It was rescinded in 1958 but re-established in 1962, after Major League Baseball expanded, with different and more relaxed stipulations than the original.
[1] In the late 1930s and early 1940s, major league franchises found themselves bidding against one another for the services of young players.
[3] Incidents like the Clete Boyer trade showed how the bonus rule could be circumvented.
[1] After the league added four new teams (the Angels and Senators, followed by the Colt .45s and Mets), the bonus rule was reintroduced in 1962.
The rule was rescinded permanently in June 1965, after the introduction of the Major League Baseball draft.
As a result, the rule came under criticism because it often caused such a player to languish on a major league bench instead of gaining experience in the minors.
Four of those players went on to have Hall of Fame careers: Al Kaline, Harmon Killebrew, Sandy Koufax, Roberto Clemente.
[1] Of the four, only Killebrew, a bonus baby for the Washington Senators, saw any minor league service time once his mandatory two-year period expired.
[7][8] Other notable stars who signed under the original bonus rule were Dick Groat, Clete Boyer, Lindy McDaniel, and Johnny Antonelli.