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Dianetics was organized and centralized to consolidate power under Hubbard, and groups that were previously recruited were no longer permitted to organize autonomously. Winter, hoping to have Dianetics accepted in the medical community, submitted papers outlining the principles and methodology of Dianetic therapy to the Journal of the American Medical Association and the American Journal of Psychiatry in 1949, but these were rejected.Publisher's Weekly gave a posthumous plaque to Hubbard to commemorate Dianetics' appearance on its list of bestsellers for one hundred weeks.Author Russell Miller argues that Scientology "was a development of undeniable expedience, since it ensured that he would be able to stay in business even if the courts eventually awarded control of Dianetics and its valuable copyrights to ... In 1952, Scientology was organized to put this intended science into practice, and in the same year, Hubbard published a new set of teachings as Scientology, a religious philosophy.Marco Frenschkowski quotes Hubbard in a letter written in 1953, to show that he never denied that his original approach was not a religious one: “Probably the greatest discovery of Scientology and its most forceful contribution to mankind has been the isolation, description and handling of the human spirit, accomplished in July, 1951, in Phoenix, Arizona.Satter observes that in "keeping with the typical 1950s distrust of emotion, Hubbard promised that Dianetic treatment would release and erase psychosomatic ills and painful emotions, thereby leaving individuals with increased powers of rationality." According to Gallagher and Ashcraft, in contrast to psychotherapy, Hubbard stated that Dianetics "was more accessible to the average person, promised practitioners more immediate progress, and placed them in control of the therapy process." Hubbard's thought was parallel with the trend of humanist psychology at that time, which also came about in the 1950s.Shortly after the introduction of Dianetics, Hubbard introduced the concept of the "thetan" (or soul) which he claimed to have discovered.Studies that address the topic of the origins of the work and its significance to Scientology as a whole include Peter Rowley's New Gods in America, Omar V.

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The foundation soon entered bankruptcy, and Hubbard lost the rights to his seminal publication Dianetics: The Modern Science of Mental Health in 1952.

The global spread of Scientology at the latter half of the 1950s was culminated with the opening of churches in Johannesburg and Paris, while world headquarters transferred to England in Saint Hill, a rural estate. Dianetics is different from Scientology in that Scientology is a religion while Dianetics is not.

The purpose of Dianetics is the improvement of the individual, the individual or “self” being only one of eight "dynamics." In January 1951, the New Jersey Board of Medical Examiners began proceedings against the Hubbard Dianetic Research Foundation for teaching medicine without a license, which eventually led to that foundation's bankruptcy. Ron Hubbard originally intended for Scientology to be considered a science, as stated in his writings.

Hubbard spent three semesters at George Washington University but was placed on probation in September 1931. In July 1941, Hubbard was commissioned as a Lieutenant (junior grade) in the U. Having run out of depth charges and with the presence of a submarine still unconfirmed by other ships, Hubbard's ship was ordered back to port.

A navy report concluded that "there was no submarine in the area." A decade later, Hubbard claimed he had sunk a Japanese submarine in his Scientology lectures.