"DATING BACK" AND "BONDS" 223

Cost, $2.50 per month.

Insurance, $150 if death occurs in first five years; $300 if in second five years.

All the first year's premium for term insurance for one year, i. e., for current expense and risk.

Out of each premium for the subsequent nine years, reserve enough to accumulate at 4 per cent., annually compounded, to $300 at end of period. This called for about $2.30 per month.

Remainder of each premium for the subsequent nine years, for current expense and risk.

The first year's premium and the margin in the subsequent premiums were by the contract made the sole property of the stockholders.

This contract was plainly unconscionable for two reasons. First, because it exacted a premium for one year term insurance at the rate of $30 for $150 insurance or $100 for $500 insurance for a single year. Second, because almost all the sources of profit in the subsequent premiums above 4 per cent. guaranteed, which barely caused the policyholder to realise the amount he paid in premiums, were taken from the insured by the agreement, while he was privately assured that there would be a large gain.

It was fraudulent, also, because of the outrageous misrepresentations, viz., of a profit of 100 per cent., i,. e., $300 on a $300 contract, or $1,000 on a $1,000 contract, in ten years. Had