Service Corporation of America
| Company type | Public |
|---|---|
| Industry | Waste management, Environmental services |
| Founded | 1970 |
| Founder | Berton Steir |
| Defunct | 1984 |
| Fate | Became a division of Waste Management, Inc. |
| Headquarters | Boston , United States |
Area served | North America |
Key people | Berton Steir (founder), Tom Viola (former VP), Henry Russell (CEO) |
| Products | Waste disposal, Hazardous waste management, Building maintenance, Vending, Food services, Travel services |
Service Corporation of America—later known as SCA Services, Incorporated—was a Boston-based enterprise specializing in waste and environmental services throughout North America from 1970 until 1984. Eventually, it became a division of Waste Management, Inc.
Initial Phase
Established by Berton Steir, a Harvard alumnus, SCA began as a diversified conglomerate offering a range of services including building maintenance, vending, food services, travel, and waste disposal. Its early acquisitions featured seven vending companies, one building maintenance business, and a single waste hauling firm. Prior to its debut on the New York Stock Exchange, SCA narrowed its focus exclusively to waste disposal. During the early 1970s, it expanded rapidly by acquiring 87 independent contractors through stock-based transactions, typically keeping existing management teams intact. However, complications arose after Steir’s acquisition of New Jersey trash firms using concealed ownership structures, leading to his exit in 1976.
Emergence of Organized Crime Links
SCA was the pioneer large-scale trash hauler to penetrate the New Jersey market, known for its instability. To support this expansion, Tom Viola was recruited; he brought with him connections to criminal networks while serving as vice president. Moreover, an affiliated waste hauling company based in Utica, New York was owned by Anthony Bentro, who had ties to mob figure Anthony Provenzano. Following the assassination of Jimmy Hoffa, multiple SCA executives in New York faced indictments for orchestrating a $300,000 kickback scheme involving organized crime figures and Teamsters union officials.
Growth and Expansion
Despite internal difficulties, SCA grew to become the third-largest waste disposal company in the United States with operations spanning from Boston to California. By 1976, its subsidiaries generated $660 million in revenue. The company operated 1,800 garbage trucks across 90 cities, managed 39 landfill sites, held contracts with 100 municipalities, served 110,000 commercial customers, and maintained a fleet of 100,000 dumpsters. Its data center located in Somerville, Massachusetts provided IT support to acquired hauling companies that previously lacked technological infrastructure.
Hazardous Waste Management
SCA ventured into hazardous waste handling with facilities across five states. One such site near Love Canal in Niagara Falls, New York gained notoriety due to industrial waste lagoons that caused explosions and fires during rainfall events. A notable incident in 1976 involved flames and exploding drums reaching heights of approximately 80 feet. Public backlash prompted SCA to favor incineration methods over landfill disposal for toxic materials. This approach aligned with President Carter’s hazardous waste burial prohibition—though this policy was later rescinded under the Reagan administration.
Decline and Collapse
Criminal affiliations came to light following the murders of several independent contractors who opposed SCA's operations in New Jersey. Nevertheless, local communities quickly returned to utilizing SCA’s services. The company attempted but failed to sell off its New Jersey division amid escalating issues connected to Tom Viola. Viola resigned in 1981 and was replaced by Henry Russell, who had a reputation for integrity. In an uncommon initiative, SCA collaborated with the Environmental Defense Fund to reinstate a ban on hazardous waste dumping; however, these efforts only postponed the company’s eventual downfall.
BFI versus Waste Management
In 1982, Browning-Ferris Industries, headquartered in Houston, attempted to take over SCA, but concerns within the company cast doubt on the feasibility of the acquisition. Earlier, SCA had turned down a $210 million bid from Waste Management in 1977, along with other similar offers. The Canadian waste hauler Laidlaw also considered acquiring SCA but ultimately withdrew due to the firm’s involvement in scandals and criminal links. Eventually, Waste Management, Inc secured a controlling interest by purchasing 60 percent of SCA’s stock through a subsidiary, representing a major consolidation within the waste management sector.