A NUMBER OF ENTERTAINMENT SPOTS LOCATED IN THE LOCUST STREET 'STRIP' SECTION OF DOWNTOWN PHILADELPHIA HAVE COMPILED NOTORIOUS RECORDS OF LIQUOR AND PENAL CODE VIOLATIONS. AWARE THAT THESE UNSAVORY CONDITIONS HAD REACHED AN ALL-TIME HIGH IN 1971, THE PENNSYLVANIA CRIME COMMISSION LAUNCHED A FULL-SCALE INVESTIGATION INTO THE OPERATIONS OF ELEVEN LICENSED ESTABLISHMENTS BELIEVED TO CONSTITUTE THE PRINCIPAL CENTERS OF VICE IN DOWNTOWN PHILADELPHIA. THE ELEVEN LICENSEES, WHICH ARE IDENTIFIED AND DISCUSSED IN THE TEXT OF THE REPORT, HAVE MADE A SYSTEMATIC PRACTICE OF HIRING FEMALE ENTERTAINERS AND BAR GIRLS TO SOLICIT CUSTOMERS FOR DRINKS AND ACTS OF PROSTITUTION. IN ADDITION TO THESE VIOLATIONS OF THE LIQUOR CODE AND VICE LAWS, THE MAJORITY OF THE ELEVEN LICENSEES HAVE CONSISTENTLY IGNORED NUMEROUS STATE REQUIREMENTS CONCERNING SANITATION, LICENSING, AND TAX REPORTING. THE EXTENT OF LIQUOR AND PENAL CODE VIOLATIONS IS FIRST REPORTED. SPECIFIC DEFICIENCIES IN THE ENFORCEMENT OF LIQUOR AND PENAL CODES IN THE PROCESSING OF VIOLATION CITATIONS ARE ALSO DETAILED. THE REPORT CONCLUDES WITH RECOMMENDATIONS FOR UPGRADED LIQUOR CODE ENFORCEMENT, REVISED PROCEDURES GOVERNING LICENSE APPLICATIONS AND RENEWALS, IMPROVEMENT OF THE ENFORCEMENT ACTIVITIES OF POLICE AND THE DISTRICT ATTORNEY, REVISION OF POLICE AND THE DISTRICT ATTORNEY, REVISION OF PROCEDURES CONCERNING LICENSE TRANSFERS, AND CHANGES IN THE ASSIGNMENT OF PENALTIES FOR CITATION VIOLATIONS. (AUTHOR ABSTRACT MODIFIED)