Officials say the company is hoping to expand, possibly opening two new divisions within the next year. General Manager Richard M. Olken '68, who has been in office for almost one year, says HSA may take over the management of several House grills.

But for all the good news, there have been growing pains as well. The burgeoning size of the company means that its managers have more money to play with, and more to lose.

Last year, for example, HSA lost nearly $170,000, according to its tax returns. Company officials say the number does not include all the profits earned at Let's Go--which was spun off at the start of fiscal 1993 and stopped filing joint returns with HSA--and reflects a national and regional economic slowdown.

But even beyond the regular business cycles faced by all companies, some of HSA's divisions are showing signs of aging. Its linen agency, which throughout the 1960s commanded a virtual monopoly on campus laundry service, posted a 58 percent decrease in profits last year, according to the IRS filings. The Crib, HSA's convenience store in the Harvard Union, lost nearly $14,000 last year, after showing a slight profit in fiscal 1992.

And managing the money is only one concern. In recent years, HSA officials have struggled with concerns over whether the company is straying from its mission as a tax-exempt, not-for-profit charity aimed at benefiting students.

As outlined in documents on file with the state attorney general's office, HSA's primary mission is to provide practical business experience for Harvard students "who are in need of financial assistance to defray the expenses of their education."

HSA is also supposed to contribute all "profits in excess of reasonable needs" toHarvard's general financial aid fund, according tothe documents.

But HSA's business practices raise questionsabout whether the company's resources really arebenefiting students in need. All students,regardless of need, are allowed to work at HSA,and the vast majority of the company's employeesearn only a few hundred dollars a year.

In addition, despite the sizable profits ofrecent years, HSA has never contributed money toHarvard. And the company last year spun off itsmost profitable divisions--publishing andsales--into Let's Go, Inc., a separate, for-profitsubsidiary. The reason? According to companyofficials, they realized that the Let's Go travelguides were aimed primarily at the communitybeyond Harvard.

With all these concerns, why is Martin Escobarilaughing?

For one thing, Escobari's future looks rosy.Asked about his plans, the HSA president rattlesoff a list of the prestigious Wall Street firmswhere his predecessors now work. The leader ofAmerica's largest student-run corporation speaksof one day working at the International MonetaryFund or the World Bank.

More importantly, however, Escobari's presentis pretty rosy as well. The long hours he spendsworking at HSA's Church Street offices are wellcompensated. Last year, Escobari pocketed ahandsome $11,800, according to HSA's tax returns.

Other HSA managers did similarly well, withvice president Regina Ford '95 earning just over$10,000.

Escobari does not deny that the money is apowerful incentive for HSA's employees to makesignificant time commitments to theirextracurricular activity.

"No job at HSA is volunteer," he says. "Everyperson here is paid a competitive wage, eventhough some people would do this for free. We'reall pulling in nice salaries."