This study of the adequacy of library facilities in Indiana's penal institutions was undertaken at the request of a state senate committee studying the Indiana Department of Correction. The penal libraries are judged to be inadequate and their major problems with personnel, materials, services, and physical facilities are listed. Also given are nine recommendations for improving library services in the penal institutions and a profile of each of the six fully operational institutions. Appendices include: "Library Evaluation, Eliza Hendricks School," by Georgia Goodwin; "Correctional Institution Library Survey, Outline Plan," prepared by a special Association of Hospital and Institution Libraries Committee and used by the Maryland Library Association Survey Committee 1964-1965;"Objectives and Standards for Libraries in Correctional Institutions," endorsed by the American Library Association and the American Correctional Association; a statistical summary of the survey; and the questionnaire used in the survey. (CC)