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HUBBARD COMMUNICATIONS OFFICE

                        37 Fitzroy Street, London W.I


                      HCO POLICY LETTER OF 7 JULY 1959



Central




                         STAFF AUDITING REQUIREMENT


                       (Modifying Earlier Directives)





    An Analysis of proportionate pay plans has determined that  more  errors
on the
whole are  being  made  by  most  staffs  on  it,  than  when  straight  pay
prevailed. I take this
then as an indicator that enough staff members in Scientology  central  orgs
have money
difficulties that they are influencing general income. Some  of  the  errors
made are
enormously costly.

    I  have  been  studying  this  for  many  months  and  have  made   some
conclusions.

    First, that the errors and comm breaks are  an  unknowingly  intentional
effort on
the part of some to deny themselves income.  This  is  demonstrated  by  the
fact that
staff does not quit because of low units as  often  as  staff  members  have
quit in periods
of high units.

    I think proportionate pay gives an ample opportunity  to  a  very  self-
invalidating
staff member to deny himself and hence everyone money.

    Some of the errors made in  the  past  year  surpass  belief.  The  most
serious of them
have been aimed at grossly lowering income.

    Recently I have been studying life sources and reactions  in  plants.  I
have gained
data now which, on preliminary look, indicates  that  a  plant  becomes  ill
only pursuant
to a series of shocks which make "it decide" it cannot survive.  Only  after
that does it
"cooperate" with disease. Up to that time it cannot seem  to  get  ill.  But
when it does
decide to die it takes itself and tries to take everything  else  around  it
into illness.

    This bears itself out in human beings more  obviously  than  in  plants.
Illness
follows postulates to die.

    Any channel toward non-survival  is  then  taken.  Proportionate  income
affords
such a channel.

    I first began this particular study when it was obvious that as large  a
staff as we
had in DC and  London  it  would  not  produce  higher  income  of  its  own
initiative.

    I further noted that my own work and dispatch volume was heavier out of
proportion to central org income of years ago. An analysis of my  dispatches
indicated
that they were, from certain quarters, designed to  stop  us  by  presenting
endless
problems.

    DC, left to its own devices, in 60 days went from solvent to $19,000  in
the red.
The  biggest  bills  were  errors  made  by  people  who  apparently  punish
themselves in their
own personal lives with insolvency and who seem to be trying hardest not  to
survive.

    Now all these factors could stem from many causes, the tone scale,  etc.
But there
seems to be reason to believe that staffs  as  a  whole  are  accepting  the
gross blunders of a
few to such an extent that if myself and the members  of  the  International
Council as
org officers were not continually alert, central orgs would vanish. This  is
happening
when times are good. The errors being made are too obvious  and  too  stupid
to stem
from carelessness. Low units do not happen. They are made.