A 0, 1 matrix is balanced if it does not contain a square submatrix of odd
order with two ones per row and per column. We show that a balanced 0, 1 ma
trix is either totally unimodular or its bipartite representation has a cut
set consisting of two adjacent nodes and some of their neighbors. This resu
lt yields a polytime recognition algorithm for balancedness. To prove the r
esult, we first prove a decomposition theorem for balanced 0, 1 matrices th
at are not strongly balanced. (C) 1999 Academic Press.