ICHIHARA, Chiba Pref. -- It was the start of a real-life horror story for the people of Ichihara's Otsubo district when a smokestack suddenly appeared in a neighbor's yard in August last year.

Standing on the grounds of what was once a large, stately home, they soon learned, was the crematorium of their new, unexpected neighbor -- a final resting place for pets. Not only was an incinerator built, but the home was refurbished to serve as both office and mausoleum.

When operations began, the incinerator began spewing a foul-smelling smoke. Directly hit were nearby grocers, restaurants and food manufacturers, some of which saw sales plummet by as much as 20 percent, as customers began avoiding "food contaminated with the ashes of cats and dogs."