Records from http://usminc.org/FBIFILES/EIGHT/08011.pdf
200 Mercantile Continental Building
Dallas, Texas 75201
February 26, 1968[xxx]
Senior Resident Agent
Naval Investigative Service
1314 Wood Street, Room 613
Dallas, Texas 75202[…]
In 1960 information was received that an organization called Scientology of Dallas was located at 3519 Oak Lawn Avenue, Dallas, Texas. It was indicated that testers of this organization allegedly study a Russian text book on “brainwashing.” It was also alleged that an unidentified serum is administered to the members and that hypnosis is practiced during such meetings.
[…]
In 1949, Hubbard and Sara Northrup established an organization known as “The American Institute of Advanced Therapy” in New Jersey and Hubbard wrote a book entitled “Dianetics: The Modern Science of Mental Health”, and established a new organization known as the Hubbard Dianetic Research Foundation, Incorporated, which organization was chartered under the laws of the State of New Jersey. The purpose of this organization was to teach the practice of Dianetics which is allegedly a new approach to the treatment of many physical and mental illnesses without the use of drugs or medicine. This treatment is called Psychotherapy by Hubbard.
Hubbard has complained to this bureau on several occasions concerning the staff of his organization and Sara Northrup. He has alleged that a number of employees of the foundation are communists or communist sympathizers and that an effort is being made to turn his mailing list and business over to the Communist Party.
Allegations have been made that the activities of the Hubbard Dianetics Research Foundation are of particular interest to sexual perverts, hypochondriacs, and are also subscribed to by a goodly number of curiosity seekers. Several individuals, including Sara Northrup, have alleged Hubbard is mentally incompetent. Under date of March 14, 1951, the Department of Law and Safety, Board of Medical Examiners, State of New Jersey, advised this bureau that it had a case against the Hubbard Dianetics Research Foundation, Incorporated, which was due for trial in Union County, District, Court, Elizabeth, New Jersey, March 27, 1951. The foundation was charged with conducting a school teaching a branch of medicine and surgery without possessing a license. This bureau has not been advised as to the results of the court action.
A copy of a communication dated June 12, 1954, on the letterhead of the Hubbard Association of Scientologists, International, 806 North Third Street, Phoenix, Arizona, addressed to Better Business Bureau, Phoenix, Arizona, describes this organization and a copy of this communication is being enclosed herewith for your information.
Very truly yours,
J. Gordon Shanklin
Special Agent in Charge