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The layout of the room is simple. It is the dark, dank basement of the Weatherhead household lit by a single lightbulb hanging in the middle of the room. There are pipes and a water heater, which is what one would normally find in a basement.
However, the windows are covered, poorly, with newspaper. The walls are leaky red cinder blocks and the ceiling is a simple white wooden frame. There is a tarpulain held down with cinder blocks underneath the place where children are chained, presumably to keep the Dr Pep-er from staining the floor.
Method of Punishment
Children to be "punished" are hung by their hands in the middle of the room from the ceiling. They hang over a large tarp, held down by cinder blocks, as to not make a mess. They are then sprayed with Dr. Pep-er using a power washer which is connected to a barrel of Dr. Pep-er, while the other children must watch. This method of disciplining children is actually torture, a form of waterboarding, and is generally illegal to do in the United States, especially on children.
In the corner opposite of the water heater is a workbench with straps which may have also been used as a form of torture/punishment, and a rack of sticks, possibly used to beat the children.