18 February 1954: the Church of Scientology is incorporated

On this day in 1954, the Church of Scientology, founded by science fiction writer L Ron Hubbard, was incorporated in Los Angeles, California.

"You don't get rich writing science fiction. If you want to get rich, you start a religion" words reportedly uttered by L Ron Hubbard, the sci-fi writer who founded his own pseudo-religion, the Church of Scientology.

As Janet Reitman notes in Inside Scientology, there was really only one way in 1950s America to get your organisation taken seriously: "cloak it in religious garb". That would give you the moral authority, but also as a religious institution, you could claim tax exemption and "side-step the rules regarding certification for psychological counselling".

This last perk was especially important to Hubbard's fledgling movement. The post-war years witnessed a rise in popularity in self-help. In 1952, The Power of Positive Thinking was a runaway success, netting a fortune for its author, Norman Vincent Peale. Hubbard saw similarities with his own belief in "Dianetics", which remains a core tenet of Scientology.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Dianetics, as slightly mysteriously defined by scientologists, is a "technology" to overcome the "reactive mind", thus quelling "nightmares, unreasonable fears, upsets, insecurities and psychosomatic illness" to achieve a purified state of mind, known as "Clear".

On 18 February 1954, the Church of Scientology of California was incorporated in Los Angeles. To better spread his mantra, Hubbard set up churches around the world (likened to franchises by some), with Saint Hill Manor in Sussex among the most important.

Legions of critics have accused the organisation of preying on the finances of the vulnerable. In order to achieve a 'purity of mind', adherents must undergo a series of "auditing" sessions, which are usually paid for with donations. The organisation has also become notorious for attracting celebrity endorsements, with actors Tom Cruise and John Travolta among the most famous paid-up members.

And while Scientology generates millions in revenue – around $200m, according to Fortune – America's taxman, the IRS, had to give up its pursuit of what it claimed was unpaid tax following the organisation's legal identification as a religion in 1993. Here in Britain, Scientology gained some similar recognition in late 2013, when the Supreme Court ruled followers could get legally married in its chapel in London.

Since Hubbard's death from a stroke in 1986, the Church of Scientology now led by the "enigmatic high priest" David Miscavige has never succeeded in shrugging off controversy.

Chris Carter
Wealth Editor, MoneyWeek

Chris Carter spent three glorious years reading English literature on the beautiful Welsh coast at Aberystwyth University. Graduating in 2005, he left for the University of York to specialise in Renaissance literature for his MA, before returning to his native Twickenham, in southwest London. He joined a Richmond-based recruitment company, where he worked with several clients, including the Queen’s bank, Coutts, as well as the super luxury, Dorchester-owned Coworth Park country house hotel, near Ascot in Berkshire.

Then, in 2011, Chris joined MoneyWeek. Initially working as part of the website production team, Chris soon rose to the lofty heights of wealth editor, overseeing MoneyWeek’s Spending It lifestyle section. Chris travels the globe in pursuit of his work, soaking up the local culture and sampling the very finest in cuisine, hotels and resorts for the magazine’s discerning readership. He also enjoys writing his fortnightly page on collectables, delving into the fascinating world of auctions and art, classic cars, coins, watches, wine and whisky investing.

You can follow Chris on Instagram.