I don't think your getting what i am trying to say,so here it goes again lol

Yup - you're right. I'm not getting what you're saying.

You have a bunch of bodies-whino's/street people etc.You bury them in a massive hole. (Are you for real)
The families want a grave for each of them.And the cemetary chief says that each will have one but in reality he has put alot of bodies in one mass grave.

Don't the families get suspicious when they go to the funeral expecting to see a coffin being lowered into the grave and buried? How do you get round that one?

Then the cem boss let's the families buy a tombstone and they place it(where they think there loved one is buried)at the spot..

You mean, where they saw the coffin go into the ground?

The tombstone only takes up about 2x3 feet of space. If there was a body under the stone it would take up atleast 8x3 feet.

This much area on the surface has to be preserved to keep it looking real, whether it is or not. People know what a grave should look like - have you ever seen one?

But there is no body there and the boss has saved himself alot of space.And the family isn't the wiser for what has happened.

The bottom line is that every tombstone needs space around it. You can't have another tomstone encroach on this space (8x3 feet as you suggest) Can't you see the problem with this. If not, start your own cemetary and let us know how you get on.