These fears have failed to materialize, and despite its expansion, the HSA has not interfered with business in the Square. The corporation "has walked on egg shells in that area," as Monro phrased it. Consequently, the agency has received a fair amount of cooperation from local businessmen.
The Secret Out
The HSA has been less fortunate, however, in its relations with students. The corporation had been in the planning over the summer, and when its existence, a well-kept secret, was announced as a fact last Fall, cries of alarm and fear arose from those who were to be absorbed into the new organization.
From a strictly financial point of view, most students already in business objected to paying ten per cent of their profits to the agency. It was a difficult thing for many to see why the rate was fair.
At the organizational meeting of the HSA last Fall, called to explain the purposes of the agency to the students, the ten per cent rate was called "a contribution toward the overhead." It was explained as a necessity for covering the operating costs of existing agencies and the expense of setting up additional ones.
Those who referred to the rate at all, did so in somewhat glowing and Utopian terms. Contributions were expected for a better future. John Grogan, one student, recalled the attitude as, "Someday the money will benefit someone."
Six for Ten
Most students, like Rolf Goetze, manager of the Refreshment Agency, view the ten per cent as an "assessment." Not many, however, are aware that in return for the assessment, each agency receives a certain amount of insurance, standardized records and a general accounting system, secretarial services, credit strength of the corporation to assist in borrowing, and use of office facilities.
"Ten per cent was hit on as a possible rate," Monro points out. "I don't doubt that it will change from year to year, and ought to change." Whatever changes are made, either for retaining a higher or lower standard rate, or for introducing a more flexible rate, should take into consideration the fact that some agencies have no use for the facilities offered, and therefore receive no benefits from their assessment.
Furthermore, most students are unsure whether they will have to pay ten per cent of their profits at the end of the year, whether the assessment is subtracted from their earnings on a weekly or monthly basis, or whether they will have to pay the rate at all. The establishment and explanation of an adequate system of assessment would be a great benefit to HSA.
Channel and Force
Two deeper criticisms of the HSA remain; the distinction between providing a channel whereby an eager entrepeneur may realize his business ambitions; and the HSA as a coercive force or monopoly in the conduct of its business.
According to its brochure, "The corporation was organized to assist needy students in setting up small businesses to earn money to meet their college expenses." In its first year of operations the HSA will net approximately $35,000 in profits, to be distributed among 150 students.
"Most of the students in the HSA," Monro points out, "are those with financial need." Neverthless, Stone states, "there are a lot of fellows who don't need to make money but who have business incentive. We don't want them in existing agencies, but if a guy has a new idea, we'll help him."
Individual incentive and initiative are values strongly stressed by the agency, and are, in fact, the values which distinguish agency jobs from all other jobs in the University. Most of the students receive a salary plus a commission, and, consequently, the earnings are generally high.
Students selling milk and doughnuts earn from $600 to $900 a year. The earnings for students in the Beer Mug and Banner Agency, the Birthday Cake Agency, the Watson Rink Refreshment Agency, and the Blotter Agency are about the same. The Student Linen Agency and one or two others, are even more rewarding.
Incentive Rewarded
Whereas helping the needy student may be the agency's objective, it tends to become lost in the realities of the business world. The result is that the person with that great intangible, 'business incentive', is rewarded for his efforts apart from any financial need he may have.
"Need is strictly a relative position," Burke emphasizes. "When we say we're here to help needy students, this does not necessarily mean only scholarship students. We hope to fill the HSA with the most needy students--but I would hesitate to tell any student he is not needy." In short, need is a signifi