The American Way of Death Revisited - Jessica Mitford [63]
There are some, however, cynical enough to assert that Eaton’s cemeteries are builded for profit, and the occasional glimpses of the financial structure of Forest Lawn afforded by disclosures made in legal proceedings in which it is from time to time embroiled support the view that the memorial parks are, for Eaton, a fantastically profitable form of real estate development.
The United States Board of Tax Appeals, in a 1941 decision, describes the advent of Hubert Eaton to Forest Lawn more prosaically than does Mrs. St. Johns. He was hired in 1912 not as manager but as sales agent for “before-need” sales of cemetery lots. Before he arrived, most of the sales had been made at the time of death—“at need”—and total sales had amounted to only $28,000 in the previous year. Eaton’s door-to-door selling efforts on behalf of that mean, ugly little cemetery upped sales by 250 percent—and this was five years pre-Dream.
By 1937 annual sales of cemetery space had passed the $1 million mark, and sales of other commodities and services (flowers, postcards, urns, bronze tablets, and undertaking services) added another $800,000. By 1959 annual sales exceeded $7 million, of which over $4 million represented sale of cemetery space.
What happens to all this money? Is it really all plowed back for beautification of the Park? If so, it would pay for an awful lot of fertilizer and statuary.
The Forest Lawn Art Guide poses this question: “Again and again people ask: How can Forest Lawn afford to assemble and maintain all of these treasures in such a beautiful place, and open it freely for all to see and enjoy? How can it be that resting places sharing all this loveliness are well within the means of everyone?” The answer is inscribed on a sign by the steps to the Hall of the Crucifixion: “Forest Lawn Memorial-Park is operated by a non-profit association. Excess income, over expenses, must be expended only for the improvement of Forest Lawn.”
Well, yes. Only the operative phrase there is “over expenses.”
Forest Lawn Memorial-Park Association, Inc., the nonprofit cemetery corporation, was the sun around which clustered a galaxy of Eaton-controlled commercial corporations and holding companies. One of these, the Forest Lawn Company, a Nevada corporation, was a land company. Another, a holding company, owned over 99 percent of the land company’s stock; one was a life insurance company (since sold); one was a mortgage and loan company. To the nonprofit corporation, owning no land, was entrusted the actual operation of the cemetery—the mortuary, the flower shop, the sale of graves, crypts, vaults, statuary, postcards, souvenirs. Discreetly behind the scenes was Eaton’s land company, skimming off 50 percent of the proceeds of sales of lots, plots, and graves, and 60 percent of the gross on all sales of niches, crypts, vaults, and other mausoleum space (exclusive of sums collected for endowment care).
It seems curious that the additional land that is needed from time to time for expansion of the existing “Parks” and the development of new ones is not acquired by the cemetery directly. This would save for the beautification of the cemeteries and the ennoblement of mankind the middleman’s profit that is now taken by the land company. Direct purchase of land by the cemetery company would result in substantial tax savings as well, since the land which is taxable in the hands of the land company would be tax-exempt if owned by the nonprofit cemetery. More curious still is the fact that the land company buys and develops the land with money which it borrows from the cemetery at only 3 percent interest. As of 1959 Eaton’s land company had borrowed