• TABLE OF CONTENTS
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 Front Cover
 Table of Contents
 Letter of transmittal
 Summary
 Scope
 Main
 Appendix A
 Appendix B














Group Title: Annual report, Office of the Government Secretary, United States Virgin Islands
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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Table of Contents
        Page 1
        Page 2
    Letter of transmittal
        Page 3
        Page 4
    Summary
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
    Scope
        Page 10
        Page 11
    Main
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
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        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
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        Pages 50-51
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    Appendix A
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
    Appendix B
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
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        Page 100
Full Text


ANNUAL REPORT

OFFICE OF THE
GOVERNMENT SECRETARY
Fiscal Year 1967








CYRIL E. KING
GOVERNMENT SECRETARY


V8g/?r5
V 810 r









TABLE OF CONTENTS

Letter of Transmittal 3

Summary Report 5

Scope 10

Administration

Corporations 12
Licenses 15
Trade Names 20
Insurance 21
Board of Control of Alcoholic Beverages 29
Passports 33
Trademarks and Patents 35
Notaries Public 36
Ministerial Licenses 40
Legislation 40
Banking Board of the Virgin Islands 41
Sanitary Facilities 48

Recorder of Deeds

St. Thomas 53
St. Croix 58

Uniform Commercial Code 62

Office of the Tax Assessor 62

Miscellaneous 77

Appendix A 82

Appendix B 90









Government of
The Virgin Islands of the United States



Office of the Government Secretary
Charlotte Amalie, St. Thomas 00801

August 15, 1967




Honorable Ralph M. Paiewonsky
Governor of the Virgin Islands
Charlotte Amalie, St. Thomas
Virgin Islands of the United States

Dear Governor Paiewonsky:

In accordance with your memorandum of May 2, 1967,
transmitted herewith is the Annual Report for the Office of
the Government Secretary for the fiscal year July 1, 1966,
to June 30, 1967.

Sincerely,



Cyril E. King
Government Secretary

Enclosure









Summary Report
Office of the Government Secretary
Fiscal Year 1967


For the past decade, by virtue of the varied functions

assigned to the Office of the Government Secretary by the

Organic Act and the Virgin Islands Code, its annual report

has reflected the impact of the economic progress as well as

of the cultural and social development of the Virgin Islands.

This is no less true of the Annual Report of the Office of the

Government Secretary for the Fiscal Year ended June 30, 1967.

The cope of the duties and responsibilities of the Govern-

ment Secretary encompasses every phase of business activity

in the community -- corporations, licensing, banking, real

property assessment and taxation, insurance, recording of

documents, passports, trademarks and patents, alcohol

control -- thus providing an especially good and reliable van-

tage point from which to measure with some accuracy the

economic trends and development of the Virgin Islands.

The fact that all the above listed functions of the Office









of the Government Secretary reflected continuing increased

activity therefore attests to the continuing upward trend in

all areas of community affairs.

The period covered by this report witnessed the follow-

ing legislative enactments which were approved by the Governor

and which directly affected or subsequently will affect the

operations of the Office of the Government Secretary:

1. Act No. 1806, To Defer Application of

Penalties on 1965 Real Property Taxes,

approved August 30, 1966.

2. Act No. 1948, To Provide for the Licensing

of Real Estate Brokers and Real Estate Sales-

men, approved May 4, 1967.

3. Act No. 1991. To Revise the Procedures

For the Licensing of Businesses, Pro-

fessions, Occupations, and Trades in

the Virgin Islands, approved June 6, 1967.









With the mailing this fiscal year of the 1966 real property

tax bills, the reassessment program experienced the comple-

tion of the final phase in its first three-year cycle.

Upgrading of the mapping system and overcoming other

appraisal problems caused mostly by lack of proper boundary

marks and failure to record deeds continued to receive active

and concentrated attention during the period covered by this

report.

Another significant first in the Division of Real Property

Assessment was the seminar on real property assessment

sponsored by the Government Secretary's Office. Participating

in this one-day seminar were the entire staffs of the Real Pro-

perty Assessment Offices from St. Croix, St. Thomas and

St. John. This Conference was the outgrowth of an earlier

Conference of the International Association of Assessing Offi-

cers which was held in Canada and which was attended by the

Government Secretary who was accompanied by the Tax

Assessor and the Deputy Tax Assessor from St. Croix.









Continuing efforts to meet with increased effectiveness its

responsibility to protect the public's interest, assure the busi-

ness community of a fair and equitable climate in which to

operate, this office succeeded after many years of effort in

completing proposed new banking and insurance laws. These

were drawn with the assistance of the Equity Publishing Cor-

poration and the close cooperation of the Attorney General's

Office following extensive correspondence and discussions

with interested persons -- including an all-day conference on

each proposal in the Office of the Government Secretary.

The number of real property and other transactions re-

quired by law to be filed and recorded increased dramatically.

This further attests to the continued vibrancy of the economy.

In further testimony to the foregoing, during the fiscal

year ended June 30, 1967, one of the largest American banks --

First National City Bank of New York -- opened two branches

in the Virgin Islands. Also pending at the close of the fiscal

year is an application before the Board of Governors of the









Federal Reserve System for the establishment of an additional

branch of the Chase Manhattan Bank (National Association).

The number of insurance companies and agents regis-

tered to do business in the Virgin Islands also increased sig-

nificantly during the fiscal year.

Loans totalling approximately $9, 500 were made from

the Sanitary Facilities Fund and several applications still

are pending.

In addition to his normal duties, frequently during the

past fiscal year the Government Secretary served as Acting

Governor and in this capacity he has had to welcome numerous

dignitaries.

Photographs depicting various activities mentioned in

this report are attached hereto. Also attached are statistical

charts of the major activities of the Office of the Government

Secretary.









SCOPE


Under the Organic Act of the Virgin Islands, the

Government Secretary is the Custodian of the Seal of the

Virgin Islands; is required to record and preserve the laws

enacted by the Legislature. In the absence of the Governor,

the Government Secretary is Acting Governor of the Virgin

Islands.

Pursuant to Title 3, Chapter 3 of the Virgin Islands

Code, the Government Secretary, in addition to the other

powers and duties conferred upon him, has supervision

over the assessment of real property taxes, jurisdiction

over the filing and recording of deeds and other records of

real property transactions, and all other instruments re-

quired by law to be filed or recorded, as well as responsi-

bility for administration of the Uniform Commercial Code.

He is the Commissioner of Insurance and as such must

license and supervise insurance companies and agents opera-

ting in the Virgin Islands.

Under Title 13 of the Virgin Islands Code the Govern-








ment Secretary is also charged with the duty of licensing

corporations and the processing of corporate documents.

He is also the Registrar of Trademarks and trade names.

In all of these corporate functions, the Government Secre-

tary must assess and collect all filing fees, franchise taxes,

etc., prescribed by the Virgin Islands Code.

The Government Secretary is also Chairman of the

Board of Control of Alcoholic Beverages and the Banking

Board. The administrative responsibility for the function-

ing of these boards is also under the jurisdiction of the

Government Secretary's Office.








ANNUAL REPORT

OFFICE OF THE GOVERNMENT SECRETARY
FISCAL YEAR 1967




:CORPORATIONS

As of June 30, 1967, a total of 1,282 corporations are

registered under the laws of the Virgin Islands. Of this num-

ber 227 are new corporations which were registered and

authorized to do business in the Virgin Islands during fiscal

year 1967. Comprising these 227 new corporations are 189

domestic, 22 foreign, and 16 non-profit.

Despite severe personnel limitations, the pressing

need for revision of portions of existing corporate laws,

and the steadily increasing corporate activity, this office

continued to rigorously enforce compliance by corporations

with existing corporate law. As a result, a total of 168

domestic corporations were dissolved for various reasons--

the most prominent of which was non-payment of franchise

taxes.









As the economic growth of the Virgin Islands continues

its upward spiral, a correspondingly noticeable increase is

being experienced in the corporate activities performed in

this office. Based on presently available information this

trend is expected to continue.

A statistical view of corporate activity for preceding

fiscal years are presented in the following tables:













COMPARATIVE CHART CORPORATE ACTIVITIES


Certificates of Incor-
poration Issued
Certificates of Amend-
ment Issued
Dissolutions
Withdrawals
> Mergers
Surrender of Cor-
porate Rights


1963 1964
Foreign Domestic Foreign-Domestic


24 173 19 173

2 26 4 43
4 85 -- 49
5 -- 4 --
-- 1 1

-- 6 -- 4


1965 1966 1967
Foreign Domestic Foreign Domestic Foreign Domestic


33 173 26 194 22 189


27 4 26 2 28
143 -- 10 -- 168


-- 5
3 --


1 -


1 10 1 --


COMPARATIVE TABLE FRANCHISE TAXES & CORPORATE FEES


Filing Fees

Franchise Taxes,
Including Penalties


1963

$13, 179.00


$38,098.75


1964

$15,196.17


$35,770.92


1965

$14,561.17


$36,288.80


1966

$18,295.98


$36,500.73


1967

$14,854.50


$56,370.95









LICENSING OF BUSINESSES AND OCCUPATIONS

As of June 30, 1967, 4, 308 licneses as compared with

3, 852 for the previous year had been issued as the economy

of the Virgin Islands continued its over-all expansion genera-

by, among other things, a steadily growing resident popula-

tion, an increasing number of visitors, and an increasing

demand for various services which in turn have served to

stimulate the establishment of new businesses including

shopping centers.

For a comparison of licenses issued and fees collected

over the past five fiscal years, see the accompanying charts

at the end of this section.

The fiscal year covered by this report witnessed the

passage of the following legislation which will affect not only

the functions of this office -- but, even more important and

far reaching, the traditional and accepted philosophy of govern-

ment with respect to the question of whether licensing is a

regulatory or revenue producing function of government.








1. Act No. 1948, To Provide for the

Licensing of Real Estate Brokers

and Real Estate Salesmen, approved

May 4, 1967.

2. Act No. 1991, To Revise the Pro-

cedures for the Licensing of Busi-

nesses, Professions, Occupations,

and Trades in the Virgin Islands,

approved June 6, 1967.

Act No. 1948 which became effective May 4, 1967, re-

moved the responsibility for licensing real estate salesmen

and real estate brokers from the Office of the Government

Secretary and placed it within the Department of Finance.

It also created a 5-member Virgin Islands Real Estate Com-

mission -- at least two members of which shall be licensed

real estate brokers and at least one member shall be an

attorney -- to be appointed within 60 days after the effective

date of the Act.

The Government Secretary vigorously opposed the








enactment of Act No. 1991 which removed the responsibility

for licensing businesses, occupations, trades, and profes-

sions from the Office of the Government Secretary as pre-

scribed in Title 27 of the Virgin Islands Code and placed it

within the Department of Finance. Even though for public

consumption the reason given for this transfer was that it

would "strengthen the executive branch of the Government"

and while the bill itself according to its title was supposed to

"revise the procedures" for the licensing of businesses and

occupations, the Government Secretary pointed out to the

Governor in conferences and subse uently by letter dated

May 5, 1967, that the procedures enumerated in the bill as

passed merely spelled out in detail the identical procedures

already in existence in this office. In addition to urging the

Governor to veto this bill, the Government Secretary pointed

out that the argument for the transfer failed to take into con-

sideration the following points:

1. There is a basic difference between the
functions traditionally administered by









the Department of Finance and of those
incident to the licensing of businesses,
professions, occupations, and trades.
In the case of the former, the Govern-
ment is concerned with revenue producing
functions, whereas in case of the latter,
it is concerned with regulating the conduct
of certain activities. These are two different
and unrelated concepts.

2. Further evidence of the predominance of
the regulatory aspect of the licensing
functions can be found in the affixing of the
Seal of the Government of the Virgin Islands
on each license. The custody of the Seal is
the sole responsibility of the Government
Secretary as provided in Section 12 of the
Organic Act.

Additionally, Act No. 1991 provides for limiting of the

number of liquor licenses to be issued. The above men-

tioned letter from the Government Secretary to the Governor,

the entire text of which appears as Appendix A of this report,

refers to the objective of this proposal as very questionable,

to say the least.

The following chart shows a comparison of licenses

issued and fees collected over the past five fiscal years:













LICENSES ISSUED AND FEES COLLECTED


1963
Licenses Fees Licenses


1,716 $101,592.50

1,034 39,176.00

2,750 $140,768.50


2,010

1,486

3,496


1964
Fees


$117,421.50

32,811.00

$150,232.50


1965 1966
Licenses Fees Licenses Fees


2,115

1,620

3,735


$130,781.68

42,084.00

$172,865.68


2,221

1,631

3,852


1967
Licenses Fees


$141,084.00 2,569 $120,642.50

45,345.001 1,739 41,137.00

$186,429.00 4,3082 $161,779.50


1. Includes fees collected for licenses for which applications have been received but licenses not yet issued, as well as refunds.
2. Includes licenses for which fees were received during fiscal year 1966 but not issued until fiscal year 1967.


District

St. Thomas
& St. John

St. Croix








TRADE NAMES

In compliance with Act No. 923, approved January 23,

1963, which provides for governmental control of the use of

trade names of businesses in the Virgin Islands by means of

registration, 270 new registrations of trade names were re-

corded during fiscal year 1967, bringing the total number of

trade names filed in this office since enactment of Act

No. 923 to 1, 129. Fees collected for this activity during the

fical year covered by this report amounted to $1,500.00 as

compared with $1, 025.00 the previous fiscal year.

The following tables show the amount of activity in this

area over thepast five fiscal years:

REGISTRATIONS & FEES COLLECTED

1963 1964 1965 1966 1967

Registrations 172 339 224 205 276
3
Fees Collected $ 860 1,695 1,120 1,025 1,500


3. Includes fees received for 24 registrations which are
pending









INSURANCE

A significant and long overdue forward step was made

in the area of insurance which will provide for more effec-

tive means of meeting the increasingly complex problems

which accompany the continued steady growth of insurance

business in the Virgin Islands.

The Commissioner of Insurance has prepared and sub-

mitted to the Governor of the Virgin Islands for his considera-

tion and transmittal to the Legislature a draft of a proposed

new insurance law which reflects the combined views of this

office, the Office of the Attorney General, Equity Publishing

Corporation and representatives of the various insurance

companies doing business in the Virgin Islands.

The Report to the Governor which accompanied the pro-

posed revised law reads in part as follows:

Report to the Governor
of the Virgin Islands

The Government Secretary respectfully submits this

report to the Governor of the Virgin Islands, concerning the









proposed bill to revise the insurance laws of the Virgin

Islands.

I. Need For Revision

The last general revision of the insurance laws was in

1952. Since that time many changes have occurred in the

financial life of the Virgin Islands. The existing law has

been amended from time to time but certain areas of the

insurance field were not covered by the amendments. It is

the purpose of this bill to up date the insurance laws, and to

reflect the changes in conditions which have occurred since

1952.

II. Preparation of Revision

For the purpose of improving the laws covering the in-

surance industry, in August 1966 the Government Secretary

engaged the services of Equity Publishing Corporation of

Oxford, New Hampshire, which publishes the Virgin Islands

Code annotated.

After preliminary meetings at which the general princi-

ples to be followed were decided upon, the company submitted









a draft of the bill to the Government Secretary. Meetings

were held to study the draft and to consider changes and im-

provements suggested by members of the insurance industry.

The final draft is the result of careful consideration of all the

provisions and the Government Secretary believes that the

adoption of this revision would greatly improve the adminis-

tration of the insurance laws and be beneficial to the public

and insurance industry of the Virgin Islands.

III. Purpose And Scope Of Revision

The general scheme of the revision was to utilize, as

far as possible, the current provisions of the insurance law

of the Virgin Islands and to include pertinent provisions from

other jurisdictions.

IV. New Provisions

The existing provisions of the insurance laws have been

expanded and a number of new chapters have been added. The

duties of the Commissioner of Insurance with respect to the

insurance industry have been set out at length throughout the









proposed bill.

V. Section By Section Analysis

The analysis notes show the source of each section of

the proposed bill, noting also similar provisions in other

jurisdictions and changes or additions to the text. Where the

section has been adopted from a similar provision in another

jurisdiction this has also been set out. (End of Report)

Fiscal Year 1967 also witnessed growing concern on the

part of this office for the extreme difficulty and in a very sub-

stantial number of cases the inability of automobile owners to

get automobile insurance coverage.

As a means of trying to solve this problem, this office is

actively exploring the possibility of having all insurance com-

panies doing business in the Virgin Islands join together in

setting up a "risk pool" controlled by the insurance industry

which would permit automobile and similar marginal risk in-

surance applications to be filed and distributed on a pre-

arranged basis to each insurance company.










































As Commissioner of Insurance. Govern, .
Cyril E. King is shown conferring with r. .
of insurance companies authorized to do
Virgin Islands and their counsels. Also snow:. aret First
Assistant Attorney General Peter J. O'Dea (at Kinig' left)
,.1 lr. Meldrim 'nhomslon, Jr., President of ['quity Pub-
!.... Corporation )at King's right partly hidden) who
drafted the proposed new insurance law now awaiting ap,
proval hy the Governor and the V. I. Legislature.
(Daily News Pun o)









During fiscal year 1967 several complaints were filed

with the Commissioner of Insurance and in the Courts against

an Insurance Agency which was the Virgin Islands agent for

several firms. As a result of these complaints and after con-

sultations with the involved persons and the Office of the

Attorney General, the Commissioner held several hearings

in accordance with the provisions of Title 22 of the Virgin

Islands Code. A decision on the allegations was withheld

however pending a court decision on a related matter involv-

ing said Insurance Agency. Prior to a decision by the Court

the accused left the Island. However, the Commissioner of

Insurance did negotiate the satisfactory settlement of all

claims which involved three companies, several hundred

policyholders and thousands of dollars. In addition, arrange-

ments were made with the newly designated representatives

for the insurance companies concerned for continued coverage

of the insured.

At the end of the fiscal year there were 93 insurance com-








panies authorized to conduct business in the Virgin Islands

as compared with 84 the previous year. Nine new companies

were registered during the fiscal year as compared with six

the previous fiscal year.

In addition, the Boston Insurance Company withdrew, and

the Investors Guaranty Assurance Corporation, pursuant to

consent of dissolution, was dissolved in accordance with

Section 283(d), Title 13 of the Virgin Islands Code.

Gross premiums written during the year totalled

$4, 424, 755.05 -- an increase of $786, 797.85 over the pre-

vious year. Gross premium taxes for this period totalled

$40,612.24 -- an increase of $7,682.70.

During the fiscal year 178 insurance licenses were issued,

80 of which were for insurance agents, 37 for insurance soli-

citors, 56 for apprentices, 4 to brokers, and one was issued

to a non-resident insurance broker.

Following is a comparative table of fees collected from

insurance activities over the past five fiscal years:












COMPARATIVE ANALYSIS OF FEES COLLECTED FOR INSURANCE ACTIVITIES
FISCAL YEARS 1963 TO 1967


1963 1964 1965 1966 1967

Certificates of Authority $3,187.50 $2,747.50 $3,412.50 $3,375.00 $3,750.00

Agents Licenses 3,068.22 2,870.00 3,047.50 4,943.68 4,805.00

Brokers Licenses -- -- 100.00 200.00 400.00

00 Solicitors Licenses 827.53 1,460.00 1,117.52 1, 050.00 1,779.96

Gross Premium Taxes 15,015.37 18,769.49 24,892.43 32,929.54 40,612.24

Filing Annual Statements 167.00 172.50 190.00 212.50 225.00

Filing Powers of Attorney 90.00 115.00 70.00 90.00 55.00

Sale of Insurance Laws 44.00 18.00 28.00 53.00 34.00
$22,400.12 $26,152.49 $32,857.95 $42,903.72 $51,661.20








BOARD OF CONTROL OF ALCOHOLIC BEVERAGES

The Board of Control of Alcoholic Beverages prescribes,

administers, and enforces regulations pertaining to the

manufacture and sale of alcoholic beverages, denatured

spirits, and articles containing denatured spirits.

Licensees operating under the general supervision of the

Board of Control of Alcoholic Beverages are as follows:

Distillers

1. Virgin Islands Rum Industries, Ltd. (St. Croix)
2. West Indies Distillers, Ltd. (St. Thomas)
3. Brugal & Co., Inc. (St. Croix)

Manufacturers of Liquor

1. E. Delatour et Cie., (St. Croix)

Manufacturers of Denatured Alcohol

1. Virgin Islands Rum Industries (St. Croix)

Manufacturers of Articles Containing Denatured Spirits

1. Huntley Ltd. (St. Thomas)
2. Virgin Islands Perfume Corporation (St. Thomas)
3. V. I. Rum Industries, Ltd., doing business as
V. I. Bay Rum Manufacturing Company (St. Croix)
4. Warner Lambert Caribbean Corporation, doing business
as West Indies Bay Co. (St. Thomas)









Rum production in the Virgin Islands increased this year by

more than 400, 000 proof gallons over the previous year, while

the total amount of alcoholic beverages exported to the United

States increased by over a quarter of a million proof gallons.

These exported beverages include rum, whiskey, cordials,

and liqueurs.

The manufacture of perfumes, bay rum, and toilet water

using denatured alcohol showed a 40% increase, from more

than 24, 000 to over 35, 000 wine gallons.

Rigid inspection of alcoholic beverages imported into the

Virgin Islands continued to insure compliance with Virgin

Islands Government labelling regulations.

The following statistical information reflects the con-

tinuing increased activity in this area:












Rum Produced in the Virgin Islands

Brugal & Company
West Indies Distillers, Ltd.
V. I. Rum Industries, Ltd.
Total Proof Gallons*

Alcoholic Beverages Exported to the U. S.

Rum
Whiskey
Cordials, Liqueurs, etc.
Total Proof Gallons

Denatured Alcohol Produced (Wine Gallons)**

V. I. Rum Industries, Ltd.


Denatured Alcohol Used in the Manufacture of Perfume, Bay Rum and Toilet Water, etc.


West Indies Bay Co.
V. I. Bay Rum Manufacturing Co.
V. I. Perfume Corporation
Huntley, Ltd.
Total Wine Gallons


8,759 10,398 13,894
2,861 4,368 3,019
-- -- 147
-- 572 803
11,620 15,338 17,863


1962


200,000
1,084,334
1,284,334



825,387
4,343
4,381
834,111


2,863


1963


157,470
832,204
989,674



735,077
2,568
28,571
766,216


4,370


1964


327,072
878,917
1,205,989



1,230,257
2,160
17,796
1,250,213


3,018


1965


180,102
980,065
1,160,167



1,099,928

3,204
1,103,132


5,895


1966

39, 600
416,361
1,155,637
1,611,598



1,359,817

500
TF8T17


4,900


17,920
5,720
369
275
24,284


23,870
4,900
223
6,160
35,153












Motor vessel inspections of imported Alcoholic Beverages conducted in order to determine compliance with Virgin Islands Labelling
Regulations were as follows:

1963 21 Vessels inspected containing 4,972 cases
1964 30 Vessels inspected containing 4,653 cases
1965 29 Vessels inspected containing 3,939 cases
1966 39 Vessels inspected Containing 6,434 cases


Proof Gallon The Alcoholic equivalent of a U. S. gallon at 600 F, containing 50% of ethyl alcohol by volume.

** Wine Gallon A U. S. gallon of liquid measure equivalent to the volume of 231 cubic inches.

Gauging Manual
U. S. Treasury Department









PASSPORTS

The issuance, renewal, amendment and extension of

United States Passports continue to be one of the major

functions performed within the Office of the Government

Secretary. The current fiscal year reflects a considerable

amount of increased activity in this particular area. For

example, during the month of April 1967 alone, a total of

176 original passports were issued. One contributing factor

to the issuance of such a large number of passports during

this one-month period was the educational tour to certain

European countries by members and teachers from the senior

class of the high schools in both St. Thomas and St. Croix.

Close to the end of the current fiscal year State Depart-

ment issued a release dated June 5, 1967, restricting travel

of United States citizens to 14 countries in the Middle East.

As a result, all passports issued or renewed subsequent to

that order bears a restrictive endorsement for travel to the

countries in question. A later release from the State









Department under date of June 21, 1967, lifted the travel ban

from certain of the countries included in the earlier release

referred to above, so that the restriction now applies to only

9 of the original 14 restricted countries.

The following table reflects passport activities and fees

covering the past five fiscal years:


Passports

Issued
Renewed
Amended
Extended



Fees


1963 1964 1965 1966 1967

273 273 334 493 715
60 118 123 173 165
8 8 5 8 11
-- -- -- -- 2

341 399 462 674 893

$2,762 $3,115 $3,621 $5,302 $7,392


Of the total amount collected for the fiscal year 1967,

$132.00 represents fees collected in the last days of th, cur-

rent fiscal year, passports for which will not be processed

until early July 1967, thereby carrying them over into the

new 1968 fiscal year.









TRADEMARKS

This office continued to process trademarks and patents

in accordance with the Governor's Rules and Regulations

promulgated on June 11, 1959. Following are comparative

tables showing activity in this area over the past five fiscal

years:

1963 1964 1965 1966 1967

Design Patents 1 1 -- --
Original Registrations 24 19 35 27 29
Renewals 4 13 13 11 28
Assignments 6 -- 18 1 13
Changes in Name 2 4 2 2 16
Mergers 2 -- 2 2 1

39 37 70 43 87

Fees Collected

1963 1964 1965 1966 1967
$1,005.00 $ 907.50 $ 3,621.00 $832.00 $ 1,777.504



4. Of the total amount of $1, 777.50 shown above for fiscal
year 1967, $115 represents collections made in fiscal year
1966, registrations of which were effected in fiscal year 1967,
by reason of incomplete documentation. The amount of
$107.50 of the total amount shown above, represents collec-
tions made in fiscal year 1967, registrations for which are
pending receipt-of documentary evidence required for proces-
sing.









NOTARIES PUBLIC

In response to continued and increased public requests,

Act No. 1954, approved May 4, 1967, increased from 60 to

100 the number of notaries public commissions authorized

for the Virgin Islands. This Act also provided that the

Executive Secretary of the Legislature be appointed as a

notary public ex-officio by the Governor of the Virgin Islands,

and the incumbent was accordingly appointed.

To enhance public convenience and provide ready infor-

mation for those interested in obtaining commissions as a

notary public, printed information sheets setting forth the

requirements embodied in the Virgin Islands Code were

prepared and are being distributed to new applicants along

with an affidavit which must be executed by applicants. This

pamphlet also embodies the pertinent portions of Chapter 31,

Title IV of the Virgin Islands Code regarding fees permitted

to be charged by notaries public.

The following tables reflect activity in this area over

the past five fiscal years:











Fiscal Year 1963


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


Fiscal Year 1964


June 30
1963


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


June 30
1962


Issued
1963


Cancelled


Total
June 30
1963

11
14
7
13


Renewals

1
2


$245.00


Cancelled


Issued
1964

3
8
1
4


Total
June 30
1964

14
21
8
15


Renewals

6


$480.00










Fiscal Year 1965


June 30
1964


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


Fiscal Year 1966


June 30
1965


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


Issued
1965

5
1

1


Total
June 30
1965


Cancelled

1


Renewals


$ 365.00


Cancelled


1


Issued
1966

8
11
2
5


Total
June 30
1966

26
32
10
21


Renewals

1
4


$ 680.00













Fiscal Year 1967


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


5. One of the two commissions here issued represent the ex-officio commission granted by Act No. 1954 to the Executive Secretary of
the Legislature of the Virgin Islands.

6. $60.00 of the total amount shown above represent collections made in fiscal year 1967, the commissions for which were issued early
in fiscal year 1968. $40.00 of the total amount shown above represent collections made in fiscal year 1967, the commissions of which
are still pending awaiting approval of certain documents incident to issuance of the commissions in question.


June 30
1966


Issued
1967


Cancelled


Total
June 30
1967

27
37
10
22


Renewals


$ 670.006









MINISTERIAL LICENSES

There were 20 letters of authority granted to ministers

of the Gospel during fiscal year 1967, permitting them to

perform civil-religious ceremonies in the Virgin Islands.

The following table reflects the number of such letters

issued during the last five fiscal years:

1963 1964 1965 1966 1967

7 14 20 10 20

No fees are collected for these letters of authority.

LEGISLATION

The Office of the Government Secretary is responsible

for the assigning of act numbers and resolution numbers to

bills as they are passed by the Legislature and approved by

the Governor. This office is also charged with the responsi-

bility of distributing these enactments to the several govern-

ment departments, in addition to the Director of the Office of

Territories of the Department of the Interior, and the Equity

Publishing Corporation.








The following table shows the number of acts and resolu-

tions passed which received executive sanction during the

past five fiscal years:

1963 1964 1965 1966 1967

Acts 133 172 222 344 188
Resolutions 39 44 39 32 37

BANKING BOARD OF THE VIRGIN ISLANDS

As provided in Title 9 of the Virgin Islands Code, all

banks and foreign banks doing business in the Virgin Islands

shall be regulated and supervised by the Banking Board of

which the Government Secretary is Chairman by virtue of

Section 42, Title 3 of the Virgin Islands Code. The Board,

with the approval of the Governor of the Virgin Islands, may

adopt regulations consistent with the laws for the purpose

of effectively discharging its responsibility.

Within the scope of its authority the Banking Board en-

deavors to continue its responsibility for protection of the

depositor and the continuation of sound banking practices in









the Virgin Islands. The Chairman of the Banking Board upon

the recommendation of the Board and with the approval of the

Governor is authorized to issue licenses to banks permitting

them to conduct banking business in the Virgin Islands.

Six banks -- one a mutual savings bank -- and one savings

and loan association were operating twenty main and branch

offices in the Virgin Islands at the close of fiscal year 1967.

In addition, one of the banks operated two office in the

British Virgin Islands.

The provisions of the National Bank Act as adopted by

the Congress of the United States (12 U.S.C. Sec. 21 et seq.)

excludes three of the above mentioned six banks which are

national banks from the supervision of the Banking Board of

the Virgin Islands. Nevertheless, all requests from these

banks for the establishment of additional branches, as well

as applications from national banks desirous of conducting

business in the Virgin Islands are, as a matter of courtesy

cleared with the Board prior to approval by the Comptroller









of the Currency who is the Administrator of National Banks

and the Federal Reserve Board. In these and in all other

instances in which the Board has had occasion to come in

contact with these banks and/or the regulatory agencies of

the Federal Government, the relationship has beenvery

cooperative.

No affirmative action was taken during the period

covered by this report to activate the application of the

Caribbean Bank & Trust Corporation mentioned in previous

reports as pending.

During the period covered by this report and on the basis

of a follow-up audit by the Federal Deposit Insurance Corpora-

tion, one of the institutions supervised by the Banking Board

was ordered to take corrective measures to ensure full com-

pliance with local and Federal Deposit Insurance Corporation

requirements as well as protection of depositors. At the

close of the fiscal year the institution remained under strict

surveillance by the Banking Board and the Federal Deposit

Insurance Corporation.









A major accomplishment of the Banking Board during

fiscal year 1967 was the completion of a proposed new banking

code embodying an over-all revision of the banking laws of

the Virgin Islands. This proposal was forwarded to the

Governor on March 15, 1967, for his consideration and

subsequent transmittal to the Legislature. If enacted, this

will be the first general revision of the banking laws of the

Virgin Islands since 1949.

This revision has been one of the most perplexing

problems confronting the Board for a period of many years.

As the rising personal, business, and governmental incomes

in the Virgin Islands bouyed the growth of its financial institu-

tions, the Board found it increasingly difficult to discharge its

responsibilities effectively under the existing laws. From

time to time piecemeal amendments have been made to the

law to cover certain specific situations, but this approach

was far from satisfactory.

The Board is convinced that nothing short of a complete








revision will serve to provide the necessary regulatory

devices to enhance public service, protection and convenience,

while assuring a sound healthy financial climate in the com-

munity.

The final draft prepared under contract by Equity Pub-

lishing Corporation of New Hampshire was developed through

open and executive meetings of the Banking Board, correspond-

ence and conferences with all members of the banking com-

munity including the national banks, and close consultation

with the Office of the Attorney General.

The addition of several foreign banking institutions to the

banking community helped to point up the need for clarifying

and broadening the powers of the Board with respect to the

admission of new bahks, the question of deposit insurance

equivalent to that provided by the Federal Deposit Insurance

Corporation, etc.

New chapters and sections were added to provide for,

among other things, the regulation of small loan companies








and pawnbrokers; savings and loan associations; the powers

of domestic corporations provided by Title 13; and provisions

to guard against unauthorized disclosure of information by

bank personnel.

As of the end of fiscal year 1967 no action had been taken

by the Governor on the proposed draft. It is earnestly hoped

that this proposal will be included by the Governor in his

legislative program to be presented to the next regular

session of the Legislature in January 1968.

The following comparative table reflects the growth of

the banking industry of the Virgin Islands for the past five

fiscal years. It should be noted that the 1963 and 1964 figures

include the activities of four banks and the savings and loan

association. The 1965 figures represent the activities of only

the four banks established at that time. The figures for 1966

represent activities of five banks and the savings and loan

association; and for 1967 six banks and the savings and loan

association.
















Total Assets

Total Liabilities

Loans

Mortgages

Deposits:

Time
-J
Demand

Savings

Cash On Hand


Fiscal Year 1963

$ 59,056, 190.45

56,270,413.12

9,149,990.47

21,766,369.67

51,988,767.837








4,258, 403.47


Fiscal Year 1964

$67,782,950.85

63,908,111.13

13,282,331.67

27,925,425.09

58,721,006.438








3,379,280.27


Fiscal Year 1965

$ 79, 541,767.85

77,169,041.58

20,905,951.94

30,585,358.66



6,439,154.049
10
34, 309,809.13

33, 335,260.94

1,938,825.78


Fiscal Year 1966

$106,075,039.56

103,461,337.74

26,444,218.65

39,961,792.83



19,859,789.28

35,124,628.91

42,527,182.78

4,287,970.05


Fiscal Year 1967

$136,713,491.04

138,646,511.20

29,267,722.25

51,237,779.72



40,832,997.38

46,566,403.64

47,499,267.94

3,657,923.85


7. Includes time, demand, and savings deposits
8. Includes time, demand, and savings deposits
9. Does not include New St. Croix Savings Bank
10. Does not include New St. Croix Savings Bank









SANITARY FACILITIES

Despite the fact that on the average approximately 76%

of properties in the Virgin Islands are connected to the public

sewer system -- 65.5% in St. Thomas, 77.8% in Christian-

sted, and 93% in Frederiksted -- there still remains an

alarmingly large number of properties with pit privies or no

sanitary facilities at all and which require nightsoil services.

In an effort to lessen the number of such properties

thereby ridding the Islands of a major health hazard, the

Sanitary Facilities Fund -- a revolving fund -- was estab-

lished in 1960 with an initial appropriation of $150, 000 by the

Virgin Islands Legislature to enable those who were unable

to obtain funds from other financial sources to borrow money

from the Virgin Islands Government for the installation of

sanitary facilities as required by law.

Two years after establishment during which time 77 loans

totalling over $91, 000 had been made and deductions by the

the Department of Public Works for the cost of implementing

the program, the fund was completely depleted. After a









moratorium of about four years which afforded time for a

build up of cash reserves from repayments, the loan program

was reactivated at the suggestion of the Government Secre-

tary. During fiscal year 1967 approximately $10, 000 in

loans had been approved and several applications were in

various stages of processing at the close of the year.

As pointed out in previous annual reports, this program

has been and still continues to be seriously hampered by the

extremely acute housing shortage in these Islands which makes

it virtually impossible for tenants to find other housing ac-

commodations so that property owners could rebuild and/or

repair delapidated housing and install modern sanitary facili-

ties. It is strongly recommended however that no additional

cans be made available in addition to those already in use

and that continuous and diligent efforts be exerted in removing

cans from properties on which are installed required sanitary

facilities.

The following statistics show expenditures and cash

balance of the Sanitary Facilities Fund:






THE GOVERNMENT SECRETARY . .


, v'0
i^a
.vf


xe
6 *


- --5.


With Officers of the United States Navy and
Col. Joseph Christmas


At Semicentennial Celebrations in
St. Croix with former teachers
Sisters Odile and Mary Josephine.


Aboard Italian Cruise Ship Princess Leopoldina


Awarding Certificate to Community
Aide Ana Ayala at Adult Education
Program in St. Croix.


Jo
t2o


Dec.,
a~t
?1.


r



te!
J:~










Sanitary Facilities Fund
Statement of Receipts and Disbursements
June 1, 1959 to June 30, 1967


Receipts:
Contribution from General Fund
Loans and Interest from Loans



Expenditures:

Loans Made
Expenditures by Dept.of Pwks.


June 1, 1959 To
June 30, 1966



$150,000.00
72,916.40


$91,156.12
79,123.35


Cash Balance


June 1, 1966 To
June 30, 1967


$222,916.40


$170,279.47
$ 52, 636.9311


$ 10,667.45


Total
June 1, 1959 To
June 30, 1967


$10,667.45


$ 6,150.00

$ 6,150.00
$ 4,517.4412


$150,000.00
83,583.85


$233,583.85


$ 97,306.12
79,123.35
$176,429.47
$.57,154.38
$.57,154.38


11. Cummulative June 1, 1959 to June 30, 1966
12. Fiscal Year 1967 increases

13. Cummulative from June 1, 1959 to June 30, 1967









RECORDER OF DEEDS

Under the provisions of Section 36, Title 3 of the Virgin

Islands Code, the Government Secretary is responsible for

establishing and maintaining in each Judicial Division an

office for the filing and or recording of deeds and other legal

instruments relating to the title to real property situated in

the judicial districts and all other legal instruments required

by law to be filed or recorded therein. Each office shall be

in charge of a recorder of deeds, who shall be an employee

attached to the Office of the Government Secretary. The

instruments and records in each office shall be open to public

inspection during ordinary business hours on each business

day. The Recorders of Deeds perform their duties under the

supervision and direction of the Government Secretary.

Office of the Recorder of Deeds, St. Thomas

As a result of the excessively high rate of delinquent real

property tax bills, 674 liens and 1506 releases were recorded

in this office during the last fiscal year. The number of other








documents required by law to be recorded increased by

2,878 for a total of 8,661 documents recorded during fiscal

year 1967.

Fees collected for recording of documents amounted to

$39, 485.27. In addition, fees collected under the Uniform

Commercial Code for recording of financial statements

amounted to $4,983.95 for a total of $44, 469.22 in fees

collected, a decrease of approximately $2, 100. However,

these figures do not include fees collected by the Department

of Public Works for attestations and measure briefs.

The decrease shown in fees collected despite the increase

in documents recorded can be attributed to an increase in re-

cording of non-revenue producing transactions such as tax-

exempt instruments, many of them relating for example to the

sub-dividing of Anna's Retreat, tax exempt liens and releases.

Fees involved in these tax exempt transactions would have

amounted to $14,693.00 if they were collectible.

Tables reflecting the activities of this office, including

statistics on non-revenue producing activities follow:








Comparative Analysis of Documents Recorded During
Fiscal Years 1963 to 1967


1963 1964 1965


1966 1967


Deeds
Mortgages
Chattel Mortgages
Cond. Sales and
Contracts
Contracts
Cancellation and
Releases
Bills of Sale
Leases
Liens
Adjudications
Easements
Death Certificates
Assignments
Trust Receipts
Promissory Notes
Financing Statements
Miscellaneous
Certf. of Purchase
Certf. of Redemption


547 743 920 893
535 537 744 721
570 655 819 26


886 1,147 2,271 313 *
- -- -- -- 32


356 1,009 582
155 10 6
37 59 44
9 28 120
31 16 30
45 39 35
11 6 11
-- 21 23
-- 15
8
-- -- 8

171 397 169



3,353 4,767 5,794


602 2,108
21 20
58 43
903 1,557
33 27
22 32
12 14
37 59


1,926 2,483
216 312
-- 147
_- 34
5,783 8,661


* Included in Financing Statements

Comparative List of Fees Collected


1963


1964


1965


1966


1967


Total
Fees $28,688.20 $42,170.33 $58,796.68 $46,664.93 $44,469.22


Documents








Non-Revenue Producing Fee Exempt Transactions
Based On Considerations Stated in Documents
July 1, 1966 to June 30, 1967


Anna's Retreat


135 Deeds
134 Mortgages
134 Partial Releases @ $1.50
127 Final Certificates @ $4.50
9 Powers of Attorney @ $4.50


$ 2,130.00
2,014.00
201.00
571.50
40.50


Altona & Welgunst


23 Deeds


277.00


Liens

139 Internal Revenue @ $4.50 $ 625.50
71 Internal Revenue Cancellation @ $1.00 71.00
1486 Government Attachments @ $4.50 6,687.00
1414 Government Releases @ $1.00 1,414.00
147 Certificates of Purchase $ 4.50 661.50


$14,693.00


The above figures are not included in revenues collected
by the Office of the Recorder of Deeds since transactions
involve Government Agencies and/or tax exempt businesses.








Translation

The translation from Danish to English of ten books in

Series Two was completed during fiscal year 1967. These

books contain documents recorded in Danish from about the

year 1791.

The advanced deterioration of the books due to extreme

age and the fact that until a few years ago they were stored

in areas lacking the proper air conditioning, made the trans-

lation an extremely trying, tedious, and difficult task. In

many instances the pages disintegrate when the books are

opened. In addition, the script in which they are written

and the accumulation of dust and tiny shreds from disintegrat-

ing pages made the job of translating especially difficult.

Despite the foregoing considerable progress was made

in the translation. Painstaking effort and diligent care are

being exercised to preserve these records.

Microfilming

Due to the inadequate equipment and problems involving









the quality of films, the microfilming of the records and

property books in the Office of the Recorder of Deeds was

temporarily suspended, but subsequently continued. Books

up to and including Series 8-T (each series contains books

from A to Z) have been microfilmed and 13 more books are

ready for filming.

It is hoped that by the end of fiscal year 1968 work will

have begun on the microfilming of the books which have been

translated during the past fiscal year.

Office of the Recorder of Deeds, St. Croix

The Office of the Recorder of Deeds, St. Croix performs

the same services for the Judicial District of St. Croix as

are performed by the Recorder of Deeds for the Judicial

District of St. Thomas. Efforts similar to those underway

in St. Thomas are being carried out in the interest of bring-

ing about in St. Croix the same degree of improved service

and efficiency for the benefit of the St. Croix community.








Five thousand, seven hundred forty documents were

recorded and two hundred and seventy-two documents certi-

fied in this office during fiscal year 1967. Fees collected for

these transactions amounted to $47, 954.

In addition transactions involving non-revenue producing

tax exempt recording increased. Fees for these tax-exempt

transactions would have amounted to $16,209.00 if they were

collectible.

The decrease in fees despite the increase in transactions

can be attributed to the number of non-revenue producing tax

exempt transactions and to the large number of documents

recorded in compliance with the Uniform Commercial Code.

In the latter instance a flat fee is charged rather than a pre-

scribed word or line rate as was previously the case prior to

the enactment of the Uniform Commercial Code.

Following are statistical analyses of the activities of the

Office of the Recorder of Deeds for St. Croix including non-

revenue producing activities and transactions in compliance

with the Uniform Commercial Code:








Comparative Analysis of Documents Recorded During
Fiscal Years 1963 to 1967


Documents


1963 1964 1965 1966 1967


Deeds 718
Mortgages 501
Chattel Mortgages 121
Cond. Sales and
Contracts 437
Cancellation &
Releases 383
Leases --
Liens --
Easements --
Adjudications 19
Death Certificates 23
Assignments --
Trust Receipts --
Certificates of
Attachments 45
Attachments --
Financing Statements --
Continuation, Termi-


748 848 984 904
539 622 765 667
193 336 51 *

357 1,762 565 *

431 542 671 513
-- -- 29 8
-- 25 146
-- -- 14 7
12 11 26 27
9 25 25 21
-- -- 54 11
2 --


55


454 508
57 271
-- 1,477 2,236


nation Statements -, -- --
Assignment & Release -- -- -- 40 47
Miscellaneous 295 399 408 302 374

2,552 2,743 4,554 5,541 5,740
* Included in FinancingStatements

Comparative List of Fees Collected
Fiscal Years 1963 to 1967


1963


1964


1965


1966


1967


$22, 111.50 $31,956.50 $44,926.75 $60,012.00 $47,954.35









Non-Revenue Producing Fee Exempt Transactions
Based On Considerations Stated in Documents
July 1, 1966 to June 30, 1967


Documents

34 Deeds

60 Mortgages

791 Cancellations & Releases

146 Liens

45 Miscellaneous


$ 10,136.00

2,185.00

2,714.50

861.00

312.50

$16,209.00


The above figures are not included in revenues collected

by the Office of the Recorder of Deeds, St. Croix, since

transactions involve Government Agencies and/or tax exempt

businesses.








Uniform Commercial Code

Act No. 1299which became effective July 1, 1965, placed

the implementation and administrative responsibility for the

Uniform Commercial Code under the jurisdiction of the Office

of the Government Secretary.

The increase in financial transactions required by the

Commercial Code to be recorded is evidenced in the statisti-

cal tables of the Office of the Recorders of Deeds for St. Croix

and St. Thomas.

OFFICE OF THE TAX ASSESSOR

A major accomplishment of the Office of the Tax Assessor

during fiscal year 1967 was the completion of the first reassess-

ment of all real property in the Virgin Islands under the three-

year cycle reassessment program. This was accomplished in

addition to normal activities of the office such as appraisal of

new improvements within the already appraised 2/3 area.

After a legislatively imposed moratorium on increasing

real property taxes ended in 1965, the implementation of the








1960-61 reassessment program which provided for a continu-

ous 3-year reassessment -- 1/3 of all real property in the

Virgin Islands each year -- became effective and real property

tax bills began reflecting the new assessments.

Despite an unusually large number of appeals by property

owners during the last fiscal year after the mailing of the

1965 tax bills, this office remains convinced that this system

of real property reassessment and taxation provides a workable,

equitable, standardized and fair method of determining real

property taxes.

It should also be noted that of the reported 1500 appeals

filed as a result of the 1965 real property tax bills 737 --

almost 50% -- were withdrawn following administrative re-

view and consultations with the Government Secretary and

the Tax Assessor, or hearings before a panel set up by the

Board of Tax Review which hearings were attended by person-

nel from the Office of the Tax Assessor both on St. Thomas

and St. Croix.

















































,-~ -, r. Tru r cc rw r- -%rl E Kir, ( Gua-i Is


Ir)frr' .11 jrirr, l!I. At Mr. KLg s lern -s
'Tax A, cseor '. em, F,. a[ ~ Is ripgn
Cirput, -r. x ior St. Croix Canute A.
fi-ciu i.j iD.j-[, NewB R.,,Eo I









Another significant first in the Division of Real Property

Assessment and Taxation was the seminar on real property

assessment sponsored by the Government Secretary.

The one-day seminar was the outgrowth of and follow

through on the one-week workshop and three-day conference

sponsored by the International Association of Assessing

Officers in Toronto, Canada, which was attended by the

Government Secretary, the Tax Assessor, and the Deputy

Tax Assessor for St. Croix.

The seminar which was attended by the entire staffs of

the Offices of the Tax Assessor on St. Thomas, St. Croix

and St. John was developed with a view toward providing an

opportunity for members of these staffs to get to know each

other; to exchange views and experiences which they encoun-

tered during the course of their work; to discuss and work

out uniform standards of procedure for continuously upgrading

and improving the techniques for determining true and accurate

values in assessing and reassessing of real property; and









generally to continue striving toward always improving the

quality of the service performed by this office for and in

behalf of the Virgin Islands and their people.

The success of this seminar as reflected, among other

ways, by the expressed opinions of the participants as well

as in the performance of their work indicate the desirability

of and advantages to be gained by making such seminars a

regular annual activity for the staffs of the Offices of the Tax

Assessor on all three Islands.

Also accomplished during fiscal year 1967 was the com-

plete and accurate updating of the mapping system on St.

Thomas and St. Croix. On the Island of St. John which had

been experiencing problems caused mostly by lack of proper

boundary marks and failure to record deeds from as far back

as 1800, substantial progress has been made -- with relative-

ly few instances in which correct boundary posts remain to

be located. Much of this work in St. John was accomplished

as a result of the employment by the Tax Assessment Officer








of an Assistant Appraiser for the Island of St. John. As a

result, several hundred parcels of land were properly

identified and plotted on the tax maps and proper boundary

lines were identified. Also previously unidentifiable pro-

perties were located and plotted on the maps.

Real property tax bills for the calendar year 1966 amount-

ing to $2, 077,095.81 were mailed in fiscal year 1967, as com-

pared to $1,830, 418.52 in 1965 and $962, 997.60 the previous

year.

As land prices generally keep soaring under pressure of

the demand by the increasing numbers of persons making the

Virgin Islands their home, and bouyed by the inevitable grow-

ing scarcity of land, the need becomes ever more pronounced

for a standardized and equitable system of real property

assessment and taxation to keep real property assessment

within reasonable and realistic relationship with current mar-

ket values. In addition, such a system provides assurance

that new improvements, additions, renovations and other









changes are not likely as was true prior to 1961 to escape

taxation since the system has a built-in systematic check.

Also of major importance is the fact that with the ever

increasing cost of government in the Virgin Islands accom-

panied by sweeping economic and social changes as well as

the over-all increased demands of this growing community,

revenues produced from real property taxes should properly

reflect the viability of the economy.

The only legislation affecting the Office of the Tax

Assessor passed during the fiscal year covered by this report

was Act No. 1806, approved August 30, 1966, which deferred

application of penalties on 1965 real property tax bills

(mailed during fiscal year 1967) to January 2, 1967.

The following charts reflect the continuing progress

being made toward the realization of a workable, standardized,

and equitable system of real property assessment and taxation.













TOTAL ASSESSMENT AND TAXES
ST. THOMAS, ST. CROIX, ST. JOHN
1961 1966


Bills No. of Amt. of Amt. of
Year Issued Assessment Taxes Exemptions Exemptions Modification Taxes

1961 11,303 58,741,770.00 734,272.13 1,576 47,800.00 105,173.64 581,298.49

1962 11,855 63,346,331.00 791,829.14 2,099 58,974.72 70,123.68 662,730.74

(o 1963 12,679 72,017,612.00 900,220.15 2,388 67,085.49 35,686.10 797,448.56

1964 13,722 83,394,239.00 1,042,427.99 2,687 79,430.39 --- 962,997.60

1965 15,120 158,880,727.00 1,986,009.JO 3,062 155,590.57 --- 1,830,418.52

1966 16,783 192,820,503.00 2,410,256.29 4,719 333,160.48 --- 2,077,095.81









DETAILED CHART OF ASSESSMENTS AND TAXES
INCLUDING HOMESTEAD EXEMPTION


Island

St. Thomas


-J
o St. Croix







St. John


No. of Bills
Year Issued

1961 5,500
1962 5,744
1963 6,210
1964 6,760
1965 7,157
1966 8,140


5,100
5,397
5,731
6,191
7,120
7,612

703
714
738
771
843
1,031


Assessments

28,098,747.00
30,148,342.00
34,520,023.00
40,163,098.00
75,529,769.00
82,634,196.00


28,661,753.00
31,078,240.00
35,302,237.00
40,890,229.00
80,474,180.00
99,351,323.00


1,981,270.00
2,119,749.00
2,195,352.00
2,340,912.00
2,876,778.00
10,834,984.00


Taxes

$ 351,234.34
376,854.28
431,500.29
502,038.73
944,122.11
1,032,927.45


358,271.91
388,478.00
441,277.96
511,127.86
1,005,927.29
1,241,891.54


24,765.88
26,765.86
27,441.90
29,261.40
35,959.72
72,984.56
















RECAPITULATION OF 1965 AND 1966 ASSESSMENT AND TAXES


Land and
Building

Taxable, Tax Exempt,

206,729,680
252,812,382


Taxes

Church, V. I. Govt., Inc.

2,584,121.00
3,160,154.78


Total of Tax Exempt, Govt., Church

1965 640 50,834,724
1966 866 59,991,879


Total of Tax Exempt

1965 98
1966 95


24,913,526
18,101,826


No. of
Bills

Including N6n

15,760
17,649


Night
Soil



4,625.00
3,195.73


Amt. of
Homestead



155,590.57
333,160.48


Taxes



2,433,155.43
2,830,190.03


635,434.05
749,898.49


311,419.08
226,272.83


635,434.05
749,898.49


311,419.08
226,272.83









DELINQUENT REAL PROPERTY TAXES
BY ISLAND


As of December 31, 1966


Year No. of Bills


St. Croix


Christiansted


31
51
68
112
191
1645
2098


Value



$ 554.53
1,075.07
1,884.02
3,979.28
9,049.00
317,750.77
$ 334,292.67


As of June 30, 1967

r No. of Bills



0 11
1 27
2 23
3 44
4 58
5 1073
1236


Calendar Years 1960 through 1965 Decreased: 862 Bills
Value: $144,572.06


1966


4068 706,539.25
5304 $896,259.86


Value


$ 62.45
390.24
627.04
1,222.40
1,808.55
185,609.93
$ 189,720.61












DELINQUENT REAL PROPER TY TAXES
BY ISLAND


As of December 31, 1966

Year No. of Bills


As of June 30, 1967


Value


Year


3 $ 20.00
4 20.94
9 154.04
38 1,330.13
48 2,096.68
62 2,426.59
80 3,891.14
149 11,113.83
662 46,574.17
1055 $ 67,627.52


Calendar Years 1957 through 1965 Decreased: 391 Bills
Value: $27,659.50


No. of Bills


3
5
6
26
29
30
46
71
448
664



2372
3036


St. Croix


Frederiksted


Value


$ 20.00
25.94
126.19
1,007.76
859.95
877.36
1,294.83
2,597.32
33,158.67
$39,968.02



352,338.96
$ 392, 306.98










DELINQUENT REAL PROPERTY TAXES
BY ISLAND


As of December 31, 1966

Year No. of Bills


As of June 30, 1967


Value


Year


No. of Bills


1953


- $


2
12
10
26
7
57
200
359
267
251
301
2641
4133


18.00
215.58
230.09
756.81
54.67
2,158.14
7,993.09
18,356.40
11,644.06
12,242.88
18,038.41
488,501.60
$560,209.73


Calendar Years 1953 through 1965 Decreased: Bills 1300
Value: $161,598.13


St. Thomas


Value


3
6
9
17
6
37
108
144
128
134
150
2089
2833




6168
9001


$ 1,928.54
5,400.05
6,820.55
7,646.39
10,192.00
14,985.62
22,423.35
48,491.49
55,898.33
60,079.18
63,378.57
67,586.40
356,977.39
$721,807.86




$876, 157.15
$1,597,965.01












DELINQUENT REAL PROPERTY TAXES
BY ISLAND


As of December 31, 1966


As of June 30, 1967


Year No. of Bills


2
3
6
9
5
10
29
24
35
30
48
151
352


Value

$ 1.13
7.28
34.48
82.34
11.34
112.76
421.26
607.81
839.47
546.62
1,684.92
5,478.24
$9,827.65


Calendar Years 1954 through 1965 Decreased: Bills 128
Value $3,616.45


St. John


Year

1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965


1966


No. of Bills

1
1
2
4
2
2
17
14
18
19
33
111
224


515
739


Value

$ .50
.56
17.94
66.31
4.06
1.94
215.14
173.92
149.30
224.71
638.71
4,718.11
$6,211.20



36,509.62
$42,720.82










DELINQUENT REAL PROPERTY TAXES
ST. CROIX, ST. THOMAS, ST. JOHN
BY CALENDAR YEAR


As of December 31, 1966


Year No. of Bills

1953
1954 4
1955 15
1956 16
1957 38
1958 16
1959 76
1960 298
1961 482
1962 432
1963 473
1964 689
1965 5099

7638


7638


As of June 30, 1967


Value

$ -
19.13
222.86
264.57
859.15
86.95
2,424.94
10,299.01
22,135.96
16,794.14
20,659.92
39,886.16
858,304.78
$971,957.57



$971,957.57


Year


No. of Bills

2
4
7
11
24
13
45
162
214
199
243
312
3721
4957

13,123


Value

$ 1,928.54
5,400.55
6,821.11
7,664.33
10,278.31
15,015.62
22,551.48
49,776.84
57,322.44
61,732.88
66,120.51
72,630.98
580,464.10
$ 957,707.69

1,971,544.98


18,080 $2,929,252.67


Calendar Year


Grand Total








MISCELLANEOUS

A total of $301, 189.99 in revenues was collected by

the cashier in the Office of the Government Secretary

(St. Thomas), despite a decrease in revenues collected by
14
the Recorders of Deeds for St. Thomas and St. Croix.4

During fiscal year 1966 a total of $267, 765.96 was collected.

Total revenues collected and as shown above do not in-

clude over $40, 000 collected by the Office of the Administra-

tive Assistant to the Governor for St. Croix for business and

occupational licenses. Nor do they include over $47, 000 col-

lected by the Department of Finance in St. Croix for services

performed by the Office of the Recorder of Deeds for

St. Croix.

Mention also should be made of the views expressed by



14. Despite increases in volume of documents recorded,
amount of revenues collected reflect a decrease due to the
large number of non-revenue producing tax exempt trans-
actions recorded and the fact that the Uniform Commercial
Code provides for charge of a flat fee of $2.00 for filing of
secured transactions. Previously rate was assessed per line.


















:I'


h



~?a


Acting Governor C rd E. King and
Premier Forbes Burnham of Cdyana
enjo a hearrv laugn EhortI after Lne
Prerder's arrival in ST. Thorn.a.
(Photo by Kennett Oristoprier)









Government Secretary in conferences and by correspondence

with respect to the serious effect of certain highly question-

able legislative action upon the Office of the Government

Secretary and its effectively discharging the duties and

responsibilities entrusted to it. Appendix B of this report

embodies the full text of a letter written by the Government

Secretary to the Governor in this connection.

In addition to his normal every day duties, the Govern-

ment Secretary frequently served as Acting Governor during

fiscal year 1967. In this capacity he welcomed such visiting

dignitaries as Mrs. Lyndon B. Johnson, Premier Forbes

Burnham of Guyana, Commodore J.M. Townley, Royal Navy

of Great Britain Senior Naval Officer for the West Indies;

Mr. Omar Scego, Finance Minister of the Republic of Somali-

land; and visiting Ford dealers from all over the United States

who were in St. Thomas for the unveiling of the "Cougar"

model. On several occasions the Government Secretary,

serving as Acting Governor also made presentations of









Virgin Islands Government plaques to the captains of various

cruise ships in commemoration of their first visit to the

Virgin Islands.

Recommendations and pictures relating to the activities

of the Office of the Government Secretary are found through-

out thsi report.









-ac~ -j~_%:fb


~"
i~


C.) rd K c e.c A4 1ir r r









Appendix A


Government of
The Virgin Islands of the United States


Office of the Government Secretary
Charlotte Amalie, St. Thomas 00801

May 5, 1967


Honorable Ralph M. Paiewonsky
Governor of the Virgin Islands
Charlotte Amalie, St. Thomas
Virgin Islands of the United States

Dear Governor Paiewonsky:

As promised in our conference of May 1, 1967, which

was held in your office concerning Bill No. 3329 and certain

related portions of Bill No. 3292 of the Seventh Legislature,

First Special Session, this letter is being written to recapitu-

late the views I expressed at that time.

Bill No. 3329 is supposedly designed, according to its

title, To Revise the Procedures for the Licensing of Businesses

Professions, Occupations and Trades in the Virgin Islands,

and for Other Purposes. This bill in fact provides for no new









or revised procedure in the processing of licenses. It merely

spells out in great detail the administrative procedure pre-

sently being employed by this office in the processing of

license applications which a mere look at a license application

form can verify.

What Bill No. 3329 would accomplish however, if signed

into law, are:

1. Transfer of the licensing functions from the

Office of the Government Secretary to that

of the Commissioner of Finance.

2. Provide for imposition of a limitation on the

number of liquor licenses.

3. Substantially increase the cost of administer-

ing the licensing functions.

For public consumption, the reason given for the pro-

posed transfer of the licensing functions is that it would

"strengthen the executive branch of the government". The

advocates of the bill do not say how this "strengthening"








is going to be realized -- presumably by the politically moti-

vated miracle of merely transferring it into the Department

of Finance, the Department primarily concerned with the

collection of taxes.

This argument loses sight of a basic difference between

the functions traditionally administered by the Department of

Finance and of those incident to the licensing of businesses,

professions, occupations, and trades. That is, in case of

the former, the Government is concerned with revenue pro-

ducing functions, whereas in case of the latter, it is con-

cerned with regulating the conduct of certain activities --

two entirely different and unrelated concepts.

Further evidence of the predominance of the regulatory

aspect of the licensing functions can be found in the affixing

of the Seal of the Government of the Virgin Islands on each

license -- the custody of which Seal is the sole responsibility

of the Government Secretary as provided in Section 12 of the









Organic Act. If Bill No. 3329 were to be approved, the

affixing of the Seal would certainly give rise to an awkward

problem.

With respect to the provision for the limitation of liquor

licenses, suffice it to say for purposes of this letter that,

considering the discussions and statements on and off the

Legislative floor of which this provision apparently is a pro-

duct, its real objective is, to say the least, very questionable.

On the question of cost, presently the licensing functions

are being performed under the jurisdiction of the Government

Secretary by an Administrative Secretary at $5,520 per

annum and a Clerk Typist III at $3,828 per annum -- a total

of $9,348 per year in salaries, excluding that of the Govern-

ment Secretary .

It should be noted at this point that in addition to their

duties in connection with the processing of licenses, the two









employees referred to above are also responsible for all the

filing in the Office of the Government Secretary.

Even in spite of this, the Comptroller of the Virgin

Islands in Finding F of his Audit Report No. 251-66-21 for

the fiscal year ended June 30, 1966, as forwarded to you

under date of February 2, 1967, still said that:

"There are two employees in the Office of

the Government Secretary who devote 90-

95% of their time to the licensing function.

Their workload is particularly heavy during

the few months in which most licenses are

renewed. Thereafter, they are involved in

issuing licenses to new applicants, renewals

to delinquents, and in preparing and main-

taining the delinquent list periodically

transmitted to the Commissioner of Public

Safety for referral to license enforcement








officers.

"In our opinion, the present workload

of these two employees is not sufficient

to keep them fully occupied after about

March each year."

Notwithstanding the foregoing, under the provisions of

Bill No. 3329, and as further spelled out in Section 1E7 of

Bill No. 3292, An Act to Provide Appropriations for Salaries

and Expenses for the Operation of the Government of the

Virgin Islands During Fiscal Year July 1, 1967 to June 30,

1968, the same licensing functions now being performed by

this office -- minus the filing duties for the entire office --

will be administered under the jurisdiction of the Com-

missioner of Finance by a Deputy Commissioner of Finance

at $9,500 per annum, a Chief Licensing Officer at $6,500

per annum, an Executive Secretary (to be transferred from

the Office of the Government Secretary -- the fact that this









employee never has had nor now has anything to do with

licensing notwithstanding) at $6,500 per annum and a Clerk

Typist III at $3,828 per annum, a total of $26,328 in salaries,

excluding that of the Commissioner -- $16,980 more (almost

double the cost) for administering this function that it is now

costing the Government.

When, in the face of the above enumerated facts and

statements such as that attributed to Senator David Hamilton

that "this is not a bill of which he is proud to vote . .

calling the idea of taking powers away from the Government

Secretary deplorable . and adding that he voted for it

under duress, the real reasons for the passage of Bill

No. 3329 must be found outside of those normally acceptable

objective administrative considerations which would influence

such action.

I believe it to be obvious to anyone who has followed

objectively the attitude of the Legislature toward this office








that the proposed measure is without doubt another in the

long series of politically motivated acts designed to em-

barrass, humiliate, and harass the Government Secretary

and downgrade his office. I do not believe that the Congress,

the White House, or the Department of the Interior intended

to have nor would condone the lowering of this office by the

partisan unrestrained exercise of Legislative power nor

through Legislative usurpation of executive power.

It is my considered opinion that in the best interest of

the Government of the Virgin Islands Bill No. 3329 be vetoed

-- and I so urge.

Sincerely,



Cyril E. King
/s/ Government Secretary








Appendix B


Government of
The Virgin Islands of the United States



Office of the Government Secretary
Charlotte Amalie, St. Thomas 00801



May 12, 1967

Honorable Ralph M. Paiewonsky
Governor of the Virgin Islands
Charlotte Amalie, St. Thomas
Virgin Islands of the United States

Dear Governor Paiewonsky:

Attached for your information is copy of memorandum

addressed to the Budget Director, dated May 12, 1967, in

response to her request for an analysis of and recommenda-

tion on the provisions of Bill No. 3292, An Act to Provide

Appropriations for Salaries and Expenses for the Operation

of the Government of the Virgin Islands During the Fiscal

Year July 1, 1967, to June 30, 1968, insofar as said bill

relates to this office.








In forwarding the enclosed, I deem it my duty to make

available to you the following additional comments with res -

pect to what I sincerely believe to be the likely effect of this

bill -- if approved as is -- upon the ability of this office to

discharge with any appreciable degree of effectiveness and

efficiency even the most ordinary and routine duties and

responsibilities of this the second ranking office in the Execu-

tive Branch of the Government of the Virgin Islands.

Bill No. 3292 as passed by the Legislature not only

denies for the sixth consecutive time the Administration's

request as embodied in your proposed budget for funds for the

position of Assistant Government Secretary -- but it also

deletes the presently occupied and vitally important position

of Executive Secretary.

In addition, this bill proposes to further impede the

effectiveness and efficiency of this office, as well as gives









rise to vexing morale problems, and thus cast reflection on

the incumbent by:

1. Removing certain selected positions from

the classified system and placing them in

the unclassified system while leaving their

counterparts in the classified system in

order to:

a. Reward political supporters;

b. Punish those who are believed

to have dared to exercise their

democratic right of favoring in

the 1966 Campaign a candidate

or candidates other than those

who ran on the Unity-Democratic

Ticket;

c. Threaten those who are believed

to be "on the fence" or whose

degree of political support for









the Unity-Democratic faction

is believed to be questionable.

2. Destroying any semblance of the established

basic public administration principle of equal

pay for equal work by for example:

a. Approval of an increase for

the Recorder of Deeds in

St. Croix while disapproving

an equivalent increase for the

Recorder of Deeds for St.

Thomas whose workload is

somewhat heavier than that of

the Recorder in St. Croix.

b. Removal of certain positions in

the Tax Assessor's Office in

St. Croix from the classified to

the unclassified service and at









a rate of pay which is far below

employees doing identical work

in the St. Thomas office;

c. Removal of the Secretary and the

Property Record Clerk in the Tax

Assessor's Office in St. Thomas

from the classified to the unclassi-

fied service and increasing their

pay to the point where there is no

appreciable difference between

their salaries and those of the

technicians in the St. Croix Office

referred to above and who are per-

forming such duties as Deputy Tax

Assedsor, Building Appraiser, and

Land Appraiser.








3. Creating such a morale problem as to make

it impossible to expect what would be left of

"the staff" to feel any sense of dedication to

its duties or to exert any real effort to con-

tribute toward the effective efficient dis-

charge of the responsibilities of the office.

There is just no objective or administratively logical

explanation to the foregoing. It merely provides added

evidence of the fact that we are faced again in this instance

as we have in too many other instances with the now all too

familiar pattern designed ultimately to achieve the apparently

avowed purpose of reducing the Office of the Govermnent

Secretary to shambles for no other discernible reason than

for purely partisan political purposes.

Basically the budget is supposed to reflect some sense

of direction, some conception of what kind of society the

Administration is in the process of constructing, as well as









the estimated cost to the community. It was never intended

to nor should it serve -- as Bill No. 3292 proposes to do, at

least insofar as it relates to this office -- as a vehicle by

which a militant faction of a political party having won an

election can reward their friends, punish those who dare to

exercise their democratic rights in a way which does not meet

with the approval of the party in power, and threaten those

who are believed to be "on the fence".

And yet, an impartial objective analysis of the budget

for this office for the ensuing fiscal year leaves no doubt that

the seemingly insatiable drive for absolute unquestioned poli-

tical allegiance rather than accepted fundamental and objec-

tive administrative considerations influenced the denial of the

request to reinstate an appropriation for the position of

Assistant Government Secretary and the proposed abolition

of the existing, presently occupied, and vitally needed position

of Executive Secretary.








For example, how else can anyone explain or justify

denying the Government Secretary of the services of the em-

ployee occupying the position of Executive Secretary who

takes care of all his secretarial work, including the handling

of reports, etc. from banks under the jurisdiction of the Bank-

ing Board, taking of verbatim minutes of all Banking Board

meetings, insurance hearings, and other administrative

hearings; an employee who also drafts proclamations, annual

and other specially required reports, as well as substitutes

for the Federally paid Secretary in her absence.

In view of certain misinformation, it is important also

to mention here that the "Private Secretary" referred to in

the budget as passed is misleading in that the incumbent of

that position devotes 100% of her time to insurance. And the

Federally paid Secretary is responsible with the assistance

of another insularly paid employee for processing of pass-

ports and notaries public applications, registration of trade

marks, and numbering and distributing bills as acted upon by









the Governor.

There can be no denying the fact that the Office of the

Government Secretary -- the second ranking office in the

Executive Branch of the Government of the Virgin Islands --

is entitled to:

1. Adequate staff to enable it to discharge

effectively and efficiently the responsibilities

entrusted to it.

2. Freedom to exercise recognized and accepted

administrative perrogative of jurisdiction over

the selection, salaries within existing personnel

rules and regulations, and other personnel

matters incident to the staff.

It is inconceivable that the Office of the Government

Secretary for purely partisan political reasons would be sub-

jected to the kind of budgetary strangulation and personnel

raids as are evidenced in Bill No. 3292 while so many other








areas experience great difficulty in effectively utilizing on a

full time basis all of the budgeted and assigned personnel.

I urge the initiation of the necessary corrective mea-

sures to correct this deplorable, irresponsible situation to

which Bill No. 3292 as passed gives rise.

Sincerely,



Cyril E. King
/s/ Government Secretary




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