The Prisons Act 1894 is one of the oldest pieces of legislation in India dealing with laws enacted in relation to prisons in India. 

• Statement 1 is correct: Prison is a State subject under List-II of the Seventh Schedule in the Constitution. States have the primary role, responsibility, and power to change the current prison laws, rules, and regulations. Hence it is true that prisons are managed by the state governments with their own rules and regulations. 

• Statement 2 is correct: The management and administration of Prisons falls exclusively in the domain of the State Governments and is governed by the Prisons Act, of 1894 and the Prison Manuals of the respective State Governments. 

• Hence it is true that the Prisons Act of 1894 kept the subject of prisons in the Provincial government (State governments) and this explains why State governments have the power to frame their own rules and regulations regarding prison management.