Although one of an offender's most important experiences during incarceration is the decision made at the first parole hearing, experts agree that the parole administration process is an arbitrary system that permits wide discretion in parole decisions. This research is based on a sample of 547 male first offenders randomly selected from the total population of all male first offenders who had been paroled or discharged for the first time from one midwestern State prison system between 1969 and 1972. To ensure variation in organizational characteristics, three institutions were selected to include three levels of security. There were four possible outcomes from the parole process: special parole because of meritorious circumstances, regular parole, deferred parole, or parole denied. Analysis revealed that the percentage denied parole increased in direct correlation with the increase in custody level of the institution. In addition, the net effect of being black decreased an inmate's chances for parole; 12 percent more whites than blacks in the sample were paroled from prison. Whether or not the disparities observed in this study were the result of discretion and racial bias, there is a need to monitor the activities of all parole boards to ensure the integrity of the process. Five tables are included.