Undergraduate organizations will no longer be permitted to show any movies with immediate commercial value, Dean Watson announced yesterday.

The latest curtailment of film showing privileges will cut off the main money-making source of the Harvard Liberal Union, the Young Democrats, the Young Republicans, and other undergraduate organizations.

Under the new ruling effective immediately organizations are restricted to showing documentary films. These may be scheduled only after they have lost any competitive commercial value.

The Faculty Committee on Undergraduate Activities has imposed the regulation to guarantee the tax-free status of the University, Watson said.

"Theoretically, undergraduates have no right to charge admission in University buildings, which are tax free,: he stated. "But we shall continue to allow an organization like the Glee Club to charge admission for a legitimate club activity. We do not consider commercial film showing a legitimate activity for a political group."

"There is also the competitive factor to consider," he continued. "Why should undergraduate organizations show popular movies in tax free buildings when local theatres must pay taxes to show the same films?" he argued.

Watson pointed out that if local theatres had wished to complain, they could have made it "very nasty at the State House" for the University under former policies.

The move has followed an earlier University attempt last year to tighten movie showing regulations. Previously, an organization could schedule commercial films if it could justify a tie-up with its specific activity.

The only undergraduate organization which will continue to show movies other than documentaries is Ivy Films. As a film study group, it will be allowed to continue its subscription series, as long as the scheduled films have no competitive value, Watson said.

He pointed out that the Harvard Liberal Union's attempt to show "The Grapes of Wrath" last week was permitted only because it was scheduled under the former ruling. The Dean's Office will not allow a rescheduling of the film.