The study team represented the spectrum of Oregon's juvenile corrections system. The team applied an initial security placement instrument to the case records of 302 males held in Oregon training schools. Scores from the instrument were modified by a review of aggravating and mitigating factors. Current and prior offenses and the circumstances surrounding them were the main criteria for judging cases. Degree of risk or danger to the community was the most important criterion. The study confirmed the widespread belief that the Oregon juvenile justice system has been institutionalizing an excessive number of juveniles. More effective and additional use of resources in community programs could greatly reduce institutional placements; for example, runaways, juveniles with mental health problems, drug abusers, and juveniles in need of treatment for parental abuse have been institutionalized due to a lack of community treatment programs. The juvenile justice system should develop an objective, validated classification procedure that will place youths into varying levels of secure placement. The assessment of youths' needs should be standardized so as to provide data for statewide program development. 11 tables.