The American Way of Death Revisited
Page 13
Another idea used by most cemeteries is the “perpetual care fund.” The uninitiated might expect that, having paid a pretty penny for a crypt or a grave, the costs of upkeep might be borne by the cemetery. Not at all. There is added to the cost of cemetery and mausoleum space a surcharge of 10 to 20 percent for future care; some mausoleums charge as much as 25 percent of the price of the crypt. Graves need tending, it is true, but the care that needs to be lavished on a cement crypt is somewhat hard to envisage.
The monies so collected are kept by the cemetery owner, supposedly as an endowment fund to guarantee such care forever in the future, a promise palpably incapable of fulfillment. Nevertheless, the magic of pre-need selling has swelled these funds in many cases to huge proportions. The money held in such funds in the United States totaled over $1 billion in 1961 and has swelled to over $20 billion in the ensuing thirty-five years.
The cemetery operators to whom these funds have been entrusted have not always been as scrupulously honest in their stewardship as one might hope. The itinerant promoter who moves his sales crew into a community to saturate it with pre-need sales is hardly the type one would expect to sit around and wait for his sold-out cemetery to fill up, much less wait forever to lavish perpetual care upon it. And when he moves on to the next community, he has not always been able to resist the temptation to take the perpetual care fund with him—for safekeeping, of course, or at least to dip into it for a loan at low interest to purchase new cemetery property. After all, the money is there to be invested.
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 percent for its funeral establishments. And the cemeteries in North America that yield the highest returns are those, like Forest Lawn, that have self-contained mortuaries and flower shops. It is these that the corporate consolidators scramble for most avidly, leading to bidding contests that some securities analysts consider rash.
After Words
Tempest in New York:
Hearing Slams Cemetery Marketing Practices*
By any standard, it has not been a great public relations year for cemeterians. In California, recent headlines have widely spread the story of grim violations at numerous prominent cemeteries, including disinterment, multiple burials, non-maintenance, and fraud/embezzlement. Now comes New York, where the controversy has taken a new direction and focused not so much on cemetery maintenance, but on ownership policy and marketing practices.
Under New York law, cemeteries are not-for-profit enterprises, regulated in part to help ensure that sufficient money is set aside for perpetual care. The current debate therefore centers on the following questions: Is it proper, then, to allow funeral homes, established to make money, to acquire an interest in cemeteries? And could pressures for profit this year endanger the sanctity of care in the years to come? The State Cemetery Board held a hearing in Albany last week to address these and other issues as part of broader legislation on cemetery reform taking shape in both houses of the New York legislature.
As usual, the hearing placed on public view a distorted image for funeral service. The recent expansion of The Loewen Group and SCI into the New York cemetery market is the underlying factor which has brought the issue to a head. It is no secret that both companies have bought many funeral homes in the region in recent years—and they are increasingly buying cemeteries as well.
The New York State Funeral Directors Association, for one, has mixed feelings about this development. Wayne Baxter testified that his membership is concerned that joint ownership might expose the public to excesses by unscrupulous funeral directors. He said regulations may be needed to ensure that money from the nonprofit cemeteries is not funneled into the profit-making funeral homes—a scenario that is more conceivable with joint ownership. The National Catholic Cemetery Conference, through spokeswoman Ellen Woodbury, also charges “conglomerate ownership” with an “outrageous litany of untruths and misinformation” designed to steer mourners away from religious cemeteries. “We have a 2,000 year old tradition of caring for the dead as a matter of faith, not as a matter of profit,” she said. Finally, Rabbi Elchonon Zohn, speaking for the Jewish Community Relations Council, also considered joint ownership problematic, maintaining that there is an incentive to adopt marketing practices that could generate immediate profits (such as selling two-for-one grave sites), but weaken a cemetery’s ability to maintain care when its space is sold out.
Whether true or not, recent alleged selling tactics by a Loewen Group sales person have prov
ided ammunition for the reform camp—and made no friends in the major Roman Catholic diocese on Long Island. A Loewen representative, offering a “free crypt” at a nearby Loewen-owned cemetery, made the mistake of approaching Ellen Woodbury, director of cemeteries for the Rockville Centre Catholic Diocese and President of the National Catholic Cemetery Association. It was not a pretty picture—and Ms. Woodbury claims to have captured it all on tape.
“Congratulations,” the voice on the phone told Ellen Woodbury, “You’ve won a free grave.” It was a telemarketer on behalf of The Loewen Group seeking an appointment. As widely reported in the New York Post, one of the first things the sales person did upon arrival was hand the promised “free grave” certificate to Woodbury and her husband. She soon made it clear, however, that the giveaway grave was less than desirable. It was in a section of the cemetery where, she said, the graves are sinking. “Wouldn’t you rather be in the aboveground crypts under development?” the saleswoman asked. She said the “free grave” certificate could be turned in for a discount in a “better” part of the cemetery—and the cemetery would guarantee the Woodburys a 15% discount at a local Loewen-owned funeral home as long as financing was made in advance. As described, a perfectly legal sales pitch was transformed into a blatant cemetery/funeral home tie-in, not to mention a classic bait-and-switch marketing maneuver.
The Loewen saleswoman did not have the good sense to at least stop right there, and apparently went right on to slander the condition of and long-term outlook for Catholic cemeteries in the area. In a letter obtained by this Monitor from Ms. Woodbury to the Diocese of Rockville Centre, she notes: “The part of the presentation which concerned me most was when my husband and I mentioned we were Catholic and felt inclined to choose a Catholic cemetery rather than a non-sectarian one. The counselor insisted that Catholic cemeteries are not maintained as well as Washington Memorial Park, have very limited space, and are definitely not funded, being totally dependent on the diocese in which they are located to support the care and maintenance of the grounds and building in the future. She continued that, as a result of the Church’s current financial condition, there would definitely be no funds available in the future for the maintenance of their cemeteries. When approached, she insisted that even Pope John Paul refused to permit a special cemetery collection to help dioceses offset this expense. These are outlandish statements and lies.”
The state attorney general is reviewing the tape for possible violations of consumer protection laws and other regulations—and The Loewen Group would also appreciate having a copy. Larry Miller, of The Loewen Group’s Cemetery Division, clearly stated that criticism of any religion is not part of the company’s sales program—and vowed to investigate and fire any employee found to be engaging in religion bashing. He also said that Loewen telemarketers are trained to follow a carefully written script and “everything is above board.” According to Miller, the “free grave” offer is genuine and not part of any bait-and-switch scam, and he noted that “thousands” of people have taken advantage of the offer in 38 states in which the company has holdings.
Marketing, as always, is probably one of the touchiest areas in funeral service—given the volatility of the topic and, often, the vulnerability of the client—and this latest dustup only reconfirms the point. Done correctly, there is nothing illegal about telemarketing: A service or product is available at a fair price and you, Mr. and Mrs. Consumer, should know about it.
Certainly, with 9,000 employees, The Loewen Group or any other large mega-business is going to have its share of overzealous sales people who aggressively cross the line into unfair and/or fraudulent marketing ploys. Is the basic problem a compensation system based on commissions? Does that particular motivating factor impel too many sales people over the line? No easy answers here. In conversation with Loewen cemetery division officials, it became clear that commissioned sales people are the traditional—and proven—way to go, and that straight salary or salary/commission combinations have not yielded the optimum sales results. To this Monitor, the key element is to hire the best and insist on sales training—heavy-duty training which explicitly outlines strict limits, largely scripted presentations, and provides no excuse for lack of knowledge about the dos and don’ts.
The Loewen Group and any other deathcare enterprise must maintain a strong company policy against high-pressure selling tactics—and promptly fire those who venture off the reservation. It has been said before: Other businesses can afford their occasional bad apples a lot better than funeral service can.
* See end-of-chapter note.
* Rose Hills (Los Angeles) Memorial Park boasts “the world’s largest lawn mower.”
* Not true. In many states, home burial is still permissible in rural areas; and in all states, cremated remains may be buried on private property. In every state except California, cremated remains may be scattered at will or with the landowner’s permission.
* This article first appeared in the Funeral Monitor, March 25, 1996. Reprinted with permission.
9
Shroudland Revisited
Nothing in Los Angeles gives me a finer thrill than Forest Lawn…. The followers of a triumphant Master should sleep in grounds more lovely than those where they have lived—a park so beautiful that it seems a bit above the level of this world, a first step up toward Heaven.
—BRUCE BARTON,
quoted in Art Guide to Forest Lawn
Forest Lawn Memorial-Park of Southern California is the greatest nonprofit cemetery of them all; and without a doubt its creator—Hubert Eaton, the Dreamer, the Builder, inventor of the Memorial Impulse—is the anointed regent of cemetery operators. He has probably had more influence on trends in the modern cemetery industry than any other human being. Mrs. Adela Rogers St. Johns, his official biographer, sees Forest Lawn as “the lengthened shadow of one man’s genius.” Even as she was writing those words, that long shadow was creeping over much of the cemetery land in the territorial United States; today it spans oceans, extending to Hawaii and even to Australia.
The Dreamer and his brainchild are already known to tens of thousands of readers through The Loved One, by Evelyn Waugh—to whom Mortuary Management refers as “Evelyn (Bites-The-Hand-That-Feeds-Him) Waugh.” If there are skeptics who think that Mr. Waugh may have been guilty of exaggeration, a visit to Forest Lawn should set their minds at rest.
I was among the one and a half million who passed through the entrance gates one year; the guidebook says they are the largest in the world, twice as wide and five feet higher than the ones at Buckingham Palace; and (presumably to warn anyone rash enough to try hefting one) adds that each weighs five thousand pounds.
It is all there, just as Mr. Waugh has described it, although in the intervening years since The Loved One was written, there have been many additions, so the overall impression is that today it far transcends his description.
There are the churches, ranging from wee to great, the Wee Kirk o’ the Heather incongruously furnished with wall-to-wall carpeting, the Great Mausoleum Columbarium, primarily patriotic in theme, with its Memorial Court of Honor, Hall of History, Freedom Mausoleum, and Court of Patriots. “Does one have to be a citizen or sign a loyalty oath to get into the Hall of Patriots?” I asked a guide. “No, ma’am!” was the answer. “Anyone can be buried there, as long as he’s got the money to pay for it.” (This is not strictly true; Forest Lawn refused convicted rapist Caryl Chessman’s last remains “on moral grounds.”)
There are statues, tons of them, some designed to tug at the heartstrings: Little Duck Mother, Little Pals, Look, Mommy!, others with a different appeal—partially draped Venuses, seminude Enchantresses, the reproduction of Michelangelo’s David, to which Forest Lawn has affixed a fig leaf, giving it a surprisingly indecent appearance.
A 1996 visit to Forest Lawn Memorial-Park in the Los Angeles suburb of Glendale confirmed the extraordinary stability and vigor of the business.
There has been no change in style.
The Dreamer has been put to rest in the Court of Honor, but the vulgarity of his Dream is being maintained with a sure and faithful hand—shooting-gallery statuary, gift shop, Wee Kirk o’ the Heather. Changes are in terms of scale only. There are now five Forest Lawns in Southern California where once there stood one—Hollywood Hills, Cypress, Covina Hills, and Forest Lawn-Long Beach, “formerly Forest Lawn-Sunnyside,” complete the roster.
Forest Lawn’s “life size replica” of Michelangelo’s David was toppled from its pedestal and demolished, fig leaf and all, in the Sylmar earthquake of 1971. Another replica, sans fig leaf, installed a decade later fared no better. David was removed when ladies’ groups took exception to his full frontal nudity.
While Forest Lawn operates funeral parlors and flower shops in each of its locations, the sale of burial plots is still the core of its business. Medium-priced graves are now priced at $5,580 in the Vale of Faith to $10,900 in the Terrace of Brilliant Star; 15 percent is now added for perpetual care. Should you want something better, $27,000 will get you into the Terrace of Sunlit Skies, and for $31,000 you may join even more select company in the Garden of Honor (which features piped-in pop hymns, a feature that might make it, for some, their idea of perpetual purgatory). You may if you wish install an approved statue, but to do so you must buy four or more grave spaces.