Annual report of the Governor of the Virgin Islands

fir,;

THE GOVERNOR OF THE

VIRGIN ISLANDS

TO THE SECRETARY

OF THE INTERIOR

FOR THE FISCAL YEAR

ENDED JUNE 30

Annual Report

1964

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C., 20402 Price 40 cents

Contents
Page
General Information___ --------------------------------- 1
Highlights of the Year -------------------------------- 10
Legislation --------------------- --------------------- 17
Matters Involving Federal Action------------------------ 19
Power and Water Utilities------------------------------ 23
Virgin Islands Corporation__----- --------------------- 24
Virgin Islands Government News Bureau------------------ 25
Control of Processing of Woolen Yard Goods --------------- 27
Office of the Government Secretary ------ --------------- 33
Departmental Reports:
Department of Education__------------------------- 40
College of the Virgin Islands ------------------------- 50
Department of Health _---------------------------- 54
Department of Social Welfare ----------------------- 63
Department of Commerce_-------------------------- 70
Department of Agriculture and Labor------------------ 75
Virgin Islands Employment Security Agency ----------_ 79
Department of Public Works__------- ----------- 83
Department of Finance ---------------------------- 88
Office of the Director of the Budget ----------------- 95
Department of Housing and Community Renewal------- 101
Department of Property and Procurement-------------- 107
Department of Law _----------------------------- 109
Department of Public Safety_ ----------------------- 110
The Municipal Courts__ ------------------------- 116
Office of Probation and Parole----------------------- 120
Virgin Islands Planning Board ---------------------- 121
Division of Personnel----------------------------- 122
Traffic Advisory and Safety Committee--------------- 124
Public Utilities Commission ---------------------- 125
Selective Service____-------- ------------------------- 127
Conclusion _.---------------------------------------- 129
III

1964 Annual Report

of the

Governor of the Virgin Islands

RALPH M. PAIEWONSKY, Governor

General Information
History
When Christopher Columbus first came ashore on his second voyage
to the New World in 1493, he stood before the gently rolling hills on
the north side of St. Croix. This spot today is known as Salt River
Bay, one of the picturesque inlets that add zest to cruising in the
waters around the Virgin Islands of the United States.
Columbus sailed to this Caribbean paradise on the trade winds from
southwestern Europe and Madeira. After the long voyage, he sought
to replenish his dwindling supply of fresh water on St. Croix. Instead
of the warm welcome accorded visitors today, Columbus ran head-on
into the fierce Carib Indians. The Caribs drove the great navigator
and his companions off to more friendly shores, and their bitter hostil-
ity to outsiders defeated colonization until about 1555. The Indians
then were driven off the islands by the forces of King Charles V of
Spain.
The Virgin Islands owe their name to Columbus. He was so im-
pressed by these numerous, verdant islands and cays that he christened
them, "Las Virgenes" in remembrance of St. Ursula and the legend
of her massacred 11,000 virgins. In its early years, St. Croix was
known by its Spanish name, Santa Cruz.
Once colonization began, the Virgins and other islands in the West
Indies chain became prizes of great value to the crowned heads of
Europe. Sugar was the chief attraction. During the 17th century,
England, France, Holland, and Spain played musical chairs in vying
for control. During the negotiations with France, which ended the
Seven Years War in 1763, Great Britain seriously considered whether
to keep the island of Guadeloupe instead of Canada.
Denmark, to which the U.S. Virgin Islands trace most of their
heritage, entered the picture in 1671. It chartered the West India

2 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
Company and began colonizing St. Thomas and St. John. St. Croiz
was purchased from France in 1733. Except for a brief period of
British occupation during the Napoleonic Wars, the Danes ruled these
islands until 1917.
Blessed by the Danish policy of neutrality and liberal trading laws,
the Virgin Islands enjoyed a Golden Age of commerce and peaceful
development. The fine harbor at Charlotte Amalie on St. Thomas
became the hub of Caribbean shipping routes, and a booming trade
with the New England States became the mainstay of the islands'
economy.
Sugar was king. Windmills for grinding cane dotted the plantation
lands of St. Croix, St. Thomas, and St. John. Many of the massive
masonry towers that supported the sails of these mills remain as silent
sentinels from this bygone era. Some have been used as the central
architectural structures of modern homes.
Wealth also attracted the greedy, and the area became the hunting
ground of many pirates, including the notorious Captain Kidd. Tra-
dition has it that the Virgin Islands were spared the depredations
of these pirates, but had to pay "protection" in the form of sanctuary
and commercial privileges.
Although sugar brought prosperity to the islands, the flourishing
plantations were developed through the exploitation of slaves intro-
duced in the 1680's from Africa. Twice, the slaves revolted at their
cruel lot. Once, after a bloody mutiny on St. John, the slaves held that
island for 6 months, until French forces came from Martinique to help
the Danish masters. The story goes that the last surviving mem-
bers of this "freedom fighter" band died by mass suicide, either by
plunging over a tall cliff or by shooting themselves on the rugged north
shore of the island.
An enlightened Denmark finally abolished slavery in 1848, fifteen
years before this step was taken officially in the United States.
With slave labor gone, sugar decreased in commercial importance
for the Virgin Islands. It became a marginal crop as compared with
cane operations under the more favorable conditions in Cuba and
elsewhere.
The United States cast an interested eye on the Danish Virgin
Islands during the American Civil War. A purchase agreement
was negotiated, but fell through when the Senate refused to ratify
it in 1870.
Sporadic bargaining for the islands continued through the years,
but it wasn't until World War I that the United States acted in
earnest. German seizure could give the U-boats a base in the Carib-
bean, so the United States bought the Danish Virgins for $25 million
in 1917. On March 31, of that year, the U.S. Navy took over admin-

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 5

istration of the islands and occupied the strategic harbor of Charlotte
Amalie.

Geography
The Virgin Islands of the United States lie some 1,434 nautical
miles southeast of New York City; 991 miles from Miami, Fla.; and
40 miles east of Puerto Rico, 75 air-miles from San Juan.
The islands are a part of the Antilles which form the dividing line
between the Caribbean Sea and the Atlantic Ocean. They are located
directly in the path of the trade winds, so commercially important in
the days of sail, at the eastern end of the Greater Antilles and the
northern end of the Lesser Antilles.
The U.S. Virgins consists of some 50 islands and cays of volcanic
origin. Their neighbors, the British Virgins, are made up of 30
similar islands and cays.
Each of the three main islands in the U.S. group has evolved accord-
ing to its geographical attributes. St. Croix, with 84 square miles,
is by far the largest. Much of its land is flat and suitable for agricul-
ture. St. Thomas measures 28 square miles, and St. John 20. Both
are ruggedly mountainous and rise, as neighboring peaks, from the
same submarine plateau. In the 40 miles of open sea that separate St.
Thomas and St. John from St. Croix, the Caribbean deepens to a
15,000-foot trench.
Agriculturally, St. Croix is the most important of the three U.S.
Virgins. Sugarcane still is an important crop. However, the neces-
sity for government subsidy and underwriting of milling losses have
resulted in a decision to phase out sugar operations in favor of land
use that is more feasible. Much of the sugarcane land and the sole
remaining operative mill, formerly owned by a Federal corporation,
were sold to the highest bidder in 1964, with the stipulation that
milling be continued for the benefit of other private canegrowers for
at least 2 years. Other agricultural crops more profitable than cane
are being encouraged. Truck farms now are supplying a greater share
of food crops locally and to the winter market on the mainland, and
dairy farms produce most of the fresh milk consumed on the islands.
St. Croix offers two good harbors. At Christiansted, dredging and
the commissioning of a new public dock have made the picturesque
harbor attractive to both yachts and commercial craft of medium
draft. A recently constructed deep water pier at Frederiksted ac-
commodates ocean liners and is of growing importance for the docking
of cruise ships. These facilities, plus an airport capable of handling
the largest jet aircraft, have seen St. Croix begin to come into its
own in the tourist industry, which is the economic mainstay of the
islands.

4 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

St. Thomas compensates for its limited agricultural resources with
its fine natural harbor, which recently has been deepened and widened.
Charlotte Amalie, once an important commercial shipping center,
now is one of the world's ranking ports of call for cruise ships. It
also is the key to a steadily increasing import-export trade, serving
the free port tourist shopping and local manufacturing industries.
The unspoiled beauty of St. John is its natural attraction. Here,
the magnificent Virgin Islands National Park covers more than half
the island, with its unmatched beaches, steep mountains, and lush
semitropical vegetation. St. John's unmarred charm may be sampled
in special Jeep and boat tours.
Each of the U.S. Virgins boasts the same comfortable climates, with
temperatures ranging from 700 to 90 the year around. The mean is
780, with balmy trade winds supplying natural air conditioning. Con-
sistently low humidity results in days that are rarely ever muggy.
Rainfall averages about 45 inches a year.
Coconut and royal palms abound, and the undeveloped shores are
lined with mangrove, mahoe, and sea grape trees. Exotic fruit trees
include the mango, lime, avocado, papaya, soursop, guava, sugar apple,
genep, and mammee. Among the tropical flora are hibiscus, bougain-
villea, flamboyant, olelander, poinsettia, wild orchids, African tulip,
frangipani, lignumvitae, plus many other beautifully flowering trees
and shrubs that give the islands color and fragrance.
Stone, sand, and gravel provide local building materials, but the
islands have no minerals of commercial significance.
Virgin Islands waters abound in fish, which is important in the
native diet, but there is no large commercial fishing industry. How-
ever, game fishing is coming into its own as a sports attraction. Blue
marlin, wahoo, tuna, tarpon, kingfish, and bonefish are taken all year
round. Sailfish and white marlin are taken during most months.
The Virgin Islands now hold the world record for the largest blue
marlin, officially recorded at 814 pounds and caught during the sum-
mer of 1964.

Government
The Virgin Islands have had many rulers. The flags of Spain,
France, Holland, England, Denmark, and the United States have
flown over all three islands, and St. Croix once came under the
administration of the Knights of Malta.
Modern government, however, traces its heritage mainly to 250
years of Danish colonial rule and the contemporary status within the
Federal system of the United States.
When the Virgin Islands became a part of the United States in 1917,
the Danish legal code was retained as the basic law. Military, civil,

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 3

and judicial responsibility were vested in a series of naval governors
appointed by the President of the United States until 1931. On Feb-
ruary 27 of that year, an Executive order from the White House
transferred jurisdiction from the Navy to the Department of the
Interior, and the first civilian governor was appointed by the
President.
The islands now are governed under the Revised Organic Act of
1954, by which the Congress authorized distinct executive, legislative,
and judicial branches of the local government. This act, which pro-
vided a substantial degree of self-government, is being studied with an
eye to amendments which would give the islands an even greater
measure of home rule. In order to make available to the Congress the
recommendations of Virgin Islanders in this regard, the legislature
authorized the calling of a convention of elected delegates to meet in
December 1964 for the purpose of drafting a proposed new Organic
Act.
Under the present basic law, the Governor is appointed by the Presi-
dent, with the advice and consent of the Senate. He functions under
the supervision of the Secretary of the Interior, and is responsible
for execution of local laws, administration of all activities of the
executive branch, appointment of department heads and other em-
ployees. He also reports annually to the legislature on the State of
Territory and recommends new legislation to carry out the various
programs of local government.
Also under the executive branch is the Government Secretary who is
appointed by the President. He has certain administrative responsi-
bility for banking and insurance laws, licensing, and assessment of
real property. In the absence of the Governor, the Government Secre-
tary serves as Acting Governor.
A unicameral legislature is elected for 2-year terms. It consists of
11 members, 2 from St. Croix, 2 from St. Thomas, 1 from St. John,
and 6 elected at large by the voters of all three islands. The Governor
must sign each bill passed, before it becomes law. A vetoed bill may be
passed over the objection of the Governor by a two-thirds' vote of the
legislature. Then, the Governor must approve it or submit it to the
President for final action.
Judicial power is vested in two municipal courts and a Federal
district court. Most local cases are tried by the municipal court sitting
in St. Croix or one which sits in St. Thomas and St. John. However,
the Federal district court exercises some local jurisdiction as well as
that over cases arising under Federal law. The district court judge
and district attorney are appointed by the President.
Charlotte Amalie is the seat of government, and the Governor is
represented on the islands of St. Croix and St. John by administrative
assistants.

6 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Finances and Taxes
The Government of the Virgin Islands has three principal sources
of revenue, each normally contributing about one-third of the funds
available for capital and operating disbursement.
The first primary source of revenue is from local income taxes.
These are authorized under an act of the Congress which provides that
Federal income tax schedules be applied as a local tax in the Virgin
Islands. A second major source is the combination of local taxes, such
as real property, gross receipts, trade and excise taxes, customs duties,
and license fees. The third big contributor to the Virgin Islands
Treasury consists of Federal excise taxes collected in the United States
on imports of Virgin Islands products and returned to the local gov-
ernment as matching funds.
Combined local revenues and matching funds provided a total of
$25,674,452 for capital and operating requirements in fiscal 1964, as
compared with $19,701,263 in fiscal 1963.
The Virgin Islands also benefit from participation in such federally
supported programs as public housing, urban renewal, and various
health and educational activities, on much the same basis as enjoyed by
the States.

Economic Development
Tourism is by far the most important industry of the Virgin Islands.
During fiscal 1964, income from visitors' expenditures reached a new
record of 48 million.
However, the local government recognizes the need for a broad
agricultural and industrial base in order to maintain a stable economy.
To encourage diversification, vigorous steps have been taken to attract
many small, and a few large, manufacturing industries. These con-
tribute year-round employment at good wages, and thus helped the
islands attain a higher standard of living than that provided by the
sugar plantation economy of bygone days.
Recognizing the importance of the rum distilling industry as a con-
tributor to the volume of exports, the local government has joined
with distillers information of the Virgin Islands Rum Council, which
promotes the sale of this product on the mainland.
Through its Department of Agriculture and Labor, the local govern-
ment has developed a pilot program in the production of food crops
for export to the winter market on the mainland. Initial success with
this program indicates that such crops provide a much sounder direc-
tion for agriculture to follow than the maginal production of sugar-
cane.
Over a decade ago, the local government adopted the use of tax
incentives to encourage industrial development. Legislation for this

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS /

purpose was revised in 1961 and again in 1964 to further attract private
investment both within the island and from outside. Under this pro-
gram, hotels, guesthouses, industrial concerns, housing projects, and
others enjoy tax exemption up to 10 years and the return of 75 percent
of income taxes in the form of subsidy. The 1964 revision was designed
to spur new hotel and guesthouse construction by extending the tax
exemption benefits for those who qualify through building new facil-
ities or enlarging present ones.
Some manufacturers in the Virgin Islands are benefited by a special
provision of the U.S. Tariff Act of 1930, originally enacted as section
301 (now 19 U.S.C. 1202, [general headnote] 3(a)); under the pro-
vision duty-free entry into the United States is permitted for all ar-
ticles grown or produced in the islands from Virgin Islands or U.S.
materials, and also for all products or manufactures of the islands
which do not contain, by value, more than 50 percent foreign materials.
The local government has acted to protect the integrity of section 301
and guard against abuses by setting up tax quotas for several classi-
fications of products, notably woolen yard goods. Production volume
which conforms to the set quotas is taxed locally at only 1 cent per
yard, while production in excess of quotas is taxed at a much higher
rate.

Virgin Islands Corporation
Next to the local government, the largest single economic factor in
the islands is the Virgin Islands Corporation. This is wholly owned
by the Federal Government and was chartered during the great de-
pression of the 1930's to help stabilize the economy of the community.
The chief activities of the Virgin Islands Corporation have been
the growing of sugarcane, operation of a raw sugar mill, generation
and distribution of electric power, land management, operation of the
St. Thomas Airport, and sea-water desalination for public use.
The charter of the Virgin Islands Corporation expires in 1969. In
cooperation with the local government, VICORP now is taking steps
to transfer or liquidate its activities and properties. While this is
transpiring, interim operations of value to the Virgin Islands are
being considered, such as the establishment of an interisland ferry
service which could be disposed of upon expiration of the VICORP
charter.

Population
The population of the Virgin Islands is currently estimated by the
Local Bureau of Vital Statistics at 41,913; St. Thomas 21,973, St.
Croix 18,830, and St. John 1,110. The last official census, however,
was taken on April 1, 1960, showing a total population of 32,099.

8 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Of the total listed in the 1960 census, 15,930 were male and 16,169
female; 18,017 were residents of urban communities, and 14,082 were
rural; 8,892 were enrolled in schools. The total labor force was
11,334, of which 7,363 were male and 3,971 female. The percentage
of civilian labor force unemployed was 3.4, or a total of 383.
St. Thomas was the most populous island, according to the 1960
census, with 16,201 inhabitants. St. Croix had 14,973 and St. John
925.
The traditional language is English. However, French is also
spoken by the citizens of French descent on St. Thomas, and many
Spanish-speaking families have come from Puerto Rico, chiefly settling
in St. Croix.
The population is deeply religious and worships in many churches,
including Roman Catholic, Anglican, Lutheran, Methodist, Jewish,
Moravian, Seventh-day Adventist, Pilgrim Holiness, Christian Mis-
sion, Dutch Reformed, and Baptist.

Health and Education
Living conditions are approaching mainland standards, now that
per capital income has steadily advanced to levels roughly comparable
to the United States. The climate is healthy and devoid of the threat
of diseases which once were associated with tropical environments.
There is no need for home heating or heavy clothing. The critical
housing shortage of several years ago is being solved rapidly by both
government and private building.
Modern medical and surgical services are provided by good hos-
pitals and clinics for all three islands. Public health programs are
constantly being expanded to take care of school and family needs.
Two new multimillion-dollar health centers are being designed, with
an early construction start assured for both St. Croix and St. Thomas.
The Virgin Islands literacy rate is comparable to mainland com-
munities. Public schools go from kindergarten through high school.
Two high schools were accredited early in 1964 as a result of con-
tinuous upgrading of instruction, curriculums, and physical facilities.
A $2,500,000 crash construction program has been launched to cope
with the shortage of classrooms.
The College of the Virgin Islands completed its first academic year
in the summer of 1964 and is looking forward to its second year with
expectation of some 500 students in both full- and part-time status.

Communication and Transportation
A dial telephone system covers all three U.S. Virgin Islands and is
being expanded rapidly. Within the next year, marine cables will

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 9

make possible direct dialing to Puerto Rico and the mainland. World-
wide radiotelegraph service also is available.
There are three radio stations, one television station, and five news-
papers, three of them dailies.
Except for short-stay cruise ship passengers, almost all visitors
come to the Virgin Islands by air. Most of them fly by jet aircraft
to Puerto Rico and the rest of the way by smaller piston planes.
However, St. Croix now is served by direct jet schedules, and a new
jet airport is being planned for St. Thomas.
Once in the islands, visitors are provided good local transportation
by bus and taxi service as well as rental vehicles. Driving is on the
left-hand side, as in England. Most roads are paved, with streets
and highways being improved every year.

Highlights of the Year

The 88th Congress gave heed to the petition of the local govern-
ment that it be authorized to issue general obligation bonds. En-
abling local legislation was enacted which makes it possible for the
Virgin Islands to finance the construction of critically needed schools,
hospitals, and water systems with such bonds.
Prior to this, such construction has been undertaken on a pay-as-
you-go basis. Local governments on the mainland had long relied
on their long-range health, education, and other programs. How-
ever, the Virgin Islands had been faced with the necessity of paying
for each year's progress with the same year's receipts. This some-
times forced the adoption of stopgap measures which bore only transi-
ent significance to the long-range requirements of the fast-developing
islands community.
Congressional recognition of the Virgin Island's fiscal responsibility
was echoed by financial institutions. Assurances were received that
bond issues of sufficient scope to meet the islands' needs would be sub-
scribed at extremely low rates of interest. This is eloquent testi-
mony to the soundness of the community's economy and credit. It
also articulated a welcome from the financial community to the revival
of the territorial bond as an attractive investment. Since Alaska
and Hawaii had become States, no territorial bonds had been issued.
Such bonds are of particular interest to financial firms doing business
in the Virgin Islands, since they are tax exempt under both Federal
and local laws.
By the end of the fiscal year, it was a matter of only a few months
before the financial base would be completed for the long-range de-
velopment of health, education, and water facilities of the Virgin
Islands.

School Construction Expedited
Top priority was given to the construction of new schools and class-
room additions to be financed by the first Virgin Islands issue of gen-
eral obligation bonds. The Governor directed the Commissioner of
Education to submit a "crash building program" at a tentative cost of
$2,500,000. This program was to be planned as the first segment of
long-range school construction which had been proposed in a master
plan developed by the New York University project for upgrading

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 11

the public schools of the islands. The Governor emphasized that the
"crash program" should be expedited so that the new classrooms
would be available for use by the beginning of the 1965-66 school year.

Two Milestones in Public Education
A tremendous forward stride in secondary education was recog-
nized when two Virgin Islands high schools were accredited by the
Middle States Association of Secondary Schools. The two high
schools so honored were those at Charlotte Amalie in St. Thomas and
Christiansted in St. Croix.
A second milestone was recorded when the local government en-
tered into a contract with New York University for a 3-year program
to upgrade public education in the islands. The contract followed a
comprehensive survey of educational problems and deficiencies which
had been made by NYU. It was designed to implement recommenda-
tions growing out of this survey. In addition to a master plan for
school construction, the NYU project undertook a comprehensive
program of improvements in curriculums and instruction.

Increased Enrollment Requires Expansion
The number of public school pupils was up 5.73 percent in fiscal 1964
as compared with the previous year.
The need for more room was met partially through the addition of
20 elementary classrooms and 14 high school classrooms. In addition,
a new gymnasium, a new music suite, and four vocational shops were
put into use at Charlotte Amalie High School, and similar special
instruction facilities were under construction in St. Croix.
The effect of a new pay plan for teachers and administrators was
felt for the first time. Higher salary levels, more in line with competi-
tive mainland pay, made it possible to recruit and retain more and
better qualified staff members.
Upgrading the curriculum and instruction was accompanied by the
testing of students for capacity and achievement. A study was made
of dropouts, and specific steps were taken to meet this problem.
Vocational training and rehabilitation programs were expanded,
and recreational activities were given new emphasis.
The school lunch program was continued, with an average of 6,940
free lunches being served each schoolday. The goal of the Department
of Education is to make available one balanced, nutritious meal to
each school pupil every day.

New College of the Virgin Islands
The College of the Virgin Islands successfully completed its first
academic year during fiscal 1964.

12 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

The first freshman class came through the year with acceptable
standards, and several hundred participants in the continuing educa-
tion program of late afternoon and evening classes profited from their
part-time studies.
To increase the readiness of high school graduates for their first
college year, precollege summer sessions were offered to students who
plan to enroll in the College of the Virgin Islands and other institu-
tions of higher learning.
Six important mainland colleges and universities formally agreed
to accept credits earned at the College of the Virgin Islands toward
completion of degrees.
The confidence of the public in the future of the college was mani-
fested by the contribution of $750,000 from private sources in gifts
and pledges.
Late in the fiscal year, land was made available from acreage owned
by the Virgin Islands Corporation for a new campus on St. Croix.
Plans were made for an important extension center there.

New Health Centers Planned
With the approval of bonding authority, the local government was
able to go ahead with plans for new multimillion-dollar health centers
on St. Croix and St. Thomas. These will be financed by Federal grants
and local general obligation bonds.
Guidelines for the project envision 2 general hospitals of 250 beds
each, 2 long-term hospitals of from 60 to 75 beds each, 2 Public Health
Clinics, 1 School of Nursing, and 1 student nurses' residence.

State of Health Excellent
The general health of the Virgin Islands continued excellent through
fiscal 1964. There were no epidemics, and mass immunization pro-
grams were continued to forestall the outbreak of preventable diseases.
Efforts to eradicate the Aedes aegyptae mosquito, carrier of yellow
and dengue fevers, were redoubled. It is predicted that this insect
pest will be eliminated from the Virgin Islands within 3 years, and
that the presence of other types of mosquitoes will be greatly
diminished.
While the long-range health needs of the islands will not be met until
completion of the new health centers, present facilities on all three
islands were modernized and expanded. Additions to the staff made
it possible to enlarge programs which depend on specialist personnel.
New ambulances and diagnostic equipment were purchased. Inservice
instruction and advanced studies were provided to improve the qualifi-
cations of the staff.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 13
The workload increased sharply. The number of surgical opera-
tions doubled, and the demand for radiological and laboratory ex-
aminations mounted.

Record Progress in Housing
By the end of the fiscal year, 7,053 Virgin Islanders were enjoying
modern, sanitary, safe living quarters provided by Federal and local
government housing programs.
While housing remains a major problem, plans for future projects
promise an islands-wide solution within the next few years.
A large dent has been made in the requirements for low-income
housing. Hence the local government now is placing equal emphasis
on meeting the shortage of housing for middle-income families and
professional families.
Homeownership is being stressed by making locally financed emer-
gency housing units available for purchase by tenants on attractive
terms. Other projects, both public and private, are offering new
homes for sale to families being relocated from substandard areas, on
long-term, low-interest mortgages.
Civicminded private builders are cooperating with the local govern-
ment on plans which will make economical housing available to all
citizens of moderate means through a crash construction program. It
is expected that this program will provide 1,000 homes within 2 years
at prices from $8,000 to $12,000.
New housing and building codes were approved by the legislature
during fiscal 1964. Community planning, with the support of urban
renewal projects, is aimed at wiping out blight areas in the very near
future.

Public Works
The vital services of the Public Works Department were expanded
during fiscal 1964 to meet the steadily increasing demands of a
growing population.
Street and road maintenance were improved. Garbage and trash
pickup services were broadened, with a total of 321,076 cubic yards
of garbage being hauled, more than double the amount for the previous
year. Water mains and sewerlines were extended and improved.
More than 320 million gallons of water were distributed through
the potable water systems of St. Thomas and St. Croix, an increase
of more than 50 million gallons over the total for fiscal 1963.
Capital projects included important harbor and docking improve-
ments in St. Croix and St. Thomas, as well as major expansion of
the Alexander Hamilton Airport on St. Croix.
766-234 0-65-2

14 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Under the Federal accelerated public works program, projects in-
cluded the covering of open gutters, improvement of storm drainage
facilities, and the reconstruction of sidewalks and streets in St.
Thomas. The major project for St. Croix under this program was
the expansion of water facilities serving Christiansted.

Pilot Program for Food Crops
The major agricultural activity of the local government was con-
tinuation of its pilot program for the production of food crops on
St. Croix.
With the phasing out of sugarcane as the island's principal crop,
many farmers are showing interest in this plan for growing produce
which will yield higher profits. To spur private production, the
Department of Agriculture and Labor provided the community with
operating materials and services. Seeds, plants, insecticides, and
fertilizers were distributed to growers, and land preparation services
were offered.
The local government's own Agricultural Station produced 85,448
pounds of vegetables, some 14,000 pounds more than previously esti-
mated. These vegetables were successfully marketed on the mainland
during the winter months.
Plans now are going forward for the creation of farmer coopera-
tives to facilitate the distribution of produce from private farms.
Meat production was improved significantly, but the dairy industry
suffered from the severe drought conditions. Important assistance
to alleviate the effects of the drought was rendered through the distri-
bution of feed, after President Johnson declared the Virgin Islands
a disaster area.

Islands Economy Continues Sound
Judged by any criterion, the economy of the Virgin Islands set new
records in fiscal 1964.
Local revenues totaled $17,272,559, an increase of 42.75 percent over
fiscal 1963. The internal revenue matching fund reached $8,401,892.95,
as compared with $7,601,284.81 in fiscal 1963.
The per capital income of Virgin Islanders was conservatively esti-
mated at $1,761, as compared with $1,543 for fiscal 1963. The present
rate is almost double that of 1959, when per capital income was $986.
Bank assets and bank loans again set records.
These new economic records were due in no small part to the con-
tinued sound growth of the Virgin Islands' No. 1 industry, tourism.
Almost half a million visitors came to the islands during fiscal 1964,
over 100,000 more than in fiscal 1963. These visitors spent more than
$48 million, as compared with just over $41 million the previous year.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 15
Industrial diversification continued with the establishment of five
new industries catering to the export trade and three new enterprises
serving the local market.

First Primary Election Held
The first party primary election ever held in the Virgin Islands took
place in November 1963. Such elections were provided for under a
new election code which took the selection of party candidates out
of the hands of small political clubs and give it to the duly registered
voters.
The first primary election was for the purpose of designating mem-
bers of the various party territorial committees.
The second primary election, to be held in October of 1964, was
called to nominate party candidates for the Sixth Legislature of the
Virgin Islands and for the posts of delegates to the Virgin Islands
Convention which will convene in December.

The Virgin Islands Convention
During its regular session, the legislature passed an act calling for a
Virgin Islands Convention to draft and recommend to the Congress
a new Organic Act as the basic law of the territory.
This convention would be composed of the duly elected members of
the Sixth Legislature plus 22 additional delegates, 2 to be elected
from St. John, 4 from St. Croix, 4 from St. Thomas, and the remain-
ing 12 to be elected at large.
It had been 10 years since major changes had been made in the
Organic Act which serves as the Territorial Constitution. The con-
sensus of the legislature was that the Virgin Islands had demonstrated
their responsibility in the realm of self-government and that a greater
measure of home rule should be made possible.

16 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

.. "
7:
` '' ..;- .
C-;
'`' '
r\
~Clpl. .

.I
r

S. ~SI

fg I

I,

q)

Sb
I.

RESTORATION OF THE STEEPLE BUILDING by the National Park Service
as a part of the National Historic Site on St. Croix was completed during fiscal
1964. This old church building in Christiansted now houses a museum tracing
the romantic past of St. Croix from pre-Columbian days to the present.

Legislation

During the fiscal year 1964, four sessions of the legislature were held.
In addition to the regular session of the Fifth Legislature from Jan-
uary 13, 1964, to March 12, 1964, three special sessions of the Fifth
Legislature were required-the Second Special Session in December
1963, the Third Special Session in April 1964, and the Fourth Special
Session in June 1964.
At the Second Special Session held in December 1963, six bills were
proposed by the Governor and approved. Four resolutions were in-
troduced and adopted. The six bills were approved by the Governor.
At the regular session held in January through March 1964, 194
bills and 46 resolutions were introduced. A total of 169 bills and 40
resolutions were adopted. Of the 169 bills adopted, 149 received
executive approval and 20 were vetoed. At the Third Special Session
held in April 1964,26 bills and 5 resolutions were introduced, of which
23 bills were passed and approved.
In the Fourth Special Session held in June 1964, 11 bills were intro-
duced, 2 bills were dropped, and 9 were approved by the Governor.
Three resolutions were introduced and adopted.
Cooperation between the executive and legislative branches of Gov-
ernment continued to be excellent and resulted, as in the previous
year, in a high record of progressive legislation. The following are
the most significant pieces of legislation which were passed by the
legislature and approved by the Governor.
Act to authorize the Governor to negotiate a contract for the
purchase of additional electric generating equipment for the
islands of St. Thomas and St. John.
Act to authorize participation of the Virgin Islands in the Car-
ribbean Pavilion at the New York World's Fair of 1964-65; to
establish the Virgin Islands World's Fair Fund and to make an
appropriation therefore.
Act establishing Temporary Committee on Poverty in the
Virgin Islands.
Act designating Virgin Islands-Puerto Rico Friendship Day
in the Virgin Islands.
Act to authorize employees of the government of the Virgin
Islands to borrow money from the employees retirement system.

18 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
Act authorizing the Governor to issue an executive order re-
garding rights and obligations of employees of the government of
the Virgin Islands.
Act to provide for the protection of resident workers.
Act to regulate child labor in the Virgin Islands.
Act to amend Title 29, Virgin Islands Code (the Housing Code).
Act to amend the provisions of chapter 309 of title 5 of the Vir-
gin Islands Code relating to the commitment of defendants ad-
judged not guilty by reason of mental illness.
Act to amend Chapter 5, Title 29, Virgin Islands Code (the
Building Code).
Act to add chapter 71 to title 19 of the Virgin Islands Code to
provide for the storage and disposal of waste and the prevention
of littering of public places.
Act to authorize an accelerated and expanded housing program
within the Virgin Islands.
Act to provide for a convention, election of delegates, and for
the submission of proposals of the convention to the Congress and
President of the United States, to provide an appropriation
therefore.
Act relating to discrimination based on sex, and for other
purposes.
Act to amend the provisions of chapter 20 of the Virgin Islands
Code relating to the operation and licensing of motor vehicles,
negligent homicide by means of a motor vehicle, and for other
purposes.
Act to authorize the Governor of the Virgin Islands to accept
a certain proposal from Westinghouse Electrical International
Co. for the purchase and installation of water desalination and
power generating facilities for the island of St. Thomas, to enter
into an agreement with the Virgin Islands Corporation for the
leasing of such facilities, and for the purchase of certain others.
Act to establish a pay plan for assistant commissioners, deputy
commissioners, and certain other officers of the government of the
Virgin Islands.
Act to establish a policy of free transportation for school-age
children, to provide an appropriation therefore, and for other
purposes.

Matters Involving Federal Action

Special Customs Exemption Lapses
The tourist industry of the Virgin Islands suffered a setback on
March 31, 1964, when the special $200 customs exemption previously
allowed visitors returning to the mainland and Puerto was allowed to
expire.
The waiver of the requirement that visitors to the Virgin Islands
must be abroad for at least 48 hours in order to qualify for the standard
$100 customs exemption remains in force until June 30, 1965. This
waiver continued to benefit merchants catering to persons making
short visits to the islands.
In an effort to secure further extension of the special $200 customs
exemption, the local government worked intensively on presentations
to the Congress. For a time, it seemed that such an extension would be
voted. At the recommendation of the Federal Executive, the House
of Representatives passed a bill which would have extended the special
exemption until June 30, 1965. However, the Senate Finance Com-
mittee did not hold hearings, and the special exemption lapsed and
has not yet been reinstated.
The local government is continuing its efforts to obtain reinstate-
ment of the special $200 customs exemption, and it is hopeful that the
next session of the Congress will take favorable action on the matter.

Section 301 Tariff Unresolved
Certain manufacturing industries in the Virgin Islands now benefit
from the special tariff producing section 301 of the Federal Tariff Act.
In its present form, section 301 allows goods manufactured in the
islands, but containing foreign components, to be imported into the
United States duty free, if the value of the foreign components does
not exceed 50 percent of the value of the finished product.
The section 301 provision has been an important factor in the ability
of the Virgin Islands to attract new industry and diversify its economy
beyond the base of tourism. However, several bills have been pro-
posed for congressional action which would impair the value of section
301 to islands industries.
The local government has opposed changes in section 301 which
would cripple the new industries which have settled in the islands.

20 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Meanwhile, it has taken strong steps to protect against abuses of the
duty-free provision. The legislature enacted a law which authorized
the Governor to set quotas for various categories of manufactured
goods, with substantial taxes to be applied against items made in
excess of quota. This has been effective in assuring that Virgin Islands
industries do not profit from an unfair advantage over mainland
competitors.
It is hoped that objections to the continuation of section 301 in its
present form will be overcome, thus paving the way for further diver-
sification and expansion of islands industries.

Bonding Authority Granted
The petition of the local administration that the Virgin Islands be
authorized to issue general obligation bonds received congressional
approval early in 1964. The bonding authority for such specific proj-
ects as hospitals, schools, and water facilities was limited in amount up
to 10 percent of the aggregate assessed valuation of taxable real
property in the islands.
Used in conjunction with the previously existing revenue bonding
authority, general obligation bonds will make it possible for the
Virgin Islands to plan construction of essential projects on a long-
range basis.

Submerged Lands Made Available
The Congress also enacted legislation which authorizes the Secretary
of the Interior to transfer to the territory certain tracts known as
"submerged lands" for 'approved public purposes.
These tracts include reclaimed, or filled, areas which have been
created by dredging, as well as certain presently submerged areas.
The local government has applied for transfer of a number of tracts
designated as available areas on both St. Croix and St. Thomas. Plans
are being made to use this land for such purposes as recreation, indus-
trial sites, urban renewal projects, and parks.

Land Use Disputes
Disputes between tenants and the Federal Government delayed the
transfer of a major portion of federally owned land on St. Thomas
to the local government.
The disputes arose over a number of leases purported to have been
made with the Department of the Interior during the preceding 10
years, which were canceled by the Department of the Navy. Hearings
on the matter were held by a subcommittee of the Senate Committee
on Interior and Insular Affairs. No report or recommendation had
been made by the end of fiscal 1964.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 21
The Governor has stated that the local government will follow any
recommendations of the Senate committee on this matter. It is ex-
pected that the issue will be resolved and the land will be transferred
to local public ownership during 1965. The acreage involved has been
declared surplus and presently is administered by the Virgin Islands
Corporation.

New St. Thomas Airport
Significant progress was made during fiscal 1964 toward the pro-
vision of appropriate airport facilities for the island of St. Thomas.
A committee appointed by the Governor recommended that the pres-
ent Harry S. Truman Airport be replaced by a new facility in the
lagoon area at the eastern end of the island.
The local government initiated steps to obtain financial assistance
from the Federal Aviation Agency by filing a preliminary master plan
for the proposed new airport. The facility would be constructed in
two phases. The first would provide a 5,600-foot runway, capable of
handling piston planes and medium-range jets. Phase 2 would extend
the runway to a length of 8,000 feet, thus accommodating the use of
long-range jet aircraft. The entire project would require some 5 years
to complete.
The local government also made preparations for participation in
two proceedings before the Civil Aeronautics Board, involving the
awarding of routes and the selection of carriers to serve the Virgin
Islands from Puerto Rico and the mainland. Hearings in these pro-
ceedings were scheduled for 1965.

Ocean Freight Rate Agreements
An agreement was reached between the local government and the
East Asiatic Co. concerning increased freight rates on shipments of
plywood from the west coast to the Virgin Islands. The shipping
company had filed with the Maritime Commission a new rate of $1.70
per 100 pounds, representing an increase of 20 cents per 100. The local
government filed a formal protest with the Commission on the basis
that such an increase would adversely affect construction programs
in the islands. Subsequently, the company and the local government
negotiated a compromise which would allow a rate increase of 10 cents
per 100 pounds. The East Asiatic Co. put this new rate into effect June
30, 1964. The local government advised the Maritime Commission
that it would not protest that rate.

Antenna Site Disputed
A dispute arose during fiscal 1964 over plans to use certain govern-
ment-owned lands at Recovery Hill, St. Croix, as the site for a tower

22 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
to carry an FM radiobroadcasting antenna. The disputants were two
private parties who were contesting for such rights.
The local government decided to permit the use of this site as a
multiple antenna location, available to all parties who would be li-
censed by the appropriate Federal authorities to conduct broadcasting
operations therefrom. As a result of this decision, the dispute was
well advanced toward settlement at the end of fiscal 1964.

Power and Water Utilities

Early in fiscal 1964, the Board of Directors of the Virgin Islands
Corporation voted to declare the power and water facilities of
VICORP as excess to the needs of the Federal Government. This
action was taken in order to permit transfer of these facilities, on a
negotiated basis, to the local government through the General Services
Administration.
Since the Congress had not appropriated funds needed to expand
power and water facilities to meet the growing demands of the islands,
it was decided that the territorial government would be in a better
position than VICORP to shoulder the responsibility for providing
these utilities to the community. The facilities involved are the power-
generating plants on both St. Croix and St. Thomas, plus the sea-
water desalination unit on St. Thomas. At year's end, the local gov-
ernment was planning the establishment of a Virgin Islands Power
and Water Authority to administer the utilities after the transfer.
A firm of independent consulting engineers was employed by the
General Services Administration to appraise the VICORP facilities
and establish a fair market value. The local government likewise re-
tained a nationally recognized engineering firm to make a separate
appraisal of the facilities.
Due to the phenomenal increases in demands for power and water,
the local government lost no time in initiating plans for expansion.
Engineering consultants were commissioned to study the present and
projected needs and recommend specific plans for construction of new
facilities to meet these needs. In line with the consultants' recom-
mendations, the local government invited proposals from manufac-
turers to cover the first segment of new plant expansion. This would
be a 7,500-kw. steam-generating unit, coupled with a desalination plant
capable of producing 1 million gallons of potable water per day for
the St. Thomas installation. Preliminary plans for further additions
to the St. Thomas plant and a new steam-generating plant for St.
Croix were well underway.
At year's end, a definitive contract was being negotiated with the
low bidder for construction of the first segment on St. Thomas. It
is expected that this facility will be on the line on or before September
30,1965.

Virgin Islands Corporation

The charter for the Virgin Islands Corporation expires in 1969 and,
according to present plans, will not be renewed. The management
of VICORP and the local government have been working cooper-
atively to achieve the transfer of functions and properties of the
federally owned corporation.
One of the major activities of VICORP has been sugar milling and
the administration of large tracts of land on St. Croix that have been
devoted to the raising of sugarcane. However, the Congress has re-
fused to underwrite the corporation's losses on its sugar operations.
This has meant that the local government has had to foot the bill for
such losses out of funds that otherwise could be used for education,
health, and other essential services. In view of the fact that St.
Croix's labor force is no longer dependent on the sugar operation for
employment and other agricultural uses promise better profits for
small farmers, a decision was made by VICORP to phase out its sugar
activities. Consequently, the corporation offered to sell most of its
1,700 acres devoted to sugarcane and the sugar mill. The successful
bidder for the land agreed to keep the sugar mill in operation at least
through June 30, 1966. By that time, further industrial and agricul-
tural expansion on a diversified basis should provide new employment
opportunities and land development for farmers on a better profit
basis.
During fiscal 1964, the local government and VICORP management
negotiated the transfer of other land on St. Croix for use as a
campus and instructional center by the College of the Virgin Islands.
Sites for other projects in housing, education, health, and welfare are
being made available from VICORP holdings. On St. Thomas, the
original site of the College of the Virgin Islands was formally pre-
sented to that institution by deed. Negotiations continue for transfer
of such facilities as the St. Thomas Airport, power and water plants
to the local government. Meanwhile, officials of VICORP and the
local government have explored jointly the development of new activ-
ities for VICORP to engage in under its charter through June 30, 1969.

Virgin Islands Government News Bureau

Personnel: 3 Operating appropriation: $78,500
At the beginning of the fiscal year, the responsibility for public
relations operations of the local government was transferred from the
Department of Commerce to the Governor's office.
This was done in recognition of the importance of this function in
support of tourism and the economic development of the Virgin
Islands. The transfer was designed to place public relations activities
on an equal footing with other departments and agencies of the local
government and to cover all the developmental programs of the
administration.
A new Virgin Islands Government News Bureau was established
upon authority granted by the legislature. It began operation on
August 15, 1963, with the assignment of a resident director by the
public relations agency retained by the local government to represent
the Virgin Islands on the mainland. Subsequently, an additional
writer and secretary were assigned to the News Bureau from the
Governor's office. Photographic services were provided by a contract
with an islands agency.
The principal activity of the News Bureau was that of supplying
news and pictures to the mainland offices of the public relations agency
for dissemination to newspapers, magazines, television and radio
media in the States and in other markets of the Virgin Islands. The
emphasis was on tourism and economic development.
Clipping services and other reliable measurements revealed that free
publication space and broadcast time devoted to extolling the attrac-
tions of the Virgin Islands would have cost millions of dollars if paid
for at time and space rates charged for advertising.
The News Bureau and the public relations agency, which operates
offices in New York City, Washington, D.C., and Miami, Fla., also
served the local government with counsel and reporting involved in
matters of liaison with the Federal Government. Locally the News
Bureau also served as a central disseminating agency for governmental
news to the newspapers, television and radio media of the islands.
Assistance was also provided in the preparation of reports and other
documents required by the local government.
During the year the News Bureau was host to people representing all
of the top magazines, networks, newspapers and news syndicates which
25

26 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
cover the United States. Motion picture companies and advertising
and promotional firms were assisted. British, Canadian, Puerto
Rican, and Latin American broadcasters and journalists also were
assisted in this way.
Among the stock facilities maintained are a picture library in the
New York City office, a smaller picture file in the local News Bureau
office, and information files which are made available upon request.
The New York office maintained liaison with the local government's
Information Center and advertising agency headquartered there.
The News Bureau covered all three Virgin Islands, with special
emphasis on the tourist attractions of St. Croix, which had begun to
come into its own as a major segment of the community's total tourism
industry.

Control of Processing of Woolen

Yard Goods

Late in the fiscal year 1963, an act was passed by the legislature
and approved by the Governor imposing quotas for processing and
shipment of woolen yard goods from the Virgin Islands to the United
States for the purpose of controlling the flow of such foreign material
through the Virgin Islands into the United States.
A 1-cent-per-yard tax was imposed upon the amount of woolen yard
goods produced within the quotas to be fixed by the Governor, and
65-cents-per-yard tax on the excess of processing and shipment over
the quotas so established.
Early in fiscal year 1964 a hearing board appointed by the Governor
to recommend classifications and quotas for woolen yard goods made
its report to the Governor.
The report of the hearing board was approved by the Governor and
the quotas recommended therein were immediately established and
proclaimed. These quotas governed the processing and shipment of
woolen yard goods from the Virgin Islands into the United States for
the remainder of the fiscal year.
Because of the importance of this report, its major portions which
are of public interest are detailed below in full:

Classifications
"Woolen yard goods," for the purpose of this Act, is a term of art, to be inter-
preted as meaning goods of which the original material is partly or entirely
wool (rather than cotton, silk, rayon or some other material) and which are,
in ordinary business practice, sold by the yard. "Woolen yard goods" therefore
excludes yarns and apparel, of whatever material, since these are not commonly
sold by the yard.
In the current structure of business operations in the Virgin Islands, the
Board finds useful the recognition of three Classifications of woolen yard goods.
These are:
(a) Thermal laminated woolen cloth.
(b) Showerproof woolen cloth.
(c) Knitted worsted and/or woolen cloth.
It may, from time to time, in the further development of Virgin Islands indus-
try, become necessary or advisable to establish new Classifications or to modify
the limits of present Classifications.

28 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Definitions and Time Limits

In the further text of these Recommendations, quantities are expressed uni-
formly in linear yards, and liability to production tax should be governed by
this linear standard, in accordance with normal trade practice, so long as there
is no evidence of adoption of abnormal widths for purpose of evasion of tax
liability.
For the year 1964, quantities to be subject to the minimum tax of 1 cent per
yard, as prescribed by Act No. 971, are stated in annual amounts. The Board
however recommends that, for 1964, these quantities be, in fact, assigned in two
equal halves. One-half shall be authorized for sale or removal from the Virgin
Islands from January 1 through June 30 and the second half from July 1 through
December 31. Whenever the Governor finds that because of unanticipated or
unusual conditions beyond the control of a quota beneficiary, hardship would
result by strict enforcement of the semiannual quota, he may make such adjust-
ment in the same, provided that the total quota allomtent for the year remains
unchanged. Any amount sold or removed in excess of this halfyear limit shall
be subject to tax at 65 cents per yard.
For the year 1963, no useful purpose would now be served by the imposition
of half-yearly limits. Every quantity allocated to any firm shall govern the
period March 25, 1963, through December 31, 1963.
For the year 1964, it is recommended that the Governor initially withhold
the full 10 percent of the quota assigned to each Classification, as permitted
under paragraph 504(f)(1), and that half of such withholding be released
before the close of each half-year period. For the year 1963, it is recommended
that only 5 percent now be withheld and that this amount be released before the
end of the year.
It is recommended that quotas of 1 cent tax yardage assigned to firms now
for 1963 be final, except for the 5 percent reserve. With respect to 1964, however,
it is recommended that any firm be permitted to make new and timely sub-
missions regarding any new consideration, or any material change in factual
circumstances, as well as regarding its share in any quota in accordance with
the standards of paragraph 504(f) (2), Title 33, Virgin Islands Code.

Production Subject to 1-Cent Tax in 1964

Of the Classification designated knitted worsted and/or woolen cloth (referred
to by the one interested party as "knitted fabric of continuous length, knit from
worsted and worsted blend yards"), the Board recommends that a quantity
of 1,300,000 yards be made subject to the tax of 1 cent in 1964.
Of the Classification designated thermal laminated woolen cloth, the Board
recommends that a quantity of 500,000 yards be made subject to the tax of
1 cent in 1964.
Of the Classification designated showerproof woolen cloth, the Board recom-
mends that a quantity of 1 million yards be made subject to the tax of 1 cent
in 1964.

Production Subject to 1-Cent Tax in 1963

Of the Classification designated knitted worsted and/or woolen cloth, the
Board recommends that a quantity of 1 million yards be made subject to the
tax of 1 cent for the period March 25, 1963, through December 31, 1963.
Of the Classification designated thermal laminated woolen cloth, the Board
recommends that a quantity of 375,000 yards be made subject to the tax of 1 cent
for the period March 25, 1963 through December 31, 1963.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 29

Of the Classification designated showerproof woolen cloth, the Board recom-
mends that a quantity of 5 million yards be made subject to the tax of 1 cent
for the period March 25, 1963, through December 31, 1963.

Knitting Cloth

It is not the purpose of this Board, in its recommendation, to limit or restrict
the knitting of cloth in the Virgin Islands. It is rather our purpose to subject
this manufacture to the lowest rate of tax permitted by Act No. 971. We have
accordingly recommended a quota of 1 cent tax for 1964 equal to the maximum
indicated production capacity. Our recommendation for 1963 reflects the same
annual quota, adjusted to the shorter period from March 25 to December 31.
The firm which appeared before this Board is only now beginning production
in the Virgin Islands. It is knitting yarns into fabrics from worsted, cotton
and synthetic yarns. We believe such production should be encouraged and
fostered.

Laminating Cloth

It is the purpose of this Board to limit the yardage of thermal laminated woolen
cloth subject to only 1 cent production tax sufficiently to provide an opportunity
for a thorough reexaminaiton of the facts should other firms enter this produc-
tion but not, in effect, to inhibit the expansion of operations by the one firm
presently engaged in this manufacture in the Virgin Islands. The quota of
500,000 yards for 1964, while substantially below the 850,000 yards requested,
is large enough to provide profitable operations. It is also far above the demon-
strated ability of the firm to sell-as limited purely by commercial and startup
considerations. The quota of 375,000 yards for 1963 reflects the same annual
limit, adjusted to the shorter period from March 25 to December 31. Should
the 500,000-yard quota for 1964 in fact inhibit expansion, the firm may appeal
for a larger quota at a later time.
The thermal limitation of woolen cloth would seem to involve substantial
manufacturing activity per yard processed. This fact may be illustrated from
the projected 300,000-yard annual operation-still far above the volume achieved.
The starting imported material costing about $0.60 per yard is converted into a
product sold for about $1.75 per yard. Wages and salaries in the Virgin Islands
plant would come to about $0.37 per yard. Foam bought from mainland U.S.
sources would cost about $0.30 per yard. While these and other figures relating
to this operation are not proven by experience, they are initial presumptive evi-
dence of manufacturing activity deserving encouragement.

Taxation of Showerproof Woolen Cloth

The quantity of 1 million yards, subject to tax at 1 cent per yard, recommended
for 1964, is less than one-sixth the quantity of approximately 6,370,000 linear
yards of this material shipped from the Virgin Islands to the mainland United
States in 1962.
The quantity of 5 million yards subject to tax at 1 cent per yard, recommended
for 1963, will provide for such shipments during the remainder of 1963 at about
half the average monthly level at which these shipments have been running dur-
ing the period since March 25, 1963.
The Board recommends this higher rate of 1 cent tax production for the next 6
months in order to provide notice and to facilitate transition to drastically
different operations.
766-234 0-65-3

30 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

If these different operations are to constitute a production which the Virgin
Islands should foster and encourage, they must involve carrying manufacture
much farther than the present comparatively trivial processing. For example,
such operations could go in the direction of producing finished apparel, rather
than the yard goods subject to Act No. 971.
The Department of Commerce of the United States was not in a position to be
helpful to this Board in its examination of the impact of the Virgin Islands pro-
duction of showerproof woolen cloth on mainland industry. The Department of
Commerce transmitted expressions of injury, but provided no evidence in sub-
stantiation of these expressions.
The Board did not receive any substantiated evidence of injury from the pri-
vate mainland woolen industry. Notwithstanding notice of hearings in the
trade press, these private woolen interests did not appear before our Panel.
As to the matters with which this Board is concerned, the testimony submitted
by this private woolen industry before other forums is too cursory and impre-
cise to have any probative value.
The Virgin Islands witnesses before this Board were informative, but we did
not find them as helpful as we had hoped. In particular, the Board was not
completely satisfied by their information on the extent to which their Virgin
Islands processing enhances the commercial value, or price, of the woolen ma-
terial they import. And the Board has not been able to attribute great value to
some of their projections of costs and returns at various volumes of output.
One authoritative witness for a Virgin Islands showerproofing firm testified
that the showerproofling process enabled his firm to secure a price about 7%
cents per yard higher, in mainland U.S. markets, than was secured for imported
material otherwise identical. This 7%-cents-per-yard increment to price relates
to material selling in the general range of $1.25 per yard. This testimony before
our Committee is consistent with the testimony offered before other forums that
mainland mills could showerproof woolen cloth for less than 10 cents per yard.
The Virgin Islands firms have also estimated that, for an annual volume of
4 million yards of showerproofing, a firm's direct production labor cost would be
between 31/ cents and 4 cents per yard.
There seems to be least conflict of evidence on the issue of the burden of cus-
toms duty avoided by bringing the reprocessed wool cloth used for showerproofing
through the Virgin Islands. The applicable customs formula is 60 percent of
value, plus 372 cents per pound. The import value of the materials is most
frequently in the range of 55 cents to 60 cents per linear yard, and the duty
avoided in the range of 60 cents to 65 cents per yard. The sales value of the
showerproofed material, in the mainland United States, has a considerable range
but may cluster in the area of $1.25 per linear yard.

Injury to U.S. Mainland Industry?
This Board finds no basis for concluding that the Virgin Islands showerproofing
of imported wool cloth, made from cheap reprocessed wool, causes any damage
whatsoever to the U.S. mainland producers of raw wool. There is no evidence,
and no analytical presumption, that there would be any greater demand for
American wool if this Virgin Islands showerproofing were to be wholly discon-
tinued. The same cheap woolen cloth would be imported without passing
through the Virgin Islands.
Similarly, this Board finds no basis for concluding that the U.S. mainland
weavers of woolen cloth suffer any significant reduction of business from this
Virgin Islands showerproofing. The Virgin Islands does no weaving of the cloth.
And the mainland wool weavers hardly weave 1 yard less on this account.
(They-or others-do however lose such work-involving the employment of

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 31

less than 100 persons-as may be involved in showerproofing after weaving,
where showerproofing is valued.)
Further, this Board finds that, as presently conducted, this Virgin Islands
operation does not reduce the business or employment of mainland apparel manu-
facturers to any significant degree. The same work of manufacturing the cloth
into apparel has still to be done after the Virgin Islands showerproofing.
What the Virgin Islands showerproofing operation does tend to displace is the
importing business of importers on the U.S. mainland who would otherwise bring
this material into the United States without going through the Virgin Islands,
without showerproofing it there, and in some part without showerproofing it at
all. The chief competitors of the Virgin Islands showerproofers are even now
importers of the same grades of wool cloth, to which a piece of braid has been
uselessly attached in the European country of origin-causing the material to
be classified as "braided." Such "braided" woolen material now pays a duty
of 42% percent, while the unbraided material-such as is imported through the
Virgin Islands-would have to pay about 105 percent to 110 percent.
Because of the requirement of section 301 of the Tariff Act, that the value of
imported material may not account for more than 50 percent of the eventual
U.S. mainland sales price (necessitating a "value-added" of 100 percent), and
because identical "braided" material can be brought into the mainland after a
customs burden of only 42% percent, there is no presumption that-even after
allowing for the enhancement of value by showerproofing-Virgin Islands shower-
proofed woolen cloth can now be sold cheaper on the mainland than identical
"braided" material. Indeed our witnesses testified to the contrary. Therefore
this Virgin Islands processing is not even a unique channel for low-end merchan-
dise, correspondingly benefiting U.S. mainland consumers who cannot afford to
pay more.
Injury to U.S. Treasury and Benefit to Virgin Islands
In the judgment of this Board, it is the U.S. Treasury, in its capacity as the
recipient of customs duties, rather than the mainland woolen industry, which
is shown by the data to have incurred disproportionate injury from the shower-
proofing of woolen cloth in the Virgin Islands. The data indicate that the pres-
ent showerproofing operations do not confer a substantial benefit on the Virgin
Islands, particularly when measured against the amount of duty involved.
In 1962 the customs duty would have been $4 million if the showerproofed
woolen cloth brought into the U.S. mainland ports from the Virgin Islands had
been received directly from Europe. The order of magnitude will be the same
for 1963 as for 1962. Our recommendation for 1964 will sharply reduce this
sum, but that will not take effect until 1964.
As we have indicated above, the enhancement of value by Virgin Islands
showerproofing may be in the range of 10 cents per linear yard. The customs
duty involved may average 60 cents to 65 cents per linear yard. It is noted
that the tax imposed by Act No. 971 on amounts of yard goods produced in
excess of the levels proclaimed by the Governor was set at 65 cents per yard.
Total Virgin Islands production costs for the volumes involved in 1962 and
1963 amount to a range of only $700,000 per annum, including the 1 cent pro-
duction tax but exclusive of income tax. There are in addition, indirect and in
part, intangible gains to the Virgin Islands economy from the existence of these
showerproofing operations.
There are incidental costs due to the problems of operating in the Virgin
Islands, including notably transportation costs.
In the view of the Board, consideration of all relevant factors does not coun-
terbalance the disproportion between total Virgin Islands production costs and
either U.S. selling prices or duties involved.

32 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Standards of Virgin Islands Benefit
A substantial benefit to the Virgin Islands must be ascertained in every case
where a proposed economic activity is to receive encouragement or assistance
from the Virgin Islands Government. (The reality of a substantial benefit
needs to be established particularly firmly where there are countervailing dis-
advantages-to the Virgin Islands or to others.) But there are great, inherent
difficulties to specifying in advance, through general standards or criteria, pre-
cisely which classes of activities are likely to yield substantial benefits. We are
not acquainted with any satisfactory rule of thumb. And even if such a rule
were to be found, it is only infrequently that there will be adequate advance
knowledge of the characteristics of particular industries to permit applying the
rule with assurance.
It is clear that the standards which have satisfied the Treasury, in its limited
approach, as showing that an item is a product of the Virgin Islands, may still
reflect a situation where there is no substantial manufacturing activity in the
Virgin Islands.
For purposes of section 301 as currently administered in determining whether
the product contains "foreign materials to the value of more than 50 per centum
of their total value," the total value may be determined by prevailing U.S. prices
which in turn reflect the duty payable. In essence, then, the value added in
the Virgin Islands, for purposes of reaching such a total value, may consist
largely of the high profit corresponding to the tariff duty foregone. Such a
result would not ensue if the "total" value were not permitted to exceed "cost of
production" as determined in accordance with section 402(a) (3) of the Tariff
Act, where allowable additions for profit and administration expenses are
determinable by levels generally prevailing among manufacturers of merchandise
of the same general character.
In considering what is truly an item that is significantly a product of the
Virgin Islands, we must give due consideration to all costs incurred in the
Virgin Islands.
Direct labor and materials costs are self-evidently significant. Likewise sig-
nificant are so-called factory "burden" costs-including power, depreciation, and
direct taxes-as well as general administrative expenses (including costs of
supervision). Power costs are specifically mentioned because such costs are
relatively high in the Virgin Islands.
Depreciation costs are increasingly significant throughout the world under
modern conditions of production. Depreciation charges may represent a large
share of the cost of production of products that would indisputably be Virgin
Islands products even though made from imported materials-regardless of
whether discussion related to production of rum from imported molasses; pro-
duction of electric power from imported residual fuel oil: or production of
alumina from imported bauxite. Industries with relatively high depreciation
charges will employ skilled and professional personnel and will purchase a
wide variety of materials and services from other United States sources.
As a general rule-subject to the qualification that this is put forward as a
general guide rather than an inflexible formula-this Board considers that
there exists a manufacturing activity, culminating in a product of the Virgin
Islands, where manufacturing is so substantial that all of its prudent and
necessary costs, other than the cost of materials imported from abroad, is equal
in value to at least 50 percent of the cost of its imported materials.

Office of the Government Secretary

Personnel: 40 Operating appropriation: $283,735
Records of the functions of the Office of the Government Secretary
provide an excellent barometer to measure the economic health of the
community. These functions include responsibility for corporations,
passports, licenses, real property assessment, recording of documents,
insurance, alcohol control, and participation in the Industrial Incen-
tive Board's activities.
The economy of the Virgin Islands showed continued healthy
growth. With the exception of the Industrial Incentive Board, in-
creased activity was recorded in all these phases of the economy.
In order to help cope with the increased load in fields under juris-
diction of the Government Secretary, the Governor recommended, and
the legislature passed, two important acts:
1. A law increasing the number of government and public
notary commissions from 25 to 45.
2. An amendment to existing licensing laws which lists 17 addi-
tional categories of licenses, with corresponding fees.
Revisions of insurance and banking laws now are under considera-
tion. The draft of a proposed new insurance law has been distributed
to insurance companies, agents, and other interested persons for review
and comment prior to submission of the Governor's final recommenda-
tion to the legislature. Also, a complete revision of the banking law
is being prepared by the Department of Law.
During the fiscal year, more rigid enforcement methods were adopted
to help overcome the problems of corporate activity, registration of
trade names, renewal of licenses, and the control of alcoholic beverage
labeling and shipment to the Virgin Islands.
One function of the Office of the Government Secretary is that of
compiling and publishing all legal documents, including supplements
to the Virgin Islands Code, Virgin Islands Rules and Regulations,
Virgin Islands Register, Virgin Islands Session Laws and Slip Laws
of the Virgin Islands.
The following chart of the number of acts and resolutions passed,
approved, and processed during the past 5 years shows the growth in
legislative activity to meet the expanding needs of the community.
33

34 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Licensing of Businesses and Occupations
Over the past 5 fiscal years, fees collected for licenses almost doubled,
from $76,000 in fiscal 1960 to $150,000 in fiscal 1964.
With the increased licensing activity, the problems involving de-
linquency in renewal and the licensing of new business categories have
become more acute. As a remedy the legislature included in its
operational appropriations a provision for an enforcement officer and
transferred the policing of licenses to the Department of Public
Safety. In the interim, the Office of the Government Secretary con-
tinued to make spot checks to assure business compliances with the law.
Other legislation involving license regulations included an act modi-
fying fees for vending machines. An upward revision of license fees
for most businesses failed to win approval of the legislature. The
following chart shows a comparison of fees collected and licenses
issued over the past 5 fiscal years:

1960 1961 1962
District
Licenses Fees Licenses Fees Licenses Fees
St. Thomas and St. John-.......... 1,227 $46,238.60 1,393 $51,689.00 1,514 $63,480.00
St. Croix -.....--..-------------. 886 30,49. 00 974 34,659.00 922 38,474.00
Total ............-----..---- 2,113 76,787.50 2,367 86, 348.00 2,436 101,954.00

1963 1964
District ____
Licenses Fees Licenses Fees
St Thomas and St. John--....... ...---------- .. 1,716 $101,592.0 2; 010 $117,421.50
St. Croix -----------.......... ............. ........ 1,034 39,176.00 1,486 32,811.00
Total. ----------..- -.........-- ....------2,760 140,768.50 8,496 150,232.60

Registration of Trade Names
An act providing for the registration of trade names was passed by
the legislature January 25, 1963. As a result, a total of 493 trade
names now are registered in the Office of the Government Secretary.
Of that number, 426 were registered during the past fiscal year. In
addition, there were 11 incompleted registrations, pending receipt of
supplementary information.
Fees collected during fiscal 1964 for registration of trade names
amounted to $1,695, as compared with $860 in fiscal 1963.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 35

Corporations

There are now a total of 938 corporations chartered in the Virgin
Islands; 803 are domestic, 97 are foreign, and 38 are nonprofit. Of
these, 197 filed articles of incorporation during the past fiscal year.
The Office of the Government Secretary continued its efforts to get
all corporations to meet their legal obligations, with special emphasis
on the filing of required reports and payment of franchise taxes. In
this connection, 40 corporations were dissolved during fiscal 1964 for
nonpayment of franchise taxes; 179 were referred to the Department
of Law for failure to file required reports. Twenty-eight complaints
were filed in court by the Attorney General, but were dismissed on
motion of defense attorneys.
Increased corporate activity and more effective collection of fran-
chise taxes are reflected in the following tables covering the past 5
fiscal years:
Comparative table-franchise taxes and corporate fees

1960 1961 1962 1963 1964

Filing fees, etc -------.. ---------- --- $12, 306.09 $11,874.49 $12, 458.34 $13,179.00 $15,196.17
Franchise taxes, including penalties ---... 16,657.56 16, 463. 50 20,127. 56 38,098. 75 35, 770.92

1960 1961 1962

Foreign Domestic Foreign Domestic Foreign Domestic

Certificates of incorporation issued. 8 111 14 115 17 166
Certificates of amendments issued 1 30 1 24 2 30
Dissolutions.--------.. ------ .--. 4 3 ----.. 12
Withdrawals--------------------------- 2---------- ......... 2 ........---------
Mergers --------- ------------------ 3
Surrender of corporate rights ........--------- .----.. ------- ----- 3

1963 1964

Foreign Domestic Foreign Domestic

Certificates of incorporation issued..--..--------.-----. 24 173 19 173
Certificates of amendments issued.....---------.........2 26 4 43
Dissolutions-....-..--..- .---------------............ 4 85 ........ 49
Withdrawals ..........................................-------------..-----------------......--. 4 -----...........
Mergers..- --- --.........................---------.... 1 ------- 1
Surrender of corporate rights................------------ ----- 6 4

I Does not include franchise tax payments amounting to more than $5,000 which were received on June
30, 1964-closing day of the fiscal year-but which were not deposited until July 1, 1964.

Trademarks and Patents

Renewal of trademarks and patents during fiscal 1964 showed an
increase over the previous 2 fiscal years. However, there was a de-
crease in original registrations.
To effect better compliance with the Rules and Regulations, legisla-
tion is under consideration which would authorize trademark coun-

36 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

selors to use a standard form, issued by the Office of the Government
Secretary, with which to act as registration agents for their clients.
Following is a comparative chart for the past 5 fiscal years:

1960 1961 1962 1963 1964

Original registrations------ -------- 18 12 24 24 19
Renewals ---------------------19 15 7 4 13
Assignments...---....-----------... ---- 2 6 8 6 ---
Changes in name ------- ---------- 8 2 6 2 4
Mergers --------------4 4 20 2 ...-
Design patents.--------------- 4-........... 1 1
Total-......-- ------------.--------- 55 39 66 39 37

Total fees collected during the current fiscal year amounted to
$907.50.

Passports

There has been a marked increase in the number of passports proc-
essed for the signature of the Governor. This processing includes
issuance of original passports, renewals, amendments, extensions, and
the affixing of additional visa pages in valid passport books. The
following table covers fiscal years 1960 through 1964:

1960 1961 1962 1963 1964

Issued..............-------------- ----- 169 191 199 273 273
Renewed................... .------------- 41 55 28 60 118
Amended----.....------------..3 5 9 8 8
Extended----.....-----------....-----.... 1 1 1---- ----
Total actions..--------------------- 214 252 237 341 399

Insurance

To help protect insurance policy holders in the Virgin Islands, all
insurance companies wishing to do business in the territory now are
being required to post bonds and/or securities at the time of their
applications. These usually are from $50,000 to $75,000, depending
upon the type of insurance to be written.
At the end of fiscal 1964, there were 68 insurance companies au-
thorized to do business in the Virgin Islands, 1 less than last year.
These 68 companies include 1 recently organized domestic company
and 67 foreign companies, 1 being a nonprofit organization.
During the fiscal year, 113 licenses were issued. These included
63 for insurance agents and 50 for insurance solicitors.
The following table shows taxes and fees collected in connection
with insurance activities for the past 5 fiscal years:

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 37

1960 1961 1962 1963 1964

Renewal of certificates of authority and
original registrations.--.- --------. $1,651.00 $1,951.00 $3,076.00 $3187.50 $2, 747. 60
Agents licenses ---... ---------- 1, 521.00 2,111.00 2,821.86 3,068.22 2, 870.00
Broker'slicense.... ----------------- 100.00 -.----.----- ------ --------
Solicitor's license_ ----- --------------------- 200.00 827.53 1,460.00
Gross premium taxes ....--- ----------. 6, 602. 95 12,316.87 12,784.86 15,015.37 18, 769.49
Filing annual statements -.....----.----- 98. 50 126. 00 151.00 167. 50 172. 50
Filing power of attorney...-------.------.. 15.00 45.00 145.00 90.00 115.00
Sale of insurance laws-..--.. --- ---------.---. ------ 51.00 61.00 44.00 18.00
Total------..... ------------- 9,888.45 16,700.87 19,239.72 22,400.12 26,152.49

Concerning the revisions in the insurance law now being considered,
the question of licensing nonresidents as insurance agents in the
Virgin Islands is included. The present law contains provisions for
licensing nonresidents as agents and brokers to represent underwriters'
associations, but there are no provisions for nonresident agents and
brokers in general.

Banking Board of the Virgin Islands

Banking activities in the Virgin Islands reflected steadily increasing
economic development in fiscal 1964. This is reflected in the following
table comparing the years ending June 30, 1963, and June 30, 1964.
It should be remembered that fiscal 1963 was the previous record year
for banking activity.

Fiscal year Fiscal year
1963 1964

Total assets..............--------------------------------------$59,056,190.45 $67,782,950.85
Totalliabilities.. ------------- ------------------------------------56,270,413.12 63,908,111.13
Loans ...................----------------------------------------9,149,990.47 13,282,331.67
Mortgages ....---------- ----------------------- -21,766, 369. 67 27,925,425.09
Deposits (including time, demand, and savings).....-------------- 61,988,767.83 58,721,006.43
Cash on hand-..---------....------------------------ 4, 258, 403.47 3, 379,280.27

At the end of fiscal 1964, there were four banks and one savings
and loan association doing business in the Virgin Islands. All except
one operate branches on St. Croix and St. Thomas. One has branches
on all three U.S. Virgin Islands, and one serves the British Virgin
Islands with a branch on Tortola and 1-day service each week on
Virgin Gorda.

Board of Control of Alcoholic Beverages

During fiscal 1964, an inspection was made of every establishment
offering alcoholic beverages for sale in the Virgin Islands. This re-
sulted in a tightening of enforcement in labeling and licensing
regulations.
Since alcoholic beverage production and export figures are reported
on a calendar-year basis, it is not possible to provide in this report

38 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

a fiscal-year comparison. However, production of Virgin Islands
rum dropped from a proof-gallon volume of 1,284,334 in calendar
1962 to 989,674 in calendar 1963. Export of all alcoholic beverages
from the Virgin Islands to the United States dropped from 834,121
proof gallons in calendar 1962 to 766,216 in calendar 1963.
An improved export picture for the islands may be reflected in a
total of 429,608 proof gallons shipped to the mainland from January 1,
1964, to June 30, 1964.
As a corollary, export of perfume from the islands to the mainland
increased to a new record volume of $602,328 in calendar 1963, as
compared with $528,230 in calendar 1962.

Office of the Tax Assessor

The services of a management consultant firm were retained again
to help upgrade and revise the real property assessment system, in
order to maintain equity of assessments and coordinate valuations
and taxes with present market values. The firm retained was the
same consultant which made the original reassessment study in 1960.
The new study revealed, among other things, that land value had
doubled in all three islands since 1960.
This latest study provided guides in the revaluation process, new
cost data to aid in assessment of trailers and other improvements,
and a new "time and possible use schedule" to guide appraisers and
computation clerks in proper valuation of large tracts of land which
do not show signs of development or subdivision.
The schedule of reassessment calls for the appraisal of one-third
of all properties each year. This is designed to bring about complete
revaluation of all Virgin Islands properties every 3 years.
The following charts for the past 4 calendar years show increased
effectiveness of the revised system of real property assessment and
taxation since 1960:

Detailed chart of assessments and taxes, 1960-63

Island Year Number of Assessment Taxes
bills Issued

St. Thomas.......------ ---.. ----------.. 1960 5,377 $28,777,774.00 $359,722.18
1961 5,500 28,098,747.00 351,234.34
1962 5,744 30,148,342.00 376,854.28
1963 6,210 34,520,023.00 431,500.29
St. Crolx..---...---...............-----........ 1960 4,913 30, 568,144. 00 382,101.80
1961 5,100 28,661,753.00 358,271.91
1962 5,397 31,078,240.00 388,478.00
1963 5,731 35,302,237.00 441,277.96
St. John---.....--..............---------- .. 1960 662 1,846,734.00 23,084.18
1961 703 1,981,270.00 24,765.88
1962 714 2,119,749.00 26,496.86
1963 738 2,195,352.00 27,441.90

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 39

Detailed chart of homestead exemptions and tax modifications

Number of Number of Amount of Amount of Total in
Island Year homestead modiflca- homestead modifications taxes
exemptions cations exemptions

St. Thomas -.....--... 196,1 1,1 $20,. 00 30. 200 $3442.00 $5,442. 00
1962 989 1, 374 24, 274.31 23, 628.88 47,903.19
1963 1,031 1,521 28, 913.96 12, 12.64 41,426.60
St Croix .. --......----- 1961 666 2,800 2, 300.00 63,131.64 88,431.64
1962 990 2,188 31,830.66 42,087.73 73,918.39
1963 1,182 2,133 34, 05.85 21,148. 11 6,053.96
St. John ..-.......----- 1961 110 364 2,800.00 6,600.00 9,100.00
1962 120 368 2,869. 7 4,407.07 7,276.82
1963 125 366 3,265.68 2,025. 3 5, 291.03

Total deductions: 1961.---------- ------- --------------------------------------- $182,973.64
1962 .........-- -------------.------------------------------- 129,098.42
1963....---.....------------ ------------------------------------ 102,771.9
Grand total for 3-year period.~........----------.... ---------------------------. 384,843.68

Total assessments and taxes, St. Thomas-St. Crois-St. John, 1960-63

Year Assessment Taxes before Taxes to be
adjustment collected

1960............--------------------------------- $61,192,652.00 $764,908.16 $842,239.39
1961..-.................---------------------. 8,741,770.00 734,272.13 581,598.49
1962 ...............-......------------------ 63,346,331.00 791,829.14 662,730.72
1963 ...........---........------- --------------. 72,017,612.00 900,220.18 804,232.46

Office of the Recorder of Deeds

A total of $31,956.50 in fees was collected for recording of docu-
ments in fiscal 1964, showing more than a doubling of such collections
since 1960, when the total was $13,774.75.

Industrial Incentive Program

Provisions of the Industrial Incentive Act were amended to pro-
vide additional encouragement to hotels and guesthouses to provide
new rooms in support of the tourist industry. Additional tax exemp-
tions were made available to bring about construction of new hotels
and guesthouses, as well as the expansion of present facilities. As
a result, the total number of hotel and guesthouse accommodations
on all 3 .islands will be increased from the present 1,770 to 3,420 by
1966, almost double.
At the end of the fiscal year, 74 persons, firms, or corporations held
Certificates of Tax Exemption and Subsidies. This list was com-
prised of 50 assorted small businesses and 24 hotels and guesthouses,
employing an estimated 2,224 persons receiving an average payroll of
over $5 million per year.

Department of Education

Personnel: 718 Operating appropriation: $3,878,974
Two milestones were set in the course of public school progress for
the Virgin Islands during the fiscal year 1963-64. In January 1964,
when the Middle States Association of Secondary Schools notified
the Department of Education that the high schools of Charlotte Am-
alie and Christiansted had been accredited, it was a "first" in the
history of public education in the Virgin Islands.
The second milestone was the local government entering into a con-
tract with New York University for a 3-year program to upgrade
elementary and secondary education in the Islands. This contract
was signed after NYU had made a comprehensive survey of the public
schools, reporting on their problems and deficiencies, and making
recommendations for correction. The project was designed to imple-
ment the recommendations growing out of the survey. Five basic
phases included establishment of a Resident Project Directorship,
an Executive Training Program, a Demonstration School, a Training
Program for Principals and Supervisors, and an Inservice Training
Program for Teachers.
As part of the NYU project, leadership training programs were
given for all school administrators from assistant principals to the
assistant commissioner. The first phase of understudy and promotion
for six key departmental executives was completed under the guidance
of NYU consultants, with a segment of the training taking place on
the university's campus. Beginning in February, the majority of
teachers received continuous inservice training under the direction
of selected professors from New York University.
Effect of the new pay plan for teachers was felt for the first time
and helped to alleviate the problem of staff recruitment, though reten-
tion and addition of qualified teachers continued to be a major problem.
Increases in the operating budget enabled partial procurement of
necessary new series of textbooks to strengthen curriculums in read-
ing, arithmetic, spelling, and social studies. It also became possible
to institute a long-range purchasing program for equipment and
supplies, at all grade levels.
Other problems which are being attacked on a continuing long-range
basis are those of excessive dropouts before completion of public

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 41

schooling, expansion of vocational education to develop the skills
necessary for gainful employment, accelerated expansion and improve-
ment of public libraries, and the further development of school and
public recreational programs.

Public School Enrollment

The number of pupils in the public schools increased from 8,201
in fiscal 1963 to 8,671 in fiscal 1964, a rise of 5.73 percent. The follow-
ing chart shows a comparison of enrollment for the past 5 fiscal years:

1959-60 1960-61 1961-62 1962-63 1963-64

Kindergarten-...........----------...-. 422 426 495 544 564
Grades 1 through 6--..--------4,229 4,507 4,740 5,089 5,197
Grades 7 through 12-...-..--------2,198 2,199 2,389 2,568 2,910
Total.............--------- ----- ----- 6,849 7,132 7,624 8,201 8,671

Budget

The operating budget of the Department of Education for fiscal
1964 was raised 22 percent, or $702,646, over the preceding fiscal year.
Of this increase, $406,581 was allocated to pay plan increases for
employees. The budget increase set a per-pupil expenditure of $420
as compared with $389 in fiscal 1963. Since the national average of
the 50 States is $460 per pupil, it is apparent that the Virgin Islands
expenditure for education is approaching a favorable comparison
with school districts on the mainland. Local and Federal funds were
budgeted as follows:

A. Virgin Islands Appropriation-Fiscal Year 1964

Division Appropriation Percent of
total

Office of the Commissioner.......................---------------------- $101,734.00 2.6
Curriculum and Instruction ...........----------. -------------------- 2,547,501.00 65.7
Business and Auxiliary Services...-----.---------------- -388,991.00 10.0
School Lunch---------.... --------------------------- 349,916.00 9.0
Community Programs..... ------.. --------------- .. ----. 336,574.00 8.7
Grants and Contributions ........-------------------. 154,258.00 4.0
Total---.. ---------.............. ------------------------- ----3,878,974.00 100.0

B. Federal Aid Funds and Grants-Fiscal Year 1964

Activity Amount

National Defense Education Act (Titles III, V, and X)....--------------------- -------$60,908.10
Vocational education ------.. ------------------------------------- 76, 885.00
Rural library extension program..----. -----. --------------------------------. 11,379.00
School lunch....----------------------------..--------------------- 63,434.00
Special Federal grant-Public Law 874.... -------------.--------------------- 112,463.00
Vocational rehabilitation ---------.. --- -------------------------45,156.13
Total ---..........- ------------ ------------------------------------------ 370,225.23

42 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

C. Total Operating Funds Available-Fiscal Year 1964
Amount Percent
of total

Virgin Islands appropriated funds--.......-------------- -------------$3,856,974.00 91.2
Federal aid funds and grants..----------------..----------------- 370, 225.23 8.8
Total.-------- -- --------------------------------------------------- 4,227,199.23 100.0

5-Year Comparisons of Total Operating Budgets

Local funds Federal Total
funds

1959-60 .......------ --------------------------------... $1,858,807 $246,426 1 $2,105,233
1960-61........-------- --...-- ---------.......---------.. 2,142,812 283,864 2,426,676
1961-62 ........-- --------------------------------------- 2,574,418 269,485 2,843,903
1962--63....--------------- ------------------------------ 3, 154,328 323,971 3,478, 299
1963-64--.......-- -------------------- ----------------1.. 3, 856,974 370,225 14,227,199
1 It is interesting to note that the total operating budget of this department has increased 100 percent in
the last five years, whereas the school enrollment has increased only 26.6 percent for the same period.

School Construction Program

Twenty new elementary classrooms were added during the school
year, 4 on St. Croix, 4 on St. John, and 12 on St. Thomas.
At Charlotte Amalie High School, St. Thomas, the year saw com-
pletion of 10 new classrooms, a new gymnasium, a new music suite,
and four vocational shops. At Christiansted High School, St. Croix,
four classrooms and a gymnasium were under construction. At Claude
O. Markoe School, Frederiksted, St. Croix, a three-room shop and
four elementary classrooms were completed and scheduled for use in
the next school year. A new elementary school was erected at Grove
Place, St. Croix, and will be ready for use in fiscal 1965.
Based on a careful study of enrollment projections and present fa-
cilities, a comprehensive long-range plan for school construction was
completed under the direction of the New York University project
director. Also involved in this project were the principal staff mem-
bers of the Department of Education and the technical staff of the
Planning Board. Future sites were designated. Closing of some older
schools with substandard facilities and insufficient playground space
was recommended, and two reorganization plans were submitted.

Curriculum and Instruction

Fiscal 1964 was a year of significant achievement in elementary edu-
cation, both in physical improvement and professional advancement
of personnel.
Variety and availability of instructional materials and all audio-
visual aids were increased. New report cards for kindergarten, pri-
mary, and intermediate grades were introduced. These new cards

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 43

reflect a dual marking system designed to reveal more clearly and
accurately a child's progress to the parent.
New reading textbook series were selected and placed in use for
primary and intermediate grades, and a new arithmetic series and
new spelling texts were provided for all elementary grades. Con-
versational Spanish was added to the fifth- and sixth-grade curricu-
lum in all elementary schools. A remedial reading pilot program
was inaugurated in two of the larger elementary schools on St.
Thomas. Also, beginning in September 1963, classes for mentally
retarded children were started on both St. Croix and St. Thomas.
In the secondary schools, fiscal 1964 saw an expanded course of
study, including a broader program of electives. Among the new
electives offered was French. High school mathematics courses were
radically changed with the introduction of a new series of textbooks.
Three lanes of study-remedial, regular, and accelerated-were es-
tablished at each grade level. In the science courses, a unified official

A

THE VIRGIN ISLANDS have become a Peace Corps laboratory for training
volunteer groups. Above, Governor Paiewonsky meets the young men who
built a three-classroom school building on St. Croix in 4 weeks and 2 days.
The volunteers then went on to Gabon, Africa, to build similar schools there.
Nurses and teachers also are being given part of their training in the Virgin
Islands for foreign Peace Corps programs, and a permanent training center
is being planned for St. Croix.

44 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

textbook list was adopted. Similarly, the Social Studies curriculum
adopted a new textbook list which is prescribed for the islands' high
schools.
Standardized tests of mental ability and achievement were ad-
ministered to pupils on all three islands. Results of these tests were
used, with other information concerning the students, to measure
their interests, abilities, and growth, thus helping them to make real-
istic plans for their future education.
Readiness tests were administered to all first grades, and achieve-
ment tests were given to pupils in grades 2 through 9. The Sequential
Test of Educational Progress was taken by 10th and 12th graders, and
the School College Ability Test by 11th and 12th graders.
Of the 2,910 students enrolled in junior and senior high schools,
2,823 (97 percent) were tested during the school year. Local norms
on the Lorge-Thorndike Intelligence Tests were developed. Hence,
it now is possible to compare students with their counterparts on the
mainland, as well as with other Virgin Islands students.

Dropout Survey Report
A study of enrollment for the 1963-64 school year revealed that
there were 48 percent fewer children enrolled in the 10th grade than
in the 8th grade. Total enrollment in the public schools for the 50
States recorded a difference of only 2.65 percent between 8th and 10th
grades. Out of 265 Virgin Islands pupils identified as dropouts, ap-
proximately 50 percent left school at the junior high school level.
Of the 132 pupils who dropped out of school in the junior high
school grades, 95 were boys and only 37 were girls. On the other hand,
of the balance of 133 dropouts at other levels, 71 were dropouts from
the senior high school grades-47 girls and only 24 boys-and of the 62
dropouts in elementary grades, 33 were boys and 29 girls, mostly from
the upper elementary grade.
Three conclusions of this dropout report were considered significant:
1. That the junior high school curriculum should be reviewed,
with the objective of ascertaining weaknesses in program that
fail to hold the interest of these pupils and motivate them to con-
tinue their public school education.
2. That any child identified as a dropout pupil should be re-
ferred to guidance counselors, and that a written report on such
pupils be made a part of their cumulative records. When the
student has been dropped from the attendance roll, an attendance
counselor should determine the reasons for withdrawal.
3. That, after all efforts to retain the potential dropout have
failed, he should be referred to the local employment service for
assistance in the job training program.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 45

Vocational Education
The Vocational Education Act of 1963 will make available addi-
tional Federal funds for such use in the Virgin Islands, but it also
will necessitate the writing of a new basic plan. In preparation for
this, the Assistant Program Coordinator and the Deputy Commis-
sioner for Vocational Education attended a national leadership de-
velopment and training class at Pennsylvania State University which
was sponsored by the Office of Education in Washington, D.C. The
Deputy Commissioner also attended a week of conferences on the new
Vocational Education Act in Washington and conferences in Chicago
for State supervisors.
New York University conducted a 10-week workshop in the Virgin
Islands for all teachers connected with the vocational education
program.
Courses in business education and electronics will be introduced into
the vocational education program during fiscal 1965. In the case of
electronics, all equipment and supplies were purchased this past year
and the course was prepared. It will be offered as a 3-year course at
Charlotte Amalie High School.
Facilities for business education at Charlotte Amalie High School
were greatly improved in fiscal 1964. An additional classroom was
completely equipped with desks, chairs, and typewriters for 30 stu-
dents. Also, dictating and transcribing equipment and photocopy
machines were added to the facilities.
In both St. Thomas and St. Croix, practical nurses were graduated
from both in-school and adult classes.
Pupils from high schools in St. Croix and St. Thomas were enrolled
in vocational agriculture, automobile mechanics, carpentry, plumbing,
electricity, masonry, restaurant and hotel courses, and home economics.
More than $100,000 was made available to out-of-school youth and
adult education programs for 17 projects or courses approved under
the MDTA. The projects are being organized as rapidly as the Virgin
Islands Employment Service refers people to the Department of
Education for training.
Preliminary enrollment for the 1964-65 school year shows all
schools anticipating an increased number of students in practically
all vocational courses being offered.

Vocational Rehabilitation
Fiscal 1964 marked the second time since the beginning of the
vocational rehabilitation program that the Virgin Islands ranked
among the first five States and territories through the Nation in cases
closed per capital population. In fiscal 1963, the Virgin Islands ranked
12th in the nation.
766-234 0-65-4

46 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

HIGH SCHOOL COMMERCIAL STUDENTS learn the most modern office
techniques in classroom equipped with electric typewriters, dictating machines,
and duplicating equipment. Other phases of vocational training are being
rapidly expanded to increase the skills and earning power of young Virgin
Islanders.

During the past fiscal year, 154 cases were in referred status. Of
this number, 44 were accepted for service and 5 were closed in referred
status. This left a total of 101 cases in referred status at the end of
the year.
Regarding the active cases, 40 were placed on jobs commensurate
with their skills and abilities. This left a total of 53 cases on the active
load at year's end. Of these 53 cases, 16 were ready for employment,
and 14 already were employed. However, these last 14 cases were not
closed as rehabilitated, because they still require counseling services
while on the job in order to help them make the proper adjustment.
During the past fiscal year, a sum of $26,796 in local appropriations
was supplemented by $45,156.13 in Federal funds for a total of
$71,952.13 expended on the entire vocational rehabilitation program.

Public Libraries
The Department of Education administers three public libraries
and bookmobile services on St. Thomas and St. Croix, plus a small
branch library on St. John. This is done through the Bureau of
Libraries and Museums. In addition to the existing facilities, plans

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 47

were formulated during the 1964 fiscal year to start a branch library
in a part of the French Town School. This branch will be opened
sometime during the next fiscal year.
With the aid of Federal funds provided by the Library Services Act,
bookmobile services to rural areas were continued during fiscal 1964.
Auxiliary services of the library system have been well patronized
by the community. The St. Thomas record collection has been ex-
panded and is seeing steadily increasing use. The work of the
photoduplication laboratory has continued to keep the libraries' film
records of newspapers up to date. Also, general works stored in the
special collection of the Von Scholten Room in St. Thomas are being
added to the collections of the St. Croix libraries.

Sports and Recreation
During the past year, 232 teams, made up of 3,649 Virgin Islanders,
participated in the various organized sports sponsored by the Bureau
of Recreation. Games played drew an aggregate attendance of more
than a quarter of a million spectators. This public recreation speaks
well of the efforts made by the Bureau of Rrecreation to extend the use
of its facilities to the whole community for recreational and athletic
activities.
During the year, over 1,500 use permits were issued on the 3 islands
for use of facilities under the jurisdiction of the bureau.
Improvements of the facilities on St. Thomas included construction
of bathroom facilities at the Long Bay Courts and completion of a
new concession and storage building at Griffith Park. In St. Croix,
the softball field was lighted and developed. A new soccer field was
surveyed. A preschool play area was developed. Fencing was in-
stalled around tennis and basketball courts, with new basketball goals
also being provided.

School Lunch Program
It is the goal of the Department of Education to make available to
every schoolchild one balanced "type A" meal during every schoolday.
During the past school year, a daily average of 6,940 students were
fed in the lunch program. A total of 1,257,055 free meals were served.
Total expenditures were $395,311. This was financed by a local appro-
priation of $349,916 and Federal grant expenditures of $45,395.
Improvements to the physical facilities of the school lunch program
added to the efficiency of the effort. A new, modern warehouse, with
offices, was completed at Charlotte Amalie High School. Also on St.
Thomas a new kitchen and cafeteria were constructed at the Saints
were completed at the George Washington Elementary School. In
Peter and Paul Parochial School, and a new dining room and kitchen

48 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

St. Croix, the office of the district supervisor was completely reno-
vated, and repairs to the roof and water system of the warehouse
building were approaching completion.
The two most troublesome problems which remain are reduction of
food waste, especially milk, and broadening the menu offerings. This
latter item depends upon providing more refrigerated space.

WORLD'S RECORD BLUE MARLIN was recently caught in Virgin Islands
waters. The 814-pound fish is being mounted and will be exhibited by the local
government at the Sportsmen's Show in New York City. In the past few years,
the offshore fishing in the Virgin Islands has brought to light an exciting new
area for this sport, abounding in marlin, sailfish, wahoo, tuna, and many other
game fish.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 49

A 5-day conference of representatives from the Nutrition Services
of the Health Department, the Future Home Makers of America,
and the School Lunch Administrative Staff was held to tackle the
problem of food waste. This conference involved a study of 5,213
high school students. Results of the study will be used as a basis for
conducting a long-range nutrition educational program in order to
reduce food waste.

Business and Auxiliary Services
The Department of Education contracted with bus operators, who
operated schoolbuses exclusively for accommodation of students, to
provide free transportation. In addition to contract bus service, the
department maintained and operated one bus of its own on St. John.
In St. Croix, schoolbuses covered routes totalling 250 miles in
length. On an average day in a typical month, 1,944 pupils were
given transportation to and from school. In St. Thomas, an average
of 359 students received daily transportation, including 31 St. John
students traveling between the Red Hook boat landing and Charlotte
Amalie High School. Due to the closer proximity of most students
to their schools on this island, routes cover only 46 miles. In St.
John, 34 pupils were transported to and from school by the contract
service. Fifty-two pupils were carried by the departmental bus, and
44 high school students were provided with boat transportation to St.
Thomas.
Major emphasis was given the project of improving building main-
tenance and custodial functions in schools on all three islands.
Custodial workshops were held on St. Croix and St. Thomas, with
retraining in toilet repairs and sanitation standards stressed. A non-
stop painting program was initiated successfully to assure that exterior
and interior surfaces were -renewed before the opening of the next
school year.
The New York University consultant for building maintenance
came to the islands in January and made a comprehensive survey of
maintenance problems. This survey was the basis for an action pro-
gram of plant maintenance and repairs that now is showing promising
results.
Recruitment of custodial personnel remains the primary problem
in improving the program of building maintenance.
To take care of the financial requirements of expanded programs
such as vocational education, the Manpower Department and Training
program, and the National Defense Education program, two addi-
tional bookkeepers were assigned to these areas of financial accounting
and reporting.
In conjunction with the Department of Finance, various accounting
systems were simplified and improved.

College of the Virgin Islands

Personnel: Operating appropriation: $365,000
Permanent 4
Temporary 57
At the end of the 1963-64 fiscal year, the College of the Virgin
Islands had successfully completed its first academic year and was
busy laying plans for the second. It appeared that the student body
would double in size with a projected enrollment of up to 100 full-time
students and more than 400 part-time students. This necessitated
the doubling of the size of the faculty, and recruitment of teachers
was well underway.
To supplement the appropriation of the Virgin Islands Legislature
of $365,000, college fund-raising activities had brought in approxi-
mately $750,000 from private sources in gifts and pledges.

Precollege Summer Session
Because the faculty felt it essential to provide a bridge between high
school and college which would reinforce the preparation of new
students, the first precollege summer session was organized for July
and August 1964. Plans were made for intensive work in English,
mathematics, speech, reading, and study methods. To augment the
four instructors, six tutors were assigned to assist students individually
and in small groups.
The summer session was made available to students who plan to
attend Puerto Rican and mainland institutions, as well as those enroll-
ing in the College of the Virgin Islands. Partial support for the
summer session was contributed by the Carnegie Corporation in the
amount of a $12,000 grant.

Confidence in.Faculty
During its first year, the college won public confidence because of
the quality of its faculty and instruction. There is every evidence
that qualified men and women will continue to be attracted to the
college, while on leave from mainland faculties or for longer periods
of service. For example, in the coming academic year, the new faculty
will include three men who are department chairmen at their own

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 51

institutions. The fact that they come from Massachusetts, Illinois,
and Utah suggests the widespread interest aroused by the islands'
venture into the field of higher education.

Credits Accepted on Mainland
Largely due to the stature of the faculty, six mainland colleges and
Universities have agreed formally to accept credits earned at the
College of the Virgin Islands toward completion of degrees on their
own campuses. These institutions are Antioch College (Ohio),
Catholic University of Puerto Rico, Mount Holyoke College (Massa-
chusetts), New York University School of Education, Sacramento
State College (California), and Utah State University. Agreement
to accept such credits, in turn, provided supporting evidence for the
college's admission to the National Defense Eduction Act student loan
program. It is expected that formal accreditation by the Middle
States Association will take several years, but the first steps in this
direction have been reassuring.

FIRST FORMAL ACADEMIC PROCESSION in the history of the Virgin
Islands celebrated the inauguration of the first president of the College of the
Virgin Islands. The college completed its first full year as fiscal 1964 ended
and was looking forward to the enrollment of some 500 students in its second
year. Campus commands magnificent marine views and contains both beaches
and golf course.

52 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Freshmen Visit States
In the spring of 1964, the college's pioneer class visited the mainland
for the first Washington-New York seminar. This seminar focuses
on the conduct of the Federal Government in its relations with U.S.
territories and other countries. The trip coincided with the pres-
entation by the U.S. Department of Health, Education, and Welfare
of the deed which gave the college clear title to the land on which
its St. Thomas campus is situated.

President Inaugurated
During the spring a convocation was held on the campus for the
inauguration of the college's first president. A highlight of the
inaugural events was a 1-day symposium for trustees, overseers, and
others on "The Role of Higher Education in Developing Areas." The
inaugural ceremonies were marked by a colorful academic procession
of representatives from educational institutions throughout the
Nation. This was the first of its kind ever witnessed in the Virgin
Islands.

Activites in the Caribbean Area
Fiscal 1964 saw preparations made for the college's contribution to
the development of other Caribbean islands. Consultations with
government and school officials in Trinidad, Barbados, and the Lee-
ward and Windward Islands led to the establishment of the Eastern
Caribbean Development Scholarship Program. This program will
make scholarships available to neighboring English-speaking islands.
Students to whom scholarships are awarded must commit themselves
to a period of service at home following completion of their studies.
The college is participating in the recently organized Caribbean
Food Crops Society. A member of the faculty serves as chairman
for the society's committee on the economics and sociology of food
production and distribution.
Initial planning was made for sponsored regional research by the
college's Caribbean Research Institute. One of the immediate goals
is to establish a Virgin Islands unit which will undertake fundamen-
tal long-range research and also make its services available to govern-
ment agencies as they seek information to help plan more effectively
for the economic and social development of the islands.
Continuing cooperation with the Peace Corps also provides a way
in which the college can assist in regional development. In April
1964, the college took part in the training of its second group of Peace
Corps volunteers. Twenty-six volunteers shared the dormitory facili-
ties of the Harvey Student Center with students of the college while

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 53

they were given field training for community development work in
Jamaica.

Campus in St. Croix
Plans were made late in the year for an important extension center
for the college's work on St. Croix. With the cooperation of the
Virgin Islands Corporation, initial steps were taken to make land
and facilities in the Golden Grove area available as a campus for
St. Croix.

Department of Health

Personnel: 637 Operating appropriation: $3,355,349

New Health Centers
By far the most significant action taken by the Department of
Health during fiscal 1964 was the first concrete step in the program
for creating multi-million-dollar health centers on both St. Croix
and St. Thomas. This first step includes preliminary design that will
be sufficient to develop accurate budgeting and scheduling for the
entire program.
The scope of the project includes 2 general hospitals of 250 beds
each, 2 long-term hospitals of 60 to 75 beds each, 2 Public Health
clinics, 1 school of nursing, and 1 student nurses' residence. It is
expected that the preliminary programing phase will be completed by
March 1, 1965.

State of Health Excellent
The state of health in the Virgin Islands continued to be excellent
during fiscal 1964. There were sporadic cases of several childhood
diseases, but none reached epidemic proportions. A very serious out-
break of dengue fever occurred in Puerto Rico and, for a time, threat-
ened to cross the waters to the Virgin Islands. There were a few
cases, but no epidemic developed. This was attributed in no small
part to the vigorous steps taken to prevent introduction and spread
of this disease by intensification of the eradication program conducted
against the carrier mosquito, the Aedes aegypti.

Health Services Expanded
Health services were greatly expanded and improved as new pro-
grams began, and new additions were made to the staff. The additions
of a radiologist, surgeon, obstetrician, pediatrician, and anesthesiolog-
ist, noted previously in St. Croix, was followed by a marked increase
in activity. With the subsequent addition of a urological surgeon,
a significant increase in workload developed in this area. The house
staff on each island, previously increased and strengthened, operated
smoothly to meet the steadily increasing demands for services.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 55

Public Health Programs Improved
For many years, the Virgin Islands have had a program for eradica-
tion of the Aedes aegypti mosquito, the carrier of dengue and yellow
fevers. However, the program has been on a scale too small to ac-
complish the desired results. In fiscal 1964, with the assistance of the
U.S. Public Health Service, the program was completely revamped
and expanded. It now is expected that the Aedes aegypti can be elimi-
nated from the islands within 3 years. Although this program is
directed specifically at the Aedes aegypti, all other mosquitoes will
be diminished, especially the Culex type, which has similar breeding
habits.
Programs previously begun, such as cancer detection, parasitology,
and home care, were intensified during the fiscal year. These programs
have been effective and popular, with growing community acceptance.
The home care program, in particular, helped to make more hospital
beds available for our critical needs by providing good care at home
for patients with long-term illnesses.

Staff Training
Inservice training, refresher courses, and advanced study were
emphasized in the staff training program.
A 2-week course for sanitary inspectors was given by a professor
from the University of Michigan School of Public Health. This en-
compassed half of the program for this activity, and arrangements
were made to complete the course of study next summer.
Three nurse midwives attended workshops at Teachers College,
Columbia University, New York City, and arrangements were made
for a year's training in operating room techniques under the super-
vision of an accredited mainland institution.
A dental surgeon was given leave for an 18-month advance training
course in orthodontics.

Hospital and Clinical Facilities
While the health needs of the community cannot be completely met
before the new health centers are in operation, the Virgin Islands hos-
pital and clinical facilities were expanded and improved.
New residence quarters for house physicians in St. Thomas were com-
pleted and occupied. The tuberculosis ward, which now serves an
average of only 11 patients, was moved to a smaller area, making
more space available for general medical and surgical services. Renova-
tion of this area was nearing completion by the end of the fiscal
year and will make some 26 additional beds available. This will give
some relief to the overcrowded conditions in the interim before the

56 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

new hospital is built. In St. Croix, modifications of the hospital facil-
ities continued, with major work being done on a new intensive care
and recovery room, pediatric play area, general refurbishing, and im-
provement of grounds.

Vital Statistics for 1963

Once again, a new live birth record was established. The calendar
year of 1963 brought a total of 1,513 live births, an increase of 138
over 1962, which had set the previous record.
The birth rate was 39.5 per 1,000 estimated population, up slightly
over the 1962 rate of 38.8 per 1,000.
The total number of deaths, which had decreased during the 2
preceding years, was up in 1963 to a total of 383, or a rate of 10 per
1,000 estimated population. This is compared with a death rate of 9
per 1,000 in 1962, or a total of 321. It is probable that these statistics
are not entirely accurate, since they are based on estimated population,
which may be set at too low a total. Accidents accounted for a sig-
nificant proportion of the estimated increase, with 31 deaths as com-
pared with 16 the previous year.
Of the total deaths in the Virgin Islands, 19 were nonresidents, 12
of which occurred in St. Thomas and 7 in St. Croix. The following
tables show deaths by age distribution and leading causes:

Deaths by age distribution

Virgin Islands St. Croix St. Thomas and
St. John

Number Percent Number Percent Number Percent

Total------------------------ --... 383 100.0 195 100.0 188 100.0
Under I year .---------------------------- 48 12.5 20 10.3 28 14.0
1-4years.--------------------------------- 6 1.6 2 1.0 4 2.1
5-14 years..-------------- --------------- 11 2.9 7 3.6 4 2.1
15-24years------ ----------------. 13 3.4 8 4.1 5 2.7
25-44 years .------------------- --------- 45 11.7 23 11.8 22 11.7
45-64years..------------------- 95 24.8 43 22.1 52 27.7
65-74 years..----------------------------- 69 18.0 38 19.5 31 16.5
75 years and over------------------------ 93 24.3 52 26.6 41 21.8
Ageunknown---------------------------- 3 0.8 2 1.0 1 0.5

Leading causes of death: Virgin Islands

Percent
Number Rate 1 of all
deaths

1. Disease of heart.--------------------------------------------- 96 250.8 25.1
2. Malignant neoplasms ------------------------.---------..-. -- 45 117.6 11.7
3. Cerebral hemorrhage and other vascular lesions affecting central
nervous system...---------------------------------------.. 33 86.2 8.6
4. Disease of early infancy-; ---- ---....... .................-------- 32 83.6 8.4
5. Accident --------------------------------------------------- 31 81.0 8.1
6. Disease of digestive system......----------------.. --........... 23 60.1 6.0

1 Rate per 100,000 estimated population.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 57

There was a greater rate of infant mortality in 1963, when there were
48 infant deaths as compared with 40 -in 1962. Here, again, the in-
crease may be due to lower than actual estimates of population increase.
The leading causes of infant deaths in 1963 are shown in the following
chart:
Leading causes of infant deaths

Number Rate t Percent of
total

1. Asphyxia and atelectasis.................-----------------------12 7.9 25.0
2. Pneumonia (all forms)--.....-------------------------- ----9 5.9 18.8
3. Prematurity....--------------------------------- ------7 4.6 14.6
4. Congenital heart disease. ---------------------------...--. 4 2.6 8.3
5. Meningitis ---------- ---------------------- 2 1.3 4.2

2 Rate per 100,000 estimated population.

A summary chart of vital statistics, comparing the calendar years
of 1963 and 1962, follows:

1963

Virgin Islands St. Croix St. John St. Thomas

Number Rate Number Rate Number Rate Number Rate

Live births--......--------- 1,513 39.5 612 35.6 41 40.7 860 42.8
Inhome .--..... ---. 47 13.1 31 15.1 4 19.8 12 11.4
Inhospital...-...------.- 1,466 196.9 581 194.9 37 190.2 848 198.6
Deaths ---- -383 10.0 195 11.4 14 13.9 174 8.7
Infant deaths ---------------- 48 31.7 20 32.7 1 24.4 27 31.4
Neonatal deaths ....--....----- 37 24.5 15 24.5 0 0 22 25.6
Maternal deaths...-...----- --- 1 .7 0 0 0 0 1 1.2
Fetal deaths...---------------- 50 33.0 15 24.5 2 48.8 33 38.4
Marriages......- --------- 539 .--- 232 --------------- 307 .---
Divorces ...----------- 171 ------- 42 .-----... ------ ------ 129
Adoptions--...-------- -31------ 0 -------.--.------. 2 13 --

1962

Virgin Islands St. Croix St. John St. Thomas

Number Rate Number Rate Number Rate Number Rate

Live births...........-- ..---- 1,375 38.8 559 35.2 40 41.3 776 41.8
Inhome----............... 32 12.3 26 14.7 1 12.5 5 10.6
In hospital-...- ------- 1,343 197.7 533 195.3 39 197.5 771 199.4
Deaths.---------------------- 321 9.0 155 9.7 10 10.3 156 8.4
Infant deaths ...------------- 40 29.1 14 25.0 0 0 26 33.5
Neonatal deaths......----......... 28 20.4 8 14.3 0 0 20 25.8
Maternal deaths ...--------- 0 0 0 0 0 0 0 0
Fetal deaths -...---.. --...--.. 49 35.6 20 35.8 0 0 29 37.4
Marriages .------------ .- 422 .-----. 169 ----------- 253 ---
Divorces..-- ------------ 180 -....... 48 .---..--------. 132 -
Adoptions.................---------- 8 ------- 0 --- ----- 2 8 ---

1 Percent of total for home and hospital.
2 St. Thomas and St. John.

Printing and Graphics Section

Three hundred jobs were produced through the Printing and
Graphics Section during fiscal 1964. Of that number, 18 were for

58 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
government agencies other than the Department of Health, and 20
were for community groups.

Health Scholarships
The Nursing Education Scholarship Committee granted awards
to 16 graduates of Virgin Islands high schools for training assistance
totaling $20,740.

Division of Hospital and Medical Services
St. Croix
There was a total of 3,273 admissions to the Charles Harwood Hos-
pital and the Ingeborg Nesbitt Clinic in St. Croix. Due in part to
the expanded services made possible by the addition of several special-
ists to the medical staff at the beginning of the year, the workload
experienced a sharp increase. During fiscal 1964, a total of 1,059 medi-
cal procedures were carried out, more than twice the 476 for the pre-
vious year. These included 290 major and 769 minor procedures for
fiscal 1964, as compared with 184 major and 292 minor procedures in
1963. The number of radiological examinations increased from 3,209
in fiscal 1963 to 6,984 during 1964.
A 14-bed addition to the Ingeborg Nesbitt Clinic was begun and
was well under construction by year's end. Two new, fully
equipped ambulances were added, one for Christiansted and one for
Frederiksted.

St. Thomas
Knud-Hansen Memorial Hospital admitted 3,985 patients during
fiscal 1964. Of that number, 1,098 were obstetrical cases, causing a
severe burden on that branch of the service.
Of particular interest was the fact that 200 patients were admitted
to the neuropsychiatric branch, with an equal number being discharged
during the fiscal year. This indicates the intensive efforts and high
quality of care rendered by the personnel of that service.
There were 973 surgical operations, of which 452 were major and 521
minor, representing an increase of 18.7 percent. The clinical labora-
tory performed 71,902 examinations, an increase of 43 percent over the
previous fiscal year. Similar increases were reported for all services
rendered at the hospital.
One of the pressing needs of the islands has been the recruitment of
a pathologist. With the increasing number of medical legal cases
and the need for clinical pathological conferences, this need has been
intensified. At year's end, a pathologist had been secured and was
scheduled to report early in the fall.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 59
Nursing procedures and fire safety doctrine were improved by the
completion of new manuals in these fields which now are the basic
guides for all medical institutions of the Virgin Islands.
The addition of a medical records librarian, serving all three islands,
proved to be of great help in upgrading the medical records section.
A new diet manual was published. The business office's operations
were improved by the addition of new equipment and systems for
billing and posting.
A report of the trauma committee of the American College of
Surgeons was most complimentary of the trauma work being done in
the hospitals in the Virgin Islands.

St. John
An additional physician was stationed on St. John, and two new
ambulances were provided for that island. Several pieces of major
diagnostic equipment were ordered to facilitate expansion of services
available at the clinics in Cruz Bay and Calabash Boom.

Division of Public Health Services
Many new programs were begun in fiscal 1964, and many older ones
were expanded. A mass immunization project was initiated, sup-
plementing routine inoculation. This was directed at children under
5 years of age. It is part of the Federal vaccination program.
An Inter-Virgin Islands Conference was held with representatives
of the British Virgin Islands. A joint health committee was estab-
lished to study and report on problems affecting the health of both
the British and American islands.
A drug and narcotic control program was initiated. The inservice
training program for sanitation inspectors was continued, in coopera-
tion with the School of Public Health of the University of Michigan.
Cooperation in civil defense activities included the provision of medi-
cal and nursing services for district emergency stations and shelters.
The department joined with the College of the Virgin Islands to offer
a medical self-help training course to be given for credit at the college.
Also, the department participated in the programs for training Peace
Corps volunteers before they were sent to assignments elsewhere.

Bureau of Nutrition Services
With the recruitment of a new bureau chief in October 1963, this
service was reactivated. Its chief responsibility was to develop nutri-
tion phases of the various Health Department programs and those of
other agencies. Emphasis was placed on services to the chronically

60 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
ill and aged, maternal care, and crippled children. A wide range of
community activities was sponsored, and inservice nutrition training
programs were conducted.

Bureau of Health Education
Activities stressed by this bureau were the selection and booking of
films for inservice training programs and for community showing on
health matters. Educational materials were distributed on such sub-
jects as dental health, accident prevention, and mosquito control.
Health education exhibits and regular radio and television programs
were sponsored to bring information to the public on Virgin Islands
health problems.

Public Health Nursing
Several new nurses were recruited to help administer the expanded
programs for which the public health nurses are responsible. The
growing rural population of the islands taxed this service to its
capacity, but the bureau succeeded in meeting the challenge.

Bureau of Dental Health
Efforts were concentrated on the large and ever-increasing school
population, with emphasis on prophylaxis and restorative work. Ad-
ditional dentists were being recruited to meet the growing caseload.
With the return of a departmental dentist, now on leave for advanced
study, a new program in orthodontics will be offered.

Bureau of Mental Health
Separate programs were conducted in serving both the mentally ill
and the mentally retarded. The difference between the needs of these
two groups was recognized with the addition of a director of planning,
who began by creating a plan for managing the program for mental
retardation. To accelerate all mental health activities, the Governor
appointed a Commission on Human Services with the Commissioner
of Health as chairman. This commission is charged with the respon-
sibility for long-range planning. To aid in analysis of the problems,
a program was initiated to provide the basic statistical material needed
for such planning.

Bureau of Environmental Sanitation
Environmental health problems continued to be pressing, due to the
needs for expanded water supply, sewage disposal, and better housing.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 61

Addition of new water facilities will make it possible to progress
toward a single supply system, with all water being treated and piped
throughout the urban areas.
As the sewer system was expanded, many new connections were
made. However, further expansion is needed to service the urban
areas. The percentages of homes currently connected with public
sewers are: Charlotte Amalie, 59.7 percent; Christiansted, 62.6 per-
cent; and Frederiksted, 74.7 percent. A big stride was made
toward treatment of sewage when a grant was awarded from the U.S.
Public Health Service for construction of the first of several sewage
treatment plants with interceptors.
The continuous sampling and testing of water from the St. Croix
and St. Thomas potable water systems continued. Testing of milk
produced in the Virgin Islands showed it to be of good quality. A
total of 237 restaurants, taverns, bars, hotels, and other eating and
drinking establishments were inspected in St. Thomas; 116 in St.
Croix; and 25 in St. John.

Bureau of Public Health Laboratories

In addition to other laboratory services, a section for the application
of the fluorescent antibody technique was established and placed in
general use. All laboratory activities showed an increase, with 28,771
examinations being conducted in fiscal 1964, as compared with 24,712
in fiscal 1963.
The following table shows the comparison for the 2 years by
sections:

Examinations
Sections
1963 1964

Diagnostic bacteriology..---------... ----------------------4,833 5,457
Sanitary bacteriology......................... .---------------------------- 1,027 1,634
Sanitary chemistry. ----------------------------------------------------- 144 284
Cytology--------.-----...------ -------------------- 1,721 441
Fluorescent antibody .-------------------------------------------- ---- 1,794
Mycology.....------------------------------------------------------------------ 3 3
Parasitology .._.......--- ----------------------- ----- 6,449 5,335
Serology ..---------------------------- 11, 535 13,793
Virology ---------------- ----------------------------------- --24
Total.---...--..--.. ------ ---------------------------- 24,712 28,765

Maternal, Child Health, and Crippled Children's Services

Previous programs were consolidated and expanded, with the ac-
tivities of two pediatricians making possible additional services. In-
service training was emphasized, thus making possible increased
availability of otological and ophthalmological services.
766-234 0-65-5

62 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Division of Veterinary Medicine

Following completion of the brucellosis testing in St. Croix, that
island was officially declared "brucellosis free." This makes the entire
U.S. Virgin Islands area one of the very few under the American flag
which is completely brucellosis free.
The extremely dry weather resulted in a decrease of many animal
diseases, including that of internal parasites. However, the control
measures were, intensified and treatment expanded.

Statistical data for fiscal year 1963-64
HOSPITAL STATISTICS

Knud Charles Ingeborg
Hansen Harwood Nesbitt
Memorial Memorial Clinic
Hospital Hospital

Bed capacity...-------- ---------- -------- --119 66 14
Newborn bassinets......----------- ------------------ 23 10 4
1. Total admission ......................------------------- 3,985 2,675 598
2. Total discharges......-----............-------------------- 3,871 2,456 536
3. Total deaths ................------------------- ----------- 114 82 18
4. Total inpatient-days-............. ----------------- 41, 805 21,532 3,602
5. Maximum daily census.. -------- -------------------------- 136 70 18
6. Minimum daily census -.... 87 35 3
7. Average daily census .------------. ---------------- ---------- 95 59 10
8. Total live births.........--------------------- 89 510 134
9. Newborn infant-days.......................---------------- 7,317 2,342 519
10. Average daily census-newborn.............-------------- 20 6.4 1.04
11. Stillbirths .............................-----------------------37 9 2
12. Premature births--..-..............------------------------... 78 4 13
13. Percentage of occupancy...--.....----------- ----------------. 92 89 70
14. Average length of stay-adults and children.....---------------- 8 8 6.5

STAFFING

Physicians ontaff _--..---.-----...- -----------.. 20 15 3
Graduate nurses .-.................----------------------.. 46 32 7
Practical nurses...-----...------------------------------------- 34 22 4
Aides and orderlies..-- .--------------------------------------. 46 30 3

GENERAL STATISTICS

Total surgical operations.... ..-------- ....--------------------- 973 743 316
Major-------------------------------------------------- 452 290 ------
Minor -------------------------------------- 521 453 316
Total laboratory examinations...................-----------71,902 46,026 18,114
Total blood transfusions .....------ -------------------- 727 164 13
Total X-ray examinations.....------- -------------------- 7,977 6,551 433
Total autopsies -. ------------- 18 23 5
Total outpatient clinic visits....--------.. ---------------------- 24656 26,00 10,886
Total emergency visits...------------ -------------------- 9,393 9,740 1,688

Department of Social Welfare

Personnel: 178 Operating appropriation: $1184,831

General

In fiscal year 1964, the department continued to make significant
progress in its Federal and insular activities. Construction of a
Youth Care Facility to replace present inadequate detention quarters
for minors on St. Thomas was begun. Final approval of an 81-unit
public housing project for the elderly was granted by the Public
Housing Administration and the first advance of Federal funds to
finance cost of planning has been requested. In keeping with the
department's emphasis on improved casework services for all of its
clients, a demonstration project of inservice training was carried out
in cooperation with officials of the Department of Health, Education,
and Welfare. Improvement and expansion of institutional facilities
for the aged on St. Thomas and St. Croix continued and work-incen-
tive programs and organized leisure-time activities were begun.
Efforts to remove the present limitation on Federal participation
in the Virgin Islands public assistance program were continued by
the department and the administration.

Division of Family Services

The outstanding achievement of the Family Services Division was
the initiation of a long-range staff development program. This ac-
tivity was part of a concerted effort to improve the quality of casework
services and to strengthen coordination between the Family Services
and Child Welfare Divisions.

Caseload distribution by districts

Caseload, Added during Closed during Caseload,
July 1, 1963 year year June 30,1964
Category
St. St. St. St. St. St. St. St.
Croix Thomas- Croix Thomas- Croix Thomas- Croix Thomas-
St. John St. John St. John St. John

DAA..------------- 285 203 28 16 49 33 264 186
Aid to dependent children... 207 79 67 62 65 48 209 93
Aid to the blind- -- --- 12 3 0 1 1 0 11 4
Aid to the disabled --....... 53 39 6 1 4 5 50 40
Medical assistance to the aged 265 211 47 24 38 13 271 225
Federal ...------ 822 535 148 104 157 99 805 548
General assistance to the aged. 94 68 30 29 30 28 94 69
Total ..----. ------.. 916 603 178 133 187 127 899 617

64 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Comparison of caseloads and expenditures

Caseload Number of Expenditures
persons aided
Category
1963 1964 1963 1964 1963 1964

DAA .------------ -- .--------------------. 488 540 488 450 $219,071.34 $220,611.30
Aid to dependent children ----- --------- 286 302 1,032 1,156 209,929.68 233,545.11
Aid to the blind -------.- ----------------- 15 15 15 15 6,382.25 6,270.25
Aid to the disabled ..----------------.--- 92 90 92 90 37,314.02 37,905.52
General assistance. ------- ------------- 162 163 162 163 63,015.43 62, 339.69
Medical assistance to the aged ----------- 476 496 476 496 29,176.04 25,738.92
Total.......-- ...- --------- ---------.. 1,519 1,516 2,265 2,370 564,888.76 586,410.79

Comparison of caseloads 1960-64

Category 1960 1961 1962 1963 1964

Old-age assistance..--- ----------------- -561 527 532 491 450
Aid to dependent children-..-.-------------------- 922 865 1,043 1,032 1,156
Aid to the blind .----... ------------------------ 19 19 16 15 15
Aid to the disabled .....----- .------------.. 107 98 96 92 90
Medical assistance to the aged--..........------------- ..--. 288 451 480 496
Total Federal .....-----------------------.... 1,609 1,797 2,138 2,110 2,207
General assistance....----.-------.--------------- 107 124 140 160 163
Grand total ......--------------- --------. 1,716 1,921 2,278 2,270 2,370

A total of 314 cases were closed and 311 opened. At the end of the
year, 108 reviews remained pending.
A total of 676 applications for assistance were received during the
year (St. Croix, 356; St. Thomas-St. John, 320). Those rejected as
ineligible totaled 177. At the end of the year, 61 remained pending.
During this 5-year period from 1960 to 1964, the average grant per
person has increased from $18.16 per month in June 1960 to $23.44
in June 1964.
A State plan on quality control of case actions applicable to federally
aided categories was initiated in November 1963. The successful im-
plementation of this new Federal program was possible in spite of
agency staff limitations. Plans for next year include establishment of
the position of quality control specialist.
By June 30, 1964, 496 persons had received benefits under the MAA
program (St. Croix, 271; St. Thomas-St. John, 225), as compared with
480 persons in 1963.

Division of Child Welfare

The division provides intensive casework services to children and
their families: living in their own homes, in foster family homes,
institutions, and adoptive homes. Cooperative casework services are
also provided to children and their families following release from
institutions. To improve quality of all services, the inservice training
program is being strengthened through improving methods in super-
vision, selection of caseload samples for teaching purposes, and coop-

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 65

erative work with the Division of Family Services on mutual staff
needs. The staff recruitment program has expanded through summer
employment of Virgin Islands college students. Development of staff
is constantly on review to attain the best qualified personnel for the
various services.

Total cost of assistance program, including administration, 1960-64

Category 1960 1961 1962 1963 1964

DAA..--.......------------.. -- $200,763.47 $222,690.29 $265,529.05 $258,920.32 $264,190.41
Aid to dependent children....... 182,509.79 213,981.57 256, 519. 50 262,120.81 310, 755.93
Aid to the blind.. ------------ 8,005. 86 7,941.73 8,041.52 7,900.20 7,692.05
Aid to the disabled---......----- 41,357.30 47,308. 70 47,049. 87 44,354.38 47,121. 53
Medical assistance.......-------- ....---------- 11, 523. 76 44, 540.86 46,047.07 49,972.65
Total Federal....- ..--.-- 432,636.42 503,446.05 621,680.80 619,342.78 679.732.57
General assistance ------------- 49,092. 69 60,047.77 76, 655. 70 89, 681.51 104, 581.80
Total Trust Funds..------..... 822.00 716. 00 1,132.75 1,180. 75 1,020.25
Emergency and special aid...... 5,777.57 763.06 19,742.53 6,717.55 8,746.04
Total local-..----.------. 55,692. 26 61,526. 83 97,530.98 97, 579.81 114,348.09
Grand total.......-----. 488, 328.68 564,972.88 719,211.78 716,922.59 794,080.66

Sharing of total cost of assistance program, including administration

Agency 1960 1961 1962 1963 1964

Federal-....------------- -----$216,116.23 $251,154.02 $308,317.31 $300,704.48 1 $337,619.03
Local --------------- 272,212.45 313,818.86 410,894.47 416,218.11 456,461.63
Total ...-..-------- 488,328. 68 564, 972.88 719, 211. 78 716,922.59 794,080.66

i Federal matching earned----... ..... .....----------------------------...------- $337, 619.03
Federal matching received..... ---. .... --------------- --------- 311,250.00

In 1963-64 casework services were provided to 1,011 children (St.
Croix, 576; St. Thomas-St. John, 435), as compared with 1,130 last
year and 906 the previous year. Below are tables showing the type
of services and distribution of caseload during the year:

Caseload distribution by district offices

St. Croix St. Thomas Total

Children receiving service, July 1, 1963---...--- --------- 427 293 720
Children accepted for service during year----------------------- 149 142 291
Children receiving service, June 30, 1964 ..--------------------.. 354 358 712
Total number of different children receiving services during the
year.--------... --------------------------- 576 435 1,011

Location of children receiving service, June 80, 1964

St. Croix St. Thomas Total

In home of parents.. ---------------- ----.- 148 208 356
In home of relatives---...... ------.---------------- 73 38 111
In boarding homes... ----- ------------------- 73 56 129
In free foster homes.. --------------- --------------------- 10 14 24
In adoptive homes------- -------6 13 19
In institutions.. --- ------- -------------------- 35 20 55
In juvenile center------------...................................--------------------........... 3 3
In detention center------------------0 6 6
Elsewhere......----.. ....------------ ---------------------.. 6 3 9
Total ---------.. --... ...----------------------- 354 358 712

66 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Foster Family Care
There has been a slight increase in the number of foster homes, but
a problem still exists in finding adequate facilities for care of teenagers.
Title 34, Section 104b, Virgin Islands Code, dated September 10,
1959, has been amended to include an increase in monthly foster care
board rates effective September 1, 1963. The fee for children in group
care facilities is now $68, and for children in foster family homes, $50.
A monthly average of 129 children (St. Croix, 72; St. Thomas, 57)
were in placement during the year. Expenditures increased to $73,-
139.39, as compared with $52,587.77 last year.

Insular Training Schools
The Insular Training Schools for Boys and Girls have continued to
achieve heartening improvement in services and in child and staff
morale. Care was provided for a total of 76 children (61 boys; 15
girls). Inservice training programs were provided through various
media, including group and individual conferences, staff meetings, and
inservice training seminars. Professional growth among staff was
observed in many areas.
The Department of Education provided academic services to the
schools through two full-time academic teachers. The Department
of Health also provided services through its Bureau of Mental Health.
Scouting activities increased and provided varied and meaningful
experiences for the boys. Under the summer recreational program,
the schools' team again participated in the junior baseball league under
the sponsorship of the Bureau of Recreation.

Detention Care
Because of the continuous problem of inadequate supervision of
youngsters in detention care, four counselors were employed to provide
constructive training and supervision.
Major rehabilitation of the cells was completed by the counselors
and boys.
Construction of the Youth Care Center on St. Thomas is in progress.
Upon completion in 1965, it will provide services to children in de-
tention, a new program of resident care for teenagers who are em-
ployed and/or need housing accommodations as a means of completing
high school, and facilities for group activities sponsored by the Youth
Commission. A similar center is urgently needed on St. Croix to
meet increasing demands for this service.
Ninety-seven children received detention care in St. Thomas.
On St. Croix the Juvenile Center provided care for a total of 28 boys.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 67

Other Services

During the year, the division processed 24 (St. Croix, 3; St. Thomas
21) adoption cases. The division screened 78 boys and 10 girls for
summer camp placements. There are now five day care centers (St.
Croix, 2; St. Thomas, 2; St. John, 1), and two family day care homes
in St. Croix. An average of 77 children per month (St. Croix, 35;
St. Thomas, 30; St. John, 12) ranging from 2 months to 41/2 years
were under care. Probation services were provided to 190 children
(St. Croix, 86; St. Thomas, 104) appearing in the juvenile courts.
The Citizens' Advisory Commission on Youth continues to give guid-
ance and leadership to a variety of programs for children and youth
of the Virgin Islands.
The child welfare program is summarized in the following tables:

Cost of child welfare program

Insular St. Croix St. Thomas VirginIslands

Local funds
Child welfare services--------------------------------- $20,599.96 $31,476.10 $52,076.06
Foster home payments. ----... ------. -------- 44,469.15 28,670.24 73,139.39
Insular training schools-------------------- $154,968.63 -------------------------- 154,968.63
Day care centers ..------.------. ----- --------- 6,757.00 14,608.61 21,365.61
Federal funds
Federalfunds 154,968.63 71,826.11 74,754.95 301,549.69
Child welfare services and supervision --------. 17,538.34 31,230.20 40,398.70 89,167.24
Grand total-...---------------- ..---- 172,506.97 103,056.31 115,153.65 390,716.93

Cost of child welfare program, 1960-64

1960 1961 1962 1963 1964

Local funds
Child welfare services..------------- --$16,976.96 $24,295.74 $26,349.87 $20,465.77 $52,076.06
Foster home payments..-- -------- 34,386.30 48,060.60 48,517.36 52,587.77 73,139.39
Insular training schools ...----.---.... 83,536.74 100,052.04 124,293.06 111,949.69 154,968.63
Day care centers -.----------.. ----- -- 3,374.95 11,980.51 12,344.55 13,342.88 21,365.61
Total...------------------------ 138,274.95 184,388.89 211,504.84 198,346.11 301,549.69
Federal funds
Child welfare services ....--------------.. 49,442. 59 50,707.72 56,985.97 71,605.05 89,167. 24
Grandtotal...- ------------ 187,717.54 235,096.61 268,490.81 269,951.16 390,716.93

Division of Institutions and Special Programs

Homes for the aged.-The basic philosophy underlying the oper-
ation of homes for the aged in the Virgin Islands recognizes our senior
citizens as individuals, with varied educational and cultural back-
grounds, with varied needs, desires, and motivations. Great emphasis
is placed on development of appropriate programs in accord with
individual needs and capacities.

68 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

St. Thomas.-At the Queen Louise Home there were 20 residents
(7 men, 13 women) at the beginning of the year. During the year,
there were 6 admissions (4 men, 2 women) and 3 deaths (2 men and 1
woman). At yearend, there were 23 persons in residence (9 men, 14
women). During the year, a nurse-supervisor, 3 nurse aides, a
food service worker, and a laundress were added to the staff. An
activities program and better medical coverage remain prime needs
of the home.
At the Corneiro Home, there were 23 residents (8 men, 15 women).
During the year, there were 9 admissions (2 men, 7 women), 3 deaths
(3 women), and 1 transfer to the Queen Louise Home. At the end
of the year there were 28 residents (11 men and 17 women).
St. Croix.-At the Aldershville Home, there were 28 residents (12
men and 16 women) at the beginning of the year. During the year
there were 2 admissions, 2 deaths, and at the end of the year there were
28 residents.
The Herbert H. Grigg Home is a dual-function institution providing
custodial and nursing care. During the year, the home provided
42,705 service-days of care. The average census was 117 residents
(58 men, 59 women). Included in this number were 10 residents (3
men, 7 women) from St. Thomas. Thirty residents (14 men, 16
women) were admitted during the year. Twenty-six residents (12
men, 14 women) died. At the end of the year there were 121 residents.
Many residents continued to demonstrate their independence and de-
sire to help themselves. This was amply demonstrated by the active
participation of 15 residents in an incentive work program.

Special Programs
Cancer care.-Virgin Islands patients continue to receive full serv-
ices at the Puerto Rico Cancer League "La Liga Puertorriquena
Contra el Cancer." At the beginning of the year, there were 20 active
cases; and 44 active cases at year's end.
Services to the mentally ill.-Limited casework service is provided to
mental patients while they are at St. Elizabeth's Hospital. Release
plans, escort service on return home, and aftercare service to aid their
readjustment to the community are provided. During the year 15
studies were completed. Four patients (two St. Croix and two St.
Thomas) were returned home.
Surplus foods distribution program.-The department was again
highly commended by the U.S. Department of Agriculture for main-
taining excellence in certification, cancellation, sanitation, storage,
recordkeeping, inventory controls, and distribution. Distribution was
made from nine centers: St. Croix, six; St. Thomas, one; and St.
John, two. At the beginning of the year there were 1,422 eligible

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 69

families (St. Thomas-St. John, 544; St. Croix 878) representing
2,660 persons (St. Thomas-St. John, 850; St. Croix, 1,810). At year's
end, the caseload stood at 1,409 eligible families (St. Thomas-St. John,
585; St. Croix, 824) representing 3,140 persons (St. Thomas-St. John,
1,132; St. Croix, 2,008).
The following chart shows the amount of commodities distributed
during the year:

Commodities Distributed Retail
(by pound) value

Butter........ ------------------ -------------..----------.. 2862 $25,436.25
Rice....... -------------------. ----- ------------. 125,153 18,772. 95
Meal ...- --------------- ----------------------.------- 84,330 8,433.00
Flour-----.....- ----. ----------------------- ----------. 3,255 8,325.50
Milk .........................- -----------------------....-----. 136,755 129,917.25
Lard ...---------..... .................------------. 54,300 13,575.00
Beans ..---- ---- -------------------------------. 62,449M 15,612.31
Rolled wheat-----..... ----------.---------------. 59,199 20,719.65
Cheese........------------------------------------------ 52,692 42,154.00
Chopped meat.......----...........-------------.... ----- .---... 57,721% 37,518.89
Dry eggs....------.. ------------........ ------------------.------.. 552 828.00
Canned beef..--...-----......................------------------ .... 866% 56,290.00
Total..................------------ -----------.... -------------- 745,534 377,582.80

Community Chest.-The 1963-64 campaign was opened on Octo-
ber 15, 1963, with a goal of $15,000. The drive was highly successful,
with pledges and contributions totaling $16,153.55.

Expenditures

The growth of the Department of Social Welfare may be summa-
rized in the following chart, which shows appropriations by the local
legislature for social welfare over the past 5 fiscal years:

Operating budget-local appropriations

1960 1961 1962 1963 1964

Office of the commissioner..............---------- $27,000 $29,977 $30,032 $54,286 $65,363
Bureau of Business Management......------.....-- 41,628 45,614 67,039 79,946 83,800
Division of Family Services..----- -------. 254,558 308,558 376,781 452,600 367,039
Division ofChildWelfare-...........----------- 138,275 172,487 199,163 215,349 259,961
Division of Institutions and Special Programs....... 70,600 91,030 192,142 121,545 205,895
Herbert Grigg Home..........---- ............----- ---------.......... .----.. 174,770 207, 773
Total-...........-----....--...... .--------- 532,061 647,666 865,157 1,098,496 1,189,831

Department of Commerce

Personnel: 84 Operating appropriation: $977,651
During the 1963-64 fiscal year, the Department of Commerce con-
tinued its aggressive efforts on behalf of the economic development
of the Virgin Islands.

Economy Sets New Records
The accelerated development program undertaken by the depart-
ment helped supply conditions which resulted in new records set by
the islands' economy during the fiscal year.
Tourist expenditures again set an all-time high. During fiscal
1964, this No. 1 industry of the islands reached a volume of $48 million,
as compared with $41,070,000 in fiscal 1963 and $35,145,000 in fiscal
1962.
The economic health of the community is attested to by a new record
in per capital income. During fiscal 1964, average personal income
for Virgin Islanders was $1,761, as compared with $1,543 in fiscal
1963. The present rate is almost double that of 1959, when per
capital income was $986. Thus, for the first time, Virgin Islanders
are enjoying an income level approaching that of the mainland.
Bank assets in the islands reached a new high of $62.8 million in
fiscal 1964, as compared with $51.7 million in the previous year, an
increase of 21 percent. Total bank loans rose from $32.2 million in
fiscal 1962 to an alltime peak of $38.5 million in fiscal 1964.

Advertising Activities
The advertising program which had been in force for the past 3
years was continued for most of fiscal 1964. Toward the latter part
of the year, however, the department studied the results which had
been achieved, and its decision was that a change in advertising agency
should be made.
Competitive bidding for handling of the Virgin Islands advertising
account was invited. A committee was formed, composed of depart-
ment executives and persons representing the tourist industry of the
islands, to review presentations and select a new agency. The selec-
tion would be made on the basis of responsibility for both improving

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 71

the "tourism image" of the Virgin Islands and promotion of the
Virgin Islands rums.

Rum Council Program
National advertising and sales promotion efforts of the Rum Council
continued to be administered through the Department of Commerce
in cooperation with the previous advertising agency.
The key problem in this effort continued to be that of identifying
Virgin Island rums to the dealer and to the consumer at the point of
sale. This is a built-in problem which rises from the fact that the
Virgin Islands exports primarily bulk rum. The rum then is bottled
under numerous private-brand labels. To help offset this problem, a
Virgin Islands Sun Symbol was created to foster identification of
the various labels. A shelf marker also was provided to retailers
as an aid to the consumer in selecting Virgin Islands rums. Some
progress in identification was made during fiscal 1964.

Rum Shipments Affected by Inventories
Shipments of rum to the mainland were off slightly during fiscal
1964. A total of 827,264 proof gallons was exported to the States,
a reduction of 8,701 from fiscal 1963. This was due to overstocking
by warehouses.
Actual movement of Virgin Islands rums to the consumer increased
substantially, as evidenced by a significant gain of $800,609 in Federal
excise taxes collected, a rise of 10 percent. In fiscal 1964, excise taxes
returned to the Virgin Islands from sales in the States amounted to
$8.4 million.

Industrial Development Fostered
The Division of Trade and Industry continued its function of sup-
plying information and assistance to new businesses interested in
settling in the Virgin Islands.
Some 49 firms discussed with the division the feasibility of locating
in the islands to take advantage of the local industrial incentive pro-
gram and the privilege of exporting their products to the mainland
duty free. Most of these firms decided to defer their decisions, pend-
ing the disposition of proposed legislation in the Congress which might
cause sweeping changes in the duty-free status of products manu-
factured in the Virgin Islands for export to the States.
Despite the uncertainty with regard to tariff status, five new indus-
tries catering to the export trade were licensed. These include watch
assembly, fiber-glass fabrication, pharmaceuticals, resort sports wear,

72 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

power equipment, and costume jewelry. Three industries catering to
local trade also were established.
Despite the static situation in industrial plant expansion, production
was up 19.4 percent.

External Trade Increases
Exports of Virgin Islands products to the U.S. mainland and for-
eign countries were the highest in history, reaching a total of $22,638,-
030, an increase of 19.4 percent. However, imports into the Virgin
Islands from the mainland and abroad reached a peak of $76 million.
Thus, it is apparent that the islands suffers from an extremely adverse
balance of trade in manufactured products, most of which must be
compensated for by the flourishing tourist industry and by individual
income earned by local residents through investment and activities
elsewhere.

Earnings of Workers Increase
Wages of workers in manufacturing industries continued to increase.
On November 3, 1963, minimum wage scales were raised by an average
of 10 percent. Going wages, however, are substantially above the
minimum levels established by law. This is probably caused by com-
petition between employers of skilled and semiskilled labor in cate-
gories where there is a shortage of workers.

Construction Industry Bounces Back
The construction industry in the islands experienced a decline
after April 1963 with the completion of two large Federal housing
projects. However, the construction of new private housing, hotels
and hotel additions, and other commercial buildings has sparked a
speedy recovery.

Drought Affects Agriculture
Sever and prolonged drought conditions during the first 6 months
of 1964 seriously affected the livestock industry, resulting in a decline
in production of fresh milk. The problem was alleviated to a degree
by Federal assistance which was proffered when the President de-
clared the Virgin Islands to be a disaster area, thus making feed
available.
Despite the drought, other sectors of agriculture showed appreciable
gains. Excellent rainfall the previous year resulted in a record sugar-
cane crop on St. Croix. A total of 15,540 tons of raw sugar was pro-
duced, as compared with 15,354 the previous year. Food crop produc-
tion also showed significant progress, as small farmers showed in-

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 73

creased interest in the possibilities of higher profits from export of
vegetables to the winter market on the mainland.

Record Number of Tourists
The Visitors Bureau of the Department of Commerce reports that
a total of 448,165 visitors came to the Virgin Islands during fiscal
1964, as compared with 331,249 the previous year.
The number of cruise ship visits again increased significantly, from
169 in fiscal 1963 to 261 in fiscal 1964. Of these 261 ships, 31 visited
St. Croix, an increase of 27 visits for that island. The number of
cruise ship passengers to St. Thomas rose from 65,709 to 99,125, up
more than 50 percent. Though on a smaller base, the number of
cruise ship passengers to St. Croix was up almost 600 percent, from
1,864 in fiscal 1963 to 11,500 in fiscal 1964.
Distribution of promotional material through the Visitors Bureau
offices in New York City, San Juan, Christiansted, and Charlotte
Amalie reached a total of 589,500 pieces. This material consisted
primarily of hotel rate sheets, pertinent fact booklets, and pamphlets
concerning tourist attractions.
Among the 448,165 visitors to the islands were 23 special groups.
These included organizations such as the International Association of
Fire Chiefs, Congressional Secretaries, and the State of Maine Plan-
ning and Development Agencies, as well as parties of travel agents,
airline and steamship personnel, and numerous sales incentive groups
from large industrial companies.

Marine and Aviation Services
This division of the Department of Commerce supervises all marine
activities in Virgin Islands waters and operates government-owned
docks and wharves. It also is in charge of the operation of the Alex-
ander Hamilton Airport in St. Croix. With the liquidation of the air-
port responsibility of the Virgin Islands Corporation in St. Thomas, it
is expected that administration of the Harry S. Truman Airport of
Charlotte Amalie will be transferred to the division.
During the fiscal year 1964, there was a substantial increase in both
marine and aviation traffic in the Virgin Islands. The deep water pier
at Frederiksted, St. Croix, saw a heavy expansion of use, with an
average of 30 arrivals per month. Sometimes, three vessels per day
tied up at the pier.
The new pier in Christiansted Harbor was commissioned and its
maritime zone established.
Dredging of the entrance channel to the project site of Harvey
Alumina Virgin Islands, Inc., on St. Croix showed steady progress,

74 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

and a request has been made for appropriate aids to navigation in
this area.
Lights and other navigational aids were being installed in the
reaches of Pillsbury Sound between St. Thomas, St. John, and the
smaller American cays. This work was nearing completion by the
end of fiscal 1964.
Harbor and airport statistics
St. Croix (ports of Christiansted and Frederiksted) :
Arrivals ----------------------- -------------------- 1,389
Departures -------------------------------_ 1,388
Net registered tonnage of arrivals--------------------.. -- 647, 872
Gross Income from pilotage and pier dues ----------------- $30, 266. 20
Motorboat certificates------------------------- ---- 69
Naval vessels visiting -----------------------------------16
St. Thomas (port of Charlotte Amalie) : 2
Arrivals --------------------------------------- --.-- 611
Departures ----------- -----_------------------ 611
Net registered tonnage of arrivals------------------------- 5,947,535
Revenue from pilotage-------------------------------------$51, 036. 00
Motorboat certificates--------------------------------------- 106
Government ships visiting------------------- ------- 64
St. Croix (Alexander Hamilton Airport):
Landings ......__ ______------ -------------------__ ---_ 10,823
Passengers in ___ __---------- -----------------------_ 147,062
Passengers out---.-------------_----------_ --------_ 146,688
Total airport revenue-- ------------_---------__ $96,188.64
St. Thomas (Harry S. Truman Airport) :
Landings ---......------------ ---------_ ----------___ 18,487
Passengers In .---------- ___------------- ------_----_ 272, 029
Passengers out-------- ... -----__--------- 273,009
Total airport revenues -------------------------------_ $57, 576. 00

'These figures include all ships and vessels including those under 100 tons gross.
2 These figures include only ships over 100 tons gross.

Department, of Agriculture, and Labor

Personnel: 82 Operating appropriation: $389,199
Division of Agriculture
The major activity of this division for fiscal 1964 continued to be
promotion of the food production program. In this connection, farm
operating materials and services were provided to the community,
particularly on St. Croix, where food crops may be grown more ef-
fectively than on the other two islands. Seeds, plants, insecticides,
and fertilizers were distributed to growers under various programs.
Also, land preparation and technical services were made available.
There was a significant increase in demand for these materials and
services.
In St. Croix, the first phase of a pilot program for developing food
crop marketing was started at the department's new center at Lower
Love. Mainland buyers who participated in the program agreed that
"it proved that crops can be successfully grown on St. Croix and
marketed abroad."
Some problems resulted from poorly adapted seed supplied by one
contract buyer and the late arrival of important machinery. However,
85,448 pounds of vegetables were distributed for market development,
some 14,000 pounds above earlier estimates. Vegetables marketed
were 19,011 pounds of tomatoes, 2,938 pounds of okra, 28,874 pounds
of peppers, 25,991 pounds of cucumbers, 4,100 pounds of bananas, 603
pounds of sweetpotatoes, and 3,931 pounds of yams.
Success of the food crop pilot program indicates that export of
vegetables from St. Croix will be an important element in the change
from a sugarcane economy to more diversified agricultural enterprises.
It is now generally felt that the answer to many marketing problems
will be found in the creation of farmer cooperatives. Immediate needs
for such a development would be a fully equipped packinghouse for
crops, additional farm machinery, plus additional personnel and
operating funds.
Meat production was improved significantly with the beginning of
operations at the new St. Croix Abattoir in August 1963. During the
fiscal year, the following animals were slaughtered: 1,466 cattle, 684
swine, 110 goats, and 490 sheep, making a total of 2,750.
Other activities of the Division of Agriculture included beautifica-
tion of parks and the addition of an outboard-motor lifeboat at Cramer
Park on St. Croix.

76 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

With the arrival of two new bulldozers, an important increase in
soil conservation services is anticipated. Already, 16 dams have been
constructed, with a water storage capacity of 4,377,000 gallons.

mainland. Above, Gov. Ralph M. Paiewonsky is shown at the controls of
tractor. Farm cooperatives are being planned to assist small farmers in raising,
packing, and marketing their produce.

Division of Labor

Workmen's compensation cases for the fiscal year involved 900 re-
ported injuries in the Virgin Islands. Of that total, 728 cases were
processed and completed, including some cases carried over from the
previous year. In the adjustment of these cases, 1,260 awards were
made, totaling $122,646.88. This figure was distributed as follows:
Temporary total disability --------------- $46, 520. 49
Permanent total disability ---------------------7, 529.18
Permanent partial disability -----------------25, 697. 27
Death compensation --------------------------12, 396. 30
Medical costs, including transportation and fees--- 30, 503.64

122, 646. 88

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 77

Improvements were noted during the year in compliance with re-
spect to safe working conditions. Industrial safety regulations are
enforced through the work of two inspectors, one on St. Croix and
the other on St. Thomas.
In the administration of the Fair Labor Standards Act, a total of
$15,204.13 in back wages and overtime compensation was collected
from employers. The beneficiaries were practically all nonresidents.
During the year, the Insular Wage Board was reorganized to study
all industries. One group of hearings was held, covering the following
categories: air transportation; banking, real estate, accounting, and
insurance; alcoholic beverages and industrial alcohol; bay rum and
other toilet preparations; communications and public utilities; whole-
salers; jewelry, pen thermometer, industrial belting, and miscellaneous
metal products; shipping, marine transportation, ship and boat build-
ing; and textiles.
Hearings were conducted on both St. Croix and St. Thomas. At
the close of the fiscal year, a decision regarding minimum wages still
was pending.
New legislation was enacted during the year for the protection of
resident workers against alien competition, as well as for the regulation
of child labor. Another act was passed designed to eliminate discrimi-
nation in employment based on sex. The motive of this act is to en-
courage and foster, to the fullest practicable extent, the employment
of all properly qualified persons, regardless of age, race, creed, color,
sex, national origin, or ancestry. Under the provisions of the Labor
Relations Act, 10 cases were taken up in which the Virgin Islands
Labor Union and the St. Croix Labor Union were certified as bargain-
ing representatives. One other case involved a dispute under the
Unfair Labor Practices Act.

Division of Apprenticeship and Training
This activity was reactivated with the assistance of counsel from the
State supervisor of the Bureau of Apprenticeship and Training of
Maine. Employers were visited and expressed willingness to co-
operate. Plans were made for aptitude tests to be administered in
the schools under the supervision of the Employment Service to deter-
mine what trades various applicants are best suited to pursue.
A total of 24 new applications for apprenticeship training was re-
ceived during the fiscal year. There were four placements, none of
which was active at the end of the year.

Office of Veterans Affairs
Assistance and information were furnished to veterans and their
dependents with regard to their rights and privileges under existing
766-234 0-65-6

78 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

laws. The local office worked closely with Veterans' Administration
officials from Puerto Rico with regard to medical care, loans, and other
benefits for Virgin Islands veterans of the armed services.
All in all, some 2,100 items were handled with veterans, servicemen
and their dependents, as well as with representatives of the various
interested local and Federal agencies.

Wildlife

During the fiscal year, hunting licenses were issued as follows:

Bird Deer

St. Thomas.................................................................--------------------------------------------... 57 55
St. Crolx............---- ................-------------------------. 50 7

Fiscal Report

Funds for operation and various activities of the Department of
Agriculture and Labor were provided by appropriations from the
general fund of the Virgin Islands Government. Following is a
breakdown of expenditures:
Personal services---------------------------- $261, 654. 65
FICA and retirement---------------------------- 14, 658. 16
Equipment ---------------------------------- 10,774.30
Materials, supplies, and Contractual services------- 872.35
Contribution to special conservation fund------------ 23, 000. 00
Contractual services of manager of abattoir, St. Croix- 9, 999. 96
All other expenses--- ------------------------ 61, 188. 11

382,147. 53

Virgin Islands Employment

Security Agency

Personnel: 45 Operating appropriation: $289,455

Employment Service
The Virgin Islands have been and continue to be an area of high
labor demand. Employment requirements of industry cannot be met
by the local labor supply. Consequently, the local labor force must be
supplemented by workers from neighboring islands and other areas.
Nonagricultural placements for the fiscal year numbered 1,402. The
comparative distribution by major occupational groups and certifica-
tion of foreign nationals for nonagricultural job openings for fiscal
years 1963 and 1964 are given below:
Placements Foreign nationals
1963 1964 1963 1964
Total---..-.----.... --.. -.------------- ----- 1,450 1,402 13,349 16,016
Occupational groups:
Professional and clerical...---.------------.-. 325 317 140 269
Service -....------- ------------ -- ---------- 448 466 5,300 6,644
Skilled and semi-skilled. ---------------- ------ 363 382 2,687 3,369
Unskilled and other ..------. --------..----- 314 237 5,222 5,734

Placement of local jobseekers shows a drop of 48, or a decrease of
3.3 percent in fiscal 1964 as compared with fiscal 1963. For the same
period, the certification of foreign nationals for employment climbed
by 2,667, or 19.9 percent.
Certification of foreign national for agricultural jobs totaled 1,467
for fiscal 1964. Most of these workers were employed in the harvesting
of sugarcane on St. Croix.

Reports and Analysis and Labor Market Information
The Employment Security Agency cooperated in many Federal and
local government projects to develop pertinent information dealing
with the labor market and the status of workers in the Virgin Islands.
Total wages and total employment in major industrial sectors were
tabulated. Data useful in studying the migratory trends of the popu-
lation was furnished to the New York University educational project
for use in long-range projections of educational requirements for the
islands. The agency collaborated with the economic consultant to

80 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

the Governor to provide labor market, employment, and wage data for
use in connection with a publication on the economy of the Virgin
Islands. Similar information, specifically keyed to housing problems,
was provided to members of the study team from the Public Housing
Administration in connection with a study of middle-income housing
requirements. Relevant data on labor also were developed for the
economist of the Office of Territories for use in support of the retention
of the $200 customs exemption for the Virgin Islands.

Counseling, Testing, and Related Services
Occupational testing, together with employment counseling and
career guidance, continues to be the most effective tool for the selection
and referral of job applicants.
A total of 565 tests were administered for occupational purposes
during fiscal 1964. These included 334 general aptitude tests, 51
specific aptitude tests, and 180 proficiency tests.
Counseling and career guidance were used to assist jobseekers in
the appraisal of their vocational potentialities and limitations. These
programs also were found to be of aid in job adjustment problems. A
total of 887 counseling interviews were held during the year.

Farm Placement Service
Employment in agriculture continued to decline. In addition to
the adverse weather, the transfer of former agricultural acreage to
industrial and residential use tended to reduce the number of jobs.
Because of the low wages and adverse working conditions, American
workers are less attracted to farmwork than to other more rewarding
job opportunities. All indications are that this pattern will continue.
Hence, most of the agricultural work force has been made up of foreign
workers. However, the need for these workers shows a steady decline.
Following is a chart showing the trend for the past 5 fiscal years:
Agricultural certifications for foreign nationals
Fiscal year: Total
1960-.-----.------_-------------------_ 2, 222
1961------.---- ------------------ 1, 861
1962 --------------------------- 1, 553
1963-------------------------------_ 1, 505
1964 --- -----------__.__-_____--__ 1,467

Special Projects Under Federal Grant
Thirteen projects were approved and funded under the Manpower
Development and Training Act, making a total of 17 approved projects
since the program began. Five of these new training projects were
approved for St. Croix, which had no projects in operation for the

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 81

previous fiscal year. These included such courses as clerk-typist,
cosmetologist, and food service and restaurant worker.

Selective Service Rejectee Program
Lists of young men found unacceptable for military service were
referred to the Employment Security Agency by the Selective Service
offices. Counseling, testing, and placement services were made avail-
able to this group. Thirteen percent of those receiving letters from
the Selective Services offices inviting them to avail themselves of these
services reported to the St. Thomas office of this agency for information
and assistance.

Unemployment Insurance Service
On January 1, 1964, the final phase of our Virgin Islands unemploy-
ment insurance activity, that benefit payments, became effective.
Local workers who were eligible were paid their first benefits for
work in covered employment.
With regard to interstate claims, Virgin Islanders or persons who
had worked in the Virgin Islands were eligible, as of January 1, 1964,
to file for payment of benefits based on their Virgin Islands wages in
States with which the islands have reciprocal agreements.
Through the unemployment insurance programs, the agency has
helped to maintain the income levels of temporarily unemployed work-
ers, as well as to keep their skills available for employers.
Benefit payments for the fiscal year were made under three pro-
grams: Unemployment Insurance for the Virgin Islands (UIVI),
Unemployment Compensation for Federal Employees (UCFE), and
Unemployment Compensation for Ex-servicemen (UCX). The fol-
lowing chart shows a breakdown of the number of persons receiving
benefits under each program:
Statistical summary of UI activities (Benefit Payment Section)

VIUI UCFE UCX
Initial claims ---------------------------------................. 450 28 10
Weeks claimed.------ -------------- --------.. 1,028 246 37
Weeks compensated.-----. --.------------------------.. 519 192 13
Total amount compensated. ----- -------------................. $10,836 $5,249 $416
Total amount compensated under all programs ...- ------------.... $16, 01

Fiscal Summary
The Virgin Islands Employment Service budget for fiscal 1964,
including the Manpower Development Training Program, amounted
to $172,856.70, allotted as follows:
Personal services___--------------------------__ $115, 925.97
Nonpersonal services----------------__------ 56, 930. 73

82 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

The Virgin Islands Unemployment Insurance Service budget for
fiscal 1964 amounted to $116,598.37, allotted as follows:
Personal services------------------------------ $62, 158. 11
Nonpersonal services--------------------------- 54, 440.26
The total budget for the Virgin Islands Employment Security
Agency for fiscal 1964 was $289,455.07.

Department of Public Works

Personnel: Operating appropriation: $3, 04, 856. 83
Permanent: 653 Special projects: 4551 825.98
Per diem: 553 Matching fund: 3,355,762.39
Accelerated public works: 257,540. 5
Foreword
Sharply increased demand created a new record workload for the
Department of Public Works in continuing its basic services for fiscal
1964. These services include street and road maintenance, garbage
and trash disposal, provision of water, maintenance of water and sewer
systems, and the construction and repair of governmental buildings
and structures. A total of $3,229,600 was obligated for these func-
tions, as compared with an expenditure of $2,617,862 in fiscal 1963.
The increase in demands for these basic services was due in part to
population growth. However, the accelerated construction program
for commercial and residential buildings was responsible for a large
share of the rise. It is estimated that expenditures for building in the
islands increased from $13,847,199 in fiscal 1963 to $19,021,227 in fiscal
1964.

Street Cleaning and Garbage Removal Service
Areas covered by garbage and trash pickup services were significant-
ly expanded during the year. Despite the record workload and limi-
tations of equipment, there was marked improvement in street cleaning
and garbage removal. A total of 321,076 cubic yards of garbage was
disposed of in fiscal 1964, as compared with 154,942 cubic yards in the
previous year.

Water Supply
Drought conditions and increased consumption of potable water
created critical supply conditions on several occasions during the
fiscal year, especially on St. Thomas, where the tourist industry relies
heavily on the public water system.
Rainfall in St. Thomas was only 30.45 inches, 14.18 below the
average. This aggravated the situation, especially for the many
homes and businesses which still rely on their own cisterns, but had
to supplement the natural supply from public sources.

84 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

During the year, 135,706,450 gallons of water were hauled to St.
Thomas from Puerto Rico by barge, almost double the amount received
in this manner the previous year. The water desalination plant,
operated by the Virgin Islands Corporation, provided 96,311,400
gallons. Thus a total of 232,017,850 gallons of potable water were
distributed during the year. This is 43,418,450 gallons more than
during the previous fiscal year.
In St. Croix, 88,840,000 gallons were drawn from wells and dis-
tributed to consumers. This island enjoys heavier rainfall, and this
natural source still represents a large proportion of the supply.
During the year, two additional wells were connected to the public
system.
St. John relies completely on cisterns, except as the one large hotel
which has its own desalination plant. It was necessary to haul several
bargeloads of water to this island to supplement the natural supply
which was affected severely by drought conditions.
Even when the storage supply of water was adequate, distribution
was hampered by overtaxed mains and pumping facilities. However,
construction of new pipelines and pumping stations was rushed, in an
effort to reach completion before the heavy consumption period of
the next tourist season.
It is expected that the water consumption on St. Thomas may be
double the 1964 record during fiscal 1965. Nevertheless, the depart-
ment is confident that the demand will be met with the completion of
new distribution facilities on the island and the addition of new
outloading installations in Puerto Rico and expanded unloading facil-
ities in Charlotte Amalie.
The impact of the tourist industry on water consumption is demon-
strated by the fact that St. Thomas' largest hotel used more than 13
million gallons of potable water during fiscal 1964.

Matching Fund Programs
New construction, financed under the matching fund program, in-
cluded 36 force-account projects built by the department for a total
of $1,077,440. Also, the department was responsible for design,
engineering, and administration of 19 contracted projects with a total
value of $3,039,000. Most prominent among these were the continued
St. Thomas Harbor improvement project, Crown Bay reclamation,
and additions to Charlotte Amalie High School, all in St. Thomas;
elementary school construction and extension of the Christiansted
water system, St. Croix; and extensive road improvement and paving
on St. John.
The first phase of the Crown Bay harbor development project in St.

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 85

Thomas was completed in March 1964 at a cost of $208,875. This
consisted of deepening and widening the harbor for greater maneuver-
ability of larger vessels. The dredged material was pumped to Crown
Bay, a distance of 9,000 feet, where it was placed behind a new steel
sheeterpile bulkhead. This provided an additional wharf length of
2,400 feet for medium-draft cargo vessels and created 35 acres of
reclaimed land. It is planned to continue the bulkhead and fill west-
ward for an additional 1,400 feet, thus creating another 15 acres of
reclaimed land, which may be made available for industrial and
commercial purposes.

Accelerated Public Works Programs
Two projects, with a total value of $194,556, were completed during
fiscal 1964 under the accelerated public works program. In St.
Thomas this work included the covering of open gutters, improvement
of storm drainage facilities, and the reconstruction of streets and
sidewalks in Charlotte Amalie. The chief project under this program
for St. Croix was construction of water facilities to serve the town of
Christiansted.
A $315,000 project for the construction of a new pumping plant and
additional water mains in Charlotte Amalie, St. Thomas, was brought
to 72 percent completion by year's end.

Public works statistics
UTILITIES AND INSPECTION

1960 1961 1962 1963 1964 0
Building permits Number estimated con- Number estimated con- Number estimated con- Number estimated con- Number estimated coh- 0
struction costs struction costs struction costs struction costs struction costs H

O
St. Croix .............---------...... 210 $2, 288,719.00 224 $3,019,441.00 271 $4,176,536.00 335 $4,795,744.00 425 $6,100,303. 00 C)
St. Thomas and St. John....----. 378 5,190,527.00 460 6,363,482.00 506 7,017,972.00 598 9,051,455.00 624 12,920,924.00

NUMBER OF INSTALLATION PERMITS

1960 1961 1962 1963 1964

Sanitary installation permits-St. Thomas........................----------------------- 135 187 324 698 256
Sewer connection permits-St. Thomas -..-----.................... ------------......... 68 72 132 100 125
Water connection permits-St. Thomas......-------..... ------------ --- --------- 19 42 91 52 75
Electric installation permits-St. Croix-.....................------------ --- ------........ 299 343 470 563 514 0
Electric installation permits-St. Thomas and St. John.-..--................. .------------. 311 302 422 375 400
O
NUMBER OF PROPERTIES CONNECTED TO SALT WATER SYSTEM

St. Croix....------.................--------------------------------------- --- ---. 16 16 16 16 43
St. Thomas--....--------.--------.-.-----------------........ -------------- --- -- 326 382 430 482 508 t
St. Thomas-new connections ---...---........................ ------------------------- -- 19 91 52 26

NUMBER OF POTABLE WATER CONNECTIONS

St. Croix-new connections------------------------------------------------------------- 70 79 78 133 91
St. Thomas-new connections --...............................----------------- --- ----- 17 68 172 77 75
Total number of potable water connections, St. Thomas and St. Croix .....-- -------.. --.... 727 864 1016 1226 1392

POTABLE WATER CONSUMPTION

Potable water pumped from wells-St. Crox ....-----------....... ----------------- gallons- 3,503,928 47.628,28
Potable water brought in by barges .---.--------------- ----...------ do 67,740,800 89,103,300
Potable water hauled by trucks to consumers -------------------------------do-- 25,785 625, 500
Potable water used by consumers by meters-----------.. .. -------------------do..-- 87,400,006 90,475,685
Average daily consumption-St. Thomas---------------...-------------------do..- 220.000 250,000
Average daily consumption-St. Croix.. ------------------------------------do-- 120,000 130,516
Potable water received from distillation plant -------- ---------------------------do ---------------------------

48,501,765, 82,088,216 88,840,000 0
84,354,300 75,914,600 135,706,450 08
1,573,000. 2,353,000 24,100,500
103,165.400 127,328,160 151,479,488 0
300,000 400,000 700,000 08
132,880 225,176 243,397 '-
25,671,700 113,684,800 96,211,400
0

GARBAGE AND RUBBISH HAULED

St. Thomas --------------------------------- ---- ubic yards- 43.220 39,990 98,008 104,800 269,076 M
St. Croix ...----- -----------------------------------------------------------do.... 22,950 40,896 33,058 50,142 52,000

NITE SOIL REMOVAL C

St. Thomas ...------ -- ---.---------------------------------------gallons 479,520 458,336 378,950 383,320 434,863
Do -------------------------------------------------------cans in use__00 900 90 0 900 900 877
t. Croix------------------- ---- ----- ----gallons- 254,280 242,986 231,000 164,000 152,000
Do a......................... ..--------. .----cans in use__ 489 433 375 328 304
Do--------------------------------------------------------------can-in-use- 489 433 575 328 304
O
MILES OF ROADS MAINTAINED

St. Croix -...-....................... -------------- ------------------------- 157.2 157.2 157.2 157.2 157 74
St. Thomas....... ----------------------------------------------------------------- 90 90 90 90 90
St. John---.---.- --------------------------------------------------------------- 40 40 40 40 40

MILES OF STREETS MAINTAINED

St. Croix---------------------- ------------------ -------------------------------- 16.4 16.4 16.4 16.4 16.4
16.4 ] 16.4 16.4 16.4 16.4 ,
St. Thomas and St. John ------........... ------------------------------------ ----- --. 13 13 13 13 13 0

MILES OF OPEN DRAINS MAINTAINED

St. Thomas...........------------------- -------------------------------------------------25 25 25 25
St. Carol ......... [ 1O I0 10 10 12
St. Croix --------------------- ---------------------------------------- 10 10 10 100 12
50
[0

POTABLE WATER CONSUMPTION

Department of Finance

Personnel: 180 Operating appropriation: $1,476,813

Receipts and Expenditures Set New Records
During the 1963-64 fiscal year, receipts into and expenditures made
from the Treasury of the Virgin Islands, for general operation of
the local government, reached another record high, following the
trend established over the past 10 years.
Revenues totaling $24,803,519 were distributed as follows:
Percent of total
General fund .------------------- $17, 111, 238 69
Matching fund-------------------- 7, 692, 281 31

24, 803, 519 100
Collections from all sources represented an increase of 24.34 percent
over the previous fiscal year, which had scored an increase of 14.36
percent over the year before.
Expenses totaling $22,590,852.26 in actual disbursements, plus out-
standing encumbrances against the appropriations for fiscal 1964,
are distributed as follows:
Percent of total
General fund..-------------------.. $19, 467, 922 86
Matching fund--------------------- 3,122,930 14

22, 590, 852 100
These expenses represent an increase of 34.51 percent over those
for the preceding fiscal year, which in turn had registered an increase
of 32.60 percent over the year before.
In general, the increases in revenues and expenses reflect the
favorable and healthy economic growth being experienced in all phases
of governmental and commercial activity throughout the Virgin
Islands.

Activities in Special Funds
At the end of each fiscal year, the unobligated balances of appro-
priated and unappropriated matching funds are transferred to the
Essential Projects Fund. They can then be available for expenditure
in any succeeding fiscal year, but only for approved emergency and

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 89
essential public projects. During the past fiscal year, a total of
$2,194,386.06 was transferred from the Matching Fund to the Essen-
tial Projects Fund. This is an increase of $181,952.24, or 9.04 percent
over the amount transferred the previous fiscal year.
Essential Projects Fund expenditures for fiscal year 1964 amounted
to $3,464,395.44. This was an increase of $1,751,163.44, or 109.21
percent over the similar expenditure for fiscal 1963. This excess of
expenditures over transfers does not indicate a deficit condition, be-
cause expenditures of this fund are applied against the available bal-
ance accumulated over the years, rather than against collections in
any given year.

Federal Contributions
The Federal contribution during fiscal 1964 to grant-in-aid and
other joint programs with the local government amounted to $2,465,-
852.30. This is an increase of $858,583.69, or 53.42 percent above the
contribution for fiscal 1963. Such contributions are combined with
local expenditures in vital programs for health, education, and wel-
fare projects.

Road Fund Account
Taxes on gasoline sales and traffic fines are deposited in a Special
Road Fund Account under the jurisdiction of the Department of
Public Works. Each year, the legislature appropriates money from
this account for exclusive use in road construction, extension, and
maintenance. During fiscal 1964, the total of $337,949.74 was de-
posited in the Special Road Fund Account, a 8.43 percent increase in
the amount of $26,263 over fiscal 1963. Of this amount, $294,515.74,
or 87.15 percent, represents taxes on gasoline sales, and $43,434, or
12.85 percent, came from fines and miscellaneous revenues.

Marine and Aviation Fund
All revenues for government services at airport and harbors go into
the special Marine and Aviation Fund. The Alexander Hamilton
Airport in St. Croix and the harbor installations in St. Thomas and
St. Croix are administered by the Marine and Aviation Division of
the Department of Commerce. Expenses of administration are paid
for from legislative appropriation from the Marine and Aviation
Fund.
For fiscal 1964, revenues credited to the Marine and Aviation Fund
amounted to $555,234.99. This was an increase of $128,783.02, or
30.20 percent, over collections the previous year. Of the total col-
lected, $182,000 came as a contribution from the General Fund;

90 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

$202,495 was from harbor fees through U.S. customs; $69,864.10 came
from pilot fees collected by harbor offices; $64,492.73 represented mis-
cellaneous harbor and airport charges; and $36,383.16 came from rents
and concessions at Alexander Hamilton Airport.
Expenditures from the Marine and Aviation Fund for fiscal 1964
totaled $369,281.72. This was an increase of $102,962.25, or 38.66
percent, over fiscal 1963.
The increased revenues realized from the harbor and airport opera-
tions is due to increased tourist and commercial marine and air trans-
portation. This is another indication of the steady upward trend of
the Virgin Islands economy.

Department Services and Facilities Improved
Plans for a scientific records retention and disposal program are
being studied. Adoption of such a program would eliminate the
continuing costly need for expansion of storage facilities. However,
legislation is needed and is under consideration to specify the policy
with respect to disposition of records, taking into account historic,
administrative, legal, and other values of material to be retained.
The department continued its vigorous efforts in the fuller and more
effective use of its central accounting system. Modifications were
made which resulted in speedier processing and reporting.
Effective steps were taken in eliminating the backlog of payment
vouchers, improving controls over document processing, upgrading
quality and promptness of reports, and the coordination of activities
of departmental divisions more effectively.
During the early part of the fiscal year, the department retained
two consultants in governmental accounting and data processing
whose services were effective in the establishment of controls and the
scheduling of workflow between units of the system.
Audits were issued during the year covering the Virgin Islands
Lottery and collection offices of the Department of Law. Also, by
year's end, an audit of deductions from employees' salaries for savings
bonds was nearing completion.
A continuous audit of daily cash collections was kept current, and
all reconciliations are up to date.
Activities in the Treasury Division during the year were concen-
trated on updating collection of outstanding accounts due the govern-
ment. A skeleton staff was set up for the Accounts Receivable Section,
and several thousand delinquent accounts were referred to the attorney
general for collection through the courts.
As the result of a study of procedures for collecting and processing
revenues and other receipts, a new Accounting Manual was prepared

REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 91

for issuance in July 1964. This will provide for improved supervision
of agent collectors and will simplify processing.
The Data Processing Division successfully accomplished the process-
ing of real property tax data, producing assessment rolls and schedules
of collection and bills for the 1963 calendar year. This program is now
scheduled as a normal part of the division's operations each year.

Improved Tax Administration
Since reorganization of the Tax Division 2 years ago, administration
of the income and excise taxes has improved at the same steady rate.
The U.S. Internal Revenue Service's audit of the organization and
operations of the local division, released at the end of the fiscal year,
noted substantial progress in the facilities and operations in this area.
The Internal Revenue Service is giving assistance in filling im-
portant supervisory positions with experienced former employees of
that Service. These highly trained taxmen would give on-the-job
training and counsel to local employees during a 2-year period for
which they will be employed.
During the past 3 years, the auditing of income tax returns has been
made more efficient and comprehensive. The number of individual
audits made in fiscal 1964 was 1,696, as compared with 301 in fiscal 1963
and 242 in fiscal 1962. The amount of additional tax assessed as a
result of such audits was approximately $1 million in fiscal 1964, as
compared with some $300,000 in fiscal 1963 and $100,000 in fiscal 1962.

Government Insurance Program
Construction enterprises of all types and dimensions have been the
most consistent users of the Government insurance program. The
building boom and the increase in variety of risks is reflected in the
steady growth in use of this service.
For the 1964 fiscal year, 297 new policies were issued, and a total
of $226,119.76 was collected in premiums.
Due to the expanded use of this program, a contract was signed with
the Public Administration Service of Chicago, Ill., to conduct an
actuarial survey of the Government Insurance Fund. A major pur-
pose of this survey was the study of the rate structure as it is affected
by various occupational hazards. The survey was completed and a
report made during the first half of the fiscal year. Based on this
report, the department has made recommendations to the Governor
which would require new legislation for implementation. Work in
this area is going forward in close cooperation with the Department
of Agriculture and Labor.

GOVERNMENT OF THE VIRGIN ISLANDS

General fund and matching fund

Comparative statement of revenues and receipts, fiscal years 1960-64

Source of revenues and receipts Fiscal year Percent of Fiscal year Percent of Fiscal year Percentof Fiscal year Percentof Fiscal year Percent of
1960 total 1961 total 1962 total 1963 total 1964 total

General fund:
Real property taxes--.........------- $372,724.81 5.14 $348,174.57 3.97 $499,413.87 4.50 $590,079.89 4.91 $760,042.86 4.44
Income taes-------------------... 4,329.017.86 59.69 5,619,721.00 64.09 7,221,085.92 65.05 7,511,216.09 62.46 10,707,372.83 62.58
Inheritance taxes --------.... ----23,011.19 .32 42,541.45 .49 37,529.94 .34 18,897.78 .16 59,309.12 .35
Stamp taxes-....------...------..... 71,495.93 .99 112,883.01 1.29 135,719.28 1.22 144,334.51 1.20 195,115.84 1.14
Trade, excise, and gross receipts taxes.... 1,185,743.54 16.35 1,357,491.33 15.48 1,655,595.56 14.92 1,927,652.61 16.03 3,388,502.08 19.80
Custom dues ....-----....--------- 487,000.00 6.72 431,780.70 4.92 747,085.00 6.73 648,770.80 5.40 780,004.65 4.56
Licenses, fees, and permits------.... ...- 331,377.55 4.57 372,391.70 4.25 433,987.80 3.91 486,377.38 4.04 618,130.59 3.61
Corporation franchise taxes---.----.... 16,702.63 .23 16,491.33 .19 20,237.56 .18 35,799.65 .30 36,675.03 .21
Fines, forfeits, and penalties-----.....-- 39,549.05 .54 33,709.72 .38 39,450.43 .36 78,898.75 .66 41,282.37 .24
Revenue fromuse ofmoney and property. 24,803.30 .34 26,567.07 .30 23,767.82 .21 24,079.79 .20 12,503.81 .07
Otherincome ------------.......... 370,442.08 5.11 406.411.95 4.64 286,060.37 2.58 558,485.64 4.64 512,298.63 3.00
Totalgeneral fund.--....------.. ---- 7.251,867.94 100.00 8,768,163.83 100.00 11,099,933.55 100.00 112,024,592.89 100.00 17,111,237.81 100.00
Matching fund:
Internal Revenue matching contributions- 4,917,952.15 97.79 6,494,445.33 96.79 6,173,477.87 97.32 7,682,528.59 96.95 7,042,107.28 91.55
Transfers and reimbursements ..----.... 101,752.63 2.02 185,171.37 2.76 128,796.80 2.03 153,557.33 1.94 506,318.92 6.58
Miscellaneous insurance compensation----------- -------------- ----------------------------- -------------------------. 71,100. 00 .92
Interest on Government funds....-------- 9,358.08 .19 30,454.49 .45 41,476.35 .65 88,101.'12 1.11 72, 754.61 1 .95
Totalmatching fund ---------- 5.029,062.86 100.00 6,710,071.19 100.00 6,343,751.02 100.00 7,924,187.04 100.00 7,692,280.81 100.00
Grand total.---------- ---------- 12,280,930.80 15,478,235.02 -..-..- 17,443,684.57 ---------- 19,948,779.93 --....--- 24, 803, 518. 62 ........

I Adjusted from last year's report.

t4

1o
0

0

r0
0
a

c
12
ar

Comparative statement of annual increases in revenues and receipts, fiscal years 1960-64

Percentage of annual increase (decrease)

1959-60

1960-61

1961-62

1962-63

1963-64

General fund:
Realpropertytaxes-------------------.............................---------------...........-------------------- 34.87 (6. 59) 43.44 18.19 28.76
Income taxes .------------------- ----------------. 41.74 29.82 28.50 4.97 41.25
Inheritance taxes....-------------------------------------------------------- (39.38) 84.87 (11.78) (3.23) 237. 87
Stampa axes -------------------------.............................----------------------------------...... (26.41) 7.89 20.23 .63 44.68
Trade, excise, and gross receipt taxes. ...---- ..---------.---.---------------33.75 14.48 21.96 17.25 74.55
Custom duties --------.......-......--------------.-.. ---- .......-------- 71.03 (11.34) 73.02 (13.16) 20.24
Licenses, fees, and permits ........----------------------------------- 22.85 12.38 16.54 13.97 24.98
Corporation franchise tax ------------------------------------------------- 269. 69 (1.27) 22.72 77.41 2.15
Fines, forfeits, and penalties------------------------------------------------ 35. 65 (14.78) 17.03 90.50 (45. 06)
Revenue from use of money and property----------------- 4,422.52 .71 10.57 13.13 (48.07
Other income ------------------------------------------------------ 30.25 9.71 ----- 29. 61 ____ 95.523 (8.27,
Total general fund ----------------------------------------------------- 38.80 20.91 26.59 8.00 42.74
Matching fund:
Internal revenue matching contributions .-------------------------------------- 26.98 32.06 (4.94) 24.44 (8.34)
Transfers and reimbursements.------------.------------- --- ------------- (13.18) 81.98 36.19 112.41 229.65
Interest on Government funds ---------------------------------- --------- 84.56 224.67 (30.44) 19.25 (17.42)
Total matching fund..-- -------------------------------------------------- 33.20 26.03 12.70 14.15 (2.93)

0
00

0

0
0

ri3

a

Comparative statement of expenses, fiscal years 1960-64

Fiscal year Percent Fiscal year Percent Fiscal year Percent Fiscal year Percent Fiscal year Percent
Expenses 1 1960 of total 1961 of total 1962 of total 1963 of total 1964 of total
expenses expenses expenses expenses expenses

Standard governmental expenses
Legislative.--------------- ------------ $196,190.66
Judicial (municipal courts) ---------------. 59, 244.54

Executive:
Administrative departments and agencies..
Service departments:
Public Works Department.....-.--....
Health Department...------- -.....
Education Department--- .. ....
Social Welfare Department. -. ----
Public Safety Department -----.-.-...
Commerce Department---------- -...
Agriculture and Labor Department
Housing and Urban Renewal Depart-
ment -------.----------..............-----
Total executive -------------------
Other governmental expenses .------------
Total standard governmental expenses...
Public projects-general fund and matching
fund:
Public Works Department ...------------
Health Department.--.. ..-- ---
Education Department ------..-.--
Social Welfare Department ...------------
Governor's Consulting Service --
Housing and Urban Renewal Department-
Agriculture and Labor Department-------
Total public projects-general fund and
matching fund------ -----------

$194,103.66
62,188.18

1.48 $236,967.44
.47 72,656.44

$237,499.01
68. 199. 96

$313,044.46
9 9asn 78

1,443,836.54 14.44 1,503,788.37 11.43 1,812,480.40 12.17 2,352,495.96 12. 5 2,611,783.47 11.56
2,155,141.89 21.55 1,854,961.77 14.10 2,361,639.59 15.86 2,643,277.76 14.32 3,218,084.59 14.25
2,097,018.42 20.97 2,533,674.72 19.26 2,634,032.27 17.69 2,714,225.13 14.71 3,361,753.97 14.88
1,859,452.82 18.60 2,107,840.76 16.02 2,413,884.61 16.21 2,993,486.25 16.22 3,802,668.02 16.83
550, 434.99 5.50 601857.55 4.58 837,884.45 5.63 986,816.12 5.35 1,226,253.09 5.43
54,265.32 5.54 69833.79 5.51 788,665.09 5.29 849915.89 4.61 1078,080.17 477
227,682.37 2.28 340,917.48 2.59 576,265.31 3.87 623,834.08 3.38 730,113.81 3.23
143,168.13 1.43 167,723.53 1.28 256,136.41 1.72 321,335.29 1.74 359,990.22 1.59
---.------.. .......... ---.............. ------- .......... 81,040.64 .44 180,378.70 .80
9,631,000.48 90.31 9,809,297.97 74.57 11,680,988.13 78.44 13,566,427.12 73.52 16,569,106.04 73.34
296,110.29 2.96 197,666.79 1.50 548,852.58 3.69 1,875,235.14 10.16 2,486,820.63 11.01
9,582,545.97 95.82 10,263,256.60 78.02 12,539,464.59 84.21 15,747,361.23 85.34 19,467,921.91 86.18

370,166. 3.70 2,856,053.86 21.71 2,321,189.90 15.59 2,038,600.38 11.05 2,444,186.41 10.82
47,396.09 .48 --------------.......... --------- 2,819.00 .02 -----------------------........ 110,350.00 .49
----- ... 35,434.45 .27 6,457.73 .04 37,553.28 .20 2,623.23 .01
251.44 -. ...... 604.63 .00 8,756.86 .05
------------. --------- ---------- 20,547.13 .14 ---------
-.------ -............... 546,198.26 2.96 463,349.82 2.05
-- --------- ....- -75,091.78 .40 102,420.89 .45

417,562.17 4.18 2,891,739.75 21.98 2,351,618.39 15.79 2,706,200.56 14.66 3,122,930.35 13.82

1.39
44

Totalexpenses------------..........-----10,000,108.14 100.00 13,154,996.35

100.00 14,891,082.98

100.00

1 Expenses include actual disbursements plus outstanding encumbrances charged to current year's appropriations.

18,463,561.79 1 100.00 22,590,852.26

100.00

0

0
1

0

0

0

i-;

02

En

1

MILLISECOND	CLASS.METHOD	MESSAGE
0	sobekcm_page_globals.constructor
0	sobekcm_page_globals.constructor	Application State validated or built
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.constructor	Navigation Object created from URI query string
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.display_item	Retrieving item or group information
0	sobekcm_page_globals.get_entire_collection_hierarchy	Retrieving hierarchy information
0	sobekcm_assistant.get_entire_collection_hierarchy
0	cached_data_manager.retrieve_item_aggregation
0	cached_data_manager.retrieve_item_aggregation	Found item aggregation on local cache
0	item_aggregation_builder.get_item_aggregation	Found 'all' item aggregation in cache
0	system.web.ui.page.page_load (ufdc.page_load)
0	sobekcm_page_globals.constructor.on_page_load
0	html_echo_mainwriter.add_style_references	Adding style references to HTML
0	html_echo_mainwriter.add_text_to_page	Reading the text from the file and echoing back to the output stream
56	html_echo_mainwriter.add_text_to_page	Finished reading and writing the file

	Front Cover
	Title Page
	Table of Contents
	General Information
	Highlights of the Year
	Legislation
	Matters Involving Federal...
	Power and Water Utilities
	Virgin Islands Corporation
	Virgin Islands Government News...
	Control of Processing of Woolen...
	Office of the Government Secre...
	Department of Education
	College of the Virgin Islands
	Department of Health
	Department of Social Welfare
	Department of Commerce
	Department of Agriculture...
	Virgin Islands Employment Security...
	Department of Public Works
	Department of Finance
	Office of the Director of...
	Department of Housing and Community...
	Department of Property and...
	Department of Law
	Department of Public Safety
	Municipal Courts
	Office of Probation and Parole
	Virgin Islands Planning Board
	Division of Personnel
	Traffic Advisory and Safety...
	Public Utilities Commission
	Selective Service
	Conclusion