The Institute of Criminal Law and Procedure analyzes the merits, limitiations, and problems of various approaches to prison industry and recommends measures and programs to improve industries. Federal and State legislation affecting prison industries were examined, several prison industries were visited, and the literature of prison industries was reviewed. The study's findings are these: Prison industries exist in the context of correctional systems whose future dimensions are unknown and whose purposes are unclear. Therefore, before effective prison industry planning can take place, agreement must be reached as to underlying correctional philosophy and as to the expected numbers and distribution of offenders in the correctional system. Prison industries today do not achieve their traditional goals and should be modified (possibly eliminated). Intelligent modification will be possible only with better information on the true costs of prison industries as determined through standardized accounting procedures. Prison industries should provide a real work experience, including full work days, job compensation, minimum wage, and merit increases in pay. New and closer relationships with private industry can benefit prison industry. Finally, laws restricting prison production and marketing should be repealed. (Author)