This report is the second in a series of five describing a 16-month study of the nature and extent of the private police industry in the United States, its problems, its present regulation, and how the law impinges on it. In this report, the nature, size, growth, and operation of the industry and its personnel are described, including the results of a survey of private security employees. Documents in the series are announced in this issue as VT 016 622-VT 016 626. (AG)