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The physical-drill class is conducted in the evenings under the direction of a member of the staff and is certainly beneficial to those prisoners employed in workshops and others who physically require development. Monthly concerts have been given under arrangements with interested social workers, and thanks are specially due to Mrs. Webster of the Returned Soldiers' Association, Mr. R. Talbot of IZB concert party, and the Rev. G. Moreton, who has been most helpful in this direction. Xmas cheer for all inmates was again freely contributed by several organizations and was much appreciated by the recipients. The spiritual welfare of the prisoners has again been well cared for by regular Sunday services of the various denominations and also by individual visits. The food-supplies have been of excellent quality, including meat supplied from Waikeria Borstal Farm and the bread baked in the institution bakery. The Discharged Prisoners' Aid Society has continued to give every assistance to discharged prisoners in assisting them to rehabilitation in providing clothing, board, and fares to employment ; also the services of the Port Chaplain (Rev. Vickery) have been appreciated in his obtaining berths on overseas vessels for suitable cases. The conduct of the staff generally has been satisfactory. The officers responsible for the industrial activities of the prison have maintained an excellent standard of industry in their respective departments. The clerical and stores staff have continued to deal with that phase of the institutional matters in a very efficient manner. GISBORNE PRISON. (Gaoler, Mr. D. Davies.) At the beginning of the year there were 2 males in custody. Received during the year, 76 males, 2 females, total 78, which is a decrease of 8 males and an increase of 1 female on that of the preceding year. Discharged, transferred, or otherwise dealt, with, 76 males, 2 females, thereby leaving in custody on the night of 31st December, 1938, 2 males. With the exception of 1 male prisoner being sent to the district hospital for treatment for an old injury to a leg, the health and conduct of the prisoners generally have been good. Employment consisted of gardening, cleaning, laundry-work, clothing repairs, and painting. Messrs. L. C. Morris and D. J. Heffernan visited the prison and conducted Divine services during the year. Hautu Prison. (Officer in Charge, Mr. T. Banks.) At the commencement of the year there were 28 males in custody, 32 were received during the year, 24 discharged, and 5 transferred to other institutions, leaving a total of 31 in custody on 31st December. The conduct of the men has been satisfactory and there were very few breaches of discipline. There were no escapes during the period under review. A good standard of health was maintained, there being only one admission to public hospital. The Medical Officer visited the prison frequently and attention was given to those requiring it. Dental attention was also made available to the men. Divine services were held by the visiting chaplains from Taupo and Waihi. A new eight-valve Ultimate radio set was purchased to replace the five-valve set, and the result has been most satisfactory. Programmes are given nightly and during week-ends. We are indebted to the Rev. J. G. Laughton, Presbyterian Superintendent of Maori Missions, and Rev. J. A. L. Carter, Presbyterian Minister, Taupo, for gifts to the men at Christmas ; also to the Howard League for Penal Reform, Christchurch Branch, for cake supplied. Our thanks are also due to the Auckland Mayoress's War Memorial League ; the Church of Christ (Scientist), Auckland and Wellington ; and Mr. Witty, Palmerston North, for reading-matter supplied. The rations were of good quality. Vegetables were supplied from the prison garden, and beef and mutton from the farm. The bread was baked in the institution and was of excellent quality. Butter was also made for issue to the prisoners. The prison buildings were kept in good repair, and the following buildings were erected : A hutment for the accommodation of one officer, a milking-shed, separator-room, tractor-shed, and Officer in Charge's office. The preliminary work of a scheme to have the prison and officers' cottages fitted with electric light has been commenced, and should be completed early in 1939. The : installation of a paddock water-supply comprising windmills, storage-tanks, and troughs was commenced and is almost completed. The supply should prove an asset, enabling the paddocks to be well watered and improving the grass. General farm-work was carried on during the year, the existing fences kept in good repair, and a rabbit-proof fence erected. The season's wool clip weighed 6 ton 18 cwt. 17 lb. Facial eczema affected the flock, causing a good many deaths. Two hundred and forty-eight sheep were sold and 122 killed for rations. The cattle were also subject to disease during the year, and the Department of Agriculture was consulted on the matter. A lick was prescribed and the situation greatly relieved. Thirty-three cattle were killed for rations and 51 head sold during the year.

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