WRIGHT, MARION, Legal Director, NAACP, Legal Defense and Education Fund, Jackson, Miss. YLVISAKER, PAUL, Director, New Jersey Department of Community Relations, accompanied by Colonel Kelly, Chief of State Police; Oliver Lofton, Director of Legal Services; Stanley Van Ness, Governor's Counsel; John Spinelli, Press Secretary to Governor; and James Blair, Department of Community Affairs; Timothy Still, President, United Community Corp.; David Sullivan, Assistant Director, Plainfield Human Relations Commission; Charles Miller, Vice Chairman, Plainfield Human Relations Commission; and Don MacDonald, Department of Community Affairs. YORTY, S. W., Mayor, Los Angeles, Calif. Appendix F CONSULTANTS, CONTRACTORS, AND ADVISERS ADLER, JAMES, Attorney, Los Angeles, Calif. AILES, STEPHEN, Attorney, former Secretary of the Army. AMERICAN INSURANCE ASSOCIATION, New York, N.Y. AMSTERDAM, ANTHONY G., University of Pennsylvania Law School. ASTOR, GERALD M., Look magazine BAGDIKIAN, BEN H., Rand Corp. BAILEY, DOUGLAS, Washington, D.C. BAAT, JOHN, College of Law, University of Kentucky BELLOW, GARY, Deputy Director, California Rural Legal BENNETT, LERONE, Jr., Ebony magazine. BLAKEY, G. ROBERT, Law School, University of Notre Dame. BLUMBERG, ABRAHAM S., Department of Sociology, City University of New York. BLUMENSON, MARTIN, Alexandria, Va. BLUMSTEIN, ALFRED, Institute of Defense Analysis, Washington, D.C. BODNER, JOHN, Jr., Attorney, Washington, D.C. BOONE, RICHARD W., Executive Director, Citizens' Crusade BORDUA, DAVID J., Department of Sociology, University of Illinois. BRADLEY, THOMAS, Councilman, Los Angeles, Calif. BRANDSTATTER, ARTHUR F., Director, School of Police Administration and Public Safety, Michigan State University. BUREAU OF APPLIED SOCIAL RESEARCH, New York, N.Y. CAHILL, THOMAS J., Chief of Police, San Francisco, Calif. CAMPBELL, ANGUS, Director, Survey Research Center, University of Michigan. CAPLAN, NATHAN, Institute for Social Research, University of Michigan. CAPRON, WILLIAM M., The Brookings Institution. CHAYES, ANTONIA, Consultant, Action for Boston Development, Inc. COLEMAN, JAMES, Department of Social Relations, Johns Hopkins University. COLM, GERHARD, National Planning Association, Washington, D.C. CONWAY, JACK, Executive Director, Industrial Union Department, AFL-CIO. CRISCI, RALPH F., Project Director, the Legal Aid Society, DAHL, RAYMOND A., Former Inspector, Milwaukee Police De- DERSHOWITZ, ALAN M., Harvard Law School. DUHL, LEONARD, Department of Housing and Urban Development, Washington, D.C. DUMONT, MATTHEW, National Institute of Mental Health, Bethesda, Md. ECKER-RACZ, LASZLO L., Washington, D.C. ECKSTEIN, OTTO, Department of Economics, Harvard University. EMORY, FRED, Center for Advanced Studies in the Behavioral Sciences, Stanford, Calif. ENGLE, BYRON, Director, Office of Public Safety, Agency for International Development. ESTAVER, PAUL E., Assistant Program Director, Office of Law Enforcement Assistance, Department of Justice. FAIN, JIM, Editor, the Dayton Daily News. FEINSINGER, NATHAN, School of Law, University of Wisconsin. FITZPATRICK, JAMES F., Attorney, Washington, D.C. FLAMING, KARL, Director, Milwaukee Urban League Study. FLEMING, HAROLD C., President, Potomac Institute, Washington, D.C. FOGELSON, ROBERT, Department of History, Columbia University. FORER, LOIS G., Community Legal Services Incorporated, Philadelphia, Pa. FRANKLIN, JOHN HOPE, Chairman, Department of History, University of Chicago. FULLER, HILTon M., Jr., Executive Director, Police-Community Relations Committee, Atlanta Bar Association. Gain, Charles, Chief of Police, Oakland, Calif. GANS, HERBERT, Center for Study for Urban Education, New GARMIRE, BERNARD L., Chief of Police, Tucson, Ariz. ment. GELSTON, GEORGE M. (Maj. Gen.), Adjutant General, State of Maryland. GIACCHINO, ALDO, Newark City Planner. GIBSON, WILLIAM M., Director, Law and Poverty Project, Boston University School of Law. GILMORE, JOHN, New York City Police Department. GINSBERG, MITCHELL I., Human Resources Administrator, New York, N.Y. GIRARDIN, RAY, Former Commissioner, Detroit Police Depart ment. GOLDFARB, RONALD L., Attorney, Washington, D. C. GOLDSTEIN, HERMAN, University of Wisconsin Law School. GORDON, KERMIT, President, the Brookings Institution. GRIMSHAW, ALLEN D., Department of Sociology, Indiana University. GROSS, MARTIN L. (Col., retired), Former Public Safety Advisor, Agency for International Development. GUNTHER, JOHN J., U.S. Conference of Mayors, Washington, D.C. HAMILTON, RANDY, Institute for Local Self-Government, Berkeley, Calif. HARE, NATHAN, Washington, D.C. HARRIS, LOUIS, Louis Harris Associates, New York, N.Y. HILL, RODERIC (Maj. Gen., retired), Former Adjutant General, State of California. HINE, RICHARD P., Reporter, the Dayton Daily News. HOLZMAN, JAMES C., Director, Department of Public Safety, INDIK, BERNARD P., Department of Psychology, Rutgers INGERSOLL, JOHN, Chief of Police, Charlotte, N.C. ISAACS, HAROLD, Department of Political Science, Massachusetts Institute of Technology. JAFFE, SANFORD, Executive Director, Governor's Select Commission on Civil Disorders, State of New Jersey. JANOWITZ, MORRIS, Department of Sociology, University of Chicago. JOHNSON, JAMES, Department of Political Science, Princeton University. JONES, J. PAUL, Grand Rapids City Planner. JONES, KENNETH, Consultant in Community Relations, Washington, D.C. KAGEL, DAVID L., Attorney, New York, N.Y. KAMISAR, YALE, University of Michigan Law School. KAPLAN, MARSHALL, Marshall Kaplan, Gans & Kahn, San Francisco, Calif. KELLEY, CLARENCE M., Chief of Police, Kansas City, Mo. KIMBALL, WARREN Y., Manager, National Fire Protection Association. KOTCHE, EDWIN J., Circuit Court Judge, Rockford, Ill. LA FAVE, WAYNE R., School of Law, University of Illinois. LANG, KURT, Department of Sociology, New York University at Stoneybrook. LEARY, HOWARD R., Police Commissioner, New York, N.Y. LEE, EUGENE C., Director, Institute of Governmental Studies, University of California, Berkeley. LEFCOWITZ, MYRON, Institute for Research on Poverty, University of Wisconsin. LOHMAN, JOSEPH, Dean, School of Criminology, University of California, Berkeley. LEWIS, WILFRED, The Brookings Institution. LIEBOW, ELLIOTT, Special Projects Section, National Institute of Mental Health, Bethesda, Md. LOFTON, OLIVER, Administrative Director, Newark Legal LOFTUS, ROBERT, Helm-Loftus, Washington, D.C. LOWE, JOHN, Detroit City Planning Commission. LYNCH, JOHN P., Investment Executive, Pittsburgh, Pa. MADL, JOHN D., Deputy Superintendent of Police, Chicago, Ill. MALONEY, JOHN C., Medill School of Journalism, Northwestern University. MANGUM, GARTH, Codirector, Center for Manpower Policy Studies, George Washington University. MARGOLIS, HOWARD, Institute for Defense Analysis, Washington, D.C. MARSHALL, KENNETH, Metropolitan Applied Research Corporation, New York, N.Y. MARTYN, KENNETH, Vice President for Academic Affairs, California State College at Los Angeles. MARX, GARY T., Department of Social Relations, Harvard University. MASOTTI, LOUIS J., Department of Political Science, CaseWestern Reserve University. MATCH INSTITUTION, New York, N.Y. MATTICK, HANS W., Associate Director, Center for Studies in Criminal Justice, University of Chicago Law School. MCCORD, WILLIAM, Department of Sociology, Rice University. MCDONALD, ROBERT, Grand Rapids United Community Services. MCNAMARA, EDMUND L., Commissioner of Police, Boston, Mass. MEIER, AUGUST, Department of History, Kent State University. MICHIGAN LAW REVIEW, Ann Arbor, Mich. MORSELL, JOHN, National Association for the Advancement of Colored People. MOYNIHAN, DANIEL P., Director, Joint Center for Urban Studies, Massachusetts Institute of Technology-Harvard University. MURPHY, Patrick V., Director of Public Safety, Washington, D.C. NATIONAL LEAGUE of Cities, Washington, D.C. NEMORE, ARNOLD, Executive Director, National Manpower Policy Task Force. NETSCH, DAWN CLARK, School of Law, Northwestern University. NEUSTADT, RICHARD C., Director, Kennedy Institute of Politics, Harvard University. NEWMAN, JASON T., Washington, D.C. NICKUM, HELEN, & Associates, Washington, D.C. OAKS, DALLIN, University of Chicago Law School. O'HAGAN, JOHN T., Chief, Fire Department, New York, N.Y. PAIGE, JEFFERY, Department of Sociology, University of Michigan. PALMERI, BENEDICT, Police Department, Rockford, Ill. PATRICELLI, ROBERT, Minority Counsel, Senate Subcommittee on Employment, Manpower, and Poverty. R. L. POLK & Co., Detroit, Mich. POLLITT, DANIEL H., School of Law, University of North Carolina. PORTER, DOROTHY B., Librarian, Moorland Collection, Howard University. PRICE, DON K., Dean, John F. Kennedy School of Government. PRIEST, H. SAMUEL, Former President, Board of Police Commissioners, St. Louis, Mo. PUBLIC ADMINISTRATION SERVICE, Chicago, Ill. PURDY, WILSON E., Director of Public Safety, Dade County, PYE, KENNETH A., School of Law, Duke University. RADELET, LOUIS, School of Police Administration and Public REDDIN, THOMAS, Chief of Police, Los Angeles, Calif. REMINGTON, FRANK J., School of Law, University of ROCHFORD, JAMES, Deputy Superintendent, Chicago Police Department. RODMAN, HYMAN, the Merrill Palmer Institute. ROE, ELEANOR J., Law School, University of Wisconsin. Rossi, PETER, Chairman, Department of Social Relations, Johns Hopkins University. RUBIN, IRVING J., Director, Detroit Transportation and Land Use Study. RUDWICK, ELLIOTT, Department of Sociology, Southern Il linois University. RUTH, HENRY S., JR., Law School, University of Pennsylvania. SANDMAN, HENRY J., Director of Public Safety, Cincinnati, Ohio. SCAMMON, RICHARD M., Director, Elections Research Center, Governmental Affairs Institute. SEALY, LLOYD, Assistant Chief Inspector, New York City Police Department. SEARS, DAVID, Department of Social Relations, Harvard University. SCHIFF, ARTHUR, Community Action Agency New York, N.Y. SCHUMAN, HOWARD, Department of Sociology, University of Michigan. SCHWARTZ, HERMAN, School of Law, State University of New York at Buffalo. SHELDON, RICHARD, Ford Foundation. SIMULMATICS CORP., THE, New York, N.Y. SKOLNICK, JEROME H., Senior Social Scientist, American Bar Foundation, Chicago, Ill. SMELSER, NEIL, Department of Sociology, University of California, Berkeley. Spiegel, John P., Director, Lemberg Center for the Study of Violence, Brandeis University. STEIN, JOHN, University Research Corporation, Washington, D.C. Steiner, GilbeRT Y., The Brookings Institution. STERNLIEB, GEORGE, Department of Business Administration, Rutgers University. Strecher, VicTOR, Director, Law Enforcement Study Center, Washington University, St. Louis. STURZ, HERBERT J., Director, Vera Institute of Criminal Justice. SVIRIDOFF, MITCHELL, Ford Foundation. SWEITZER, ROLAND, Inspector, Maryland Police Department. TAYLOR, CORNEFF R., Director, Department of Research, Milwaukee Urban League. THREATT, JAMES, Director, Newark Human Relations Commission. THUROW, LESTER, Department of Education, Harvard University. TOBIN, JAMES, Department of Economics, Yale University. TOMLINS, T. M., Research Psychologist, Office of Economic Opportunity. TRANSCENTURY CORPORATION, Washington, D.C. TURNER, RALPH, Chairman, Department of Sociology, University of California, Los Angeles. UNIVERSITY OF PENNSYLVANIA LAW REVIEW. WADE, RICHARD, Department of History, University of WALD, PATRICIA, Attorney, Washington, D.C. WASSERMAN, ROBERT, Staff Assistant, School of Police Admin- WILSON, JAMES Q., Department of Government, Harvard WILSON, ORLANDO W., Former Superintendent of Police, Chicago Police Department. WINNICK, LOUIS, Ford Foundation. WOODWARD, C. VANN, Department of History, Yale University. YANG, PAUL, City Planner, Plainfield, N.J. YLVISAKER, PAUL, Commissioner, Department of Community YOUNG, ARTHUR F., Chief, Housing Division, Bureau of the Census. YOUNGER, IRVING, School of Law, New York University. Appendix H BASIC FINDINGS AND RECOMMENDATIONS OF THE NATIONAL ADVISORY PANEL ON INSURANCE IN RIOT-AFFECTED AREAS1 THE INSURANCE PROBLEM There is a serious lack of property insurance in the core areas of our Nation's cities. For a number of years, many urban residents and businessmen have been unable to purchase the insurance protection they need. Now, riots and the threat of riots are aggravating the problem to an intolerable degree. Immediate steps must be taken to make insurance available to responsible persons in all areas of our cities. Insurance: A Necessity for Homeowners and Busi nessmen Insurance is a basic necessity for a property owner. By paying a premium that represents a relatively small amount compared to the value of his home or business, an owner acquires protection against the possibility that his property may be damaged or destroyed. The opportunity for every responsible individual to obtain security for his savings and investments is vital in a free society. This requires fair access to insurance. Without insurance, the savings of millions of individual citizens are exposed to the risk of loss from natural and man-made hazards they cannot control. Society cannot erase the suffering of the innocent victims of fire, windstorm, theft, or riot. But it can at least provide the opportunity to obtain insurance to safeguard their capital, and thereby prevent a disastrous occurrence from becoming a permanent tragedy. Insurance: An Essential Force in Revitalizing Our Cities Insurance is essential to revitalize our cities. It is a cornerstone of credit. Without insurance, banks and other financial institutions will not-and cannotmake loans. New housing cannot be constructed, and existing housing cannot be repaired. New businesses cannot be opened, and existing businesses cannot expand or even survive. Without insurance, buildings are left to deteriorate; services, goods, and jobs diminish. Efforts to rebuild our Nation's inner cities cannot move forward. Communities without insurance are communities without hope. The Urban Core Insurance Crisis Unavailability and High Cost.-A great deal of evidence confirms that there is a serious lack of prop 'These basic findings and recommendations are set forth in ch. 1 of the Advisory Panel's report, "Meeting the Insurance Crisis of Our Cities." The full report can be obtained through the Government Printing Office, Washington, D.C. erty insurance in our Nation's inner cities. Residents and businessmen from urban core areas throughout the Nation have stated that they cannot purchase the property insurance they need. Some say they cannot find insurance at all. Others say that they cannot obtain insurance at prices they are able to afford. Some who now have insurance are afraid that their insurance will be cancelled in the near future or not renewed. Many do not make legitimate claims for fear of losing the insurance they have. In Newark, N.J., when a butcher was asked whether he had any insurance, he answered: "No, sir. Nobody wants to insure us. No insurance-everyone I see. I [would] give my right hand [for it]." A Detroit, Mich., homeowner told us: "I was paying $85 previously for three years' coverage, and now they told me [it would cost] the same amount of money for one year." The owner of a shoe repair store in Omaha, Nebr., was asked whether he had insurance on his merchandise, and responded: "No sir, not a penny ✦ ✦ ✦. [T]en days after the riot, automatically all insurance was dropped out." These are not isolated voices. Insurance problems have affected whole communities. At our hearings, the president of a leading savings and loan association in the Watts area of Los Angeles testified: "Real estate activity is practically at a standstill. Residents in this curfew area, wanting to purchase property outside the area, find it almost impossible because of their inability to seil the property they presently occupy. The sale of these properties is dependent upon financing through reputable financial institutions, which are reluctant to do so because adequate fire insurance coverage is not available. *** "The problems now being faced by residents of ghettos in this country are the result of long periods of discrimination, and we should not permit the results of discrimination to be used as an excuse for doing nothing. The problems of the ghetto must be solved, and we submit that a lack of adequate insurance coverage adversely affects the economy of a community." Adequate insurance is unavailable not only in our major cities but in other areas as well. One insurance company executive said: "[W]e emphasize that the problem is not alone that of the core areas of a limited number of metropolitan centers, but also that of hundreds of towns and cities of every size throughout America." In order to determine the intensity of the problem, we conducted a systematic survey including personal 291-729 O-68-21 interviews of approximately 1,500 homeowners and 1,500 businessmen in poverty areas of Boston, Cleveland, Detroit, Newark, Oakland, and St. Louis. The survey disclosed that over 40 percent of businessmen and close to 30 percent of homeowners had serious property insurance problems. Over 20 percent of the businessmen and 6 percent of the homeowners surveyed did not have basic fire insurance coverage. In Boston, over 35 percent of the businessmen surveyed had no fire insurance, and in Detroit over 12 percent of the homeowners were without it. Of those who were uninsured, 35 percent of the businessmen and over 50 percent of the homeowners said that insurance was unavailable. Close to 30 percent of the uninsured businessmen and homeowners said that insurance cost too much. Nearly 50 percent of the businessmen surveyed had no burglary and theft insurance. In Boston the figure was 74 percent. Of those businessmen without burglary and theft insurance, nearly 30 percent said they wanted it but it cost too much; nearly 25 percent said they wanted it but could not get it at any price. Impact of the Riot Peril.-Recent riot losses have further constricted the supply of insurance in our inner cities. Regardless of whether the management of the insurance industry anticipates rioting in the future, it feels that it must-in the interest of its policyholders and stockholders-prepare for even the remote possibility of extraordinary losses from civil disorders. This theme has been repeatedly emphasized by a broad spectrum of insurance company spokesmen. The president of the American Insurance Association, an organization representing 170 companies, testified at our hearings: "It is not enough merely to hope that riots will not recur and that, if they do, the damage will not be beyond the capacity of insurers to absorb in their normal operations. Watts served notice on all of us, and still the public and insurers were largely unprepared for what happened in 1967. The lesson is all too clear. I hope that we will profit by this costly experience and not be lulled into complacency and nonaction by wishful thinking that losses cannot reach catastrophic proportions." The general manager of the American Mutual Insurance Alliance, an organization of 122 companies, told the Panel: "Some companies are especially concerned over their exposure to the continuing threat of sporadic civil disorders. These companies are being asked to maintain existing insurance in urban areas, and so far they are doing so. But they may not be able to continue doing so, out of concern for their solvency, unless some method can be found to neutralize this excessive riot exposure. * "[W]e have to recognize the possibility, however remote, that future disorders could develop large enough dimensions to threaten the future ability of insurers to meet their obligations to policyholders." The president of the National Association of Independent Insurers, an organization representing 350 companies, testified: "[O]ur industry does not possess either the power to forestall future riots or the ability to predict the scope and severity of any which may occur. We must therefore reckon with the possibility--whether imminent or remote-that more riots may occur, and that they might conceivably produce insurance losses far surpassing the financial capacity of the companies involved to absorb." The industry is not the only knowledgeable group that sees in recent riots a formidable threat to the supply of insurance and the solvency of the insurance business. Thus, the National Association of Insurance Commissioners an organization of the insurance commissioners of the 50 states on the basis of the studies of a select committee on the insurance problems of civil disorders has recently reported: "The hazard of loss from riot or civil disorders viewed in the context of recent events poses grave underwriting, rating and capacity problems for the private property and casualty insurance industry. Civil unrest has manifest itself throughout many parts of our nation. Its future course is uncertain. This fact has apparently led major insurer managements and underwriters to conclude that they must either be individually relieved, in whole or in part, from exposure to these perils or guard themselves by careful control on writings in areas regarded as vulnerable. These conditions and attitudes constitute not only a deterrent to the development of programs designed to expand the availability of fire and extended coverage insurance in most cities, but threaten to result in even more serious constriction of such markets." Insured property losses from riots in the summer of 1967 were under $75 million, far less than the $715 million loss caused by Hurricane Betsy in 1965 and less than 3 percent of the total property losses that will be paid for 1967. Nevertheless, the sum approximated 13 percent of the entire underwriting profit of the insurance industry in 1966. Riot losses have further burdened those lines of insurance already relatively unprofitable and those segments of the industry already the most heavily commited to writing urban core business. Thus, even though the Panel has no doubt that the insurance industry has the financial strength to absorb losses even greater than those sustained in the summer of 1967, we believe that the industry is justifiably concerned about the threat-no matter how unlikely of future riot losses. Another aspect of the industry's concern, in view of the civil disorders, is uncertainty about whether it can obtain enough reinsurance-insurance purchased by insurance companies to protect themselves against excessive loss. One of the largest reinsurers in the world has informed the Panel that reinsurance will continue to be available, but at higher rates and on |