When the Harvard Student Agencies first sprang into existence last fall, there was much talk on the part of its leaders that the new organization was conceived to aid the needy scholarship lad, that it would most certainly not compete with local Harvard Square merchants, and that it was not directly affiliated with the University. Such talk proved reassuring at the time; but with the passage of months the philanthropic organization has begun to take on the shape of a potentially large scale monopoly, which gives a rather unsavory big business appearance to the academic community.

First has come the recognition that HSA is affiliated with the University. Any employment leads of interest to the HSA which come into the Student Employment Office go exclusively to HSA; the organization has its offices on University property; and the very use of the name Harvard in a business operation close to the College has a coercive effect. The HSA may make contracts with other business enterprises for exclusive rights, such as that of supplying linen to undergraduates, thus depriving the student of the right to choose a service for himself. This also implies the coercion of outside firms, since the HSA can sign, for all undergraduate middlemen, a large contract which would have considerable influence over individual firms.

HSA also holds a tax-exempt status, on the basis that money earned while working for HSA will be used exclusively to pay College term bills; and finally, HSA holds an effective monopoly of student enterprise, because of the fact that any undergraduate who solicits in the dormitories must obtain a permit from the University.

This last stipulation, combined with the rule which states that a student cannot operate any type of business interest from his College room, means essentially that the undergraduate who wants to make some money had better join the HSA--like it or not.

This does not seem to be in keeping with the spirit of individual initiative of which the University has always been proud. While the HSA, with its large financial resources pool, undoubtedly provides a great service for the man who wants to start a student enterprise but does not have the necessary funds, it should not be an organization which coerces students into joining big business.

Another objection to the existing HSA setup arises over the matter of tax-exemption. Since the HSA has already admitted that non-scholarship as well as scholarship students may work for the organization, it seems unlikely that the profits will be used solely for the purpose of paying the term bills of needy undergraduates. In particular, some of the managers of the individual agencies apparently stand to make in a single year more than the amount of a Harvard term bill. This would seem to be a misuse of the tax-exempt status.

Because of this tax exemption and the low overhead costs derived from having offices on University property, HSA has a financial advantage which makes it extremely unfair competition for Harvard Square merchants. Already the proposed creation of a photographic agency threatens to move the HSA into such a competitive position. HSA's vying for business with Square merchants is also bad for Cambridge-Harvard relations, which, on the whole have been some thing less than felicitous of late.

Since the HSA has deviated widely from its original premises of operation, it should change its present form and break all ties with the University. Its relationship with the Student Employment Office would then be that of any other individual. It would have no exclusive privileges, would not retain its tax-exempt status, and would be free to compete with Harvard Square merchants on an equal basis.

The present organization--effectively a potential big-business concern hiding behind illegitimate academic immunities--can only arouse the anger of Cambridge merchants, detract from the freedom of undergraduate enterprise, and perhaps endanger the tax status of the University.