The American Way of Death Revisited - Jessica Mitford [56]
A fund of over $20 billion, available for investment at the discretion of cemetery owners, can serve as a powerful political weapon. Only after the misappropriation of funds became a public scandal did a few state legislatures begin to impose legal controls on the investment of cemetery trust funds. The potent cemetery lobby (it is the envy of the funeral directors, who carry less weight in the state legislatures) has contrived to secure laws that are not unduly burdensome, and in some states the regulation of perpetual care funds is placed under the benign authority of a board composed entirely of cemetery owners.
Municipal cemeteries are operated as a public service and are often partially subsidized by public funds. Since they do not as a rule advertise, or send salesmen out on commission, they are able to offer cemetery space and services at moderate cost.
What happens when, for the first time, commercial cemeteries move into a community where there is already a municipal cemetery? A sales team blankets the community, sells pre-need lots at from three to ten times the price charged by the municipal cemetery, which has no advertising or pre-need promotion budget. The reaction of the city fathers is likely to be, “Now that sufficient burial space is available from a private source, why spend money to operate a municipal cemetery?” or, “Let’s raise our rates and make it self-supporting—if they can do it, why can’t we?” In the latter case, the municipal cemetery gets itself an advertising appropriation, perhaps hires a crew of pre-need salesmen, and up go the charges correspondingly.
Cemetery men have also found in pre-need selling a means of cutting themselves into the veterans’ market, a source of business from which they would be excluded by the federal laws which give veterans and their wives the privilege of burial in national cemeteries without charge. Pre-need selling enables the cemetery man to outflank the undertaker. He gets into the home first—years ahead of the undertaker, in fact—seduces the family with his glossy catalogues, and points out that the veteran’s $300 burial allowance can be applied to the cost of the grave. That one must die in a VA hospital or nursing home to qualify may never get mentioned.
Pre-need cemetery promoters, in considering whether a particular community is ripe for exploitation, are least of all concerned about whether there is a deficiency of cemetery space. All they want and need to know is how often the town has been previously canvased by pre-need salesmen, and how many householders already own cemetery lots. Consequently, duplication of cemetery facilities goes on apace. Once, in hearings on a cemetery application in Los Angeles, there was testimony from numerous sources that there already existed sufficient cemetery facilities to handle all burials in the Los Angeles area for the next hundred years.
Having saturated a community with pre-need graves, crypts, vaults, and memorials, and having established a perpetual care fund the control of which is firmly under his thumb, how next can the cemetery promoter cash in on his privileged position? It should surprise no one who has come this far that men of vision in the industry have already looked ahead and come up with the ultimate solution: a prepaid package that will include not only burial space and marker but “casket,” hearse, undertaking services, and flower shop as well.
We have seen that funeral home charges are today eight to ten times what they were thirty years ago. And while cemetery prices have increased correspondingly, the leap in profitability has been nothing short of spectacular. SCI, for example, reported a profit margin of 34 percent for its cemetery operations in 1995, a performance which would do credit to any corporation in the Fortune 500, compared with a still robust 22