ARSON IS A MAJOR SOCIAL PROBLEM CAUSING MONETARY LOSSES APPROACHING $1 BILLION A YEAR AND LARGE NUMBERS OF DEATHS. CRIMINAL ARSON IS DIFFICULT TO PROVE IN THAT THE FIRST EVENT MUST FIRST BE PROVEN CRIMINAL; THE FIRE OFTEN DESTROYS THE EVIDENCE. ARSON IS EMPLOYED IN VAST MONEY-MAKING SCHEMES AND IS A MAJOR ELEMENT IN SOCIAL DISINTEGRATION IN AREAS SUCH AS THE BRONX AND BROOKLYN IN NEW YORK. FURTHER, ARSON FOLLOWS DEMOGRAPHIC AND BUSINESS COMMUNITY SHIFTS, MINORITY IMMIGRATION PATTERNS, AND FEDERAL POLICIES. CONTRIBUTING TO ARSON RATES ARE FEDERAL INSURANCE PROGRAMS COVERING BUILDINGS IN DECLINING NEIGHBORHOODS, AND THOSE INHABITED BY WELFARE RECIPIENTS, AND SOCIAL UNREST OCCURRING DURING THE 1960'S OR LATER (WHEN ARSON AS AN EXPRESSION OF MINORITY DISSENT WAS ENCOURAGED). OTHER ARSON ISSUES DISCUSSED INCLUDE THE LACK OF UNIFORM REPORTING SYSTEMS, DIFFICULTIES IN PROSECUTING ARSON, PYROMANIA, AND THE NEGATIVE ASPECTS OF PUBLICIZING CRIME. REFERENCES AND FOOTNOTES ARE INCLUDED. (PAP)