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The spiritual welfare of the inmates has been attended to by the Rev. A. L. Canter, Major Barnes; Rev. Father O'Hara, and Mr. Paynter of the Plymouth Brethren. Fortnightly concerts have been given by Mrs. W. J. Hunter, Mrs. Holmes, and the Rev. Patterson. Moving pictures have also been screened by arrangement with the Grand Theatre, and arc much appreciated by the inmates. That those privileges have a good effect is evidenced by the continued good behaviour and industry of the men, reports for breaches of the regulations being very infrequent. The honour system, which is largely practised at this prison, has also proved a success, and very few men have abused the privileges granted. No escape of " honour "or other men has occurred. An additional cottage, No. 13, has been completed and occupied by one of the staff. A small amount of finishing-work has been done in the west cell range during the year. The artistic pieces of plastering-work at either end have been completed. The east cell range has been completely roofed with tiles. The inside roofing is of beaverboard, The bottom-landing cells have been almost completed, and have been in use for about half the year. The top-landing cells are now being completed and will soon be ready for use. Imposing gateways have been built at the main entrance on Bealey Road. Huge concrete posts and approach walls have been erected, and the work is almost complete. Exercise-yards are being built between the east and west cell ranges. Work is at present proceeding. The foundations for the administrative block have been completed. This building is being erected in front of the two new wings, and is on the plan of tho office block at Waikeria Reformatory. During the year the various roads about the farm have received attention in the way of general maintenance and are now in fair order. A new dairy has been built on up-to-date lines and is complete except for tho water-supply. The year marked a decided change in policy as regards the main farming factor —from sheepraising to dairying. The dairy herd, totalling 157 head, comprises 79 milking-cows, 32 heifers, 37 calves, and 2 bulls. Dairying is now an established fact here, and will, I trust, grow larger yearly. With the increased area in lucerne the farm will eventually carry two hundred head of cattle. The revenue derived from this source during the year was £704 35., which speaks well for the future success of this industry. It also provides congenial work for a number of the prisoners. Owing to the change in farming policy, the sheep flock was reduced so that the flock ewes would number about five hundred. The revenue derived from this industry was £962 ss. lid. The lambing season was a fair one, and the lambing percentage, 87 per cent., was very good. The stud flock is growing slowly in number, and there are now 31 ewes and 21 lambs. As anticipated, there was an increase of revenue from the pig industry owing to the skim-milk from the dairy. The revenue derived amounted to £370 19s. Id., and there are still 125 head on hand at the commencement of this season. The rise in the market price of wool considerably increased the revenue produced during the year. The average weight of wool per fleece was 9-7 lb., and this sold at a good rate, the tops bringing 24d. per pound. The total derived from wool this year was £456 7s. Id. The revenue produced from gardening amounted to £76 2s. sd. In addition, the garden supplied the prison with vegetables for the whole year, and with potatoes up to Christmas from the commencement of the potato season. The poultry industry, although showing better returns than the previous season, is still unsatisfactory. Acting on your instructions, 1 have had the houses removed to the back of the garden and placed under the direct supervision of the officer in charge of the garden. The results this year should be a little bettor. The crops consisted this year of wheat, oats, peas, tares, mangolds, and potatoes. The season for crops was the worst experienced in Canterbury for twenty years. Hot winds prevailed for months, and continued drought. In spite of this, however, the returns from crops were fairly good, and the, total revenue from this source was £930 Bs. 3d. After reserving the necessary quantity for our own use we sold 762 bushels of wheat, 803 bushels oats, 320 bushels peas, and 40 bushels tares at good prices. Throughout the year an average of eleven men per day have been employed in the manufacture of concrete blocks and flagstones. Work has consisted chiefly in the manufacture of blocks for the new buildings, and we have also been making flagstones for Aldington Saleyards. The amount derived from this industry was £551 9s. lOd. Institutional School. The schoolmaster reports as follows : — I have the honour to report on the work of the school classes at the prison for the past year. The programme of work included English, composition, spelling, arithmetic, geography, and now and then a debate on some topic. A most pleasing feature is that the keenness for the work shown at the beginning has been well maintained. The majority of the men have not had any schooling beyond the Fourth Standard. A few could hardly read or writes. All have displayed a keen interest in the lessons, and the improvement effected has been most marked. lam certain that the introduction of these lessons has brightened the lives of the men, for they work with a will. The attention they give to the lessons is most encouraging to me, and the discipline is splendid. The debates held during the year were a great success. The subjects chosen were always of a nonpolitical character — e.g., British v. American workmanship ; should immigration be encouraged : motor and steam transport. They were given a fortnight to prepare their arguments, and a discussion to mould their ideas would be held previous to the debate. In many cases the subject chosen was