CHAPTER XXII
"DATING BACK" SCHEMES AND INVESTMENT BONDS

ALL of the schemes so far mentioned, it will be observed, have been used to secure for the companies the patronage and support of men who are deemed influential in the community. The rebate was the oldest of them, freely resorted to by the larger and more enterprising of the companies. Some of these also made use of the "board plan," when they were younger and smaller. The scheme of local boards and the scheme of selling stock with policies have, how-ever, been the resort of new and small companies. Each of them is susceptible of great abuses, rebating of degeneration into giving business away, and the others of the abuse of extravagant estimates, amounting to fraudulent misrepresentation; but, as competitive business devices, there is little to say against any of them when not abused, and in point of fact legislative or departmental interference with them has originated in practically every case with rival companies or agents who have found the competitive advantage thus transferred to other

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