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Is HSA Any Way to Run a Business?

In his resignation letter, Thomas said HSA interfered with his academic work. Thomas is from Kirkland House, and Arthur Smithies, Master of Kirkland House, is the member of the Commission of Inquiry who suggested the Commission's investigation of HSA this Spring.

It should be added that Thomas' reaction to Ryan is atypical. Most division managers respect Ryan's capabilities and some of them even honored his request to refrain from saying anything substantial to the Crimson. Ryan started as a bartender his freshman year, and worked his way up the HSA ladder. He became the manager of the catering division, one of the agency's most profitable enterprises.

The catering division charges customers $5 per hour with a four-hour minimum. Bartenders receive a base pay of $2.40 per hour for working in Cambridge, $2.60 per hour for working in Boston, and $2.80 per hour for working outside Route 128. They are reimbursed for subway fare or mileage. A group of last summer's employees asked in vain for $3 per hour as base pay. They also demanded to see precise financial data for the catering division, but this request was accommodated only in a very limited way.

In February, only about half the students working for HSA catering were on scholarship. During Christmas and last summer, HSA catering employed a few people who had absolutely no affiliation with the University. "During a very peak season, there may have been one or two employees who are not Harvard students. When I was made aware that that happened, those employees got no more jobs," Ryan said. "What we have to do is make better efforts earlier to recruit people to work over Christmas."

Ryan himself has called the catering division HSA's "biggest offender" for not hiring scholarship students. Since February HSA has steadily increased the percentage of scholarship students it employs in the catering division. Weekly reports of the number of jobs given to scholarship students are now sent to the Student Employment Office.

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Like the charter flights division, the catering division is suddenly getting a taste of strong competition. A former secretary for the catering division has started Independent Student Associates, Inc. This new catering business pays bartenders $3.25 per hour and does away with the four-hour minimum. Those in the HSA catering division accused the secretary of taking unfair advantage of HSA files on bartenders and customers. Most of the employees of Independent Student Associates have worked for HSA.

EVEN the Freshman Council jumped on the bandwagon of those investigating HSA. A freshman poll taken in March revealed wide scale dissatisfaction with HSA linen and HSA refrigerators. Of 188 students subscribing to the linen service, 63 per cent said they were dissatisfied. They complained about inconvenient hours at the depots, the price of the linen, short sheets and dirty linen. Of 119 freshmen renting HSA refrigerators, 74 per cent said they were dissatisfied and cited the expense, the low quality and poor service as their main complaints.

In the midst of widespread discontent, HSA released on March 21, 1972, its first public report in five years. The report showed that in the calendar year 1971, HSA paid $125,173 in wages, of which only $76,017 went to scholarship students. The financial statement demonstrated a skewed distribution of wages. Of about 290 students earning $50 or more annually, 30 students earned more than $1000. Of these 30 students, 11 were not on scholarship. Of the 28 students earning between $500 and $1000, 14 were not on scholarship. Although some HSA divisions have been quite profitable, HSA suffered an overall net loss of $12,675 in the fiscal year ending May 31, 1971. Alumni have contributed about $50,000 over the past few years to help HSA pay its deficits. This year, at least, HSA's financial picture has improved and shows a slight net income.

Ryan's term ended May 31. During the last months of his presidency, he improved HSA by responding constructively to much of the criticism offered from different corners. Ryan agreed to write a report to the community this year and proposed to the Board of Directors that annual reports be issued. Ryan said he wants to write a thesis next Fall, for that reason he did not run for another term as president even though he was eligible.

It seems that HSA will follow two of the Commission of Inquiry's three major recommendations: submitting weekly lists to the Student Employment Office of the number of scholarship students hired and issuing substantive annual reports. But the leadership of HSA will probably remain a source of controversy. Abolishing the position of president and giving his authority to the general manager will not solve the problem. Some members of the HSA Board of Directors do not feel the present adult General Manager is capable of handling efficiently any additional responsibility. There has been talk all term about the possibility of not rehiring him.

If the present leadership structure remains, it will require a series of competent presidents willing to put in the requisite long hours. In the past, HSA has had a wide spectrum of presidents, from honest competent hard workers to dishonest operators taking a year-long free ride.

THE new president, Arthur I. Segel '73, said he is going to spend a lot of time next year improving HSA's image. Segel is no stranger to the office of president, which he held in his senior year of high school and in his elementary school. Whether Segel spends his year making real changes or devotes his time merely to cosmetic image building will depend in part on a vigilant community that insists on reform.

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