You use the picaxe to get out of the jail cell. Then you go out the elevator or go find the prison member under cell D 8. and remember to get the sardines and pickaxe under in the dirt along the way to go find the prisoner.
They are on Ellis island
the wardens office is on level H
section h
go to the lighthouse.
Look for it when you use the lighthouse to look for it then use the boat to go to the prison
in the prison office
go to prison h
on level D
Use the pickax to break out.
Use the sardines you found in the tunnel at the prison.
Use the sardines from the tunnel at the prison.
You find them in the hidden tunnel at the prison after the Warden's ghost locks you in Cell 8 on Level D.