THE CONDUCT OF DRUG-TESTING IN PRISONS IS EXAMINED IN DETAIL. IT IS POINTED OUT THAT PRISONERS ARE CURRENTLY THE PRIME SUBJECTS FOR THE MOST DANGEROUS STAGE OF PHARMACEUTICAL TESTING TO DETERMINE THE TOXICITY OF NEW SUBSTANCES. PHARMACEUTICAL COMPANIES RECEIVE NOT ONLY A POOL OF SUBJECTS WHICH CAN BE MONITORED 24 HOURS A DAY, THEY ALSO RECEIVE FREE HOUSING AND FOOD FOR THEIR SUBJECTS AND PERSONNEL WAGE COSTS FAR BELOW OUTSIDE RATES. IT IS SUGGESTED THAT PRISONS SHOULD CHARGE A MINIMUM OF $7.00 PER SUBJECTS DAY FOR HOUSING AND $2.00 PER SUBJECT DAY FOR SERVICES, BUT FEW DO. RECENTLY OTHER PROFIT-ORIENTED COMPANIES HAVE DEVELOPED PROPOSALS WHICH WOULD USE PRISON LABOR. THESE PROPOSALS SUGGEST THAT THE VOCATIONAL TRAINING PROVIDED WILL OFFSET THE LOW PAY. FIVE PROBLEMS ARE DISCUSSED: JOB SECURITY AND COMPETITION WITH NONINMATES, SELECTION OF FIRMS AND JOBS TO BE ALLOWED IN THE PRISON, WAGE RATES, PAYMENT FOR PRISON SERVICES, AND THE ISSUES OF COMPETITION AND MONOPOLY. IT IS SUGGESTED THAT THE EXPERIENCE WITH PHARMACEUTICAL COMPANIES INDICATES THAT THE MAIN EFFECT OF PROFITMAKING INDUSTRY'S ACCESS WILL BE GREATER PROFIT FOR THE INDUSTRY AND GREATER COERCION WITHIN THE INSTITUTION. BOTH POSITIVE AND NEGATIVE COERCION IS USED TO ACQUIRE SUBJECTS FOR DRUG TESTING. THE SAME COERCION WILL PROBABLY TAKE PLACE WITH OTHER INDUSTRIES AND NEGATIVE INMATE ATTITUDES WILL BE REINFORCED. REFERENCES ARE APPENDED. (GLR)