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Prisoners have performed a large amount of work during the year, and I have every reason to be satisfied with the results achieved. At Fort Cautley a large amount of excavating has been done and a large magazine for the storage of explosives and reserve stores built, only the finishing touches to the earthwork covering it, and the approaches thereto, requiring to be done. At the prison the usual quarrying operations have been continued, the stone-crusher has been in full work, and, in addition to a large quantity of stone dressed and used as building operations progressed, a fairly large quantity is in stock, ready for future requirements. The prison chapel has been roofed, and the interior, save a few small items, plastering, &c, finished. The dedication of the chapel took place on the Bth December, the Right Rev. Dr. Neligan, Bishop of the Diocese of Auckland, officiating. The archway and steps, approach to the main entrance of the prison, were completed, also a quantity of miscellaneous work in connection with fittings, &c, in the administrative and other portions of the building. The stone stable and wall enclosing the yard were completed, the stable occupied, and the old building demolished. The stone wall on the Normanby Road boundary of the Prison Reserve has been pulled down, the road widened, and a new wall erected on the road-level. Prisoners employed in the tailors', shoemakers', blacksmiths', and carpenters' shops have done good work and been fully employed. Female prisoners have done the washing and laundry work for the prison, besides the usual work in keeping the division clean, knitting stockings, and needlework. The following changes in the subordinate staff have taken place: One officer was dismissed, 4 were transferred to other prisons, 1 resigned his appointment, and 1 was discharged. Two were transferred to this from other prisons, and 3 appointed probationers: of these, 2 passed a satisfactory examination, the third one resigned as noted above. One officer was fined for being absent from quarters without leave (his second offence). Generally speaking, the officers have carried out their duties satisfactorily. Of course there is always room for improvement, however little; nevertheless, I desire to express my appreciation of the support rendered me by all ranks of the present staff since the date of my assuming charge. - The First Offenders' Probation Act. There were 13 males and 4 females on probation at the beginning of the year. At the local Courts 13 males and 2 females were given the benefit of the Act, and 4 males were transferred to this from other districts, making a total of 30 males and 6 females dealt with during the twelve months. Of these numbers, 13 males and 2 females completed their respective terms satisfactorily; 2 males were sentenced to terms of imprisonment —one for failing to comply with the conditions of the license, and the second for the commission of a fresh offence; 3 males were transferred to other districts, and 1 female was sent to the Mental Hospital: this left 12 males and 3 females on the register of this probation district at the end of the year. T. R. Pointon, Inspector of Prisons, Wellington. Gaoler and Probation Officer.

DUMGREE PRISON. H.M. Prison, Dumgree, 14th January, 1908. I have the honour to report that the health of the prisoners for the past year has been good. We have got a splendid water-supply. The rations supplied have been very good. There have been no complaints nor any escapes. One prisoner was drowned accidentally in the Awatere River; inquest held in due form. A clergyman visits the camp once a week, and holds divine service. All vegetables required have been grown here, thus costing the Department nothing except the price of seed. The zeal and efficiency of the officers are beyond praise; only for that I could not have had such satisfactory results. The work done during the year was:—Pitting: New area, 43,100; blanks, 37,046; spots, 69,356: total, 149,502. Marking, 42,200. Planting: New area, 107,140; blanks, 38,983 : total, 146,123. Fire-breaks, 141 chains. Draining, 10 chains. Work was also carried out as follows: Cleaning trees, grubbing out gorse and briars, repairs to roads, repairs to tools, opening trenches, and heeling-in trees. The above can be verified by the Forestry Department. The Inspector of Prisons, Wellington. E. Murphy, Gaoler. ___ n DUNEDIN PRISON. • H.M. Prison, Dunedin, 6th January, 1908. I have the honour to report that during the year 1907 the conduct and industry of the prisoners has been good, with a few exceptions. They were employed at Taiaroa Heads at stone-breaking, quarrying, road-repairing, and other miscellaneous work. The daily average this year has been higher than for a number of years. Six prisoners were punished for seven minor offences —an increase of three prisoners and three offences on last year. There were no escapes nor attempted escapes during the twelve months under review. The health of the prisoners generally has been excellent, notwithstanding that an unusual number of prisoners have been received suffering from chronic ailments, such as epilepsy, inveterate skin-diseases, and poisoned wounds, and that a wave of influenza swept through the working-party at Taiaroa Heads and attacked some in the main prison. Then there has been the usual number of intemperates and acute alcoholics. The above causes have increased the drug account this year. Cases of delirium tremens and supposed lunacy are still being sent in on remand for medical treatment, and are a cause of grave anxiety and distraction of the officials. The suicide of W.M. by