THE REPORT OPENS WITH AN OVERVIEW OF THE COUNCIL'S HISTORY, STRUCTURE, AND CONTEXT OF OPERATION. STATISTICS INDICATIVE OF CRIME AND DELINQUENCY TRENDS IN PHILADELPHIA THROUGH 1972 ARE PRESENTED. THE COUNCIL'S CONTRIBUTIONS TO PROGRESS IN THE CRIMINAL JUSTICE SYSTEM ARE REVIEWED IN THE AREAS OF POLICE, COURTS, JUVENILE JUSTICE, CRIME AND DELINQUENCY PREVENTION, ADULT CORRECTIONS, AND DRUG ABUSE TREATMENT AND CONTROL. HEADING A LIST OF THE COUNCIL'S MAJOR ACCOMPLISHMENTS ARE INNOVATIONS IN ADULT PROBATION SERVICES, DIVERSION OF YOUTHFUL OFFENDERS INTO REHABILITATIVE PROGRAMS, AND DEVELOPMENT OF A CITYWIDE YOUTH SERVICES COMMISSION. PRIORITIES AND NEEDS IN EACH OF THE AREAS NOTED ARE IDENTIFIED, AND THE COUNCIL'S PLANS FOR ADDRESSING THESE NEEDS IN 1974 ARE OUTLINED. THE 1974 PROGRAM BUDGET IS PRESENTED. CHARTS AND TABLES ARE INCLUDED. (LKM)