For more than six decades, American Seed Co. of Lancaster, Pa., provided thousands of youngsters with their first lessons in free enterprise. Grade school children scampered about their neighborhoods selling the firm's garden seeds for a chance to share in the profits and win prizes like bicycles and baseball mitts. But now American Seed has gone out of business, the victim of childhood corruption. Since 1975, some 400,000 young business people have sent away for the seeds but then pocketed all the sales receipts, instead of returning part of the money to the company as payment for the seed. So far this year, American Seed has lost $600,000 through this small-collar crime.
The children often had elaborate excuses for not paying the firm. One South Carolina boy wrote to the company: "Sorry I cannot send you your money. Our house was broken into and a lot was taken. All my money and seeds was taken. I would like to have the 'Fireball' shoe skates. Please send them. I will pay." But unfortunately for the company, most tykes simply took the money and ran.