Harvard's ties with the Middle South Utilities, through personal and financial connections, are close. The University owns $125 million worth of Middle South stock, and another $589.812 of bounds in one of Middle South's subsidiaries, Mississippi Pewer and Light.

At the same time, Treasurer Bennett sits as a director of Middle South, and-as manager of the State Street Investment fund-oversees another block of Middle South stock almost as large as Harvard's. Even the Harvard-Yenching Institute owns 18,668 shares, worth about $400.000.

Klan

The recurring complaints against Middle South have centered on the hiring practices of Mississippi Power and Light. Several times in the last six years, student groups have claimed that the company discriminates against black workers, and that its managers include Ku Klax Klan members, Harvard has firmly denied the charges. Three years ago, President Pusey said that any discriminations should be covered by federal law. More recently, Bennett reported that his personal investigation revealed no problems.

'Serious Discrimination'

Several other groups, however-including the Mississippi Council on Human Relations, the NAACP, and the Southern Regional Council-have been conducting their own studies of the company. The U.S. Commission on Civil Rights-an independent Federal agency-also recently concluded an investigation. Commission spokesmen said yesterday that final results would not be available until next week, but that the study revealed "serious problems of discrimination."

An agent of the Southern Regional Council, who asked not to be identified, said yesterday in Atlanta that Harvard's interest in the company was fairly common knowledge among civil rights workers in the South, "I think most people realize that Miss. P and L is outside-owned, Harvard-owned," he said.

South Africa Affiliates

Although Harvard has invested nearly 40 million dollars in companies with South African affiliates or subsidiaries, the University has escaped much of the furor which swept through other Ivy colleges over such investments.

Students raised the issue once before in 1967-at the same time that students at Princeton and Yale were questioning their investments-but Harvard has not decreased its holdings since then.

When Lewis M. Finfer '72 mentionel South African investments at Monday's meeting, Bennett replied "Is that bad?"

Higher Wages

"American companies in South Africa pay higher wages, have better working conditions and tend to make native companies raise their standards," Bennett said, "and therefore they have a good effect on the country."

Bennett called the General Motors investment in South Africa "wholesome." If American companies withdraw, he said, South Africa will go bankrupt and "both black and white will go down the drain,"

David Plotke '71, a member of the November Action Coalition, countered that American firms can have little influence in affecting South African apartheid.

Lower Wages

He noted that wages formulated in conjunction with the South African government are invariably lower for blacks than whites and there is not an open market for black labor in the country.

"Perhaps the short term effect is good," Plotke said, "but in the long run, the companies support the government and reinforce its position."

Another African issue concerns Harvard's investment in oil companies operating in the Portuguese colony of Angola.

Since 1966, Gulf Oil-of which Harvard owns $25.630.751 in stocks-has been developing a rich oil field in the Cabinda area of Angoia. As part of its contract for use of the field, Gulf has agreed to pay the Portuguese government 30 per cent of all its Cabinda profits, plus a set royalty on each barrel of oil produced there.