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Church of Spiritual Technology (CST) (dba, L. Ron Hubbard Library): Form 1023 filing

Title: Church of Spiritual Technology (CST) (dba, L. Ron Hubbard Library): Form 1023 filing
Date: Wednesday, 18 August 1993
Publisher:
Main source: PDF: Master index (10.6 KiB)

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[Transcription of the meaningful parts of the 1023 form as submitted by the Church of Spiritual Technology to the IRS. For the complete document, see PDFs]

[...]

Church of Spiritual Technology
419 Larchmont, Suite 162
Los Angeles, CA 90004-3013
Form 1023

[...]

[b]Part I, Question 8 – Previous Exemption Application[/b]

Church of Spiritual Technology ("CST") filed an application
for recognition of its tax exemption under section 501(c)(3) on
August 24, 1983. That application was denied by an adverse
ruling dated July 8, 1988. CST challenged the denial through a
declaratory judgment action in the United States Claims Court,
which affirmed the IRS‘s action on grounds of failure to
establish. with this application under section 501(c)(3), CST is
reapplying for recognition of its exempt status.

[...]

[b]Part II, Question 1 – Narrative Description of Activities[/b]

CST was incorporated on May 26, 1982 as a California
nonprofit religious corporation for the purpose of practicing and
propagating the Scientology religion. (Exhibit A). CST's
purpose, as stated in Article III of its Articles of
Incorporation, is to:

[indent]. . . espouse, present, propagate, practice, ensure, and
maintain the purity and integrity of the religion of
Scientology, as the same has been developed and may be
further developed by L. Ron Hubbard to the end that any
person wishing to, and participating in Scientology may
derive the greatest possible good of the spiritual awareness
of his Beingness, Doingness and Knowingness.[/indent]

(Exhibit A)

CST does not function within the established authority of
the ecclesiastical hierarchy of the churches of Scientology and
their related organizations. Detailed information concerning the
organizational structure, religious activities and financial
affairs of the international Scientology ecclesiastical hierarchy
and related organizations is contained in the administrative
record of the exemption determination proceeding for Church of
Scientology International, the Mother Church of the Scientology
religion.

CST's activities are discussed below.

CST is the most unique church of the Scientology religion.
Its mission, in brief, is to preserve and protect the religion
against any conceivable catastrophe so it can be practiced by all
generations to come. At present, and as described in detail
below, CST furthers its purposes by operating as a church of the
Scientology religion and by preserving the Scripture of the
religion.

Since it was formed in 1982, CST has devoted a significant
amount of its staff time and expenditures to ministering
Scientology religious services to its staff, consisting of
auditing and religious training, and to conducting an extensive
preservation program to preserve the Scientology Scripture.

CST's ministry of Scientology religious services to its
staff is an important and substantial activity. Four of CST's
staff devote all their time to the ministry of religious services
within the CST religious community as further described in the
response to Schedule A, Question 5.

CST's second important and substantial activity is its
preservation program – to protect the Scriptures of Scientology
in their original written and spoken words for all time so that
future generations have access to the wisdom of Dianetics and
Scientology no matter what natural or man-made catastrophe may
occur.

CST's preservation activities have been substantial, ongoing
and concern every medium in which the Scriptures exist – paper,
tape and film. Since its mission is to ensure that the
Scriptures will be available for all future generations, CST must
be sure that the mediums on which the Scriptures are preserved
will last for thousands of years. CST is accomplishing its goals
by using the most advanced techniques available to preserve these
materials to the extent that techniques exist and by making
multiple copies of the materials on different archival mediums
that can be replaced with more durable materials as better
preservation methods evolve.

CST's administrative offices and central preservation
facility are located on a 54-acre, 15-building compound located
near San Bernardino, California. CST conducts its preservation
activities in a special 13,000 square-foot preservation building
that was constructed specifically for this purpose.

[u]Background of the Preservation Programs[/u]

In the early 1980s, while formulating and finalizing his
estate planning, Mr. Hubbard expressed his intention that a
program be executed to preserve for all time the Scriptures of
Dianetics and Scientology in their unadulterated form so that
sometime in the distant future, they would survive any natural or
man-made catastrophe and thus resurrect the religion.
In fact Mr. Hubbard's desires to preserve the Scriptures
were first expressed in the mid-1960s and there was some attempt
by the Church to do so. However, the original units set up to
carry out this function were unsuccessfully established in the
then Mother Church, Church of Scientology of California. What
occurred was that the preservation activity was in constant
competition with the demands and exigencies of the day-to-day
expanding Church activities. The preservation function was never
really more than a sideline activity – never allocated adequate
staff or funding to do the job.

Therefore it was decided to set up CST as an organization
entirely apart from the Church hierarchy and the hustle and
bustle of day-to-day Church operations so that they could focus
fully on this mission. Funding the preservation activities was
handled by Mr. Hubbard – he bequeathed the bulk of his estate,
including all of his valuable intellectual properties to CST.

[u]Recovery or the Original Scriptures[/u]

A significant portion of Mr. Hubbard's original works was
scattered around the world – in hundreds of cities and 19
countries. During his life Mr. Hubbard travelled consistently
to lecture to local congregations and to assist organizations –
all the while continuing his researches into the mind and spirit.
He corresponded with Scientologists all over the world, gave
written technical advice on the spiritual advancement of
individual Scientologists, advised administrative solutions to
organizational problems and so forth. Much of this material
contained priceless irreplaceable Scientology technology.

The earliest CST preservation project, then, was to locate,
obtain and arrest the deterioration of the far flung Scriptural
writings and recorded lectures. Teams were sent to search over
85 separate church locations in 19 different countries. Every
desk, closet, box, file cabinet, attic, basement, and garage was
searched. Long-term Scientologists in their various countries,
towns and cities were asked to search their premises for any
original Scriptures in their possession. Original writings and
recorded lectures were found in diverse locations - in a hayloft
in Australia, under a stairwell in England - often in very
hostile conditions such as damp basements gathering mold and
mildew or turning brittle in hot attics.

In all, over 40,000 man-hours were devoted to this project
over several years. Tens of thousands of original handwritten
pages and hundreds of original tape-recorded lectures were
recovered and CST was able to include them in its preservation
programs.

Mr. Hubbard recorded the Scriptures in three forms -
written words, recorded spoken words and on film. Each present a
different set of problems with respect to preservation. CST
developed methods and technology for preserving each of these
mediums as covered below.

[u]Preservation of Written Scripture[/u]

The original Scriptural writings, some 500,000 pages, were
inventoried, indexed and put in individual acid free file folders
to help arrest further deterioration. All of the originals were
then microfilmed as an immediately available medium which would
ensure at least 100 years of preservation until more lasting
mediums could be developed.

First the originals were put through an exhaustive
verification process in which the authenticity was checked
several times. Then the originals were all microfilmed. The
next project was to make long-lasting permanent copies of these
documents on long-lasting durable paper. The first method
researched and ultimately used for copying these original
documents was an archival xerographic printing process which used
archival paper and archival toner containing high quality carbon
pigment.

Consequently one of the first truly long-lasting
preservation copies made by CST was the permanent, long-life
xerox copies of the original Scriptures. Four complete xerox
copies were made of the written Scriptures.

With the written original Scriptures now fully in order and
secured against loss or further deterioration, CST then focused
on it's main goal which was production of the ultimate, fully
permanent printed version of the written Scriptures, capable of
lasting thousands if not millions of years under ideal storage
conditions.

Full research was done on all types of paper in use
throughout history. After exhaustive investigation it was found
that natural cotton and linen fiber paper had a proven lifespan
of thousands of years provided the environment was not hostile.
By way of example, consider the Dead Sea Scrolls which were made
out of less durable materials than cotton and linen but which
survived thousands of years because they were in an environment
conducive to preservation.

A full development program was initiated by CST to combine
all factors of every type of durable written material throughout
history. Ultimately, CST had perfected what is undoubtedly the
most durable paper that has ever existed. The final paper
developed by CST is of such high quality and durability that the
mill manufacturing it calls it "LRH Archival Record Paper".

With regard to long-lasting inks, CST researched this area
just as extensively and adopted formulas used by the ancient
Chinese, who had developed inks that were found to form a
near-molecular bond with cotton and linen paper and which don't
fade, even when tested under the equivalent of two years of
direct sunlight.

Book binding techniques were also researched and the proven
method utilizes acid free book boards, Irish linen book cloth,
handstitched binding using linen thread and all fully archival
glues that won't deteriorate or break down in any way.

CST is reproducing all of the written Scripture in archival
books utilizing the above methods - every book, bulletin,
article, treatise, essay, pamphlet and other written document on
the subjects of Dianetics and Scientology. Stored well, they
will last indefinitely. By the time this project is complete I
there will be 75,000 books produced comprising 25 complete sets
of the written Scripture.

Even though the books will last far into the future if
correctly stored, they are vulnerable to high temperatures such
as fire or, more importantly, the heat from a nuclear explosion.
Therefore a more durable medium was needed to assure an unlimited
life. After much research CST settled on etching the written
Scriptures on thin indestructible stainless steel plates, using
the most corrosion resistent type available (Type 304).
Unprotected, these plates will last several thousand years, even
in a corrosive marine environment.

When this whole project is completed, the Scriptures will be
indelibly and permanently preserved on an estimated 1,800,000
individual plates weighing a combined 540 tons.

[u]Preservation of recorded Scriptures[/u]

During his life, Mr. Hubbard delivered nearly 3,000
individual lectures on the subjects of Dianetics and Scientology
beginning in 1950. The originals of these lectures were
deteriorating - some of the early ones were even on paper-backed
magnetic tape that had turned very fragile with the oxide coating
flaking off.

The next step in preserving these original recordings was to
make faithful analogue copies onto high quality tape using the
best available equipment. The purpose of this was to get
accurate duplicates of the original tapes before they
deteriorated to the point of non-playability. These duplicates
on analogue tape were then to serve as the masters for CST's
ultimate preservation activities. Analogue tape is not a
preservation medium – having a very limited lifespan compared
with CST's objectives.

The next step was to digitize the analogue tape by
duplicating them onto 3/4 inch magnetic video tape. This
provides a measure of comfort as digital information, although
also recorded on magnetic tape, lasts much longer than analogue
as it is easily retrievable as numbers and the actual content is
not subject to print-through. More importantly, it was a
production step in the making of archival compact discs.

Unfortunately, there was no acceptable archival CD on the
market. According to recording industry investigations and
reports, the normal commercial CD degrades and begins to lose its
recorded information after approximately 10 years. This was of
great concern to CST. After much research CST finally found a
solution to long-life archival CDs: ones made out of tempered
glass and gold with a thin titanium coating – all very durable
materials. Currently 25 copies of each of Mr. Hubbard's 3,000
lectures are planned.

Though this archival CD does solve the problem of extreme
durability, there remains the possibility that the preserved
Scripture will be needed and used at a time when digital playback
equipment is not available and the stored CD players are no
longer operational due to lack of electricity as a result of
man-made or natural cataclysm. It is also a well-known fact that
one side effect of a nuclear explosion is the wiping out of
stored information on computer chips and the complete
inoperability of transistors. In those circumstances the stored
CDs would be rendered unusable and would not accomplish their
purpose.

CST addressed this problem of future uncertainties by
recording Mr. Hubbard's lectures on a second archival medium
which does not depend on sophisticated playback technology. Mr.
Hubbard's recorded Scientology and Dianetics lectures are also
being preserved on long-playing records made of pure nickel.
These are partially manufactured at CST using the finest possible
mastering equipment available today. After the nickel records
are produced, they are hermetically sealed with a thin coating of
nickel foil which can be easily peeled away at some future date
leaving the grooves of the record completely clean and in perfect
playing condition. In addition to being extremely long-lasting,
the nickel records can also be played back in a variety of ways.
Special turntables for the playback of these records have been
designed by CST which can be powered by normal commercial power
that you find in a home or by solar power. As record turntables
require no computers, (as found in digital equipment) the future
operation of equipment is not a concern. The technology employed
by the nickel records is so simple in fact, that with only a
simple mechanical device to spin the record one could hold a
steel needle or pin in the record groove and be able to hear the
LRH lecture. Even a thorn could be used. This makes the nickel
record the perfect failsafe preservation medium for the
Scientology recorded Scriptures. The estimated total number of
nickel records CST will produce on this project is 187,500.

In addition to preserving the recorded Scripture on archival
Cds and nickel records, all the lectures are also being
transcribed. This is a massive project being conducted by CSI
and is scheduled to take several years to complete. Its purpose
is to have written transcriptions of every one of the Founder's
taped lectures. These transcripts also provide a complete
running record of Mr. Hubbard's researches and discoveries into
the mind and life. Furthermore, although all original recordings
are being preserved as spoken word recordings, many are of very
low quality due to the equipment used at the time, some during
the pioneering days of recording technology. The recordings are
capable of being heard if listened to on top quality equipment
and very precisely deciphered. But they are unusable for
duplication. If transcripts weren't made much of this valuable
Scripture would effectively be denied the Church and its
parishioners.

As CSI completes the transcriptions of these tapes, they are
placed in exact chronological order and published in encyclopedic
volumes entitled [u]Research and Discovery Series.[/u] Ultimately,
these will fill over 100 volumes. A copy of the shooting boards
is provided to CST by CSI at which point CST will reprint their
own archival set in archival volumes as described earlier. This
material will also be etched on stainless steel plates. CST
feels that this level of redundancy is the only assurance that no
matter what occurs the Scriptures of Scientology will never be
lost. This project is very ambitious and the volume of printed
books and etched plates is obviously staggering.

[u]Film Preservation[/u]

Motion pictures is the third medium upon which the
Scientology Scriptures are recorded. There are approximately 100
films featuring or written by Mr. Hubbard, some of which are
used for training auditors in key areas of the technology and
others for introducing the general public to Scientology. Films
present a particular preservation challenge because of the visual
content. Although still under research, CST plans to digitize
these films and transfer them to gold and glass archival laser
discs for retrieval in the distant future. Currently it is it
planned to produce 25 laser disc copies of each film.

[u]Reference Materials[/u]

These preserved Scriptures may emerge into an uncertain
world where civilization is at a low ebb. It may not be possible
for people to comprehend the Scripture without additional
knowledge and the ability to clear confusing words and symbols.
A basic tenet in Scientology study is that one never goes by a
misunderstood word without clearing it up or the person will not
comprehend what is being studied. To facilitate this and to
cover other possible contingencies, CST is including a
comprehensive reference library with its scriptural materials.
The list of materials includes basic texts on all common
subjects, a full range of standard and specialized dictionaries,
including dictionaries in the 20 most commonly spoken languages,
as well as a complete encyclopedia. A total of 105 separate
reference books are included in each set. These books are being
preserved using the same methods and materials for printing and
binding as are used for the Scientology Scriptures described
above.

[u]Storage System for Preserved Scriptures[/u]

Although all archival materials produced by CST have huge
lifespans in themselves, even greater durability was desired.
The use of some form of storage medium was the obvious choice.

No such storage container was available that met CST's needs
and therefore CST researched, designed and engineered its own: a
completely unique titanium time capsule storage container for the
preserved Scripture in its various archival forms.

These capsules are designed to protect the preserved
Scriptures under any circumstances, be it fire, flood,
earthquake, nuclear explosion etc. The air-tight, titanium
storage vessels are so resistant to corrosion that they will
remain completely intact even if immersed in salt water for
hundreds of years. In a less corrosive environment, they will
last indefinitely. The capsules are filled with the Scriptural
materials and sealed. The air is evacuated and replaced with
inert gas which provides a strictly controlled, ideal storage
environment for the materials inside. Each type of preserved
Scripture being stored inside the time capsules is designed to
last for thousands of years, if not indefinitely just on its own
with no special storage considerations.

Placed inside the titanium capsules and surrounded with
inert gas, the preserved Scientology Scripturess truly have the
capability of lasting forever. A total of 10,500 such time
capsules will be produced by CST to store the materials being
produced by CST's current projects.

As some of the time capsules contain heat-sensitive
materials, each capsule is therefore further protected with
thermal covers made from space-age insulation materials. These
thermal covers can withstand temperatures up to 2000 degrees F.
for one hour. This is a higher temperature than would be
experienced in the middle of a raging house fire. The technology
and design used for these thermal covers is very sophisticated
and they are manufactured by the same company that provides
insulation for the space shuttle.

As a final part of the storage system, CST designed and
engineered storage racks to securely hold the time capsules and
thermal covers. The racks are made from corrosion resistent
stainless steel tubing and are of modular design so they can be
stacked for efficient utilization of storage space. Once loaded
the racks are then encased in extremely tough dust covers made
from the same materials used to construct bulletproof vests.

[u]Storage Vaults[/u]

To absolutely ensure and guarantee the survival of the
preserved Scripturess, CST has constructed three vaults for
storage of the Scripturess along with ancillary and support
facilities.

Two of the vaults have been designed to withstand any
conceivable catastrophe including a near direct nuclear blast or
devastating earthquake. These vaults are designed to remain
fully operational with no maintenance for a minimum of 1000
years. The vaults are secured by maintenance-free, stainless
steel doors filled with concrete. By themselves, without any
human intervention, the vaults provide an ideal sealed and
temperature/humidity stable environment for the storage and
preservation of the materials inside. They do not rely on any
mechanical system and can go untended indefinitely.

The third vault is a working vault which is used to house
the originals. This vault is designed to last for hundreds of
years and it is also set up to provide a completely controlled
internal environment for optimum storage of the original
Scripturess.

[u]Future Plan[/u]

The completion of the above projects will satisfy the
current phase of CST's archival preservation activities. There
will be two virtually indestructible vaults containing full sets
of Scriptures on very long-life media, with additional sets of
the preserved Scriptures stored in the vault at CST's main
facility. Thus the survival of Mr. Hubbard's religious
philosophy and technology will be very much assured. To date CST
has expended $52,000,000 on the above preservation programs. By
the time these existing programs are complete, the amount spent
will approximate $114,000,000.

The preservation media will be upgraded as new materials and
techniques become available and this will be an ongoing activity.

The major threat to these vaults and archived Scriptures in
the centuries to come will be from vandals and looters. In large
measure the security of the archives will depend on the political
and social stability of the population in this country. In order
to minimize this risk, CST will be establishing additional
indestructible vaults in other parts of the world in the next
phase of its religious program.

CST also has firm plans to construct many large
indestructible obelisks in different parts of the world with the
express purpose of preserving for all future generations the
basic axioms of Scientology and information on the mind and
spirit, life and morality – which will provide a civilizing
influence. This information will be in pictograph form so that
even a wandering savage will be able to understand and apply
these principles.

[u]Summary[/u]

CST's religious mission is the preservation of the sacred
pure and unaltered Scripturess of Dianetics and Scientology for
eternity so that the religion will not perish through some
natural or man-made catastrophe. CST is not and never has been
an archival repository for CSI and the many churches of
Scientology – its physical storage and preservation of the
original Scriptural materials is incidental to its long-range
purposes as CST utilizes them to assure completely faithful
reproductions of the Scripturess in durable mediums. The storage
and preservation of the original Scriptural material comprises a
minor portion of CST's activities.

CSI supports CST's preservation activities. For example,
and as already mentioned, CSI has an active and ongoing
dissemination program to transcribe Mr. Hubbard's recorded
lectures for use by parishioners in their study of these lectures
and for compilation in book form. CSI provides these
transcriptions to CST for its use in its preservation programs.
At CST's inception, CSI also provided to CST the originals of all
Scriptural material CSI had in its possession – both written and
recorded – once they made their own copies for compilation
purposes.

[u]CSI Staff Personnel[/u]

CST is a "Sea Org" organization, which means its staff
members belong to the Scientology religious order, the Sea
Organization (or the "Sea Org"). To become members of the Sea
Org, CST's staff members must pledge the next billion years of
their existence to the Scientology religion. As Sea Org members,
CST staff live and work in a manner befitting their fundamental
and total commitment to the Scientology faith. They live
communally in church-provided berthing and eat communally in a
church-provided dining room. They are required to live on church
premises so they can live free of the distractions of the secular
world and be ready to attend to their religious duties at any
time during the day or night. As a general matter, each CST
staff member devotes 14 hours a day to his or her ecclesiastical
duties and religious study.

CST staff personnel are compensated for their ecclesiastical
service with a nominal allowance (currently $50.00 a week) and
small bonuses for good performance of their assigned duties, room
and board, medical and dental cost (as needed) and child care or
school tuition for children. CST staff are required to wear the
official uniforms of CST, which are provided to them.

[b]Part II, Question 2 – Sources of Financial Support[/b]

In the past CST's sources of financial support have been:

1. Restricted grants from Mr. Hubbard's testamentary
trust.

2. Contributions from Religious Technology Center from
funding it receives from churches that minister the
Scientology advanced technology (see the response to
Part II, Question 5).

3. Occasional grants from churches of Scientology and
Scientology-related organizations.

4. Interest income.

CST also is the designated beneficiary of the bulk of Mr.
Hubbard's estate, including all his copyrights to the Scripturess
and his remaining rights in the Scientology marks and advanced
technology (see the response to Part II, Question 5), and expects
to receive income in future years from the income-producing
properties contained in Mr. Hubbard's estate. However, CST will
receive the estate only if CST obtains recognition of its
tax-exempt status. If CST does not obtain recognition of its
exemption, Mr. Hubbard's estate is to be distributed to one or
more organizations recognized as exempt under section 501(c)(3)
that operate exclusively for the purposes of the Scientology
religion.

In the future, once CST receives recognition of exempt
status and receives Mr. Hubbard's estate, CST expects its
sources of financial support to be:

1. Royalties from the licensing of copyrights and patents
related to Scientology Scriptures and E-meters, and
from copyrights related to Mr. Hubbard's fictional
works.

2. Contributions from Religious Technology Center from
funding it receives from churches that minister
Scientology advanced technology.

3. Donations or grants from other Scientology
organizations.

4. Interest income.

5. Dividends and donations from ASI's sales of special
properties as described below.

6. Royalties from the licensing of patents and
technologies relating to archival preservation
technology, equipment and products developed through
CST's research.

[b]Part II, Question 3, Fundraising Program[/b]

Prior to his death, Mr. Hubbard's literary affairs,
including matters relating to the copyrights and patents that are
included in Mr. Hubbard's bequest to CST, were managed by Author
Services, Inc. ("ASI"), a for-profit California corporation.
Since Mr. Hubbard's death ASI has continued to carry out the
same function for the executor of Mr. Hubbard's estate and,
subsequently, the Trustee of his testamentary trust. Although
ASI was incorporated as a for-profit corporation, throughout its
existence all of its shares have been owned by a few members of
its staff subject to Stock Redemption Agreements which prohibit
them from selling their stock except upon separation from
employment and then only to ASI for $1.00 a share. No
shareholder of ASI has ever received any dividend or other
distribution of ASI's profits as a result of their status as
shareholders.

Once CST's tax-exempt status is recognized and Mr.
Hubbard's estate is distributed to CST, ASI will become a
wholly-owned subsidiary of CST and continue managing the
properties bequeathed by Mr. Hubbard to CST. CST will receive
all income from such properties and will compensate ASI for its
services at a rate equal to ASI's cost plus ten percent. ASI
currently produces and sells various special properties derived
from Mr. Hubbard's intellectual properties, such as art work and
leatherbound books. When ASI becomes CST's wholly-owned
subsidiary, CST will receive any profits ASI may realize as a
result of its business and property management activities in the
form of dividends and donations.

Once ASI becomes a wholly-owned subsidiary of CST it will conduct
fundraising activities for CST by selling special properties with
part of the purchase price earmarked as a donation to go to CST
to support CST's preservation project.

[...]

[b]Part II, Question 4 – Officers, Directors and Trustees[/b]

[u]Trustees[/u]

JOHN M. ALLCOCK
7051 Hollywood Blvd.
Los Angeles, CA 90028

DAVID H. LANTZ
7051 Hollywood Blvd.
Los Angeles, CA 90028

RUSSELL BELLIN
25426 Highway 189
Twin Peaks, CA 92391

[u]DIRECTORS AND DIRECTORS[/u]

RUSSELL BELLIN – DIRECTOR AND PRESIDENT
25426 Highway 189
Twin Peaks, CA 92391

THOMAS K. VORM – DIRECTOR, VICE PRESIDENT
25426 Highway 189
Twin Peaks, CA 92391

CATHERINE SCHMIDT – DIRECTOR, TREASURER
25426 Highway 189
Twin Peaks, CA 92391

JANE MCNAIRN – SECRETARY
25426 Highway 189
Twin Peaks, CA 92391

The officers, directors and trustees of CST are not
compensated for the duties they perform in those capacities. One
trustee (Russell Bellin) and all directors and officers of CST
also are CST staff members, and are compensated for the work they
perform in their staff capacity as described in the response to
Part II, Question 1. Their specific compensation is listed in
the schedule attached in response to Part IV, line 17,
"Compensation of Officers, Directors and Trustees."

[b]Part II, Question 5 – Relationship With Other Organizations[/b]

CST controls a wholly-owned subsidiary, Mile High, Inc.,
which serves as a title-holding company for property CST uses.
Mile High has only nominal expenditures, and CST advances it
whatever funds it may need. Mile High files its own tax return
each year.

CST at one point also formed a second wholly-owned
subsidiary corporation, Media Storage, Inc., to transfer the
Scripturess securely and confidentially in times of natural
disaster. This corporation is currently dormant.

In the future, once CST is recognized as exempt, it will
become the sole shareholder of Author Services, Inc., as
discussed in the response to Part II, Question 1.

Although CST does not function within the established
authority of the ecclesiastical hierarchy of the churches of
Scientology, CST is related to all churches and organizations
within the hierarchy as a result of certain rights it holds with
respect to two important Scientology religious properties –
certain marks associated with the religion (such as the terms
"Dianetics," "Scientology," and the name, initials and signature
of L. Ron Hubbard, the Founder of Scientology), and the upper
levels of Scientology Scriptures (called the religion's "advanced
technology").

The marks and advanced technology are critical to the
orthodox practice of the Scientology faith. Scientology churches
assure parishioners that their services are orthodox by providing
them under the imprimatur of these marks. When Scientology
parishioners see these marks they know for certain that the
services they are receiving are orthodox and have been taken
directly from the Scripturess.

Religious Technology Center ("RTC"), a California nonprofit
religious corporation, owns the Scientology religious marks and
the right to use the advanced technology in the United States and
is licensed the right to use the advanced technology outside of
the United States. RTC delegates rights to use the advanced
technology and religious marks to churches in the ecclesiastical
hierarchy and then supervises their activities to ensure
compliance with Scriptural requirements. (Copies of the gift
documents pursuant to which RTC received its rights to the marks
and advanced technology are attached as Exhibits D and E,
respectively.)

CST protects the security of the marks and the advanced
technology through rights it has to these properties pursuant to
two options it received from Mr. Hubbard in 1982. These two
options give CST the limited power to acquire RTC's rights to the
advanced technology in the United States and to the religious
marks worldwide if, and only if, they (i) are not preserved in
accordance with the Scientology Scripturess, (ii) are used in a
way that both is contrary to the Scripturess and seriously
damages the Scientology religion or Mr. Hubbard's image, or
(iii) are in danger of appropriation by an entity outside of or
hostile to the religion. (Copies of the gift documents granting
CST these rights are attached as Exhibits F and G.)

However, CST has not and does not conduct any activities
with respect to its rights to the Scientology religious marks and
advanced technology. (CST acts as the ultimate failsafe for
Scientology orthodoxy as described in the response to Schedule A,
Question 1.)

[...]

[b]Schedule A, Question 1 - History of Development of the
Organization[/b]

CST was incorporated under the California Nonprofit
Religious Corporation Act on May 26, 1982. (Exhibit A).

Until early 1982, L. Ron Hubbard owned all rights and
interests in the Scientology religious marks and advanced
technology (confidential advanced religious levels). He
permitted churches and missions of Scientology that used them for
religious purposes to do so pursuant to informal verbal licenses.

At about this time, Mr. Hubbard became concerned about the
disposition of the marks and the advanced technology after his
death. He was particularly concerned that some system of checks
and balances might be necessary to ensure that delivery of the
technology always remained standard. Mr. Hubbard desired to
leave the marks and the advanced technology to the religion, as
he had always promised, but he perceived an inherent conflict of
interest if he were to give full ownership, with the attendant
obligations to supervise use, to the same entity that would
actually use the materials. He also was uncertain whether the
supervising entity, if one were formed, would be able to
discharge its obligations over all the millions of years
Scientology will be practiced.

Mr. Hubbard decided that the best way to satisfy these
concerns would be to divide his ownership of the marks and
advanced technology into separate rights. Each right would be
given to a different church organization that served a particular
function. One organization would delegate responsibility for
delivering the technology and then supervise the actual delivery,
while the other would serve as a "fail safe" mechanism to
preserve the Scripturess in the event they or the Scientology
technology were threatened. Mr. Hubbard thought the failsafe
mechanism might be useful sometime during the millions of years
Scientology will be practiced.

Thus in Hay 1982 Mr. Hubbard assigned to RTC the rights to
the Scientology religious marks worldwide and all rights to the
use of the advanced technology in the United States, both subject
to an option he granted to CST to acquire RTC's rights in the
event the marks or advanced technology are used in a way that is
inconsistent with the Scripturess. (See also response to Part
II, Question 1.)

Mr. Hubbard also made a testamentary gift to CST of the
bulk of his estate, including all retained interests in the marks
and the advanced technology, his copyrights to the Scientology
Scripturess (including the advanced technology), and all other
property he owned that related to the religion, as well as his
copyrights to fictional work and nonreligious properties.
Basically, except for specific bequests to his wife and to
certain of his children and grandchildren, Mr. Hubbard left his
estate, including all his property, to CST on the condition that
CST obtain recognition of its exemption under section 501(c)(3).

Thus CST was formed for the unique purpose of acting as the
ultimate failsafe for Scientology orthodoxy for all time. Since
CST's formation, in addition to carrying out this sacred trust,
its only activities have consisted of ministering Scientology
religious services to its staff and its preservation activities
which are described in detail in the response to part II,
Question 1.

[b]Schedule A, Question 3 - Renunciation of Beliefs of or Membership
in Other Churches or Religious Orders[/b]

The Church of Scientology has no policy or Scriptural
mandate that requires Scientologists to renounce other religious
beliefs or membership in other churches or religious orders. As
a practical matter Scientologists usually become fully involved
with the Scientology religion to the exclusion of any other
faith. Scientology Scripturess, auditing and training, provide
the answers to the fundamental questions of their existence.

Thus a Scientologist who grew up in the Jewish faith who
continues membership with the synagogue he grew up in and
occasionally attends synagogue services violates no Scientology
policy or tenet. On the other hand, such a person is not
permitted to mix the practices of another faith into his practice
and understanding of Scientology in such a way as to alter
orthodox Scientology in any way.

The above applies to Scientologists generally. In the case
of CST, its members are all full-time staff personnel who have
pledged the next billion years of their lives to the Scientology
religion as members of the Sea Org. They are thus totally
committed to the Scientology faith. (See the response to Part
II, Question 1.)

[b]Schedule A, Question 4 - Formal Code of Doctrine and Discipline[/b]

Scientology is a religion based upon the research, writings
and recorded lectures of its founder, L. Ron Hubbard, which
collectively constitute the Scriptures of the religion. The
Scientology Scripturess are the sole source of all the doctrines,
tenets, sacraments, rituals and policies of the Scientology
faith. They encompass more than 500,000 pages of writings,
nearly 3,000 taped lectures and over 100 films.

The basic tenet of the Scientology religion is that man is
an immortal spirit who is basically good and ethical who has
lived through countless previous lifetimes and who will live
again and again. Although he has a mind and a body, he is
himself a spiritual being. The ultimate goal of Scientology is
"a civilization without insanity, without criminals and without
war, where the able can prosper and honest beings can have
rights, and where Man is free to rise to greater heights."

The principal religious practices in Scientology are
"auditing" and "training," which consist of a gradient scale of
religious services addressing the spirit. The purpose of
auditing is to unburden man of past painful experiences and to
orient him as a spiritual being. Auditing results in an increase
in spiritual awareness and ability. Ultimately the person
achieves certainty of himself as a spirit and freedom from
unwanted burdens. At this point he also is certain of
immortality. "Training" also increases spiritual awareness and
ability for the individual and enables a person to utilize the
religious technologies of Scientology to improve conditions with
himself or herself and others.

Scientology is an exact faith, and a fundamental doctrine of
the religion is that its religious services must be orthodox. It
holds that spiritual salvation can be attained if, and only if,
the path to salvation outlined in the Scriptures's religious
technology is followed without deviation.

Scientology doctrine also includes a code of social conduct
by which mankind can accomplish the Scientology goal of a new
civilization. This code, generally referred to as the
Scientology system of ethics, is enunciated throughout
Scientology Scriptures both in general principle and actual
application. The guidelines and rules of Scientology ethical
conduct influence all aspects of a Scientologist's existence.
Scientologists are expected to apply the principles of
Scientology ethics to themselves through self-discipline, to help
them lead ethical and productive lives.

Where a Scientologist fails to do so, Scientology Scriptures
defines a code and justice procedures to help stop unethical
conduct. The ultimate penalty under Scientology ethics and
justice codes is expulsion from the Church.

These doctrines and code of discipline are applicable to all
churches of Scientology and their parishioners, including CST.

[b]Schedule A, Question 5 - Worship Services[/b]

Scientologists attain spiritual enlightenment and salvation
through auditing and training as described in the response to
Question 4 above. Participation in these services raises the
individual to higher states of spiritual awareness as defined in
the Scriptures. Auditing and training are thus the core
religious practices in Scientology.

CST ministers religious services to its own community of
staff members through a regularly-scheduled program of religious
services. Each CST staff member participates in Scientology
auditing or training in Scientology Scriptures or training in
their religious duties a minimum of 12 1/2 hours per week on a
schedule of 2 1/2 hours per day. Four of CST's staff devote all
their time to the spiritual well-being of CST's staff through the
ministry of Scientology religious services. These staff are
fully qualified to minister Scientology religious services to
CST's staff, enabling them to progress up Scientology's Bridge to
Total Freedom in the same manner as staff of other churches of
Scientology and public Scientologists.

[b]Schedule A, Question 6 - Availability of Services[/b]

As a general matter, parishioners of other churches of
Scientology do not visit CST to receive religious services
because CST is located in a very remote area, far from other
Scientology churches, and CST's archival activities are not open
to the public. However, should a qualified parishioner of
another Church of Scientology visit CST and wish to participate
in religious services while there, CST's ministers would
certainly provide the religious services requested.

[b]Schedule A, Question 7 - Methods Used to Attract New Members[/b]

CST's membership is limited to its own staff. To qualify
for a position within CST, an individual must be an experienced
Scientologist with a proven history of service to the religion
and a member of the Sea Org. Thus prospective members of CST
must be experienced staff personnel of other churches of
Scientology who wish to become a member of CST's staff. When a
person indicates a desire to serve the religion through CST, he
or she is contacted directly by CST's personnel office.

[b]Schedule A, Question 10 - Religious Instruction of the Young[/b]

Study of the Scientology Scriptures is available to any
person of any age so long as he or she is able to comprehend the
information contained in the Scriptures. CSI compiles, edits and
publishes Scriptural materials for children in order to make the
information more accessible at an early age. Thus religious
instruction of children is available at any church of Scientology
as soon as the particular child has a suitable level of
comprehension.

CSI has a boarding school near its Hemet, California
facility for the children of its staff that teaches Scientology
catechism as well as secular subjects. Church of Scientology
western United States has a similar facility located on a rural
property north of Los Angeles near Valencia for children of all
Sea Org staff at Churches of Scientology in Los Angeles.
Children of CST staff also attend these schools.

[b]Schedule A, Question 12 - Religious Hierarchy or Ecclesiastical
Government[/b]

As a church of the Scientology religion CST cooperates with
CSI in matters of Church polity and with RTC with respect to
maintaining the orthodoxy of Scientology religious technology.
However, CST is not part of the Scientology ecclesiastical
hierarchy and is not involved with the usual day-to-day
activities of the Church of Scientology.

CST carries out its own day-to-day activities subject to its
own ecclesiastical government that consists of two ecclesiastical
governing bodies – the Executive Council and its subordinate,
the Advisory Council. The Executive Council is the executive
level of CST's ecclesiastical hierarchy and is responsible for
making high-level managerial decisions and for approving proposed
activities and budgets. The Advisory Council is responsible for
managing CST's daily activities, executing all planning approved
by the Executive Council, and advising the Executive Council on
needed changes in activities and policies.

CST's highest ecclesiastical official is its Commanding
Officer, Russell Bellin. Immediately below the Commanding
Officer in CST's hierarchy are three Deputy Commanding Officers.
Each Deputy Commanding Officer is responsible for one of three
areas of religious concern relating to CST's religious purposes
and activities known as Internal, Production (preservation) and
External. The Executive Council consists of the Commanding
Officer and the three Deputy Commanding Officers, who each have
staff assisting their areas of concern.

CST's activities are managed primarily through its Advisory
Council (comprised of the executive heads of CSTs various
divisions), under the direction and control of the Executive
Council. The two Councils work in close coordination in carrying
out their tasks.

CST's activities and programs generally are planned on a
weekly basis. Every week the Advisory Council meets to review
each Division’s progress, to prepare a report on what was
accomplished during the prior week, and to prepare a program of
objectives for the upcoming week. The weekly report and
preservation program are sent to the Executive Council for review
and approval or modification. Once approved, the program is sent
to each staff member to use during the following week.

The Advisory Council also meets routinely to discuss
medium-range planning and coordination of preservation activities
and to develop new preservation programs or changes for
recommendation to the Executive Council.

[b]Schedule A, Question 13 - Established Place of Worship[/b]

See the response to Schedule A, Question 5. CST ministers
its central religious practices, auditing and religious training,
at its principal location in San Bernardino, California. At this
location auditing is ministered in individual sessions conducted
one on one between a Scientology minister and the parishioner in
private rooms which CST maintains exclusively for this purpose.
Religious training is ministered in a large course room where
CST's congregation assembles for this purpose.

[b]Schedule A, Question 14 - Qualifications for Ordination of
Ministers[/b]

Churches of Scientology, including CST, ordain ministers.
To qualify for ordination a minister must be in good standing
with CSI as the Mother Church and must have completed a seminary
training which includes: the study of the basic tenets and
doctrines of the Scientology religion; study of and application
of Scientology religious technology for assisting the sick or
injured; study and application of Scientology pastoral counseling
for assisting people with marital, familial or other problems;
study and application of the Scientology religious ceremonies,
including naming ceremonies ([u]i.e.[/u], baptisms), marriages and
funerals; and study of religion in general, which includes study
of the history and basic tenets of the major religions of the
world.

Ministerial students receive some auditor training as part
of their seminary training and often have been previously trained
for ministering auditing. They are encouraged to continue such
training after ordination.