The biennial report of 1894-'95 and 1895-'96 returns to the subject, states that the jute mills can not be a success under the restrictions of the present law, and urges that they should be run on a business basis, for a profit. It continues, "One source of profit would be to make use of the granite owned by the State" (at Folsom). It suggests a consolidation of the two prisons at Folsom, where, with prison labor and free power, and granite on the ground, a model prison could be constructed. Warden Aull, of Folsom Prison, in discussing the subject in 1896, said that for nine years the improvements there have employed the convicts, but now some new scheme must be devised. "The convicts must be kept at work. Every consideration of discipline, economy, reformation, and health demands this." But he believes that it will not pay the State to make shoes, blankets, clothing, brooms, tinware, etc. (as has been suggested at various times) for the eight thousand inmates of our State institutions. There are over two thousand convicts at Folsom and San Quentin. Only a small part of these, he says, could be utilized in making goods for State institutions, nor would there be any profit unless manufacturing was on a large scale for the outside markets as well. The experiment that New York is making will be watched with much interest here. The California labor unions recently adopted resolutions favoring "the quarrying of stone by convict labor, and the placing it upon market undressed at a low figure, in order to give employment to stone-cutters, stone-masons, and others employed on buildings." The State rock-crushing plant, if kept running, will utilize the labor of about two hundred and fifty convicts. Any advance beyond this point means open war with all the labor unions. Evidently the time when the prisons of California are to be entirely self-supporting is still remote, and the public as well as the union need much more education upon the subject. Some reduction of expenses, together with any utilization of convict labor that indirectly benefits a few classes, is all that can be hoped for at present, but ultimately the reformation of the criminal by making him capable of self-support as well as anxious to live in peace with society, will be recognized as the aim of wise penal legislation.