Caper:
That practice was not unusual. I have seen electrical contractors from the East to the West coasts, did do it the way you describe.
It was not covered, until Andy Cartel sent in a proposal for the 87? NEC to make sure the rule required the EGC's to be inside the box.
Here's the current rule in the 2002 NEC:
250.148 Continuity and Attachment of Equipment Grounding Conductors to Boxes.
Where circuit conductors are spliced within a box, or terminated on equipment within or supported by a box, any separate equipment grounding conductors associated with those circuit conductors shall be spliced or joined within the box or to the box with devices suitable for the use.
