(e)Where an inmate is believed to be exercising a bad influence, he will be placed by the Superintendent in the Penal Grade for such period as the Superintendent considers necessary in the interest of the inmate himself or of the other inmates. While in this grade, an inmate shall be employed in separation on hard and laborious work and shall forfeit all privileges. The Superintendent should record in his journal particulars of the case of every inmate ordered by him to be placed in the Penal Grade with the reasons for such order and stating the period during which inmate is to remain so placed, but in no case shall an inmate be placed in the Penal Grade for a period longer than three months without the special sanction of the Director.