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concert. In my opinion it has an elevating effect 011 the inmates. A New Year concert was afterwards given by the inmates, when several Justices were in attendance. The men thoroughly appreciated the generosity thus shown them. Divine service has been conducted by several denominations throughout the year, viz., Presbyterian Ministers' Association, Church of England, Roman Catholic Church, Salvation Army, St. Vincent de Paul Society, and Mr. Mills. We are indebted to the Justices' Association and the Prisoners' Aid Society, and many others, for their generosity and assistance in aiding prisoners on discharge, also their families. They assist many deserving cases, and also procure work and clothing for the men on discharge. Terrace Prison.—The whole demolition of the above has been carried out; there only now remains the iron structure which is used as a dormitory for those employed on the excavation of the site. The temporary garage is also still intact, until such times as we can remove to Mount Crawford. A large quantity of second-hand bricks, timber, and iron have been trucked from the Terrace to Mount Crawford ; this material is being used in the construction of cottages and officers' quarters, &c. The whole of the timber that was bought and railed from Featherston was also trucked from the Terrace to Mount Crawford for use in the buildings. A large quantity of broken concrete has been sold ; also several loads were carted to Mount Crawford to form paths to the cottages. All the fences have been taken down. There is still approximately about. 11,000 yards of clay to be removed, which is being taken out at the rate of 60 yards a day. A start will be made early in the New Year to remove the two-story cottage that was handed over to the Prisons Department by the Education Board. Several hundred slates from the Terrace demolition were dressed and used on the new cottage at Mount Crawford ; this greatly improves the look of the cottage, and will be more lasting than shingles. Mount Crawford,. —The workshops are well in hand ; all that remains to complete this work is the glazing of the skylights, doors to be hung, and small portion of flashing to complete. A coat of Laykold emulsified asphalt is being put on the floors to make them damp - proof. The sanitary drainage is all complete in the prison and officers' quarters. The septic tank is now in use, but requires some slight alteration, as it is not working quite satisfactorily. The sanitary drainage has also been completed to two of the cottages, and a small septic tank has been built and is now in use. Good progress has been made with the Massey Road, considering the heavy cutting and hard rock, which had to be blasted. On account of the steepness on the west side of the road the stone rolled down the side of the hill and endangered passing vehicles, so that it was found necessary to dig trenches and build up with sand-bag and sod walls for safety purposes. This has taken a considerable amount of labour. The road is formed as follows : North end, peg 0 to 27 ; south end, peg 74.1.28 15.3: 61 chains formed; 30 chains metalled with 8 in. rotten rock; six 9 in. culverts laid the width of the road ; 37 chains of bag wall built, and 40 chains of bank battered ; 4 chains of trenches dug on various parts of the road ; and shelter-shed erected. If sufficient labour is available and weather suitable, we should be able to complete this work in the time stated in the contract. The quarry-work is delayed somewhat on account of the large quantity of stripping to be carried out before we can procure the suitable stone. At the present time we have removed 2,500 yards of stripping, and quarried 1,200 yards of metal and spawls for the crusher. The addition to the officers' quarters is now well in hand, and is as follows : four bedrooms, one officers' mess-room, one bathroom, P.W.C., kitchen and pantry, and the whole building wired for the electric light. Water has been laid on, and the drainage completed. Two out of the seven five-roomed cottages to be erected on the Massey Road have been completed, fences erected (picket fence in front and iron on the sides), banks battered, and steps built of concrete. A third new cottage is three-parts finished, and the foundations of the fourth have been completed. 325 yards of sand have been carted from Houghton Bay, and 648 yards of gravel from Branda quarries, to be used in the construction of cottages and other buildings. The Shelly Bay Road leading to the Borstal Institution has been kept in repair throughout the year. The water-pipes were laid from the reservoir to the cottages, officers' quarters, and from the prison to the tank at Shelly Bay. A meter has been placed on this line, and I understand a charge is being made. The main has been carried down to Fort Ballance, and a meter has also been installed theTe. A new dynamo was fixed at the electric pump, as the old one was not giving satisfaction. An up-to-date system of telephones has been installed at Mount Crawford Prison, the Superintendent's house, and the Chief Warder's house. Electric bells have been fixed in the prison, and temporary bells in two of the cottages. The electric-light poles have been erected and the line laid from the main to the cottages, shops in the prison, and to the officers' quarters. I would like to point out that all the labour of installing the electric light, and also the local telephone system, was carried out by prisoners, and that the Public Works officer has commented on the good quality of the work. During the year 2| tons of floor-polish has been made and packed, 5| tons of lead-head nails have been manufactured, and 58 gross cakes of sandsoap have been manufactured and packed, and a good supply is being made for stock. Large quantities of second-hand books are received from time to time from the Wellington Library. These are trimmed and rebound.

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