April 3, 1952
WICHITA (AP) - Physical assets, copyrights and teaching privileges of the Hubbard Dianetics Research Foundation, Inc., Wichita, were sold in Federal Bankruptcy Court Tuesday to a group of the foundation's officers.
The sale, approved by E. R. Sloan, of Topeka, Federal bankruptcy referee, permits the purchasers to continue operation of the foundation. Sale price was $6,124.
Dianetics, a mental science, was founded by L. Ron Hubbard. Headquarters were moved to Wichita from Elizabeth, N.J., in January, 1951. The foundation, described as engaged in research and promotion in the field of mental science, was incorporated under Kansas law last May.
Last February 22 the foundation went into voluntary receivership. As of February 21, officers said, Hubbard severed connections with the foundation and sold his interest to his associates. He had been chairman of the board.
Officers said Hubbard is now believed to be in Phoenix, Ariz. The receivership petition said the foundation had assets totaling $40,763.19 and liabilities totaling $212,394.33.
Opened Here in 1950
The Hubbard Dianetics Research Foundation, Inc., established its international headquarters at 275 Morris avenue in 1950. The headquarters of the highly controversial organization was moved to Wichita after the New Jersey Board of Medical examiners instituted a District Court suit - never tried - charging the group with operating a medical school without a license. Since then a number of court judgments for unpaid debts have been entered here against the organization.