A Channel 2 cameraman, John Haygood, said that some protesters who yelled at him had used the word "nigger."

Mr. Dinkins said it was nonsense to call him "anti-cop," saying he had strengthened the force. But the Mayor suggested at the hearing that the behavior at the rally reflected why there were strains and misunderstandings between some police officers and residents of minority communities. Incidents between police officers and citizens, like complaints of racial slurs and excessive force, are what the board investigates. 'Lack of Confidence'

"That behavior has everything to do with the confidence, or lack of confidence, in the police department," Mr. Dinkins said.

But in more than three hours of testimony, Mr. Dinkins argued that most people did not trust the review board to find out the truth, and that this perception crippled the board's effectiveness, especially in the eyes of black and Hispanic people.

"If the perception exists that there not fair treatment, then believe me it will not work," he said. "I wish I could get more people to understand the depth of feeling of some of us that the present system is not working."

The current board has six civilian members from the department and six outside members appointed by the Mayor. More than half its investigators are police officers and all are Police Department employees. The Mayor's bill would create a separate agency with 13 board members appointed by the Mayor, an all-civilian staff and subpoena powers. 'Certain Radical Elements'

Shortly after Mr. Dinkins testified, Mr. Caruso told the committee the police did not believe civilians appointed for political reasons could fairly judge an officer's actions. He asserted that in the Mayor's planned all-civilian board, "political patronage is doled out to mollify certain radical elements of the community."