Sentence:  Try to imagine, then, an institution (which we may call “<WSD>telishment</WSD>”) which is such that the officials set up by it have authority to arrange a trial for the condemnation of an innocent man whenever they are of the opinion that doing so would be in the best interests of society. 
Meaning of the word marked with <WSD> tags:  The practice or institution of punishing the (innocent) for the sake of providing (deterrence).