• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 General information
 Highlights of the year
 Legislation
 Virgin Islands water and power...
 Agency for the management of former...
 Public utilities commission
 Bond issue and interim financi...
 Control of processing of woolen...
 Control of manufacture of...
 Office of public relations and...
 Office of the government secre...
 Department reports
 Conclusion






Group Title: Annual report of the Governor of the Virgin Islands to the Secretary of the Interior.
Title: Annual report of the Governor of the Virgin Islands
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00015459/00001
 Material Information
Title: Annual report of the Governor of the Virgin Islands
Alternate Title: Annual report - the Governor of the Virgin Islands
Annual report of the Governor of the Virgin Islands to the Secretary of the Interior
Annual report, Virgin Islands
Physical Description: v. : tab. ; 24 cm.
Language: English
Creator: Virgin Islands of the United States -- Governor
Publisher: United States Department of the Interior
Place of Publication: Washington, D.C.
Manufacturer: United States Government Printing Office
Publication Date: 1965-1966
Frequency: annual
regular
 Subjects
Subject: Politics and government -- Periodicals -- Virgin Islands of the United States   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
Spatial Coverage: United States Virgin Islands
 Notes
Numbering Peculiarities: Report covers fiscal year.
General Note: Title varies slightly.
General Note: Vols. for 1925/26 issued as Senate document 170, U.S. 69th Congress, 2d session.
 Record Information
Bibliographic ID: UF00015459
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ltqf - AAA5018
oclc - 01235215
lccn - 26027791
issn - 0363-3438

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
    General information
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
    Highlights of the year
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
    Legislation
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
    Virgin Islands water and power authority
        Page 18
        Page 19
    Agency for the management of former VICORP properties
        Page 20
    Public utilities commission
        Page 21
        Page 22
    Bond issue and interim financing
        Page 23
    Control of processing of woolen yard goods
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
    Control of manufacture of watches
        Page 29
        Page 30
        Page 31
        Page 32
    Office of public relations and information
        Page 33
        Page 34
    Office of the government secretary
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
    Department reports
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
        Page 101
        Page 102
        Page 103
        Page 104
        Page 105
        Page 106
        Page 107
        Page 108
        Page 109
        Page 110
        Page 111
        Page 112
        Page 113
        Page 114
    Conclusion
        Page 115
        Page 116
Full Text







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UNIVERSITY

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1966 ANNUAL REPORT

THE GOVERNOR OF THE

VIRGIN

ISLANDS
TO THE SECRETARY OF THE INTERIOR


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For sale by the Superintendent of Documents, U.S. Government Frinting Office
Washington, D.C. 20402 Price 60 cents




















LATIN'I
AMERICA










Contents


General Information____ 1
Highlights of the Year_ _---------------------------------- 6
Legislation ---- _-------------- ------------------------- 13
Virgin Islands Water and Power Authority ------------_--- 18
Agency for the Management of Former VICORP Properties ----- 20
Public Utilities Commission--------------------------------- 21
Bond Issue and Interim Financing-_ ---_------------------ 23
Control of Processing of Woolen Yard Goods -_---_---------- 24
Control of Manufacture of Watches ---------------------------29
Office of Public Relations and Information ------------------ 33
Office of the Government Secretary ------------------------ 35
Departmental Reports:
Department of Education-------------------------------- 43
College of the Virgin Islands -- -----------_---------- 50
r Department of Health-------------------------- ---- 52
Department of Social Welfare -----------------_----- 59
Department of Commerce --------------------------- 64
Department of Agriculture--___ ------------------- -- 68
S Department of Labor_ _ ------------- ------------ 69
Virgin Islands Employment Security Agency __----------- 71
Department of Public Works----------------------------- 74
Department of Finance--_------------------------------ 75
Office of the Director of the Budget ----------------------- 85
Department of Housing and Community Renewal -------- 96
Department of Property and Procurement _-- ------------ 99
Department of Law_------------------------------------ 101
Department of Public Safety _--------_----------------- 102
The Municipal Court of the Virgin Islands_ __ _-----------_ 107
Office of Probation and Parole_--------------------------- 109
Virgin Islands Planning Board _--------------------------- 110
Division of Personnel .------- ----------------- ------- -- 112
Selective Service-----___ --- ---------------------------- 113
Conclusion--____- ---------------------------------------- 115







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General Information


History

Christopher Columbus, sailing to the
New World on his second voyage in 1493,
dropped anchor on the north side of St.
Croix and the island's first "visitor" took
in the unspoiled tropical beauty and roll-
ing hills of a Caribbean paradise. The
spot is known today as Salt River Bay,
one of the many picturesque inlets so pop-
ular with modern-day sailors who cruise
the sparkling waters around the U.S.
Virgin Islands.
The Great Navigator named his "dis-
covery" Santa Cruz, meaning "Island of
the Holy Cross" and sent a landing party
ashore to replenish the ship's dwindling
water supply. Instead of the warm wel-
come visitors receive today, Columbus'
men were repulsed by the fierce Carib
Indians. No further attempts were made
to land and colonize until 1555 when the
hostile Caribs were driven from St. Croix
by the soldiers of King Charles V of
Spain.
Columbus was so impressed with the
beauty of the island chain, he christened
them "Las Virgenes" in honor of St.
Ursula and her 11,000 martyred virgins.
The value of these and the other islands
of the West Indies soon became apparent
to the crowned heads of Europe and col-
onization was encouraged. England,
France, Holland, and Spain vied for con-
trol during the 17th century with sugar as
the principal attraction. So important
was trade with the West Indies that
Great Britain, negotiating with France to
end the Seven Years' War in 1763, seri-
ously considered keeping the island of
Guadeloupe instead of Canada.
Denmark played the most important
role in the development of the U.S. Virgin
Islands. Entering the picture in 1671, she
chartered the West India Company and
began serious colonization of St. Thomas


and St. John. St. Croix 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.
Thus began a golden age of commerce
and peaceful development for the Virgin
Islands, blessed by the Danish policy of
neutrality and liberal trading laws.
Ships of all the nations of Europe, car-
ried to the fine harbor of Charlotte
Amalie on St. Thomas by the constant
easterly trade winds, gathered there and
a booming trade with the New England
States of the new American nation, sup-
ported the burgeoning island economy.
Sugar was king and its influence was
felt everywhere. Throughout the islands
of St. Thomas, St. Croix, and St. John,
massive stone windmills were erected for
grinding cane. Many of these towers re-
main reminders of a bygone era and evi-
dence of a once flourishing plantation
life.
With wealth came the unfortunate by-
products, greed and avarice. The Carib-
bean became the hunting ground of such
notorious pirates as Captain Kidd and
Edward Teach, the notorious Blackbeard.
It is said the Virgin Islands were spared
the depredations of these buccaneers by
paying "protection" in the form of sanc-
tuary and commercial privileges.
Sugar brought great prosperity to the
islands and the plantation owners. It
also brought misery and privation to the
thousands of slaves who were introduced
from Africa in the 1680's to work the
canefields. Their suffering finally
erupted into revolt. On St. John, after a
bloody mutiny,-the slaves held the islands
for 6 months until the French forces ar-
rived from Martinique to help the Danish
masters regain their land. Legend has it
that the last survivors of that ill-fated
uprising committed mass suicide by





plunging over a cliff or shooting them-
selves rather than face a return to
servitude.
Slavery was finally abolished by an
enlightened Denmark in 1848, 15 years
prior to the publication of the U.S. Eman-
cipation Proclamation. From then on,
sugar decreased in commercial impor-
tance in the Virgin Islands, outdone by
the more favorable conditions for cane
operations in Cuba and elsewhere.
The United States took its first inter-
ested look at the islands during the Amer-
ican Civil War. However, a purchase
agreement fell through when the Senate
refused to ratify the negotiations in 1870.
Bargaining continued throughout the
century but it wasn't until World War I
that the United States moved decisively.
Fearing a German seizure that would
give U-boats a base in the Caribbean, the
United States bought the Danish Virgins
in 1917 for $25,000,000. The U.S. Navy
was delegated to administer the islands
and assumed responsibility on March 31
of that year.

Geography

The U.S. Virgin Islands lie some 1,434
nautical miles southeast of New York
City; 991 miles front 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 impor-
tant in the days of sail, at the eastern
end of the Greater Antilles and the north-
ern end of the Lesser Antilles.
The U.S. Virgins consist of some 50
islands and cays of volcanic origin. Their
neighbors, the British Virgins, are made
up of another 30 similar islands and cays.
Only three islands in the U.S. group
are of any population or commercial sig-
nificance. The largest of these, St. Croix,
with 84 square miles is, for the most part,
flat, and suited for agricultural use.
Forty miles due north, St. Thomas with
28 square miles, offers dramatic rugged
mountains that rise sharply from the sea


to a height of up to 1,500 feet. A few
miles east of St. Thomas, the island of
St. John with 20 square miles, offers sim-
ilar land and seascapes. Both islands
rise from the same submarine plateau.
Between these two islands and St. Croix,
the Caribbean Sea deepens to a 15,000-
foot trench.
Because of the steep sloping mountain-
sides, very little land on St. John or St.
Thomas is tillable. St. Croix, however,
is well suited agriculturally, and priority
is being given to the advancement and di-
versification of this industry. Until re-
cently, sugarcane was the only important
crop. However, it has been a marginal
one and has cost the local government
large sums of money to cover milling
losses. Consequently, sugar is being grad-
ually phased out and will be termi-
nated as a commercial crop next year.
Over 4,000 acres of prime land will be
utilized under a comprehensive plan now
being developed. This will include broad
research into feasible food crops, middle
range programs for agricultural develop-
ment and a long-range plan to preserve
the agricultural character and natural
beauty of the island.
St. Croix has two improved harbors.
The one at Christiansted, considered to
be one of the most picturesque under the
U.S. flag, attracts pleasure yachts and
medium-size commercial craft from other
West Indian islands. The recently de-
veloped deep water harbor at Frederik-
sted on the east end of St. Croix accom-
modates ocean liners and is responsible
for increased cruise ship traffic to the
island. In addition, 'a full-size airport
with direct jet flights to the mainland
has further enhanced the growing tourist
trade.
St. Thomas, whose agricultural re-
sources are limited by its rugged land-
scape, more than makes up for this de-
ficiency with its excellent natural harbor.
It is one of the ranking ports of call for
cruise ships, and the expansion of its
airport facilities has now allowed for
jet travel to the island.
St. John's main attraction is its un-
spoiled beauty, guaranteed to remain so
since most of the island is taken up by





the Virgin Islands National Park. The
incomparable beaches, breathtaking
mountain views, and lush vegetation
bring an increasing number of visitors
each year, who explore the island's
charm by jeep or 'boat.
The U.S. Virgins enjoy a near perfect
climate. Temperatures stay within the
70 to 90 range with an average
780. The balmy trade winds provide nat-
ural air-conditioning. Humidity is com-
fortably low with rainfall averaging
about 45 inches a year.
There is an abundant variety of tropi-
cal flora ranging from the well-known
hibiscus, bougainvillea, oleander, poin-
settia, and wild orchid, to the less com-
mon African tulip, frangi panti, and lig-
num vitae. Many other flowering trees
and shrubs add to the island's color and
fragrance. Coconut and royal palms are
everywhere while the quieter beaches are
lined with mangrove, mahoe, and sea-
grape trees. Exotic fruits from native
trees grace the tables of Virgin Islanders,
the more popular being mango, soursop,
lime, guava, sugar apple, avocado, pa-
paya, genep, and mammee apple.
Though there is no large commercial
fishing industry, the natives, through
their individual efforts, make fish an
important part of their daily diet. The
Virgin Island waters, particularly in the
game fishing sense, are rapidly becoming
recognized as a prime fishing area. Blue
marlin, wahoo, tuna, tarpon, kingfish,
and bonefish 'are taken the year round
while white marlin and sailfish are
caught during most months. The Virgin
Islands now holds the world record for
the largest blue marlin, officially recorded
at 814 pounds, and caught during the
summer of 1964. Smaller fish also
abound. They include grouper, "old
wife," yellow tail, and angelfish.
The islands provide stone, sand, and
gravel as building materials but there
are no minerals of commercial signifi-
cance.

Government

The Virgin Islands have been governed
by many nations. The flags of Spain,


France, Holland, England, Denmark, and
the United States have flown over all
three islands and St. Croix, for a brief
time, was administered by the Knights
of Malta.
When the United States purchased the
Virgin Islands in 1917, the transition was
accomplished smoothly by retaining the
Danish legal code as the basic law. The
Navy was given responsibility for ad-
ministering the islands until 1931. Mili-
tary, civil, and judicial power were
vested in the Naval Governor, who was
appointed by the President of the United
States.
On February 27, 1931, an Executive
order from the White House transferred
jurisdiction from the Navy to the De-
partment 'of the Interior, and the first
civilian governor was appointed by the
President.
A major change in the method of gov-
erning the islands occurred with the pas-
sage of the Revised Organic Act of 1954,
by which the Congress authorized dis-
tinct executive, legislative, and judicial
branches and provided for a substantial
degree of self-government. Changes in
the act are now under consideration
which, if granted, would give the Virgin
Islands an even greater degree of home
rule.
Presently, the Governor is appointed
by the President of the United States
with the 'advice 'and consent of the Senate.
Working with the Department of the
Interior and its Secretary, the Governor
is responsible for execution of local laws,
administration of all activities of the
executive branch, appointment of depart-
ment heads and other employees. He re-
ports annually to the legislature on the
state of the territory and recommends
new legislation to carry out the various
programs of local government.
The government secretary is also ap-
pointed by the President. In the
absence of the Governor, the government
secretary serves as acting Governor. He
has administrative responsibility for
banking and insurance laws and the
licensing and assessment of real property.
The unicameral legislature is elected
for 2-year terms. There are 11 senators,





2 from St. Croix, 2 from St. Thomas, 1
from St. John, and 6 elected at large by
Virgin Islands voters of all the islands.
Each bill passed must be signed by the
Governor before it becomes law. A two-
thirds vote of the legislature is necessary
to override the Governor's veto. In this
event, the Governor must approve it or
submit it to the President for final action.
The judge of the district court of the
Virgin Islands and the U.S. district attor-
ney are appointed by the President of the
United States. The district court exer-
cises jurisdiction over felony violations
of the local criminal code as well as juris-
diction over crime arising under Federal
law. The municipal court judges, two in
St. Thomas, two in St. Croix, are ap-
pointed by the Governor, and confirmed
by the legislature. The municipal court
exercises jurisdiction over misdemeanor
violations and traffic offenses under the
local law.
Civil cases involving less than $500 are
handled by the municipal court; cases
involving from $501 to $10,000 are han-
dled by either the municipal court or the
Federal court; all cases over $10,000 are
in the exclusive jurisdiction of the Fed-
eral court.
The district court of the Virgin Islands
exercises appellate jurisdiction over the
municipal court in civil and criminal
cases. The U.S. Court of Appeals for the
Third Circuit, Philadelphia, and the U.S.
Supreme Court exercise appellate juris-
diction over the district court of the Vir-
gin Islands.

Finances and Taxes

There are three principal sources of
revenue for the government of the Virgin
Islands from which funds are derived
for capital and operating disbursement.
The largest source, and one that is
growing every year, is from local income
taxes. An act of the Congress of the
United States provides that Federal in-
come tax schedules be applied as a local
tax in the Virgin Islands. Another
major contributor to the treasury consists
of Federal excise taxes collected in the
United States on imports of Virgin Is-


lands products and returned to the local
government as matching funds. In order
to receive funds, the islands must raise
through local taxes, funds which match in
size the excises to be rebated.
In fiscal 1966, the grand total collected
for .capital and operating requirements
was $37,594,187 as compared with $28,-
905,904 in 1965 and $25,674,452 in 1964.
In addition, the Federal Government
assists the islands by appropriations and
grant-in-aid allotments for many activi-
ties in employment services, public as-
sistance, health and disease services,
wildlife, and libraries. There are over
35 such aid programs and appropriations.

Economic Development

Tourism continues to be the most im-
portant industry in the Virgin Islands.
Income from visitors' expenditures dur-
ing fiscal 1966 reached a new record of
$59 million as compared with $54 million
in 1965.
Recognition is being given, however, to
the need for a broader base of industry
and agriculture to provide continuation
of a stable economy. Emphasis has been
placed on attracting a large number of
small manufacturers as well as a few
large industries. These provide year-
round employment at good wages for
many islanders, which have helped bring
about a higher standard of living than
ever existed under the one-crop, one-
industry, sugar economy of old. Virgin
Islanders' per capital income is in excess
of $2,000 and is by far the highest in the
entire Caribbean.
The sale of rum, the distilling of which
is a major industry of the islands, is pro-
moted through the Virgin Islands Rum
Council, supported jointly by the rum dis-
tillers and the local government.
Tax exemptions and subsidy benefits
have long been used by the local govern-
nient to encourage industrial develop-
ment. Incentives for private investment
in hotels, guest houses, industrial con-
cerns, and housing projects include tax
exemptions of up to 16 years and the re-
turn of 75 percent of income taxes in the
form of subsidy.





Virgin Islands manufacturers of goods
that contain not more than 50 percent of
foreign raw materials are allowed duty-
free entry into the United States of their
products under section 301 of the U.S.
Tariff Act. The local government, act-
ing strongly to protect the integrity of
this section, also guards against abuses
by setting up tax quotas for certain clas-
sifications of products. Production in ex-
cess of quotas is taxed at a much higher
rate.

Population

The Virgin Islands are in the midst of
a population explosion. Currently, the
resident population is estimated at 50,000,
including alien workers and part-time
residents, and it is expected this will
jump to 60,000 by 1970.
The 1960 census recorded the resident
population at 32,099. A breakdown of the
1960 population figures records 15,930
males and 16,169 females. Residents of
urban communities numbered 18,017;
14,082 lived in rural areas, while 8,892
were enrolled in schools. The total labor
force was 11,334, of which 7,363 were
male and 3,971 female. Unemployment
was listed at 3.4 percent.
English is the traditional language of
the Virgin Islands. Some French is
spoken by citizens of French descent on
St. Thomas, and many Spanish-speaking
families have come from Puerto Rico,
chiefly settling in St. Croix.
The people are devout and worship in
many churches including Roman Catho-
lic, Anglican, Lutheran, Methodist, Jew-
ish, Moravian, Seventh Day Adventist,
Pilgrim Holiness, Christian Mission,
Dutch Reformed, and Baptist.

Health and Education

The Virgin Islands have set an example
for the entire Caribbean in the preserva-
tion of health, the development of edu-
cation, and the replacement of slums
with modern housing.


Each year sees further advances in
hospital and public health services, and
two multimillion-dollar health centers
designed to provide adequate facilities
for the long-range needs of the com-
munity will reach to construction stage
in 1968. Diseases once associated with
tropical climates have long since been
eradicated, and the climate eliminates
the need for home heating or heavy cloth-
ing, further contributing to the good
health of the Virgin Islands.
Educational standards continue to be
upgraded. Public schools cover kinder-
garten through high school and the
islands' two major high schools have full
accreditation. A crash school construc-
tion program is expected to be completed
during 1967.

Communication and Transportation

All three Virgin Islands enjoy the fa-
cilities of a dial telephone system that is
being constantly expanded to meet the
growing needs of the community. Ma-
rine cables have been installed that has
made possible direct dialing to Puerto
Rico and to the mainland in early fiscal
1967. Worldwide radio telegraph service
is also available.
The islands are served by three radio
stations, one television station, and six
newspapers, four of them dailies.
Most visitors come by air, flying in jet
planes to Puerto Rico and then by smaller
planes to the islands. St. Croix's new jet
airport serves a growing number of direct
jet flights from the mainland to the
island. Except for short-stay cruise ship
passengers, there are very few people
who arrive by boat. Small native sloops
and charter boats carry travelers be-
tween islands and to the nearby British
Virgin Islands.
Local transportation is provided by
bus, taxis, and rented vehicles. Most
roads are paved, with continued improve-
ment each year, and driving is on the left
side of the road.











Highlights of the Year


Significant progress in broad areas of
the economy and major sociopolitical ad-
vancement highlighted fiscal year 1965-66
in the U.S. Virgin Islands.
It was a year in which many of the
long-range plans for orderly but rapid
development, begun 5 years ago, became
operational. Although population pres-
sures continued to mount, changes and
improvements in basic services were such
that major breakthroughs were realized
in efforts to keep pace with demands.
Emphasis continued in the areas of
more and better housing, improved medi-
cal services, upgrading of education and
classroom facilities, and the expansion
of power and water supplies.
The present prosperity of the Virgin
Islands has been the result of a flourish-
ing tourist trade and the introduction,
through government incentives, of new
industry and business.
The need for maintaining this economic
momentum was recognized by the Con-
gress of the United States, the Depart-
ment of the Interior, and other Federal
agencies which continued to work closely
with the territorial government to pro-
mote a steady, healthy progress for the
Virgin Islands.

Significant Federal Legislation

To realize broader authority in the con-
duct of insular affairs, the Government
of the Virgin Islands during the fiscal
year continued in its efforts to impress
upon the Congress the need for progres-
sive legislation that would reflect a na-
tional faith and confidence in the
territory.
Such attitudes were clearly visible on
the part of Congress in the support it
afforded an elected governor's bill for the
Virgin Islands which was introduced


along with a similar measure for the
territory of Guam.
The measure was considered by com-
mittees of both Houses. Following pub-
lic hearings in which the unqualified
endorsements of the Department of the
Interior and the testimonies of Virgin
Islanders were entered into the record,
the bill was passed out of these congres-
sional committees and recommended for
passage by the full House of Representa-
tives and the Senate.
At the close of the fiscal year, confi-
dence remained high that the elected
governor's bill would be passed and signed
into law.
Concern for the Virgin Islands was evi-
denced further by the Congress in the
introduction and committee considera-
tions of legislation affecting the power
and authority of the legislature of the
Virgin Islands and the composition of
this body.
A reapportionment bill which would
increase the number of Virgin Islands
legislators from 11 to 15 was introduced
in the Congress as well as a measure
which would allow these insular law-
makers to set their own salaries. Again,
confidence remained high at the close of
the fiscal year that these two important
bills would receive the full approval of
Congress.
To provide the government of the Vir-
gin Islands greater latitude in its bond
financing program, the Congress further
considered legislation that would raise
the ceiling on revenue bond issuances
from $10 million to $30 million. The
close of the fiscal year promised passage
of this measure.

Industrial Development Continues

During the fiscal year most economic
indicators for the Virgin Islands showed
substantial advancement on the indus-





trial scene. Due to its natural physical
advantages, the island of St. Croix con-
tinued to lead over St. Thomas as the
center for industrial development in the
Virgin Islands.
With the establishment of the Virgin
Islands Development Agency which is
charged with the administration of the
Harry S Truman Airport and commer-
cially developed sections of the subma-
rine base on St. Thomas, the first major
breakthrough in long-range plans to
attract industries to St. Thomas occurred.
The Virgin Islands Planning Board,
working in conjunction with the develop-
ment agency, has designated a site suited
for industrial development on St. Thomas.
This is expected to result in a reversal of
previous situations in which industries
desirous of expanding or establishing
operations in St. Thomas were obliged to
cancel plans due to the lack of manufac-
turing sites on this island.
Despite the generally bright picture,
various uncertainties remained which, to
some extent, thwarted industrial expan-
sion in certain areas. The handicaps
imposed by the uncertainties of the con-
tinued operation of section 301 of the
tariff law were not enough, however, to
discourage various new business ventures
in the Islands. A total of five new in-
dustries was established during the
course of the fiscal year. These included
two watch assembly plants, an optical
assembly plant, a button manufacturing
operation, and a factory for the produc-
tion of work gloves.
Insurances of a prosperous industrial
future for the islands were reflected in
the activities of two major industries
establishing operations on St. Croix. A
large alumina plant entered the final
phase of construction with full produc-
tion expected to begin in the early part of
calendar year 1967. Rapid progress was
also being made on the construction of a
large petroleum refinery on St. Croix
which, once in full production, is expected
to attract satellite industries to St. Croix
based on petrochemical manufacturing.
This will provide still greater economic
diversification for the islands in that
various manufacturers will be encour-


aged to build plants in the vicinity of the
refinery to utilize the byproducts of the
operation for plastics and other products.

Watch Industry Saved

While fiscal year 1965 ended on a note
of uncertainty with regards to the future
of the watch industry in the Virgin
Islands, fiscal year 1966 saw actions taken
on the part of the congress and the legis-
lature of the Virgin Islands which are
expected to assure the continuation of
these operations.
During the year, the legislature of the
Virgin Islands imposed controls on the
assembly and manufacturing of watches
which were implemented by executive
action. These controls were designed to
limit and mitigate the danger to the sta-
bility of employment in the Virgin Islands
and to the commercial relations of the
islands with the United States.
The local controls involved a produc-
tion tax on each watch manufactured or
assembled in the Virgin Islands when sold
or removed for sale. Control was fur-
ther extended by allocating production
quotas for manufacturers. What seemed
to be a satisfactory solution to the prob-
lem was challenged by three watch firms
which questioned the validity of the con-
trolling measures in actions brought
before the district court of the Virgin
Islands. The court, ruling in favor of the
plaintiffs, has held that the production
tax is in effect an illegal export tax. The
cases are now on appeal before the Court
of Appeals for the Third Circuit.
On the Federal level, the Congress con-
tinued its study of the tariff schedules of
the United States with respect to the
dutiable status of watches, clocks, and
timing apparatus from the insular pos-
sessions of the United States. (See re-
port on control of manufacture of
watches, p. 66.)

Island's First Bond Issuance

With authority granted by the Con-
gress during fiscal year 1965, the govern-
ment of the Virgin Islands in fiscal 1966
prepared the territory's first public offer-
ing of general obligation bonds in the




















a 7


Hess Oil Virgin Islands Corp., St. Croix.










.L

I I ; IT
'i ', .* B .,


7 1- ^
.. ,. .- .. ^ '


Harvey Aluminum Corp., St. Croix.





amount of $5,200,000. The sale of these
bonds would repay the interim financing
of school construction and costs associ-
ated with the planning of health centers
for St. Thomas and St. Croix.
In October, a notice of sale was pub-
lished and the bids opened in November in
the New York offices of the government's
financial consultants. Thirteen bids were
received for these general obligation
bonds, and an award was made to a syn-
dicate headed by Bankers Trust Co. of
New York which bid a net interest cost of
3.5365 percent.
The response to the Government's first
bond sale was gratifying and Wall Street
interests judged the sale highly success-
ful in view of the then current market
conditions.

Power and Water Expansion

The Virgin Islands Water and Power
Authority, faced with the demands of a
growth rate of 20 to 25 percent per year,
implemented a vigorous program of ex-
panding water and power services in the
islands. A $2,500,000 electric generator
with a capacity of 10,000 kilowatts for
St. Croix was contracted for. This unit
is further designed to provide for the
later addition of a 1 million gallons per
day desalting plant.
In November 1965, one of the world's
largest desalting plants capable of pro-
ducing 1 million gallons of fresh water
per day was dedicated in St. Thomas.
Coupled with this unit is a 7,500-kilowatt
turbogenerator.
In its efforts to upgrade and expand
facilities, the authority during the fiscal
year installed a total of 27 miles of elec-
tric distribution lines on St. Croix and
approximately 13 miles in areas covered
by the St. Thomas division. The increas-
ing demand for power was further evident
in the fact that customers increased by
1,177 subscribers during the year and
total electrical generation topped the
previous year by 25 percent.
With final congressional approval ex-
pected on legislation that will raise the
revenue bond ceiling to $30 million, the
authority will be able to institute a 5-


year expansion program involving major
construction of production facilities.

Economic Growth

The economic prosperity of the islands
which has allowed for the expansion of
services offered in the areas of health,
education, and welfare, was most evi-
dent in the fact that government revenues
continued to increase, topping the previ-
ous year by more than $5 million. Per
capital income remained at approximately
$2,000 a year with bank assets soaring
to over $100 million. Gains were noted
in tourist expenditures with a $5 million
plus increase over fiscal 1965.
The employment picture was excellent
for the year with job opportunities ex-
panding as a result of major indus-
trialization on the island of St. Croix and
building and construction activities on all
islands. With economic diversification
creating such employment opportunities,
labor-management relations assumed so-
phisticated levels of concern. Disputes
evolving out of these relationships were
amicably resolved, however, and in many
instances through the mediating influ-
ences of the Virgin Islands Department
of Labor.
Perhaps one of the most meaningful
indications of the vitality and stability
of the economy is seen in the continued
expansion of banking and financial activ-
ities by leading national and interna-
tional institutions. During the fiscal
year, First National City Bank of New
York began operation in St. Croix, and
plans later to establish in St. Thomas.
Both the Virgin Islands National Bank,
an affiliate of the First Pennsylvania
Banking & Trust Co., and the Chase Man-
hattan Bank opened additional branches
in St. Thomas. Barclays Bank D.C.O.
of London, England, was licensed to do
business in the islands, adding to the
growing list of financial institutions that
also includes the Bank of Nova Scotia
and the First Federal Savings & Loan
Association of Puerto Rico.

Gains in Health and Housing
Continuing concern was evidenced dur-
ing the year in the areas of health and





housing. The number of emergency
housing units increased over the year, but
a wide gap remained between available
units and the number of applicants on
file. Urban renewal projects in the is-
lands progressed in general but experi-
enced delays due to the time-consuming
processes involved in land acquisition
through condemnation proceedings. The
islands' newest public housing project,
John F. Kennedy Terrace, was dedicated
on St. Croix during the year, providing
an additional 200 units on that island.
Existing hospital and medical care fa-
cilities continued to be taxed as a result
of population increases. Public health
services were broadened with the estab-
lishment of additional clinics and the
professional staffs on the three islands
increased to handle the increasing work-
loads.
The government's concerted efforts in
these two major areas of concern are
described in the more detailed depart-
mental reports to follow.

Strides in Education

With school enrollment figures continu-
ally rising, the government last year
formulated a crash school building pro-
gram designed to create an additional 113
classrooms in the islands. Fiscal year
1966 saw the implementation of this plan
with construction continuing in various
stages of progress.
Expected to be ready for occupancy
during the early part of calendar year
1967 will be a central senior high school
on St. Croix; the Wayne Aspinall Junior
High School, and the Tutu Elementary
School on St. Thomas. Equipment for
these new facilities will be purchased
with funds available from the bond issue
program.
Increased operating funds in the De-
partment of education enabled the de-
partment to effectively move forward
with its programs designed to strengthen
curriculum which has begun to show
notable progress. The Nisky Demon-
stration School completed a second year
of operation and significant results of
this unique project indicate that stu-
dent performances are markedly higher


than they were last year. Activities of
this department are handled more in de-
tail further on in this report.

College of the Virgin Islands Grows

In size, strength, and maturity, the
College of the Virgin Islands in its third
year of operation progressed and estab-
lished itself firmly in the educational
picture of the islands.
To meet the pressing needs for new
residential facilities, a major building
program is to be launched in the early
part of fiscal year 1967. The plan in-
cludes a women's dormitory, three fac-
ulty houses, and a six-unit faculty apart-
ment, together with site improvements.
This construction will mark the first
phase of an overall master plan designed
to provide a modern physical plant to
house the programs and facilities of the
college.
The college's second commencement in
June 1966 saw the number of graduates
increase from 11 to 33. Total enrollment
at the college exceeded projections by
approximately 30 percent. Indications
are that in fiscal year 1967 enrollment of
full-time students will increase at least
75 percent.
The college's administrators and fac-
ulty members were gratified to note a
consistent improvement in the quality of
each new class of students. This is
viewed as a reflection upon the quality of
preparation and the higher motivations
inherent in the prospect of continuing
their education. The college's precollege
summer school program also has had di-
rect influence upon the quality of in-
coming freshmen.
With the institution of a 4-year pro-
gram in teacher education involving a
cooperative arrangement with New York
University, the board of trustees ap-
proved the progress of the college to 4-
year baccalaureate status, a major step
in firmly establishing advanced educa-
tion in the Virgin Islands.

Tourist Facilities Expand

The growing popularity of the Virgin
Islands with tourists has occasioned a





marked increase in hotel construction
and expansion.
A 200-room waterfront hotel is under
construction in St. Thomas and is ex-
pected to be ready for occupancy during
the 1967 winter season. In St. Croix,
several hotels in the moderate class were
opened, providing needed additional
rooms in this category. In the luxury
class, a major resort facility opened for
occupancy on St. Croix.
Existing hotels on St. Thomas and St.
Croix continued in their efforts to ex-
pand their facilities, and concentrated
concern on the part of hotel manage-
ments to upgrade services was noted.
A major recreational attraction that is
expected to draw large numbers of
visitors from America's golfing circles
opened on St. Croix during the year.
Known as the Fountain Valley Golf
Course, this 18-hole championship layout
was designed by Robert Trent Jones and
is considered by experts to be one of the
finest and most challenging in the
Caribbean.

Direct Jet Service A Reality

The concentrated efforts of the previ-
ous year to expand airline services to the


Virgin Islands culminated during the
year with Pan American World Airways
inauguration of one-plane jet service
from New York to St. Thomas, via St.
Croix.
The territorial government had sup-
ported the petition of Pan American
World Airways to be allowed to start
turn-around service in the Virgin Islands,
eliminating the necessity for extending
such flights to foreign islands. The Civil
Aeronautics Board granted this request.
Pan American World Airways has held
a certificate allowing it to schedule
flights to St. Thomas, a service which was
discontinued some years ago, however.
With the introduction of medium-range
jet aircraft capable of landing on short
runways, Pan American reinstituted this
service into St. Thomas, utilizing Boeing
727 jets on its flights from New York.
During the period January 21, 1966, to
April 24, 1966, there were single flights
southbound on Monday, Wednesday, and
Friday, and northbound on Tuesday,
Thursday, and Saturday. An additional
four turn-around flights per week were
added on April 24.
To Better facilitate landings and take-
offs for these aircraft, the government
of the Virgin Islands planned major im-


Trunk Bay, Virgin Islands National Park, St. John.





provements to the runway and ap-
proaches at Truman Airport, St. Thomas.
This will involve extending the runway
to the west and removing portions of a
hill on the eastern end of the airport.
The need for frequent direct jet sched-
ules to both St. Croix and St. Thomas
has been necessary in order to protect
the competitive tourism position of the
Virgin Islands. The service provided by
Pan American World Airways is a step
in this direction, but the government in
its continuing quest for the ultimate in
such service supports Eastern Airlines
and Trans Caribbean petitions before the
Oivil Aeronautics Board that asks for a
franchise to serve St. Thomas and St.
Croix with direct service.

Cruise Calls Increase
The large increase in the number of
cruise ships visiting St. Thomas and St.
Croix has again put the Virgin Islands
in the forefront as the major cruise ship
area in the Caribbean. Solicitations for
the 1967 winter season resulted in the
scheduling of calls by vessels of the
Italian line after an absence of 3 years.
In addition, Ounard line's major vessel,
the Queen Elizabeth, the world's largest
passenger ship, will also include the
Virgin Islands on its 1967 Caribbean
cruises.

Islands Linked Closer Together
The expansion of -an interisland sea-
plane service as well as lan increase in
the number of regularly scheduled and
charter flights between St. Thomas and
St. Croix facilitated travel between the
islands.
The local telephone company agreed to
institute toll-free calls between St.
Thomas and St. Croix beginning early
in the new fiscal year, further improving
communications between the islands.

Governors' Conference Planning
Nearly a year's effort went into the
preparation of promotional materials and
presentations designed to attract the at-
tention of the Governors of the United
States into holding their 59th annual con-
vention in the Virgin Islands in 1967.
The invitation was extended during the


1965 convention in Minneapolis, Minn., to
be followed by the submission of a for-
mal bid during the 1966 convention in
Los Angeles, Calif. Advertising and pub-
lic relations consultants to the govern-
ment worked closely with 'office of the
Governor and department of commerce
personnel in devising a unique plan in
which the convention would be held
aboard a cruise vessel that would sail
to the Virgin Islands, spending a day
each on St. Thomas and St. Croix.
Expectations are that this invitation
will receive the approval of the Nation's
Governors and insular plans and prep-
arations are continuing on this basis.

The Virgin Islands Appeal

The fiscal year saw well over a half
million visitors coming to St. John, St.
Croix, and St. Thomas. The attractions
that have drawn this record number of
vacationers to the Virgin Islands enjoy a
mass appeal. With continually lowering
airfares and budget package trips, more
and more Americans are discovering the
excellent climate, beautiful beaches, spec-
tacular landscapes, and shopping delights
that these islands afford.
During the year, the islands played
host to an ever-growing number of dis-
tinguished visitors from the United
States and other lands. Vice President
Hubert Humphrey, an honorary citizen
of the Virgin Islands, journeyed to St.
Thomas to dedicate the island's newest
salt water distillation plant and re-
mained for 'a few days of rest and relaxa-
tion on St. John. Cabinet Members,
Members of the House of Representatives
and the Senate, and other Federal offi-
cials have come to call the Virgin Islands
a second home and in the course of the
year visited the islands.
The islands continued to host foreign
dignitaries as active participants in the
U.S. State Department's foreign visitors
program. The government of the Virgin
Islands is particularly proud of its con-
tributions in this area and looks forward
to the continued assistance it may afford
the Nation in presenting to these visitors
the true picture of the American demo-
cratic way of life.












Legislation


During the fiscal year 1966, there were
four sessions of the legislature. The sec-
ond special session of the sixth legislature
was held from August 23 to. August 25,
1965. The third special session was held
from November 22 to November 24, 1965.
The fourth special session was held from
June 8 to June 9, 1966. The second reg-
ular session of the sixth legislature was
held from January 17, 1966, to March 17,
1966.
At the second special session, 36 bills
and 4 resolutions were proposed, 31 bills
and 3 resolutions were adopted, 5 bills
were referred to committee, and 1 bill was
tabled. Thirty-one bills were approved
by the Governor. The resolutions did
not require executive action.
At the third special session, 30 bills and
7 resolutions were proposed. Twenty-five
bills and five resolutions were adopted
and seven bills were dropped. Twenty-
four bills were approved by the Governor
and one was vetoed. The five resolutions
required no action.
At the second regular session of the
sixth legislature, 261 bills and 13 resolu-
tions were proposed. Two hundred and
thirty bills were adopted, of which 189
were approved and 41 were vetoed by the
Governor. Ten resolutions were adopted
not requiring executive action. Twenty
bills were dropped, four bills were re-
ferred for further study, one was not con-
sidered, four were rejected, one was
tabled, and one was left in committee for
study.
At the fourth special session, 72 bills
and 6 resolutions were proposed. Sixty-
five bills were adopted and approved.
Six resolutions were adopted not requir-
ing executive action, five bills were re-
ferred to committee, and two were not
considered.


The following are the most significant
items of legislation adopted during the
year:
Act appropriating $392,100 for construc-
tion of a new Queen Louise Home for
the Aged on St. Thomas.
Act to establish the Virgin Islands Soil
and Water Conservation District.
Act to approve the official zoning maps.
Act to amend the salary schedule for
teachers, guidance counselors, librar-
ians, and other professional positions
in the department of education.
Act to authorize the Governor to enter
into certain agreements with respect
to certain Federal properties in the
Virgin Islands, to provide for the pro-
tection, maintenance, and management
of the same, and for other purposes.
Act to amend the Water Resources Con-
servation Act.
Act to provide for a regime of property
ownership based on the condominium
principle, and for other purposes.
Act to amend the maximum rates for
vehicles for hire on the island of St.
Croix.
Act to amend the Virgin Islands code re-
lating to hours of work for the tourist
service industry.
Act to establish the effective date of sepa-
rate departments of agriculture and of
labor to become effective October 1,
1965.
Act to reorganize the Virgin Islands In-
dustrial Incentive Board.
Act to provide a joint executive and legis-
lative committee to plan for the cele-
bration of the 50th anniversary of the
transfer of the Virgin Islands from
Denmark to the United States on
March 31, 1967.
Act to provide for the disposal of uncol-
lectable claims of the government of the
Virgin Islands.
Act to authorize the participation of the
government of the Virgin Islands in the
programs authorized by the Land and
Water Conservation Fund Act of 1965.
Act to provide for compensation and al-
lowances for members of the legislature
of the Virgin Islands.


249-079 0 67 2





Act to reorganize the board for vocational
education.
Act to impose certain production taxes on
watches manufactured in the Virgin
Islands, and for other purposes.
Act to amend the zoning law to provide
that the maximum height for buildings
in the "C-1" zone shall be not more
than three (3) stories but not to exceed
thirty (30) feet.
Act to authorize the Governor of the
Virgin Islands to execute a certain
agreement relating to the construction
of an oil refinery and other related
facilities in the island of St. Croix,
Virgin Islands, and for other purposes.
Act to make further capital contributions
to the Virgin Islands Water and Power
Authority.
Act to amend the antilitter law to provide
that peace officers shall include mar-
shals, deputy marshals, members of the
police force, environmental sanitation
inspectors of the department of health
and sanitation supervisors of the de-
partment of public works.
Act to authorize the Governor to enter
into such agreements and under such
conditions as he may deem advanta-
geous with departments, agencies, or
instrumentalities of the Federal Gov-
ernment for their occupancy, posses-
sion, or use of properties now owned by
the Federal Government at the former
submarine base and Marine air facility
in the island of St. Thomas, in con-
templation of the transfer of such
properties to the government of the
Virgin Islands.
Act to approve an interstate compact for
education, to establish the Virgin Is-
lands Education Compact, and for
other purposes.
Act to authorize the purchase of approxi-
mately 1.451 acres of land on Sara Hill
on the island of St. Thomas from the
record owners for the purpose of imple-
menting the Harry S Truman Airport
improvement projects; and to make an
appropriation therefore.
Act to amend certain provisions of title
24, chapter 6, Virgin Islands Code re-
lating to the protection of resident
workers.
Act to amend title 33, section 4041, sub-
section (3)(C)(3) (a), (b), (c), and
(d), Virgin Islands Code, regarding
extension of tax exemptions and sub-
sidies for hotels improving their facil-
ities.
Act to adopt and ratify a certain agree-
ment between the Governor and Pan
American World Airways, Inc., to pro-


vide the government with financing as-
sistance for the construction of the
Harry S Truman Airport runway ex-
tension project on the island of St.
Thomas.
Act to amend the Virgin Islands Code to
provide that no person shall be licensed
to operate an automobile for hire who
is disqualified by Federal or local laws
relating to immigration and employ-
ment.
Act to amend title 18, chapter 15, section
301(h) relating to political parties in
the Virgin Islands.
Act to authorize the purchase of approxi-
mately 1.719 acres of land at Estate
Ross on the island of St. Thomas from
the United States of America for the
purpose of constructing thereon a home
for the elderly.
Act to provide for the mandatory report-
ing by physicians and institutions of
certain physical abuses of children.
Act to establish a council on the arts, to
provide for its purposes, powers, man-
agement, and operations, to appropri-
ate funds therefore, and for other pur-
poses.
Act to amend chapter 11, title 24 of the
Virgin Islands Code, relating to work-
men's compensation for policemen, so
as to include prison guards, matrons,
and firemen.
Act to amend chapter 19 of title 14 of the
Virgin Islands Code by the addition
thereto of section 406 relating to the
offense of bribing certain public officers.
Act to provide appropriations for con-
struction, extension, modernization,
and equipment of the Knud-Hansen
Memorial Hospital and the Charles
Harwood Memorial Hospital.
Act to ratify and confirm the acceptance
by the Governor of the Virgin Islands
of an amendment offered by the United
States of America to a grant agree-
ment for a project at Alexander
Hamilton Airport, St. Croix, Virgin
Islands.
Act to establish an educational program
for mentally retarded children, to make
an appropriation therefore, and for
other purposes.
Act to amend title 3, sections 377 and 379
of the Virgin Islands Code, regarding
the citizens advisory commission on
aging.
Act to direct the Governor of the Virgin
Islands to establish a bureau of high-
ways within the department of public
works.
Act to authorize the preparation of a Vir-
gin Islands government manual.





Act to amend section 705, title 3, Virgin
Islands Code, relating to conditions for
service retirement under the employees
retirement system of the government
of the Virgin Islands.
Act to provide for a flood and soil erosion
control study for the island of St.
Thomas, and for other purposes.
Act to approve the rules and regulations
issued under the building code.
Act to provide appropriations for repairs
to and reconstruction of the Harry S
Truman Airport and the Alexander
Hamilton Airport.
Act to authorize the commissioner of
public safety to prescribe a basic train-
ing program for appointees to the de-
partment of public safety.
Act to amend Act No. 1590 (bill No.
2698), Sixth Legislature of the Virgin
Islands, regular session 1966, to ap-
prove the rules and regulations under
the building code.
Act to amend section 535, title 28, Virgin
Islands Code, relating to the right to
redeem real property after a judgment
of foreclosure on a lien.
Act to transfer the bureau of recreation
and sports promotion from the depart-
ment of education to the department of
agriculture, and for other purposes.
Act to increase the homestead exemption
for real property tax from $3,000 to
$5,000.
Act to provide -that banks and foreign
banks shall secure their depositors by
deposit insurance by an agency of the
United States, or in the case of for-
eign banks by comparable insurance by
a jurisdiction foreign to the territory
of the United States.
Act to authorize the granting of certain
tax exemption and subsidy benefits to
ITT Communications, Inc., Virgin Is-
lands, and for other purposes.
Act to provide a cost-of-living bonus to
certain employees of the government
of the Virgin Islands, and for other
purposes.
Act to provide for a school health pro-
gram.
Act to create a surplus property revolv-
ing fund and for other purposes.
Act to transfer the Virgin Islands Board
of Tax Review from the office of the
government secretary to the depart-
ment of property and procurement.
Act to transfer the division of veteri-
nary services from -the department of
health to the department 'of agricul-
ture, and for other purposes.
Act to create the Virgin Islands Commis-
sion on the Status of Women.


Act to fix the regular expenses of the
legislature of the Virgin Islands for the
fiscal year, July 1, 1966 to June 30,
1967, and for other purposes.
Act to remove termination date with re-
spect to the approval of the official zon-
ing maps for the islands of St. Thomas,
St. John, and St. Croix, and for other
purposes.
Act to fix the regular expenses of the
College of the Virgin Islands for the
fiscal year, July 1, 1966, to June 30,
1967, and for other purposes.
Act to authorize the Governor to nego-
tiate agreements with the College of
the Virgin Islands and with a college
or university in the United States for
a program of teacher education and
educational development, and to au-
thorize an appropriation therefore.
Act to authorize the Governor to enter
certain agreement or agreements with
the Peace Corps of the United States
for the construction of camping facili-
ties for trainees at the Estate Mandahl
area in St. Thomas, and for other pur-
poses.
Act to amend certain sections of title 24,
Virgin Islands Code, regarding fair
labor standard and protection of resi-
dent workers.
Act to provide cost-of-living bonuses for
persons receiving annuities or pensions
from the government of the Virgin
Islands, and for other purposes.
Act to adopt and ratify a certain agree-
ment between the Governor of the Vir-
gin Islands and Charles H. Steffey, Inc.,
for the acquisition by the government of
certain wells and property on the is-
land of St. Croix.
Act to provide for a special committee to
study the pay plan for the personnel
of the government of the Virgin Is-
lands, and for other purposes.
Act to authorize the Governor to establish
pay ranges beyond the schedule I
ranges in the pay plan of the govern-
ment of the Virgin Islands for certain
employees.
Act to direct the department of housing
and community renewal to subdivide
the area known as Estate Bordeaux to
provide homesites and related improve-
ments for Virgin Islanders, and for
other purposes.
Act to regulate the practice of pharmacy
in the Virgin Islands, and for other
purposes.
Act to approve a new schedule of fees for
medical care and services, to revise
chapter 17, title 19 of the Virgin Islands
Code, and for other purposes.





Act to provide for the naming of all un- jacent areas in St. Croix, and to make
named streets and for the uniform re- an appropriation for the first stage


numbering of all buildings and homes
on the islands of St. Croix, and St.
Thomas, and for other purposes.
Act to authorize an appropriation of
funds to the College of the Virgin
Islands to complete the first phase of a
3-year project to build an 18-hole golf
course on the main campus of the
college.
Act to provide appropriation for partici-
pation of Virgin Islands sports teams
in Central American and Caribbean
games, and for other purposes.
Act to provide an appropriation for the
government insurance fund and operat-
ing expenses of the department of labor
for the fiscal year July 1, 1966, to
June 30, 1967.
Act to provide an appropriation for the
operating expenses of the Virgin Is-
lands lottery for the fiscal year July 1,
1966, to June 30, 1967.
Act to provide an appropriation for the
marine and aviation fund of the govern-
ment of the Virgin Islands for the pe-
riod July 1, 1966, to June 30, 1967.
Act to provide appropriations from the
internal revenue matching funds for
the fiscal year July 1, 1966, to June 30,
1967, and for other purposes.
Act to provide appropriations for salaries
and expenses for the operation of the
government of the Virgin Islands dur-
ing the fiscal year July 1, 1966, to
June 30, 1967.
Act to provide a grant to the College of
the Virgin Islands for instruction in
stenotype.
Act to amend Act No. 1486, approved
July 2, 1965, to authorize the Governor
to transfer certain functions relating
to the administration of airports in the
Virgin Islands.
Act relative to weather modifications by
a cloud-seeing operation, and for
other purposes.
Act to authorize the issuance of addi-
tional general obligation bonds or other
evidence of indebtedness for planning
for the construction of new hospitals,
and to amend Act No. 1259, approved
October 30, 1964, as amended by Act
No. 1354, approved March 17, 1965.
Act to authorize the issuance of addi-
tional general obligation bonds or other
evidence of indebtedness for purchase
of equipment for new schools and to
amend Act No. 1259, approved Octo-
ber 31, 1964, as amended by Act No.
1354, approved March 17, 1965.
Act to authorize construction of a sewer-
age system for the Grove Place and ad-


thereof.
Act to amend section 2, title 24 of the
Virgin Island Code, as amended, relat-
ing to tourist service industries.
Act to make an appropriation as a grant
to the College of the Virgin Islands for
matching Federal funds for the State
technical service program, and for
other purposes.
Act to reappropriate unobligated balances
of appropriations from internal rev-
enue matching funds, section 28(b)
"(C) (i)," revised organic act of the
Virgin Islands, approved July 22, 1954.
Act to approve a tripartite agreement be-
tween the government of the Virgin
Islands, the College of the Virgin Is-
lands, and New York University relat-
ing to teacher education program, in
accordance with Act No. 1662, sixth
legislature, regular session 1966.
Act to authorize the purchase of the for-
mer U.S. naval submarine base at St.
Thomas from the Government of the
United States, to make an additional
appropriation for the downpayment
thereon, and for other purposes.
Act to authorize the Governor to enter
into an agreement or agreements for
the construction of a moderate-income
housing project at Estate Contant, St.
Thomas, and for other purposes.
Act to amend title 20 of the Virgin Is-
lands Code, to provide right-of-way for
ambulances and certain other vehicles
in emergencies.
Act to establish the nontax revenue fund,
to authorize the reimbursement of Har-
vey Alumina Virgin Islands, Inc., and
for other purposes.
Act to authorize the Governor to nego-
tiate for the amendment of certain
leases of land at the Alexander Hamil-
ton Airport, St. Croix.
Act to provide for the management of
properties operated by the Virgin Is-
lands Corporation.
Act to amend title 33, section 4094, sub-
section (a), to provide therein an ex-
tention of certain tax and fee benefits
for certain housing contractors.
Act to amend Act No. 1714 (bill No.
2818), approved April 15, 1966, relat-
ing to the practice of pharmacy.
Act to provide for a practical nursing
training scholarship program, to make
an appropriation therefore, and for
other purposes.
Act to amend Act No. 1707 (bill No.
2964), to authorize the Governor to es-
tablish pay ranges beyond the schedule






I ranges in the pay plan of the govern-
ment of the Virgin Islands for certain
employees.
Act to extend the time for filing applica-
tions for benefits under the industrial
incentive program.
Act to amend title 33, section 3304, Virgin
Islands Code, relating to collateral
security for government deposits.


Act to provide appropriations from the
essential public projects fund for the
fiscal year July 1, 1966, to June 30, 1967,
and for other purposes.
Act to amend Act No. 1738 (bill No.
2725), "An Act to Provide Appropria-
tions for Salaries and Expenses for the
Operation of the Government of the
Virgin Islands during the Fiscal Year
July 1, 1966 to June 30, 1967."











Virgin Islands Water and Power Authority

(PERSONNEL: 240)-(COLLECTED REVENUES, WATER AND POWER: $3,883,767;
OPERATING APPROPRIATION: $150,000)


The authority completed its first year
of operation since the purchase of its
facilities was made on June 1, 1965, from
the Virgin Islands Corporation. During
the fiscal year, prime consideration was
given to the development of an organiza-
tion geared to operation of facilities on
a profitable business basis and to.ex-
panding facilities in order to meet the
rapid growth of the Virgin Islands.
No general administrative program and
little coordination of activities between
divisions existed at the time of transfer
of facilities to the authority. An execu-
tive director was appointed on October 1,
and on October 21, 1965, the bylaws of
the authority were adopted by the gov-
erning board. Changes were made in
the supervisory personnel to comply with
the organization supervisory manning
table outlined in the bylaws.
The authority is responsible for the
production, transmission, distribution,
and sale of electric energy for the islands
as well as the production of potable water
for St. Thomas. It is faced with a con-
tinuous expansion program to meet the
demands of a growth rate of 20-25 per-
cent per year. The production facilities
transferred to the authority include us-
able equipment of 8,100 kilowatts in
diesel electric power, 2,500 kilowatts in
steam electric power, and a 250,000-
gallon-per-day desalinization plant on St.
Thomas. On St. Croix, production facili-
ties consist of 9,242 kilowatts of diesel
electric power.
On October 21, 1965, a contract was
signed with the Worthington Corp. to pro-
vide an electric generator and accessory
equipment with a capacity of 10,000 kilo-
watts for St. Croix. The cost of this unit
will be approximately $2,500,000, of


which the government of the Virgin Is-
lands appropriated $700,000 during the
fiscal year. The unit is designed to pro-
vide for later addition of a 1-million-
gallon-per-day desalinization p an t.
Completion of the plant is expected next
year.
December 2, 1965, marked the dedica-
tion in St. Thomas of a 7,500-kilowatt
turbogenerator and a 1-million-gallon-
per-day desalinization plant paid for by
direct appropriation of the Virgin Is-
lands Government. Vice President Hu-
bert Humphrey and other dignitaries
took part in the dedication ceremony.
On December 16, the governing board
accepted the assignment of this power
and water plant on St. Thomas from the
Virgin Islands Government. On Janu-
ary 20, 1966, the governing board author-
ized that specifications be prepared for
bids for a 15,000-kw. net steam electric
generator and a 21/-million-gallon-per-
day desalinization plant for St. Thomas.
The executive director was authorized to
engage consulting engineers for the
project.
In May, a physical interconnection of
7,000 kv.-a. was completed with the Har-
vey Alumina Co. for electric energy inter-
change on St. Croix to safeguard that is-
land's power supply.
The governing board, consisting of the
Governor as chairman, the commissioner
of public works as vice chairman, the
commissioner of commerce, one nongov-
ernment member from St. Croix, one non-
government member from St. Thomas,
with the director of the budget acting as
secretary, held seven meetings during the
fiscal year.
Legislation was promoted in Washing-
ton to increase the bonding limit to $30




































Salt water distillation and powerplant on St. Thomas.


million for revenue bonds. Projected
expansion indicates that most of this will
be needed in the next 5 years for major
construction of production facilities of
the authority.
Final sale negotiations for the purchase
of the facilities from the Virgin Islands
Corporation were not completed but con-
siderable time was spent by the chairman
in finalizing these negotiations.
During the year, 27 miles of electric
distribution lines were installed on St.
Croix and 13.08 miles by the St. Thomas
division. There were 13,837 customers


June 30, 1965, and 15,014 customers on
June 30, 1966, representing an increase
of 1,177 customers. During the year,
107,914,300 kilowatt-hours were gen-
erated as compared to 85,847,550 kilo-
watt-hours the previous year, represent-
ing an increase of 25.7 percent.
Water production in St. Thomas was
supplemented by the operation of the
new Westinghouse plant. Sole water
customer is the department of public
works, to whom 129,016,638 gallons of
potable water were sold during the fiscal
year.











Agency for the Management of

Former VICORP Properties

(PERSONNEL: 29)-(OPE'RATING APPROPRIATION: $413,122)


Fiscal year 1966 represented the first
complete year of management of the for-
mer Marine Corps Air Facility (Harry
S Truman Airport) and the former sub-
marine base properties by the government
of the Virgin Islands under a subpermit
agreement from the Department of the
Interior.
Total revenues collected and deposited
in the treasury of the Virgin Islands for
the fiscal year amounted to $411,920.
Revenues collected and deposited in the
VICORP account amounted to $138,084
for a total revenue collection of $550,005.
This is compared with total revenues of
$406,160 collected by VICORP for the
period July 1, 1964, to May 31, 1965. Ac-
counts receivable for the year amounted
to $32,064.
The most significant single occurrence
during the year was the transfer of
ownership of the airport properties from
the Federal Government to the govern-
ment of the Virgin Islands, which took
place on June 16, 1966.
The jet age officially came to St.
Thomas on January 21, 1966, when Pan
American World Airways inaugurated
direct jet service from New York via St.
Croix. During the period January 21,
1966, to April 24, 1966, there were single


flights southbound on Monday, Wednes-
day, and Friday, and northbound on Tues-
day, Thursday, and Saturday. An addi-
tional four turn-around flights per week
were added on April 24, 1966.
Crash rescue operations at the islands'
airports have been upgraded with new
and modern equipment and additional
personnel have been assigned and trained
under the leadership of a director of air-
port safety. There are now three crash
crews, each with a minimum of three
crash guards.
In addition to Pan American World
Airways, Puerto Rico International Air-
ways and Windward Islands Airways
have expanded airline services. Carib-
bean Atlantic Airlines inaugurated turbo-
prop services to the islands in January
1966.
Extensive repairs and modifications
have been made to the terminal building
at Harry S Truman Airport, St. Thomas.
All airlines and air taxis, with the excep-
tion of Caribair, have been or will be re-
located to the west section of the terminal
building. New and enlarged areas have
been provided for the Federal agencies:
U.S. Public Health, Customs, Immigra-
tion, and Agriculture-Quarantine; and
indoor parking has been eliminated.











Public Utilities Commission

(PERSONNEL: 3)-(OPERATING APPROPRIATION: $26,900)


During this fiscal year, the public util-
ities commission moved to thoroughly
examine all utilities subject to its regu-
lations. The public service commission
created by Executive Order No. 9 of
July 24, 1955, no longer exists. Chapter I,
title 30, Virgin Islands Code, by passage
of Act No. 1435 (bill No. 2311) was com-
pletely revamped. Under Act 1435, the
Commission was empowered with greater
responsibility and authority in regulating
utilities subject to the act and to appoint
an executive director to be retained on a
full-time basis.
Membership in the National Associa-
tion of Railroad and Utilities Commis-
sioners was authorized and obtained,
making the Virgin Islands the last of all
States and territories to affiliate. This
new contact was invaluable as a source
of general information and legal advice
on utilities.

Shipping

The West Indian Co reported an in-
crease net profit during the fiscal year
over 1964 and 1965. In what was con-
sidered a quiet year, the company noted
261 ships discharging 35,258 tons of cargo
as compared with 32,029 tons during 1964.
A total of 265 tourist ships utilized their
facilities during fiscal 1966, representing
40 more than in the previous year.
Eleven ships unloaded 3,749 tons of bulk
cement. These ships were lost to steve-
doring because of automation.
The company also reported its percent-
age increase of profit is still below the
legal maximum. However, it plans to
make no immediate request for rate in-
creases since it feels the prognosis for the
next year indicates a somewhat higher
income.


St. Croix has two commercial harbors.
Christiansted, with a barrier reef and
shallow entrance, has been the traditional
"small-boat port" catering to schooners
and small interisland freighters. At the
deepwater port of Frederiksted, an open
roadsted on the lee side of the island, an
agent tender services the largest ocean-
going freighters and cruise ships. This
year cargo handling activities at this port
increased from 15,000 tons in 1962 to
50,000 tons during the past year.
The commission feels that the develop-
ment of the planned Christiansted freight
terminal and the completion of harbor
facilities at the Krause Lagoon will en-
hance the Virgin Islands' potential as a
leader in shipping activities in the
Caribbean.

Telephone Service

The commission noted that the Virgin
Islands Telephone Corp. (Vitelco) had
guaranteed telephone service designed "to
meet full and maximum commercial,
residential, and governmental demands."
Complaints from subscribers indicate
that this guarantee was not met. The
commission, on January 4, 1966, issued
an order launching an investigation of
service of Virgin Islands Telephone Corp.
Hearings were held in St. Croix and St.
Thomas in which testimony was received
from the general public and the com-
pany. Following study of testimony, the
commission concluded that certain rules
should be revised and that a specific in-
side and outside plant program was re-
quired immediately. It further ordered
the telephone company to proceed with
the completion during 1966 of a construc-
tion and equipment program requiring an





expenditure of $1,800,000, which was de-
scribed by the company -as being neces-
sary for adequate service.
The commission also authorized the
company to eliminate interisland tolls be-
tween St. Thomas and St. Croix with
the inauguration of "extended area serv-
ice," or direct distance dialing on Au-
gust 1, 1966. This grants an extended
$65,000 relief to interisland telephone
callers and was a specific condition for
certain tax incentives.
Vitelco's subscribers now number 9,705,
using more than 10 different types of in-
stallations.

Virgin Isle Communications

In January 1965, Virgin Islands Tele-
phone Corp. (Vitelco) filed with the Fed-
eral Communications Commission appli-
cations to establish new two-way land
mobile communication services on St.
Thomas 'and St. Croix. Communications
between vehicles en route, using Vitelco's
central plant facilities, was already in
effect, rendered by Vitelco in St. Croix


and Virgin Isle Communications (Vicom)
in St. Thomas. Vicom's strenuous ob-
jections to Vitelco's application resulted
in a series of opposition, motions, and
replies being filed with the Federal Com-
munications Commission. Eventually,
both firms were persuaded by FCC to
confer and resolve their dispute by agree-
ment. On January 20, 1966, agreements
were signed by representatives of the two
firms, and filed with the public utilities
commission.

Passenger Bus Service

The commission has initiated surveys
regarding passenger bus service on St.
Thomas and St. Croix. This survey is
required in order to determine a solution
to the problem of poor scheduling as
evidenced by early analysis of the com-
mission's survey reports, particularly on
St. Thomas. A factor involved is the
island's worsening traffic problem. How-
ever, the commission will continue to
pursue the matter in the interest of the
thousands of passenger bus users.












Bond Issue and Interim Financing


Preparatory to the territory's first
public offering of general obligation
bonds in the sum of $5,200,000 to repay
interim financing for construction of
schools and planning of health centers,
an official statement relating to the is-
suance of these bonds was prepared un-
der the supervision of Wainwright &
Ramsey, Inc., of New York, financial
consultants to the government of the
Virgin Islands, with legal opinions fur-
nished by Hawkins, Delafield & Wood, of
New York, legal consultants to the gov-
ernment of the Virgin Islands.
The official statement, a 23-page docu-
ment included maps and photographs of
the Virgin Islands; a description of the
bonds to be issued; and such items which
would be of general interest to investors
as population and social characteristics,
climate, administrative factors; present
administration; revenues and expendi-
tures over a period of 5 years; a terri-
torial balance sheet; financial factors; a
description of the projects to be financed,
and a detailed economic statement.
On October 22, 1965, notice of sale of
$5,200,000 various purposes serial bonds
was issued. The opening of these bids
was set for 11 a.m., November 9, 1965, at
the offices of Wainwright & Ramsey in
New York. Thirteen bids were received
for these general obligation bonds and
award was made shortly thereafter to a
syndicate headed by Bankers Trust Co.
of New York, which bid a net interest
cost of 3.5365 percent. Second and third
were 3.5643 percent by the Chase Man-
hattan Bank and 3.571 percent by B. J.
VanIngen & Co., Inc., also of New York.
The New York financial consultants
termed the result of this first marketing
of general obligation bonds of the govern-


ment of the Virgin Islands as highly suc-
cessful, especially in view of the then
current market conditions.
The accepted bid of Bankers Trust Co.
& Associates provided for the following
maturity dates and interest rate:


Nov. 1


1966-- ---
1967 ------------------.
1968--___ -..--___..
1969...--------- -.
1970-----
1971 ------ --------.
1972 ..--- .------.
1973 -------
1974 ---. -- ------- ---.--
1975 --------
1976. ---------
1977 ------------
1978 ------------.
1979 ---------
1980. .-----
1981----------
1982 _--.-
1983---------------.-
1984 ---
1985--------------


Amount
maturing


$180,000
185,000
195,000
200,000
210,000
215,000
225,000
230,000
240,000
250,000
260,000
270,000
280,000
290,000
300, 000
310,000
325,000
335,000
350,000
350,000


Interest
rate


5.(
5.(

5.(
5.(
5.(
3.;


On December 3, 1965, the government
of the Virgin Islands issued $1,260,000 in
3 percent bond anticipation notes for
water systems, maturing December 31,
1966. These interim notes were taken up
in equal shares by the Chase Manhattan
Bank and the Virgin Islands National
Bank. On June 23, 1966, the govern-
ment issued $1,200,000 in 3 percent
bond anticipation notes for hospital and
school purposes. In this case, also, the
interim financing was taken up in equal
shares by the Chase Manhattan Bank
and the Virgin Islands National Bank.












Control of Processing of Woolen Yard Goods


Control was implemented and con-
tinued over the processing of woven
woolen yard goods by the imposition of
quotas to control the flow of such foreign
material through the Virgin Islands into
the United States. These controls are
maintained by the imposition of a 1-cent-
per-yard tax within established quotas


and 65 cents per yard tax on the excess
over the said quotas.
Quotas are assigned for a calendar
year. The following is a record of quotas
from the commencement of control in
1963, with a record of shipments within
the quota:


Classification


Period


Quota
allowed
(linear yd.)


Actual
shipments
(linear yd.)


Knitted worsted and/or woolen cloth ..-------_-_.. Mar. 25, 1963 to Dec. 31, 1,000,000 112, 559
1963.
Thermal laminated woolen cloth..---------------.. Mar. 25, 1963 to Dec. 31, 375,000 88,282
1963.
Showerproof woolen cloth --------------------- Mar. 25, 1963 to Dec. 31, 5,000,000 3,778,376
1963.
Knitted worsted and/or woolen cloth ...---------- 1964 ---------- ----. 1,300,000 220,760
Thermal laminated woolen cloth _--------- 1964 -------------- .. 500,000 74,476
Showerproof woolen cloth .------------...--- 1964------__________ 1,000,000 494,474
Woven woolen yard goods -------------_------- 1965 ---------------------- 1,650,000 966,992
Knitted worsted and/or woolen cloth including cloth 1965. -- .. _____ 1,150,000 421,430
knitted from a blend of wool and other fibers.


For the calendar year 1966, these
quotas were assigned:


Showerproof woolen
cloth.
Knitted worsted
and/or woolen
cloth.
Woven and/or dyed
and finished wool-
en cloth.





Thermal laminated
adhesive bonded
woolen cloth.


1,845,000 linear yards.

1,035,000 linear yards.


120,000 linear yards plus
180,000 linear yards
taken from the unused
reserve for the preced-
ing calendar year or a
total of 300,000 linear
yards in this classifica-
tion.
100,000 linear yards
from the unused re-
serve for the preced-
ing calendar year.


cloth unused 1965 quotas totaling 1,008,-
458 linear yards were authorized to be
carried over for use in 1966.
During the period January 1, 1966, to
June 30, 1966, actual shipments from the
1966 new and carried over quotas were as
follows:


Showerproof woolen cloth -.._-__
Knitted worsted and/or woolen
cloth including cloth knitted
from a blend of wool and other
fibers _________________
Thermal laminated and adhesive
bonded woolen cloth--___-_____
Woven and/or dyed and finished
woolen cloth-----____________


Linear yds.
1, 386, 428



307, 654

55, 996

None


In addition to the above, within the
1965 classification of showerproof woolen


The report of the hearing board dated
September 13, 1965, is quoted in full:





REPORT AND RECOMMENDATIONS

of Hearing Board on Production Taxes Imposed on Woolen Yard Goods by Chapter 9,
Title 33, Virgin Islands Code


The Law

1. Act No. 971 (bill No. 1869), fifth
legislature of the Virgin Islands of the
United States, regular session, 1963, to
impose certain production taxes and for
other purposes, became effective on
March 25, 1963, the date of its approval
by the Governor of the Virgin Islands. It
enacted a new chapter 9 entitled "Pro-
duction Taxes" to part I, subtitle 1, title
33, Virgin Islands Code. It was amended
by Act No. 1080 (bill No. 2054), approved
February 20, 1964. Section 504, subsec-
tions (a), (b), (d), and (e) as amended
are as follows:
"(a) The Governor shall determine,
after due investigation, the maximum
amount of woolen yard goods production
in the Virgin Islands which is consistent
with the protection of the economic sta-
bility and commercial relations of the
Virgin Islands. Due notice shall be given
and interested parties shall be afforded
an opportunity to present comments and
information at a public hearing. In mak-
ing any determination or determinations
under this section, the Governor shall
take into account, among other relevant
factors, the benefit or detriment resulting
from the applicability of the provisions
of Section 301 of the Tariff Act of 1930,
as amended, to Virgin Islands products,
including problems of the type which led
to expressions of concern on the floor of
the 87th Congress over possible abuse and
excessive use of said provisions.
"(b) Upon the proclamation by the
Governor of any determination or deter-
minations made pursuant to subsection
(a) of this section, the rate of tax im-
posed by this chapter shall be 1 cent per
yard upon the amount of woolen yard
goods production set forth in such deter-
mination or determinations to be consist-
ent with the economic stability and com-
mercial relations of the Virgin Islands;
and the rate of tax on the excess of such
amount shall be 65 cents per yard.


"(d) In carrying out the provisions
of this chapter, the Governor shall have
authority to make such classifications of
woolen yard goods as he may determine
appropriate for purposes of this chapter,
and may prescribe different maximum
amounts for different classifications.
"(e) The Governor shall have author-
ity to determine the periods to be covered
in granting applications, and may deter-
mine what applications shall be granted
in whole or in part for a calendar year
or for a period smaller than a calendar
year. He may prescribe for renewal of
applications in whole or in part."

The Hearing Board

2. Hon. Ralph M. Paiewonsky, Gov-
ernor of the Virgin Islands, on July 21,
1965, appointed an ad hoc hearing board
consisting of Morris F. de Castro as chair-
man, A. J. Prendergast, John J. Kirwan,
Myer Feldman, and Oscar Gass to hold
hearings for and on behalf of the Gover-
nor pursuant to section 504 (a) of title 33,
Virgin Islands Code, for the purpose of
recommending to the Governor quotas to
be established for woolen yard goods in
the various classifications for the calen-
dar year 1966.
3. On August 5, 1965 the hearing board
issued a notice of public hearings to be
held at Government House in Charlotte
Amalie, St. Thomas, Virgin Islands, on
September 1, 1965.
4. A hearing was duly held on that
date, at which representatives of Amity
Fabrics, Inc., of New York; Buccaneer
Mills, Inc., Kent Co., Inc., Virgin Islands
Textile Processing Corp., and Vitex Man-
ufacturing Co., Ltd., of the Virgin Is-
lands, appeared and testified.

Position of U.S. Department of
Commerce

5. The following letter was received
from Hon. John T. Connor, Secretary of
Commerce of the United States:





THE SECRETARY OF COMMERCE,
Washington, D.G. 20SO0,
August 24, 1965.
Hon. RALPH M. PAIEWONSKY,
The Governor of the Virgin Islands,
Charlotte Amalie, St. Thomas
DEAR GOVERNOR PAIEWONSKY: Thank
you for your letter of August 10 advising
me that the government of the Virgin
Islands will hold a public hearing on
September 1, 1965, for the purpose of aid-
ing you in determining the maximum
amount of wool yard goods production in
the Virgin Islands during 1966 which is
consistent with the protection of the eco-
nomic stability and commercial relations
of the Virgin Islands.
I have been informed of the close co-
operation which has existed between you
and Secretary Hodges over the last sev-
eral years in dealing with the problem of
wool textile shipments from the Virgin
Islands which enter the United States
duty free. The Department and the wool
textile industry have appreciated the ac-
tions which the Virgin Islands has taken
to contain the level of this trade in the
face of the serious economic difficulties
facing the wool textile industry in the
United States, in large part as a result
of the high rate of imports from all
sources.
Unfortunately, to date we have been
unable to find a satisfactory means to


meet President Johnson's commitment to
the wool textile industry to solve the im-
port problem. As recently as last June,
government and industry representatives
from the United States and Japan met in
Tokyo to discuss wool textile trade. We
had hoped that the Japanese might agree
to the calling of a multilateral interna-
tional conference to consider the problems
involved in world trade in wool textiles,
but they did not. The administration is
now reviewing the alternatives available
to it at this time to alleviate the import
problem.
In these circumstances, may substan-
tial increase in duty-free imports into
the United States of foreign wool textiles
through the Virgin Islands would create
a most difficult situation. I will be glad
to have members of my staff submit to
you or to the hearing board any addi-
tional information that you believe may
be helpful.
Sincerely yours,
(S) JOHN T. CONNOR,
Secretary of Commerce.

Quotas Established in Previous Years

6. For the period March 25, 1963, to
December 31, 1963, and for the calendar
year 1964, the Governor of the Virgin
Islands established the following classifi-
cations and quotas to be subject to the
production tax of 1 cent per yard:


[In linear yards]

Classifications Quota Quota
1963 1964

A. Thermal laminated woolen cloth _--.----_ ---..__------------..-..--___ 375,000 500,000
B. Showerproof woolen cloth .-----.......--------------..----.--_ 5,000,000 1,000,000
C. Knitted worsted and/or woolen cloth including cloth knitted from a blend
of wool and other fibers----_--------------------.------------- 1,000,000 1,300,000

Totals....---..-------------------------------- ..... _.... 6,375,000 2,800,000


7. For the calendar year 1965, the
Governor of the Virgin Islands estab-
lished the following classifications and
quotas to be subject to the production
tax of 1 cent per yard:
Quota 1965,
Classifications: linear yards
A. Woven woolen yard goods- 1, 650, 000


Quota 1965,
Classifications-Con. linear yards
B. Knitted worsted and/or
woolen cloth including
cloth knitted from a
blend of wool and other
fibers-- ----.------- 1,150, 000

Total --- ----- 2, 800, 000





8. The companies whose representa-
tives testified presented requests for
quotas for the calendar year 1966 as fol-
lows:
Linear yards
Amity Fabrics, Inc------------- 500, 000
Buccaneer Mills, Inc--------- 1, 035, 000
Kent Co., Inc--------------- 1,500, 000
Virgin Islands Textiles Process-
ing Corp------------------- 500,000
Vitex Manufacturing Co., Ltd--- 2, 000, 000

Total------------------ 5, 535, 000

Overall Quota Assignment for 1966

9. In consideration of the statements
of the Secretary of Commerce quoted
above and in particular the Secretary's
significant statement "In these circum-
stances, any substantial increase in duty-
free imports into the United States of
foreign wool textiles through the Virgin
Islands would create a most difficult
situation," the board has concluded that
an increase of 200,000 linear yards in the
overall quota for the woolen yard indus-
try for the calendar year 1966 is war-
ranted especially in view of the fact that
two new processes have been requested,
namely:
1. weaving and/or finishing and
dyeing, and
2. laminating and bonding.
Accordingly the board recommends that
the overall new quota for the Virgin Is-
lands woolen yard industry for the calen-
dar year 1966 should be fixed at a global
figure of 3 million linear yards.

Classifications for 1966

10. In the current and proposed struc-
ture of business operations in the Virgin
Islands, the board recommends to the
Governor four classifications for woolen
yard goods. These are:
a. Showerproof woolen cloth.
b. Knitted, worsted, and/or woolen
cloth including cloth knitted from a blend
of wool and other fibers.
c. Thermal laminated and adhesive
bonded woolen cloth.
d. Woven and/or dyed and finished
woolen cloth.


Production Subject to 1 Cent Tax in
1966

11. Of the classification designated
showerproof woolen cloth, the board
recommends that a quanity of
1,845,000 linear yards
be made subject to the tax of 1 cent per
yard for the period January 1, 1966, to
December 31, 1966.
12. Of the classification designated
knitted worsted and/or woolen cloth in-
cluding cloth knitted from a blend of
wool and other fibers, the board recom-
mends that a quantity of
1,035,000 linear yards
be made subject to the tax of 1 cent per
yard for the period January 1, 1966, to
December 31, 1966.
13. Of the classification designated
woven and/or dyed and finished woolen
cloth, the board recommends that a quan-
tity of
120,000 linear yards
be made subject to the tax of 1 cent per
yard for the period January 1, 1966, to
December 31, 1966. It is the intention of
the board that no quota shall be granted
fbr "finishing" alone or for "dyeing"
alone, but for "dyeing and finishing," as
a complete operation. In this classifica-
tion the board recommends that 180,000
linear yards of the reserve for the calen-
dar year 1965, which has not been used
and which will not be allocated to ex-
isting manufacturers, be additionally
allocated and be made subject to the tax
of 1 cent per yard for the period Janu-
ary 1, 1966, to December 31, 1966. The
board recommends that no part of this
quota be allocated until after the Gover-
nor shall have been satisfied that the
applicant for this classification and quota
is committed to an adequate capital ex-
penditure in the Virgin Islands, and that
the applicant has not predicated its ap-
plication on the assumption of obtaining
benefits under the industrial incentive
program.
14. Of the classification designated
thermal laminated and adhesive bonded
woolen yard goods, the board is prepared
to recommend an experimental quota for





the remainder of the calendar year 1965
and for the period January 1, 1966, to
April 30, 1966, in the amount of 100,000
linear yards to be taken entirely from
the remaining unallocated reserve for the
calendar year 1965.

Distribution of Quotas

15. For the calendar year 1966 the
board recommends that, subject to the
10-percent reserve provided by law to re-
lieve against severe financial hardship,
the full annual quotas should be assigned
as soon as the necessary preliminaries
shall have been accomplished.
16. Of the classification "showerproof
woolen cloth" the board recommends that
the full annual quota be divided between
the two applicants in accordance with the
criteria set forth in the act, namely:
a. One-half in proportion to capital in-
vested in the Virgin Islands (defined by
law as "original investment in buildings
and other fixed depreciable assets in the
Virgin Islands") as of June 30, 1965.
b. One-half in proportion to total pay-
roll in the Virgin Islands, subject to so-
cial security taxation, for the 6 months
ending November 30, 1965.
Because of the late issuance of quotas
in this classification for the calendar year
1965, the board is of the opinion that the
change in the payroll period (last year
the period was the 6 months ending Sept.
30, 1965) is warranted.


17. To avoid any misunderstanding, it
should be noted that quotas, whether
given to firms currently in operation or
newly established, will be available only
to firms which give substantial evidence
that they will definitely be engaged in
production in the Virgin Islands within
the categories established.

Conclusion

18. The board recommends that the
Governor-
a. make the classifications of woolen
yard goods hereinbefore set forth as
classifications that are appropriate for
purposes of chapter 9 of title 33, part I,
subtitle 1 of the Virgin Islands Code;
b. determine the quotas hereinbefore
set forth as the maximum amount of
woolen yard goods production in the Vir-
gin Islands for each of the classifications
which is consistent with the protection of
the economic stability and commercial re-
lations of the Virgin Islands.
(8) Morris F. de Castro,
MORRIS F. DE CASTRO.
(S) John J. Kirwan,
JoHN J. KIRWAN.
(S) A. J. Prendergast,
A. J. PRENDERGAST.
(S) Myer Feldman,
MYER FELDMAN.
(S) Oscar Gass,
OSCAR GAss.
Dated: September 13, 1965.











Control of Manufacture of Watches


Territorial Activities

During the year, controls were imposed
by local legislation and implemented by
local executive action on the manufacture
and assembly of watches in the Virgin
Islands in order to limit and mitigate the
danger to the stability of employment in
the Virgin Islands and to the commercial
relations of the islands with the United
States.
By Act No. 1518, approved August 30,
1965, the legislature of the Virgin Islands
imposed a production tax of $2.50 per
watch upon watches manufactured or as-
sembled in the Virgin Islands when sold
or removed for sale, consumption, or use.
A credit of $2.47 per watch, roughly
equivalent to the duty paid in the United
States on watches and watch movements


imported from foreign countries, was al-
lowed upon watches manufactured and
sold in the course of retail trade in the
Virgin Islands; upon watches manufac-
tured and exported to other than the cus-
toms area of the United States; and upon
watches manufactured within the quota
allocation. The remaining production tax
of approximately $0.03 per watch was
assessed for purposes of administration
and control.
Act No. 1518 pegged the quota for the
period October 1, 1965, to March 31, 1966,
at 1,800,000 units which was established
as the maximum amount of watch produc-
tion consistent with the protection of the
economic stability and commercial rela-
tions of the Virgin Islands. Of this
amount, the law provided that 1,500,000


Interior of a watch assembly plant, St. Croix.


249-079 0 67 3





units would be distributed among manu-
facturers of watches with a continuous
watch manufacturing record in the
islands since October 1, 1964, the remain-
ing 300,000 units being reserved to relieve
against severe financial hardships and for
new manufacturers.
Act No. 1518 also provided that the reg-
ular quota, as distinguished from the
reserve quota, would be distributed
among manufacturers on the basis of
662/ percent of total payroll subject to
social security taxation and 331/ percent
on the basis of total number of watches
shipped.
Using a base period of 6 months from
January 1, 1965, to June 30, 1966, 11
watch manufacturing firms with a con-
tinuous record of production and ship-
ment submitted total payroll figures for
the base period of $731,751 and total
watches shipped in amount of 1,517,882
units. On this basis, 1,500,000 units were
distributed in strict accordance with the
criteria set forth in the law to 11 watch
manufacturing firms. The reserve of
300,000 units was distributed among four
new watch manufacturing firms, gener-
ally in proportion to their proposed in-
vestment, payroll, and shipments.
For this first quota period of Octo-
ber 1, 1965, to March 31, 1966, the 15
firms in question manufactured and
shipped 1,824,389 units. Two companies
did not use 7,211 units and four com-
panies shipped 31,600 units in excess of
quota on which the full production tax
of $2.50 per unit was paid.
Act No. 1518 further provided that for
each 12-month period subsequent to
March 31, 1966, the Governor should de-
termine the total annual consumption of
watches in the United States and fix the
local Virgin Islands quota as one-ninth
of the said annual consumption, reserv-
ing 5 percent thereof as a reserve for
severe financial hardship. Subsequently,
by Act No. 1631, the payroll criteria for
distributing the quota was changed to
66%2 percent of total payroll with a maxi-
mum amount for any employee of $400
per month during 1965 and $550 per
month during 1966.


For the quota period April 1, 1966, to
March 31, 1967, the Governor determined
that the total U.S. annual consumption
for 1965 was 34,354,000 units. One-
ninth of this figure or 3,817,110 units was
then fixed by the Governor as the maxi-
mum quota allocation for the year
April 1, 1966, to March 31, 1967, of which
5 percent or 190,855 units was reserved
for hardship cases, leaving a net regular
quota of 3,626,225 units.
Using the base period October 1965 to
March 1966, 16 watch companies sub-
mitted total payrolls of $1,025,136 and
total shipments within quota of 1,799,905
units. On this basis, and strictly in ac-
cordance with the criteria set forth in
the law, the quota of 3,626,253 watch
units was distributed to 16 firms: Of
the reserve of 190,855, 15,000 units were
issued to 1 of the 16 firms which proved
hardship. As of the date of writing this
report, the remaining 175,855 reserve
units had not been issued.
Seven applications for new quotas were
received from new watch companies or
watch companies proposing to establish
in the Virgin Islands. All seven appli-
cations were denied.
At the time of writing this report,
namely, as of September 30, 1966, produc-
tion tax records submitted by the 16 com-
panies indicated total production and
shipment of 1,872,338 units against the
total quota of 3,641,253.
Following the passage of the original
watch production tax law (Act No. 1518,
approved Aug. 30, 1965), actions chal-
lenging its validity were (brought in the
district court of the Virgin Islands by
three watch firms, all subsidiaries of U.S.
corporations. The main constitutional
arguments urged have been that the pro-
duction tax is (1) in legal effect an ex-
port tax which the Virgin Islands may
not impose, (2) a burden on interstate
commerce. By judgment rendered
March 16, 1966, the district court held
the production tax void as an export tax.
On March 22, 1966, Act No. 1631 was
approved. This amended and revised
the earlier law, among other things re-
wording the language of Act No. 1518
on which the district court had based its





decision. New or amended complaints
were filed by the watch companies at-
tacking the Act No. 1631 on essentially
the same constitutional grounds. The
district court held on June 3, 1966, that
the new law was also void as an illegal
export tax.
The cases are now on appeal to the
Court of Appeals for the Third Circuit.
In addition to the challenge to the
watch production tax, one of the plain-
tiffs also sought in its original action a
declaration that it was entitled to bene-
fits under the Industrial Incentive Act,
claiming that the government had unduly
withheld action on its application for
such benefits. In September 1966 the
Governor denied its application on ground
that it does not satisfy the requirements
of "need" for the benefits. The district
court has subsequently ruled that "need"
is not a requirement. This decision is
being appealed to the third circuit court.

Federal Activities

The Congress continued during the year
its study of the tariff schedules of the
United States with respect to the dutiable
status of watches, clocks, and timing ap-
paratus from the insular possessions of
the United States. The Committee on
Ways and Means of the House of Repre-
sentatives on September 22, 1965, re-
ported out H.R. 8436 to amend those pro-
visions of the tariff schedules granting ex-
emption from duty to articles produced in
insular possessions of the United States
with use of foreign materials, so that
such exemptions would not be allowed in
the case of certain timing devices so pro-
duced in any of such possessions other
than in the Virgin Islands.
The report of the Committee on Ways
and Means included the following reasons
for the bill:
"Your committee, while sympathetic to
the need for encouraging light industry
in United States insular possessions to
aid in their economic development, is 'of
the view that the preferential tariff
treatment for products of insular posses-
sions entering U.S. customs territory
should not be permitted to operate in a
manner that enables its employment pri-
marily as a means for avoiding import


ddties providing protection for U.S. in-
dustry and labor. The committee be-
lieves that the watch assembly industry
in the Virgin Islands was fast becoming
of such character and proportion as to
become a serious threat to the U.S. watch
industry and labor.
"Your committee is cognizant of the
fact that the Virgin Islands Legislature
enacted legislation on August 30, 1965
(bill No. 2638) designed to contain the
watch assembly operations of the islands
within the confines of a legitimate opera-
tion in the interest of economic develop-
ment of the islands and to prevent these
operations from becoming primarily a
means of employing the duty-exemption
privilege as a traiff-avoidance vehicle to
the detriment of the U.S. watch industry.
These measures, the committee under-
stands, will have the effect of establishing
quotas for watch movements produced in
the Virgin Islands for shipment to the
United States. Your committee is of the
view that this action of the Virgin Islands
Legislature will largely solve the problem
vis-a-vis excessive shipments of watch
movements from the Virgin Islands to the
United States. However, the committee
is advised that some U.S. firms and pos-
sibly others are already planning to estab-
lish watch assembly operations on the
island of Guam and on American Samoa.
The committee believes that such activ-
ities would operate primarily as a tariff-
avoidance scheme and that the special ex-
emption privilege with respect to timing
devices produced in U.S. insular posses-
sions other than the Virgin Islands should
be removed before these assembly opera-
tions are established in these possessions."
As passed by the House of Representa-
tives, H.R. 8436 prohibited the importa-
tion into the United States, duty-free, of
watches, clocks, and timing apparatus
from any insular possessions other than
the Virgin Islands, thus recognizing the
fact that the territory of the Virgin
Islands had taken definitive action to con-
trol the manufacture of such items by the
establishment of quotas as indicated
heretofore in this report.
The U.S. Senate Committee on Finance
held hearings on H.R. 8436 on June 30,
1966. Although its report was not ren-
dered until October 5, 1966-later than
the period of the annual report-perti-
nent portions of the Senate report are
here quoted.
"In an effort to control the watch as-
senmbly operations and to forestall con-
gressional legislation which would have





prohibited duty-free importation of
watches assembled in the possessions, the
Virgin Islands Legislature, on August 30,
1965, enacted legislation (bill No. 2638)
designed to limit watch assembly there
for export to the United States to a quan-
tity roughly equivalent to one-ninth of
total apparent U.S. watch consumption
for the preceding year. This local quota
statute was attacked in the courts, and
on March 14, 1966, was declared invalid
by the U.S. District Court of the Virgin
Islands (Virgo Corporation vs. Paiewon-
sky, civil No. 165-1965). The decision is
being appealed. In the meanwhile, on
March 16, 1966, a special session of the
legislature passed a new statute to over-
come the objections raised by the district
court. On March 29, this new statute was
attacked and on June 3, it, too, was de-
clared invalid by the same district court
(Virgo Corporation vs. Paiewonsky, civil
No. 37-1966). This decision also is being
appealed.
"Shortly after the Virgin Islands Leg-
islature enacted its quota law in August
1965, this bill was considered by the Com-
mittee on Ways and Means. In recogni-
tion of the local quota which had just
been approved, H.R. 8436 was amended by
that committee to exclude the Virgin Is-
lands from the prohibition against duty-
free treatment for watches imported from
the possessions which the original legisla-
tion contemplated. It was understood
that at that time no watch assembly op-
erations were being carried on in any
other possession and so a prohibition
would not harm their economies.
"In the interval since the House acted,
a number of events occurred. First, two
attempts by the Virgin Islands Legisla-
ture to establish local quotas have been
struck down as invalid. Secondly, five
watch plants have been established on
Guam. As for American Samoa, the De-
partment of the Interior reported to the
committee:
Several watch firms had been nego-
tiating with the Governor of American
Samoa last year looking toward their
early entry into that territory. Once
H.R. 8436 was introduced in the House
of Representatives, however, the Gov-
ernor broke off discussions with such
firms, believing it inconsistent with his
position as a Federal official to be en-


gaged in an action which might be
construed as an attempt to frustrate
the Congress, or to take advantage of
the Congress' need to weigh and con-
sider the matter in deliberate fashion.
Due to the very limited land available
in American Samoa, and because of
certain tax and quota powers vested in
the Governor, the prior consent of the
Governor of American Samoa is needed,
as a practical matter, before substan-
tial new activities are started.
"These events, and the explanation of
the lack of watch operations in American
Samoa, convince the Committee on
Finance that the premise on which the
House passed the bill is not valid today.
Moreover, the committee is convinced
that uniformity of tariff treatment among
the possessions is highly desirable and
should be adhered to to the fullest extent.
For that reason it believes that to the
extent watch operations are to be per-
mitted to continue on a duty-free basis,
all the possessions should share in the
economic stimulation this industry
brings."
The committee reported out, the Sen-
ate passed, the House concurred, and
the President, on November 10, 1966,
signed this bill into law. This act now
provides for a federally administered
quota of one-ninth of the apparent U.S.
consumption of watches during the pre-
ceding calendar year, 87.5 percent of
which would be the quota for the Virgin
Islands, 8.33 percent would be the quota
for Guam, and 4.17 percent would be the
quota for American Samoa.
This action of the Congress is a victory
for the Virgin Islands in that it saved the
watch industry by allocating a quota just
a little smaller than the local legislature
had decreed (local quota was %, Federal
quota 7/ of % of annual U.S. consump-
tion) ; and also by making it a Federal
quota removed the possibility of further
legal attacks which the local law was
subjected to as an alleged unconstitu-
tional "export tax."












Office of Public Relations and Information

(PERSONNEL: 9)-(OPERATING APPROPRIATION: $140,700)


The office of public relations and in-
formation completed its third fiscal year
as the governmental arm responsible for
Virgin Islands public relations and pub-
licity under the office of the Governor.
Its principal activities include the
preparation of news, articles, and photo-
graphs about the islands for release on
the mainland by the islands' public re-
lations agency there and the dissemina-
tion of news and pictures concerning the
executive branch of the Virgin Islands
government to island and mainland-based
media.
To reflect a more inclusive picture of
its functions and areas of responsibility,
the name of the office was changed from
the Virgin Islands Government News Bu-
reau to that of the Office of Public Rela-
tions and Information at the beginning
of the fiscal year.
An increase in appropriation enabled
the office to expand its operations during
the year. A St. Croix bureau was estab-
lished in quarters in the historic old cus-
toms house in Christiansted and staffed
with a writer-photographer and secre-
tary.
On St. Thomas, an additional writer,
a chief photographer, and a combina-
tion photographer-darkroom technician
were added to the staff. A completely
equipped darkroom was installed, mak-
ing possible expedient 1-day servicing of
photographic commitments. The office
staff was further increased with the ad-
dition of a secretary-clerk, whose major
responsibility is to administer to an ex-
panded filing system for photographs,
releases, research, and promotional
materials.
With the additional writers and full-
time photographers, the office was in a
position to increase considerably its out-


put of news, feature articles, and pictures
over the previous year, and the new York
public relations agency received a larger
variety of islands' promotional material
and "hard news" items for dissemination.
In addition to its cooperative efforts
with the public relations and informa-
tion office in promotional activities, the
mainland office served the many Capitol
Hill and Washington departmental needs
of the government of the Virgin Islands.
Similarly, on the islands, the public re-
lations office provided assistance to the
Governor's office in the preparation of
reports, speeches, and other documents.
Locally, more than 402 news releases
and 211 photographs were distributed to
the islands' news media and to persons
and agencies on the office's off-islands
mailing list during the year.
Throughout the fiscal year, the islands
were honored by the visits of many news-
worthy persons. Vice President Hubert
H. Humphrey headed the list with his
visit to dedicate a new 1-million-gallon-
per-day desalting and powerplant 6n St.
Thomas. The office of public relations
and information and the mainland pub-
lic relations agency worked closely with
the press representatives covering the
event and worldwide attention was
received.
The two offices also worked in close
coordination in accommodating two large
groups of nationally famous writers and
editors who visited the islands as guests
of the government and Pan American
World Airways on commemorative in-
augural direct jet flights into St. Thomas.
The resultant editorial space afforded the
islands from these visits yielded a price-
less bonus in favorable publicity.
Dozens of other topflight editors,
writers, and photographers as well as





important visiting dignitaries from the
United States and foreign countries who
visited the islands during the year were
accommodated by the staff of the public
relations and information office.
In point of favorable media publicity
for the islands, the combined efforts of
the on-islands and mainland offices re-
sulted in some $2,108,000 in newspaper/
magazine page coverage, based upon per-
column-inch median costs if purchasable


as paid advertising space. The reader-
ship/viewership circulation was in the
range of some 200-million, concentrated
largely east of the Mississippi River,
which continues to be the major tourism
capital investment market for the islands.
As a result, published promotional ma-
terials exceeded by far, in readership,
bulk and area coverage, the paid adver-
tising program of the Virgin Islands
government.











Office of the Government Secretary

(PERSONNEL: 42)-(OPEIRATING APPROPRIATION: $304,887)


Activities under the jurisdiction of the
government secretary continued to grow
during the fiscal year.

Corporations

Two hundred and thirty-nine new cor-
porations were authorized to do business.
Ten were dissolved for noncompliance


with corporate laws. Five were with-
drawn and one surrendered corporate
rights. A total of 1,223 corporations was
registered in the Virgin Islands. Of the
new corporations registered, 194 were
domestic, 26 foreign, and 19 nonprofit.
Increased corporate activity is reflected
in the following tables:


Comparative Chart-Number of Corporations

1962 1963 1964 1965 1966

For- Do- For- Do- For- Do- For- Do- For- Do-
eign mestic eign mestic eign mestic eign mestic eign mestic

Certificates of incorpora-
tion issued---.-----... 17 166 24 173 19 173 33 173 26 194
Certificates of amend-
ment issued -- ----- 2 30 2 26 4 43 4 27 4 26
Dissolutions---------- 12 4 85 --..._- 49 _--- 143 10
Withdrawals ------.-- 2 _------- 5 -------__ 4 -.---_--- 7 -------- 5 -
Mergers ---...-- ----- -. 3 _--- -1 ______ 1 ____ 3 ---_ 1
Surrender of corporate
rights..... ..--- ------- 3 6 --.. 4 1 10 1

Comparative Table-Franchise Taxes and Corporate Fees

1962 1963 1964 1965 1966

Filing fees -------------------- $12,458 $13,179 $15,196 $14,561 $18,295
Franchise taxes including penalties -------- 20,127 38,098 35,770 36,288 36, 500


Licensing of Businesses and
Occupations

The continuing economic expansion of
the Virgin Islands economy was clearly
indicated by the increasing number and
varying types of licenses issued by the
office of the government secretary during
fiscal year 1966.
A total of 3,852 licenses was issued, and
a total of $186,429 collected in fees. Dur-
ing the previous fiscal year, 3,735 licenses


were issued and $172,865 collected in fees.
This increase was due in part to the im-
plementation of the amended provisions
of section 303, chapter IX, title 27 of the
Virgin Islands Code which provides for
the licensing of several previously un-
licensed types of business operations and
occupations as "any other business not
(specifically) included."
The following charts show a compar-
ison of licenses issued and fees collected
over the past 5 fiscal years:





Licenses Issued and Fees Collected

1962 1963 1964 1965 1966
District
Li- Fees Li- Fees Li- Fees Li- Fees Li- Fees
censes censes censes censes censes

St. Thomas and St. John-.. 1,514 $63,480 1,716 $101,592 2,010 $117,421 2,115 $130;781 2,221 $141,084
St. Croix _----------_-- 922 38,474 1,034 39,176 1,486 32,811 1,620 42,084 1,631 45,345

Totals.---------- -- 2,436 101,954 2,750 140,768 3,496 150,232 3,735 172,865 3,852 1186,429

1 Includes fees collected for licenses for which applications have been received, but licenses not yet issued,
as well as refunds.


Registration of Trade Names

In compliance with Act No. 923, ap-
proved January 23, 1963, which provides
for governmental control by means of reg-
istration of the use of trade names of
businesses in the Virgin Islands, 205 new
registrations were recorded during the
fiscal year 1966, bringing the total number
of trade names filed to 859.


Fees collected for this activity during
the fiscal year amounted to $1,025 as com-
pared with $1,120 during fiscal year 1965.

Trademarks and Patents

Registration of trademarks and patents
showed a slight decrease from the previ-
ous year. The following chart shows a
comparison of activity in this field over
the past 5 fiscal years:


Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year
1962 1963 1964 1965 1966

Design patents--------------------------- 1 1 1 -
Original registrations ------ 24 24 19 35 27
Renewals ------------------ 7 4 13 13 11
Assignments------------------ 8 6 ----___-- 18 1
Changes of name ------------------ 6 2 4 2 2
Mergers --------- 20 2_----- 2 2

Total------------------------------- 66 39 37 70 43
Fees collected. --------------------- $1,032 $1,005 $907 $3,621 $832


Banking Board of the Virgin Islands

At the end of fiscal year 1966, there
were five banks and one savings and loan
association doing business in the Virgin
Islands-the new St. Croix Savings Bank,
Virgin Islands National Bank, Chase
Manhattan Bank, Bank of Nova Scotia,
Barclays Bank D.C.O., and First Federal
Savings & Loan Association.
During the fiscal year the banking
board considered two applications from
institutions interested in conducting
banking business in the Virgin Islands.
The board approved one application, that
of Barclays Bank D.C.O. of London, Eng-
land. The other application, received


from the Caribbean Bank & Trust Corp.,
is still pending.
Also receiving authorization during the
fiscal year to conduct business in the
Virgin Islands, but which is not yet in
operation, was the First National City
Bank of New York. This authorization
was granted by the Comptroller of the
Currency in Washington, D.C., who is the
Administrator of National Banks. Na-
tional banks are excluded from the super-
vision of the banking board of the Virgin
Islands by the provisions of the National
Bank Act of Congress (12 U.S.C., sec. 21
et seq.).
The Chase Manhattan Bank and the
Virgin Islands National Bank (both re-





ceived permission to open additional
branches in the islands, which attests to
the continuing growth and overall devel-
opment of the Virgin Islands.
In the field of legislation, fiscal year
1966 witnessed the passage of Act No.
1604, approved March 4, 1966, which made
deposit insurance mandatory for all
banks operating in the Virgin Islands.
Revision of the banking laws has been
initiated. A draft has been readied for
presentation to the banking board, banks,
and other interested parties with a view


toward subsequent submission, through
the Governor, to the legislature at its next
regular session.
The following comparative table reflects
the growth of the banking industry of the
Virgin Islands for the past 4 fiscal years.
The 1965 figures represent the activities
of only the four banks established at that
time. The 1963 and 1964 figures include
the activities of these four banks and the
savings and loan association. The figures
for 1966 represent activities of five banks
and the savings and loan association.


Fiscal year Fiscal year Fiscal year Fiscal year
1963 1964 1965 1966

Total assets --.. -------------. $59,056,190 $67,782,950 $79,541,767 $106,075,039
Total liabilities--...--...--- --------. ---- 56,270,413 63,908,111 77,169,041 103,461,337
Loans ---------_-------------------- 9,149,990 13,282,331 20,905,951 26,444,218
Mortgages ........ ...-- ----------------.. 21,766,369 27,925,425 30,585,358 39,961,792
Deposits.....------ .. -------------- 151,988,767 158,721,006 ----------- ---------
Time_ ---- _-----------_---------- ---------------- 26,439,154 19,859,789
Demand --------- ---------- --------- -------- 234,309,809 35,124,628
Savings ------------------------- ----- ----- ------- 33,335,260 42,527,182
Cash on hand --------- ----------- 4,258,403 3,379,280 1,938,825 4,287,970


1 Includes time, demand, and savings deposits.
2 Does not include New St. Croix Savings Bank.

Insurance with $2,761,496 in fiscal year 1965, repre-
senting an increase of $876,460. Gross
At the end of the fiscal year there were premium taxes totaled $32,929 this year
84 insurance companies authorized to as compared with $24,892 in fiscal year
conduct business in the Virgin Islands as 195, an increase of $8,037.
compared with 79 during the last fiscal 1 a i o .
During the fiscal year 152 insurance
year, and 68 the year before. Six new
licenses were issued, 86 of which were
companies were registered last year as
compared with nine the year before. In insurance agents, 21 insurance solicitors,
addition, two foreign companies with- and 45 were issued to apprentices.
drew and one domestic company was dis- Following is a comparative table of
solved, insurance activities for the past 5 years
Gross premiums written during the fis- representing fees collected over these
cal year totaled $3,637,957 as compared periods:

Comparative Analysis of Fees Collected for Insurance Activities

1962 1963 1964 1965 1966

Certificates of authority -- ------------ $3,076 $3,188 $2,748 $3,412 $3,375
Agents licenses ------------- ----------- 2,821 3,068 2,870 3,047 4,994
Brokers licenses _---- ------------------------- ------------ 100 200
Solicitors licenses__ ----- 200 828 1,460 1,118 1,050
Gross premium taxes --- --------------------- 12,785 15,015 18,769 24,892 32,929
Filing annual statements -------- --------- 151 167 172 190 212
Filing power of attorney --------- --------- 145 90 115 70 90
Sale of insurance laws ---------- ---------- 61 44 18 28 53

Total ------_------------------- 19,239 22,400 26,152 32,857 42,903





Board of Control of Alcoholic
Beverages
The board of control of alcoholic bever-
ages prescribes, administers, and main-
tains regulations pertaining to the manu-
facture and sale of alcoholic beverages


and articles containing denatured spirits.
Quality control continues to be one of the
primary objectives as well as challenges
of the board and the industry.
The following charts reflect the growth
of the industry over the past 5 years.


Rum Produced in the Virgin Islands
[In proof gallons for calendar year]

1962 1963 1964 19651

Virgin Islands Rum Industries, Ltd ...------------ 1,084,334 832,204 878,917 980,065
West Indies Distillers, Ltd __----- ---------- 200,000 157,470 327,072 180,102

Total. _------------------------------ 1,284,334 989,674 1,205,989 1,160,167

1 Calendar years.

Alcoholic Beverages Exported to the United States
[In proof gallons for calendar year]

Item 1962 1963 1964 1965

Rum --__ ---- ----------------------- 825,387 735,077 1,230,257 1,099,928
Whiskey..---.------------------------ -------- --- 4,343 2,568 2,160 ---------
Cordials, liqueurs, etc _--- ------- 4,381 28,571 17,796 3,204

Total .._----- ------ ----------------- 834,111 766,216 1,250,213 1,103,132

Denatured Alcohol Produced (wine gallons)

Virgin Islands Rum Industries, Ltd ------ 2,863 4,370 3,018 5,895


Denatured Alcohol Used in the Manufacture of Perfume, Bay Rum, and Toilet Water
(wine gallons)

1962 1963 1964 1965

West Indies Bay Co ------------------------------- 8, 759 10,398 13,894 17,920
Virgin Islands Bay Rum Manufacturing Co ...----- 2,861 4,368 3,019 5,720
Virgin Islands Perfume Corp..------------------- -- 147 369
Huntley, Ltd ----------- ---------------- 572 803 275

Total.--- ______ ---- ------------- 11,620 15,338 17,863 24,284


Office of the Tax Assessor

With the expiration of the legislative
restrictions on assessments and taxes im-
posed by Act No. 909, approved on
June 18, 1962, the 1965 tax bills sent to
property owners in March 1966 reflected
the results of the reassessment of two-


thirds of all real property on the islands
of St. Thomas and St. Croix.
The reflection of reassessed values in
the 1965 real property tax bills marked
the beginning-after a legislatively im-
posed 5-year moratorium-of the imple-
mentation of the 1960-61 reassessment
program. This program entails the re-





assessment of one-third of all real prop-
erty in the Virgin Islands every 3 years.
As a result of the reassessment pro-
gram, coupled with the continued vitality
of the construction industry, the total
amount of taxable properties increased
from $83,394,239 to $158,729,323, with a
corresponding increase in taxes from
$1,042,427.99 to $1,984,116.54.
During the fiscal year the 'office up-
graded the mapping system for the island
of St. John. To counteract appraisal
problems encountered on that island due


mostly to the lack of proper boundary
marks and other proper identification of
properties, an assistant appraiser was
assigned to work on St. John on a full-
time basis. Previously unidentifiable
parcels have now been plotted and now
appear on tax maps with proper identifi-
cation marks and plot numbers.
The following charts reflect the con-
tinuing progress being made toward the
realization of a workable and standard-
ized system of assessing and taxing real
property:


Total Assessment and Taxes, St. Thomas, St. Croix, St. John, 1961-65

Year Bills Assessments Taxes Number of Amount of Amount of Taxes
issued exemption exemption modification

1961 ---------- 11,303 $58, 741, 770 $734,272.13 1,576 $47,800.00 $105,173.64 $581,298.49
1962 ------- 11,855 63,346,331 791,829.14 2,099 58,974.72 70,123.68 662,730.74
1963 ---------- 12,679 72,017,612 900,220.15 2,338 67,085.49 35,686.10 797,448.56
1964...------- 13,722 83,394,239 1,042,427.99 2,687 79,430.39 ---- 962,997.60
1965 ---------- 15,120 158,880,727 1,986,009.09 3,062 155,590.57 -- -------- 1,830,418.52


Detailed Chart of Assessments and Taxes Including Homestead Exemptions

Island Year Number of Assessments Taxes
bills issued

St. Thomas..-------- ------------_---- 1961 5,500 $28,098,747 $351,234.34
1962 5,744 30,148,342 376,854.28
1963 6,210 34,520,023 431,500.29
1964 6,760 40,163,098 502, 038.73
1965 7,157 75,529,769 944,122.11

St. Croix ___------------------------- 1961 5,100 28,661,753 358,271.91
1962 5,397 31,078,240 388,478.00
1963 5,731 35,302,237 441,277.96
1964 6,191 40,890,229 511,127.86
1965 7,120 80, 474,180 1,005,927.29

St. John ___--------- --------------------- 1961 703 1,981,270 24,765.88
1962 714 2,119,749 26,765.86
1963 738 2,195,352 27,441.90
1964 771 2,340,912 29,261.40
1965 843 2,876,778 35,959.72






Detailed Chart of Assessment and Taxes After Homestead Exemptions


Island



St. Thomas---_.






St. Croix _----__






St. John_-----


Year



1961
1962
1963
1964
1965

1961
1962
1963
1964
1965

1961
1962
1963
1964
1965


Number of
homesteads


800
989
1,031
1,252
1,424

666
990
1,182
1,288
1,474

110
120
125
147
164


Office of the Recorder of Deeds, St.
Thomas

During the fiscal year, 5,783 docu-
ments were recorded, resulting in the
collection of $46,664.93 in fees, as com-
pared with 5,794 documents recorded and
$58,796.68 collected for fiscal year 1965.
The $46,664.93 figure does not include


Amount of Amount of
homesteads modifications


$20,000.00
24,274.31
28,913.96
33,155.88
69,121.85

25,300.00
31,830.66
34,905.85
42,566.60
80,180.00

2,500.00
2,869.75
3,265.68
3,707.91
6,288.72


$35,442.00
23,628.88
12,512.64



63,131.64
42,087.73
21,148.11



6,600.00
4,407.07
2,025.35


Taxes before
deductions


$351,234.34
376,354.28
431,500.29
502,038.73
944,122.11

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

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


Taxes after
deductions


$295,791.34
328,951.09
390,073.69
468,882.85
875,000.26

269,840.27
314,559.61
385,224.00
468,561.26
925, 747.29

15,665.88
19,489.00
22,150.87
25,553.49
29,671.00


collections made by the department of
public works for attestations and meas-
ure-briefs.
In addition, 393 certified copies of docu-
ments were prepared for which $432.10
was collected in fees.
A comparative analysis of documents
recorded and charges assessed over the
past 5 fiscal years follows:


Documents


Deeds ---------------
Mortgages_ ... -------------------
Chattel mortgages -----------
Conditional sales and contract -----
Cancellation and releases -----
Bills of sale -------------------
Leases -------------------------
Liens----------------------------
Adjudications -----------------
Easements------------------
Death certificates --------------
Assignments ----------------
Trust receipts ---------------
Promissory notes-------------
Financing statements ---------____------
Miscellaneous_ -_ _---- -

Total ______.---------------------


1962


583
349
236
1,052
235
11
43
91
21
3
2
7



97


1963


547
535
570
886
356
155
37
9
31
45
11





171


1964


743
537
655
1,147
1,009
10
59
28
16
39
6
21



397


3,353


1965


920
744
819
2,271
582
6
44
120
30
35
11
23
15
8

169
169


1966


893
721
26
313
602
21
58
903
33
22
12
37

2
1,926
216


2,730


4,767






Comparative List of Fees Collected


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.


The increasing economic development
of the island of St. Croix is reflected to
some extent by the substantial increase
in the revenues collected for services
rendered.
A comparative analysis of documents
recorded and charges assessed over the
past 5 fiscal years follows:


Documents


Deeds .-----------
Mortgages. ----------_ -
Chattel mortgages --___----
Conditional sales and contrs
Cancellation and releases--
Leases __----------
Liens______ ------------
Easements----- _---
Adjudications --------
Death certificates ------
Vssignments----------
Trust receipts ---------
Certificates of attachments-
Attachments. .------------
Financing statements.------
Continuation, termination
release-..---------------
Miscellaneous _____--------


statements, assignment, and


Total-


Total fees collected -


1962 1 1963


676
403
166
161
352




30
10

-- -----
113
-- ----

-- -----

297

2,325


-- -----
295

2,552


1964


748
539
193
357
431




12
9


-- -----
399

2,743


1965


848
622
336
1,762
542




11
25
-- -----
----------

---------
----------

----------
408

4,554


1966


984
765
51
565
671
29
25
14
26
25
54
2
454
57
1,477

40
302

5,541


Comparative List of Fees Collected


1962 1963 1964 1965 1966


---- $14,412.25 $22,111.50 $31,956.50 $44,926.75 $60,012


Passports

The number of passports issued and
renewed during fiscal year 1966 continued
its yearly increase over previous years.
A total of 493 passports was issued and


173 renewed during the year, as com-
pared with 334 issued and 123 renewed
during fiscal year 1965.
The following tables reflect passport
activities and fees collected over the past
5 fiscal years:






1962 1963 1964 1965 1966


Issued --.---...-- --- --------------------- 199 273 273 334 493
Renewed --------.------------------------- 28 60 118 123 173
Amended ...---------- -- -- -- ----- 9 8 8 5 8
Extended .------- ------.------------------- 1 ..------------------ ------------ --

Total -- ..-------------- --- ------- ---- 237 341 399 462 674

Total fees collected-...---------------- --------- $1,931 $2,762 $3,115 $3,621 $5,302

1 Of the amount shown above $64 represents fees collected in the last days of fiscal year 1965, passports for which
were not processed until early July 1965. There is no fee for amending passports.


Notaries Public
There has been an increased interest
by persons desirous of obtaining notary
public commissions over the past fiscal
year. The present quota for the Virgin
Islands is 60 commissions, of which 58
have been subscribed.

Ministerial Licenses

There were 10 letters of authority to
ministers issued during the fiscal year
1966, permitting them to perform civil-
religious ceremonies in the Virgin Is-
lands. The following table reflects the
number of such letters issued during the
last 5 fiscal years:

1962 1963 1964 1965 1966

19 7 14 20 10


No fees are collected for these letters
of authority.


Legislation

This office assigns act and resolution
numbers to all bills passed by the legis-
lature of the Virgin Islands and approved
by the Governor, as well as distributes
copies to all government departments.
These measures are subsequently printed
in slip law form, after which a further
distribution is made and the remainder
filed in the office of the government sec-
retary. The following table shows the
number of acts and resolutions passed
and approved during fiscal year 1966:











Department Reports



DEPARTMENT OF EDUCATION

(PERSONNEL: 840)-(OPERATING APPROPRIATION: $5,185,589)


Continued progress was evidenced in
public school education programs during
fiscal year 1966. The year was especially
noted for the expansion of educational
programs made possible through both an
increased operating budget and through
federally funded projects under the vari-
ous acts designed for this purpose.
Efforts to upgrade professional stand-
ards resulted in significant improvement
and advancement. The third and final
year of the New York University con-
tract continued the work of 2 previous
years in the executive training program,
demonstration school, and inservice
training programs for school administra-
tors and teachers.
Teachers engaged in independent
study under the evening program at the
College of the Virgin Islands. The col-
lege, in addition, cooperated with the de-
partment in offering various seminars
and workshops for the benefit of teachers.
To further increase the skills and
knowledge of educators, the department
sponsored a series of workshops, utiliz-
ing outside consultants, in such areas as
reading, foreign languages, and geogra-
phy.
With increased operating funds, the
department was able to effectively move
forward with its programs designed to
strengthen curriculum. A special appro-
priation permitted the purchase of criti-
cally needed supplies such as textbooks
and other education aids.
A followthrough program of Project
Headstart was initiated under title I of
the Elementary and Secondary Educa-


tion Act which afforded preschool train-
ing for some 250 children on all three
islands.
The department's first comprehensive
summer project was initiated under title
I funds, making possible a far-reaching
cultural enrichment and remedial study
program on all three islands.
Another significant step was taken
with the establishment of a personnel
section under the office of the commis-
sioner. The activities of this section
will include the recruitment, orientation,
and placement of all instructional per-
sonnel; the formulation 'of job specifica-
tions for instructional personnel; and
the processing of personnel documents
for all employees.
To relieve the education administra-
tion of noninstructional responsibilities,
fiscal year 1966 saw the transfer of the
bureau of recreation and sports promo-
tion to the department of agriculture.
Progress continued in the vocational
education program with 12 courses of
study offered on the high school level.
Sharing the responsibility for the admin-
istration of the manpower development
and training program with the Virgin
Islands Employment Security Agency
and the department 'of labor, the voca-
tional education office was instrumental
in initiating a project under which stu-
dents are 'trained at schools outside the
Virgin Islands in courses unavailable un-
der the local program.
The school lunch program recorded
higher participation during the fiscal year
and continued progress was noted in the





vocational rehabilitation services of the Public School Enrollment
department.
Library facilities on St. Thomas and St. The number of pupils in the public
John underwent considerable expansion schools increased from 9,399 in fiscal 1965
and plans are being prepared for the re- to 10,254 in fiscal 1966. The following
construction of the Christiansted Public table shows the figures for the past 5
Library on St. Croix. years:


1961-62 1962-63 1963-64 1964-65 1965-66


Kindergarten --------------- 495 545 564 690 813
Grades 1 through 6._- ------------------- 4,740 5,086 5,197 5,536 5,993
Grades 7 through 12_ ---------------- 2,389 2,573 2,910 3,173 3,448

Total_- --------------------- 7,624 8,204 8,671 9,399 10,254


A. Virgin Islands Appropriation-Fiscal
Year 1966

Division Appro- Percent
priation of Total


Office of the commissioner $135,143 2.36
Curriculum and instruction._. 3,036,280 53.06
Business ----------- 90,491 1.58
Property, procurement, and
auxiliary services - 703,386 12.29
Schoollunch..-- ------- 538,835 9.42
Community programs--------- 332,559 5.81
Grants and contributions ---- 886,191 15.48

Total.------------- 5,722,885 100.00


B. Federal Aid Funds and Grants-Fiscal
Year 1966
Amount
National Defense Education Act
(titles III, V, and X) _--__-- 1$162, 104
Vocational education_-------- 67, 017
Vocational rehabilitation------ 84, 295
Public library services (title I
and II) -- ------------, 41,910
Special Federal grants-Public
Law 874-__------------- 134, 068
School lunch (special fund)--. 103, 603
Manpower development and
training ---------- 2 49, 565
Project headstart------------- 193, 544

'Includes amount received in fiscal year
1967.
2 Includes a figure for program started in
fiscal year 1965, and into fiscal year 1966, and
one beginning in April 1966.
3 Includes funds that were approved but not
received.


B. Federal Aid-Continued

Elementary and Secondary Edu-
cation Act-----------------
Neighborhood Youth Corps (1st
and 2d projects)------------
Adult basic education --_-----


Amount

1483, 391

189,606
40, 480


Total ---- ------------ 1,449, 583

In addition, the division accounted
for funds for the following
special projects:
School crash construction re-
volving fund (proceeds from
bond issue) ----------- 2,979,798
Repairs and improvements to
school building (single I
matching funds)----------- 75,000
Peace Corps program (reimburse-
ment plan) -- --------- 28, 700

Total --- ------------ 3, 083,498


C. Total Operating Funds Available-
Fiscal Year 1966

Source Amount Percent


Virgin Islands appropriated
funds --------------- $5,722,885 79.79
Federal aid funds and grants__ 1,449,583 20.21

Grand total _------ 7,172,468 100.00

Total outlay for edu-
cational activities
and related services.-- 10,255,966





D. 6-Year Comparison of Total Operating
Budgets


Year


1960-61--..._
1961-62 ...._
1962-63 -----
1963-64 ---
1964-65--..--
1965-66 -_


Local
funds

$2, 142, 812
2,574,418
3,154,328
3,856,974
4,689,633
5,722,885


Federal
funds

$283,864
269, 485
323,971
370, 225
419,466
1,449,583


Total


$2,426,676
2,843,903
3,478,299
4,227,199
5,109,099
7,172,468


School Construction Program

Increased enrollment at the beginning
of the school year made it necessary to
add four temporary buildings to house
eight classes at the Christiansted School
complex. The new school at Grove
Place, St. Croix, was in operation with
nine classes. Completed during the year
were nine additional classrooms on this
site as well as an addition to the Julius E.
Sprauve School in Cruz Bay, St. John.
Construction is in various stages of
progress at the Central Senior High
School on St. Croix, at the Wayne
Aspinall Junior High School on St.
Thomas, and at the Tutu Elementary
School on St. Thomas. Work is also
progressing on the addition to the Nisky
School on St. Thomas.
To purchase equipment for the new
buildings, funds available from the bond
tssue program were increased to $4,-
700,000.

Staff Training Programs

Five of the six departmental execu-
tives assigned to the executive training
program received advanced training and/'
or field assistance. The deputy com-
missioner for curriculum and instruction,
the director of secondary education, and
the director of pupil personnel services,
have been at New York University pur-
suing full-time graduate programs since
February 1, 1966. All are matriculating
for the doctor of education degree.
During the fall semester, the adminis-
trator for business and the director of
elementary education completed their re-
quirements for a master's degree.


249-079 0 67 4


During the 1965-66 academic year, five
New York University-Virgin Islands
project workshops were sponsored. A
total of 212 teachers enrolled in the vari-
ous workshops.
Through the New York University-
Virgin Islands project, consultants of the
university completed a status study de-
tailing selected characteristics of 454 pro-
fessionals employed by the department.

Demonstration School

The Nisky Demonstration School com-
pleted its second year of operation. Pre-
liminary data indicates that students on
all grade levels are continuing to close
the national norm-local performance gap
in the areas of reading, arithmetic, and
language arts.
Readiness tests administered to first
graders in the fall of 1965 produced scores
considerably higher than those recorded
for the 1964-65 counterpart population.

Curriculum and Instruction

Curriculum revision and the institu-
tion of various federally assisted pro-
grams constituted the major highlights
of the fiscal year in the division of cur-
riculum and instruction.
Attention was focused on language arts
utilizing several approaches-acquisition
of library books and other teaching aids,
utilization of teacher aids, construction
of a basic course for Spanish-speaking
students, Science Research Associates
materials and services, reading consul-
tative services, and the establishment of
listening centers.
Many teachers were engaged in in-
service courses during the school year.
Speech improvement and reading work-
shops were conducted for elementary
schoolteachers. A course was offered to
principals and supervisors in order to
gain insight into the construction and
design of curriculum guides. A language
arts curriculum guide and a mathematics
guide were completed, and work was be-
gun on a foreign language guide.
Running concurrently were semester
seminars for teachers of disadvantaged
children under the auspices of the Col-

45





lege of the Virgin Islands. A large num-
ber of teachers were also enrolled in the
evening program at the college under-
going independent study in courses of
their choice.
Under the auspices of New York Uni-
versity a 2-week workshop was conducted
for teachers engaged in special education.
Sample units were prepared and plans
mapped for the coming year. Supervi-
sors and principals conducted subject-
centered workshops and demonstrations
for small groups of teachers throughout
the year.
Utilizing title I funds of the Elemen-
tary and Secondary Education Act, the
department devised and conducted a
unique summer program in which close
to 300 students on all three islands en-
gaged in an 8-week cultural enrichment
program. Benefits of these programs,
designed to increase the communicative
skills of the enrollees through exposures
to the dramatic arts, will be tested during
the coming school year.
Peace Corps school activities, while at
a minimum during the year, saw a small
number of trainees spending a portion
of the first semester in the islands'
schools and the usual reciprocal rela-
tionship continued. VISTA volunteers
are stationed in various disadvantaged
areas throughout the islands and are par-
ticipating in cooperative programs with
schools in those areas.
A special appropriation permitted the
purchase of new equipment and supplies
selected by principals and teachers on all
islands. New textbooks in all subject
areas have been provided for all classes
on the elementary level. The first ship-
ment of updated maps and globes have
been received and introduced to teachers
and principals at special workships.
In the area of curriculum and instruc-
tion, New York University consultants
continued to make significant contribu-
tions. A combination "core-team teach-
ing" form of school organization was de-
veloped by them for the secondary
schools. This format, recommended for
grades 7 and 8, will become operative in
fiscal 1966-67.
Resource assistance was provided by


the consultants in conjunction with the
development of a 4-year teacher train-
ing program. This interim program will
allow, some 3 years hence, the College of
the Virgin Islands to confer the bachelor
of arts degree in teacher education.
As a part of a New York University
workshop, participating educators devel-
oped an extensive language arts and cur-
riculum guide. This document when
printed will be made available to all ele-
mentary schoolteachers.
Project Headstart, initiated during the
summer of 1965, continued on two levels.
A followthrough program, made possible
through a title I grant, saw 580 of the
original Headstart children enrolled in
a continuing program at 29 centers from
March 12, 1966, to June 18, 1966. In
April 1966, 27 Headstart centers were
activated, utilizing 27 teachers for some
405 new enrollees in the program.
Teacher turnover and recruitment re-
mains a concern of the division of cur-
riculum and instruction, and close at-
tention is being given to ways and means
of training a higher number of the in-
structional staff from year to year.

Vocational Education

Several steps were taken to strengthen
the voactional education program in the
department. An assistant director was
appointed assuring St. Croix full-time
supervision of the program. The pro-
gram coordinator returned from study
leave, affording St. Thomas similar su-
pervisory services.
The Claude O. Markoe School in Fred-
eriksted this year enrolled only students
on the junior high school level, offering
them vocational courses in home eco-
nomics, with 60 enrollees, and industrial
arts, with 40 enrollees.
At the Julius Sprauve School in St.
John, home economics was offered to 26
students on the 7th, 8th, and 9th grade
levels, and industrial arts courses to 54
students on the same grade levels.
At Charlotte Amalie High School on St.
Thomas and Christiansted High School
on St. Croix, courses, in addition to home
economics and industrial arts, were of-
fered in auto mechanics, business educa-





























Is


Headstart program.


tion, plumbing, agriculture, and practi-
cal nursing.
In addition to the inschool programs,
classes in subjects related to the trades
were offered to apprentices in St. Thomas
and 'St. 'Croix. Twenty-four apprentices
registered in St. Thomas and 21 in St.
Croix.
In cooperation with the Virgin Islands
Employment Security Agency and the
department of labor, the department,
through the vocational education office,
administered the manpower development
and training program. During the year
three projects operated in St. Croix, six
in St. Thomas, and two in Puerto Rico.
Approximately 122 persons were enrolled
in these courses.
The referral of five young men from
St. Thomas and five from St. Croix to
the Mayaguez Vocational School in
Puerto Rico for office machine repairman
training was of special significance.
Also, four students from the islands
were sent to the Rio Piedras Vocational
School in Puerto Rico for training as
diesel mechanics.


These two groups initiated a new pro-
gram procedure that allows the Man-
power Development Training Act efforts
to include the training of students out-
side the islands in courses unobtainable
locally.

Pupil Personnel Services

Pupil personnel services, functioning
as a part of the division of curriculum
and instruction, focused upon assisting
students in their 'total adjustment and
in developing greater self-direction, as-
sisting school staff members in gathering
and utilizing information in 'order to un-
derstand pupils better and to provide for
their individual differences.
In accomplishing these objectives,
services were provided by seven guid-
ance counselors, two guidance coordina-
tors, three attendance counselors, two
school nurses, and other specialists from
the department of social welfare and the
department of health's division of men-
tal health.
As a result of a review of the testing





program, the bureau was provided, for
the first time, the services of a coordina-
tor in charge of testing. Modifications
were made to coordinate testing on all
levels in public and nonpublic schools.
The present program calls for the read-
ing readiness test in grade 1: achieve-
ment tests in grades 2 through 8, and
grade 11; mental ability tests in grade
2; aptitude tests in grades 9 and 11; and
college entrance tests, scholastic aptitude
and vocational aptitude tests for grades
11 and 12, where desired.
As a part of the information services,
orientation activities were provided for
students moving from grade to grade,
from one school to another, and from
secondary schools to higher institutions
or into employment. The maintenance
of an educational-occupational file and
group and guidance activities were also
part of this service.
During the year a followup study was
made of graduates of the classes of 1955
to 1962. It was found that the students
who completed college were in the fields
of teaching, nursing, business adminis-
tration, social work, and law, with others
continuing their studies for degrees in
medicine.
One hundred twenty-seven scholarship
applications were processed following ap-
proval by the Virgin Islands Board of
Education. The sum expended for these
totaled $117,741. Recipients are en-
rolled in colleges on the mainland, in
Puerto Rico, and at the College of the
Virgin Islands.
High school equivalency tests were ad-
ministered on St. Thomas and St. Croix,
and 82 adult certificates were awarded.

Vocational Rehabilitation

During the year there were 102 cases
in referral status. Fifty-six cases were
closed as rehabilitated lat the end of the
year. These 56 persons received voca-
tional rehabilitation services and were
placed in jobs dictated by their interest
and ability.
The sheltered workshop in St. Croix
is successfully operating as an integral
part of the rehabilitation program. This
facility is providing vocational evalua-


tion, training, and remunerative employ-
ment for 20 aged ,and chronically ill
clients.
Renovation and repairs to the building
to be used as a sheltered workshop in St.
Thomas are in progress. The facility is
designed to provide services for the dis-
abled with emphasis on the mentally re-
tarded. This is a joint project involving
close casework coordination between the
department of social welfare and voca-
tional rehabilitation.
The division was involved in many
community projects dealing with the dis-
abled. Among these were the annual
"ability counts" contest, sponsored by
the Governor's committee on the employ-
ment of the handicapped, and a project
for symposium on research and rehabili-
tation sponsored by the College of the
Virgin Islands.
During the year, $49,140 in insular
funds was matched with $140,479 in fed-
eral funds for the operation of the pro-
gram.

Adult Basic Education

Adult basic education includes reading
and the other language 'arts, arithmetic,
and English as a second language. In-
struction is related to the needs and in-
terests of the students in each particular
class and centers around such adult ex-
periences as job orientation, consumer
buying practices, health habits, home-
making, family and community relation-
ships, and citizenship responsibilities.
The allotment of Federal funds for
adult basic education totaled $40,480,
with the local government contributing
10 percent of this amount.
The first class began at Estate Profit
in St. Croix on November 8, 1965. En-
rollment was approximately 50, and
emphasis was on the teaching of English
to Spanish-speaking residents. By the
end of June, a total of 16 classes had
been established at 8 different locations
in St. Thomas and in St. Croix. Enroll-
ment at the end of the fiscal year totaled
185 on the two islands.
The staff of the adult basic education
program included a coordinator of the
program, 15 teachers, 2 supervisors of





reading and the other language arts and
arithmetic, 1 supervisor of English to
Spanish-speaking residents, 1 counselor,
and 2 recruitment and counseling assist-
ants. With the exception of the coordi-
nator, these persons render service on a
part-time basis.
In addition to the services of this staff,
consultation also has been solicited from
other department of education special-
ists, Peace Corps trainees, Volunteers in
Service to America, and individuals from
the community.

School Lunch Program

The program was in operation at 28
public schools and 5 private schools, with
an average daily serving of 8,973 type
"A" lunches, with no cost to the pupils.
Fifty-six full administrative reviews
and 122 partial reviews were made during
the school year of all lunchrooms at St.
Thomas, St. Croix, and St. John.
The school lunch program operation
involves 137 food service workers, includ-
ing cooks, kitchen managers, and an ad-
ministrative staff consisting of 9 work-
ers. Working as a team, they served
1,584,284 nutritious type A lunches
through 33 kitchens.
The total enrollment on March 31, 1966,
was 12,605, with a 70.66-percent partici-
pation as against fiscal 1965 with 67 per-
cent participation.
The overall insular appropriation for
1965-66 was $538,885, and the Federal
appropriation amounted to $103,603.

Business and Auxiliary Services

The business office of the department
of education received appropriations
totaling $5,722,885. A total of $3,083,498
was received in capital improvement
funds and $1,449,583 in Federal grants.
In response to appeals by pupil trans-
portation contractors in St. Thomas and
St. Croix for an increased rate to offset
increased operating costs, and for the


elimination of the "1 year" contract, fol-
lowing enactment of legislation to permit
this action, contracts covering this serv-
ice were revised to cover a term of 5
years. The contracts also contain a re-
vised rate based upon a uniform rate
per mile of operation in relation to bus
capactiy and character of operation,
thereby eliminating certain former dis-
parities and allowing more flexibility in
accommodating routes and trips to chang-
ing requirements.
Average daily usage of pupil trans-
portation on St. Croix rose from 2,040 in
fiscal 1965 to 2,184 this year. St. Thomas
usage rose from 514 in fiscal 1965 to 563
this year. Average daily usage on St.
John remained unchanged from 120. Op-
erating costs for this service amounted
to $255,280, as compared with $181,120
in fiscal 1965.

Public Libraries

A complete inventory was made in
September on equipment and furniture in
the islands' public libraries. The St.
Thomas Public Library was closed for a
2-month period for renovations to the
stack area. The library reopened in
February 1966, and the hours of service
were lengthened to include 3 hours on
Saturday.
The photoduplication laboratory on
the third floor of the St. Thomas Library
underwent complete refurbishing. The
library now has a fully equipped dark-
room, housing a contact printer, two mi-
crofilm cameras, and other graphic equip-
ment. A microfilm reading room has
been added.
A total of $38,050 is available for the
reconstruction of the Christiansted Pub-
lic Library. This 2-year project is now
close to the bidding stage.
A branch library was opened in French
Town, St. Thomas, during the year and
the branch on St. John was moved to the
Julius E. Sprauve School.





COLLEGE OF THE VIRGIN ISLANDS

(PERSONNEL: PERMANENT: 100; TEMPORARY: 30)-(OPERATING APPROPRIATION:
$849,133)


In its third year of operation, the Col-
lege of the Virgin Islands grew in size,
strength, and maturity.
At its second commencement in June
1966, diplomas were awarded to 33 grad-
uates, as contrasted with the 11 students
of the first graduating class.
A significant development at the col-
lege has been consistent improvement in
the quality of each new class of students.
This may be due to three factors: High
school students are better motivated by
the prospect of continuing their educa-
tion through the college level; the effect
of the college's upward bound project and
precollege summer school programs;
heavy investment in individual instruc-
tion for students preparing themselves
for college-level work.

Growth in Enrollment
The enrollment of 128 students and 600
part-time students indicates a substan-
tial increase in the student body and ex-
ceeds the projected enrollment by approx-
imately 30 percent. Proportionately, a
greater number is from the Virgin Is-
lands than in the previous fiscal year. It
is reliably indicated that enrollment of
full-time students will increase at least
75 percent in the coming year.

Competence of Faculty

The faculty, which continues to be the
college's most important asset, represents
a level of competence comparing favor-
ably with many major colleges and uni-
versities across the United States. Stu-
dents transferring from the College of the
Virgin Islands have been admitted to
more than 20 mainland universities.

Progress Toward Accreditation

The college has been a recognized can-
didate for accreditation by the Commis-
sion on Institutions of Higher Education
of the Middle States Association of Col-


leges and Secondary Schools since March
1965. The commission determined "that
the College of the Virgin Islands is estab-
lished on a sound basis, that its develop-
ment is proceeding in accordance with
policies and procedures advocated by the
commission, and that the college appears
to be moving satisfactorily toward ac-
creditation on a normal and definite
schedule."

4-Year Programs

A major forward step was taken when
19 students, who had completed 2 years
at the College of the Virgin Islands or
were teaching in the school system, were
enrolled in New York University to con-
tinue their education there as juniors.
Under a cooperative arrangement with
New York University, the students will
return to the College of the Virgin Is-
lands as seniors to continue their course
work and receive the baccalaureate de-
gree.
With the beginning of this 4-year pro-
gram in teacher education, the board of
trustees of the College of the Virgin Is-
lands has approved the progress of the
college to 4-year baccalaureate status.
This was done at the meeting of the board
of trustees in June 1965, and was con-
firmed by the board at its meeting in
March of 1960. Under this program the
college will grant its first baccalaureate
degrees in selected liberal arts concen-
tration areas and in teacher education
in June 1970, using the intervening pe-
riod to strengthen itself for this purpose.

Special Programs

The college provides a continuing
stimulus to the cultural life of the com-
munity through lectures, films, theatrical
productions, musical presentations, art
exhibits, library facilities, and the spon-
sorship of numerous meetings, confer-
ences, and seminars.





Continuing Education Division

The college played a vital role in fur-
thering the education of adult residents
of St. Thomas, St. Croix, and St. John
and is nearing the national record of per
capital involvement of adults in college
educational programs. Community em-
ployers have noticed a marked improve-
ment in the capabilities of employees who
continue their studies of job-related
subjects.

Building Programs

In order to meet the drastic need for
new residential facilities, a major build-
ing program was planned to be launched
before the end of the year. It includes a
women's dormitory, three faculty houses
and a six-unit faculty apartment, together
with site improvements.
The new construction marks the first
phase in the evolution of a master plan
designed to provide the islands with a
modern physical plant to match the col-
lege's academic growth.

Activities on St. Croix and St. John

The college continues to strive to serve
the islands of St. Croix and St. John as
directly as possible. Its continuing edu-
cation program in St. Croix was strength-
ened with the addition of a full-time di-
rector. Plans were also made to assist
with the Virgin Islands Islands Exten-
sion Service. In addition, the college
enrolled increasing numbers of St. Croix
students in its regular full-time residence
program. In St. John an agreement was
made with the National Park Service to
establish an ecological research station
at Lameshur Bay, thereby stimulating
interest in the growth and development
of marine sciences.

The Fisheries Program

Through a grant from the Bureau of
Sport Fisheries and Wildlife, U.S. De-
partment of the Interior, a fisheries
program was established under the di-
rection of the College of the Virgin
Islands. Many preliminary aspects of
the program related to financing, con-


tracts, and temporary laboratory space
needed to be clarified. It was also
necessary to negotiate for a proper site
for the construction of the fisheries re-
search laboratory. Refinement of most of
these objectives has continued through-
out the year. Obtaining and maintain-
ing suitable research vessels has also
required considerable time and effort.
Research on the project has included
a broad and general survey of the entire
Virgin Islands chain from St. Thomas
to the British island of Anegada and
south to St. Croix. Boats and aircraft
have been utilized in this effort to become
acquainted with the general ecological
features of the marine environment of
the area. These observations have been
correlated with those features which are
indicated on available charts and maps
for this region and applicable corrections
made for the use of project personnel.
Sample collecting stations have been
set up on the basis of this general survey,
and many water samples and collections
of marine organisms have been made
with the objective of relating the various
ecological factors of the environment to
the fishery potential and the populations
of species composing the fishery.
Since the microscopic, green, chloro-
phyll-producing organisms in the sea
water trap the energy from the sun and
manufacture the food that forms the basis
for all the marine food chains leading to
fisheries products, it is necessary to know
something of this productivity. For this
reason, many water samples from the
different collecting stations have been
analyzed for their chlorophyll content.
In addition, by using radioactive carbon
as a tracer, it has been possible to arrive
at some estimates of chlorophyll basic
productivity by incubating water samples
under both natural and controlled ex-
perimental conditions. The results of
these experiments can be expressed in
terms of productivity of a given volume
of sea water per hour or per day. By
these means, it is possible to compare the
productivity of selected areas within Vir-
gin Islands waters. Some of these data
have been obtained in a cooperative re-
search program with Columbia Univer-





sity, and financial support for further
cooperative work of this nature has been
requested from the National Science
Foundation.
Geographical statistics which are of
interest and benefit to fishermen have
been compiled and distributed. These
data include such things as shoreline
miles for every island and cay in the
chain, distance along the 100 fathom
curve, area between the shorelines and
the 100 fathom curve, and other features
related to fishing.
Construction of a 12- by 32-foot cata-
maran research vessel is well underway.
This vessel will have a large glass-bot-
tomed observation well, a large live well,
provision for scuba divers, many elec-
tronic instruments, winches for lowering
and raising objects in the water, and
many other features. It will be used pri-
marily for charting the bottom features
of inshore waters and studying fish popu-
lations.
The organization of the Virgin Islands
Ecological Research Station of the Carib-
bean Research Institute of the College of
the Virgin Islands is proceeding slowly,
but in the proper direction. This sta-


tion will provide a site from which a
great deal of ecological research can be
carried on. This will include the fish-
eries research laboratory and the pro-
grams in fisheries as well as terrestrial
studies and marine research other than
fisheries. To date, meetings and nego-
tiations have involved more than 15
major stateside universities and re-
search institutions in addition to such
agencies as Jackson Hole Preserve, Inc.,
the National Park Service, the Virgin
Islands National Park, and the National
Science Foundation.
During this year, it was also possible
to negotiate a cooperative fisheries re-
search program to begin in fiscal 1967.
Under the terms of this new program the
Bureau of Sport Fisheries and Wildlife
will continue with the support given un-
der the Dingell-Johnson bill, and the
Bureau of Commercial Fisheries will
give support under Public Law 88-309.
This latter bill requires matching funds
from the government of the Virgin
Islands on an annual basis. This new
project should obviously make it possible
to accomplish more and broaden the
scope of the fisheries program.


DEPARTMENT OF HEALTH

(PERSONNEL: 739)-(OPERATING APPROPRIATION: $5,277,714)


The state of health in the Virgin Is-
lands continued to be excellent during
the fiscal year. The usual number of
small outbreaks of childhood diseases
was significantly reduced. The number
of cases involving Rubella (measles)
dropped off markedly as a result of the
immunization program recently insti-
tuted. There was, however, a limited
outbreak of Rubella (German measles)
which, when contracted during the first
trimester of pregnancy, often results in
deformity of the child. Since there were
few reported cases of pregnancy-involved
Rubella, it is assumed there will be no
birth defects caused by this disease.


New Health Centers

The most pressing problem facing the
health department is that of meeting the
rapidly and ever-increasing demand for
services with facilities which were out-
grown a decade ago. In the planning of
new health centers, noted in previous re-
ports, progress has been satisfactory.
The final report of the second phase of
design was submitted in the latter part
of the fiscal year. This leaves working
drawings, specifications, and other bid
documents to be prepared before archi-
tectural work is completed. This last
phase is expected to proceed on schedule
and actual construction of these health





centers will commence in early 1968. The
cost of construction has increased. Pres-
ent estimates of each health center, con-
sidering rising building costs, is approxi-
mately $20 million. This includes the
hospital, long-term care center, public
health center, outpatient clinic, and resi-
dence staff facilities. The continued
rapid growth of the population as well
as the increasing number of nonresidents,
both tourists and immigrant laborers,
serve to preclude any reduction in the
scope of this project.


Continued Expansion of Health
Services

Health facilities and services con-
tinued to expand. The staff was in-
creased to include a traumatologist, nurse
anesthetist, several public health phy-
sicians, and other supporting personnel.
Laboratory services were expanded and
several medical technologists added to
the staff.
Additions to be made to hospital facili-
ties in Christiansted and St. Thomas
which would provide minimum services
during the interim period prior to the
opening of the new health centers were
delayed by various technical and admin-
istrative problems. These obstacles have
now been overcome and work will begin


shortly. It is anticipated that facilities
and personnel will be further expanded
with funds available under the incoming
medicare program.


Bureau of Vital Records and
Statistical Services

Again, a new birth record was estab-
lished in the Virgin Islands with a total
of 1,999 births. This increase of 237 over
the previous year was almost evenly dis-
tributed between the islands of St.
Thomas and St. Croix, with St. John
approximating the same as last year.
The birth rate in 1965 was 40.2 per 1,000
estimated population. St. Croix had 858
live births with a rate of 39.0, an increase
of 112 over the previous year. St.
Thomas had 1,091 with a rate of 41.4 per
1,000, an increase of 116 over 1964. An
average of 97 percent of all live births
occurred in hospitals.
There were 417 deaths in 1965, 74
more than in the previous year. Diseases
of the heart accounted for 36.6 percent
of all deaths in the islands. Diseases of
the respiratory system accounted for 9.8
percent of all deaths, as did deaths due
to accidents. Of the total number of
deaths, 28.8 percent involved persons 75
years of age and over. The following
tables show deaths by age distribution
and leading cmuses:


Age Distribution of Deaths-1965


Total --------------- -

Under 1 year_--------- ------------
1 to 4 years ----------------------------
5to 14 years -._________------
15 to 24 years --------- -------------------
25 to 44 years... ---------. ----------- ----------
45 to 64 years---------------------------
65 to 74 years. ------ -------------------
75 years and over ----------
Unknown_ --------------------------


Virgin Islands


417

60
6
8
15
36
86
81
120


99.9

14.4
1.4
1.9
3.6
8.6
20.6
19.4
28.8
1.2


St. Croix


200

20
2
6
4
14
44
40
69
1


100.0

10.0
1.0
3.0
2.0
7.0
22.0
20.0
34.5
.5


St. Thomas and St.
John


217

40
4
2
11
22
42
41
51
4


99.9

18.4
1.8
.9
5.1
10.1
19.4
18.9
23.5
1.8


I Calendar year.






Leading Causes of Infant Deaths
VIRGIN ISLANDS

Number Rate 1 Percent of
all deaths


1. Asphyxia and atelectasis..---------------------------------- 17 8.5 28.3
2. Immaturity... ..---- --------------------- ------ ----15 7.5 25.0
3. Bronchopneumonia..--.....---------- ------------- 8 4.0 13.3


ST. CROIX


1. Immaturity........-------- -------------------- -------- 8 9.3 40.0
2. Asphyxia and atelectasis ------------------------------------ 3 3.5 15.0
3. Bronchopneumonia ------------ ------- ------ --------- 2 2.3 10.0


ST. THOMAS AND ST. JOHN


1. Asphyxia and atelectasis ----------------------------------------- 14 12.3 35.0
2. Immaturity-...--------------------------- ------------ 7 6.1 17.5
3. Bronchopneumonia ------------------- 6 5.3 15.0

1 Rate per 1,000 live births.

Leading Causes of Deaths
VIRGIN ISLANDS

Number Rate I Percent of
all deaths


1. Diseases of the heart --------------------- --------------136 273.4 36.6
2. Accidents 2--.------------------------------------- ------ 41 82.4 9.8
3. Diseases of the respiratory system 2 -------- -------- 41 82.4 9.8
4. Cerebral hemorrhage and other vascular lesions affecting central
nervous system .--------..-------------------------------- 39 78.4 9.4
5. Diseases of early infancy---------------------------------------- 36 72.4 8.6
6. Malignant neoplasms ---------- 30 60.3 7.2


ST. CROIX


1. Diseases of the heart ------------------------------- 73 331.5 36.5
2. Cerebral hemorrhage and other vascular lesions affecting central
nervous system-------------_ _____ --------------- 25 113.6 12.5
3. Accidents-------------------------------------19 86.3 9.5
4. Malignant neoplasms.. ...-- -..---------- ------- ----------- 19 86.3 9.5
5. Diseases of respiratory system --------------------------------- 13 59.0 6.5
6. Diseases of early infancy -------------------------------------- 12 54.5 6.0


ST. THOMAS AND ST. JOHN


1. Diseases of the heart....---- ..._- -----------------------------.. 63 227.3 29.0
2. Diseases of the respiratory system---- ----------------------- 28 101.1 12.9
3. Diseases of early infancy ------ ------------------- 24 86.6 11.1
4. Accidents ----_---------------------- 22 79.4 10.1
5. Diseases of the digestive system ----- ---------------------- 16 57.8 7.4
6. Cerebral hemorrhage and other vascular lesions affecting central
nervous system -- ------ 14 50.5 6.5

1 Rate per 100,000 estimated population.
2 Tied for second place.





Summary of Vital Statistics, Virgin Islands and Each Island-1965 '


[Birth and death rates per 1,000 population. Infant and neonatal death rates and fetal death rates per 1,000
live births]

Virgin Islands St. Croix St. John St. Thomas

Number Rate Number Rate Number Rate Number Rate

Live births ------------ 1,999 40.2 858 39.0 50 37.1 1,091 41.4
In home- _-------- -- 44 22.2 31 23.6 1 22.0 12 21.1
In hospital -- ------ 1,955 297. 8 827 296.4 49 298.0 1,079 298.9
Deaths ------------------ 417 8.4 200 9.1 16 11.9 201 7.6
Infant deaths- -------. 60 30.0 20 23.3 2 40.0 38 34.8
Neonatal deaths ---------- 45 22.5 16 18.6 2 40.0 27 24.7
Maternal deaths----------- ---------- ---- --------- ---- - - - --
Fetal deaths..------------- 72 36.0 22 25.6 -------- ----- 50 45.8
Marriages ------------ 595 -----_ 257 ------ __------ ---------- 3338
Divorces-....-----.-. --- 249 ----- 73 --- ------_-----__ 3176 .
Adoptions -- -------- 6 __-- ---------- ---------- ---------- 6 -

1 Calendar year.
2 Percent of total for home and hospital.
3 Includes figures for St. John.


Division of Hospitals and Medical
Services

The division continued to handle an
increasing workload. The number of
birth deliveries, 1,999, broke previous rec-
ords, as did cases handled in various
other divisions. Contributing factors
are increased population and industriali-
zation, with attendant industrial acci-
dents and vehicular traffic. This divi-
sion is particularly concerned with the
rising number of accidents involving teen-
agers with motorcycles and motorscoot-
ers.
Considerable success has been achieved
in the recruitment of staff, both in medi-
cal and paramedical services. As ade-
quate housing become available and com-
pensation for professional personnel more
in line with mainland scales, it is ex-
pected there will be less difficulty in this
area.

Division of Mental Health

Important strides have been taken by
this division. A staff of four psychia-
trists now includes two who are bilingual,
thereby bettering service to St. Croix's
large Spanish-speaking population. For
the first time, St. Croix has a full-time
resident psychiatrist.


Legislation was passed authorizing the
establishment of the Virgin Islands Diag-
nostic Center, to be used for the training
of mentally retarded children. The
building is nearing completion and re-
cruitment of staff is in progress. The
center has requisitioned an electric-en-
cephalograph (EEG) machine, the first
in the Virgin Islands, and a candidate
is receiving training at the Massachusetts
General Hospital, Boston, in order to
qualify as an EEG technician. The cen-
ter will cooperate with maternal child
health and crippled children services, the
division of public health and other serv-
ice programs of the health department.
Success is already evident in the divi-
sion's efforts to orient the community in
its acceptance of mental health services.
The Virgin Islands Psychological As-
sociation was formed by staff members.
One of its first acts was to form a com-
mittee to prepare legislative proposals
which would provide for the licensing
of psychologists and for a board of ex-
aminers to certify psychologists eligible to
practice in the Virgin Islands. Inservice
training, both accredited and nonaccred-
ited, has been sponsored. Two-semester
course was conducted for public health
nurses on child development. The divi-
sion cooperated with several public and
private agencies in their promotion of





workshops by providing consultants,
speakers, and group leaders from among
its staff.

Division of Public Health
In the field of public health, gains have
been made. Vaccination against measles
was initiated. The tuberculosis control
program was intensified and detection
services for diabetes initiated. Exami-
nations under the cancer control program
were expanded and intensified, as were
those in the area of venereal diseases.
The home care program, taking advan-
tage of an increased grant from the U.S.
Public Health Services, is extending
services to a greater number of people.
A cardiologist was appointed to the staff
of the heart disease control program.
Additional public health clinics were
established in St. Thomas and St. Croix.

Bureau of Dental Health

Progress was evidenced with the addi-
tion of an orthodontist and other person-
nel. New equipment was installed in
the dental unit in Frederiksted. Two
mobile dental units were ordered for St.
John and St. Croix to provide services to
rural areas.

Bureau of Public Health Laboratory

The workload continued to accelerate.
The laboratory performed 30,000 exami-
nations on 26,000 specimens during the
fiscal year. The first positive case of
phenylketonuria (pku) in the Virgin
Islands was detected. The laboratory
also performs diabetic screening tests,
using a new autoanalyzer. Random
rheumatic fever testing was performed on
375 schoolchildren, revealing 19 positive
group A and 37 group B bitter hemolytic
streptococcus. Examinations were per-
formed on 403 imported workers in St.
Croix for yaws and filariasis. Seventy-
nine indicated positive VDRL and all
smears for filariasis were negative.
High-quality laboratory work is insured
through constant checks and evaluations.
The services of the bureau were reviewed
by the U.S. Public Health Service and its
reports commendable.


Bureau of Health Education

The Bureau was successful in recruit-
ing a director of the program and a health
educator for St. Croix. Twenty-five per-
sons received special inservice training
in audiovisual media in St. Thomas.
Educational programs using mass com-
munications were utilized to a greater ex-
tent, involving 49 radio and 2 television
programs, plus 18 telecast films. A bio-
medical communications conference, the
first of its kind, was held in St. Thomas
under the auspices of the Bio-Medical
Communication Center, School of Medi-
cine, University of Puerto Rico. A
health fair is being planned for the early
months of the next fiscal year.

Bureau of Environmental
Sanitation

Efforts by the bureau under the Aedes
Aegypti eradication program are note-
worthy. St. John is now free of the
Aedes Aegypti, a major disease-carrying
mosquito. The index in St. Croix and
St. Thomas is down 0.8 and 1.5 percent,
respectively. The full impact of these
figures is apparent when it is recalled
that 2 years ago, at the initiation of the
federally assisted program, the percent-
age of Aedes Aegypti mosquitos in all
three islands was about 85 percent.
With the strengthening of the staff,
progress has been made in areas of sani-
tation. An agreement was formalized
with the Virgin Islands Planning Board
stipulating that plans submitted to the
planning board by builders and develop-
ers are to be checked for proper sewage
specifications by this bureau before ap-
proval is granted. Regulations setting
forth minimum requirements for sewage
disposal were drawn up, approved by the
Governor, and placed in effect. A sani-
tation engineer was appointed assistant
director and assigned to St. Croix.
An outside firm of consulting engineers
was contracted to investigate and formu-
late a comprehensive plan for sewage
treatment in St. Thomas and St. Croix.
The following tables show the types of
sewerage used in each of the three towns
of the Virgin Islands:





Charlotte Amalie

Quarter Number of Empty Pits Nightsoil Septic Sewer
properties lots tanks


King ----------------------------- 1,104 214 64 150 29 607
Queen ---------------------- 424 36 43 55 17 287
Kronprindsens--------------------- 1,223 87 67 374 32 652

Total ------------------ 2,751 337 174 579 78 1,546



Total properties with dwellings----- 2, 414 Percentage using public toilets or with
Percentage with pits-------------- 7. 2 no facilities---------------------- 2. 5
Percentage with nightsoil -------- 24.0 Percentage with pit or sewer and night-
Percentage with septic tanks-------- 3. 2 soil and sewer--------------- .9
Percentage connected to sewer------_ 64. 0


Christiansted

Street Number of Empty Pits Nightsoil Septic Sewer
properties lots tanks


North----------...------- --------.. 19 2 1 1 2 16
Strand-------------------- ------- 66 14 1 1 1 47
King .....--------------------_---. 53 6 0 3 0 46
Company -------------------------- 65 5 3 5 0 52
Queen-----.----....--------... ---61 4 3 10 0 45
Hill ------------------ -------- 91 10 4 19 1 57
East -------- ...-----------------. 90 25 7 17 1 43
Fisher.....------------------------. 52 18 1 10 2 21
New ---------------------- 25 8 0 11 0 6
Market ------------ ------------- 44 14 5 4 1 22
Prince ....----------------------.- 41 8 1 13 0 19
King Cross ------------------------ 45 5 3 7 3 29
Queen Cross.... _--- ------ ----_ 55 10 2 5 0 38
Little Hospital -----------.-------- 14 1 1 7 1 4
Church.-------. ---------------. 20 1 0 2 1 16
Hospital ------------------- 56 4 3 28 7 19
Green..... -------- --_ ---- 23 10 0 1 0 12
Garden..---.. --- ---- ------ 3 1 0 0 0 2
Lagoon ... --- ---------_ 2 1 0 0 0 1
Western suburb ------ -------- 27 2 4 2 0 21
West Lane -------- -------------- 17 8 0 5 0 5
Ulke Lane..---...-- -------..- 5 1 0 3 0 1
Water Gut..-----. ---- ------ 18 7 0 6 0 6
West --------- -------------- 10 2 0 4 1 3
Smith..... --- --------------- 9 5 0 0 0 4
Eastern suburb------------- 5 1 0 2 2 0
Old hospital ground-------- 9 0 1 0 1 7
Richmond -------- 3 0 0 0 2 2

Total --------------- 927 173 39 166 26 544


Total properties with dwellings--- -
Percentage with pits-----------
Percentage with nightsoil -----
Percentage with septic tanks ------
Percentage connected to sewer----.


754
5.2
22.0
3.5
72.2


Percentage with pits and sewer or
nightsoil and sewer----------
Percentage using public toilets or with
no facilities-------------------






Frederiksted


Street


Strand...-------------------------
King-......------------- ----------
Queen___ ----- ----
Prince-.------------------------
Hospital.-----------------------
New----------------------------
East-------------- ----------
King Cross --..-- ----------------
Market--------------------
HillU --------------------------
Lagoon ..-----------.---- ------

Total-------------------


Number of Empty
properties lots


45
93
78
83
56
35
14
1
3
2
1

411


5
6
11
17
4
5
3
0
0
0
1

52


Total properties with dwellings------ 359
Percentage with pits---------------- 13.1
Percentage with nightsoil----------- 2. 5
Percentage with septic tanks-------- 0
Percentage connected to sewer ---_-- 88. 0


Maternal Child Health and Crippled
Children Services

In conforming with the 1963 social se-
curity amendments, which were the basis
for appropriation of additional moneys
for these services, funds from this divi-
sion were used to implement an extensive
prenatal care program. With the steady
lowering of the childbearing age and the
realization that the prenatal period is
somewhat late for effective measures,
courses on health protection were begun
in the public schools among preadoles-
cents and young adolescents. Home
health services for maternity patients,
before and after delivery, were increased.
Though there was a 50-percent increase
in the number of clinics in St. Croix, the


Percentage with pit and sewer or night-
soil and sewer---------- --------- 3. 6
Percentage using public toilets or with
no facilities ------------- ---- 0



attendance is such that additional clinics
must be considered.
The Guthrie test was performed on
every newly born infant, screening for
the presence of phenylketonuria (pku).
New clinics were established in St.
Thomas and St. Croix in order to provide
child health supervision services. The
assignment of a pediatrician to St. John
has contributed to the improvement of
medical care for children on that is-
land. Measles immunization, using the
Schwartz attenuated strain, was given to
all preschoolers from the age of 12
months. Annual tuberculosis skin test-
ing was initiated for all children above
12 months, using the time test. The
school health bill, enacted into law by
the legislature, established the school
health program on a legal basis.


Nightsoil


1
3
0
0
4
1
0
0
0
0
0

9


2
11
8
7
11
5
2
0
1
0
0

47


Septic
tanks


0
0
0
0
0
0
0
0
0
0
0

0


Sewer


39
78
64
58
37
26
9
0
0
0
0

316





General Statistics of Hospitals in the Virgin Islands

Knud Charles Ingeborg
Hansen Harwood Nesbitt
Memorial Memorial Clinic
Hospital Hospital

Total number of admissions ----------------_----------------- 5,379 3,159 1,133

Adults and children .-- _-- ........... ...-----------------.. 4,230 2,512 970
Newborn....... _----.. ---_.--- ---- -- 1,149 647 163

Total number of discharges -------------- --------- ---------- 5,359 3,276 1,000

Adults and children ----_ _-- ----------------------- 4,210 2,599 855
Newborn ------------------ ------------------ 1,149 677 145

Total number of days of care to inpatients-. --------- ---------- 41,116 24,264 7,785

Adults and children ---------------_---- _----------------- 37,957 20,750 7,348
Newborn... --- ......-.---------------------------- 6,944 3,674 437

Total number of deaths ------------------------------------------135 85 58

Adults and children ------------------------- ----- -------- 101 75 55
Newborn--......._ ......------------------------34 10 3

Average percentage of occupancy:
Adults and children ------ ---.----------- ---------------- 84.80 80.07 74.56
Newborn-.--...-- ..----- .......-----------------.. 102.70 59.23 30.00

Total number of outpatient visits--------------------------------- 18,909 13,733 7,879
Total number of emergency room visits---------------------------- 18,918 14,419 6,010


Division of Veterinary Medicine

The efforts of this division, in cooper-
ation with the U.S. Department of Agri-
culture, culminated in freeing the islands
of porcine brucellosis, and scabies of
sheep and goats. During the fiscal year,
the Virgin Islands was declared a bovine
tuberculosis-free area, the only area in
the world with this distinction. Further
studies were conducted with anaplasmo-
sis and paraplasmosis of cattle, using
a limited amount of vaccine. The inci-
dence of both diseases has shown a


marked decrease during the past year.
The program of Pullorum testing of
chickens was carried out. A few posi-
tive cases were found and the chickens
destroyed. The Virgin Islands remained
free of rabies although a nearby island
has indicated an increase in the number
of reported cases during the past year.
This division is concerned with the large
population of mongoose as a source of
danger should rabies be introduced. It
is recommended that steps be taken to
thin down, if not eliminate, the mongoose
population.


DEPARTMENT OF SOCIAL WELFARE

(PERSONNEL: 254)-(OPERATING APPROPRIATION: $1,776,996)



General areas, both in upgrading existing pro-
grams and in initiating new programs
The department of social welfare made and services. In the division of family
considerable progress in a number of services, particular attention has been





directed toward planning and implemen-
tation of new Federal programs particu-
larly in the area of medical care. In
child welfare, special emphasis has been
placed on improving the quality of case-
work services through inservice training
and on increasing opportunities for grad-
uate training in social work. In the di-
vision of aging and special programs a
number of inservice training projects
have been conducted for institutional
personnel. The handling of the depart-
ment's fiscal responsibilities has been
considerably improved and expanded.
The department has stepped up its pro-
gram of employment of Virgin Islands
students during summer vacation as a
means of encouraging ia greater number
of young Virgin Islanders to undertake
careers in social work. In addition, the
department's scholarship program for
graduate training at recognized schools
of social work has continued to grow.
Two workers received their master's de-
gree in social work and returned to the
staff.
Special efforts have been continued by
the Governor, the legislature, and the de-
partment to present to Congress the need
to change the present matching formula
and ceiling limitation for Federal par-
ticipation in the Virgin Islands public
assistance program.
The department looks forward to the
completion of the new Queen Louise
Home for the Aged in St. Thomas during
the next year. Additional cottages at
the insular training schools on St. Croix
should be completed shortly and a new
day-care center on St. John is now un-
der construction.

Division of Family Services

On July 30, 1965, the President of the
United States signed into law the medi-
care bill. This social legislation opens
up new avenues for providing medical
care to the aged and other needy persons
under title XVIII (health insurance)
and title XIX (medical assistance).
This division focused much attention on
the planning and implementation of these
two Federal programs, in addition to
other important 1965 amendments.


The development of cooperative proj-
ects with the U.S. Social Security Office
has enabled both agencies to give rela-
tively prompt consideration to the new
provisions of the law and those changes
affecting persons served by both pro-
grams. Some of the projects and activ-
ities on which local social welfare and
U.S. social security offices worked jointly
were: Identifying persons 65 years, and
over, in order to assign social security
numbers; planning for cases and other
individuals affected by changes in social
security laws; enrollment of public as-
sistance clients and other individuals 65
years and over for hospital insurance and
supplementary medical insurance; and
interpretation to clients and public of
the new laws. Further assistance was
given to the social security staff in the
enrollment for hospital insurance project
through the collaboration of Peace Corps
volunteers, staff of the division of aging
and special programs, community and
civic groups. Over 900 individuals were
enrolled through the efforts of the divi-
sion and the above-mentioned groups.
For the implementation of title XIX,
close cooperation and joint planning
were established with the department
of health, the designated State agency
responsible for the administration of the
medical assistance program. The de-
partment of social welfare, through the
division of family services, will certify
individuals for medical indigency. Perti-
nent legislation was approved by the
Virgin Islands Legislature and close
cooperation has been given to the direc-
tors of health insurance and medical
assistance in the drafting of the prelimi-
nary medical assistance State plan.
The Federal Government approved the
renewal of title V project for $99,889
which reinforces emphasis on social
rehabilitation. By the end of the year,
74 persons had been placed in work
experience projects and now earn their
assistance grants through on-the-job ex-
perience and training. Retraining, learn-
ing regular work habits and new skills,
and acquiring elementary education
are some of the achievements of this
program.






Revision and simplification of admin-
istrative operational procedures and
agency forms received attention during
the year. A reciprocal agreement with
the courts in relation to aid to families


with dependent children cases of non-
support where there is a court order but
the support payments are irregular, or
not available, was established, thus
liberalizing a restrictive policy.


Caseload Distribution by Districts


Category


Old age assistance.....
Aid to dependent
children------------
Aid to the blind ------
Aid to the disabled ---
Medical assistance.. --

Total Federal ---
General assistance ---

Total______ ----


Caseload July 1,
1965


St.
Croix


269

189
5
26
251


Added during year


St. Thomas- St.
St. John Croix


175 30


St. Thomas-
St. John


28

45
1
1
18


Closed during year


St.
Croix


54

65
0
6
76


St. Thomas-
St. John


33

40
1
5
11

90
23

113


Caseload June 30,
1966

St. St. Thomas-
Croix St. John


245 170


671
103

774


524
83

607


Comparison of Caseloads and Expenditures


Category



Old age assistance--------
Aid to dependent children_ .
Aid to the blind------------
Aid to the disabled ------
General assistance ----------
Medical assistance--------

Total-..-____--


Caseload


1965


450
296
10
55
202
469

1,482


1966


423
317
10
47
189
402

1,388


Number of persons
aided


1965


450
1,039
10
55
202
469

2,225


_____________-- I- ---;----


1966


423
1,263
10
47
198
402

2,343


Comparison of Caseloads, 1962-66

Category 1962 1963 1964 1965 1966


Old age assistance -------------- 532 491 461 450 423
Aid to dependent children--- ----------- 1,043 1,032 1,156 1,039 1,263
Aid to the blind __---...-.... ----- ----. 16 15 15 10 10
Aid to the disabled ------- 96 92 90 55 47
Medical assistance -------------- 451 480 496 469 402

Total Federal ___--------------------- 2,138 2,110 2,218 2,023 2,145
General assistance_ -------------------------- 140 160 163 202 189

Grand total-------------------------- 2,278 2,270 2,381 2,225 2,334


249-079 0 67 5


Expenditures


1965


$211,010
254,464
6,695
35,771
77,550
27,300

612,790


1966


$213,187
285,153
4,471
23,645
90,267
30,242

646,965





In the Federal categories an average
of 806 cases received assistance during
the year, and 75 cases received assistance
in the local categories. Ninety-eight
cases received attention under medical
assistance to the aging. Eighty-five
money payment cases were opened and
85 closed during the year. Expenditures
totaled $650,174 for all categories.

Division of Child Welfare

The quality of child welfare services
has been improved through staff develop-
ment program which encouraged work-
ers to take college courses related to the
field of social work and which provided
special inservice training for caseworkers
with master's degrees in preparation for


promotion to supervisors during the year.
Plans have been developed for additional
casework units in each district to cover
increasing juvenile court caseload.
Child welfare served over 525 families
entailing services to children living in
their own homes, in foster homes, adop-
tive homes, detention and institutions,
assisting parents to better cope with
and understand the needs and problems
of their children. This program has
helped to prevent neglect and abuse, and
family breakdown.
Services were provided to 1,492 chil-
dren (St. Croix, 654; St. Thomas, 838)
as compared with 1,419 last year and
1,130 the previous year. Below is a table
showing the caseload distribution by dis-
trict office during the year.


Caseload Distribution by District Offices

St. Croix St. Thomas Total

Children receiving service July 1, 1965 -------------------------- 280 414 694
Accepted during year. -------------------------- 229 165 394
Discharged during year _____-_---------------- -90 -238 -328
Children receiving service June 30, 1966--------------------------- 419 341 760

Total number of children receiving services during the year___ 654 838 1,492


Foster Family Care

Eight additional foster homes were ap-
proved to provide child care for a monthly
average of 181 children (St. Croix, 115;
St. Thomas, 76).

Day Care Services

Licensing standards for day care cen-
ters and family day care homes in rea-
sonable accord with national standards
have been developed and approved. The
construction of a day care center in Cruz
Bay, St. John, to accommodate 30 chil-
dren began on June 27, 1966. Plans are
being completed for the construction of
another center in Coral Bay, St. John.
The department is subsidizing five day
care centers (St. Thomas, two; St. John,
one; St. Croix, two) and one family day
care home in St. Croix. Services were
provided for a total of 110 children (St.
Croix, 23; St. Thomas, 87).


The Governor issued executive order
No. 78-1965, establishing a day care ad-
visory committee composed of nine
members (St. Croix, four; St. Thomas,
four; St. John, one). The committee's
function is advisory, but members will as-
sist in interpreting day care services to
the community, mobilizing community in-
terest in meeting this need, stimulating
the development of new facilities and im-
proving standards. The first meeting of
the committee was held in June 1966.

Youth Care

Adequate facilities for the care of
older teenagers who cannot accept foster
home placement remain a major problem
on St. Croix where there exists no facility
for detention or residential care. In St.
Thomas the problem has lessened with
the opening of the youth care center,
which provided temporary detention and





residential care for 151 children for vary-
ing periods throughout the year.
An additional number of youth will
receive residential care with the open-
ing of the Institutional Cottage in St.
Croix in the coming fiscal year to house
26 boys, 16 to 21. A similar cottage for
26 girls is under construction.
The Citizens' Advisory Committee on
Children and Youth sponsored the joint
Puerto Rico-Virgin Islands Youth Com-
mission Conference. Held in March in
Puerto Rico, the conference proved to be
educational and beneficial to the group.
The mutual sharing of ideas and espe-
cially the planned field trips to the many
agencies and community facilities en-
couraged many new ideas for develop-
ment in our respective agencies.

Division of Aging and Special
Programs

Executive order No. 81-1965 changed
the name of "division of institutions and
special programs" to "division of aging
and special programs."
In its continuing efforts to improve all
areas of operation, expanded facilities
and services were made available to the
aged in their own homes and in the
shelter care homes. Improvement in the
quality and the variety of the dietary
program was seen as the result of the
employment of a full-time nutritionist.
Two volunteers from the Caribbean Fed-
eration of Mental Health assisted in the
development and demonstration of a so-
cial program plan for the homes for the
aged.
Construction of a new building to re-
locate the Queen Louise Home for the
Aged has begun. At the end of June,
119 aged persons were in residence at
the Herbert Grigg Home in St. Croix and
26 at the Queen Louise Home in St.
Thomas.

Special Programs

Cancer care.-As provided by contract,
Virgin Islands patients continue to re-
ceive services at the Puerto Rico Cancer


League (Dr. I. Gonzalez Martinez Onco-
logic Hospital). A television program
was used as a medium to bring informa-
tion to the public regarding this service.
At the end of the year there were 41 ac-
tive cases under treatment.
Burials.-Funeral homes located on St.
Thomas and St. Croix continue to provide
by contract burial services to indigents.
Fifty such services were provided during
fiscal year 1966.
Services to the mentally ill.-The di-
vision continues to act as liaison for Vir-
gin Islands patients in St. Elizabeth's
Hospital, Washington, D.C., and their
relatives in the Virgin Islands, as well as
extend casework services upon their re-
lease. This includes preconvalescent
studies, escort service on return home,
and aftercare services to aid readjust-
ment in the community.
Services to the blind.-Services were
extended to the home and talking books
and machines made available at various
institutions.
Surplus food distribution.-The divi-
sion continues to operate this program in
accordance with the agreement entered
into with the U.S. Department of Agri-
culture. The division was again highly
commended by the regional office of the
U.S. Department of Agriculture for its
operation during the year. Approval to
increase the surplus from 10 to 25 per-
cent over the public assistance budget in
computing the budget for nonpublic assis-
tance recipients of surplus commodities
was received. This increase will allow
more borderline families to be served.
Nonprofit summer camps and boy and girl
scout camps again participated in the
program. Approximately 890 boys and
girls attended these summer camps.
Distribution of commodities to 10 in-
stitutions and needy families were made
from 9 centers; 6 in St. Croix, 1 in St.
Thomas, and 2 in St. John. At the end
of the fiscal year the caseload was 1,101
families which represented 3,605 eligible
persons. The following chart shows the
amount of commodities distributed dur-
ing 1965-66.





Amount
distributed
Commodities : by pound
Beans, white pea------------ 400
Beans, kidney ------------ 21, 600
Beef, canned ---------------- 58, 027
Butter, creamery ----------- 54,931
Butter, peanut --------------- 27, 500
Cheese --------------------- 17,492
Flour ------------- 93,070
Lard ----------------------- 43, 656
Margarine--------------- 2, 382
Meal, corn--------------- 103, 750


Amount
distributed
by pound
Meat, chopped --------------- 8, 402
Milk, dry --------------146,353
Peas, split ------------------ 42,871
Raisins--------------------- 5,931
Rice ------------------ 156,476
Shortening ------------- 21,468
Wheat, rolled ------------- 62, 481

Total -------------- 866,790


DEPARTMENT OF COMMERCE

(PERSONNEL: 58)-(OPERATING APPROPRIATION: $1,385,884)


The economy of the Virgin Islands
continued to expand at unprecedented
rates during fiscal 1965-66 with the
department of commerce acting as the
major governmental source for the fos-
tering of economic development.
Tourist expenditures for the year rose
to approximately $591/ million, a rise of
$51/ million over the previous fiscal year.
Government revenues were up 12 percent.
Banking activity continued to maintain
ifs steady growth and external trade
again set new records with imports top-
ping the $100 million mark for the first
time.
New industry and business continue to
come to the Virgin Islands in ever-in-
creasing numbers, providing new employ-
ment opportunities and a welcome di-
versification of the economy.


Visitors Bureau

For the second consecutive year, more
than half a million visitors, including
personnel of the U.S. Armed Forces,
came to the Virgin Islands, providing
the largest single factor for the continued
economic well-being of the territory.
The following tables reflect the growth
of tourism in the past decade.

Total Tourist Expenditures
1956-57--------------- $13,170,000
1957-58-- ------------_ 16,070,000


Total Tourist Expenditures-Continued
1958-59 -------------- --- 21,738,000
1959-60------------- 24,780,000
1960-61--------------------- 25,817,000
1961-62-------------- 35,145,000
1962-63------------------ 41,070,000
1963-64 ---------------- 48, 158, 074
1964-65--------------------- 54,014, 852
1965-66--------------------- 59,456,245

Air Traffic


1956-57 -- ------
1957-58 ------------
1958-59 ------------
1959-60--------
1960-61 -------
1961-62 -------
1962-63------------
1963-64 ---------------
1964-65 --------------
1965-66----- -


76,200
85,800
107,400
124,400
146,100
187,712
215, 809
285,610
356,371
436,775


Cruise Ship Traffic

Number of Passengers
ships

1956-57 ------- 48 22,035
1957-58------- 74 35,420
1958-59------- 89 37,000
1959-60-------- 126 49,700
1960-61 ---- 157 57,000
1961-62-------- 131 57,799
1962-63 ------ 163 64,239
1963-64------- 261 1110,635
1964-65------- 238 2109,341
1965-66 --------------- 255 117,659


1 Included 31 ships to St. Croix.
2 Included 16 ships to St. Croix.
3 Included 28 ships to St. Croix.









































Christiansted Harbor, St. Croix.


During the fiscal year, the establish-
ment of direct jet service to St. Thomas
became a reality and, like service to St.
Croix, increased. This forward step in
air service plus an increasing number of
private and nonscheduled air carrier
stops in the Virgin Islands have heavily
taxed the facilities of both airports. Im-
provements to the airports both in run-
way and terminal facilities are sched-
uled to be completed early in the new
fiscal year.
The visitors bureau is supported in its
activities by offices in St. Croix and St.
Thomas, and information centers in New
York City and San Juan, P.R.
Requests for information and assist-
ance by visitors and prospective visitors
increased again during the fiscal year.
A total of 126,457 inquiries was received,
a gain of 7,767 over the previous year.
Mail inquiries were up from 53,651 to
60,024. Personal visits to the various
offices set another new record of 33,009.


Advertising Activities

Virgin Islands advertising concentrated
on newspaper and magazine circulation
and special newspaper travel sections.
Eight-page sections were run in Boston,
Dallas, and Miami, with exceptionally
high coupon returns. Four-color adver-
tisements continued in a number of the
Nation's leading magazines plus large
advertisements in leading newspapers in
the top market cities.
Special recognition was given to the
Puerto Rican market with an extensive
program in both Spanish and English,
and the Virgin Islands continued to be
the No. 1 travel trade advertiser during
the year.
In support of the "See The U.S.A." pro-
gram, a full-page color advertisement
was placed in the Saturday Evening Post
with excellent results.
Coupon returns from advertising were
up 57 percent from the previous year.


1_
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New and different travel literature and
four-color posters were prepared and
distributed to agents throughout the
mainland.

Fishing and Water Sports Promotion

This division completed its first full
year of operation during the fiscal year.
A strong promotional campaign, outlin-
ing the advantages of Virgin Islands fish-
ing and water sports was launched
through news releases, paid advertising,
hosting visiting editors and writers, the
distribution of brochures, letters and spe-
cialized literature, and personal contacts.
The publicizing of charter fishing activ-
ities and assistance of Virgin Islands
fishing tournaments and yacht clubs con-
tinued to increase and photographs of
large fish catches distributed to news-
papers throughout the United States.
A major inperson promotion was
staged for the annual convention of the
Underwater Society of America at Grand
Bahama Island.


Rum Shipments Increase

With over 95 percent of the rum
shipped to the United States coming from
the U.S. Virgin Islands and Puerto Rico,
the steady increase in shipments from
these two areas has shown a healthy
growth. Of the estimated 6-million-gal-
lon rum market, the Virgin Islands ex-
panded their 18-percent share in fiscal
year 1961 to 26 percent in fiscal year
1966.
The Virgin Islands has been the great-
est exporter of bulk rum to the United
States for many years. In 1966, there
was an increase of over 100 percent since
1961 of bottling and shipping of local
brands to the United States as well.
While the percentage gained in ship-
ments of Virgin Islands rums in fiscal
1966 did not show a marked increase over
1965, nevertheless, over the past 5 years,
the Virgin Islands shipments were up 113
percent. This increase is echoed by the
additional excise tax returns of $11,295,-
924 for fiscal 1966, more than 5 percent
over 1965.


Charlotte Amalie Harbor, St. Thomas.





Division of Trade and Industry
New records were attained in external
trade activity. Combined imports from
the U.S. mainland and foreign countries
were up 19 percent above figures for the
previous year. For the first time im-
ports topped the $100 million mark and
stood at $114 million by the end of the
calendar year 1965. Exports reflected
a 27-percent rise over figures for the pre-
vious year.
Air transportation to St. Thomas was
greatly accelerated with the inauguration
of direct jet flights from New York by
Pan American World Airways 727 jets
and the commencement of a project to
lengthen the present airstrip by 450 feet.
Ocean freight was boosted by the en-
trance of two new lines: Atlantic Lines,
which transports bulk from the U.S.
mainland to the Virgin Islands; and Sea
Train, a containerized carrier operated
from Puerto Rico.
A combined total of 649 inquiries was
received from domestic and foreign con-
cerns interested in expanding their op-
erations to the U.S. Virgin Islands.

Marine and Aviation Services
This division was operated during fis-
cal year 1965-66 under the direction of
an assistant commissioner of commerce
for marine and aviation. The services
consist of the office of the assistant com-
missioner, the harbor service, St. Thom-
as; the harbor service, St. Croix; and
the Alexander Hamilton Airport, St.
Croix.
Act No. 1742, approved June 15, 1966,
provides for the severance of all airport
activities from the present combination
of marine land aviation division.
St. Croix harbor service saw the chan-
nel leading to the Harvey installation
and the docking area completed in March,
and on May 1 the first bauxite vessel ar-
rived at the plant. The Hess Oil Co.
began its channel and docking area dredg-
ing during December. An area for the
docking of pleasure vessels was desig-
nated along King's Wharf in Christian-
sted.
In Frederiksted, 366 vessels ranging
from 20 gross tons to 26,000 gross tons


entered the port. The gross tonnage of
all vessels entering all the ports in St.
Croix was 1,708,813 tons. The gross in-
come from all marine activities including
wharfage and tonnage dues was $202,-
534.95. Tourist vessel arrivals at Fred-
eriksted numbered 28, carrying a total
of 9,738 passengers.
During the fiscal year, a survey of the
harbor of St. Thomas was made by the
U.S. Coast and Geodetic Survey. This
survey will establish the present sound-
ings in the harbor.
Cooperative rescue work with the U.S.
Coast Guard continued during the fiscal
year. Three boating accidents were re-
ported to the division of St. Thomas dur-
ing the year.
Ninety-five new motorboat registra-
tions were recorded in St. Thomas bring-
ing the total number of motorboat cer-
tificates on the island to 586.
Six hundred ninety-four vessels of over
100 tons registry entered the port of
Charlotte Amalie, St. Thomas, during the
fiscal year. The total gross tonnage of
commercial arrivals was 5,360,743. The
gross income from all marine activities,
excluding wharfage and tonnage dues,
was $53,718 on St. Thomas. Tourist ves-
sel arrivals in St. Thomas totaled 227, car-
rying a total of 106,913 passengers.
Eighty freighters brought 4,106 passen-
gers into the port.

Harbor and Airport Statistics
St. Croix (ports of Christiansted
and Frederiksted) :
Arrivals ---------------- 1,527
Gross registered tonnage 1, 708, 813
Gross income from pilot-
age, pier dues, tonnage
dues wharfage, and moor-
ing fees--------------- $202, 534. 95
Motorboat certificates----- 82
Government vessels visit-
ing -------------- 46
St. Thomas (port of Charlotte
Amalie) :
Arrivals --------------- 1,271
Gross registered tonnage--- 5, 360, 743
Revenues from pilotage
dues ------------------$53, 718. 00
Motorboat certificates----- 95
Government vessels visit-
ing------------ 135
St. Croix (Alexander Hamilton
Airport) :
Landings -------------- 9,953
Total Airport Revenue -- $127, 526.85

67





DEPARTMENT OF AGRICULTURE


PERSONNELD:


As provided by Acts Nos. 1343, 1471,
and 1498, sixth legislature of the Virgin
Islands, the department of agriculture
and labor was separated into two depart-
ments on October 1, 1965, and a new com-
missioner of labor was appointed. This
separation permitted the department of
agriculture to concentrate its activities
on improving the agricultural and recrea-
tional resources of the islands. On April
1, 1966, by Act No. 1598, the bureau of
recreation and sports promotion was of-
ficially transferred from the department
of education to the department of agri-
culture. This addition represents a siz-
able increase in administrative allocation.

Agriculture
The food production program ex-
panded its service to farmers who had
been phased out of sugarcane and wished
to become established in other agricul-
tural enterprises. Six farmers cooper-
ated in this program. The personnel and
equipment of this department were active
in each phase of the farmers' needs,
ranging from preparation of land to mar-
keting of produce. Lack of facilities for
preparation of crops for marketing ham-
pered this program. In spite of this, net
return per-acre average was over $250.
Plans for guidelines to assist future en-
terprises of St. Croix farmers were ini-
tiated during two meetings in which the
Assistant Secretary of Agriculture and
other officials of the U.S. Department of
Agriculture were present with local
officials.
The division provided land-preparation
equipment to 90 farmers. This is an im-
portant function and is made available
to farmers on a comparatively low-cost
basis. The experiment stations of this
department continue to serve the farmers
and communities with planting material,
insecticides, fertilizer, and technical
advice.
The bloodlines from the swine improve-
ment program are now on many farms.


)-(OPERATING APPROPRIATION: $186,343)


This program offers young stock at low
cost from crosses of the Landrace, Tam-
worth, and Duroc breeds.

Abattoirs

Public abattoirs served the butchers,
and helped insure a sanitary supply of
meats to communities. In St. Croix,
1,429 heads of cattle, 1,286 swine, 563
sheep, and 228 goats were slaughtered,
dressed, and chilled. A total of 809 ani-
mals were slaughtered at the St. Thomas
abattoir.

Soil Conservation Service

Act No. 1475 passed during this fiscal
year, created the board of supervisors of
the Virgin Islands Soil & Water Conser-
vation District. This board serves as
the governing body and performs the
functions conferred upon the district.
Twelve farm dams were constructed by
the dam building program. These dams
aggregated a total of 12,444,897 gallons.

Park and Beaches

Regular maintenance and development
continue at all public parks. The new
development at Sandy Point, St. Croix,
will be dedicated in October and will pro-
vide a complete facility for St. Croix
residents. Approval of and bidding on
plans for new bandstands for Charlotte
Amalie and St. Croix are in process.

Beautification

An expanded program for propagation
of ornamental plants is in progress in St.
Thomas and St. Croix. Activities de-
signed to produce 100,000 plants have
been initiated. Highway beautification
in St. Croix took a positive step when
this department set the pattern by land-
scaping several miles of the western en-
trance to the Alexander Hamilton Air-
port. Civic groups have planned for the
continuation of this project.






Bureau of Recreation

This bureau is responsible for plan-
ning, administering, and operating a di-
versified program of recreation for the
general welfare of the communities. In
cooperation with the bureau of sports
promotion, championship teams of the
bureau of recreation leagues and tourna-
ments were given an opportunity to rep-
resent the geographical area in intra-
island championship or invitational tour-
nament championship. The bureau of
recreation and sports promotion was
transferred from the department of edu-
cation to the department of agriculture.
This transfer has enabled unified func-
tioning of the division of recreation and
park administration. This development
indicates greater recognition of improved
facilities, programs, personnel, financial
needs, and coordination.

Outdoor Recreation

An allocation of $117,000 was made to
the Virgin Islands by 'the Secretary of the
Interior to cover outdoor recreation ac-
tivities in the Virgin Islands. IBefore any
projects can become realities, it is neces-
sary that a comprehensive state plan be
submitted to the Secretary of the In-
terior. With assistance from the Fed-
eral Government, a plan has been devel-
oped and is being finalized. Upon com-
pletion of this development plan, and its
approval by the Governor, it will be sub-


mitted to the Secretary of the Interior
for final approval. Immediately there-
after, work will commence on this
program.

Bureau of Sports Promotion

During the fiscal year the bureau di-
rected, sponsored, and coordinated a num-
ber of activities which included baseball
in three categories, volleyball, basketball,
track and field, and other minor sports.
Many were regular championship events.
Others were exhibitions and still others
were annual tournaments involving in-
ternational participants.

Wildlife Resources Survey of the
Virgin Islands

The workload during the past year has
been chiefly concerned with coordinating
the life-history data gathered on the
mongoose, a primary predator on wildlife
in 'the islands. Emphasis will be placed
on a control program using poisons and
chemosterilants. Aid from the Denver
Federal Center, Denver, Colo., has been
obtained and initial work with special
baits has begun.
Experiments with various poisons will
be tried shortly, using techniques from
recent predator control work performed
in the Hawaiian Islands. The new field
of chemosterilant control of wild animals
will also receive experimental attention.


DEPARTMENT OF LABOR

(PERSONNEL: 46)-(OPERATING APPROPRIATION: $209,596)


A separate and independent depart-
ment of labor was established on October
1, 1965. Prior to this time the functions
of agriculture and labor were vested in
a single department.
The principal function of the depart-
ment of labor is to effectuate the govern-
ment's labor policy of promoting the
welfare and employment opportunities of


workers as expressed in legislative direc-
tives. In performing this function the
department administers and enforces the
laws pertaining to wages, hours, work-
men's compensation, child labor, protec-
tion of resident workers, apprenticeship
and manpower training, discrimination
in employment, and labor relations.





Division of Labor

The division of labor in administering
the local Fair Labor Standards Act
carried out continuous payroll inspec-
tions. Five hundred seventy-two payroll
inspections were conducted in over 400
companies in the Virgin Islands. After
review, $8,326 was collected in back
wages. In addition to moneys collected
as a result of payroll inspections, a total
of $12,206 was collected in back wages
based upon complaints filed by individual
employees.
The division's placement services
placed 64 applicants with companies
representing all industries throughout
the Virgin Islands.
The division of labor is charged with
the responsibility of determining the
need for alien labor in cases where
individual employers apply for permis-
sion to retain employees in this category.
During the fiscal year 9,939 such alien
certifications were issued.

Labor-Management Relations

There were 5 labor disputes which
resulted in work stoppages involving a
total of 550 employees. Four of these
cases were on St. Croix. Two work
stoppages, one on St. Croix and the
other on St. Thomas, involved the same
engineering firm and were the most
serious. The department was successful
in mediating these disputes.
Further in the labor relations phase
of the department's activities, the depart-
ment issued 12 certifications to the Virgin
Islands labor union as bargaining repre-
sentative of employees.

Division of Apprenticeship and
Training

A total of 55 apprentices, 34 on St.
Croix, and 21 on St. Thomas, were regis-
tered and agreements were signed with
25 employers throughout the Virgin
Islands. Fourteen Virgin Islanders,
seven from St. Thomas, six from St.
Croix, and one from St. John, were en-
rolled in technical schools in Rio Piedras
and Mayaguez, P.R., under the Federal


Manpower Development and Training
Act of 1962, as amended, in cooperation
with the Virgin Islands Employment Se-
curity Agency and the vocational division
of the department of education.
This training program was made possi-
ble through the cooperation of the Divi-
sion of Vocational and Technical Educa-
tion, Commonwealth of Puerto Rico.

Division of Veterans Affairs

Services offered by the office of veter-
ans affairs increased as new Federal leg-
islation extended and expanded veterans'
benefits. Contacts made by the division
totaled 4,196. Through its stepped-up
public information service, the division,
through the government's office of public
relations and information, distributed 26
press releases. Applications by veterans
for medical, compensation, life insurance,
and other services totaled 819. Plans
have been completed for the erection of
a Virgin Islands war memorial in St.
Thomas. With a legislative appropria-
tion of $5,000, work on this facility is ex-
pected to begin following the final negoti-
ations leading to the transfer of a pro-
jected site.

Workmen's Compensation

During the year 1,792 cases were proc-
essed, including 403 carried over from the
previous year. In processing and com-
pleting these cases, 2,214 separate pay-
ments of disability benefits, including
medical costs, were made totaling $274.-
182.

Virgin Islands Wage Board

Pursuant to Act No. 1537, sixth legis-
lature of the Virgin Islands, approved
December 1, 1965, a wage board was ap-
pointed to establish minimum recruit-
ment wages. This board conducted pub-
lic hearings, met in executive sessions
during the months of February, March.
and April, 1966, and on April 12, 1966.
promulgated wage order No. 1 which es-
tablished minimum recruitment wages
applicable primarily in cases of recruited
alien workers.





Virgin Islands Commission on the
Status of Women

Act No. 1639, sixth legislature of the
Virgin Islands, approved March 28, 1966,
created the Virgin Islands Commission
on the Status of Women. The Director
of the Women's Bureau, U.S. Depart-
ment of Labor, attended the ceremonies
in St. Thomas associated with the legisla-
tion being signed into law.
Composed of 11 members, serving un-
der executive appointments, the com-
mission will be responsible for, but not
limited to, factfinding investigations and
reports on the status of women in the
Virgin Islands in the areas of health, edu-
cation, housing, civil rights, need for pro-
tective legislation, earnings, employment,
family relations, working conditions, po-
litical and legal status.
The commission met on June 17, 1966,
and later that same month was repre-
sented at the 1966 National Conference
of Commissions on the Status of Women
in Washington, D.C.

Recruitment Program
Under Act No. 1402, effective March
30, 1965, the department of labor estab-
lished a recruitment program designed
to encourage Virgin Islanders residing
on the mainland and other qualified ap-
plicants to avail themselves of job open-
ings within the insular labor market.
The program is designed to assure a
continuing flow of contact and informa-
tion between the department of labor and
individuals, groups, schools, colleges, and


other institutions on the mainland upon
which the Virgin Islands may draw for
qualified persons to fill local positions.
During the year the recruitment di-
vision distributed literature and made
personal contact with Virgin Islanders
now residing in New York City, both in-
dividually and through groups and or-
ganizations.
In addition to providing employment
information, the recruitment division has
provided information to applicants on all
aspects of living conditions in the
islands-cost of living, education, health
facilities, housing and recreational fa-
cilities-all questions that come to mind
on the part of persons desirous of locat-
ing in the islands. These services are
available to all, including persons who
plan to return to the islands in cases
where no prior employment is secured.
For the widest possible coverage, the
department utilizes office space in New
York City manned by a part-time worker
who maintains a personal and close con-
tact with Virgin Islanders residing in
that city.
Since its inception the division has re-
cruited and placed four families from the
New York City area in the Virgin
Islands. In all four cases, both hus-
bands and wives were afforded employ-
ment in the islands and the families as-
sisted in finding suitable housing. The
recruitment program is being expanded
and plans have been formulated to move
the New York offices into larger quarters
and to give the program wider exposure
through the advertising media.


VIRGIN ISLANDS EMPLOYMENT SECURITY AGENCY

(PERSONNEL: 55)-(OPERATING APPROPRIATION: $379,020)


Employment Service
The agency, in keeping with well-
defined policies of the Bureau of Employ-
ment Security, U.S. Department of Labor,
continued its emphasis on a total man-
power service. Fresh impetus was given


to training, and special recruitment activ-
ity was tried on an experimental basis
during the second half of the fiscal year.
A new dimension was added to the train-
ing of youth through the assignment to
the Virgin Islands of a quota of 50 youth





for training in Job Corps camps in the
United States.
New applications for employment,
totaling 5,975, were received. Counsel-
ing interviews were conducted for 1,132
applicants and a total of 1,121 tests of
various kinds were administered. Place-
ments totaled 1,567, involving 941 non-
agricultural establishments. The pres-
sure to secure employees for a continuing
and expanding business economy kept the
level of certifications for foreign workers
at, or slightly above, the level for the
last fiscal year. The British and French
West Indies were the source of most of
these workers. It is estimated that over
9,000 aliens were working under tempo-
rary certification during the year. Some
success in recruiting Puerto Rican work-
ers was attained through a special re-
cruitment program. Lack of adequate
housing is the major impediment in re-
cruitment.
In addition to the basic programs
which have been and continue to be the
prime responsibility of the Virgin Islands
Employment Service, the agency actively
participated, or provided supportive serv-
ice, to the following: Manpower develop-
ment training, neighborhood youth corps,
on-the-job training, apprenticeship train-
ing, Volunteers in Service to America,
and army graduate specialist program.

Farm Placement Service

The phasing out of the sugar industry
has drastically altered certification of
alien agricultural workers. From a total
of 1,551 agricultural workers certified in
fiscal year 1965, the agency certified less
than 100 aliens for general farming
activity.

Unemployment Insurance Service

Despite unprecedented prosperity of
the Virgin Islands, the unemployment
insurance service showed increases in
both collections from employers and pay-
ments to claimants. In addition to col-
lection and payment of benefits, the serv-
ice continued to prepare itself for more
effective service to the unemployed


worker. After 2 years of benefit pay-
ment activity under title XV, the last
claimants from the Virgin Islands Cor-
poration received checks in April of 1966.
The unemployment insurance service
promptly paid benefits to the former
VICORP workers all through their phase-
out and reemployment stages. The
heaviest claim load occurred in the latter
part of 1965, when many former VICORP
workers, who had found temporary em-
ployment elsewhere, were terminated and
found they had to return to claimant
status under title XV.
During the fiscal year the first "off-
shore" trainees under the Manpower
Development and Training Act went to
Puerto Rico for training not available in
the Virgin Islands. The trainees are de-
pendent upon financial assistance for sus-
tenance and receive weekly allowances
from the monetary payment unit
(MTPU), which processes all properly
prepared claims within a 48-hour period.
There is every indication that offisland
training for selected individuals under
MDTA will increase. The MTPU will
continue to process claims promptly so
that the basic financial necessities of
trainees will be met.
In many instances workers brought in
to build the Harvey industrial complex,
contractually or subcontractually, re-
turned to the areas from where they were
hired upon completion of work. This re-
sulted in the heaviest interstate claim
load experienced by the service. When-
ever possible, efforts are made to place
the workers on other jobs in the Virgin
Islands. However, some workers had
skills which were in "one time" demand.
The service, in its unaffiliated state,
continued to assist workers from con-
tinental United States who wish to file
claims against states in which they had
claims as "Liable State" from any
State willing to act as agent State.
Workers from six States filed their claims
from the Virgin Islands and had them re-
jected. Explanation given by the Lia-
ble State is that the territory of the
Virgin Islands is not a part of the Fed-
eral-State system. Four States, includ-





ing Alaska, accepted claims on a courtesy
basis from the Virgin Islands. An at-
tempt was made by the agency to have
necessary local enabling legislation for
Federal-State affiliation passed. How-
ever, this was not passed by the legisla-
ture. With the help of the national office,
revised studies are being made which
should lead to an experience rating sys-
tem and should give impetus to another
attempt at legislative action to enable
the Virgin Islands to become part of the
Federal-State system.
The first pattern of benefit exhaustion
appeared during the fiscal year. The
rate of 2 percent is well below the na-
tional average of 21 percent. Only a few
claimants were able to exhaust their max-
imum benefits amount because of early
placement by the employment service or
through their own efforts.
In order to meet the accepted stand-
ards of unemployment insurance account-
ing, a central accounting unit has been
established within the unemployment in-
surance service. When this unit is in
full operation, the local offices will be re-
lieved of all accounting functions, leaving
them free to process claims and do col-
lection work exclusively.
The current maximum weekly benefit
rate under the Virgin Islands employ-
ment insurance law is $25. This is not
50 percent of the current average weekly
wage in covered employment in the is-
lands. The national standard set for
weekly benefit amount is half the work-
er's average weekly salary. Studies are
now being made to ascertain the feasi-
bility of raising the weekly maximum
benefit amount to a figure which will
closely equate the national average.
The U.S. Congress passed an unem-
ployment insurance bill which extended
coverage to new categories of workers.
The features of the bill are already part
of Virgin Islands unemployment law. In
keeping with provisions of the bill, the
Agency is planning to implement inten-
sive training programs, enabling service
personnel to increase their activities and
efficiency so that service will be more in
line with current national trends.


No fixed patterns emerged among un-
employed during the fiscal year. Ac-
counting, in part, for unemployment were
temporary shortage of construction ma-
terial, fire in a St. Croix supermarket,
closing of Bethlehem sugar factory, and
seasonal shutdown of some hotels. Eight
hundred seventy-two unemployment in-
surance claims were filed. Among them,
259 were from manufacturing fields, 222
from construction, 164 from labor and
service trades, 75 administrative and
clerical, 70 from the sales field, and 82
from agricultural and farming, profes-
sional, and other.
Employers' contributions were over
$200,000 more than the previous fiscal
year. Delinquency did not decline ap-
preciably although vigorous action, field-
work, followup, and court action are in
effect. An audit by the comptroller's of-
fice revealed the existence of six non-
reporting employers, a matter which was
immediately rectified.

Employer Contribution Section Activities
Employers filing registration re-
ports ------------------- 1,568
Employers filing wage contribution
reports ------------------- 1,087
Delinquent reports outstanding-__- 519
Contributions received through June
30, 1966__------------------- $825, 684
Interest collected to June 30, 1966- $6, 432

Under all unemployment insurance
programs, $115,552 was paid out in bene-
fit payments. Eight hundred seventy-
two initial claims were filed, of which
407 were by females. Benefit payments
were made as follows:
Virgin Islands unemployment insur-
ance benefits payments---------- $90, 121
Federal unemployment insurance
benefit payments
Civilian-UCFE ------------ 15, 846
Servicemen-UCX --------- 9, 585

Total ------------------ 115, 552

Fiscal Summary

The Virgin Islands Employment Serv-
ice budget for fiscal 1966, including the





manpower development training pro-
gram, amounted to $220,160, allotted as
follows:
Personal services -------------- $163, 524
Nonpersonal services---------- 56, 636


The Virgin Islands Unemployment In-
surance Service budget for fiscal 1965
amounted to $158,860, allotted as follows:
Personal services---------------- $111, 363
Nonpersonal services------------- 47, 497


DEPARTMENT OF PUBLIC WORKS

(PERSONNEL: 538)-(OPERATING APPROPRIATION : $4,753,556; SPECIAL PROJECTS:
801,437; MATCHING FUNDS : $2,598,000)


The activities of the department of pub-
lic works increased again during fiscal
year 1966, due to the demands of the
growing community of the Virgin Islands
for provision of the basic services of gar-
bage land trash removal, construction and
maintenance of water land sewer systems,
street and road construction, and mainte-
nance and the construction and repair
of government buildings. A total of
$4,998,000 was obligated for these func-
tions as compared with $3,839,000 in the
previous fiscal year.
A total of $2,598,000 was expended by
the department on 52 capital improve-
ment projects under the matching funds
program.

Street Cleaning and Garbage Removal
Service

An increase in population and area
covered resulted in a 15-percent increase
in the amount of garbage and trash re-
moved. The dumpster system was insti-
tuted on St. Croix and additional dump-
ster containers were provided on St.
Thomas. Activation of an incinerator
on St. John has all but removed the ob-
jectionable burning of trash and garbage
near Cruz Bay. Disposal of junked ve-
hicles continued with the removal of 297
vehicles during the year.

Water Supply

The supplying of fresh water to the
community continued as a major func-


tion of the department. Extension of
the water distribution mains was made
in St. Thomas and St. Croix, resulting in
an increased consumption. In St.
Thomas this increase was from 600,000
gallons to 800,000 gallons a day.
In St. Croix, two additional wells were
connected to the Frederiksted system
and four more were dug at Adventure.
These were added to the system serving
the area of Grove Place. The Adventure
wells and the Fair Plain wells will be
connected to a central water system link-
ing Frederiksted, Christiansted and the
midisland communities and including the
new central high school, public housing,
and the proposed new health center.
Water distillation plants on St.
Thomas produced 150,700,000 for the first
time providing the majority of fresh
water needed. An additional 124,300,000
gallons were obtained by barge from
Puerto Rico.
The salt water distribution systems of
St. Thomas and St. Croix were extended
into newly developed areas and a new
pumping station was added to the Ohris-
tiansted system. These systems are
necessary, not only for fire protection,
but also for the conservation of fresh
water.

Road and Street Improvement

Work continued on upgrading roads
and streets by resurfacing with concrete
and asphalt paving. On St. Croix, Cen-
terline Road was widened and resur-





faced and the La Vallee Road was recon-
structed. An additional mile of the Cen-
terline Road on St. John was recon-
structed and paved. On St. Thomas,
major concrete resurfacing included the
Hospital Ground roads, Mandahl to Oasi
Hill road, and the Wintberg-Rosendahl
road.


Engineering and Design

Engineering and design functions of
the department continued to increase.
A total of 1,306 building permits was
processed and design and inspection serv-
ices were performed on practically all
government-owned construction projects.


DEPARTMENT OF FINANCE

(PERSONNEL: 175)-(OPERATING APPROPRIATION: $1,557,400)


Another Record High Set for Receipts
and Expenditures

Receipts and expenditures for fiscal
year 1965-66 established new highs as
the treasury of the Virgin Islands col-
lected $45,920,571, an increase of 12.5
percent over the previous year. The con-
tinued growth follows a trend of more
than 10 years of steadily increasing rev-
enues. Collections were deposited and
accounted for as follows:

Distribution of revenue Fiscal year Percent
1965-66 of total


General fund ---------- $27,060,977 58.93
Matching fund and essential
projects fund-------- 10,549,641 22.97
Special and other funds ---- 8,309,953 18.10

Total---------------- 45,920,571 100.00


By revenue sources, the collections
presented this picture:


Sources of revenue


Taxes. __-----------
Government operating in-
come-----------
Other revenues ----

Total --------


Fiscal year
1965-66


$26,769,893

827,052
18,323,626

45,920,571


Tax collections


The tax items were as fol-
lows:
Real property taxes -..
Income taxes.. -------
Inheritance taxes -------
Stamp taxes---.......
Corporation franchise
taxes-------------
Gasoline taxes--....._-
Gross receipts taxes- --
Trade and excise taxes -
Production taxes _---
Taxes held in escrow ..-

Total___ _____


Fiscal year Percent
1965-66 of total


$959,440
17,462, 234
89,870
323,020

36,111
582,387
3,273,196
2,008,376
135,300
1,899,959

26,769,893


2.09
38.03
.20
.70

.08
1.27
7.13
4.37
.29
4.14

58.30


Taxes held in escrow are those collec-
tions less the amounts transferred to the
general fund, from tax-exempt enter-
prises operating under the tax exemp-
tion laws of the Virgin Islands. Most of
the collections are eventually paid back
to these enterprises as subsidies.
Government operating income ($827,-
052) consisted mostly of charges and fees
collected for water supply charges, sew-
erage service charges, hospital service
charges, harbor dues and services, court
costs, fees and charges, etc.






The "other revenues" category con-
tained these significant items:
Licenses, fees and permits ----- $833, 472
U.S. Customs dues------------ 2, 100, 000
Federal contributions including
Internal Revenue returns--- 13, 470, 878
Unemployment compensation con-
tributions ---------------- 34, 154
Others----------------- 1, 085, 122

Total ------------------18, 323, 626

Expenditures during the fiscal year
kept pace with increased revenues. Ex-
cluding inter- and intra-fund contribu-
tions, and considering only those funds
representing standard government opera-
tions, expenditures were as follows:

General fund ------------$25, 867, 883
Matching fund---------_ 4, 900, 417
Essential projects fund----- 228, 583
Special and other funds----_ 9, 733, 644

Total ------------ 40, 730, 527


Broken down by department, expendi-
tures were:
Legislature, election board, and
municipal courts of the Virgin
Islands -- ----------- $788, 598
Health --------------------- 6,447, 322
Education ---- ---------- 7,260, 881
Social welfare------------ 2,141, 723
Public safety------- ------ 1, 521, 550
Public works --- ----------9, 144, 283
Agriculture and labor --------_ 1, 042, 119
Housing and urban renewal --- 1, 079, 402
Commerce ---- ----------- 1,657, 335
Executive and administrative de-
partments and agencies------- 9, 647, 254

Total ---------------- 40, 730, 527

Included in the last item above are
$1,408,462 paid in subsidies and $739,565
paid in income tax refunds.
Further details on the financial infor-
mation furnished in this report are
shown in the following financial state-
ments :


Government of the Virgin Islands, All Funds-Statement of Standard Government
Operating Revenues, July 1, 1965, to June 30, 1966


Source of revenues




Taxes:
Real property taxes --------_--
Income taxes .-----------_---.------
Inheritance taxes -------.__. ------------
Stamp taxes --_..-_....--------.__--__
Corporation franchise taxes ----------------.
Gasoline taxes .-------------------- ----__..
Gross receipts taxes -.___---------. --_-.____.
Trade and excise taxes_-----------
Production taxes .-------- ______--. _____.__
Taxes held in escrow .. -----------_ --_

Total taxes- ...__. .________.

Government operating income:
Sewerage service charges -----------
Water supply charges ----------____
Hospital service charges--------___
Miscellaneous service charges----------
Sales of property and equipment other than
homestead-- ......- -----__ _-__. __ __ _
Court costs, fees, and charges.-_________
Harbor dues and services---------------___

Total government operating income ------


Total-
July 1,
1965, to
June 30,
1966




$959,440
17, 462, 234
89,870
323,020
36,111
582,387
3, 273, 196
2,008,376
135, 300
1,899,959

26, 769,893


32,708
239,611
315, 622
121,872

15,210
15, 504
86,525

827,052


General
fund-
July 1,
1965, to
June 30,
1966




$959, 440
17,462, 234
89, 870
323,020
36,111

3, 273,196
2,007,948
135, 300


24, 287,119 --......---- --- ---....


32,708
239,611
-- -- -- -
121,872

2,849
15,504


412, 544
412, 544


Matching
fund-
July 1,
1965, to
June 30,
1966


Essential
projects
fund-
July 1,
1965, to
June 30,
1966


Special
and other
funds-
July 1,
1965, to
June 30,
1966


$582,387

428

1,899,959

2, 482, 774


315, 622


S 12,361

--.------ 86,525

S 414, 508






Government of the Virgin Islands, All Funds-Statement of Standard Government
Operating Revenues, July 1, 1965, to June 30, 1966-Continued

General Matching Essential Special
Total- fund- fund- projects and other
July 1, July 1, July 1, fund- funds-
Source of revenues 1965, to 1965, to 1965, to July 1, July 1,
June 30, June 30, June 30, 1965, to 1965, to
1966 1966 1966 June 30, June 30,
1966 1966


Other revenues:
Licenses, fees, and permits_ -_---------_ $833,472 $768,510------------------- $64,962
Fines, forfeits, and penalties ----- 77, 603 21,129 ----------------- 56,474
Collections from U.S. customs_ ----------- 2,100,000 973, 793-------------- 1, 126,207
Rents and concessions-______-- ----- 82,148 18,700 ------- ---------- 63,448
Federal contributions including revenue
returns_ ---- ------------- 13,470,878 ___-------$10,405,984 ---------- 3,064,894
Private contributions ------------- --- 5,937 200 ------------ ---------- 5,737
Contributions from other funds ------------- 110 110 ------------ ------------ ------------
Unemployment compensation contributions- 834,154 ..---------------------- ------------ 834,154
Refunds, overdeposits, and revenues not
otherwise classified ------ 580,437 1535,050 5,857 -- 39,530
Real property, assets lost or damaged __---- 20, 622 7,433 ---------- ------ 13,189
Departmental services ----- -------- 1,800 1,794 ---- 6
Miscellaneous receipts -- ------- ---- 6,168 4,168---- 2,000
Interest on bank balances -_ --- 310, 297 30, 427 121, 369 $16, 431 142,070

Total other revenues ----- --------- 18,323,626 2,361,314 10,533,210 16,431 5,412,671

Total operating revenues----- 45,920,571 27,060,977 10,533,210 16, 431 8,309,953

Includes $498,079 interest earned in the matching fund and essential projects fund in prior years which was
transferred to general fund.

Government of the Virgin Islands, All Funds-Statement of Standard Government
Operating Expenditures, July 1, 1965, to June 30, 1966

General Matching Essential Special
Type of expenditure Total fund fund projects and other
fund funds


Legislative:
Virgin Islands Legislature:
Operating..----..-----------------------
Capital improvements.-----.-----------
Other _------.--....------- ---------



Electoral boards:
St. Thomas.----.-...--------------------
St. Croix .-------------------------
St. John...-----...----------------------



Office of the supervisor of elections ..-------

Total legislative --------------------------

Judicial:
Municipal courts:
St. Thomas and St. John-----------__ -
St. Croix __----------_--------------
Virgin Islands ___..----------- ---------


Total judicial-...__


$438,073
13,319
20,734


$428,680
20, 734
20,734


$13,319 ----------


472,126 449, 414 13,319


$9,393


9,-393
9, 393


12,604 12,604 ---------------------------------
12,804 12,531 ..---------- ------------ 273
4,822 4,822 .-.------- --------- ------------

30,230 29,957 ------------------- 273


32,910

535,266


145
36
253,151


31,985

511,356


145
36
250,359


13,319


------- -253,332 250,540 ------


925

10,591


2, 792

2,792
2,792


249-079 0 67 6






Government of the Virgin Islands, All Funds-Statement of Standard Government
Operating Expenditures, July 1, 1965, to June 30, 1966-Continued

Essential Special
Type of expenditure Total General Matching projects and oer
fund fund projects and
fund funds


Executive and other:
Executive offices and functions:
Office of the Governor:
Operating -----------
Capital improvements ------------
Governor's contingencies .....----
Operation of news bureau ---......
Other -------------------
Office of the director of the budget...
Office of the director of personnel:
Operating.--------------_----
Retirement administration...... --
Other --......- ----- -----
Office of the parole and probation officer
Virgin Islands Planning Board:
Operating ----- ------------
Other..__-----------------
Office of the administrative assistant-
St. Croix---.-----------------
Office of the administrativeas sistant-
St. John --------------------
Office of the advisor consultant to the
Governor ----- --------
VISTA program_ --_---------
Public utilities commission ..._----

Total executive offices and functions.__

Office of the government secretary.. ...------

Department of law..-.-.....................

Department of finance:
Operating----------------------
Interest payment on bonds and notes_ _-
Tax exemption subsidies ..---
Sugarcane subsidies ----------------
Molasses subsidies .--------- ------
Contribution to Virgin Islands Water
and Power Authority --------
Grant to Virgin Islands College ..-----
Other---- ___--------------_

Total -- _______-- ------------

Department of property and procurement:
Operating--------- ----------- --
Capital improvements --------_____
Equipment for various departments ...-
Advertising for various departments _---
Other __ ___---------------

Total ------------------

Department of health:
Operating ----------------------
Capital improvements ---------
Public health services--------------
Neighborhood youth corps-out of school
project---------------------------
Claims, grants, and contributions. -----

Total --------.._. ----------------


$252, 361
13,207
41,330
27,968
11,756
80, 617

96,916
24,789
326,341
48,916

102,623
12, 096

100,757

59,738

126,929
18,473
138


$234, 676
13,207
41,330
26,440
11,756
78, 467

94, 774
24,789
231,000
48,149

100,408


98, 230

58,950


126,929
18,473
------------.


$17, 685
-.-----------
------------
1,528
------------
2,150

2,142
----.--------
95,341
767

2,215
12, 096


2,527

788


- ..... ----...........138
... ... ... ... ... ... ... 1-3-8


1,344,955 1,207,578 ------------... -------- 137,377

284, 871 278, 069 --------------------- 6,802

222,335 216,824 ...-------- --------- 5,511


1,479,179 1,453,897 -------- 25, 282
196,888 ------- $99,006 --- 97,882
1,408,462---------------------- 1,408,462
12,972 __------------ ------------ 12,972
14,325 ----------------------------- 14,325

1,125,000 ---------- 1,125,000------------
866, 133 866, 133 -_- ---------------------
1,027,789 1,016,547 --- ----------- 11,242

6,130, 748 3,336,577 1,224,006 ------ 1,570,165


530,327 519,976 ----------------------- 10,351
94,157 5,244 ----- 88,913
356,282 356,282 --
49,105 49,105 ------------------------ -
18,149 18, 149 --_------------- --------

1,048,020 948, 756 --------- 99, 264


4, 521, 371
616, 786
974,927

280,909
53,329


4, 422,889
5,075
- - - - -


53, 329 ------


6,447,322 4,481, 293


303,600
- - - - -


303, 600


98,482
308,111
974,927


280,909


1, 662, 429







Government of the Virgin Islands, All Funds-Statement of Standard Government

Operating Expenditures, July 1, 1965, to June 30, 1966-Continued


General Matching Essential Special
Type of expenditure Total fund fund projects and other
fund funds


Executive and other-Continued
Department of education:
Operating------- ---------------
Capital improvements. ----------
Neighborhood youth Corps-in school
program._____ -------------
Vocational rehabilitation __-- -------
Elementary and secondary education ..-
Manpower development and training --
School lunch program ------
Vocational education_ -----
National defense education- ---
Libraries and museums ------
Special Federal grants to education ----
Adult basic education program -------
Headstart program, Project H.S. 5198-_
Grants and contributions ----------


Total_ ---------------.- -


Department of social welfare:
Operating----------------------------
Sewing project-St. John -----
Public assistance program -----
Corneiro Home_ ---------
Aldershville Home------
Child welfare program ----
Cancer program---------- --
Medical pool program ----------
Day care facilities --------------
Work experience program_ ----
Landscaping-Herbert Grigg Home for
the Aged_--- --- ---------


Total ._____ .....------- -----------


Department of public safety:
Operating ..- ...-------.. -------------
Other .......---------------------------


Total-...-------------- -----------


Department of public works:
Operating -----------------------------
Capital improvements__- --------
Contribution to Virgin Islands Water
and Power Authority------_------
Other --..---------------------------


Total.----.--------------------------


Department of housing and urban renewal:
Operating_ .--------------------------
Capital improvements --------------
Grants and contributions_------------


Total.. -------------------------------


$4, 457, 595 $4, 387, 793 -- ----------
1, 377,932 _-- ------ $63,979 --


25,484
92,563
45,810
66, 365
163,403
362,017
219,984
20,805
14,625
19,489
66,099
328,710


7,260,881



1,202,608
9,882
608,616
14,427
4,061
168,967
29,097
29,893
28,489
44,498


1,185


328,710


4,716, 503



1, 176, 793
9,882
--------- --
-----------





-----------



------------
.. .--- ----











---------- --


------------


-----------
- - - - -
- - - - -


-----------
-----------
----------
- - - - -
------------
- - - - - -
--------- -
------------
----------
---------- --
-----------
- - - -


63, 979


$69,802
1,313,953


25,484
92,563
45,810
66, 365
163,403
362,017
219,984
20,805
14, 625
19, 489
66,099



2,480,399



25,815
-----------
608, 616
14,427
4,061
168,967
29,097
29,893
28,489
44,498


1,185 .......--------------- -----


2,141,723 1,187,860 ----------


1 A70 10K


1,518,654
2,896


1,521,550 1,482,091


4,414,303
4,605,720


69,607
54,653


9,144,283



291,247
752,715
35, 500


1,079,462


2,896 --------


4,298,893 ----------- ----
477,908 2,560,342 $109,476


53,709


69,607 .---------- -------
944 ....------- ------


----------- 953,863


39,459



39,459



115,410
1,457,994


4,830,510 2,630,893 109,476 1,573,404


263,549
44,574
35,500


343,623


506,743



506,743
-- - - -


506, 743


------------
71,240



71,240


27,698
130,158



157,856


------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------


- - - - -


------------


------------
------------
------------
------------
------------
------------
------------
------------


,






Government of the Virgin Islands, All Funds-Statement of Standard Government
Operating Expenditures, July 1, 1965, to June 30, 1966-Continued


Type of expenditure


Executive and other-Continued
Department of commerce:
Operating -------------------------------
Capital improvements__ ------------
Marine and aviation services -----------
Other-...----------------- --------------

Total.-------------- -----------------

Department of agriculture and labor:
Operating----.........-----------------.
Capital improvements -----------------
Wildlife resources survey ----------
Emergency drought relief -------
Grants and contributions_ -------

Total ......----....------------ ---

Department of labor:
Operating --------......-------------...--
Other _----.__ ----

Total._ --- ------------

Department of agriculture:
Operating-----------------------
Capital improvements_ ------------
Grants and contributions__--.. -----

Total_______----------------_-

Virgin Islands Board of Public Accountancy.

Virgin Islands Airport and Industrial Re-
sources Agency-
Capital improvements. ----------

Virgin Islands Employment Agency:
Operating.--------------------------
Unemployment compensation-local- ---
Unemployment compensation-Federal_

Total__ --------------------

Total executive and other_ -._.-----...


Grand total-----


Total


-~~ ~ I- -I- - I ----


$1,127,850
26,920
454,727
47,838

1,657,335


249,408
138,195
3,160
1,500
15, 000

407, 263



155, 600
10


155,610


426,839
35,293
17,114

479,246


General
fund


$1,091,711
------------

44,042

1,135,753



247,635
61,538
------------


Matching
fund


$26,920




26,920


Essential
projects
fund


--- $43,426
-- - --- --------------


15, 000 ..----.... --..---.

324,173 ----------- 43,426


151,977 ---- -----... .......
10 ........----....------------


151,987 ---...........--


418, 495 ............
28,781 6,512
17,114 ........

464, 390 6,512


192 -........ ..........


128,886 ----- 124,445 4, 441 ...........


228,760
231,456
27, 031


Special
and other
funds


0
-----------
-- -- - -


228,760
231,456
27,031


487,247 ----------- ------------ 487,247

39,941,929 25,105,987 4,887,098 228, 583 9,720, 261


----- 40,730,527


25,867,883


4,900,417


228,583


9,733,644


In addition to the financial statements,
the following two statistical tables con-
tain comparative information for a 5-


year period on revenues and expenses
applicable to the general, matching, and
essential projects funds:


$36,139

454,727
3,796

494,662



1,773
33,231
3,160
1, 500
------------

39,664



3, 623
------------

3, 623


8,344
-------.-----
-------.-----

8,344

192


S............
------------
------------

------------

------------


--------- ----------- -----------












Government of the Virgin Islands-General Fund, Matching Fund, and Essential Projects Fund; Comparative Statement of Expenses,1
Fiscal Years 1962-66


Fiscal year Percent Fiscal year Percent Fiscal year Percent Fiscal year Percent Fiscal year Percent
1966 of total 1965 of total 1964 of total 1963 of total 1962 of total
expenses expenses expenses expenses expenses


Standard governmental expenses:
Legislative ----------------------------
Judicial (municipal courts) ------------

Executive:
Administrative departments and agen-
cies ..------------------------------ --
Service departments:
Public works department -----
Health department___-----
Education department ----------
Social welfare department -----
Public safety department _-----
Commerce department --------
Agriculture and labor depart-
ment ----------------------.
Housing and community re-
newal department---------

Total executive_------------

Other governmental expenses -----------

Total standard governmental ex-
penses-------------------------


$532,462.30
253, 384. 17


$442, 258.80
166, 060. 69


$313, 044.46
98,950.78


$237,499.01
68,199.96


$236,967.44
72,656.44


3,697,227.61 10.60 2,992,519. 68 10.80 2, 611,783.47 10.99 2,352,495.96 12.07 1,812,480.40 11.56

4,946,462.39 14.17 4,048, 500.77 14. 60 3,218, 084. 59 13.54 2, 643, 277.76 13.57 2,361, 639. 59 15.06
4,863,128.02 13.93 3,792,776.91 13. 68 3,361,753.97 14.15 2,714,225.13 13.93 2, 634,032.27 16.79
4,859,376.00 13.92 4,009,996. 41 14.46 3,802,668.02 16.01 2,993,486. 25 15.37 2, 413,884. 61 15.39
1,299,487.85 3.72 1,112,598.02 4. 01 1,226,253.09 5.16 986, 816.12 5. 07 837,884.45 5.34
1,586,541.72 4. 55 1, 271, 491.05 4.59 1,078,080.17 4.54 849,915.89 4.36 788, 665.09 5.03
1,235,920.19 3. 54 834, 325. 56 3. 01 730,113.81 3. 07 623,834.08 3.20 576, 265.31 3. 67

974,375.25 2.79 665, 440.50 2. 40 359, 990. 22 1.52 321,335.29 1. 65 256,136.41 1.63

295,186.27 .85 249,442.89 .90 180,378.70 .76 81,040.64 .42 -----

23,757, 705.30 68. 07 18,977,091.79 68.45 16,569,106. 04 69.74 13,566,427.12 69.64 11, 680,988.13 74.47

6,375,926. 63 18.27 4,188,356.96 15.11 2,486,820.63 10.47 1,875,235.14 9. 62 548,852.58 3.50


30,919,478. 40 88.59 23,773,768. 24 85.75 19,467,921.91 81.94 15,747,361.23 80.83 12,539,464.59 79.94


See footnote at end of table.













Government of the Virgin Islands-General Fund, Matching Fund, and Essential Projects Fund; Comparative Statement of Expenses,1
Fiscal Years 1962-66-Continued


Public projects-general fund, matching
fund, and essential projects fund:
Public works department...._-----------
Health department.--------------------
Education department ----------
Social welfare department.._ ------- ---_
Housing and community renewal de-
partment_-----------------------------
Agriculture and labor department ..-...
Property and procurement department-
Commerce department......------------
Legislature --------------------------
Office of the Governor....--------------
Virgin Islands Airport and Industrial
Resources Agency -------------------_

Total public projects-general fund,
matching fund, and essential
projects fund-------------------

Total expenses...-----------------


Fiscal year
1966


Percent
of total
expenses


Fiscal year
1965


S /I.I I I~


$2, 566, 658.70
334, 000.00
74, 060.02


572,515.03
67, 799. 12
13,000.00

13,492.88
25, 000. 00

318,029. 73


7.35
.96
.21


1.64
.19
.04

.04
.07


.91 __


$3,025,797.86

98, 540.42


665, 196.88
110, 240.45
30,000. 00
20, 405. 00
- - - - -


Percent
of total
expenses


10.91
----------
.36


2.40
.40
.11
.07


Fiscal year
1964


$3,533,578.00
110,350.00
10,938. 65


508,336. 18
127,728.33


Percent
of total
expenses


14.87
.46
.05


2.14
.54


Fiscal year
1963


$3,024,714.73

37, 553. 28
8,756.86

587,484.84
75, 091.78


Percent Fiscal year
of total 1962
expenses


3,984,555.48 11.41 3,950,180. 61 14. 25 4,290,931. 16 18. 06 3,733, 601.49 19. 17 3,146,973.83 20.06


34,904,033.88


100. 00


27,723,948.85


100. 00


23,758,853. 07


100.00


19,480,962.72 100.00


I Expenses include expenditures plus outstanding encumbrances against current years' appropriations. The report has been expanded to include the essential projects fund.


Percent
of total
expenses




19.87
.02
.04


.13


15.53

.19
.04

3.02
.39


$3,116,545. 34
2,819.00
6,457,73
604. 63

20, 547. 13
- - - - -


15, 686, 438.42


100.00











Government of the Virgin Islands-General Fund, Matching Fund, and Essential Projects Fund; Comparative Statement of Revenues
Sand Receipts, Fiscal Years 1962-66

Source of revenues and receipts Fiscal year Percent Fiscal year Percent Fiscal year Percent Fiscal year Percent Fiscal year Percent
1966 of total 1965 of total 1964 of total 1963 of total 1962 of total


General fund:
Real property taxes ------- --------- $959,440.21 3.55 $835,759.08 4.07 $760,042.86 4.44 $590,079.89 4.91 $499,413.87 4.50
Income taxes.. ------- 17,462,233.64 64.53 13,206,870.65 64.27 10,707,372.83 62.58 7, 511, 216. 09 62. 46 7,221, 085.92 65.05
Inheritance taxes ---------------------- 89, 869.52 .33 24,785.91 .12 59,309. 12 .35 18,897.78 .16 37, 529.94 .34
Stamp taxes --------------- 323,020.13 1.19 307,946.21 1.50 195,115.84 1.14 144,334.51 1.20 135,719.28 1.22
Trade, excise, and gross receipts taxes -- 5,281, 143.86 19.52 4,211,310.15 20.49 3,388,502.08 19.80 1,927, 652. 61 16.03 1, 655,595. 56 14.92
Custom dues .---- ---------- 973,793.42 3.60 658,895.22 3.21 780,004.65 4.65 648,770.80 5.40 747,085.00 6.73
Licenses, fees, and permits --....- --- 768, 509.55 2.84 692, 260.61 3.37 618,130.59 3. 61 486,377.38 4.04 433,987.80 3.91
Corporation franchise taxes_------- 36,111.38 .13 40,527.08 .20 36, 675.03 .21 35,799.65 .30 20,237.56 .18
Fines, forfeits, and penalties ------------ 21,129.18 .08 26,023.97 .13 41,282.37 .24 78, 898.75 .66 39, 450.43 .36
Revenues from use of money and prop-
erty_ _____---------- 49,127.46 .18 31,810.44 .15 12.503.81 .07 24,079.79 .20 23,767.82 .21
Other income.. -- --_ _------ 1, 096, 598. 07 4.05 512, 571.23 2.49 512,298.63 3.00 558,485.64 4.64 286,060.37 2.58

Total general fund 2_- -_ 27, 060,976. 43 100.00 20,548,760.55 100.00 17,111,237.81 100.00 12,024,592.89 100.00 11, 099,933.55 100.00

Matching fund and essential projects fund:
Internal revenue matching contributions. 10,405,984.38 98. 64 8, 313, 412. 70 98.87 7, 042,107.28 91.12 7, 682,528.59 96.25 6,173, 477.87 96.59
Transfers and reimbursements.---------. 5,856.80 .05 12, 224.13 .14 507, 405.08 6.57 160, 074.83 2. 01 128,796.80 2.01
Miscellaneous insurance compensation_ -- _ -----_ ------ ___ .___-__ 71,100. 00 .92
Interest on government funds..----- ..- 137,799.95 1.31 82,967.92 .99 107,327.30 1.39 138,875.83 1.74 89,234.90 1.40

Total matching and essential projects
funds _____----- ---------- 10,549, 641.13 100.00 8,408, 604.75 100.00 7,727,939.66 100.00 7,981,479.25 100.00 6,391,509.57 100.00

Grand total ------------- --- 37, 610, 617.56 28,957,365.30 - -- 24,839,177.47 ...._----- 20,006,072.14 ........- 17, 491, 443.12


1 The report has been expanded this year to include receipts into the essential
projects fund.
2 The amount $498,078.70 representing interest earned in the matching fund and
essential projects fund prior to and including the first 3 quarters of fiscal year 1966,


was transferred to the general fund in fiscal year 1966 as other income.
The amount of $3,500,000 was also transferred to the general fund from the matching
fund for the expenses of the department of education, but is not reflected in the total
collected for the general fund.





These statistical tables differ from the
financial statements referred to in the
preceding paragraph because the infor-
mation they contain is for five fiscal
periods instead of a single fiscal period
and does not include figures for the spe-
cial and other funds. In addition to this,
the figures shown in the comparative
statement of expenses for the general,
matching, and essential projects funds
represent disbursements plus encum-
brances (expenses incurred) applicable
only to each respective fiscal year re-
ported on and do not include payments
made in those years to liquidate expendi-
tures incurred in previous fiscal years.
For this reason, then, the figures shown in
the comparative statement of expenses
for fiscal year 1966 for the general,
matching, and essential projects funds do
not agree with total expenditures shown
in the statement of governmental operat-
ing expenditures for these same funds.
In order to avoid any confusing of the
apparently similar information contained
in these two statements, it should be
kept in mind that the information shown
in the comparative statement of expenses
relates to expenditures made against ap-
propriations made for each respective
year only, while the figures shown in
the statement of expenditures represent
total net disbursement paid regardless of
the year in which they were authorized.

Control, Supervision, and
Enforcement

The need for alert and efficient fiscal
management becomes increasingly im-
portant as government services continue
to expand under increased budgetary
and departmental activity. Problems of
control and supervision are intensified.
Business activity and construction re-
quire increased enforcement of govern-
ment regulations pertaining to reporting
of income, payment of taxes, insurance,
and workmen's compensation.
The department has made every effort
to provide the necessary controls. In the
accounting division, a program was insti-
tuted to upgrade its preaudit and control
functions for effective control over the


appropriation and fund accounts of the
various departments and agencies of the
government and to provide adequate con-
trol of transactions processed and reports
prepared by the data processing division.
An auditor has been assigned to the
preaudit section to develop internal op-
erating procedures and to assume respon-
sibility for examination of all payments
made under contract for construction
and professional services.
Staff limitations and employee turn-
over continue to hamper the depart-
ment's efforts. Some progress was made
in seeking better qualified personnel and
in urging department employees to par-
ticipate in a training program developed
by the College of the Virgin Islands to
improve job proficiency.
The treasury division successfully im-
plemented its centralized accounts re-
ceivable system during the fiscal year and
plans were drawn for the review, revision,
updating, and strengthening of revenue
collection regulations and procedures.
Efficiency of the audit division was
greatly enhanced through an additional
appropriation enabling a move to larger
quarters and an increase in staff. In
addition, auditors were assigned to the
larger departments of the government in
order to give concentrated attention to
the problems of those departments.
Their placement has proved to be work-
able and beneficial.
A systematic and vigorous followup
program to determine extent of com-
pliance with recommendations of the
government comptroller was instituted.
In the payroll division, a system was
inaugurated of graduated income tax
deductions and provision made for the
payment of rental due to the Virgin
Islands Housing Authority and to the re-
activated credit union through the pay-
roll deduction system.

Tax Administration

Federal Internal Revenue auditors ex-
amined the operations of the tax division
at the request of the Governor. They
found continued progress and improve-
ments in the recordkeeping and quality





of work performed by employees of the
division. Their cooperative auditing
work in conjunction with tax division
employees resulted in the collection of
additional revenues and taxes assessed.
Three members of the division received
training by the U.S. Internal Revenue
Service. Local revenue agents trained
with experienced Internal Revenue
agents and supervisors in the Virgin
Islands, providing valuable on-the-job
training.

Data Processing

The data processing division continues
to increase its workload. Input in-
creased greatly, particularly with the
assumption of special jobs for other
governmental agencies. These included
preparation of automobile registration
forms for the department of public safety
and an old age assistance study for the
department of social welfare.

Government Insurance Program

During the fiscal year, a manual of
classifications and basic rates was issued,
establishing new classifications and cor-
responding premium rates.


Income, from premiums increased 40
percent for the year, primarily due to a
change in the workmen's compensation
law increasing the maximum weekly sal-
ary or wage on which insurance pre-
miums are based from $50 to $100. In-
creasing industrial activity, particularly
on St. Croix, also accounted for a part of
the increase.
Claim payments increased 64 percent
during the same period, caused some-
what by the raising of disability pay-
ments from $35 to $45 a week.
Through the maintenance of a solvent
insurance fund, employees are assured of
adequate benefits and employers of full
insurance protection. As growth and
expansion of business and industrial ac-
tivity continue, payments and income are
expected to increase proportionately.

Special Employee Study Program

In cooperation with the College of the
Virgin Islands, a program of study in
accountancy and fiscal management has
been established. This program, if fol-
lowed diligently, could lead to the earn-
ing of an associate degree. Twenty-nine
persons from the department registered
for courses during the last spring
quarter.


OFFICE OF THE DIRECTOR OF THE BUDGET

(PERSONNEL: 11)-(OPERATING APPROPRIATION: $88,388)


The Governor's budget document for
the fiscal year 1967 submitted to the
legislature in January 1966 recom-
mended a total of $35,614,531 for operat-
ing appropriations, as compared with
nearly $39 million requested by the
various departments and agencies. When
passed by the legislature in March 1966,
the operating budget total was $33,553,-
179, of which the Governor disapproved
items totaling $132,000 and approved
$33,421,179. This budget was later in-
creased by $2,529,839 by act of the legis-
lature and approved in June 1966 by the


Governor. The new total of the 1967
fiscal year operating budget is
$35,951,018.
With continued projects and carried
over projects for which the appropria-
tions are available until expended and
other special appropriations, the total
budgetary commitment now stands at
$38,847,392.
The capital budget recommended by
the Governor and passed by the legisla-
ture from matching funds totaled $11,-
925,000 with a contribution of $6 million





toward the operating budget. Of this
$6 million, $5 million is a contribution to
the operating budget of the department of
education, and the other $1 million is a


contribution to the Virgin Islands Water
and Power Authority for power facilities.
Totals of major revenue increases be-
tween 1962 and 1966 are as follows:


1962 1966 Increase
(percent)


Total revenues _---------------------------------. $11,176,825 $27,202,181 143.38
Income taxes -------------------- --- ------------- 7, 312, 558 17, 524, 475 139.65
Real property taxes -- -------------- -------------------- 498,416 960,855 92.78
Trade and excise taxes --------------- ----------------- 929,847 2,013,176 116.51
Gross receipts taxes ----------------- ------------------- 721,571 3,285,845 355.37
Customs dues (gross) -------- -------------------- --- 747,085 973,793 30.35


Totals of major operating appropriations for the same period are:

1962 1966 Increase
(percent)


Education -------.----- -------..-.---.---------------------- $2,417,583 $5,185,589 114.49
Public works -----------------------------.--------.......... 2,208,659 4,753,567 115.22
Health....--- ------------------------------------------.. ..... 2,596,953 4,564,694 75.77
Welfare ---- ------------------------------------------ 905, 344 1, 776, 996 96.28
Safety ---------------------------------------------- 791,503 1,441,695 82.15
Commerce--------------------------------------------------... 535,512 1,245,538 132.59

Total budgets.- ------------ ---------------------- 13,033,767 30,789,633 136.23


The following is a summary of appro- Estimated excess of ap-
priations from the general fund for fiscal propriations over reve-
year 1 : nue estimates -------- 1,614,629.43
year 1966:
Operating and special ap-
Budget for Fiscal Year 1966, Government propriations ------ 30, 789, 632.96
of the Virgin Islands, Report for the Reappropriation of cer-
erio J 1 t ne tain projects--------- 423, 509. 47
Period July 1965 to June 1966 Appropriations available
Revenues: until expended------- 1,703,668.00
Surplus cash June 30b
1965 (estimates)----- $600, 000. 00 Total ------- 32, 916, 810.43
Internal revenue match-
ing fund contributions- 3, 500, 000. 00 Total allotments made to
June 30, 1966------- 30, 405, 908.32
Estimated revenues--- 27, 202, 181. 00 June 30, 1966- 304590832
Total appropriations un-
allotted as of June 30,
Grand total revenues-- 31, 302, 181. 00 1966 -------------- 2 510, 902.11

Appropriations -------- 32, 916, 810. 43 Grand total appropri-
ations ---------32, 916, 810.43

Operating and Special Appropriations


Act No.


1396/1521/1608/1740 -
1582 ----
1710..--
1441/1550/1697/1740
1492/1521-----
1579 -----
1492/1550_ ---


Departments or agencies


The legislature----------------------
Virgin Islands government manual --------
Virgin Islands home rule ----------
Office of the Governor_ -------
Antipoverty program----------------..-..-
VISTA program ------- ------ -------
For agricultural research and agricultural
development on St. Croix.


Appropriated


$446,000.00
5,000. 00
10,000.00
254,800.00
31,556. 00
43, 655. 00
65,000.00


Allotted


$446, 000.00
5,000.00
10, 00.00
254,800.00
31,506.00
43, 655.00
15,000.00


Unallotted






$50.00

50,000.00






Operating and Special Appropriations-Continued


Act No. Departments or agencies Appropriated Allotted Unallotted


1492/1550----------
1455 ---------
1550-----------

1550/1609/T.---.....

1441/1697/1740/T.. -
1441/1492/1521/1550__

1441/1492/1521/1550/
1720/T.
1441/1550/1720/T
1441/1726/T.
1335/1336/1337/1338/
1348/1390/1434/
1441/1347/1492/
1432/1433/1436/
1514/1611/1650/
1651/1423/1652/
1667/1677/1678/
1682/1685/1687/
1688/1466/1690/
1692/1726/1750/
1791.
1441/1492/1730-..
1441/1492/1521--.....
1441/1492/1521/1550-.
1441/1492/1521/1550/
1521/1550.

1441/1492/1550...-..


1441/1492/1521/1550/
T/1730/1740.
1479. ---------

1441/1479/1492/1521/
1550/1709/1721.

1441 ------
1441-----------
1441/1740.- ------
1441..----------
1441 ----------
1441-----------
1441/1521.--------
1441 ---.--.---
1441/1550 ........--
1441--------
1441/1492 ------........
1441/1550 --------.......
1441/1550 ..........-
1441/1521/1550-.......
1479 --------
1492.--. -
1492 ----
1492 ---------
1659 --

1701___-
1740 -----


Office of the Governor-Continued
Summer employment _----------------
Compensation to Magdalene Lynch---.....
For agricultural subsidy in accordance with
Act No. 1049.
Salary increases to lower grade employees
(cost of living).
Governor's contingent fund----------------
Operation of public relation and information
office.
Office of the director of the budget------------

Office of the director of personnel.---------_----
Retirement administration -----------......
Grants and contributions-------------------












Office of the probation officer.-----------------..
Office of the Virgin Islands Planning Board- ...-
Administrative assistant for St. Croix office--...
Administrative assistant for St. John office------
Travel for St. John students to College of the
Virgin Islands.
Public utilities commission expenses (trans-
ferred to the department of public works by
Act No. 1550).
Office of the government secretary--------------

Replacement volumes of Virgin Islands
Code.
Department of education.. ------... ............

Grants and contributions:
Boy Scouts ----------------------------
Sea Scouts------------------------------
Girl Scouts.---------- ------------------
St. Croix museums------------------------
Virgin Islands museums -----.............
Community bands-......------........
W. Blyden scholarship fund-------------
St. John scholarship fund.---------------
Training program- --------------------
Teachers training, Virgin Islands College--
St. Croix festival committee------------
Library extension-- ------------------
N.Y.U. extension-------------------
Territorial scholarship ---------------
Grant for Peace Corps _-----------------
Grant to Virgin Island carnival--------
Scholarship grant. ----------------
Grant to Eileen Petersen--------__----
Caribbean Students Organization (San
German).
Grant to CAHS and CHS_ ____------
Teachers award fund --------------------


$175, 000. 00
1,708.00
15,000. 00

425,000. 00

62, 000.00
163,700.00

86, 656. 00

99, 384.00
25,799.00
384,790.00












54, 737. 00
127,910.00
113,312. 00
63,253.00
15, 000. 00





304,887 00

21, 000.00

5,185, 589.43


18,000. 00
800.00
7,500.00
3, 200.00
2,400.00
12,000.00
4,000.00
7,200.00
5, 500.00
4,800.00
6,000.00
23,000.00
152,500.00
88,500.00
25,000.00
5,000.00
18,000.00
3,000.00
500.00

20,000.00
1,000.00


$75, 729. 00
1,708. 00
8,000.00

255,745.90

62, 000. 00
162,090. 00

86, 656. 00

98, 554.00
25, 418.00
331,380. 00












54, 737. 00
126,740.00
108,093.00
62,534.00
15,000.00


$99, 271. 00

7,000.00

169, 254. 10


1, 610. 00




830.00
381.00
53, 410.00













1,170.00
5, 219.00
719.00
- - - -


304,887.00 -------


21, 000. 00

5, 185,589.43


18,000. 00
800.00
7,500.00
3,200.00
2,400.00
12,000.00
4,000. 00
7,200. 00
5,500.00
4,800.00
6,000.00
23,000.00
152,500.00
88,500. 00
25,000.00
5,000.00
18,000.00
3,000.00
500.00


20,000.00 --------
1,000.00 ----------


- - - - - -
-----------
-----------
- - - - -
- - - - -
- - - -
- - - -
- - - -
- - - -
- - - - -
- - - - - -
------------
- - - -
-----------
- - - -


- - - -






Operating and Special Appropriations-Continued


Act No.


1740 --
1441/1492/1521/1550-_
1627/1720/1721- __
1479 ------
1479-------

1403-
1472_ ----

1488_ --------
1496 ....--
1500------------
1550----------
1550__ ------
1550/1740 .......
1569 ---------

1740 -------
1441/1492/1521/1550/
1627/1710.
1492_ ---
1472 -----

1472 ---

1550 -------
1550.---------
1550 --------
1550 ----------
1441/1492/1521/1550/
1709/1720/1721/T.
1441--- -
1441----
1441/T ..........--
1441_---
1441/T. ----

1441---------
1474/1507/1541/1614/
1664.
1441--------
1424/1634 .-------
1492/1550/1740-_ __
1318-----------
1464 __------

1521------.. ....
1531....--------
1441/1492/1521/1550/
1710/1721/1740/
1441/1521/1701/
1441/1492/1521/1550/
T/1705/1721.
1418 ..---......-

1429. ---------
1479..-------
1431/1476/1740- __..
1521-------
1441/1492_.-----
1479 ----------


Departments or agencies


Department of Education-Continued
Grants and Contributions-Continued
Contribution toward compact education__
Department of public works:
St. Thomas and St. John activities.. ..------
Completion of tax annex building ...-----
Sewer Lines, Estate Thomas and Agnes
Fancy.
Headquarters for Girl Scouts......--------
Demolition and street improvements in
barracks yard area.
Conservation of water resources.---------
Claim of Neptune Richards-----------
Claim of Louis Donastorg-----------
Renovation of Fort Christian --.-----
Repairs to Mafolie Road_--------------
Construction of day care center .....-----
Claim of Morris Cornelius and Esmond
Gumbs.
Additions to finance department....------
St. Croix activities ------------------------------


All expenses for beautification program-.....
Demolition, site clearance, and street im-
provement water gut area.
Demolition, site clearance, and paving La-
goon Street area.
Lighting Christiansted waterfront area--....
Cleaning of Creque Dam.-- -----------
Fire station at Grove Place.-- -----------
Cleanup campaign_--.------- -----------
Department of finance.--------- ----------

Income tax and other refunds......--------
Refund of Internal Revenue stamp tax--....
Industrial incentive program ---------------
Unliquidated encumbrances-................
Bonding of government employees and
officials.
Claim fund ......------- --... --------------
Payment of claims------------------------

Unemployment compensation-------------.
College of the Virgin Islands-----.........
Operation of former Federal properties--....
Special temporary sugarcane fund--------
Interest due to loan (A. Hamilton Airport
fund).
Expenses to repair water damage. ---------
Refund to Bluebeard Housing Corp_...-..--
Department of property and procurement--....-
Promotion and advertising expenses.........
Equipment expenses ---..................


Purchase of Estate St. Quaco and Zimmer-
man in St. John.
Purchase of Estate Hope in St. Croix .....--
Completion of building at 75 -------------
Bureau of transportation-------------------
Completion of motor pool--------------
Department of agriculture and labor ---_ ----...
Improvement and equipment of Abattoir,
St. Thomas.


Appropriated


Allotted


I Appropriated_________


$3,000.00

3,159,747.00
5,000.00
15,000.00

60,000.00
50,000.00

20,000.00
75.00
1,998.00
3,000.00
35,000.00
30,000. 00
631.00

5,000.00
1,593,819.67

10,000.00
75,000.00

50,000.00

5,000.00
6,000. 00
10, 000. 00
10,000.00
1,557,400.00

175, 000.00
500.00
37, 00. 00
15, 000. 00
9, 000. 00

5,000.00
102,814.70

62,580.54
866,133. 00
75,000.00
37, 419.46
8,443.71

14, 000.00
2,317.50
530, 741.33
95, 615. 00
900,378.00


$3,000.00

3,159,747.00
5,000.00
15,000.00

-------------
20,000.00

--..-----------
75.00
1,998.00
3,000.00
---- ----------
30,000.00
631.00


Unallotted


$60,000.00
30,000.00

20,000.00




35,000.00


5,000.00 .-------
590,090.00 3,729.67


10,000.00
25,200.00

17,400.00

5, 000.00
--..----------
5,000.00
10, 000.00
1, 557,400.00

175,000. 00
450.00
33, 000. 00
15, 000.00
9, 000.00

4,500.00
102,814.70

62, 580.54
866,133.00
75,000.00
36, 000.00
8,443.71

12, 600.00
2,317.50
530, 241.33
92,354. 00
838, 444. 00


36,000.00 --------


60,000.00
15,000.00
60,000.00
10,000.00
186,342.54
8,965.95


3,000.00
60,000.00
10,000.00
186,342.54
8,965.95


------------
49,800.00

32, 600. 00

------------
6,000.00
5,000. 00





50.00
4, 000.00



500. 00






1,419.46


1,400. 00
-------..---















500.00
3,261.00
----.--- -
------------

----- - -






61,934.00


36,000.00

60,000.00
12,000.00


| --- - -
-_------ -






Operating and Special Appropriations-Continued

Act No. Departments or agencies Appropriated Allotted Unallotted


1441/1492/1521/1550/
1640/1710.
1394 ----............
1441/1492/1521/1550/
1600/1610/1710/
1721.
1479/1521-------

1479-----------
1521 --------..

1521-------

1550----...........-
1550..--------.............
1441/1492/1479/1521/
1550/1721/1739/T.
1492------------
1568IM----------
1441/1492/1521/1550/
1705/1710/1720/
1721/1730/T.
1441 __--------
1441/T _------
1441 --------
1492/1550 _- -----
1492/1705 _---
1628....-----
1740 ------

1740---------

1705- ---------


1705 ...-- ...-..

1441/1492/1521/1550/
1626/1709/1720/
1721.
1417_ -------
1441/1492/1550/1663/
1720/1740.
1441____--------
1441/1492_ --------
1492....--......

1417- -------
1585 -----
1441/1492/1521/1550/
1699.
1441/1492/1521/1709/
1720.
1492.__-------
1441/1492/1550.._--
1441.. ----------
1441/1492 -------
1441/1550....------
1441/1492 -------
1492/1521/1550/T ..--


Department of labor ------................. --..

Memorial to Virgin Islands war veterans ..-
Department of agriculture_ _---------------


Improvement and equipment of Abattoir,
St. Thomas.
Improvement of Abattoir, St. Croix__---....--
For repairs of bulldozers in St. John; for purchase
and repair of bulldozers in St. Thomas.
Purchase and repair of equipment for soil
conservation program, St. Croix.
Purchase of prefabricated steel building ....
Lighting of French Village ball park........
Department of public safety-------------------

Transportation of prisoners_-------
Claim of Bahige G. Khader-...........
Department of commerce .- .------........


St. Thomas Golf Association -- ....
Marine and aviation------------------
Caribbean Tourist Association --------
Fishing and water sports ---
Virgin Islands Community Action Council-
N.Y. Yankees and Pirates exhibition game-
Funds for promotion of Governor's confer-
ence in the Virgin Islands.
Grant to defray expenses of Caribbean
Queen Show.
St. Croix festival and Virgin Islands festival
committee, $6,000 included in visitor's
bureau.
Contribution for filming of NBC "Today"
show on the Virgin Islands.
Department of social welfare -----------


$209,595.89 $209, 595.89 -----


5,000.00
697,930. 29


28, 034.05

15,000.00
45, 000.00

25, 000.00

10, 000.00
5,000.00
1,441, 695.00

25,950.00
601.53
1,245, 537. 67


6,000. 00
60,000. 00
13,500.00
35, 000 00
4,300. 00
10,000.00
5,000. 00

6,000. 00


10,000. 00

1,776,995.78


Day care center at Estate Profit, St. Croix.- 5,000.00
Department of health......--------- _----------. 4, 564, 694. 00


Health and local scholarship -------_
Formula grants.---------------------
Repairs and maintenance to hospitals and
health buildings.
Health clinic at Estate Profit -----
Mobile medical program ___ _------------
Department of law _----------______ ____

Department of housing and commercial renewal-

Grant to emergency housing-----------
Municipal court of the Virgin Islands.. -------
Office of the supervisor of elections.. -------
Board of elections, St. Thomas ------------
Board of elections, St. Croix-- ---
Board of elections, St. John---- ------
Funds for promotion, transfer, or reinstatement
for classified employees.

Totals... -__ --________ -- ----- -


30, 000. 00
404, 605. 00
25,000. 00

5,000. 00
1, 000.00
265,690.00

322,404.92

25, 000.00
245,588.00
39,536.00
16,886.00
16,730.00
8,800.00
525,000.00


30,789,632.96


5,000. 00
643,914. 63


$54, 15. 66
-$54, 015. 66


28,034.05 ------


10,000.00
5,000.00
1,409,256. 00

7,000.00
601.53
1, 245, 537. 67


6, 000. 00

13, 500. 00
35, 000. 00
4,300.00

5, 000. 00


15,000.00
45, 000.00

25,000.00



32,439.00

18,950.00
------------





60,000.00



10, 000. 00
- - - - - -


6,000.00 1-


10,000. 00

1, 775, 133. 00


562, 759. 00


30,000.00
404, 605.00
25, 000. 00



263,790.00

318,622.00

25, 000.00
244,088.00
39,276.00
16,717.00
14,400.00
8,675.00
369,160.00


29,536,415.37


1,862.78


5,000.00
1,935.00


5,000.00
1,000.00
1,900.00

3,782.92


1,500.00
260.00
169.00
2,330.00
125.00
155,840.00


1,253,217.59


T=Transfer of funds.






Reappropriation of Certain Projects


Act No. Departments or agencies Reappro- Allotted Unallotted
priated


1376/1483 ..-- ...-

1084/1483 ------
1307/1483 -----

1114/1483-
1367/1483---------

1244/1483----------
1244/1483--------
1244/1483-------
1273/1483 -----
1273/1483 ------
1422/1483 ------
1422/1483------
1422/1483 -----
1422/1483 -----
1164/1483------

1351/1483-----

1176/1483

1360/1483 -------

1284/1462/1483 ------

1301/1483---------
1312/1483-----


Office of the Governor:
Historic site at Columbus Bay _----------
Department of agriculture:
Loans to farmers and fishermen -..._--------__ __
Eradication of wild dogs and mangoose ...------
Department of public works:
Construction of public comfort station _------_
Retaining walls and utilities at Altona Com-
munity Development.
Utilities at Lindberg Bay.. --_____ _----
Pump and potable water lines at hospital ground_
Extension of potable water system, St. Croix --_
Repairs to customs house building - ---
Construction of roads in Frederiksted... ..---
Substation for fire division, Grove Place -------
Paving road to clinic and substation ---________
Paving road to Estate Profit.-------- ---..
Construction of building for USO --------
Construction of police substation at Coral Bay,
St. John.
For development of Well Field Estate Thomas
(race track).
Demolition of barracks yard area ..-----____-__
Department of housing and community renewal:
Emergency housing--------------____------_
Department of property and procurement:
To authorize purchase of certain areas in St.
Croix, Whim Estate.
Survey of government office space--------------
Surplus property in Puerto Rico ..-._______.----

Totals -_ ......--- ----------- ____


$20, 000.00

15,000.00 -_
10,000.00 -


35,000.00
47,116.47

2,325.34
849.93
16,030.39
9,098.93
14,108.27
15,000.00
15,000.00
25,000.00
20,000.00
24,000.00

43,052.00

3,691.33

38,809.21


$47,116.47

2,325.34
750.00


000.00


3,691.33

38,809.21


35,000.00 --.


500.00
33,927.60


33,927.60


$20, 000. 00

15,000.00
10,000. 00

35,000.00



99.93
16,030.39
9,098.93
14,108.27

15,000.00
25,000.00
20,000.00
24,000.00

43,052.00






35,000.00

500.00


423,509.47 141,619.95 281,889.52


Appropriations Available Until Expended


Departments or agencies


The legislature:
Special committee to study pay plan ----
Office of the Governor:
50th anniversary of the transfer of the Virgin
Islands.
Airport study.---------___ ------------
Veterans assistant for education __-------
Acquisition of land at Estate Bovoni Horserac-
ing Track.
Caribbean Economic Development Corp ----__
Commercial fisheries potential of the Virgin
Islands.
Department of public works:
Purchase of land at Brewers' Beach ------.._.
Potable water at Grove Place ... ------------
Construction of wing at Carenage Clinic .----
New airport study and acquisition of land ----
Hardsurfacing of St. Peter Mt. Road to Hull--
Public improvement, St. John.__.-- __.-
Purchase of land for PWD, St. John (post office)
Concrete paving of Sagus Road -------
Concrete paving of Altona Well Alley---------


Act No.


1698 -

1503 -

1257 -
1589-
1728-

1733-
1733-


973---
977--- -
1172---
1257--
1375--
1377---
1379---
1380---
1382--


Appropriated


$5,000. 00

5,000.00

15,000.00
10,000.00
10,000.00

2,000.00
7,000.00


40,000.00
50,000.00
15,000.00
312,296.00
21,000.00
25,000.00
40,000.00
20,000.00
15,000.00


Allotted


$2,000.00

15,000.00





7,000.00


20,000.00
5,000.00


Unallotted



$5,000.00

3,000.00


10,000.00
10,000.00

2,000.00



40,000.00
50,000.00
15,000.00
312,296.00
21,000.00
25,000.00
40,000.00

10,000.00


-----: 1 I






Appropriations Available Until Expended-Continued

Act No. Departments or agencies Appropriated Allotted Unallotted


Department of public works-Continued


1638__.---
1594/1629 ---
1580.--

1700.....-
1702.--
1703--

1719__ ---

1456 ------

858 --
912/1170-_ ..

1325------__

1214_---

1576 -------


1639------


1073 ----
1499 -
1482-
1575-
1786---

1467 --
1732/1761-..._-

955-------------

1712 -------

1009---------
1410/1586 .--



1733_


Improvements of roads and streets, St. Thomas.
Improvements of Manning Bay Racetrack .....
Beautification of Emancipation and Roosevelt
Parks.
Street lights at Estate Tutu-----------.......---
Improvements at Altona..._ ___-----
Lighting, fencing, equipment, and improve-
ments, PWD, St. Croix.
Public comfort station ........-.._---
Office of the government secretary:
Pamphlets and binders, Virgin Islands Code -.-
Department of property and procurement:
Acquisition of land for public scenic highway .
Funds for property acquisition .._--_---_
Department of social welfare:
Sewing project for St. John ------------__...__ ..
Department of education:
Development of land for baseball and softball
field.
Sports promotion between Virgin Islands All
Stars and Puerto Rico All Stars.
Department of labor:
Virgin Islands Commission on the Status of
Women.
Department of health:
Temporary health insurance------------------.
Overpayment for pharmacy licenses .- ---------
Claim of Jacqueline Warner----..... ............
Educational program for retarded children......
Practical nursing training scholarship program_ __
Department of finance:
Unliquidated encumbrances----- -----...........
Contribution to the Amateur Sports Associ-
ation, etc.
Department of housing and community renewal:
Transfer of land at Estate Profit .------_-___
Subdivision of estate Lordeaux----...... ........
Department of agriculture:
Fish market at French Town...................
Public beach at Fort Louise Augusta----.......
Sports promotion between Virgin Islands All
Stars and Puerto Rico All Stars---..........
Department of Public Safety:
Protective clothing and equipment.------------

Total_--- ------

Grand totals --- ----------


$350, 000. 00
30,000.00
10,000.00

5,000.00
60,000.00
100,000.00

30,000.00

3,500.00


100,000.00 --
74,832.00 .---------


10, 000.00

3,000.00


1,212.50


3,000.00


1,000.00
40.00
25,000.00
10,000.00
35, 000.00

50,000.00
40,000.00


15, 000.00 --
50,000.00 ---

25, 00.00 ---------
75,000.00 -------


2,787.50


$350,000.00
30,000.00
10,000.00

5,000.00
60,000.00
100,000. 00


3,500.00 _


$30,000.00


100,000.00
74,832.00


10,000.00 1--


1,212.50


3,000.00


3,000.00 _-


40.00
25,000.00
3,333.00


45,000.00
30,000.00


1,000.00


6,667.00
35, 000.00

5,000.00
10,000.00


15,000.00
50,000.00

25, 000. 00
75, 000.00


2,787.50 1 -----


2, 000. 00o .

1, 703, 668. 00 727,873. 00

32,916,810.43 30,405,908.32


2, 000.00

975,795.00

2,510,902.11






The following is a 4-year comparative statement of gross U.S. Internal Revenue
taxes on Virgin Islands imports:


Fiscal year Fiscal year
1963 1964


$422,536.53 $686, 251.40
641, 487. 05 871, 291.07
818, 765.93 713, 409. 72
762,835.01 829,433.73
700, 863. 04 654, 638.93
585, 888. 70 764, 967.86
605, 587. 01 549,119.77
480,814.07 604, 461.36
538,443.91 596,306.05
606, 805.30 621, 743.48
721, 067.16 692,878.48
716,191.10 817,391.10

7, 601, 284.81 8, 401, 892. 95


Fiscal year
1965


$806,557.71
903, 044.46
747, 811. 68
928,579.10
804,967.36
1,144,119.36
882,570. 60
577,392.75
945,322. 72
711, 065.23
1,011, 696. 71
1, 051, 228.82

10, 514.356. 50


Fiscal year
1966


$1, 017,105. 87
994,580.50
943,490.10
1, 004, 205. 94
934,990.99
1, 267,740.73
902, 183.79
713, 687.73
775, 470.46
939,362.62
788, 775. 94
914,333.40

11,195,928. 07


The following is a summary of Internal Revenue matching fund appropriations:

Capital Budget for Fiscal Year 1966-Government of the Virgin Islands

Total appropriations made for capital budget 1966:
Act No. 1425...------------------------- ----------------------- ----......... $6,100,000
Act No. 1463 --------.---------.-------------------------------.......... 392,700
Act No. 1468...--....-----...... ------------------------------........... 450, 000
Act No. 1489---. ------------------------------------------------. 812,690
Act No. 1526 ---------------------------------------------------- --.. .. --350,000
Act No. 1549-- ---------------------------.....---------. ----- ---------- 555,000
Act No. 1564..............--..... --...-- ..........-
Act No. 1620---.............. ............ .......---
Act No. 1624..............---............- ..------
Act No. 1645..-........................------- ----
Act No. 1808----- ................--- ..........-----
$7,960,390.00

Total funds available for capital budget 1966 ($10,405,984.38 available less $3,500,000
for operating budget) ------....... ... .-------------------------..--..--- -... 6,905,984.38
Projects frozen or unallotted for lack of funds ....---- ----.... -----------._---------_ 1,055,000.00

All expenses for construction and improvement of emergency housing, other areas,
including acquisition of land, construction of cisternsand foundation (St. Thomas)- 12,500
All expenses for the construction of emergency housing, any area, with preference
to veterans, including acquisition of land (St. Thomas) -------------.---------- 22,500
Crown Bay dredging and filling, and Long Bay fill improvement (St. Thomas). _. 325,000
Improvements of Brewers Bay for the accommodation of the public (St. Thomas)_ 50, 000
All expenses for the construction of emergency housing, any area, with preference
to veterans, including acquisition of land (St. Croix) --..........------------. 62,500
Remodeling facilities at Golden Grove for College of the Virgin Islands (St. Croix) 7,500
All expenses for the construction and improvement of emergency housing, all areas,
including acquisition of land, purchase of construction equipment and for rural
rehabilitation including the construction of toilet facilities (St. Croix) ------ 50, 000
Improvement of ball park, Cruz Bay, St. John ....... ._ ----------_ --- ---_ 25, 000
Contract reimbursement to Harvey Alumina of Virgin Islands, Inc ------------ 500,000
1,055,000.00

Released and allotted capital budget 1966-------------------- -- ------------------------_.... 6,580,390.00
Not appropriated---.------------------------------------------------------------------.. 594.38


July.-------------------------
August ----------------------__
September _____..... ........----
October--------------.----
November .....-- -----------------
December._--- ---- ----------------
January. -----------
February----------------
March -------------------------------
April. --------------------------
May. ------------------------
June___.-- ..-- .--------------

Total ---------






Still to be released--.....---------------------------------------------------------------------- $325,000.00


Acquisition of land at submarine base, St. Thomas_ __-------------------------_
Relocation of recreational facilities, St. Thomas -------------......--
Acquisition of land from Virgin Islands Corporation, St. Croix-- ------------
Recreational facilities at Golden Rock, Orange Grove Area, St. Croix_ ------


Total funds available ------.. -----------


------- 6,905,984.38


Act No. Virgin Islands Appropriated Allotted Unallotted


VI-24; 1425/1549 -.. Power and water. ----- ------------------- $1,125,000 $1,125,000 ------
VI-25; 1425 --- Principal and interest on bonds -------------. 300,000 300,000 -------
VI-26; 1425------.-- Contingencies including geological surveys ....- 100,000 100,000 --
VI-27; 1549 ----- Laboratory and office for fisheries research 29,000 29,000 ---- -
project.
VI-34; 1549 --------. Professional services to develop new program for 25, 000 25,000 --
public housing projects.

Total .......---. .-------. -- ------------- 1, 579,000 1,579,000 ------



Matching Funds Projects, Fiscal Year 1966


Act No. Projects Appropriated Allotted Unallotted


ST-158-6; 1425 ..___------
ST-159-6; 1425-----

ST-160-6; 1425 --


ST-161-6; 1425 ----


ST-162-6; 1425/1468 _---



ST-163-6; 1425 ---


ST-164-6; 1425..__-




ST-165-6; 1425 _----


ST-166-6; 1425--....-...-

ST-167-6; 1425--.....--..




ST-168-6; 1425 __------


St. Thomas

Acquisition of land at lagoon area----.....
Acquisition of land at former submarine
base.
Construction of emergency housing at
Estate Contant, including purchase of
construction equipment.
Construction of emergency housing at
hospital grounds, including purchase of
construction equipment.
Construction and improvement of emer-
gency housing, other areas, including
acquisition of land and purchase of
construction equipment.
Construction of emergency housing, any
area, with preference to veterans, in-
cluding acquisition of land.
Repair and construction of roads at Savan,
Anna's Fancy, Agnes Fancy, Altona,
and hospital ground, and erection of
protective rail at Carney Richardson
Bridge.
Repair and construction of roads at
Contant, Haabets, Gade and Nye
Nordsidevej.
Repair and construction of Mandalh Road
from Casi Hill to Magens Bay Road.
Repair and construction of Crown Road
from Contant to Crown Mountain,
Sagus Road, New Lindberg Bay-Crown
Mountain Road and acquisition of plot
of land.
Improvement of other roads including
erection of retaining wall near No. 3
Lerkenlund.


$150,000
150,000

200,000


100,000


250, 000



100,000


200,000




100,000


100,000

75,000




25,000


$150,000 -


200,000 -


$150,000


100,000 ----


237,500



77,500


200,000 ---


1 12,500



122,500


100,000


100,000 -


75,000




25,000


See footnote at end of table.


249-079 0 67 7


$150,000
50,000
100, 000
25,000

325,000






Matching Fund Projects, Fiscal Year 1966-Continued


Act No.


ST-169-6; 1425/1489/1526__
ST-170-6; 1425/1489/1526__
ST-171-6; 1425/1489/1526_
ST-172-6; 1425.----_
ST-173-6; 1425/1526 --..

ST-174-6; 1425/1489/1526__
ST-175-6; 1425 --_ --_

ST-176-6; 1425__------
ST-177-6; 1425 -------
ST-178-6; 1425 _- _____



ST-179-6; 1425__ ---

ST-180 6; 1425/1489 ---.

ST-181-6; 1425/1549 ------


ST-182-6; 1463 ---------


ST-183-6; 1489----

ST-184--6; 1489----





ST-185-6; 1489-----

ST-186-6:1489 -----


ST-189-6; 1549-----


ST-190-6; 1549 ------


ST-191-6; 1549 ---


Total------------


Projects


St. Thomas-Continued

Extensions to potable water system --..
Extensions to salt water system ______---_
Extensions to sewer system ----------_.__
Purchase of equipment----------------.
Repairs and improvements to Govern-
ment House.
Relocation of recreational facilities --------
Crown Bay dredging and filling and Long
Bay fill improvement.
Construction of bus shelters ----. ---_--___
Extension of hospital facilities-,-_---_---_
Improvements to recreational facilities
including lighting at the Lionel Roberts
Stadium, purchase of land, and develop-
ment of playground at Savan.
Improvement of Brewers Bay for the ac-
commodation of the public.
Improvements to and equipment for
Senate Building.
Repairs and improvements to educational
buildings and construction of addition
to school-lunch warehouse.
Relocation and construction of the Queen
Louise Home for the Aged including
site improvements and landscaping.
Completion of construction of 2d floor
building at Department of Finance.
Remodeling restrooms and constructing
counters in terminal building, remodel-
ing crash house, improving parking areas
and parking facilities and landscaping
at Harry Truman Airport.
Repairs and improvements to government
buildings.
Purchase, erection, and construction of
prefabricated building for operation of
Public Health activities.
Improvements, modifications, and expan-
sion of facilities in terminal building at
Harry S. Truman Airport.
Reconstruction and equipment of build-
ing in Old Municipal Hospital to be used
for Mental Health Center.
Construction of storage facilities for Civil
Defense Emergency Hospital.


Appropriated Allotted


$100,000
100,000
100,000
30,000
80,000

50,000
325,000

25,000
50,000
100,000



50,000

77,500

50,000


392,700


43, 000

35,000





10,000

22,650


100,000


40,000


7,500


3,235,350


$100,000
100,000
100,000
30,000
80,000


25, 000
50, 000
100,000






77,500

50,000


392,700


40,000

35,000


Unallotted


$50, 000
1325,000








S50,000


10,000 ----


22,650


100,000


40,000


7,500 --


2,625,350 610,000


St. Croix


SC-151-6; 1425/1468_




SC-152-6; 1425--


SC-153-6; 1425/1526_


Construction and improvements of emer-
gency housing, all areas, including ac-
quisition of land, purchase of construc-
tion equipment for rural rehabilitation,
including construction of toilet facilities.
Construction of emergency housing, any
areas, with preference to veterans, in-
cluding acquisition of land.
Extension of Charles Harwood Hospital
Wing.


See footnote at end of table.


$350,000




100,000


250,000


1 $50,000





1 62,500


$300,000





37,500


250,000




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