REBATING AND OTHER SCHEMES' 215

Another scheme which has been employed within a few years past, only, is to offer stock in the company for sale in connection with its policies. Obviously, this is a thing which can best be done by a new or young company, or, in any event, in introducing a company in a given State or vicinity. If a small amount of stock were sold to each purchaser of a policy as a permanent practice the stock returns would necessarily be small and the speculation unattractive.

No argument is required to show that it is to the advantage of the new and small company, and, indeed, to any company, in organising a new field to enlist as many of the most influential men as possible. To secure them as stockholders is the most effectual way to accomplish this and also the fairest, for they then pay directly and in full for the interest which they possess. With their money actually invested in the stock of the company, they are openly concerned in its welfare and success and can with perfect propriety invite their friends and acquaintances to patronise a company in which they are interested.

It has been found that the agents of a new and small company can earn a better income at a lower rate of commission when introducing the company into a new field if the stock is offered with the policies. By doing this, therefore, the