For decades, the Roman Catholic Archdiocese of Newark has preserved cemeteries for the faithful and their families. To raise money to maintain many of the ageing monuments, the Archdiocese began selling headstones and other funeral monuments.
Feeling threatened by the competition, rival monument builders successfully lobbied lawmakers to ban the Archdiocese from selling headstones to their own parishioners. Not only is the law blatantly anticompetitive, the ban is highly unusual: In 47 states, cemeteries can sell headstones, just not in New Jersey. Now the Archdiocese and the Institute for Justice have filed a federal lawsuit against the state, which could strike a blow against economic protectionism.
Covering 763 acres, the Archdiocese’s 11 cemeteries are the final resting place for nearly 1 million people. Closed to the public, only parishioners and their relatives can be buried in Archdiocese cemeteries. (A small number of Coptic Christians, who fled religious persecution in Egypt, are also interred, after the Archdiocese determined they are “in communion” with the Catholic Church.)
With their cemeteries ever expanding and ageing (two predate the Civil War), the Archdiocese needed funds for upkeep. In a clever innovation, the Archdiocese began offering “inscription-rights:” Parishioners purchase a private mausoleum or headstone and the Archdiocese inscribes it. But parishioners do not own the monument. Instead, under the contract, the Archdiocese owns the mausoleum or headstone and is perpetually obligated to inscribe, install, repair and maintain the monument. Inscription-rights run the gamut from $1,200 for simple headstones to over $300,000 for more ornate private mausoleums.
Since starting the program in 2006, the Archdiocese has generated $6 million in revenue from inscription-rights for private mausoleums. In 2013, the Archdiocese expanded it to headstones and other monuments.
With more than a third of the Garden State identifying as Catholic, inscription-rights became a hit. But incumbent monument builders were less than thrilled.
Rather than try to innovate or offer better services to their customers, the monument builders sued to block the Archdiocese from selling headstones. Under oath, the head of the Monument Builders Association of New Jersey, John Burns, testified at trial, “I don’t think it’s their product to sell. I think it’s our product to sell.”
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