waffle waffle and so forth, he's gone. His wife just jumped over the cliff, or something has happened and that's all bwow! So at that moment you get a brilliant idea and you establish and maintain. You're handling stuff that makes quicksilver look like iron.

You'll find you're just sweating, absolutely sweating trying to get a letter registrar to write a letter that doesn't ARC break the screaming hell out of somebody. And you get him to check off on the policies and you get her to go to cramming, and then you'll find out she never heard of the ARC triangle. You think I'm kidding? I just found it, not in a letter registrar but in a person who was writing letters. Never heard of it, didn't know anything about it, couldn't handle the staff members around him or anything else. He had never heard of the ARC triangle. And you say, "That's impossible." It's very possible in the absence of an Establishing Officer. Administration these days is just like auditing. There is the policy letter that resolves the case. There is a thing called Standard Admin. There is a way to file a CF. It has to do with cabinets, and it has to do with folders, and it has to do with a prefile set of baskets.

So the Establishment Officer possibly is better named as the Establishing Officer, because day to day and sun through sun, the Establishing Officer's work is never done.

And who's out there right now at AOLA putting in those exact standard actions but Herbie. And he's actually operating really as an Establishing Officer crossed over into a Product Officer, because he's making it produce. But he went out there and he found three children were part of their staff. And he found one guy he couldn't hat at all, so he picked him up by the scruff of the neck. He couldn't get the Ethics Officer to do anything so he handed him over to the AG who disposed of him very promptly.

Now, if you're dealing in that much of a quicksilver society, with that much disappearing; I might as well give you the bad side of the picture, don't you see; then you must learn how to establish very rapidly. And rapid establishment is the answer. So that there are three types of establishing targets: Instant, medium and long. You're always dealing with all three. Your instant doesn't get graduated up to medium, and your medium gets graduated up to long, and you finally make all those and that is it. You are always dealing with an instant while you deal with a medium and while you work on a long. So there's the instant, medium range, long range; the three types of targets. The successful Establishment Officer will have all three of those balls in the air simultaneously.

Now, this is the kind of thing that people at command level, driven around the bend trying to produce, never get a chance to look at. They could keep saying to Sally Glutz, "Please write a letter with some ARC in it, please." I guess we've got to go into quality of letters instead of quantity. Now, it's against policy but we'll have to go into quality of letters because we just, I just keep hearing all the time from these people saying, "I never want to hear from you again," and so forth. And he really hasn't got time, and frankly he hasn't, to sit down with that person and find out where the hell this gradient is missing. On this one letter writer he would have found the incredible, unbelievable thing of somebody who had been around for ages and had never heard of an ARC triangle. Didn't even know that if you wrote pleasantly you would get a pleasant reply. That was how far that was out.

We will have a Dissem Sec trained by next Tuesday, but right now there is a Dissem Division which has no Dissem Sec on it. If we blew this fellow off, why then we will have to on-post hat him, but he's almost finished with his OEC and that would be a shame. So how do we head this division until he gets there? This is the type of problem with which one is dealing perpetually. And the only advice that I can give you is, do it.

Now, what does it take? What does it take, then, to put somebody on a post and hat him? Well, it actually takes putting him there and saying he is there, and showing him where he is on the org board and what his position and relationship is, and what terminals he goes immediately to just wham, see, "And that's it and there's supplies and so forth, produce something." And that begins to reveal all at once. Now you find his misunderstoods. Now listen, you can muster him, you can march him, you can teach him to chant in unison in front of an org board, but when you put him on that post you won't find out if he knows anything about the post or not unless you ask him to produce something. And then all confusion starts to rise to the surface like the body after three days. Yes.

Now we have, then, a history of twenty-two years of booms and depressions. When the Data Series was developed, a tool was developed which made it possible to then penetrate these obscure mysteries as to why booms and depressions, booms and depressions, not only with the organizational network as a whole but the individual orgs go through that cycle, boom depression, boom depression.

"Well, alright, let's see a sample, let's see you do a sample now of the product of your post." That statement will probably get fantastically blank stares, and that's why you've got dev-t, because the guy will do something. Now, people never do nothing on a post. And that's exactly the first point at which dev-t generates. Now, it's up to you to figure out what is the product of that post and see some of it. You want him to do it. And now you know what policy to start feeding him and how fast, now you know what supplies that he's got to have and how he'll run into these, now you'll begin to know what this division eats up in terms of materiel. The lines start exposing themselves the moment you say, "Produce the product of that post."

The evaluator in the Data Bureau the other day told me that the book receipt monies, now hold your hat, the book receipt monies of l967 at St. Hill were greater than its total income today. Now that is a terrifically spelled out collapse. The ban had very little to do with it, but they did lose their American trade. But they mostly didn't listen when I told them they'd better build up their domestic trade. But that gives you the difference, the two magnitudes of organization. Huge.

Now, this would seem to be in collision with the Product Officer's duties. Now the Product Officer, he wants all the products of that post and he wants them all now. He wants them so they can be numerically counted and if he doesn't get them, he gets bloody minded. And bloody mindedness immediately pursues into ethics and heavy ethics and witch hunts, and all the witch hunts we ever had probably had amongst them only one or two or three that were valid, had a real valid target. The rest of them were simply dev-t merchants, through unhattedness were too damn stupid to know that their actions were totally suppressive. They wouldn't even know. The guy might even be producing some of the product of his post, but his producing it and shooting it off and handling other things that aren't his post to such a degree that he's got it all snarled up in a ball, and nobody notices.

Now the funny part of it is; I noticed this first in l950, l951, '52, I noticed it very strongly in later years; that external actions to the organization have almost nothing to do with its survival factors at all. You can go anyplace and build an organization. If it is a soundly established organization which is producing, it will get in direct proportion the income that it has established to achieve. Now that is a factor which an Establishing Officer has to learn, and that's probably the hardest and biggest, toughest one to learn because the staff around you all have their aberrated whys as to how come the income is down, how come they can't get out a bulk mailing, and it's usually wigged "Why is God." But it'll be some fixed thing. And so you get at the reasonableness, the reason why nobody attended the open evening is that there was a football match on the same day. I've heard that, you see. But looking under it, I found out they didn't announce it.

And you keep wondering, "Why can't we hold this division down? What the hell is going on? It's always exploding." Go in there this morning, there's nobody working and so on, there's two guys saying they're going to quit, and they're going to leave, and they've been... What the hell happened? It was all cool yesterday afternoon at sixteen hundred. What happened? Ah, just too god damned much dev-t, really what happened.

So the tool to discover causes exists, and that is the Data Series, and you can discover these causes. And when this thing was finally, when the Data Series was finally used against the whole of this picture, the answer emerged. And the answer is, an unhatted staff generates dev-t. They develop enough bad traffic and sour traffic that they impede all productive traffic. And the reason back of dev-t is unhattedness. These orgs can be busy, they can work themselves to the fringes of exhaustion without producing anything but more dev-t.

Now, for instance, we ran into a state of heavy ethics just at the instant when we were starting to establish. Now, it tended to knock out the enthusiasm for getting established and it was one remedy, but it was the wrong why. It wasn't that the people are lazy, it wasn't that the people are other-intentioned, it wasn't that the people are this, it's just that they were stupid on their post product beyond belief, and were half the time producing products which were not the product of that post and that nobody wanted.

An adequate description of any government on the face of the planet today would be "dev-t." If they all vanished, the world would be far better off. The amount of dev-t which they generate into the society also affects you organizationally. And the best way is to hide it off, just compartment it off and set up a little section to handle dev-t, and that's called an Accounting Unit whom attacks people or something like that. Capital Airlines had twenty five certified public accountants that did nothing but handle the government tax people.

The worst producers of dev-t in an organization, now hold your hat, are auditors. They are trained as auditors. Now, because they know Scientology auditing technology, they think they know Scientology. And you're dealing with somebody who knows he knows, and you try to get in admin tech on him and it has nothing to do with his post. Now, because he is such a good auditor, you graduate him up to an executive position in total ignorance of policy. You're just absolute demanding an organization go total dev-t, because an administration is itself a technology quite separate from auditing technology and is just as standard, and has just the same horrible consequences to an organization or a division when done wrong that auditing misdone on a pc has on a pc.

So there's dev-t all around an organization, so it is no wonder that the organization itself develops dev-t, since it is operating in a gorgeous tradition which has been going on for the entire history of Man. And that dev-t comes from unhattedness. The reason the economics of the United States are bad is there's no Establishing Officer hatting the President. That's just that. Yeah, well, he's in charge. The Establishment Officer isn't. But if that combination existed, this would damp out. He's a complete madman. He's handing out about three quarters of the national income into channels which will never do anybody any good at all, which solve nothing, and then wonders why he has inflation. In the most basic textbooks of economics it tells you not to do that, it says don't do that.

So, what is the, what's the score? When you're establishing something, why, you've got to make it all mesh so that it produces because that is its purpose. You'll find out you'll never have any morale, production is the basis of morale, unless the guy produces. So, your final test as to whether or not the person has been hatted is whether or not he produces a quality product of his post, not whether or not he can do an examination. But the funny part of it is that if he produced a quality product of his post, he would be able to do an examination, what do you know? So, we introduce the idea of on the job training, we won't get into conflict with the Product Officer. That makes a bridge across.

And he then has designed the idea that the working man, demand for wages, is the reason why prices are increasing. Wrong why, and yet economists continuously have been pushing that why. The working man has to have more wages because he can no longer buy bread. So the basic whys aren't found. But that is the basic why. That is the great big gaunt wolf. Unhattedness develops dev-t. Now it isn't just unhattedness, that for an Establishing Officer is too simple a statement, much too simple a statement, because it just isn't just hattedness, it's the lines, the meshing of these hats, the space in which these hats are worn, the arrangement of it, the adequacy of it.

Now, wrong whys is the bugbear of the Establishing Officer, and it's also the bugbear of the Product Officer. That is the failure point of all management units, they operate on wrong whys, they do off the cuff management not based on sound evaluation, and introduce programs into the area which are unreal but which develop and involve everybody in the organization. So, you've got a two page program that is busily being done that has nothing to do with the other end of the thing because it's based on a wrong why. But you don't dare establish anything in that organization because that program has total emergency and has got to be done now, and nobody has any time to be hatted. If that is a wrong program that is based on a wrong why, it'll practically destroy the organization. That means an Establishing Officer has to be a better why finder and evaluator than a Product Officer, who has to be the best in the world.

There was one staff in one organization had its comm center three floors down in the basement, as about the only unit that was missing out of their organizational lines. Spacial arrangements can cause dev-t, the way lines flow. If you have a hot flowing line from A to B but exactly perpendicular to that have a hot flowing line from C to D, those two lines are going to collide. In other words they can't flow, because they're having to flow through each other or across each other. So spacial arrangements are important to an Establishment Officer.

Now, the qualifications of an Establishing Officer would then consist of being able to perform and take responsibility for the functions of each one of the departments of HCO. He doesn't actually deliver the dispatches, that is about the only thing he doesn't do that is an HCO job. He does not just duplicate HCO's work, however, but he is a hip pocket HCO. And if you want to know in the final analysis what his authority is, it's the hip pocket HCO. And just like an HCO, if he himself is inexpert, he will descend into heavy ethics as his final solution. And instead of solving everything with Department 1, recruiting and hatting, he will try, start trying to solve them with Department 3, heavy ethics.

The equipment with which an organization deals is important.

Because when you can't get any area to produce, people in it get bloody minded. But bloody mindedness comes from an inability to find the right why. All bloody mindedness ceases throughout an organization when the right why is discovered, which is quite remarkable. It's a sort of a case gain the place makes. They got the right why, they blew the right engram.

Twenty-five thousand dollars worth of equipment at AOLA was inoperational by report. The person that had this in his charge, Dir Comm, had just let it all break down and apparently he wasn't reporting this fact to anybody, even his immediate officers. And the next thing you know, it was very difficult to get out a mailing. Now, there's a big machine which folds and envelopes mailings, takes up the better part of one garage at St. Hill. The repair parts for that machine cost one guinea. The bulk of the St. Hill staff gets tied up with every mailing. The machine is broken and they don't put the publications together in a size that can be stuffed by the machine. Duhhhh.

In 1950 I was looking for group auditing because I was well aware of the fact that groups could get an engram, mutual. And group auditing has been experimented with and worked with from time to time, even on a continental level, in an effort to do something about this. And what do you know, we finally have found what it is. It's a wrong why that causes a group engram. And to de-engramize a group, all you have to do is do a complete, competent evaluation and find the right why and handle it correctly, and the group will dis-emote. This is quite remarkable. In other words, data analysis is third dynamic de-aberration and is as remarkable a technology as running engrams on the individual case. Interesting. The right why, the right why. So therefore, the aberrations of the planet are simply built on the wrong whys of yesteryear.

A project written to repair St. Hill's machines a couple of years ago, to my knowledge, has never been executed, although there have been plenty of people to execute it. All they had to do was hand them the project, it automatically carries authorization for all expenditures for the machine repairs. There's a staff working itself to death and there's a machine that will do all the work, and they don't come together. Now why? Why such idiocies? Well, the executives in charge of the organization are driven by the economic necessities of the society in which they find themselves, with the bill collectors, with other things, into a flat out, day and night, hammer pound, to get some production, to get something done, to get some income in. And they are just spread so thin that they haven't got time to notice those machines are broken, any more than I have time to run this engine room.

I'll give you the most flagrant example of this in modern times that has any relationship to our field or activity. Psychiatry operates on a wrong why, and it gets itself into miserable trouble, and has miserable programs which are terribly unpopular. It thinks there's a thing called mental disease and that that disease is a physiological thing. And Kreplin's chart, the largest chart, I have a copy of it here, gives all the diseases. It's only on a little section of the last page that they say that something might be caused by purely environmental stresses. The rest of it is all physiological, insanity is physiological, schizophrenia is physiological, paranoia is physiological. It's because the guy hasn't eaten the right brand of beans or something of the sort, and they dabble around with this. Freud's breakthrough was that it might have something to do with mental, but psychiatry at large has never really admitted to itself that this is the case. So they have this thing called mental health. What the hell is this thing? Szaz, Dr. Thomas Szaz, exposes this in a very scholarly way in a terrifically well annotated, and cross-indexed and so on, set of books. He's a marvel, he's a psychiatrist, he does not believe in institutional psychiatry. And this is actually what it is.

Now, it isn't the fact that I couldn't. I could. But this planet, for some reason or other, is rotating on a twenty-four hour, it isn't quite the twenty-four hour spin, but it is rotating close enough to twenty-four hours a day around a twelfth rate sun at the outer corner of one of the smaller galaxies. And it inexorably rotates at twenty-four hours a day. And as hard as you try, you can't make it rotate at twenty-eight or thirty-six. If it just would, you might have a chance, if it just would.

And so therefore, they let the medical doctor into the mental field. And how did he get there? He got there about four and a half hundred years ago by saying that witches were actually possessed or not, whether it was physical or produced by demoniac possession or spells. And the medical doctor, from that period to this, has been the hidden factor back of psychiatry. Four and a half hundred years ago they called in the MD to find out whether or not the guy was physically ill or whether or not he was obsessed by demons. And if the medical doctor said he is physically ill, they treated him; and if he said he wasn't really physically ill, they tortured the guy on the rack and burned him at the stake. And that's been going on for four and a half hundred years and hasn't stopped yet, and that's basic psychiatric law.

And so somebody who is holding everybody's hand, buying all the furniture, answering the bill collectors, talking to the irate customer who wants his money back, trying to get five more auditors because the last five they had went into a mutiny and quit when asked to go to cramming, this fellow living in the midst of all that and so forth has not got much time to notice much about that machine.

"The Manufacture of Madness", a whole book devoted by Szaz to this subject, and at first you believe this is just a gag, but no, the references are total. They were operating on a wrong why. There is no such thing as physical mental disease, and yet in every university the Psychology Department teaches people that they think with their brains. I was busy running this out the other day as a long series of locks, and you never saw anything so funny in your life. You keep blaming the prefrontal lobes and it makes them kind of hurt. All they are is just some meat. People have been told this so often that they become suspicious of this area of the body. Now, it is true in paresis, which is syphilis in its advanced stages, why, people get some weird states; they do, they get very weird states; but then perhaps it would just be the hiddeness of a disease and the cut off of any future procreation that would produce a mental response such as you get with that. There is no evidence of any kind whatsoever that there is anything called a mental disease. So therefore, the whole of psychiatry is based on a wrong why, and the whole of civilization for four and a half hundred years has been tossed into dungeons, and tortured and burned at the stake, and electric shocked and pre-frontal lobotomied and put in ice packs and everything else. Wrong why.

Now the boom and depression cycle was caused by the exhaustion of the executive in handling the thing, and the dispersement of staff because of the nomadic character of society. The boom and depression was caused by establish and disestablish, and that cycle of establish and disestablish was accompanied by an increasing cycle of dev-t. And you have the exact description of why orgs rise and why orgs fail. If we're ever going to take this planet we will have to eradicate the failure end of that cycle. See, that's elementary, right?

Now, we come along and we find the right why, we find the right why, we find the remedies of this sort of thing. The fact that somebody might actually get cured and that they might be wrong is really what drove psychiatry down the spout, it wasn't really our publicity. They were so fixated on the fact that if we got loose with this idea, and they knew very well that we produced results and they didn't, they knew that well. The only thing for which one can't quite forgive them, they knew Scientology worked, they knew, they knew Dianetics worked, so that made their whole theory wrong and it drove them around the bend. We had another theory, it worked. They were operating with this other theory, it didn't work. So, they ceased to be able to broadcast with sincerity from their top echelon because somebody could catch them out, somebody had missed the withhold. They knew psychiatry didn't work. Somebody missed the withhold. That's what's taken them down the drain.

So, a vast study of this and a tremendous amount of expertise of this has shown that there is a division of labors. If anybody is going to get a dinner and he doesn't put a stove there or a fire, and he doesn't have any ways to get any supplies and there are no dishes, and there are no food preparers, I won't guarantee the quality of that dinner. That's going to be a pretty lousy dinner. Establishment is what adds quality to a product. It's no reason to scream at the CO or ED about the quality of his organization which isn't established, because the dev-t in the organization itself is sufficient to disestablish it and that will shatter the quality of the product he is trying to produce. Do you see what's wrong?

You get some long program, "And so, the HCO Secretary will immediately ta-wa-da and da-de-da and do programs one, two, three, five, eight, nine and twelve; and the Distribution Secretary will do so-and-so and so-and-so and so-and-so and so-and-so. It's all based on the idea that the public now wants something stimulating." No survey, no survey of any kind, no proof of any kind. Yet here is a long time involving program that pulls off the hat of practically everybody in two or three divisions in order to all-hands this thing into being, the end of which is going to wind up in the complete soup. Aah. So perhaps there should be a side check on the Product Officer's evaluations by the Establishment Officer, side check.

Yes, he theoretically would love to turn out a very sleek pc, but with this, that and the other thing, and because the person out there on the folder line didn't, and the, after all, they called this person in on Friday and had to have him go, only have one day in the organization, and he had paid for um..., and at the other end of the line you are glad he got out of the organization without a red tab. You get the scene, you get the scene.

Now, there can be such a thing as the guy knows he's so right, that it fits so well with all of his data, that it will resolve. But the funny part of it is, if it doesn't bring in GIs, it's outside the reality of the people he's working with. What do you know? The program and evaluation which was done which brought into being the Establishment Officer and so on, was unanimously agreed with by staffs all over the place that HCO had failed to establish. Bang, that was unanimous. Alright. That's part of the observation, and the rest of it is when I released this other program, I absolutely received a snow storm of DRs of cheers, cheers, cheers, yes, yes, yes, true, true, true. In other words, it was just like blowing an area of aberration. This was a great mystery we were living with.

Well now, I can hold one of these organizations together and I normally can build one up. But it sometimes gets so bad that it takes about a twenty hour day and you wouldn't believe some of the things that I have to handle and some of the outnesses which I find. It is fantastic, it is just beyond belief. It's because the hats one, are not known or worn, and because the hats are not meshed with the hats so that they run in coordination with the hats. The materiel problem breaks down and the spacial relationships get tangled, and the economic duress puts barriers and breaks on what you can do. And that brings us to resources.

Now, people very often get into the idea that the great mystery must be a who. And there was one organization that was completely blown up. A fellow went from the Los Angeles area, pretended he was a Sea Org missionaire, told the whole staff that they had a suppressive amongst their executive strata, got them to looking for who it was. This organization, then as a group of staff, got together to send somebody, one of their members, out to the PAC area with special reports that were to be couriered straight to me on what they had found. The guy who was carrying the things, however, was not quite as stupid as some of the others, and when he walked out the aircraft terminal, the airplane terminal gate, the airport gate, he turned around and walked in another gate and he got on the phone and he called the Guardian's Office and he blew the whistle on the whole deal. But it didn't save the org. The org crashed, it's executives blew, the staff kind of blew all directions, and we're still trying to put it back together again. And that organization is New York. And the man who pretended it was R. Zorro, and that happened about three years ago, and you know, that engram is still sitting around in the New York area.

An Establishing Officer always has to work within the reality of the resources available. It is all very well to attack the German army as a plan. Let's plan to attack the German army. The resources available are one corporal with a broken leg. Actually it's a state of insanity describes this perfectly. It's called megalomania. Here's this little guy who wouldn't be able to balance, hold up a match stick, and he's going to move the world. It is a complete overestimation of what you can do. Resources is the limitation factor. What do you have to do with?

Now, a fellow going into that area as an Establishment Officer could do worse than, in his spare time, do a why, an evaluation, and publish it to the staff and mail it to all the old executives. Just a standard evaluation, whether it had very much program on it or not. This was the why.

And now we get into the genius department. The less you have, the more genius it requires. And that's probably a rule of an Establishing Officer. The less resources you have, the more genius you have to inject into the situation to substitute for the lack of resources. So genius substitutes for the lack of resources. "How the hell are we going to establish this division? We have two people. Well, I could get in there and do it all." Wrong answer. Wrong answer. The primary error that an Establishing Officer can commit is to start handling the actual traffic of the division. The org will never grow and he will not be an Establishing Officer. It is an illegal order to give an Establishing Officer an order to handle the traffic of the division. Illegal across the boards. Illegal as well to take him off and put him on another post because personnel is so scarce. That is the exact way never to have any personnel. So the resources are made up by the brilliance of the performance.

Now probably, I don't have the whole why. How, because the why would have to be, how was the staff that weak? How was the staff that weak that it didn't do anything on standard channels? Why did it suddenly grab other channels sideways? I don't know the answer of it to this day. I know the events, but I don't know the why. How could they be unstabilized into believing that three high-producing executives were actually, one of them was suppressive? How could they believe this? I don't know. But the data is kicking around New York and an evaluation could be done. Right now New York is still having a bad time. It has never really been able to get those blown executives back in. They're ARC broken clear back to the beginning of track. It would really require something to destimulate that particular environment, but it could be done. But it would be done simply by finding the right why, and if that why was found and it was it, and so forth, it'd blow charge all over the place. Funny part of it is, it doesn't have to be a PR why. It just has to be the truth.

There's one country that has a good background on this, it's a nice little model, it's Sweden. Sweden has been able to hold her position in the world by fantastic technical developments and by efficient organization. And the organizing that has been done is so efficient with regard to its world relationships that they're very hard to believe. How did they stay out of those world wars? How did they emerge prosperous on the other end of it?

You'll find more staff members who will develop more PR to explain why they aren't producing, and develop more PR in lieu of production per square inch, than you ever heard of. So, the Establishment Officer has to be an expert in PR. I recommend to you the first tape of the FEBC course, which is totally valid. That piece of technology is part of the Establishment Officer's action, not part of a public action. It's not part of the Org Officer's action, it's the Establishment Officer's action. He has to be able to handle this sort of thing, H E and R, human emotion and reaction faster than scat, without taking sides with the staff against the executive strata. Now, he himself is part of that executive strata. His authority stems from the chain of command. If he goes too worker oriented, he'll destroy the workers. If he goes too thoroughly martinet, he will destroy their confidence in him.

So you can always substitute for numbers with efficiency and brilliant ideas. If your technology is brilliant, your efficiency is fantastic, you can take the lame corporal and attack the German army, not even on a forlorn hope basis. That's what I think Hitler was doing, attacking the German army. He defeated it utterly. So it's all from what viewpoint one is operating.

So, there's a happy ground in between where he's got to be the friend of the staff member without agreeing with the staff member that he is being done in, because the staff member probably isn't. His ignorance of recourse to justice and things of that character, the way he's getting kicked around and so forth, all have channels for recourse. And he must have been standing in the wrong place at the wrong time to get shot at in the first place. So, you have to teach them how to stand in the right place at the right time. Don't ever take the side of a staff member who is natter natter natter. Auditor's Rights, all of the peculiar human reactions contained in Auditor's Rights, are also part of an Establishing Officer's kit. And I would recommend to you CS Series #1, Auditor's Rights, as the basic reaction of human beings as far as auditing is concerned.

If I were to tell you that we have one of the hottest, smartest units in the world of its kind, you might or might not agree with me, but it's the Guardian's Office. Now, that is a hand-built organization and it was built for a certain definite policy and planning. They had a certain definite purpose. It is better, now hold your hat, it is better today than MI-6, CIA, DIN, State Intelligence or the Abwar. The decline of psychiatry on the planet came about because they attacked the wrong target, us. There wasn't any unpopularity of psychiatry 'til we opened our mouths, and now it's generally thought to be the case that they're sort of a failed, half-baked, murderous sort of bunch of bums.

Now, if you can get somebody patched up who is in a sad effect by having his ARC breaks of long duration pulled, and if you can get somebody patched up by pulling his withholds, if you can get somebody who is dramatizing a service facsimile handled... It doesn't matter the guy's OT 3 but his, nobody's ever, that service fac list was wrong and it wasn't tripled, so he just generates dev-t to make everybody wrong. In other words, he's not doing his post, he's dramatizing his bank. There's a big difference. That isn't in Auditor's Rights, the action of a service fac, so the HCOBs about service fac are definitely part of an Establishing Officer's kit. And all of the Data Series and expertness in it, and all of the Org Series of course, and all of the HCO series are all tools and weapons which the Establishing Officer can use.

The World Federation of Mental Health has now just been transferred to the West Indies and put in the hands of an obscure psychiatrist nobody ever heard of in a back village of blacks. Now, it was the world's most powerful mental health organization, formed by the death-campers who escaped to England. Now, how did it ever get to Jamaica on a back street of a small village? Now, you get the idea? The Guardian's Office doesn't have huge sums of money, they don't have vast numbers of personnel, but they've got technology, they have got some of the hottest technology that anybody ever heard of.

Now, there's probably an Establishing Officer's code, which hasn't been written, because he's something new, because he's something new. Now, I've tried to get you, give you something of the width and breadth of the post and the importance of that post. If an Establishing Officer does his job well the organization will not rolly-coaster, but will continue to expand. He will have more and more facilities with which to deal.

One piece of that technology is over two thousand years old, it comes out of the "Art of War," it's called the "dead agent technique." But the Art of War doesn't state what the dead agent technique could be in full, it was developed within an inch of its life. A newspaper reporter today going into his own morgue files, in any paper anyplace, to get some material to write about Scientology, collides with how bad psychiatry is. Now, how did anybody ever manage that? The people who were running the psychiatric push are dead. Worried to death. Now, how did anybody do that? Psychiatry had an huge, escalated program, escalated, climbed right up the escalator and upstairs, fast: To degrade the human race, to supersede all normal justice with psychiatric anything. They had this up to a point where they had legislatures all over the world, and parliaments and so on, were just passing seizure laws which were moving right straight forward which were opening the gate to a totalitarian state for this planet nobody ever heard of. And they made the mistake of attacking us and attracting our attention.

At the time of expansion, the one thing he will forget to do is put on an assistant Establishing Officer, because when a division goes up to thirty, forty, fifty, and he doesn't have an assistant Establishing Officer, he will no longer be able to establish it, because he has the model behind him of HCO in an org of thirty, forty, fifty, was unable to establish it. So therefore, he must remember that what brought the Establishment Officer into view was the fact that there were not enough people establishing and therefore when he finds himself having too many people to establish, he had better get an assistant Establishing Officer and hive off the two sections of this and split up the duties in such a way that it can be done still. And when the organization has a division which has about two thousand members in it, I would say that somewhere in the vicinity of how many? If it's something, I don't know what the figure is, it's probably one to ten or something like that, there would have to be two hundred Establishing Officers. Wild, isn't it?

Now, one little handful of guys going in against a multi-billion dollar organization such as that, and messing it up and knocking it flat on its back, is quite a feat. And the whole organization was put together and made to run in a few months, and it did its job and accomplished its objectives within three years. Now that shows what can be done.

Now, somebody is going to give you, sooner or later, the economics of having an Establishing Officer on post. "You see, our tech/admin ratio is two to one, and we really can't afford enough Establishing Officers." The answer to that is that the size of an organization has nothing to do really with the effectiveness of its individual staff member, but tends, it doesn't have anything to, no improvement factor on the effectiveness of its individual staff member, but has a corrosive effect. An organization does not get more productive the more numerous it gets, it gets less productive the more numerous it gets. They can't afford not to have an Establishing Officer, they just can't afford not to have one. It is the most heroic, wasteful action that anybody ever heard of to have a thirty man organization without some Establishing Officers.

Have you ever received anything from the Guardian's Office? Have you ever received a letter or anything like that? You don't know too much about them, but have you ever received a note or a letter and so forth from Central Guardian's Offices and so on? They're always very neatly typed and they're usually put together well. Did you ever notice that? So their administrative procedures are in. They follow target policies religiously, they program everything. If some, if somebody is to go out and find out about somebody in some small town someplace or another, he's on fully programmed orders, fully targeted orders just exactly against the target series, but they carry it through to an enormous degree.

Let me give you some kind of an idea just so that you will have the genus of it. An organization of three staff members should have an Establishing Officer. It's one auditor and one CO and one Establishing Officer. That would have a possibility of functioning, because it would very shortly become an organization of five or six people, if it had an Establishing Officer. It'll stay an organization of two or three if it doesn't.

Now, that's what can be done by establishment. Now that required then brilliant technology, small resources but very, very sound, hard organization and fantastically able management. So don't for a moment underrate what you can do as an Establishing Officer if that job could be done. It is a complete disgrace that Scientology organizations and Sea Org organizations have not taken more territory than they have. A complete disgrace. People will sometimes say, "Well, the org board might be out, or this might be out." That's all "why is God." The actual fact is that it is simply that failure to establish and continue in an established state and continue to establish, they are destroyed by dev-t. And the dev-t is developed because of unhattedness.

That this isn't understood is represented in some stuff I got here the other night. "I don't want to be an Establishing Officer I/C for my organization because the ED has wanted to have an Organizing Officer for some time." You see, he doesn't realize we're changed over and phased over into a refinement of the Product/Org Officer system. It isn't the Product/Org Officer system is gone, it's been refined so that it works. So he wanted to be an Org Officer. I can tell him that he could have and be and Org Officer and he would not raise the income of that organization one five shilling piece. He just wouldn't. But as an Establishing Officer, he'd probably quadruple it. You see, that's the difference. So, it's not a well understood action, so you're going to have to do some sales talks.

They have brilliant technology. It is not applied. You don't have to worry about the technology. Both in tech and admin, boy, it's there. It is infinitely greater and infinitely more effective even than the intelligence technology on which the Guardian Office operates. But it's not known. Do you know that in the Sea Org, there has never been a whisper of the word "dev-t?" Nobody's ever mentioned it. Once in a while they use it as a curse word, but they really don't use it.

Right now here locally, I've had somebody say, "I don't need an Establishing Officer in my division, I hat my own staff." The only thing he's missed is, is they aren't hatted, and what production comes out of there, I do it. Otherwise, all is well. So, the truth of the case is, that one can't afford not to have one. So, the evolution would be one Establishment Officer would have to be there even if you had a staff of three, one of them would have to be an Establishing Officer. You say, "Well, of course he wouldn't be a full time hatted ESTO." Oh yes he would be, oh yes. He would probably be the only person there that was single hatted. The CO might be the registrar and the D of P and everything else, but not the Establishing Officer. Single hat. So, there is no such thing as a double-hatted Establishment Officer, even beginning that low on the org board. There is no such thing.

Old HCOs policed dev-t hard, hard, hard, hard. They got the whole staff communication hat on as the first action that was done with the staff member and I've gone back and isolated this fact from the lines. That was the first thing that happened to the bird. They showed him how to write a dispatch, what to write the dispatch about, one subject one dispatch, the dispatch had to do with what he was doing and the dispatch had to do with the person he was writing it to. And they just kept this up and kept this up 'til you had a well-disciplined organization which would hold its form. That has not been done for years. When that ceases to be done, the organization tends to disintegrate. But along with that goes hatting.

Now, let's take an organization of about ten or twelve, or something like this. Now at that stage of the game, you would have an Establishing Officer I/C and an Establishing Officer for divisions seven, one and two, and another Establishing Officer for divisions three, four, five and six. And you'd have three Establishing Officers. Why? Because it will very shortly then, if it has Establishing Officers, it'll shortly become viable. It can't help itself now, it's had it. All of these hopes of decay are gone. It'll soon become an organization of twenty-five or thirty. Well, what do you happen then? That's too many people for three establishing terminals, so at that moment you start going for broke. You've got to put in a TEO/QEO, specialized, so that brings it up. Now your organization gets up to around fifty, something like that, well you just better cover it across the boards now.

Now, I'm just trying to give you some of the bad spots, some of the bright spots and so forth, and the background history. It has been very difficult for me to operate as the Establishing Officer to all of Scientology while getting out the production, while evolving the technology. But in doing that, enough experience was gotten together, enough technology was developed, to make the pieces fall into their right places. And they are somewhat like this. The product/org system is a brilliant system, but it has a fatal hole. The HAS had no more chance of establishing the organization than a man in the moon. And a survey throughout the United States and other places demonstrated that this, according to its staffs, was the total failure of the organization. The failure of the HAS to establish. This was uniform. It ran at something on the order of 97% on a survey. So this isn't just an off the cuff evaluation, this is an evaluation with observations and surveys and everything you can think of.

Now, what about a CLO? Well actually, a CLO is in a position right at the present time, Officer for the Operations Bureaus, four of them, all by himself. And that would require an Establishment Officer I/C, so the minimum number of Establishment Officers for a CLO would be an I/C, one for the early divisions, one for the late divisions and one for the middle would be four Establishing Officers. See? See how it goes up? Now, what happens when they really start getting busy? Well, you figure out where they're busiest and put your assistant Establishing Officer in there, your Establishment officer.

The Product Officer with his attention on production, the Org Officer making the preparatory steps necessary to get the production in, were not backed up at any moment by an effective establishing action. Now we know all about that, we have the background history of that. The basic theory of the system is brilliant. In its execution we find out that we underestimated the number of people necessary to establish an organization in these upsetting, twirling, whirling dervish times. The number of people that it takes to establish an organization has been underestimated by about ten times. In other words, it would take almost ten times as many people.

Now, I've used Establishing and Establishment Officer interchangeably. It's a descriptive term. The actual term is Establishment Officer. His duties are establishing. You'll find out that a lot of people don't understand what this post is and that sort of thing, so any Establishment Officer going on post has to do a certain amount of personal identification. If he's in charge of divisions seven, one and two, well he had better tell each one of those divisions that he's in charge of these three divisions. Otherwise, each one of them will think he's off post three quarters of the day, and what an easy job. In other words, he has to identify himself.

So, with this in view, a brand new method of handling an organization, using all that was good in the Product Officer system, has been evolved. The Commanding Officer/Executive Director of an organization is the Product Officer of that organization. He does nothing but think, breathe, eat product. He knows the valuable final products of the organization, he demands them. When he doesn't get them, he investigates by data analysis, finds the why, debugs it, writes a program, brrrr. The program is carried forward by the Deputy Commanding Officer or Deputy ED. The Deputy ED in other words, is the program executor, also the handholder, also the dev-t catcher, of the product officer.

Now, we have yet to put together the uniform of an Establishment Officer and the insignia of an Establishment Officer. We will be doing that. We will be building a corps. There will be an Establishment Officer senior, top Establishment Officer in the Management Bureau, for Sea Org and Scientology orgs. In the PAC area for instance there will be two Establishment Officers on Flag, putting in the network. Their opposite numbered terminals will of course be the Establishment Officers in charge of each of the orgs. So this will go in as a network.

Now, there is a yeoman or a secretary to the Commanding Officer or the ED. This is the top man. He has a yeoman. That person just operates as reception. The Deputy Commanding Officer or ED makes sure that yeoman stays trained, to divert dev-t from the Product Officer's lines, and goes around and gets those program bits executed. So therefore the planning is really carried out at the top, where it belongs. The planning is carried out at the top and planning has to carry with it summation of observation. It has to carry with it investigation, it has to carry with it all manner of look into it, straighten it out, find the why, evaluate it, you know, find the why, write up a brief program based on a brilliant plan which isn't yeah, yeah, figure out, five yards long and ties up the whole organization and is itself dev-t. Anything based on a wrong why is totally dev-t.

Now, what happens on something like Flag? Now here you have a numerous, although the organization is big, it is not as big as the biggest organization will be. Now, it has a peculiar fact. It combines a bureau and a division, and it combines two entirely different sets of policies in the one section. So the Establishment Officer, you don't have an Establishment Officer for the bureau, because in most of these bureaux like bureau two for instance, I think has one person in it. It's just got the Aide, you see? He has the job of realizing that he has two different organizational types in the same division, with two different, entirely different, products. One, the bureau is external. A bureau always has external product, its products are external. It may have some internal functions, but at that moment they're divisional. So, external, the external lookout, the external management function and so on is the bureau function.

So this short, succinct plan of what we are going to do to get this, that or the other thing debugged, would go through to the deputy and the deputy then is actually operating as the Org Officer, but he's really not doing organization, he is doing program execution. Now, the Commanding Officer or ED has a conference and that consists of the divisional secretaries, and that is the Product Conference. And every divisional secretary is himself a product officer, and is only a product officer, and he conducts investigations into his organization and debugs those areas where he is not getting the product. And he has a deputy who carries forth his programs and handles his administrative load. And that product conference doesn't even do FP. They eat, think, sleep, do nothin' but products. That's produce, produce, produce. Now, the way this thing has gone is the Product Officer became so impatient with the slowness of establishment that in the PAC area the orgs destroyed themselves by saying they are doing too much establishment and they weren't producing enough, so therefore the thing to do was produce but not establish. "Now, we want eight hundred and fifty-five names to CF immediately and we've got to get those names to CF and in the CF and so on. We've gotta have sixty-two students a day, and so on, tear up CF, throw it all over the floor and try to find in it the names necessary so we can meet this sort of a quota." And it tore the whole PAC area to pieces and made it insolvent. So, this anxiety for product carries with it a deadly germ. The scramble for product will disestablish.

It actually operates in a difficult way because it operates not only on all the basic policy, but it also operates on FOs and CBOs, the Central Bureau Orders. So it has entirely new, different packs; it's an entirely different bit of expertise. Furthermore, there's quite a lot of expertise into just the matter of being an Aide. And we find out that people have an awful lot of trouble when they come on if they don't just know the song of being an Aide. It's rough for them, they don't know what to expect of it and so forth, and some of the things expected is quite outrageous. But that on Flag has an Establishment Officer who is covering both the bureau and the division.

So, there has got to be somebody there who carries forward the establishment of the org, and keeps it established and hatted and dev-t free, and producing what it is supposed to be producing instead of "all hand will now audit all next week, whether auditors or not."

Now, the divisional function is normally internal functioning. Out into the public we don't consider it external because it isn't, it's just that division operates that way. A bureau is something that operates another org, it doesn't operate the org that's there except it also does. And you will find out that uniformly an Aide will operate the other org over there and will not operate the org immediately under him. So there will be a tendency, there will be a tendency for the Establishment Officer to forget about the bureau. The person is a senior, the person has different problems than the division, it all looks internal. And on Flag, guess what? It is the external function that's important. The external function brings in, for god sakes, eighty-three percent of the income of Flag and the internal function only brings in seventeen percent. And yet the internal function is enormously manned up and the external function is terrifically undermanned. Isn't that interesting?

So, the third member of the team is the Establishment Officer I/C, which is going to be changed shortly, by the way, to the Executive Establishment Officer, except that the name was missed on the checksheet and they tried to make the Executive Establishment Officer the name of the person who was in charge of the Executive Division. He is the Seven Establishment Officer or the Division Seven Establishment Officer, that's his proper name. Esto I/C is what we have been using, it will shortly be referred to when bulletin, policies and that sort of thing start coming out, it'll be referred to as the Executive Establishment Officer.

So what is the effectiveness of that external function? It will be as effective as the person is hatted and doesn't indulge in dev-t and as long as he is served well by the internal group. So therefore, you have a divisional secretary who has a senior as an Aide, who doesn't pay any attention to him. That's awful. And you'll find out those lines are raggity baggity. So that the division operates, however, as Product Officers. Your Product Officers' Conference is your divisional secretaries; the Aides and the pure bureau functions are all devoted to another body called the Aides' Council, which is engaged in management of external orgs. Now, how it is worked out has just recently changed and has not been implemented any further than a set of notes by LRH Personal Comm, but those notes exist. And its chairman right this minute is practically doing her nut because she hasn't got this other system in yet.

Now, it is his job in the midst of that hurricane of demand, to establish. Now, he can err in numerous directions. One, he can start doing the duties of the division, that's the most fatal error. He can establish without regard to production. He can build an establishment far larger than the organization can support. In an effort to get people, he can offer far more pay than can be afforded. Economics, the economics of the organization therefore are in the hands of another conference called the Esto Conference. An FP is done by the Establishment Officers. It's done just according to the rules and therefore they know how much they have to establish.

And so the Aides' Council does not engage in the running of the ship, but can monitor the living daylights out of it if it isn't served. Now, let me show you how important this works. Each big boom of Scientology orgs was when Flag was very heavily on the lines managing. And when the internal organization noise became so great as to distract the attention of Aides and management back into the ship internally, a crash occurred on the external lines. And that is the subject of a very searching evaluation. You want to know why these booms and depressions occurred. There is the bigger why of unhattedness and dev-t, but the local why is extremely just this, the ship unhatted develops sufficient dev-t that it distracted one from the external lines and crashed the stats. Dev-t and unhattedness was the reason.

Now, it is a remarkable fact that an organization tries to spend all it makes. The first thing you ask, you will hear from some green organization executive who has just been put in high up in an organization, "Let's see, the organization will be making about five thousand dollars a week. Now, let's see, for five thousand dollars we can buy..." daaah. Only they never really spend all they make, they usually spend more than they make. And that is a terrible disestablishing factor in itself. The amount of production per unit of Sea Org orgs has gone from, hold your hat, five thousand dollars a week per staff member to about ninety eight. Dowwww. So they're mostly involved with dev-t. They're very busy, they're very exhausted.

So therefore, the internal functions of the ship are very, very important, but they are important from the degree of hattedness and no dev-t to a degree that no org would dream of. The dev-t discipline on this ship has got to be so extreme that an org, a very efficient org on the subject of dev-t would look totally dev-ted on Flag. We cannot afford one tiny scrap of it, not one little tiny scrap, because that's what broke the international stats. And that's why you were on the job and summoned so immediately and so urgently, and why this system was going in so rapidly. Found the why, you find within, oh within seventy-two hours and so forth, we got the whole system within grasp and being established.

So, the economics of the organization and how it stays established is too close to the Establishment Officer, because it can establish for him not to have control of the amount of outgo in that organization. So, income is actually in the charge of the Product Officer and his deputy, and the outgo is in the charge of the Establishment Officer. An organization that spends more than sixty percent of what it makes has got rocks in its head anyhow, regardless of who gets the other forty, regardless of the tax people, to hell with the tax people. The tax people will do you in anyhow, why worry about it. They've made themselves sufficiently obnoxious and sufficiently bonkers that you just take those steps necessary to obfuscate them.

Now, you are being asked to go on the job without yourself being totally established as an Establishment Officer. I call to your attention a Sea Org FO where a Sea Org member is expected to be doing anything. We expect a Sea Org member to be able to do anything. And so you are an Establishment Officer. That's it. That's all there is to that. Now, you can make up the deficiencies of your technology as fast as possible by putting in your normal study time plus an additional study time. Now, if any of you ever go out to an org as an establishment inside, you will find that this same condition occurs. This will repeat. You cannot afford to spend the next two months training and training carefully in a classroom a bunch of Establishment Officers. You won't be able to afford it. So Establishment Officers will probably always be trained this way and that's on the job training though, isn't it, because you will rapidly find out what you don't know and have to go look up in one hell of a hurry. I wouldn't be a bit ashamed of you if you suddenly disappeared from sight around the back of a bulkhead or something like that, and were hurriedly shuffling through a bunch of policy letters to find out what the hell it was.

It doesn't matter whether your tax, you submit honest taxes or dishonest taxes or correct taxes or anything else, they'll suddenly tell you, "Well, all of that that you say was expense is really income because a new rule says that the worth of an organization is its debts plus its assets, so therefore these are really assets, so therefore you owe the organization a hundred and twenty-two thousand dollars, and so on." The Guardian's Office will get very cross with you on its finance lines because it has to do tax things and figure it all out some other way and, and so forth. But never let the fact that money will be taxed deter you from making a mint. That is not the right why.

If you look at the number of things you have to know, you have to know all the policies and functions and operations of a division, plus all the functions, policies and operations that have ever been written about HCO, plus all the functions and policies that have ever been written concerning technical application to the control of human emotion and reaction. And that gives you the scope of what you should know in order to do your job successfully.

If you have enough money and if you've made enough money, the only way St. Hill has gotten by, you can afford to spend huge sums to protect the huger sums that you have made. The crime is not to have made money. So never fall for the fact that we must not this money because it will be taxable. No, figure some way where it isn't and go right on making it. An organization has to be valuable enough to compensate management and to pay its management expenses. And the management of a Scientology organization is not actually at its ED or CO level. They manage that particular unit and organization, but if you figure out the amount of money invested in making it possible for that organization to exist, wow.

This talk today was to instant hat you, to show you to a marked degree the scope, the reason why, the background of your post, the need for it, and the reason that you cannot possibly afford to fail. So, you are an Establishment Officer. Thank you very much.

Boston, as brilliant a job as Boston is doing at this moment, was turning in only about fifteen percent of its organizational income. They have no idea how much it costs to put together that command team, not the faintest. About a quarter of a million dollar command team was sent to Boston. And they're going to pay it back at four thousand dollars a week for three months and say its compensated? Bull. But all due respect to its CO, he got the word instantly and the very next week, after I called this to his attention, why, thirty percent of its income went racing immediately to Central Command. So he got the word fast. That's still not enough, not enough to compensate for the trouble and upset, for the sweat that guys did on this ship and the sweat that auditors have done and right on down the line, and the flukey, fall on the head mistakes these guys have been made and then remedied and learned from and... It takes twenty-eight thousand casualties in a war to make a Major General. Well, their casualties were big enough. You bet. Right now, AOLA is going wzzzz, just because of that kind of stuff.

(Thank you, Sir.)

So, how do they compensate for it? Well, the compensation of management and so forth has to be adequate to retain management's interest. Management has to continue to be able to furnish the management's services, and they are not just silly orders one gets every now and then. They are the services of recruiting, of background, of selecting out. To get a command team together like that is the cream of maybe two, three hundred people. Well, what about the expenses of two or three hundred people? Do you see?

OK.

So, that an organization has to make money to be worthwhile to anybody. So therefore, you manage one of these organizations within an inch of its life, you really sweat it. And what do you know? If you sweat it hard enough, and you make it efficient enough and effective enough, why, it gets very prosperous itself while delivering rather fantastic sums up the line. You get how its done? The wrong way to approach it is, "Well, we need five thousand dollars a week so therefore we will make five thousand dollars a week except for the two or three thousand more that we forgot to count in." So the financial planning action plays directly against the Establishment Officer, plays directly.

So, the solvency of the organization is shared, its income is the responsibility of its ED or CO and its outgo is the responsibility of the Establishment Officer. OK?

Thank you.