Harvard Student Agencies, Incorporated

"To organize, conduct, and supervise business enterprises . . . by and for the benefit of students of Harvard University who are in need of financial assistance . . . to provide experience for its members in the management and conduct of business affairs . . . to foster, encourage, and inculcate in its members qualities and habits of work, thrift, and self-reliance . . ."

No one would disparage the objectives stated in the charter of the Harvard Student Agencies, Inc. The real question is to what extent these aims have been implemented, and here there is room for improvement. The members and directors of the HSA are the first to admit this. "With any new business," John U. Monro, Director of Financial Aid and creator of the organization, observes, "there is a natural tendency to grow, to press for its success."

The HSA, he adds, has "pressed for its success in ways in which we didn't intend to. This has had the effect of scaring people." It pressed newsstand operators, doughnut men, photographers, and others; all little men, marginalia in a growing concern. The HSA is growing; no doubt about that.

Stranger in the Fold

Sometimes the expansiveness of the business ethic raises cries of monopoly, illegal practices, or coercion; and the HSA, placed in the context of a sensitive and critical student body, has suffered from the awareness of a non-business community that a stranger is in its midst.

"The heart of the problem," as Monro sees it, "is to distinguish between the intent of the Board of Directors and the individual instances of excess. This is a very large organization. We have tried to lay down some general guide-lines, but we don't try to overdirect agencies."

Generally speaking, this has been the case. Each agency is more or less autonomous in its own sphere. Managers are required only to keep records and to submit occasional reports to the corporation. Aside from several infrequent meetings with Dustin Burke, general manager of HSA and Director of Student Employment, few students have any connection with the intricacies of the organization.

The charter granted by the State of Massachusetts declares the HSA to be "a private non-profit corporation." There is a Board of Directors, consisting of five students, five businessmen, and five Faculty members, which has the final authority for all actions and policies of the corporation.

Members of the HSA annually elect the Board of Directors, which in turn appoints the President, a student, and the General Manager of the agency. In addition to the President, there are two other student officers, a clerk and a treasurer. None of the officers receive any compensation for their services.

While the corporational framework of the HSA is made up of students, alumni, Faculty, and Administration members, most students have contact only with president Greg Stone, Burke or Monro. This triumvirate tries to coordinate the policies passed by the Board with the operations of students.

Basically the HSA has three relationships to maintain; with the University, the local business community, and the students. The question of the organization's relation to the University is a vague and ambiguous one.

Legally, there is no connection between the agency and the University, although the HSA's brochure states, "Since several University officials serve on the Board of Directors, the corporation will provide an organization through which the policies and regulations of the University affecting student businesses may be developed and communicated."

University Co-operation

HSA's relations with the University, though informal, have been very friendly. The House Masters and Freshman Dean have been willing to grant permission to member agencies to solicit in the College, at a time when the privilege of solicitation is a rare and limited one. In short, the University has no control over the HSA, but it does work in close cooperation with the corporation.

When the idea for the organization, according to Stone, was first presented to the members of the Harvard Square Businessmen's Association, "most of them approved of it outright. A few wanted to know how it would affect them. They were afraid the HSA would become some sort of monster."

These fears have failed to materialize, and despite its expansion, the HSA has not interfered with business in the Square. The corporation "has walked on egg shells in that area," as Monro phrased it. Consequently, the agency has received a fair amount of cooperation from local businessmen.

The Secret Out

The HSA has been less fortunate, however, in its relations with students. The corporation had been in the planning over the summer, and when its existence, a well-kept secret, was announced as a fact last Fall, cries of alarm and fear arose from those who were to be absorbed into the new organization.

From a strictly financial point of view, most students already in business objected to paying ten per cent of their profits to the agency. It was a difficult thing for many to see why the rate was fair.

At the organizational meeting of the HSA last Fall, called to explain the purposes of the agency to the students, the ten per cent rate was called "a contribution toward the overhead." It was explained as a necessity for covering the operating costs of existing agencies and the expense of setting up additional ones.

Those who referred to the rate at all, did so in somewhat glowing and Utopian terms. Contributions were expected for a better future. John Grogan, one student, recalled the attitude as, "Someday the money will benefit someone."

Six for Ten

Most students, like Rolf Goetze, manager of the Refreshment Agency, view the ten per cent as an "assessment." Not many, however, are aware that in return for the assessment, each agency receives a certain amount of insurance, standardized records and a general accounting system, secretarial services, credit strength of the corporation to assist in borrowing, and use of office facilities.

"Ten per cent was hit on as a possible rate," Monro points out. "I don't doubt that it will change from year to year, and ought to change." Whatever changes are made, either for retaining a higher or lower standard rate, or for introducing a more flexible rate, should take into consideration the fact that some agencies have no use for the facilities offered, and therefore receive no benefits from their assessment.

Furthermore, most students are unsure whether they will have to pay ten per cent of their profits at the end of the year, whether the assessment is subtracted from their earnings on a weekly or monthly basis, or whether they will have to pay the rate at all. The establishment and explanation of an adequate system of assessment would be a great benefit to HSA.

Channel and Force

Two deeper criticisms of the HSA remain; the distinction between providing a channel whereby an eager entrepeneur may realize his business ambitions; and the HSA as a coercive force or monopoly in the conduct of its business.

According to its brochure, "The corporation was organized to assist needy students in setting up small businesses to earn money to meet their college expenses." In its first year of operations the HSA will net approximately $35,000 in profits, to be distributed among 150 students.

"Most of the students in the HSA," Monro points out, "are those with financial need." Neverthless, Stone states, "there are a lot of fellows who don't need to make money but who have business incentive. We don't want them in existing agencies, but if a guy has a new idea, we'll help him."

Individual incentive and initiative are values strongly stressed by the agency, and are, in fact, the values which distinguish agency jobs from all other jobs in the University. Most of the students receive a salary plus a commission, and, consequently, the earnings are generally high.

Students selling milk and doughnuts earn from $600 to $900 a year. The earnings for students in the Beer Mug and Banner Agency, the Birthday Cake Agency, the Watson Rink Refreshment Agency, and the Blotter Agency are about the same. The Student Linen Agency and one or two others, are even more rewarding.

Incentive Rewarded

Whereas helping the needy student may be the agency's objective, it tends to become lost in the realities of the business world. The result is that the person with that great intangible, 'business incentive', is rewarded for his efforts apart from any financial need he may have.

"Need is strictly a relative position," Burke emphasizes. "When we say we're here to help needy students, this does not necessarily mean only scholarship students. We hope to fill the HSA with the most needy students--but I would hesitate to tell any student he is not needy." In short, need is a signifi