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The current expenses of the past year are larger than we could desire, but the enhanced price of all kinds of prison clothing, and provisions of every kind, have tended largely to make an increased expense of the institution.

It will appear by an examination of the proper reports, that the entire indebtedness of the Prison for the present fiscal year will only exceed by $7,811 90 the value of the permanent buildings erected and built during the year.

Another question somewhat complicated presented itself for action, in reference to the disposition to be made of the convict labor for the future. No parties felt disposed to hire or lease the convicts during the winter, there being few of the convicts skilled in any of the mechanical branches. The shops being now ready for occupancy, it was important that the prison labor should be employed, and, with a view to make the same productive to the State, we invited proposals for letting the entire able-bodied convicts in said Prison, for the period of two years. We received several propositions for a part of said convict labor; and one proposal to take all the able-bodied convicts for the period of two years, from May 1, 1863, at the sum of forty-five cents per day, without motive power. This being the largest sum offered, the same was accepted by us, and the contract executed, to take effect the 15th instant. This, we think, is a larger sum than is paid for convict labor in any of the prisons in the adjoining States, we believe. with motive power included, and will yield an income to the State of about one thousand dollars per month, when all able-bodied men have employment constantly, showing at a glance the importance of completing the workshops this summer, for without suitable buildings none of the convicts could be employed during the winter months, and but a limited number during this summer. Thus, by October 1, 1863, as early a period as the shops could be constructed, if left until the coming spring, the amount realized to the State as the legitimate result of their construction the present summer, will not fall far short of ten thousand dollars, and will in-crease in the proportion to the accession of convicts during that period.

Not knowing but the State might desire to employ the convict labor in the further construction of prison buildings before the expiration of said lease, there was a provision made that the lease should be cancelled, and contract terminated upon thirty day's notice being given on the part of the State; the contractor being reimbursed for any motive power or machinery used in the working of said convicts.

For a more full and detailed statement of the entire expenses: during the fiscal year, we refer you to the several reports, herewith appended, of the several officers, which show fully and in detail, all the several items making the entire total of expenses for the current year, as well as the parties of whom purchases were made for materials and supplies.

This system of making out reports of all the items of expenditure in detail, requires a great amount of labor upon the part of the officer having the same in charge; but it is believed, that in public institutions of this character, in which the whole people of the State are interested, it is calculated to render more general satisfaction, than in the usual form.

The number of convicts has decreased materially since our last report, the number now being only 131; this arises from various causes, two of the principal reasons will appear by the large number of cases reversed by the Supreme Court, and those discharged by expiration of time of imprisonment. The amount paid out for convicts thus discharged during the fiscal year being $1,785 00.

To the Warden, Clerk, and all the officers of the Prison, we feel under many obligations for their uniform kindness and courtesy extended to us during the past year, and for the faithful discharge of all the duties connected with their respective positions.

We refer you also to the Reports of the Chaplain and Physician, herewith appended, showing the moral and sanitary condition of the convicts during the year.

The total amount required to meet the entire indebtedness of the Prison up to the 15th of December, is $47,054 07. This amount we ask the Legislature to provide for at the earliest day practicable. A large portion of the indebtedness is to men of limited. means, and some with large families who are pressed to some extent and embarrassed with the high prices of all the commodities entering into family consumption. Others, in better circumstances, have generously furnished supplies to clothe and feed the convicts, and at prices for which they could obtain cash in the market. Good faith and honest integrity to them require their payment. The amount due to the contractor for the construction of workshops, should be provided; for the buildings are of the best quality, and could not well be dispensed with without detriment to the State; and we believe that the facts will warrant us in saying that the completion of the workshops during this summer, is a saving to the State of at least fifteen thousand dollars, if the same had been deferred to be constructed next summer, taking the advance cost of all building materials and the income which will be derived from convict labor by October 1, 1863, resulting only from the construction of the buildings referred to, and the employment of all ablebodied convicts for that period.

The number of convicts in the Prison at the time of letting the contract was 202. Of this number, a part was employed by Messrs. Haywood & De Wolf in coopering, and a part by the contractor after commencement of work; some were employed on the prison farm, and the remaining number yielded but little or no income to the State, for the reason that we had no suitable shops in which to work them. This difficulty is now obviated, and we trust that our action in constructing the workshops in advance of the necessary appropriation by the Legislature for that purpose, is shown to have

been the best for the interests of the State under the circumstances in which we were placed. And to an intelligent Legislature, we submit the facts and ask them to appropriate the amount necessary to adjust at an early day the liabilities against the Prison.

We are not insensible to the fact, that in the midst of the civil war in which our country is engaged to maintain our flag and constitutional liberty, the loyal patriot is called upon to respond financially to the wants of the Government to maintain the large army in the field, who have left the domestic quietude of home and gone forth at their country's call to maintain the priceless heritage our fathers gave us. It becomes equally our duty to provide a place of security for the criminal who, in the absence of our fathers and sons, would apply the incendiary torch to our dwellings, or plunge the assassin's knife to the heart of his unsuspecting victim.

Having thus, at some length, presented the principal matters of interest in connection with the operation and management of said Prison for the last fiscal year, we respectfully submit the same, together with the reports of the several officers connected with the institution, which, we believe, are full, accurate and complete, and embody all the information that could be deemed necessary for the people of the State.

Respectfully yours,.

HUGH HANNA,
JONAS VOTAW,
W. WILLIAMS,

Commissioners.

SUPPLEMENTAL REPORT.

COMMISSIONERS OFFICE NORTHERN STATE PRISON,
Michigan City, Ind., December 15, 1862.

Messrs. HANNA, WILLIAMS AND VOTAW,

Board of Commissioners,

GENTLEMEN: Accompanying will be found certified copies of bill of prices allowed by the contract with David J. Silvers, and statement of account of said Silvers with the State of Indiana.

Respectfully your obedient servant,

C. F. KIMBALL, Clerkę

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