• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 General information
 Highlights of the year
 Legislation
 Virgin Islands water and power...
 Virgin Islands airport and industrial...
 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 of education
 College of the Virgin Islands
 Department of health
 Department of social welfare
 Department of commerce
 Department of agriculture
 Department of labor
 Virgin Islands employment security...
 Department of public works
 Department of finance
 Office of the director of...
 Department of housing and community...
 Department of property and...
 Department of law
 Department of public safety
 Municipal court of the Virgin...
 Office of probation and parole
 Office of civil defense
 Virgin Islands planning board
 Division of personnel
 Selective service
 Conclusion
 Appendix






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/UF00015459/00002
 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: 1967-1968
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: VID00002
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
        Page 6
    Highlights of the year
        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
        Page 20
        Page 21
    Virgin Islands airport and industrial resources agency
        Page 22
        Page 23
    Public utilities commission
        Page 24
        Page 25
        Page 26
    Bond issue and interim financing
        Page 27
        Page 28
        Page 29
    Control of processing of woolen yard goods
        Page 30
        Page 31
    Control of manufacture of watches
        Page 32
        Page 33
    Office of public relations and information
        Page 34
        Page 35
    Office of the government secretary
        Page 36
        Page 37
    Department of education
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
    College of the Virgin Islands
        Page 45
        Page 46
        Page 47
    Department of health
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
    Department of social welfare
        Page 57
        Page 58
        Page 59
        Page 60
    Department of commerce
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
    Department of agriculture
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
    Department of labor
        Page 72
        Page 73
        Page 74
    Virgin Islands employment security agency
        Page 75
        Page 76
    Department of public works
        Page 77
        Page 78
    Department of finance
        Page 79
        Page 80
    Office of the director of the budget
        Page 81
        Page 82
    Department of housing and community renewal
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
    Department of property and procurement
        Page 89
        Page 90
    Department of law
        Page 91
    Department of public safety
        Page 92
        Page 93
        Page 94
        Page 95
    Municipal court of the Virgin Islands
        Page 96
    Office of probation and parole
        Page 97
    Office of civil defense
        Page 98
        Page 99
    Virgin Islands planning board
        Page 100
        Page 101
        Page 102
        Page 103
    Division of personnel
        Page 104
        Page 105
    Selective service
        Page 106
        Page 107
    Conclusion
        Page 108
    Appendix
        Page 109
        Page 110
        Page 111
        Page 112
        Page 113
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
        Page 120
        Page 121
        Page 122
        Page 123
        Page 124
        Page 125
        Page 126
        Page 127
        Page 128
Full Text


















UNIVERSITY

OF FLORIDA

LIBRARIES


i







1968 Annual Report

Virgin

Islands

to the
Secretary of the Interior
For the Fiscal Year Ended June 30


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












LATIN
AMERICA















CONTENTS
Page
General Information. .................. ...................... 1
Highlights.................................... ........... .. 7
Legislation .................. ......................... 13
S Virgin Islands Water and Power Authority.......................... 18
Virgin Islands Airport and Industrial Resources Agency............. 22
Public Utilities Commission. ........ ............................ 24
Bond Issue and Interim Financing. ............................. 27
Control of Processing of Woolen Yard Goods ....................... 30
Control of Manufacture of Watches. .............................. 32
Office of Public Relations and Information ......................... 34
Office of Government Secretary. .................................. 36
Department of Education ....................................... 38
College of the Virgin Islands. .................................... 45
Department of Health. ................. ....................... 48
Department of Social W welfare. ................................... 57
Department of Commerce ....................................... 61
Department of Agriculture ...................................... 67
Department of Labor .................. ................... .... 72
S Virgin Islands Employment Security Agency. ...................... 75
Department of Public Works. ................ ................. 77
SDepartment of Finance. ... ................. .................. .. 79
Office of the Director of the Budget. .............................. 81
Department of Housing and Community Renewal................... 83
Department of Property and Procurement ................... ... 89
Department of Law ............................. ........... 91
Department of Public Safety. ........................ ........... 92
The Municipal Court of the Virgin Islands ........................ 96
Office of Probation and Parole. ............................. ... 97
Office of Civil Defense. ............................. ... 98
SVirgin Islands Planning Board ........ ........................... 100
Division of Personnel ............. ............................ 104
Selective Service ............. .............................. 106
C onclu sion ............... ..................... ............... 108








































President Johnson voiced his satisfaction in the achievement in his time of the major territorial political advancement evidenced by the enactment of the
Virgin Islands and Guam Elective Governor Acts providing for the popular election of the Governors of those two territories in 1970, as he signed the
Guam bill on September 11, 1968. The Virgin Islands bill was signed on August 23, 1968. Standing left to right: Antonio B. Won Pat; Assistant Secretary
of the Interior Harry Anderson; Henry L. Kimelman; Governor of the Virgin Islands Ralph M. Paiewonsky; Senator Quentin N. Burdick; Governor of
Guam Manuel F. L. Guerrero; Senator Henry M. Jackson; Secretary of the Interior Udall, and former Governor of Guam Bill Daniel.












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 rolling hills of a Caribbean
paradise. The spot is known today as
Salt River Bay, one of the many pic-
turesque inlets in the U.S. Virgin
Islands.
The Great Navigator named his
"discovery" Santa Cruz, meaning "Is-
land of the Holy Cross" and sent a
landing party ashore to replenish the
ship's dwindling water supply. Instead
of the warm welcome visitors receive
today, Columbus' men were repulsed
by the fierce Carib Indians. No further
attempts were made to land and colo-
nize 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 christ-
ened them "Las Virgenes" in honor of
St. Ursula and her 11,000 martyred
virgins.
The value of these and the other is-
lands of the West Indies soon became
apparent to the crowned heads of Eur-
ope and colonization was encouraged.
England, France, Holland, and Spain
vied for control during the 17th cen-
tury with sugar as the principal attrac-
tion. So important was trade with the
West Indies that Great Britain, nego-
tiating with France to end the Seven
Years' War in 1763, seriously consid-
ered keeping the Island of Guadeloupe
instead of Canada.


Denmark played the most important
role in the development of the U.S. Vir-
gin Islands. Entering the picture in
1671, she chartered the West India Co.
and began serious colonization of St.
Thomas and St. John. St. Croix was
purchased from France in 1733. Ex-
cept for a brief period of British occu-
pation during the Napoleonic Wars,
the Danes ruled these islands until
1917.
Thus began a golden age of com-
merce and peaceful development for
the Virgin Islands, blessed by the Dan-
ish policy of neutrality and liberal trad-
ing laws. Ships of all the nations of
Europe, carried 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 supported the
burgeoning island economy.
Sugar was king and its influence was
felt everywhere. Throughout the Is-
lands of St. Thomas, St. Croix, and St.
John, massive stone windmills were
erected for grinding cane. Many of
these towers remain reminders of a
bygone era and evidence of a once
flourishing plantation life.
With wealth came the unfortunate
byproducts, greed and avarice. The
Caribbean became the hunting ground
of such notorious pirates as Captain
Kidd and Edward Teach, the noto-
rious Blackbeard. It is said the Virgin
Islands were spared the depredations
of these buccaneers by paying "protec-
tion" in the form of sanctuary 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 in-
troduced 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 arrived from Martinique
to help the Danish masters regain their
land. Legend has it that the last sur-
vivors of the ill-fated uprising com-
mitted mass suicide by plunging over a
cliff or shooting themselves 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.
Emancipation Proclamation. From
then on, sugar decreased in commercial
importance in the Virgin Islands, out-
done by the more favorable conditions
for cane operations in Cuba and
elsewhere.
The United States took its first in-
terested look at the islands during the
American Civil War. However, a pur-
chase agreement fell through when the
Senate refused to ratify the negotia-
tions in 1870. Bargaining continued
throughout the century but it wasn't
until World War I that the United
States moved decisively. Fearing a Ger-
man seizure that would give U-boats
a base in the Caribbean, the United
States bought the Danish Virgins in
1917 for $25 million. 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 from Miami, Fla.;
and 40 miles east of Puerto Rico, 75
air-miles from San Juan.
The islands are a part of the Antilles
which form the dividing line between


the Caribbean Sea and the Atlantic
Ocean. They are located directly in
the path of the trade winds, so com-
mercially important in the days of
sail, at the eastern end of the Greater
Antilles and the northern end of the
Lesser Antilles.
The U.S. Virgins 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
significance. The largest of these, St.
Croix, with 84 square miles is, for the
most part, flat, and suited for agricul-
tural use. Forty miles due north, St.
Thomas with 28 square miles, offers
dramatic rugged mountains that rise
sharply from the sea to height of up
to 1,500 feet. A few miles east of St.
Thomas, the Island of St. John with 20
square miles, offers similar land and
sea scapes. Both islands rise from the
same submarine plateau. Between these
two islands and St. Croix, the Carib-
bean Sea deepens to a 15,000-foot
trench.
Because of the steep sloping moun-
tainsides, very little land on St. John or
St. Thomas is tillable. St. Croix, how-
ever, is well suited agriculturally, and
priority is being given to the advance-
ment and diversification of this indus-
try. Until recently, sugarcane was the
only important crop. However, it had
been a marginal one and had cost the
local government large sums of money
to cover milling losses. Consequently,
sugar has been phased out and termi-
nated as a commercial crop. Instead,
industry has been encouraged to de-
velop and over 4,000 acres of prime
land is being utilized under a compre-
hensive agricultural plan now being
developed. This includes broad re-
search into feasible food crops, middle-
range programs for agricultural devel-
opment 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-sized commercial craft
from other West Indian islands. A deep
water harbor at Frederiksted on the
east end of St. Croix accommodates
ocean liners and is responsible for in-
creased cruise ship traffic to the island.
In addition, a full-size airport with di-
rect 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
deficiency with its excellent natural
harbor. It is one of the ranking ports
of call for cruise ships, and the ex-
pansion of its airport facilities has now
allowed for jet travel from the main-
land to the island.
St. John's main attraction is its un-
spoiled beauty, guaranteed to remain
so since much of the island is taken up
by the Virgin Islands National Park.
The incomparable beaches, breathtak-
ing mountain views, and lush vegeta-
tion bring an increasing number of visi-
tors each year, who explore the island's
charm by jeep or boat.
The U.S. Virgins enjoy a near per-
fect climate. Temperatures stay within
the 70 to 90 range with an average
78. The balmy trade winds provide
natural air conditioning. Humidity is
comfortably low with rainfall averag-
ing about 45 inches a year.
There is an abundant variety of trop-
ical flora ranging from the well-known
hibiscus, bougainvillea, oleander, poin-
settia, and wild orchid, to the less com-
mon African tulip, frangi pani, and
lignum 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, ma-
hoe, and seagrape trees. Exotic fruits
from native trees grace the tables of
Virgin islanders, the more popular be-
ing mango, soursop, lime, guava, sugar
apple, avocado, papaya, 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 be-
coming recognized as a prime fishing
area. Blue marlin, wahoo, tuna, tarpon,
kingfish, and bonefish are taken the
year round while white marlin and sail-
fish are caught during most months.
The Virgin Islands now holds the
world record for the largest blue mar-
lin. Smaller fish also abound. They in-
clude 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 gov-
erned 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 admin-
istered by the Knights of Malta.
When the United States purchased
the Virgin Islands in 1917, the transi-
tion was accomplished smoothly by re-
taining the Danish legal code as the
basic law. The Navy was given respon-
sibility for administering the islands
until 1391. Military, civil, and judicial
power were vested in the Naval Gov-
ernor, who was appointed by the Presi-
dent of the United States.
On February 27, 1931, an Executive
order from the White House trans-
ferred jurisdiction from the Navy to
the Department of the Interior, and the









first civilian governor was appointed
by the President.
A major change in the method of
governing the islands occurred with the
passage of the Revised Organic Act of
1954 by which the Congress authorized
distinct executive, legislative, and
judicial branches and provided for a
substantial degree of self-government.
Recent changes in the act provide for
an even greater degree of home rule.
Presently, the Governor is appointed
by the President, subject to Senate con-
firmation and exercises the executive
power under the supervision of the
Secretary of the Interior. In 1970, by
recent Congressional Act, he will be
elected by the people of the Virgin Is-
lands for the first time in Virgin Islands
history. The Governor is responsible
for execution of local laws, administra-
tion of all activities of the executive
branch, and the appointment of de-
partment heads and other employees.
He reports annually to the legislature
on the state of the territory and recom-
mends new legislation to carry out the
various programs of local government.
The government secretary also is ap-
pointed by the President. In the ab-
sence of the Governor, the government
secretary serves as acting Governor. He
also 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 15 senators,
five from St. Croix, five from St.
Thomas, one from St. John, and four
elected at large by Virgin Islands voters
of all the islands. Each bill passed must
be signed by the Governor before it be-
comes law. A two-thirds vote of the
legislature is necessary to override the
Governor's veto. In this event, the Gov-
ernor 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 at-
torney are appointed by the President
of the United States. The district court
exercises jurisdiction over felony vio-
lations of the local criminal code as
well as jurisdiction over crime arising
under Federal law. The municipal
court judges are appointed by the
Governor, and confirmed by the legisla-
ture. The municipal court exercises ju-
risdiction 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 handled by either the municipal
court or the Federal court; all cases
over $10,000 are in the exclusive juris-
diction of the Federal 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 Ap-
peals for the Third Circuit, Philadel-
phia, and the U.S. Supreme Court ex-
ercises appellate jurisdiction over the
district court of the Virgin Islands.
Finances and Taxes
There are three principal sources of
revenue for the government of the Vir-
gin Islands from which funds are de-
rived for capital and operating
disbursement.
The largest source and one that is
growing every year, is from local in-
come taxes. An act of the Congress of
the United States provides that Federal
income tax schedules be applied as a
local tax in the Virgin Islands. Another
major contributor to the treasury con-
sists of Federal excise taxes collected
in the United States on imports of Vir-
gin Islands 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 addition, the Federal Govern-
ment assists the islands by appropria-
tions and grant-in-aid allotments for
many activities in employment services,
public assistance, health and diseases
services, wildlife, and libraries. There
are over 60 such aid programs and
appropriations.
Economic Development
Tourism continues to be the most
important industry in the Virgin Is-
lands. Income from visitors' expendi-
tures during fiscal year 1968 reached a
new record high of over $100 million as
compared with $75 million in fiscal
year 1967.
Efforts continue toward the creation
of a broader industrial and agricultural
base within the islands' economy. To
establish and maintain this economic
stability, small manufacturing firms are
continually being encouraged to estab-
lish operation in the islands. On St.
Croix, two large industrial concerns are
in production, providing employment
opportunities for a large number of
citizens.
Such diversification provides year-
round employment at good wages for
many islanders, and has 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 $2,500 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 promoted through the Virgin Islands
Rum Council, supported jointly by
the rum distillers and the local govern-
ment.
Tax exemptions and subsidy benefits
long have been used by the local gov-
ernment to encourage industrial de-
velopment. Incentives for private in-
vestment in hotels, guesthouses, in-
dustrial concerns, and housing projects
include tax exemptions of up to 16


years and the return 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. To guard
against abuses of section 301, the local
government sets up production quotas
for certain classifications of textiles,
and on the manufacture of watches,
with higher taxes provided for produc-
tion in excess of the quotas. The watch
production legislation was supplanted
in January 1968 by a congressional act
designed for the same purpose but ap-
plicable as well to other territorial
areas subject to the same section 301
treatment.
Population
The Virgin Islands are in the midst
of a population explosion. Currently,
the resident population is estimated at
63,000, including alien workers and
part-time residents, and it is expected
this will jump to 70,000 by 1970. The
total labor force is in excess of 26,000.
In 1960 the census recorded the resi-
dent population at 32,099. A break-
down of the 1960 population figures
records 15,930 males and 16,169
females. Residents of urban communi-
ties numbered 18,017; 14,082 lived in
rural areas, while 8,892 were enrolled
in schools. The total labor force was
11,336, 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-speak-
ing families have come from Puerto
Rico, chiefly settling in St. Croix.
The people are devout and worship
in many churches including Roman
Catholic, Anglican, Lutheran, Meth-
odist, Jewish, Moravian, Seventh-Day

5








Adventist, Pilgrim Holiness, Christian
Mission, Dutch Reformed, and Baptist.
Health and Education
The Virgin Islands have set an ex-
ample for the entire Caribbean in the
preservation of health, the develop-
ment of education, and the replace-
ment of slums with modern housing.
Each year sees further advances in
hospital and public health services, and
construction of two multimillion-dollar
health centers designed to provide ade-
quate facilities for the long-range needs
of the community is expected to begin
in the new fiscal year. Diseases once
associated with tropical climates have
long since been eradicated, and the
climate eliminates the need for home
heating or heavy clothing, further con-
tributing to the good health of the
Virgin Islands.
Educational standards continue to
be upgraded. Public schools cover
kindergarten through high school, and
the islands' two major high schools
have full accreditation. The College of
the Virgin Islands, established in 1963,
has reached an enrollment of 272 full-
time students and 1,145 part-time
students and in the new fiscal year will
become a 4-year institution offering
programs in liberal arts and teacher
education. In addition, the college
will continue to offer seven 2-year
programs.


Communication and Transportation
All three Virgin Islands enjoy the
facilities of a dial telephone system that
is being constantly expanded to meet
the growing needs of the community.
Marine cables have been installed that
has made possible direct dialing to
Puerto Rico and to the mainland.
Worldwide radio telegraph service is
also available.
The islands are served by three radio
stations, two television stations, and
five newspapers, three of them dailies.
While most visitors came by air, fly-
ing in jet planes to Puerto Rico and
then by smaller planes to the islands,
aircraft design of recent years has
affected this travel pattern. With the
introduction of medium-range jet
aircraft, capable of takeoffs and land-
ings from short runways, the islands
are now serviced by daily direct jet
service from New York City and
Miami. A growing regular seaplane
service operates between the principal
islands. Aside from short-stay cruise
ship passengers, there are very few
people who arrive by boat. Small native
sloops and charter boats carry travelers
between islands and to the nearby
British Virgin Islands.
Local transportation is provided by
bus, taxis, and rented vehicles. Most
roads are paved, with continued im-
provement each year, and driving is on
the left side of the road.












HIGHLIGHTS OF THE YEAR


The first half of fiscal year 1968
marked the final 6 months of the year-
long observance of the islands' 50th an-
niversary as a part of the United States
and featured the hosting of the 59th
Annual Governors' Conference enroute
to and in the Virgin Islands in October.
The event proved to be a fitting climax
to 50 years of recorded progress, re-
flected in significant social, economic,
and political development under the
American flag.
Efforts to keep pace with the de-
mands of a burgeoning population con-
tinue to be successful through broad
programs in housing, health, education,
and power and water expansion. In-
creasing tourism and the continued in-
flux of new business and industry have
sparked economic advancement.
The islands maintain a close working
relationship with the Federal Govern-
ment through the Congress, the De-
partment of the Interior, and other
Federal agencies, in the interests of
steady progress toward the fulfillment
of long-range goals.
A Virgin Islands Elective Governor
Bill
At the close of fiscal year 1968, an
elective governor bill for the Virgin Is-
lands to take effect in 1970, was as-
sured. The Senate had passed the bill
earlier in the year and the House acted
favorably early in the new fiscal year.
President Johnson signed the historic
act on August 26, 1968. The act calls
for the Governor and Lieutenant Gov-
ernor to be elected by the people of the
Virgin Islands. It also contains revi-
sions in the 1954 Revised Organic Act


giving greater autonomy to the terri-
tory. These include an end to the Presi-
dential veto of local legislation; the end
of Presidential power to remove a Gov-
ernor; changes in the authority of the
federally appointed Comptroller and
the removal of the ceiling on revenue
bond issues.
President Johnson, on the occasion
of the signing of the bill, stated that "it
serves as proof of American dedication
to the principles of self-government
and home rule."
He lauded Virgin Islanders for the
progress made in recent years.
The 59th Annual National Gover-
nors' Conference
The Nation's Governors were hosted
by the Virgin Islands government on
the occasion of their 59th Annual Con-
ference. The event was held aboard the
S.S. Independence enroute from New
York to the Virgin Islands in October
with the final business session and fes-
tivities taking place in the islands.
Forty-three of the State Governors',
their families and staffs and more than
160 national news media representa-
tives were given an enthusiastic wel-
come in both St. Thomas and St.
Croix. Sightseeing, shopping, swim-
ming, and boating were among the
most popular activities with dinners
held at Magens Bay in St. Thomas and
Fountain Valley in St. Croix.
News coverage of the event was
worldwide and the islands were fea-
tured on network, television, radio and
in hundreds of newspapers and na-
tional magazines.








Oil Royalties for Conservation
The Secretary of the Interior
granted a 15,000-barrel-a-day finished
product import quota to Hess Oil Vir-
gin Islands with the stipulation that a
royalty be paid on the increased quota
to the Virgin Islands. This will provide
close to $3 million a year for island im-
provements and legislation has been
enacted designating the use of the
moneys for conservation, recreation,
beautification, and cultural enrich-
ment.
The resultant expansion of the Hess
facilities is expected to involve the
establishment of petro-chemical indus-
tries utilizing the byproducts of the
petroleum operation and bringing a
further diversification of industry and
additional economic progress to the
islands.


A Department of Conservation and
Cultural Affairs
Use of the oil royalties to be pro-
vided by the Hess Oil quota has re-
sulted in the establishment of a depart-
ment of conservation and cultural
affairs to begin operation in the new
fiscal year. The new department will
have control over the enforcement of
laws relating to conservation and the
development of natural resources. It
will undertake conservation programs
and be responsible for restoration and
preservation of scenic beauty and the
promotion of cultural affairs in keep-
ing with the islands historical and cul-
tural heritage. At the beginning of the
new fiscal year, a Commissioner had
been appointed and a contract signed
with one of the country's leading land-
scape architects and environmental


Governors of the States and members of their families cavort in Virgin Islands blue
waters during the National Governors Conference held there in October 1967.








planners for an overall study of en-
vironmental design, preservation and
development planning for the islands.
Additional Bond Financing
The Virgin Islands continued to re-
ceive the favorable endorsement of
banking institutions both in the islands
and on the mainland. At the beginning
of the fiscal year, the government's out-
standing bond debt stood at $11,780,-
000. In December, the largest general
obligation bond issue ever offered,
$6,915,000, was sold for school systems,
health center planning, and water
systems.
Close to $7 million in general obli-
gation bond anticipation notes were
also issued for school and water expan-
sion and $8,800,000 in electric revenue
bond anticipation notes were sold.
Power and Water Expansion
During the year, a 1-million-gallon-
a-day water desalting plant was com-
pleted on St. Croix and a 2.5-million-
gallon-a-day desalting plant with a
.15,000-kilowatt net steam generating
capacity was begun with completion
.expected in September of the new fis-
cal year. Total water distillation ca-
pacity for St. Thomas and St. Croix
is now close to 5 million gallons per
day.
Power production increased by
26.8 million kilowatts to a total of
162.5 million kilowatts. There is pres-
ently a total of 45,000 kilowatts avail-
able daily. A 2,000-kilowatt portable
diesel generating unit was added to
the power operation in September and
a 10,000-kilowatt steam electric gen-
erating plant was placed in operation
in November. Another 4,500-kilowatt
diesel unit began operation in June.
College Expansion and Building
Program
The College of the Virgin Islands
completed its plans for expansion to


4-year programs in liberal arts and
teacher education, and now boasts a
19-percent enrollment increase in the
number of full-time students and a 50-
percent increase in the number of
part-time students. The first baccalau-
reate degrees will be awarded in 1970.
An ambitious building program was
launched during the year with com-
pletion of new residence halls, faculty
housing, and apartments scheduled
for the start of the 1968 school year
and a new library to be completed
shortly thereafter. Plans were also
completed for a nurse education
building and a contract was let for
the final design of the proposed
Reichold Cultural Center.

School Construction and Educational
Advancements
During the fiscal year, the Wayne
Aspinall Junior High School in St.
Thomas, with 40 classrooms, was
opened, Central High School in St.
Croix with 42 classrooms began opera-
tion and an addition of 12 classrooms,
a library, kitchen, and office to the
New Nisky School was completed. An
additional 16 rooms were added to
other schools throughout the system.
Continued progress was realized in
the curriculum and instruction areas
of education. Adult education pro-
grams expanded and a joint teacher
training program between New York
University and the College of the Vir-
gin Islands continued for the second
year with practice teaching under the
direction of NYU supervisors. For the
first time, physics, chemistry, biology,
and general science labs were com-
pletely provisioned in each senior high
school.

Teacher Affiliation and Negotiation
During the year, Virgin Islands
teachers affiliated with the American
Federation of Teachers. The union's































St. Thomas, Virgin Islands, May 1968-New residence halls and student activities center
at the College of the Virgin Islands near completion for occupancy in September.


representatives met with the depart-
ment of education officials to negotiate
contract agreements for the 1968-
69 school year. Bargaining sessions
throughout the spring culminated in a
settlement giving teachers higher sal-
aries and other fringe benefits.
Gains in Health and Housing
New records were established in the
number of patients cared for in hos-
pitals and clinics on all three islands.
A new pediatric ward was begun at
Knud Hansen Memorial Hospital and
an out-patient clinic is expected to be
in operation shortly. Plans were laid
and funds allocated for addition ex-
pansions. In St. Croix, at the Charles
Harwood Memorial Hospital an en-
larged emergency room was completed
as well as an extension of the pediatric
service. A 30-bed addition was opened
and a major remodeling of the radiol-
ogy department begun.
The breakthrough in housing, begun
last year, has achieved major propor-


tions with the introduction of new
financing methods for government
housing construction. Private develop-
ers of large low-cost housing projects
have also added dramatically to the
number of new housing starts.
Economic Growth
The economic upsurge continued
with government revenues increasing,
employment opportunities expanding,
per capital income gaining, and tourist-
derived dollars setting new records.
Tourist expenditures exceeded $90 mil-
lion during the year as compared with
$75 million the preceding year. Bank-
ing activities continued to expand, with
bank assets exceeding $230 million.
Tourism Development
Once again, the number of tourists
visiting the islands established new rec-
ords with more than 923,000 visitors
as compared with 640,000 the year
before. The growing popularity of the
islands as a vacationland has been







stimulated by the Department of Com-
merce's strong promotional efforts and
an active mainland-based public rela-
tions program.
Air Service Expansion
Pan American stepped up its num-
ber of direct flights to the Virgin Is-


-I
j


lands to six per day, including the in-
auguration of direct service from Mi-
ami as well as the already established
service from New York.
Customs preclearance previously es-
tablished on St. Croix for the conveni-
ence of returning visitors was also es-
tablished on St. Thomas and further








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J,


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Director of Territories for the Department of the Interior, Mrs. Ruth VanCleve, chats
with Boy Scout during a visit to St. Croix.


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improvements were made to the run-
ways and building facilities at both
airports.
Recommendations were made for a
new jetport on the east end of St.
Thomas. A number of reports and
studies on the feasibility of such an
airport have been compiled and pre-
sented to the legislature and the public.
Public Television System
Groundwork was laid for a public
television system to serve all three is-
lands. The legislature passed bills to
create and finance such a system. A
PTV commission was organized. Con-
sultants were retained. A spokesman
for the administration appeared before
the House Committee on Interstate
and Foreign Commerce to support the
Public Television Act of 1967. The
commission studied sites for transmit-
ters on St. Croix and St. Thomas and
for a studio on St. Thomas. A general
manager was retained after a series of
interviews of candidates in Washing-
ton and St. Thomas. The Department
of Health, Education, and Welfare was
contacted, with a view to an applica-
tion for a grant to help meet construc-
tion and facilities costs. The possibility
of aid from the Ford Foundation also
was explored. A series of studies of the


legal, engineering, and financial as-
pects of a new PTV system was made.
New Personnel Program
With the assistance of a team of
consultants, a survey was conducted
over a period of 5 months for the pur-
pose of reviewing and evaluating the
personnel system of the government.
Directed by the division of personnel,
it sought, through recommended im-
provements and legislation, to elevate
the standards of service performed by
the government for its citizens. On the
basis of the survey's recommendations,
four bills to effect changes in personnel
policies were introduced into the legis-
lature and passed. Part of the program
that was devised called for adjustment
of salaries involving increases totaling
approximately $3 million annually. A
number of positions previously un-
classified, with tenure subject to the
discretion of the administration, were
classified, with resultant increase in the
security of the employee. The new pro-
gram in its early stages has given evi-
dences of advances toward its goals of
improving employee performance and
productivity and increasing employee
satisfaction and motivation with the
challenge of useful and rewarding
careers in government.












LEGISLATION APPROVED BY THE

SEVENTH LEGISLATURE OF THE

VIRGIN ISLANDS, JULY 1967-JUNE 1968


Act No. 2095-To Make Technical
Amendments to Chapter 89 of Title 33
Relating to the Sale of Real Property
for Delinquent Real Property Taxes.
Act No. 2096-To Exempt the Vir-
gin Islands from the Observance of
Daylight Savings Time.
Act No. 2109-To Amend Section
186, Title 17, of the Virgin Islands
Code, Relating to the College En-
trance Test.
Act No. 2126-Act To Repeal Title
22 of the Virgin Islands Code, En-
titled "Insurance," as Amended. To
Enact a New Title 22 "Insurance" of
such Code, and for Other Purposes.
Act No. 2094-To Amend Act No.
2092, Approved January 3, 1968, Re-
lating to the Regulation of the Car
Rental Industry.
Act No. 2184-To Regulate the
Practice of Architecture, Engineering,
and Land Surveying and for Other
Purposes.
Act No. 2127-Act To Repeal Title
9, of the Virgin Islands Code, Entitled
"Banking," as Amended, To Enact a
New Title 9 "Banking" of such Code.
and for Other Purposes.
Act No. 2098-To Amend Section
718, Title 3, of the Virgin Islands Code
Relating to the Financing of the
Government Employees Retirement
System.
Act No. 2114-To Define the Crime
of Annoyance by Telephone, Tele-


graph, or Written Communication and
to Provide for the Punishment of Same.
Act No. 2111-To Provide for Com-
pensation to Innocent Victims of Cer-
tain Criminal Offenses or the Depend-
ents of such Victims, To Establish a
Criminal Victims Compensation Com-
mission, and for Related Purposes.
Act No. 2103-To provide for a
Recreational Area in Estate Profit, St.
Croix, and for Other Purposes.
Act No. 2104-To Provide for a
Water Tank at Estate Profit St. Croix,
and for Other Purposes.
Act No. 2106-To Establish a Spe-
cial Legislative Committee To Study
the Industrial Incentive Program for
the Virgin Islands and for Other
Purposes.
Act No. 2161-To Clarify and
Amend Chapter 1 of Title 34 of the
Virgin Islands Code, Relating to the
Providing of Travel Assistance by the
Commissioner of Social Welfare.
Act No. 2116-To Regulate Bill-
boards along the Public Highways of
the Virgin Islands.
Act No. 2185-To Authorize the
Lighting of Certain Areas on the Is-
land of St. Croix and for Other
Purposes.
Act No. 2128--To Establish the Vir-
gin Islands Racing Commission, To
Amend Certain Provisions of Chapter
11, Title 32, Virgin Islands Code, Re-


324-471 0-68- 2








lating to Horse Racing in the Virgin
Islands, and for Other Purposes.
Act No. 2186-To Appropriate
Funds and To Provide Other Terri-
torial Contribution in Connection with
the Taarneberg-Ross Urban Renewal
Projects, St. Thomas.
Act No. 2117-To Amend Section
134 of Title 28 of the Virgin Islands
Code, Relating to Exemptions from
Recording Fees, and for Other
Purposes.
Act No. 2107-To Authorize an
Agreement for the Construction of
Molasses Storage Tanks in St. Croix,
To Provide an Appropriation for Cer-
tain Preparatory Work in Connection
Therewith, and for Other Purposes.
Act No. 2119-To Authorize the
Governor to Execute Amendment No.
5 to Cooperation Agreement Between
the Government of the Virgin Islands
and the Virgin Islands Housing
Authority.
Act No. 2121-To Authorize the
Committee on the Judiciary of the Leg-
islature to Co-Sponsor with the De-
partment of Law the 1968 Northeast
Conference on Uniform Reciprocal
Support.
Act No. 2122-To Authorize the
Department of Agriculture to Conduct
a Cost of Living Study for Develop-
ment of the Spring and Water Hole
at Banana Gut, No. 16 Estate Enighed,
St. John and for Other Purposes.
Act No. 2123-To Provide for the
Disposition of Unpaid Government
Checks, for the Escheat of Certain
Moneys in Relation Thereto, and for
Other Purposes.
Act No. 2151--To Amend the Provi-
sions of Subchapter III of Chapter 45
of Title 19 of the Virgin Islands Code
Relating to Judicial Proceedings for
the Apprehension and Treatment of
Mentally Ill Persons.
Act No. 2141-To Amend the Provi-
sions of Section 1532 of Title 33 of the


Virgin Islands Code Relating to the
Unauthorized Disclosure of Informa-
tion.
Act No. 2130-To Repeal Chapter
7 of Title 33 of the Virgin Islands Code
Relating to Stamp Taxes, and To Enact
a New Chapter 7 of Such Title.
Act No. 2132-To Amend Section
474 of Title 5, Virgin Islands Code,
Relating to Writs of Execution.
Act No. 2163-To Authorize the
Construction of a Building for the Girl
Scouts in St. Croix, Virgin Islands, and
for Other Purposes.
Act. No. 2134-To Amend the Pro-
visions of Chapter 9 of Title 27 of the
Virgin Islands Code Relating to the
Assessment of Administrative Penalties
for Filing of Application for License
after Statutory Deadline.
Act No. 3135-To Amend the Pro-
visions of Chapter 9 of Title 24 of the
Virgin Islands Code Relating to the
Issuance of License for the Operation
of Employment Agencies.
Act No. 2177-To Amend and Clar-
ify Chapter 11 of Title 24 of the Virgin
Islands Code Relating to Workmen's
Compensation.
Act No. 2139-To Authorize the
Establishment of the Virgin Islands
Public Television System, To Create
an Interim Commission for said Pur-
pose, and for Other Purposes.
Act No. 2204--To Authorize the
Extension of the Potable Water System
to the Golden Rock Area, St. Croix,
and for Other Purposes.
Act No. 2036-To Authorize the
Governor To Execute Further Amend-
ment to a Certain supplemental
Agreement with Hess Oil Virgin Is-
lands Corporation, To Establish the
Virgin Island Conservation Fund, and
for Other Purposes.
Act No. 2042-To Amend Certain
Provisions of Chapter 12 of Title 24 of
the Virgin Islands Code, To Provide a
Reduction in the Rate of Contribu-








tion; To Increase Maximum Benefits,
To Improve the Collection of Contri-
butions, and for Other Purposes.
Act No. 2048-To Authorize the
Construction of a Post Office Facility
in Cruz Bay, St. John, and its Leasing
to the United States Post Office De-
partment.
Act No. 2050-To Amend Section
4094 of Title 33 of the Virgin Islands
Code, Relating to Special Tax and Fee
Benefits for Housing Constructors.
Act No. 2061-To Clarify the Pro-
visions of the Personnel Merit System
Law Relating to the Qualification and
Compensation of Vocational Teachers.
Act No. 2066--To Amend Certain
Provisions of Title 20, Virgin Islands
Code, Relating to Automobiles for
Hire and for Other Purposes.
Act No. 2067-To Authorize the
Commissioner of Agriculture and Rec-
reation To Take Certain Measures for
the Eradication of the African Bont
Tick, Establish the Emergency Tick
Eradication Fund, and for Other Pur-
poses.
Act No. 2069-To Increase the
Amount of Bond Authorization Under
Section 113, Title 30, of the Virgin
Islands Code, Relating to the Virgin
Islands Water and Power Authority.
Act No. 2083-To Authorize the
Governor To Enter into a Lease Agree-
ment with the Peace Corps of the
United States for the Camping Facili-
ties at Estate Mandahl, St. Thomas.
Act No. 2084-To Amend Act No.
1927, Approved April 18, 1967, To
Provide Guarantees for Mortgages and
for Other Purposes.
Act No. 2086-To Stipulate that the
Seventh Legislature of the Virgin Is-
lands shall meet in Regular Session
Commencing on January 22, 1968.
Act No. 2093-To Ratify Certain
Modifications of the Agreement Be-
tween the Government of the Virgin
Islands and Hess Oil Virgin Islands


Corporation, dated September 1, 1965,
as Amended and Supplemented.
Act No. 2212-To Regulate the
Practice of Optometry in the Virgin
Islands, and for Other Purposes.
Act No. 2213-To Amend Title 24
of the Virgin Islands Code Relating to
the Virgin Islands Wage Board, and
for Other Purposes.
Act No. 2221-To Amend 33 Virgin
Islands Code, Section 1102, Subsection
(b) to Increase Income Tax Reserve
from 3 percent to 4.5 percent for Pay-
ment of Tax Refunds.
Act No. 2225-To Establish a Spe-
cial Committee for the Designation
and Redesignation by Name of Public
Facilities in the Virgin Islands, and
for Other Purposes.
Act No. 2228-To Amend Section
772 of Title 22, Virgin Islands Code,
Relating to Nonresident Insurance
Agents and Brokers.
Act No. 2238-To Amend Title 3
of the Virgin Islands Code to Provide
for the Establishment of the Depart-
ment of Conservation and Cultural
Affairs, To Provide for the Reorga-
nization of the Government of the Vir-
gin Islands, and for Other Purposes.
Act No. 2240-To Amend Chapter
41 of Title 20, Virgin Islands Code, To
Add a New Section Relating to Motor-
cycles and Motor Scooters.
Act No. 2252-To Provide for the
Popular Election of the Boards of Elec-
tions for the Virgin Islands and for the
Virgin Islands Board of Education, and
for Other Purposes.
Act No. 2253-To Provide for the
Reapportionment of the Legislature of
the Virgin Islands, to Amend Certain
Provisions of Title 18, Virgin Islands
Code, and for Other Purposes.
Act No. 2258-To Provide for the
Conservation and Preservation of His-
toric and Cultural Assets of the Virgin
Islands, and for Other Purposes.
Act No. 2259-To Provide for the













I

I-


Girl Scout Week is observed with scouts taking over government positions for a day. Here
three girl scouts "preside" over the Virgin Islands Senate, a 15-man unicameral Legislature.


Licensing of Barbers and Beauticians
in the Virgin Islands, and for Other
Purposes.
Act No. 2272-To Amend Chapter
25, Title 3, of the Virgin Islands Code
by the Addition of a New Subchapter
XI (Personnel Training System), and
for Other Purposes.
Act No. 2279-To Amend Chapter
5, Title 23, of the Virgin Islands Code
Relating to the Control of Firearms
and Ammunition, and for Other
Purposes.
Act No. 2257-To Amend Title 18,
Virgin Islands Code, by Adding a
Chapter 2 Thereto, To Provide for an
Elected Washingtun Representative of
the People of the Virgin Islands, and
for Other Purposes.
Act No. 2283-To Amend the Provi-
sions of Chapter 1, Title 20, of the Vir-
gin Islands Code Relating to the Con-


struction of Private Roads and
Driveways.
Act No. 2287-To Amend the Provi-
sions of Subdivision (a) of Section 473
of Title 20 of the Virgin Islands Code
Relating to the Traffic Advisory and
Safety Committee.
Act No. 2294-To Amend the Provi-
sions of Act No. 986 (Bill No. 1920,
Approved March 26, 1963) To Grant
Occupants of Single-Family Units in
Emergency Housing Projects a First
Priority in the Purchase of Housing
Units, To Set Standards for the Sale
of Emergency Housing Units and for
Other Purposes.
Act No. 2295-To Authorize the Es-
tablishment of a Driver Education Pro-
gram, and for Other Purposes.
Act No. 2296-To Amend Title 14
of the Virgin Islands Code to Define


WW::~~~?~~ ~ .


L/








the Crime of Loitering and for Other
Purposes.
Act No. 2298-To Amend the Provi-
sions of Section 493 of Title 20 of the
Virgin Islands Code Relating to the
Operation of a Motor Vehicle While
in an Intoxicated Condition.
Act No. 2311-To Amend Certain
Provisions of Subchapters I, IV and VI
of Chapter 25, Title 3, Virgin Islands
Code (Career Personnel Service).
Act No. 2306-To Authorize the De-


apartment of Law to Host the Annual
Conference of the National Association
of Attorneys General in the Virgin
Islands During the Year 1969, and for
Other Purposes.
Act No. 2313-To Amend Certain
Provisions of Chapter 25 of Title 13,
Virgin Islands Code. (Pay Plan.)
Act No. 2315-To Amend Section
951, Title 11 of the Virgin Islands
Code, Relating to the Legal Rate of
Interest and for Other Purposes.












VIRGIN ISLANDS WATER

AND POWER AUTHORITY


Personnel: 271
The Virgin Islands Water and Pow-
er Authority was acquired by the gov-
ernment of the Virgin Islands on June
1, 1965, from the former Virgin Islands
Corporation, a federally owned corpo-
ration.
The Virgin Islands Water and Power
Authority manufactures and distributes
electricity on St. Thomas and St. Croix
islands. By means of submarine cables,
the island of St. John, Water Island,
and Hassel Island are furnished electric
power.
There are now two water distillation
plants on St. Thomas with a total
capacity of 1,250,000 gallons per day.
For St. Croix, bids were let in May
1967 for a 1-million-gallon-per-day
water desalting plant to be built in
conjunction with the Worthington
Steam Electric Plant. The successful
bidder was Stearns-Roger Corp. of


Denver, Colo. Construction of this unit
began in October 1967 and the plant
was completed and went into commer-
cial operation in May 1968. There are
still some modifications to be done on
this unit.
All water manufactured on both is-
lands is pumped into the facilities of
the public works department, who is
the authority's only customer, and then
sold to the general public. A total of
285.6 million gallons of water was pro-
duced during the year and 263.6 mil-
lion gallons sold to the public works
department for distribution.
There is a total of 18,300 electric
customers of whom 10,070 are in the
St. Thomas-St. John service area, and
8,230 in the St. Croix service area. The
increase in the numbers of customers is
approximately 1,708 over the past year.
The following is a list of electric
bills issued during fiscal years 1966,
1967 and 1968:


1966
St. St.
Thomas Croix


1967
St. St.
Thomas Croix


1968
St. St.
Thomas Croix


Residential. .......... 83, 218 63, 171 91,211 69, 788 99,423 76, 755
Commercial ......... 12, 234 12, 441 13,011 13, 679 14, 533 14,497
Large power ........ 984 863 1,329 1, 159 1,646 1,392


The total power production on St.
Croix was 65 million kilowatt-hours or
14.1 million kilowatt-hours higher than
1967. On St. Thomas, the total pro-


duction was 97.5 million kilowatt-
hours or 12.7 million kilowatt-hours
higher than last year.
The maximum peak demand on St.







































Virgin Islands water and power facilities at Krum Bay in St. Thomas. The islands presently
convert close to 5 million gallons of sea water to fresh water daily.


Thomas for the year was 16,300 kilo-
watts against last year's peak of 14,600
kilowatts. On St. Croix, the maximum
peak demand was 11,800 kilowatts
against the previous year peak of 9,550
kilowatts.
Following is a listing of present elec-
tric facilities now in operation on both
islands:
St. Thomas plant: Kilowatts
Unit No. 1 diesel........... 600
Unit No. 2 diesel........... 600
Unit No. 3 diesel........... 2, 500
Unit No. 4 diesel ........... 600
Unit No. 5 diesel ........... 750
Unit No. 6 diesel ........... 1, 250
Unit No. 7 diesel........... 2, 000
Unit No. 8 steam........... 3, 000
Unit No. 9 diesel........... 3, 000
Unit No. 10 steam........... 7,000

Total kilowatts available.. 21,300


St. Croix plant:


U
U
U
U
U
U
U
U
U
U
U


Kilowatts


nit No. 1 diesel ........... 429
nit No. 2 diesel ........... 234
nit No. 3 diesel ........... 248
nit No. 4 diesel........... 1,000
nit No. 5 diesel ........... 965
nit No. 6 diesel........... 750
Fnit No. 7 diesel........... 2,216
nit No. 8 diesel........... 2,400
nit No. 9 diesel........... 1,000
nit No. 10 steam........... 10, 000
Init No. 12 diesel........... 4,500

Total kilowatts available... 23, 742


A total of 41l new mercury vapor
street lights were installed during the
year in addition to gradually replacing
the old incandescent types that have
been in use for many years.
During the year, 3,464 new meters
were installed which includes new in-


L ~I~









stallations and changing out of large
numbers of old surface type meters.
About 75 miles of primary and sec-
ondary lines were constructed during
the year, 33 miles on St. Thomas and
42 miles on St. Croix.
Transformer capacity added to the
distribution system during the year
were 6,825 kilovolt-amperes to St.
Thomas and 3,500 kilovolt-amperes to
St. Croix.
Because of the large number of leaks,
the four Aqua-Chem evaporators were
out of service for several months for
complete retubing. The existing tubes
which were made of aluminum bronze
were replaced with copper nickel tubes.
While these evaporators were out of
service, a 12,000-gallon-per-day flash
type evaporator unit was rented from
Aqua-Chem Corp. to produce feed wa-
ter makeup.
A new and larger Westinghouse
evaporator body arrived on St. Thomas
on August 18, 1967, to replace the
existing one which was installed when
the water plant was constructed. The
old unit could not produce the guar-
anteed 1 million gallons per day.
The new unit has produced as much
as 1,180,000 gallons per day, and it is
expected that it will continue to pro-
duce the guaranteed capacity.
For St. Thomas, a $6.3 million con-
tract for a combination 2.5-million-
gallon-per-day desalting plant and a
15,000-kilowatt net steam generating
plant was awarded to Baldwin-Lima-
Hamilton Corp. of Philadelphia, Pa., a
subsidiary of Armour & Co. and Inter-
national General Electric Co. It is esti-
mated that both units would be ready
for commercial operation by Septem-
ber 1968.
A 2,000-kilowatt portable diesel elec-
tric generating unit was received in St.
Thomas on September 2, 1967, from
Worthing Corp. This is a skid unit and


was immediately assembled and placed
in operation within a few weeks. In
case of emergency, such as a hurricane,
this unit would be shipped to St. John
for operation until the crisis is over.
The 10,000-kilowatt Worthington
steam electric generation plant under
construction on St. Croix was placed
in commercial operation on Novem-
ber 30, 1967, under a crash program to
meet the electric demand of the island.
For the St. Croix plant, the Governing
Board authorized the purchase of a
4500-kilowatt Enterprise diesel general
unit. Construction of this unit was very
rapid and it was placed in operation in
June 1968. It was necessary to have this
diesel in service before the Worthing-
ton unit could be taken out of service
for final adjustments.
By Resolution No. 44, the Governing
Board authorized the Executive Direc-
tor to take bids for a 15,000-kilowatt
steam electric powerplant for the island
of St. Croix with provisions for future
addition of approximately 2/2 million
gallons per day sea water distillation
plant.
Bids for the 15,000-kilowatt steam
electric plant only, with provisions for
a future water plant, were opened on
February 13, 1968. The IGE Export
Division of General Electric Co. pre-
sented the lowest and best bid in the
amount of $3,740,536.00 with a com-
pletion date of 690 days after award of
the contract.
In March 1968 the firm of Jackson &
Moreland submitted a financial feasi-
bility of electric system expansion re-
port. The purpose of this report is to
determine the financial feasibility of
providing for expansion of the electric
power system in the Virgin Islands to
meet anticipated growth requirements
through fiscal 1971-72. This report
supersedes an earlier one submitted in
March 1967.
On April 19, 1968, the authority








offered for public sale $8.8 million
electric system bond anticipation
notes-1968. This is in accordance
with chapter 5 of title 30 of the Virgin
Islands Code, as amended. The Gov-
erning Board noted acceptance of the
low bid from Chase Manhattan Bank
at an annual interest rate of 420 per-
cent. The new notes will mature on
April 15, 1969.
Quotations were received from 12
insurance companies for group life in-
surance coverage for employees of the
authority. After carefully reviewing
these quotations, it was decided to ob-
tain the proposals submitted by Pilot
Life Insurance Co.
On August 17, 1967, the coverage
went into effect. The authority was
guaranteed the rate of $6 per $1,000
of coverage for a period of 2 years
from August 17, 1967, to August 17,
1969.
Bids for medical and hospital insur-
ance for the employees of the authority
was taken on November 17, 1967.
After evaluation and analysis of the
bids received from eight insurance
companies, the quotation submitted by
Pilot Life Insurance Co. was accepted.


The authority will pay the entire cost
of the employee premium. However,
if dependent coverage is desired, one-
half the cost will be paid by the au-
thority. The employee pays the other
half. The maximum cost to the author-
ity is approximately $35,000 per an-
num for 250 employees.
The St. Thomas Administrative
Office on the first floor of Building 18
in Sub Base was completely renovated.
The walls were paneled, floor tiled,
and a new ceiling with modem lights
installed. A glass enclosed computer
room was also installed to accommo-
date the NCR data processing equip-
ment.
The St. Croix Administrative Office
was also relocated from the old busi-
ness office building to a newly reno-
vated building across the yard.
In February the electronic data
processing equipment arrived, and was
installed about a week later. This is a
magnetic ledger system.
At present the equipment is posting
customers daily receipts and preparing
several thousand electric bills monthly.
The transferring of the billing from St.
Croix to St. Thomas is still in progress.












VIRGIN ISLANDS AIRPORT AND

INDUSTRIAL RESOURCES AGENCY


Personnel: 181


The Virgin Islands Airport and In-
dustrial Resources Agency was created
by act No. 1684 of the legislature, as
amended, and operates within the
Office of the Governor. During fiscal
1967-68, activities of the agency were
financed by operating revenues, appro-
equal to major mainland operations.
carried out by a staff of 170 employees.
St. Thomas Operations
Major operations on St. Thomas in-
cluded Harry S. Truman Airport, the
Submarine Base, Crown Bay Fill, and
the Antilles Airboats land-lease at the
Charlotte Amalie waterfront. Opera-
tions of these facilities was financed by
cash collections from operating reve-
nues totaling $698,901.87.
Harry S. Truman Airport saw a
record number of passengers, aircraft
landings, and cargo movements during
the year and collections from opera-
tions increased almost 32 percent over
the previous year. Collections amount-
ed to $473,211.12 during fiscal 1967-68
compared to $359,165.04 for the pre-
vious year. Increased rental income
from commercial tenants and hotels
contributed to this substantial gain.
Rental income totaled $270,039.83, up
almost 37 percent from the previous
year's total of $197,365.64.
A total of 503,732 passengers arrived
at Harry S. Truman Airport during the
year, 122,062 operations were recorded
and 8,511,487 pounds of cargo moved
through the terminal.


Operating Appropriation: $963,585

Major development projects at this
airport included inauguration of direct
service from Miami by Pan American
World Airways, increase of daily direct
flights from the mainland to a total of
six, opening of a branch of the Virgin
Islands National Bank, installation of
a telephone service center for oversea
and local calls, and initial steps for
preclearance services.
Other major St. Thomas facilities
were active with collections from the
submarine base and former Vicorp
properties amounting to $220,927.38
and initial phases of commercial devel-
opment at the Crown Bay fill produc-
ing $14,264.67.
St. Croix Operations
Operations and income from Alex-
ander Hamilton Airport increased sub-
stantially with airport collections
amounting to $187,151.22 during the
fiscal year 1967-68 and operations re-
corded by the Federal Aviation Agency
reached a total of 46,574. On St. Croix,
43,953 passengers were processed
through the U.S. customs preclearance
facilities as compared to 14,140 during
the previous year.
A total of $75,000 was transferred to
the special airport fund from the gen-
eral fund for airport operations.
Other Highlights of 1967-68
During the year, the Agency entered
into 87 lease agreements. Thirty-five of
these leases have been approved and









have obligated tenants for capital im-
provements to government-owned
properties. These improvements will
cost an estimated $3 million and, at
the end of lease terms, will become the
property of the Virgin Islands govern-
ment.
On March 12, 1968, an agreement
was reached with the Federal Aviation
Agency which will make it possible for
the Virgin Islands Airport and Indus-
trial Resources Agency to enter into
long-term leases with private investors
which provide for uninterrupted oc-
cupancy.
During the past year, the Army Re-


serve Building and land on St. Thomas
were transferred to the Virgin Islands
government.
Looking to the future, the agency
also was involved in presenting reports
to the public on the proposed new jet-
port at Long Point Site. The agency
believes that our citizens and our visi-
tors must have a safer, more attractive
and efficient facility and that larger
jets will increase this need. The agency
also endorsed the Governor's proposal
to establish a Virgin Islands Port Au-
thority to administer all aviation and
marine activities at an operating level
equal to major mainland operations.


The Harry S. Truman Airport in St. Thomas enlarged to take direct jet flights from the
mainland stretches behind Lindberg Bay. In the background is the campus of the College
of the Virgin Islands.












PUBLIC UTILITIES COMMISSION

Personnel: 2 Operating Appropriation: $41,120


The Virgin Islands Public Utilities
Commission continued, throughout the
fiscal year, in its efforts to conduct
thorough examinations of all utilities
subject to its regulations. It was a year
of vigorous commission action.
Shipping
In fiscal 1968, St. Thomas main-
tained its leadership as the leading
cruise ship port-of-call in the Carib-
bean with 301 vessels carrying 150,000
passengers to visit the island. Most of


the ships berth at the West Indian
Co.'s wharf so this active traffic was
reflected in greater income from fees
and wharfage.
In recent years, cargo movement
from the east coast has tended toward
containers which are transhipped into
roll-on, roll-off barges for deilvery to
neighboring islands. To increase dock
activities of the West Indian Co., ar-
rangements were made with a major
barge operator to use the company's
dock facilities. This move meshes with


,, .~~i-*i V ia -


a'--


Cruise ships line up at West Indies dock in St. Thomas to disgorge passengers. Over 250
ships come to the Virgin Islands each year, bringing hundreds of thousands of tourists.








the company's overall plans for con-
struction of additional warehousing
capacity on land adjacent to the dock.
Plans also include a new road system
to improve traffic flow in the dock area.
On August 24, 1967, the West Indian
Co., requested a rate increase on land-
ing and loading fees Consultants to the
commission examined the company's
accounts and found that records and
procedure were inadequate for rate
determination and recommended that
"despite limited available data * *
we are of the opinion that the request
for rate relief by the West Indian Co.
has not been supported and accord-
ingly, recommend that the application
be denied." Should the company accept
the suggested accounting outline sub-
mitted to it, and up-date its records
the commission may entertain a subse-
quent request.
The year saw continued orderly de-
velopment of the Christiansted, St.
Croix, docking facilities although more
warehouses and sheds, bonded and un-
bonded, are needed. Since there is no
single cargo handling contractor serv-
ing Christiansted, Island Transport,
and Florida Lines are the de facto
cargo handlers and their rates are on
file with the commission.
At the Frederiksted deep water pier
in St. Croix, where facilities are con-
sidered a utility, Cargo Services, Inc.,
told the commission that it is an "un-
tenable" position because, although it
is the successful bidder as cargo-handl-
ing contractor, it has no contract with
the government. The utility has peti-
tioned for a government ruling and the
matter is being expedited by the de-
partments of law and commerce.
Telephone Service
In August 1967 the commission
launched an investigation of the Virgin
Islands Telephone Corp. (Vitelco) ac-
tivities, rates, charges and services and


requested monthly reports. These re-
ports provide the commission with de-
tailed data on the corporation's finan-
cial situation and level of service per-
formance. They enable the commission
to monitor service on all three islands
and direct remedial action.
On January 17, 1968, the commis-
sion issued its first order of remedy set-
ting out minimum service standards on
dial-tone delay and operator's speed of
answer and directing Vitelco to change
central office equipment and adopt a
system of tones and announcements.
The order also called for specific traffic
engineering and technical studies to en-
able the commission to direct further
remedial action and for specific plans
for improvements in transmission qual-
ity, microwave cutoffs, personnel, and
other areas of concern.
Vitelco complied with the order and
there is continuing communication be-
tween the commission, its consultants,
and company executives so that im-
provements can be made through in-
formal procedures.
Studies showed that there is sufficient
line capacity and central office equip-
ment at Christiansted and Frederiksted
so that dial-tone delays should be at a
minimum. At the Charlotte Amalie ex-
change, an additional 1,000 lines will
be cut over early in fiscal 1969 which
will alleviate the dial-tone problem as
related to line capacity.
Commission action has assured suffi-
cient equipment to provide satisfactory
service and is directing attention to in-
plant operating problems. These prob-
lems can best be solved by Vitelco's
management but commission consult-
ants have been directed to assist on this
assignment.
Commission consultants were also
asked to study Vitelco's investment pro-
gram related to future demands and
the conclusion was reached that
Vitelco's stepped-up investments will









provide capacity to serve the booming
needs of the islands in the future.
During the year, a review of financial
statements indicated that no significant
reduction in local rates was feasible un-
der legal standards. However, a sub-
marine cable to the mainland was
scheduled to go into operation early in
the next fiscal year and a rate reduction
of 25 percent on long-distance calls was
filed with the FCC late in fiscal 1968.
Expansion of coinbox service was
scheduled for completion by the end of
fiscal 1969. Coinboxes in Charlotte
Amalie would be increased from 141
to 160; in Christiansted, from 43 to 70,
and in Frederiksted, from 29 to 40.
Vitelco's budget for 1968 called for
cutover of the coinbox telephones from
postpaid to prepaid.
Vicom
Virgin Isle Communications report-
ed a substantial increase in gross in-
come in 1967 with a total of $44,000
compared to $28,000 for 1966. Its
mobile services were expanded to in-
clude VHF radio-telephone service to
land and mobile stations in St.
Thomas, St. John, and St. Croix and
the British Virgin Islands; Marine
radio-telephone communications to


ship; telephone answering service for
subscribers in St. Croix, St. Thomas,
and the British Virgins and sales and
service.
On December 31, 1967, Her Maj-
esty's Government terminated Vicom's
license for VHF service to the British
Virgin Islands. However, loss of rev-
enues from this service were made up
by a 10-percent increase in St. Thomas
and St. John subscribers. Virgin Isles
Communication transferred its sales
and service division to Caribbean En-
gineering & Communications, limiting
its activities to radio-telephone com-
munications.
Passenger Bus Service
During fiscal 1968, Passenger Bus
Utility expanded service to meet grow-
ing demands. On St. Croix, additional
routes were established to serve the
Grove Place-Calquhoun area, the
Hess-Harvey developments, and from
Christiansted to the eastern end of the
island with weekend and holiday serv-
ice to Kramer's Park.
On St. Thomas, the Sub Base Bay
area transferred to the Virgin Islands
government is now serviced regularly
and additional rural service has been
added to the east-end area.













BOND ISSUE AND INTERIM FINANCING


Virgin Islands bonds and bond
anticipation notes continued to be fa-
vorably received in the national money
market. Financing provided in this
manner has enabled the government to
proceed with plans for five new schools,
three of which were completed and
utilized last year; expand and improve
older school facilities; to acquire land
and provide preliminary designing and
planning for two modern health cen-
ters; to build modern desalinization
plants for the conversion of sea water
to fresh water, an important step to-
ward stabilizing our fresh water sup-
ply; and to build new modern electric
plants toward the development of ade-
quate and stable power capacity.
At the beginning of the fiscal year
the government had outstanding
$5,020,000 in general obligation bonds,
$6,915,000 in general obligation bond
anticipation notes, and $4 million in
electric revenue bond anticipation
notes. The total outstanding debt was
$15,935,000.


On November 29, 1967, notices of
sale were issued for the second and
largest bond issue offered by the gov-
ernment up to the present time. The
issue was comprised of $6,915,000 gen-
eral obligation bonds for the following
purposes:
School systems. ............... $500, 000
New health centers........... 1, 000, 000
Water distribution systems .... 2, 815, 000
Water production systems..... 2, 600, 000
Total .. .... ........ 6, 915, 000
The proceeds of this sale were used
to retire the interim general obligation
notes outstanding on July 1, 1967.
Bids were received and opened in the
offices of Wainwright & Ramsey, Inc.,
New York City, on December 13, 1967,
at 11 a.m. Four bids were received. The
successful bidder for these 25-year
bonds was Blythe & Co., Inc., and
Smith, Barney & Co., Inc., and Asso-
ciates, bidding at a net interest cost of
4.87 percent. Other bids were as fol-
lows:


Bidder Rate Premium
(percent)

First National City Bank and the First Boston ................ 4. 8891 $221. 28
Halsey, Stuart, & Co., Inc., and Drexel Harriman Ripley, Inc. 4.9135 ......
The Chase Manhattan Bank, N.A. & Associates .............. 4. 9411 297. 50


All of the 1967 bonds arc dated De-
cember 1, 1967, and mature serially
each December 1, 1968, through 1992,
with semiannual interest payments due
each June 1 and December 1.


During the course of fiscal year 1968
the following new general obligation
bond anticipation notes were issued:
1. December 18, 1967-$4,555,000
purchased by the Chase Manhattan









Bank at an interest rate of 4 percent
for the following purposes:
Public school systems.......... $500, 000
College of the Virgin Islands.. 102, 000
Water distribution systems.... 1,053,000
Water production systems ..... 2, 900, 000

Total .............. 4, 555, 000
2. May 18, 1968-$2,298,000 for
public school systems purchased by the
Chase Manhattan Bank at interest rate
of 3.94 percent.
The above notes totaling $6,853,000
all mature on December 18, 1968.
In the area of revenue bond financ-


ing one large sale of $8,800,000 in elec-
tric revenue bond anticipation notes
took place on April 15, 1968. The notes
were purchased by the Chase Manhat-
tan Bank at an interest rate of 4.20
percent. The purpose of this sale was to
renew the earlier notes issued in 1967
in the principal amount of $4 million
and to provide additional financing of
$4,800,000 for electric power produc-
tion facilities.
In summary the status of bond fi-
nancing as of June 30, 1968, was as
follows


I. General obligation bond financing
A. Cumulative bond issues authorized by the legislature
Purpose Amount
New health centers ------_--------------------------- $2, 000, 000
School buildings and facilities----------- ----------------------- 7, 702, 000
Water production and distribution systems -----------------__ -_ 9, 368, 000
Total --- ------------------------------- 19, 070, 000
B. Bonds and bond anticipation notes issued

Purpose Bonds Notes Total

New health centers.......................... $2,000,000 ............ $2,000,000
School building and facilities................... 4, 700, 000 $2, 900, 000 7, 600, 000
Water production and distribution systems....... 5, 415, 000 3, 953, 000 9, 368, 000
Totals. ............................... 12, 115, 000 6, 853, 000 18, 968, 000


C. Balance outstanding against bond and note issues
Total bonds issued---------------------------- -- $12, 115, 000
Payments against mature principal-------------------------365, 000

Balance of outstanding principal bonds---------------------- 11,750, 000
Total outstanding bond anticipation -- -------------------- 6, 853, 000
Total ---------------------------------- 18,603,000

D. Relationship of authorized and incurred general obligation debt to legal debt limitation
under Public Law 88-180
Assessed valuation of taxable real property------------------- $197, 520, 096
Debt limitation (10 percent of aggregate assessed valuation of real prop-
erty in the Virgin Islands) -------- ------------------- 19, 752, 009. 60

General obligation debt authorized ----- ----------------- 19, 070, 000
Less bonds retired as of June 30, 1968 ---- 365, 000

Total------- ---------------------------- 18, 705,000.00
Balance available for new authorizations------------- 1, 047, 009. 60









II. Revenue bond financing

The legal limitation on revenue bond debt as of June 30, 1968, was $30 million as
defined in Public Law 88-180. At the end of June 1968 authorizations and issues under this
ceiling were as follows:
A. Authorizations
Purpose Amount
Electric power production facilities by the Virgin Islands Water and Power
Authority --------------------------------- $25, 000, 000
Housing and service facilities, College of the Virgin Islands -------------- 1, 661, 000

Total authorized -------------------------- 26, 661,000
Balance available for new authorization under June 30, 1968, ceiling ----- 3, 339, 000

Total --------------------------------------- ----- 30, 000, 000

B. Bond and bond anticipation notes issued

Of the $26,661,000 revenue bonds authorized only $8,800,000 in revenue bond debt had
been incurred by the end of June 1968. This was in the form of electric revenue bond
anticipation notes of the Virgin Islands Water and Power Authority for electric power
production facilities.
It was anticipated that the college bonds totaling $1,661,000 would be issued early in
fiscal year 1969.


324-471 0-8---3
















CONTROL OF PROCESSING

OF WOOLEN YARD GOODS


The ad hoc hearing board, set up
pursuant to section 504(a) of Title 33,
Virgin Islands Code, to recommend to
the Governor quotas to be established
for woolen yard goods in the various
classications reconvened during fiscal
1968. Control was implemented over
the processing of woven woolen yard
goods by imposition of quotas to limit


Many Virgin Islanders are employed in
woolen yard goods factories.


the flow of such foreign material into
the customs area of the United States.
Controls are maintained by the imposi-
tion of a 1-cent-per-yard tax within es-
tablished quotas and a 65-cent-per-
yard tax on excess over the quotas.
For the calendar year 1968, these
quotas (less 10 percent required re-
serve) were assigned:
Linear yards
Showerproof woolen cloth..... 2, 000, 000
Knitted, worsted, and/or
woolen cloth. .............. 800, 000
Woven and/or dyed and/or
finished woolen cloth...... 100,000
Thermal laminated and adhe-
sive bonded cloth.......... 100, 000

Total ................ 3,000, 000
Unused portions of quotas allotted
for calendar 1967 were carried over
into 1968. Total yardage each company
received by category follows:

Showerproof woolen cloth

Total quota allowed this year.. 2, 000, 000
Less 10 percent reserve....... -200,000

Net this year.......... 1,800,000
1967 carryover............... 1,175,585

Total ................ 2, 975, 585









Company apportionment:
Vitex Manufacturing Co.,
Ltd .................. 1,312, 083
1967 carryover ........... 600, 000

Net this year.......... 1,912,083
Kent Co., Inc............ 487, 917
1967 carryover........... 575,585

Total including carry-
over ............... 2,975,585

Knitted worsted and/or woolen cloth
Total quota allowed this year.. 800, 000
Less 10 percent reserve....... -80,000

Net this year.......... 720, 000

1967 carryover ............... 200, 000


Total including carry
over .............

Company apportionment:
Buccaneer Mills, Inc....
1967 carryover...........


Total including carry-
over ............... 920,000


Woven and/or dyed and/or finished
woolen cloth
Total quota allowed this year.. 100, 000
Less 10 percent reserve....... -10, 000

Net this year.......... 90, 000
1967 carryover............... 240, 000

Total including carry-
over ............... 330, 000


Company apportionment:
Amity International, Inc. .
Less 10 percent carryover.


100, 000
-10,000


Net this year.......... 90,000
1967 carryover.......... 240,000

Total including carry-


over ............... 330,000
Thermal laminated and adhesive bonded
920, 000 woolen yard goods
Total quota allowed this year.. 100, 000
720,000 Less 10 percent reserve. ....... -10,000
200,000 Net this year.......... 90,000


Company apportionment: un-
assigned .................. 90, 000












CONTROL OF MANUFACTURE

OF WATCHES


The most significant development
with respect to watch production in the
period July 1, 1967 to June 30, 1968
were (1) the upholding of the Virgin
Islands watch production tax law by
the courts, and (2) the assumption by
the Federal Government of the regula-
tion of the watch industry in the terri-
tories subject to the special section 301
provisions of the Tariff Act.
Litigation commenced in late 1965
by several watch companies attacking
the validity of the local law imposing
quotas on their production, culminated
with a decision in the spring of 1968
upholding the law. The U.S. Circuit
Court of Appeals for the Third Circuit
held that the law was not an illegal
export tax, but an excise tax which the
legislature could legitimately impose
on the manufacture of watches for the
purpose of discouraging overproduc-
tion. The Supreme Court refused to
review the lower court's decision.
Even before the decision was an-
nounced, however, the Congress had
enacted legislation, effective January
1, 1968, under the provisions of which
regulation of watch production in the
301 areas (the Virgin Islands and
Guam) was assumed at the Federal
level, through the Departments of
Interior and Commerce. Under reg-
ulations issued by these Federal de-
partments, the local department of
commerce continues to play an admin-
istrative role with respect to the watch
industry since it controls the issuance
of shipping permits to manufacturers


licensed under the terms of the Fed-
eral law.
Although a quota allocation system
is still in effect, the methods of com-
putation under the former local law
and the present Federal statute are
different. Under the former, the proce-
dure used was to grant a temporary
quota, an initial quota and an annual
quota allocation. Under existing proce-
dures, the initial allocation was based
upon 50 percent of watch movements
and parts assembled and shipped dur-
ing the first 10 months of 1967. At the
same time, any firm assembling less
than 15,000 units for the calendar year
would be ineligible for a quota in 1968.
The General Accounting Office au-
dited watch manufacture operations in
the Virgin Islands in late June. During
the calendar year 1967, watch move-
ments and parts were imported as fol-
lows: Japan, $6,585,169; Hong Kong,
$1,277,938; West Germany, $1,272,-
842; France, $1,185,447; Soviet
Union, $678,717; and Switzerland,
$106,776.
There are now 14 watch companies
operating in the Virgin Islands, three
on the island of St. Thomas, and 11 on
St. Croix. Four of these companies have
tax exemption. The 14 companies em-
ploy 800 persons and have a combined
annual payroll of $2,662,059.20. The
quota for 1968 is 4,208,750 watch
movements and parts. In fiscal 1968,
3,222,571 movements and parts were
exported to the United States for an









approximate value of $19,353,426. All
quotas granted are subject to possible
reduction or revocation.
A new regulation now in effect per-
mits the sale or transfer of a quota pro-
vided prior approval of the secretaries
of their delegates is secured, and pro-
vided the firm sold or transferred re-


mains in the business as a separate or
distinct entity. During this period, two
companies were sold.
The watch industry of the islands
provides year-round employment for
a majority of natives. A training pro-
gram where employees are sent abroad
is also in effect.


Close to 1,000 Virgin Islanders now work in watch assembly plants, a major industry in the
Virgin Islands.












OFFICE OF PUBLIC RELATIONS

AND INFORMATION


Personnel: 15


The office of public relations and
information has, as its primary re-
sponsibility, the publicizing of the Vir-
gin Islands on the U.S. mainland and
in other countries. In addition, it func-
tions as the public relations arm of the
Office of the Governor and the depart-
ments within the executive branch.
News, feature articles, and photo-
graphs about the islands are prepared
for release on the mainland through
the government's public relations firm
in New York and news, pictures, and
information concerning the executive
branch of the Virgin Islands govern-
ment are released to local and main-
land-based news media.
The office also provides assistance
and information to visiting editors,
writers, and photographers as well as
to important visiting dignitaries from
the United States and other countries.
Assistance and counsel is given to the
Governor's office in the preparation of
reports, speeches and additional re-
quired information including the Gov-
ernor's annual report to the Secretary
of the Interior.
The mainland public relations firm,
in addition to supervising the islands'
public relations efforts, also serves the
many Capitol Hill and Washington de-
partmental needs of the Virgin Islands
government.
During the fiscal year, the office was
directly involved in planning for the
National Governors' Conference, held


Operating Appropriation: $226,907

en route to and in the Virgin Islands
in October. The director and members
of his staff, supervised the communi-
cations arrangements aboard the SS
Independence, which carried 43 Gov-
ernors, their families and staffs to the
islands, and assumed responsibility for
the shipboard and on-islands press fa-
cilities for more than 160 national news
media representatives. An after-action
analysis of the publicity results of the
conference, prepared by the mainland
public relations firm showed more than
10,000 newspaper clippings received,
plus favorable articles in most of the
country's major magazines and exten-
sive coverage of the conference and
island activities over network TV and
radio. Evidence of the success of the
conference and the increased national
awareness was clearly indicated in the
sharp upsurge in inquiries received
about the islands, and in active tourist
arrivals.
Other major activities planned by
the office included a Virgin Islands
Day celebration in New York City,
where Governor Paiewonsky presided
over the changing of the name of Times
Square to "Virgin Islands Square" for
one day and participated in a concert,
dedication reception, and gift exchange
with the mayor of New York City.
The board of directors of "Discover
America", a private organization whose
members are executives of some of the
country's leading corporations, and
whose purpose is to promote travel in








the U.S.A., held their board meeting
in the Virgin Islands in January. Three
days of sightseeing and social events
planned by the public relations office
drew unanimous praise.
Over 452 news releases and 320 news
photographs were distributed to the is-
lands' news media and to off-islands in-
dividuals and agencies during the year.
Major articles about the islands, pre-
pared with the assistance of the office
and the mainland public relations
agency, appeared in the National Geo-
graphic, Ladies' Home Journal, Cos-
mopolitan, Time, Yachting, Holiday,
Modern Bride, Mademoiselle, Ameri-
can Girl, and House Beautiful. Hun-
dreds of syndicated articles appeared in
papers subscribing to the National Edi-


trial Association, King Features, As-
sociated Press, and United Press Inter-
national.
Television featured the islands on
NBC's "Today" show, and the "Won-
derful World of Golf" and all the major
radio networks carried islands features.
Many prominent and newsworthy
persons visited the islands, including
the daughter of President Johnson,
Lynda Robb, who honeymooned on St.
John and Secretary of the Interior,
Stewart Udall.
The large volume of free promo-
tional material and publicity published
about the islands is reflected in the
steadily increasing number of tourists
who visit each year.












OFFICE OF THE GOVERNMENT

SECRETARY


Personnel: 44


Major legislation affecting the insur-
ance and banking industries, two areas
of the office of the government secre-
tary, was enacted during this fiscal year
On March 29, 1968, the Governor
signed into law act No. 2126 related to
insurance and act No. 2127 which up-
dates the banking laws of the Virgin
Islands.
The insurance act was drafted fol-
lowing meetings with the commissioner
of insurance, the office of the attorney
general, Equity Publishing Corp., and
representatives of insurance companies
doing business in the Virgin Islands. It
is the opinion of the office of the attor-
ney general that this is a comprehensive
and practical statute which will regu-
late and foster the insurance industry,
yet will protect policyholders and the
public. It includes provisions for regis-
tration of nonresidents as brokers and
agents, licensing of surplus line brokers
and written examinations for those
wishing to qualify as agents, brokers,
solicitors, and adjusters. The new law
also increases the rate of premium taxes
by 2 percent.
Act 2127 provides for the first revi-
sion of the banking laws since 1949 and
resulted from concerted efforts of the
banking board of which the govern-
ment secretary is the chairman in co-
operation with the attorney general,
Equity Publishing Corp., and the finan-
cial community. New chapters were
added to regulate small loans and


Operating Appropriation: $390,249

pawnbrokers, to require disclosure of
finance charges; savings and loan as-
sociations and mergers and consolida-
tions. It also clearly defines the powers,
and the duties of the banking board.
Another law affecting the office is
act No. 2117 which exempts from re-
cording fees and boundary attests all
instruments of conveyance from or to
the United States and the Virgin Is-
land Governments. This solves ques-
tions which were frequently raised
about fees and stamp taxes on docu-
ments involving individuals and the
Federal or local governments.
Legislative action also transferred
the board of tax review from the office
of the government secretary to the de-
partment of property and procurement.
During this fiscal year, volume of
documents recorded in St. Thomas de-
creased but the revenues increased as
compared with the previous period. In
St. Croix, both the number of docu-
ments recorded and revenues collected
increased significantly. Passports,
trademarks and patents, notary public
commissions, alcohol control, and reg-
istration of trade names showed no in-
crease over fiscal 1966-67. New corpo-
rations continued to be registered but,
simultaneously, strict enforcement of
corporate laws resulted in liquidation
of many corporations. Primary reason
was nonpayment of franchise taxes.
On April 1, 1968, the second 3-year
reappraisal cycle of real property was








launched. The first cycle added more
than 1,200 parcels of land and 600 im-
provements to the tax rolls.
An IBM key punch machine is now
being installed in the tax assessor's of-
fice so that tax rolls will now be pre-
pared in the government secretary's
office rather than the department of
finance. This change will solve prob-
lems of coordinating, and supervising
this project.


As provided by the Organic Act, the
government secretary served as Acting
Governor of the Virgin Islands on
numerous occasions during this fiscal
year.
See appendix A for tables on: Assess-
ments and taxes; insurance fees col-
lected; rum produced; alcoholic bev-
erages exported; denatured alcohol
produced, and licenses issued and fees
collected.












DEPARTMENT OF EDUCATION


Personnel: 1,305


The fiscal year 1967-68 saw signifi-
cant progress in public education in
the Virgin Islands highlighted by an
8.52-percent growth in enrollment,
a 19-percent increase in operating
budget, an impressive increase in con-
struction of new schools and additional
classrooms and, for the first time, ade-
quate staffing in secondary schools ex-
cept in industrial arts.
The increased budget made it pos-
sible to acquire needed textbooks and
educational materials. In the area of
special education, a contract was
awarded for 16 mobile classrooms with
two classroom units each to provide
service to handicapped children. These
mobile classrooms will be in operation
when school starts this fall.
A critical shortage of elementary
teachers still exists, making it necessary
to employ nondegree people to fill
many vacancies. The department has
been successful in recruitment of quali-
fied staff from off-island sources.
Salary schedules and the rising cost
of living combined to create teacher
unrest and, shortly before January 1,
Virgin Island teachers became affili-
ated with the American Federation of
Teachers. Bargaining sessions with this
group started in early spring and con-
tinued through the school year, and
these sessions did result in settlement
of basic principles for contract agree-
ments for the 1968-69 school year.
Curriculum and Instruction
Several revisions in curriculum
courses were instituted and the school


Operating Appropriation: $8,673,002

board approved a new trimester course,
"introduction to business," which will
be offered at the ninth-grade level to
give students an overall view of busi-
ness practices. The board also ap-
proved a change of course name from
"business education" to "office occu-
pations." This renamed course will
cover bookkeeping, clerical, and steno-
graphic.
Adult basic education, a federally
supported program, continued to serve
U.S. citizens and resident-aliens with
2-hour sessions twice a week. The pro-
gram is for illiterates and underedu-
cated adults and offers reading, lan-
guage arts, arithmetic, and English.
The adult education program pro-
vides training for adults from grades
9 through 12 and, following a high
school equivalency test, a diploma is
awarded each student.
A joint teacher-training program be-
tween NYU and the College of the
Virgin Islands continued for the sec-
ond year with practice teaching under
the direction of three supervisors from
NYU. This project assists in recruiting
and training teachers who are residents
of the Virgin Islands.
Separation of secondary schools into
junior and senior high school levels and
introduction of a new program at the
lower level made it necessary to review
the promotion policy of 1963. A com-
mittee composed of principals, assist-
ant principals, and supervisors made
this study and copies of proposed pol-
icy have been submitted to the com-








missioner for review. If acceptable, the
new policy will be presented to the
school board for approval.
This year also saw completion of an
in-depth study of all courses with the
objective of strengthening programs in
each area. For the first time, the year
was marked by provision of complete


physics, chemistry, biology, and gen-
eral science labs in each senior high
school.
From October 6 through Novem-
ber 10, 1967, the secondary schools
served as training grounds for several
Peace Corps members who participated
in a 5-week practice teaching course.


Commissioner of Education crowns high school beauty queen as prelude to island-wide
beauty pageant finals.








Pupil Personnel Services
Pupil personnel specialists work
closely with teachers in helping each
student develop self-understanding,
orientation to school and society, and
ability to make realistic educational
and career choices. Services are pro-
vided by one director, one guidance co-
ordinator, one testing coordinator,
three attendance coordinators, one
social worker, and 16 guidance coun-
selors.
Health services are an important ele-
ment and, as of April 30, 1968, a total
of 6,965 pupils had been seen by nurses.
A total of 730 of these were referred
to the emergency rooms of hospitals
and clinic appointments made for
4,020. Increased demand for health
services resulted in appointment of a
full-time registered nurse to the Claude
O. Markoe School in Frederiksted, St.
Croix.


A school social worker was employed
to provide services to the public schools
on St. Croix and a total number of 78
cases were referred there and 18 on St.
Thomas.
For the first time, guidance services
were available at all three school
levels-elementary, junior high, and
senior high-although a personnel
shortage limited services at the ele-
mentary level to four schools.
Attendance services were provided
by two counselors in St. Croix and one
serving St. Thomas and St. John. These
counselors worked closely with the de-
partment of public safety and other
community agencies.
During the period from June 1967 to
January 1968, the specialists also ad-
ministered high school equivalency
tests to 461 applicants and awarded
certificates to 86 who passed. Eight cer-
tificates were awarded to veterans.


Children perform a traditional maypole dance in the main square in Christiansted, St. Croix.








As in the past, the office of pupil per-
sonnel services continued to administer
the territorial scholarship program and
a total of 205 scholarships was ap-
proved by the board of education un-
der this program. In addition, 16 spe-
cial legislative grants were approved.
Vocational and Technical Education
Under the administration of a new
state director appointed by the com-
missioner of education and the leader-
ship of the Virgin Islands Board for
Vocational Education, vocational,
technical, and industrial arts programs
were offered in six schools. In the St.
Thomas-St. John schools, a total of 558
students participated and the three St.
Croix schools served 265 students, in
courses in industrial arts including
basic metals, architectural drafting,
basic electricity, woodworking, needle-
craft, and mechanical drawing. Pro-
grams of a vocational-technical nature
included automotive mechanics, car-
pentry, electricity, masonry, plumbing,
electronics, home economics, agricul-
ture, business education, and hotel and
restaurant training. A total of 1,682
students received training in all of the
courses in the junior and senior high
schools.
The division of vocational and tech-
nical education also administers pro-
grams under the Manpower Develop-
ment and Training Act during the past
fiscal year, the division launched sev-
eral programs in cooperation with the
Virgin Islands Employment Security
Agency including courses in retail sales,
office clerical, farm equipment opera-
tions, maintenance electrician and cos-
metology, and 63 trainees participated.
Most of these men and women were
placed in jobs at the end of the
training.
The division also worked on indi-
vidual referral projects under the act
which sent trainees to Puerto Rico and


the United States to be trained as X-ray
technologists, orthopedic technicians,
arc welders, refrigeration mechanics,
autobody repairmen, and diesel
mechanics.
Currently, the division is planning
for manpower skilled centers for St.
Thomas and St. Croix. These centers
will house all manpower training pro-
grams on a full-time basis.
During the year ended June 30,
1968, the division also promoted and
administered adult programs. In April
of last year, 11 adults in St. Thomas re-
ceived certificates for completion of a
course in practical nursing education.
A similar program was scheduled to
start in St. Croix in July 1968. To meet
demands for adult training, the divi-
sion is starting a 6-week evening elec-
tronics program in St. Thomas and St.
Croix and others will be planned in the
future.
Division of Business
Fiscal 1967-68 was a year of transi-
tion for the business division with the
adoption of new budgetary controls
and establishment of a per pupil
budget. Both systems required mecha-
nization based on a rented IBM 6400
accounting machine. Three employees
were trained in programing, wiring
the panels and operation of this ma-
chine and, as a result, all work flow
charts, programing and system analysis
can now be accomplished by personnel
of this department.
Pupil Transportation
During the year just ended, school
buses transported a total of 3,594 stu-
dents daily, an increase of more than
30 percent over the daily total for the
previous year. Largest increase was in
St. Croix where the number of students
transported rose from a total of 2,257
to 2,758.
Opening of new schools in St.
Thomas and in St. Croix also involved








extensive adjustment of schedules, in-
creases in routes covered, and in num-
ber of buses required. In St. Croix, the
opening of the new Central High
School meant that transportation had
to be provided for virtually the entire
enrollment in upper secondary school
grades on that island.
During the final quarter of the school
year, uniformed attendants were
placed on all buses to enforce observ-
ance of traffic regulations and to moni-
tor student conduct.
School Lunch Program
Currently, the school lunch program
is a million dollar operation involving
35 schools and serving more than
1,890,000 well-balanced lunches a year.
This year, the school food service pro-
gram employed 197 workers and an ad-
ministrative staff of nine. Participation
increased 9 percent with 85 percent of
the students served compared to 75.6
percent during fiscal 1966-67.
This school year, the program
served an average of 11,122 lunches
daily, at no cost to the students. The
program received a total of 97,960
pounds of federally donated frozen
ground beef, roast beef, turkey and
chicken and purchased food in the
open market valued at more than
$200,000. Students served included
those in private and public schools and
in Headstart and Vista projects.
Vocational Rehabilitation
During this year, 265 persons were
receiving services or were involved in
the rehabilitation process while 55 per-
sons were successfully rehabilitated.
The Virgin Islands ranked eighth in
national rank by State in number of
rehabilitations per 100,000 population
in 1967.
The division employs a director, two
counselors, and a manager and super-
visor of each of the sheltered workshops
in St. Thomas and St. Croix. The work-


shop in St. Croix has 15 permanent
trainees producing salable items and
the St. Thomas workshop is providing
evaluation and training for 12 handi-
capped people. Two trainees of this
workshop were placed in jobs this year.
Plans were also started for advanced
stateside training for the supervisors
of both workshops.
Rehabilitation clients continue to re-
ceive services at the Rehabilitation
Center in Rio Piedras, Puerto Rico.
Eight Virgin Islanders have been treat-
ed at the Woodrow Wilson Rehabilita-
tion Center in Virginia and three
youngsters at stateside colleges. One St.
Thomas resident received special treat-
ment in New York.
During the fiscal year, the depart-
ment of health was asked for a voca-
tional rehabilitation counselor to work
in the clinic of the hospital and a co-
operative agreement was made with
the employment security agency and
with the cooperative area manpower
system program. The stateside compre-
hensive planning for vocational reha-
bilitation started a 2-year study of a
plan to coordinate all resources to serve
the handicapped. This study started in
September 1967 and will be completed
by June 1969.
There was a 75-percent Federal and
25-percent local funding ratio for ma-
jor activities and Federal financing
was, and continues to be, dependent on
the local program's meeting planning
and operational standards and demon-
strating thoroughness and profession-
alism in its program. The division will
continue to meet these standards and
will emphasize training for the young
mentally retarded and counseling and
training of youthful offenders.
Public Information Services
A bureau of public information serv-
ices financed under title V of the Ele-
mentary and Secondary Education Act
was created during the fiscal year. This








bureau prepared approximately 500
news releases and 99 percent were pub-
lished. It also created feature stories
for leading newspapers and magazines
on the mainland and launched an in-
ternal monthly publication, Virgin Is-
lands Schools, for school personnel.
The bureau prepared radio and TV
scripts and the director served as in-
terviewer in a series of telecasts en-
titled "Your Dollars Invested-What
Are Your Returns?"
During the Governors Conference
in October 1967, the director assisted
on public relations assignments and in-
terviewed several Governors on educa-
tional issues. The Bureau also devel-
oped programs for the chief State
school officers on their recent visit. The
director also narrated a slide presenta-
tion successfully used by the director
of personnel to recruit teachers.
Bureau of Public Libraries
Highlights of the year for the bureau
of public libraries and museums in-
cluded completion of plans for remod-
eling the Christiansted Public Library
and approval of plans for remodeling
the Frederiksted Public Library by the
U.S. Office of Education.
These projects are part of the pro-
gram of the Library Services and Con-
struction Act (LSCA) which also cov-
ered services to the following institu-
tions: Queen Louise and Corneiro
Homes; hospitals; Richmond Peniten-
tiary; insular training schools; youth
care center and sheltered workshops.
Under title IV-B; the St. Thomas Pub-
lic Library was designated a regional
library for service to the blind; and
partially sighted and 70 talking book
machines have been received. A collec-
tion of more than 170 titles on talking
books is available, as well as 18 titles
on magnetic tapes.
Other major events of the year in-
cluded a memorial gift of 120 current
best sellers presented by the family of


the late Henry "Chaffin" James and
donation of books, filmstrips, films, and
recordings valued at $8,860 by the firm
of Weston Woods.
The bureau completed work on a
Catalog of Microfilm 1967 which was
published in January 1968. This cata-
log lists documents dating from 1665
to 1967 available on film in the St.
Thomas Public Library. This year, too,
the St. Thomas Public Library was
designated an official depository for
selected government documents and its
photo-duplication laboratory added
new equipment. This laboratory pre-
pared a filmed copy of vital statistics
to the Washington office, streamlining
the old manual transcript process.

School Plant Facilities
In June 1967 the office of school
plant facilities was created, staffed by
a director and a clerk and responsible
for facilities and supervision of school
maintenance.
During its first year, this office super-
vised completion of three major school
construction projects-the Wayne
Aspinall Junior High School in St.
Thomas with 40 classrooms, the Cen-
tral High School in St. Croix with 42
classrooms and the New Nisky addi-
tion of 12 classrooms, a library, kitchen
and principal's office.
The office also took over a class-
room construction program for the
summer of 1967 which extended to the
three islands. In St. Croix, vocation
and industrial arts shops were convert-
ed into seven classrooms and two of-
fices were built for guidance counselors.
In St. John, a two-classroom building
was added at Benjamin Franklin
School and, in St. Thomas, a two-
classroom building was constructed at
Madison School. Two classrooms were
also added to the Robert Harrick Ele-
mentary School and three to the Jane
E. Tuitt Elementary School.








In addition to major construction
projects, repairs and renovations were
made to school buildings and grounds
at most schools and plans are underway
to fence all campuses to decrease
vandalism. Due to the increase in the
number of classrooms, the maintenance
staffs in St. Thomas and St. Croix
must be increased during the coming
fiscal year and additional trucks pro-
vided for both islands.
Federal Aid Programs
The department received a total of
$1,616,717 of grants-in-aid Federal
funds during the year, but late funding
delayed many programs and all were
not fully operative until after January
1,1968.
Largest single grant was $333,743
under ESEA, title I for a 6-week sum-
mer program, "Learn To Like a Book."
This program was implemented on all
three islands and involved 1,275 pupils
and 134 teachers. Results of this sec-
ond summer program were good. Also,
under ESEA, title I, the second phase
of an audiolingual beginning reading
project was continued and involved 18
first-grade teachers.
All funds allocated for ESEA title
II were used to buy books and refer-


ence materials and this effort was aug-
mented by using $25,000 from NDEA
title III funds.
Project Introspection, ESEA title
III, became operative and equipment
to develop the innovative materials pre-
scribed in the grant was procured. For
the handicapped, ESEA title VI-A and
Public Law 85-926 funders were used
for teacher-training institutes in special
education and to hire consultants to
inventory handicapped children and
recommend realistic programs.
Funds for adult basic education were
reduced but programs were continued
with the addition of local funds in the
amount of $20,000. Funds received
under title V, ESEA, were used for
employment of a director of informa-
tion services and a director of school
plant facilities.
Project Headstart continued to serve
approximately 500 children in both
summer and school year programs and
approximately 125 to 150 youths were
enrolled in the In-School Neighbor-
hood Youth Corps program.
See appendix B for tables on: School
enrollment; comparison of high school
graduates, and comparison of operat-
ing budget.











COLLEGE OF THE VIRGIN ISLANDS


Personnel: Teaching Faculty: 45
Administrative
Faculty: 19
Other Staff: 53

Fall enrollment of full-time students
at the college totaled 272 in 1967, a 19-
percent increase over the previous
year's enrollment. In addition, 1,145
part-time students were enrolled in the
division of continuing education, an in-
crease of 50 percent over the enroll-
ment a year ago. The full-time equiva-
lency is 600, up 30 percent over the
preceding academic year.
Highlight of the year was the com-
mencement ceremony on June 9, 1968,
when the college granted associate in
arts degrees to 41 students. An addi-
tional six students will receive degrees
upon completion of nursing education
requirements in August 1968. The com-
mencement also saw New York Uni-
versity award 13 bachelor of science
degrees in teacher education to Virgin
Islands students under a cooperative
program in which students complete 2
years at CVI, a third year at NYU, and
the senior year at CVI under supervi-
sion of NYU faculty.
Plans have now been completed for
expansion of the college to 4-year pro-
grams in liberal arts and teacher edu-
cation. The liberal arts curriculum will
offer majors in biology, chemistry, Eng-
lish, mathematics, Spanish, and the so-
cial sciences. The teacher education
program will prepare teachers for ele-
mentary and secondary schools. The
college will have its first juniors on
campus in the fall of 1968 and grant
its first baccalaureate degrees in June
1970.


Operating Appropriations: $1,300,000



The college will continue to offer
seven 2-year programs leading to as-
sociate in arts degrees with courses in
accounting, business administration,
construction technology, executive
secretarial studies, hotel and restau-
rant management, nursing, and police
science and administration. The police
science and administration program
was started this year. In this program,
the college works closely with the de-
partment of public safety to arrange
class schedules for students in St.
Thomas, St. Croix, and St. John.
Three significant academic confer-
ences were held during the fiscal year.
The first on "The Family in the Carib-
bean" attracted social science scholars
from the mainland and Caribbean
areas. "The Evolving Territorial
Status of the Virgin Islands" was the
subject of the second seminar con-
ducted by Prof. Roy C. Macridis, first
incumbent of the Morris P. deCastro
chair in government at Brandies Uni-
versity. The third conference was
devoted to aspects of marine archae-
ology in the Eastern Caribbean and
was sponsored by the Caribbean Re-
search Institute.
The institute, a division of the col-
lege, has expanded its activities to en-
courage research in the Caribbean
area and to serve as a central research
agency in the U.S. Virgin Islands serv-
ing the natural and social sciences and
the humanities. The institute operates
the ecological research station at


324-471 0-68--


























2


Students at the College of the Virgin Islands, in the school of hotel management, prepare
dinner as a part of their training.


Lameshur Bay, St. John, which under-
takes funded research on the marine
or terrestrial problems of the islands.
The institute is currently doing an ex-
tensive ecological survey of Anegada,
a study of the interrelationships of the
American and British Virgin Islands
and a project in maritime history.
During the fiscal year, the college
and the University of Connecticut re-
ceived a grant of $100,000 from the
U.S. Office of Education. The grant
will help underwrite an exchange of
faculty and administrative personnel,
assist in creating an undergraduate
marine science program and strengthen
existing program. The grant becomes
effective during the 1968-69 academic
year.
The college continued to adminis-
ter several Federal agencies. The State
technical services agency conducted
projects to serve local business and


industry including, an evening pro-
gram in landscape architecture, a
counseling program for the printing
industry and a workshop on ground-
handling of aircraft. Community serv-
ice projects provided under the col-
lege administrated title I of the
Higher Education Act covered work-
shops and two publications on the
alien worker and his family, a con-
ference on juvenile delinquency, and
seminars on comprehensive planning
in the islands.
The Virgin Islands Extension Serv-
ice, administered by the college and
based in St. Croix, offered cattle pro-
ducers and fruit and vegetable grow-
ers instruction on improved produc-
tion. It also offers home extension
services and 4-H activity.
Campus development was high-
lighted by virtual completion of new
residence halls which will house 160








students, faculty housing, and apart-
ments. The new library is scheduled
for completion in November 1968 and
plans are complete for the Nursing
Education building, next major unit
to be built under the college's master
building plan. A contract has been let
for final design of the Reichhold Cul-
tural Center. In March 1968, 50.22
acres of land, adjoining the original
St. Thomas campus and valued at
$429,000, was deeded to the college by
the U.S. Department of Health, Edu-
cation, and Welfare.
Currently, a study is being made on
development of the St. Croix campus


at Golden Grove to permit expansion
of programs there.
The college continued to attract out-
standing artists and lecturers for pro-
grams which were free to the com-
munity as well as to students.
A recent report on alumni indi-
cates the college's success in achieving
the goals set for it at the Governor's
Conference on Higher Education in
1961. Of the 84 graduates of 1965-
67, 55 have completed their educa-
tions in 24 different 4-year schools and
others are teaching or hold manage-
ment and secretarial positions in gov-
ment, business, and industry.












DEPARTMENT OF HEALTH


Personnel: 1,459

Reorganization and staffing of the
department offered great challenges to
the medical leadership of the islands
during fiscal 1968. The department also
responded to changes in preventive
medicine and medical care with shifts
in emphasis to keep the medical com-
munity abreast of international medical
research and action.
The department's budget has grown
tremendously during the past 6 years
but demand for services has kept pace.
Citizens of the Virgins Islands now
properly consider maintenance of good
health and treatment of diseases as
rights, not privileges.
Comprehensive Health Planning
The comprehensive health planning
program of the Virgin Islands became
a reality on April 1, 1968. Twelve days
later, approval was received on the
territorial project plan which had
been submitted to the Department
of Health, Education, and Welfare,
region III.
In November 1967 the Governor ap-
pointed members of the program's
council and two new members were
named during the fiscal year just
ended. Efforts are now underway to
recruit personnel and secure consult-
ants to study the total health status
of the islands. These studies will de-
termine planning priorities. In April
the director attended a national meet-
ing of directors of comprehensive
health planning. During the year, the
agency worked closely with the depart-
ment of social welfare and the depart-


Operating Appropriation: $8,734,841

ment of labor in a planning meeting
for the WIN project.
Bureau of Vital Records and Statis-
tical Services
The bureau performed the usual
services of registration of vital events,
the verification and certification of rec-
ords, and the collection of reports of
baptism, marriage, divorce, and adop-
tion records.
The acting director enrolled in a
graduate course in biostatistics at the
University of North Carolina. Upon
completion of this program, he will
become bureau director.
Measures were also taken to improve
efficiency. The 1967 data for the Na-
tional Vital Statistics Division in Wash-
ington was microfilmed and plans
made for all records of the Bureau to
be microfilmed in the near future. Fea-
sibility of using a punch card system
was also studied and discussed with the
deputy commissioner of health in
charge of data processing at the de-
partment of finance. A trainee, vital
records statistician, also received ad-
vanced training at the Data Processing
Laboratory, Research Triangle Park,
North Carolina.

Vital Statistics in the Virgin Islands
Population of the Virgin Islands as
of December 31, 1967, reached an esti-
mated all-time high of 54,545, up 7.2
percent from a year earlier. This total
included a population of 24,295 in St.
Croix; 1,545 in St. John, and 28,705
in St. Thomas.








The calendar year also saw live
births at a record level with 2,272 in-
fants born, an increase of 316 over
calendar 1966. Increases in number of
live births and population resulted in a
birth rate per 1,000 population of 41.7
in 1967 compared to 38.5 in 1966. Of
the total number of live births regis-
tered in the Virgin Islands, 40.8 per-
cent were to mothers born in the British
West Indies and 36.8 percent were to
fathers born in the British West Indies,
down from the previous year's per-
centages of 49 percent and 44.5 per-
cent, respectively.
The year 1967 was also marked by an
increase in illegitimate births to a total
of 1,060. Of this total, 723 or 68.2 per-
cent were to British West Indian
mothers and 594 or 56 percent to Brit-
ish West Indian fathers.
Number of deaths decreased in 1967,
the second calendar year of a falling
death rate. There were 373 deaths
recorded with 164 in St. Croix; six in
St. John, and 203 in St. Thomas or
15 less than in 1966. Of the total deaths
recorded, 40 were persons whose usual
place of residence was outside the Vir-
gin Islands. The decrease in deaths
and increase in population brought the
death rate per 1,000 population down
from 7.6 percent in 1966 to 6.8 percent
in 1967.
Number of fetal deaths was steady
in 1967 with a total of 72 compared
with 71 for 1966. Of the total, 48 were
to mothers born outside the Virgin
Islands and 30 of these were British
West Indians. Fetal death rate de-
creased from 36.3 in 1966 to 31.7 in
1967. The year 1967 saw 70 infant
deaths recorded, up 10 over 1966 but
the infant death rate increased just
0.1 percent per 1,000 live births during
the year.
(See Appendix C for table on vital
statistics.)


Division of Hospitals and Medical
Services
During fiscal 1968, more patients
were cared for on all three islands than
ever before. Only on St. Croix, how-
ever, was this increase matched by an
adequate expansion of facilities.
The year was marked by a survey of
needs on St. John and plans were
drawn and money appropriated for an
extensive modernization of the Cruz
Bay out-patient clinics.
In St. Thomas, lack of space at
Knud Hansen Memorial Hospital was
a handicap. A new annex was started
during the year and will house a pedi-
atric ward. This modern ward will re-
place the old ward in the hospital
which will free space for additional
adult beds. An out-patient clinic will
also be completed shortly.
During fiscal 1968, plans were blue-
printed and funds allocated for a hos-
pital expansion project including
doubling the X-ray department, tre-
bling the emergency room, additions to
the operating room, expansion and
modernization of obstetrics and the
newborn area, remodeling of the psy-
chiatric wing, and provision of a cen-
tral service and modern fire exits in
the wards.
In addition to hospital expansion,
procedures in the general business of-
fices were streamlined and collections
increased substantially. Medicare and
medicaid representatives provided
great help to business offices on both
islands on improvement in billing
procedures.
During the fiscal period, the Joint
Commission on Accreditation of Hos-
pitals accredited Knud Hansen Memo-
rial Hospital for 1 year. If the physical
plant improvements now underway are
completed, it seems probable the Com-
mission will grant the hospital a 3-year
accreditation period within the next
12 months.








A number of hospital construction
projects were completed at the Charles
Harwood Memorial Hospital in St.
Croix during the fiscal year just ended.
In December 1967 an enlarged, air-
conditioned emergency room including
four examining tables, spaces for a doc-
tor's office, medicine storage, and a
waiting room was completed. An ex-
tension of the pediatric service totaling
10 beds was also completed in late
1967.
On January 22 a new 30-bed addi-
tion was opened and a major remodel-
ing and reequipping of the radiology
department was started. This construc-
tion was completed later in the fiscal
year. The year also saw expansion of
office space for the nursing director and
administrator. Near the end of the
fiscal year, authority was given for con-
struction of a prefabricated building
for the storage of the 200-bed packaged



















4,


disaster hospital for St. Croix. This
building is on the grounds of Charles
Harwood Memorial Hospital and will
be stocked with disaster supplies before
the hurricane season.
In September 1967 a board-certi-
fied pathologist joined the staff which
meant the hospital could offer surgical
pathology, frozen sections and pap
smear analysis and give improved train-
ing to personnel and closer supervision
of laboratory services.
On April 5, 1968, the Joint Com-
mission on Hospital Accreditation field
representative toured the hospital and
recommended a 3-year accreditation
period.
Another highlight of the fiscal year
was a training program for ambulance
drivers and attendants directed by a
staff physician. Recruitment of suit-
able personnel in this area is still a
major problem.


Blood samples are taken in the islands' up-to-date hospital laboratory facilities.








Division of Public Health Services
Total budget for this Division for
fiscal 1968 was $1,729,302. Local funds
amounted to $892,414; Federal grants
accounted for $487,122 and matching
funds were $349,755. New staff mem-
bers added included a U.S. Public
Health advisor from the National
Communicable Disease Center, two
cardiologists, an assistant director of
public health nursing, a dental oral
surgeon, and one clerk. Prior to fiscal
1968, the U.S. Public Health advisor
assigned to Puerto Rico had also served
the Virgin Islands.
Division staff members participated
in several vital training programs dur-
ing the year. Public health nurses at-
tended a course in supervisory tech-
niques and two seminars were held on
tuberculosis control, one cosponsored
by the local Tuberculosis Association.
A physician and two nurses from the
division attended a course on tubercu-
losis control at Battery Hospital, Rome,
Ga., sponsored by the National Com-
municable Disease Center. Public
health nurses completed a course in
medical self-help. This course was
given in St. Croix to airport employees
and to nurses, policemen, and firemen
in St. Thomas.
An active recruitment drive by pub-
lic health nursing brought the total
staff to 41 public health nurses, one
practical nurse, and four nurses' aids.
There were only six vacant positions
at year's end. The year also was marked
by revision of the policy and procedure
manual for nurses and close coopera-
tion with the College of the Virgin
Islands in providing training for stu-
dents in the nursing program.
Dental health services also completed
successful training projects. An in-
service training project for four dental
assistants was proposed by the bureau
and sponsored by the University of


Puerto Rico School of Dentistry. A
special first aid training project for air-
port personnel was completed and the
health educator of St. Croix partici-
pated in general health education
programs.
The bureau's laboratories performed
services to the veterinary medicine,
hospitals, and sanitation service. A
total of 47,115 tests were completed
during fiscal 1968 compared to an es-
timated 35,000 the previous fiscal
period. In-service training for tech-
nicians improved the level of perform-
ance.
The year also saw community-wide
education programs on nutrition, crea-
tion of a diet manual for institutions,
and patient counseling in diabetic,
cardiac, and prenatal clinics.
The bureau administers programs on
venereal disease, heart, cancer, tuber-
culosis immunization and control, dia-
betes testing, and immunization for
other diseases. During the year, ven-
ereal disease increased and control
measures are now being developed on
an interisland basis. The program for
eliminating tuberculosis progressed
with completion of an analysis of the
tuberculosis registry and evaluation of
all patients on the registry. The dia-
betes detection drive resulted in screen-
ing of 1,389 persons with 442 diagnosed
as positive. Clinics were increased to
twice weekly due to the number of
diabetic patients.
Immunization clinics which now
provide services in all districts of the
Virgin Islands administered a total of
49,670 during fiscal 1968. These in-
cluded immunization for diphtheria,
pertussis, tetanus, poliomyelitis, small-
pox, and measles.
During the year, the home care serv-
ices were certified as the official agency
for home health services and, at year's
end, 112 people were receiving care.








Bureau of Environmental Health
The percentage of properties con-
nected to sewers in all three towns in-
creased during the year. In Charlotte
Amalie, 68 percent were connected;
Christiansted, 82 percent, and Frede-
riksted, 97 percent. The bureau con-
tinued to study the water supply with
nine samples collected weekly for bac-
teriological analysis from the potable
water systems of St. Thomas and St.
Croix. Results showed that all water
supply systems should be constantly
chlorinated.
Continuing inspections were also
made of abattoirs, pasteurization
plants, dairy farms and 303 food-
handling establishments in St. Thomas,
33 in St. John, and 125 in St. Croix.
The bureau provided regular pest
control services during the year with
space spraying to control sandflies and


mosquitoes in the towns of Charlotte
Amalie, Christiansted, Frederiksted,
and at the St. Croix Airport, and
Magens Bay, St. Thomas.
On February 28, 1968, the Secretary
of Interior approved the Virgin Islands
water quality standards, making the
islands the 21st standard approved
and, by year's end, only 38 State stand-
ards had been approved.
A 6-year, $18 million program to
solve water pollution problems was
advanced with a contract for final
plans for the Bethlehem Gut & Dia-
mond Distillery Interceptors and the
Krause Lagoon Treatment Plant.
In March 1968 the bureau nego-
tiated a contract with Engineering
Sciences, Inc., Arcadia Calif., for a
feasibility study and cost estimates on
possible reclamation and reuse of waste
water.


ANTICARIES-Leon Reovan displays a beautiful set of teeth as he sits in the dentist's
chair at Lockhart Elementary School, St. Thomas, where 300 pupils received self-applied
topical fluoride instruction and treatment.








Division of Mental Health
The Virgin Islands mental health
program directed its work in its 19th
year toward innovation which had been
part of its master plan. A dramatic
effort launched in the past fiscal year
was a community education program
featuring radio and television shows.
The division's publication filled a kit
titled "Patterns of Mental Health" and
work was started on a film called "The
Following Sea" which will be com-
pleted early in fiscal 1969.
In a drive to give leaders in the com-
munity who are close to the people
greater insight into mental health con-
cepts, the division conducted an in-
depth training program with the local
ministerial association. An experienced
clinical psychologist met with the min-
isters for 4 months to help them coun-
sel parishioners. The division plans to
continue this program and launch
similar projects with other professional
groups.
Another significant project of the
year was in art therapy. Fifteen emo-
tionally disturbed children met with
an art therapist 4 days a week.
In August 1967 a day-care program
was started to give followup service
to mental patients discharged from the
hospital. The group meets three times
a week with an occupational-therapist
and some former patients have been
placed in jobs.
During the year, the division experi-
mented with the use of volunteer help
and plans were made to expand this
program to reach a larger number of
children. The staff also participated
in in-service training for teachers, hos-
pital nurses, and students.
Special emphasis was placed on
mental retardation. Twelve retarded
students were seen for 3 hours a day
in ideal environment and, at the end
of this year, many had shown marked
improvement in socialization, verbali-


zation, muscular coordination, and
even in IQ. In the diagnostic center,
22 children went through a rigid diag-
nostic process followed by conferences.
Planning for the future was an in-
tegral part of the year's work and the
staff worked on plans for new mental
health facilities in the proposed health
centers. In addition, plans were
drafted in line with the Federal-State
partnership for three areas to be
stressed in fiscal 1969-social-emo-
tional problems of youth, alcoholism,
and alternatives to hospital care.
In the area of community develop-
ment, the division gave full support
to the Governor's Commission for
Human Resources with its executive
director acting as secretary to the com-
mission. The commission has become
a forum for an exchange of ideas
among the policymakers and, in many
instances, topics examined by the com-
mission have been taken over by indi-
vidual government and volunteer
agencies. These agencies have then
moved toward solutions of the prob-
lems.
Both in St. Thomas and St. Croix,
the division supported the local men-
tal health association. Courts of the
Virgin Islands continued to seek the
aid of the professional staff and the
year saw an increase in referrals of
persons who had committed crimes of
violence.
The year also saw the division
closely allied with the programs of
comprehensive health planning, voca-
tional rehabilitation planning, Alco-
holics Anonymous, Al-Anon, drug
control and interagency case confer-
ences and in providing leadership to
other Caribbean islands.
Bureau of Health Insurance and Med-
ical Assistance
This bureau was organized in 1966
'to administer the Federal medicaid








and medicare programs. During the
past year, the bureau's health insur-
ance program completed a resurvey
of two hospital providers in St. Croix,
a resurvey of a home health agency
under the division of public health
and a resurvey of an independent lab-
oratory in St. Thomas and started a
survey of medical facilities in St.
Thomas and St. John. These tasks were
undertaken to determine if medical fa-
cilities meet conditions of participa-
tion set by the Secretary of Health,
Education, and Welfare. All resurveys
indicated continued compliance with
these standards.
A major achievement of the year
was the improvement in the relation-
ship between the insurance company
that acts as the intermediary for pay-
ment of hospital charges and the car-
rier for payment of physicians claims
and the hospitals and doctors who
provided service.
The general goal of the medicaid
program is a single health care pro-
gram for all indigent eligible persons.
Coordination within the department
of health and with the department of
social welfare which is responsible for
determining eligibility and with other
health and community agencies is
vital to reach the goal. Coordination
is improving but, at year's end, hos-
pitals were still submitting bills for
May 1968 for validation. Therefore,
no final fiscal report could be made.
However, during the first 6 months
of the year, approximately 38,000
recipients received approximately
$426,584 worth of services.
Division of Maternal and Child
Health and Crippled Children
Service
During the fiscal year, this division
served the mothers and children of the
islands with health care of an im-
proved quality.


A highlight of the year was the addi-
tion of family planning services to our
maternity care program. Clinics are
now being held twice a month in St.
Thomas and twice a month in St.
Croix.
With support of the children and
youth project resources, additional
well-child conferences have been
scheduled in the district health cen-
ters and a weekly pediatric clinic and
a monthly well-child conference were
added for the economically disadvan-
taged community of Profit in St. Croix.
Daily followup clinics were established
in both St. Croix and St. Thomas and
one weekly followup clinic was started
in the Pearson Gardens housing
project.
School health services were strength-
ened this year by assigning two teams
on each island to do health screen-
ing, by developing bureau followup
teams and by a system of referral and
communication between screening and
followup teams. During the year, the
rate of completed followup services for
children screened in the well-child con-
ferences, the Headstart program and
in the schools as well as for children
referred by other agencies reached an
all-time high.
Dental health services conducted the
most effective attack in history against
one of the greatest public health prob-
lems of the children of these islands.
Using two mobile dental clinics pur-
chased with MCH and CC funds and
manned by three dentists and one hy-
gienist from the C and Y project, serv-
ices were provided to children of pre-
school age, to first and second graders
and to underprivileged youngsters.
The crippled children service's reg-
istry of children with handicaps has
grown. Using local hospitals and facili-
ties in the United States, children con-
fined to wheelchairs have become am-
bulatory, heart surgery has prolonged








lifespans and epileptics have been in-
tegrated into the mainstream.
A director of nursing was selected
during the past year and has organized
nursing services for mothers and chil-
dren to supplement the public health
nursing staff. A school health coordi-
nator was also named to coordinate
services within the department and to
work with the department of educa-
tion, parochial and private schools for
use of these services.
Other highlights of the year included
development of regulations for imple-
mentation of the school health law, ac-
tion with vocational rehabilitation to
use funds of both agencies for health
services to older children in the rehabil-
itation centers on the mainland, and
action to increase community aware-
ness and mobilize community resources.
Children and Youth Project
The children and youth project was
first funded March 1, 1967, and was
just 16 months old at the close of this
fiscal year. These months were spent in
recruitment of staff and ordering of
office and clinic equipment including
mobile units for St. Thomas and St.
Croix in medical, dental, and speech
and hearing. Quarters have been re-
novated in St. Thomas and work will
begin soon on similar quarters in St.
Croix.
Services have been on a limited scale
but in St. Croix, because of more suc-
cessful recruitment, the concept of serv-
ice on a comprehensive basis is in effect.
In general, children known to the proj-
ect are receiving the full service re-
quired for good health and those who
cannot be treated here are sent off-
island for help. The year also saw ex-
pansion of the project to bring more
services to low-income areas.
To date, almost 4,000 children and
adolescents of low-income families hav
been registered with the project and


more than one-third of this number
have received complete physical ex-
aminations. The project has also seen
140 children with diet problems and
counseling has been given, particularly
on problems of obesity among adole-
scents. In the field of nutrition, train-
ing has been given to VISTA kitchen
employees, meetings have been held for
foster parents, PTA's, Girl Scout
groups, school health personnel and the
nursing association.
Physical therapy equipment is still
limited but some home care was given
to children during the year and the
speech and hearing service was ex-
panded to help parents recognize diffi-
culties in their children.
Boards and Commissions
The board of medical commissioners
met four times during fiscal 1968 and
local board examinations were given
in June 1968 to 12 physicians. Tem-
porary licenses were recommended for
51 physicians employed by the govern-
ment of the Virgin Islands during the
year.
The board of dental examiners also
met four times during the year acting
on 72 requests for application forms
and information, with 27 applicants
completing applications, 25 taking the
examination, nine passing, three fail-
ing, one repeating the board, and one
repeating and passing. At year's end, 13
applicants were awaiting results of
their examinations. The written por-
tion is graded by the Council of the
National Board of Dental Examiners
of the American Dental Association
and council cooperation was excellent.
Board of Nurses Registration and
Nursing Education
The board met five times during the
year and work included a review of
drafts of the State board tests pool
examination. Also, during the year,
two licensing examinations were given








and 41 licenses issued to registered
nurses and 30 to practical nurses.
Seventy-one applications were proc-
essed and renewal registrations were
issued.
Board of Pharmacy
Two additional members were
named to the board by the Governor
during the year and, at the initial
meeting of the five-man board, new
officers were elected. Six candidates


were examined in June 1967 and re-
sults received this fiscal year. Three of
the six passed and were licensed. In
November 1967 four candidates were
tested and two passed and were sub-
sequently registered. In June 1968 one
of the failing candidates was reex-
amined but failed to pass. In accord-
ance with the Virgin Islands Code, the
board requested the commissioner of
health to issue one temporary license
during the year.











DEPARTMENT OF SOCIAL WELFARE


Personnel: 349


In fiscal 1968, the department of
social welfare made significant progress
in improving existing programs and
developing new programs to meet the
changing demands for a broad range
of social services and financial assist-
ance to individuals and families
throughout the islands. At the divi-
sion level, progress was reported in
several years.
The division of family services ad-
ministered programs of financial assist-
ance in all Federal categories and


Operating Appropriation: $2,520,086
handled locally funded emergency and
general aid grants. It also operated the
medicaid program under title XIX,
Social Security Act and special work
and training projects under title V of
the Economic Opportunity Act.
The child welfare division stressed
improved foster family care with a new
foster care unit directed by a district
supervisor. An additional government-
operated day care center on St. Thomas
was opened serving 35 children. High-
lights of the year for the division of


jii-

'P'P


Children at one of the islands' day care centers enjoy recreational activities.









-till
Um


Aspects of love and care in a typical foster family home in St. Thomas.


aging and special programs was the
opening of the new Queen Louise
Home for the Aged on St. Thomas
and initiation of a homemaker program
for the aged.
The department's programs of sum-
mer employment and scholarship
grants for graduate study have been
successful in providing an increasing
number of trained workers, and the
department, the Governor and the
legislature have worked together to
secure more equitable Federal partici-
pation in the Virgin Island public as-
sistance program.
Division of Family Services
During the fiscal year there was an
increase of 542 in the total number of
persons aided and expenditures in-
creased by $151,742 to a total of
$844,506. Most of this increase was
used for aid to dependent children.
For the year, the average payment to
persons being helped was $32.11. The
division was able to close 312 cases
during the year and 305 were opened.


Social Security Amendments of 1967
raised the ceiling of Federal financial
participation in the Virgin Islands pub-
lic assistance program annually from
$330,000 in 1967 to $425,000 in 1968;
$500,000 in 1969; $600,000 in 1970;
$700,000 in 1971 and $800,000 in
1972 and thereafter. This additional
aid will improve participation in ad-
ministrative costs only as the lower in-
dividual maximums in the territories
contained in the 1965 amendments
have been retained. Special limitations
impose serious privation upon the is-
lands and retard our efforts to provide
grants at the maximum subsistence
level.
Division of Child Welfare
Almost 3,000 children received help
from the division in fiscal 1968 includ-
ing casework services, foster family and
institutional care, training school pro-
grams, day care, special services and
cooperative court services including
adoption and probation services.
Services were provided for 988 chil-
dren in St. Croix; 1,193 children in St.








Thomas for a total of 21,181 during
the year, a substantial increase over
the previous year's total of 1,641. In
addition, cooperative and special serv-
ices were provided to 741 children dur-
ing fiscal 1968.
Division of Aging and Special Pro-
grams
Facilities operated by this division
assisted 330 older people during the
year. A total of 170 men and women
were cared for in the two residential
and nursing facilities, Queen Louise


Home for the Aged on St. Thomas and
the Herbert Grigg Home for the Aged
on St. Croix. Shelter care was provided
for 56 citizens in the Corneiro Home
on St. Thomas and the Aldershville
Home in St. Croix.
The division also launched a home-
maker service for the aged to provide
housekeeping services, personal care
and grooming and assistance on shop-
ping and meal preparation to the aged
in their own homes. Although the pro-
gram has only two homemakers, plans


Governor Paiewonsky visits with a resident of the Herbert Grigg Home for the Aged.
Islands have a comprehensive program for their senior citizens.








are underway to expand this vital
service during the coming year.
Other special programs operated by
the division include the sewing project
on St. John which produces garments
for residents of the homes for the aged
and uniforms for children from needy
families and followup casework to res-
idents returning from St. Elizabeths
Hospital in Washington, D.C. There
were three returnee patients during the
past year. The cancer program pro-


vides for referral to the Dr. I. Gonzalez
Martinez Hospital in Puerto Rico and
at year's end, 66 persons were receiv-
ing care under this program. The divi-
sion also provides a burial program for
indigents.
During fiscal 1968, the division
distributed more than 1 million
pounds of food through the surplus
commodities distribution program of
the U.S. Department of Agriculture.












DEPARTMENT OF COMMERCE


Personnel: 96


The department of commerce is a
major force in economic growth in the
Virgin Islands through its principal
divisions of visitors bureau, trade and
industry, and division of marine. The
year saw strong economic gains with
tourism, the islands' No. 1 industry,
reaching recordbreaking totals. More
than 813,000 tourists visited the Vir-
gin Islands, a 25-percent increase over
the 1966-67 total of approximately
639,000. Airline and cruise ship traffic
in all three major islands made sig-
nificant gains.


Operating Appropriations: $1,615,981

Other offices of the department
which do not have division status con-
tributed to the year's achievements.
These are the Virgin Islands Rum
Council, on-island public relations,
fishing and water sports promotion,
beautification council, industrial in-
centive board, and three off-island
centers.
The commissioner serves on the
watch quota and woolen yard goods
committees and the water and power
authority and, during the past fiscal
year, was executive director of the


Yacht Haven, St. Thomas. In the background is the famous port of Charlotte Amalie.


324-471 0-68--5








Virgin Islands aspect of the highly
successful Governors' Conference for
1967.
The department promoted the Vir-
gin Islands at key meetings during the
year including conventions of the
American Society of Travel Agents,
National Association of Travel Orga-
nizations, Association of State Plan-
ning & Development Agencies, and
others. Currently, plans are being made
for preconvention and postconvention
tours of the Virgin Islands in connec-
tion with the 1968 annual convention
of the American Society of Travel
Agents in San Juan.
On-Island Public Relations
Work for this division increased
sharply with a record number of visits
by influence leaders including travel
agents, travel and feature writers, re-
porters, public relations men, and ad-
vertisers. These important guests re-
ceived information, introductions, and
guidance. The division also provided
services to visiting dignitaries of new
Asian and African nations and to their
State department hosts.
During the fiscal year, both staff and
space in the head office in Charlotte
Amalie and the visitors bureau in
Christiansted were expanded.
Visitors Bureau
Cruise ship visits to the Virgin Is-
lands increased substantially during
fiscal 1968 with calls at St. Croix in-
creasing from 28 last year to 40 this
year and those at St. Thomas from
268 to 301. Cruise ship passengers vis-
iting St. Croix increased almost 100
percent-jumping from 7,848 in 1966-
67 to 15,782 in 1967-68. Cruise ship
passengers visiting St. Thomas showed
a significant increase from 115,058 the
past fiscal year to 149,599 for fiscal
1968. During the year, there were five
maiden voyages to each island and to
mark each voyage, ceremonies were


held aboard and gold plaques were
presented.
Air tourism also made impressive
gains with approximately 132,000
more arrivals recorded this year than
during the last fiscal year. St. Thomas
and St. John showed an increase from
400,475 during 1966-67 to 481,437 in
1967-68 and St. Croix tourist arrivals
were up from 115,820 to 166,700.
Dramatic growth was recorded by
Antilles Airboats which carried more
than 100,000 passengers in 1967-68.
Fiscal 1968-69 should see new rec-
ords in air tourism with additional air
service by Pan American Airways and
the possibility of services by other
carriers.
During fiscal 1968, the assistant com-
missioner made three important solici-
tation trips. One trip was designed to
further increase cruise ship business
and is expected to produce 60 more
cruise ship calls to Frederiksted in the
coming year, an increase of more than
50 percent. The newly appointed as-
sistant commissioner for St. Croix par-
ticipated in this trip.
The department initiated action re-
sulting in clarification of a customs rul-
ing whereby many foreign-flag vessels
are now planning to remain in the
Virgin Islands for more than 24 hours;
a big factor in stimulating cruise ship
traffic for the coming year.
Virgin Islands Information Center,
New York
For fiscal 1968, the center handled
a total of 90,549 inquiries, an increase
of 9,500 over the previous year and
distributed 560,000 pieces of literature,
more than 218 ahead of the preceding
period. The year was also marked by
appointment of a convention and group
travel representative assigned to the
center staff.
Special events in which the center
staff played major roles were the Gov-
ernor's Conference and Virgin Islands



















































Ships of all kinds fill the harbor at Yacht Haven in St. Thomas where luxury cruise liners
mingle with freighters from far distant ports and pleasure craft of every description.


Week in New York. The Governors
and members of their parties were en-
tertained at a "send-off" party in New
York and personnel from the center
manned information booths aboard
ship and assisted with press relations
on both the out-bound and in-bound
voyages.


Virgin Islands Information Center-
Washington
New emphasis was placed on attract-
ing group tours, small conventions and
preconvention and postconvention
trips during the year and the Wash-
ington office cooperated closely with
the New York Center, the San Juan








Convention Bureau, travel consultants
and travel agents. As a result, 14 meet-
ings have already been scheduled for
the coming year.
Fishing and Water Sports Promotion
This office promoted the U.S. Vir-
gin Islands as a water sports center
through stateside advertising and pub-
licity and cooperated with local diving,
fishing, and yachting groups in attract-
ing national and international conven-
tions and competitions.
The office sponsored the V.I. Game
Fishing Club team's trip to the Inter-
national Light Tackle Tournament
Association meet in Acapulco, Mexico,
and, as a result, the 1969 ILTTA
tournament will be held in the Virgin
Islands. Another highlight of the year
was the annual Underwater Society
of America convention held in St.
Thomas and attended by 400 members


including internationally famous ocean
scientists, archeologists, and engineers.
Two new marine concerns estab-
lished operations in the Virgin Islands
during the fiscal year just ended. Both
firms worked closely with the water
sports office.
Division of Trade and Industry
All economic indicators in the Vir-
gin Islands showed significant gains
during fiscal 1968, marking the seventh
consecutive year of expansion. New
records were set in tourism, manufac-
turing and sales, bank debits, income,
employment and living standards, elec-
trical energy consumption, gasoline
sales and in the value of imports and
exports over the previous fiscal year.
Total imports during the calendar
year 1967 were valued at $172,100,000
up $34,400,000 or 25 percent from the
year 1966. A total of $103 million rep-


-. ~* K
.4" 1


Pleasure craft of all types drop anchor in the placid waters off St. John. St. Thomas is in
the background.








resented imports from the United
States and the balance from foreign
countries. Exports increased 32 per-
cent, from $56,200,000 in calendar
1966 to $74,500,000 in 1967.
The department joined others in
protesting an increase in freight rates
asked by two steamship companies in
an action before the Federal Maritime
Commission. This successful action
saved the Virgin Islands an estimated
$500,000 since higher freight rates
would have been reflected in higher
prices on automobiles, trucks, steel,
steel tanks, paper products, and other
items.
The watch movements and parts in-
dustry also contributed to the economic
vigor of the islands with exports valued
at $19,353,000. Currently, there are 14
watch assembly plants operating in the
Virgin Islands. These plants employ


approximately 800 workers and have
annual payrolls of $2,662,059.
Promotional activity for trade and
industry was accelerated in fiscal 1968
and a total of 105 conferences were
held with prospective business inves-
tors. Twelve new businesses started op-
erations during the year and only seven
discontinued. During the period, ap-
proximately 2,000 letters were an-
swered and 10,000 pieces of literature
were distributed.
Virgin Islands Rum Council
Total rum sales were up 20 percent
in 1967, four times the growth shown
by total liquor sales. Although figures
on total shipments of Virgin Islands
rums to the United States during fiscal
1967-68 have not been compiled, there
is clear evidence that totals will exceed
1966-67 records by a considerable
margin.


Scuba diver enjoys the spectacular underwater world at Buck Island reef, St. Croix.
Scuba diver enjoys the spectacular underwater world at Buck Island reef, St. Croix.








Virgin Islands Beautification Council
The beautification program com-
pleted five major planting projects dur-
ing the year. The coordinated program
to remove junked cars proceeded, an
effective educational program involv-
ing poster, poetry, and scrapbook con-
tests was conducted, educational films
were distributed and work was started
on forming garden clubs in high schools
and junior high schools.
Preliminary work was completed on
an antilitter drive to be launched in the
fall of 1968 with evidence of wide com-
munity interest. Women volunteers are
being recruited to assist with the plant
nursery and summer students will be
trained by these volunteers.
Marine Division
Total gross income for the marine
division for the fiscal year ended June
30, 1968, was $472,047, up $4,626 from
the total for the comparable period a
year ago. The harbor service of all
three islands was greatly improved by
the addition of vital personnel and
equipment.
The division launched a successful
court action to collect past due mooring
fees and a regulation has been estab-


lished to prevent a vessel from using
public mooring facilities more than
once if the mooring fee is not paid.
Industrial Incentive Board
The dynamic growth of the economy
of the Virgin Islands during fiscal 1968
was paralleled by increased activity
within the industrial incentive board.
The industrial incentive program
was broadened under act, No. 2062 to
include commercial buildings and con-
dominiums as subjects of tax exemption
and the financial qualification in the
housing project category was lowered
from $100,000 ao $75,000. The pro-
gram was further clarified by several
legal rulings handed down during the
year.
See appendix D for tables on-
Comparison of Tourist
Expenditures.
Comparison of air traffic
passengers.
Comparison of cruise ship
passengers.
Distribution of wages and
employment.
Tax exempt business subsidy
payments.
Watch movements and parts
shipments.












DEPARTMENT OF AGRICULTURE


Personnel: 221 Full time
71 Part time

The fiscal year 1968 was marked by
changes in the agricultural picture of
the Virgin Islands and in the depart-
ment's programs. The year also saw
strengthening of the department
through increasing and filling of va-
cancies in the professional staff and
the further development of a high de-
gree of communication and under-
standing between the farmers and the
government.
New activities were added including
the grain sorghum program and the
tick eradication program. The sorghum
grain project is part of a search for a
practical crop for St. Croix and the
tick programs was undertaken to meet
an emergency after the dangerous par-
asite was discovered on a farm at the
western end of St. Croix. Combined ef-
forts of the department, the U.S. De-
partment of Agriculture, the U.S. Air
Force, and the responsiveness of the
seventh Legislature of the Virgin Is-
lands were successful in controlling the
tick situation. By the end of fiscal 1968,
approximately $250,000 in local funds
had been spent on the tick eradication
program.
Grain Sorghum Program
Concept of this program originated
with the department in its search for
a crop which could be extensively pro-
duced, consumed, or distributed in St.
Croix with a minimum of manage-
ment and marketing problems. The
crop must also be capable of mecha-
nized production. Sorghum grain was


Operating Appropriation: $1,951,657

selected to meet these standards. Late
arrival of a mechanical planter de-
layed the first planting but, at the
close of the fiscal year, more than 150
acres of grain sorghum of different
varieties were being tested.
This grain can be adapted to the
feeding of different species of livestock
and, if it can be produced successfully,
it can lower production costs on St.
Croix's livestock farms. It is also
adaptable to many soil and weather
conditions which means that hundreds
of idle acres could become productive.
Soil and Water Conservation Pro-
gram
This program is administered by the
board of supervisors, the Virgin Islands
Soil and Water Conservation Division,
and the U.S. Soil and Water Conserva-
tion District and has been highlighted
by many successful meetings sponsored
at the College of the Virgin Islands.
Under the unified agricultural con-
servation program for the Virgin
Islands, the following practices were
carried out during the year: brush
control, 2,351 acres; farm pond con-
struction, 14; irrigation pipelines, 1,734
feet; pasture planting, 80 acres;
troughs or tanks, three tanks; subsoil-
ing, 400 acres; farm pond renovating,
nine ponds; land clearing, 403 acres;
pipeline or livestock, 6,300 feet, and
wells, 11.
Marketing
The department's marketing service
was active in distributing both crops








and livestock. The discovery of the
African bont tick on some St. Croix
livestock farms led the U.S. Depart-
ment of Agriculture to recommend de-
population of these farms and, with
little leadtime, the marketing service
distributed 362 heads of cattle or
28,960 pounds of beef and 205 heads of
sheep or 7,544 pounds in St. Thomas
and St. Croix.
Crops distributed included tomato,
pepper, pineapple, cucumber, okra,
eggplant, mango, pumpkin, and ba-
nanas. Indications are that the mar-
keting service will have a modern cen-
ter ready for activities in the fall of
1968.
Abattoirs
Almost 6,000 head of livestock were
slaughtered in the St. Croix and St.
Thomas abattoirs during the fiscal year
just ended. The St. Croix abattoir will


soon be operating under Federal in-
spection having met the high standards
needed to qualify.
Land Preparation Service
Approximately 1,380 hours of plow-
ing, harrowing, banking, and bull-
dozing were provided by this service at
approximately one-third the usual cost
during fiscal year 1968.
Other Services
Citizens of the islands received
other important services during the
fiscal year. Forage choppers served
livestock farmers with 21,000 tons of
green chopped feed; 14,646 gallons of
molasses were procured for livestock
farmers and both products were made
available at 50 percent of the market
price. During this period, 285.7 tons
of emergency livestock grains were
also distributed on the 50 percent sub-


Under an intensified agricultural program on St. Croix, new crops are being grown to
replace the phased-out sugarcane industry.








sidy program. More than 10,000
dwarf coconut seedlings were brought
in and made available to citizens at
cost and 48 sows were bred by the
boars of our program and the baby
pigs were sold to farmers to upgrade
herds.
Division of Veterinary Service
Because fiscal 1968 was a period of
dry weather, and because of disease
preventive measures and strict regu-
lation of importation of animals, the
Virgin Islands have again been de-
clared a certified free area by the U.S.
Department of Agriculture for bovine
and porcine brucellosis, tuberculosis,
and scrapie of sheep.
This status is maintained through
testing of blood samples from both
iabattoirs and by collection of milk
samples from both dairy herds every


3 months and critical test and by an-
nual testing for brucellosis and tuber-
culosis.
Only animals from certified free
herds may be imported and no unproc-
essed meats can be brought into the
Virgin Islands. Two large shipments
from Denmark were confiscated and
incinerated during the year to pre-
vent introduction of foot-and-mouth
disease.
The bont tick was found in a small
area around Frederiksted and the ve-
terinary division has assisted in eradi-
cating this parasite. Work is, however,
directed by the Animal Health Di-
vision of the USDA. Owners have
benefited from the routine dippings
since cases of anaplasmosis and piro-
plasmosis, both tick-borne diseases,
have been reduced to practically zero.
Cases of hog cholera have also


Teenage volunteers help with the care and distribution of tropical plants as a part of the
islands' beautification program.








reached a new low since the Virgin Is-
lands have complied with recommen-
dations by eliminating use of vaccine
and by attempts to eliminate garbage
feeding of hogs. Abattoirs on both St.
Thomas and St. Croix have found in-
creasing numbers of cases of kidney
worms in swine. There is no treatment
for this disease so owners have been
advised to move pens to drained areas.
Incidence of other parasites remain
low and the islands remain free of
rabies. Artificial insemination of cattle
was carried on by owners although the
department bore a small part of the
expenses for this program. More funds
will be available through USDA in
the future for this aspect of modern
cattle production. Exportation of ani-
mals was low since increasing numbers
are slaughtered for local consumption.


Bureau of Recreation and Sports
Promotion
Bureau programs covered more ac-
tivities and served more participants
this fiscal year than ever before. The
bureau was reorganized and specific
duties were decentralized which was a
successful change.
During the past fiscal year, the bu-
reau gave financial aid to the basket-
ball federation for travel expenses to
Trinidad; to the softball federation
for travel to Santo Domingo; to the
Virgin Islanders' tennis competitors
for travel to Puerto Rico and to the
Crickett Association for expenses for a
visiting team from Barbados.
Activities directly sponsored by the
bureau in interisland championship
series were biddy and junior basket-


Public bathing facilities like this one at Sandy Point in St. Croix are provided for islanders'
enjoyment by the local department of recreation.








ball; class A and double A baseball;
track and field; crosscountry; table
games and Virgin Islanders and Puer-
to Rico professional annual series. The
program was expanded for children'


recreational programs, arts and crafts,
dance and music festival and PAL
softball. Clinics were conducted in
tennis, volleyball, arts and crafts, base-
ball, and basketball.












DEPARTMENT OF LABOR


Personnel: 72


Development, consolidation, and
strengthening of programs character-
ized fiscal 1967-68 for the department
of labor and highlights included a sur-
vey by Nelson Bortz, former Director,
Bureau of Labor Standards, U.S. De-
partment of Labor, and appropriations
making it possible to add a labor
economist to the staff.
Close cooperation with the College
of the Virgin Islands enabled both the
St. Croix and St. Thomas professional
staffs to take advantage of a full-
semester course in economics of labor.
In addition, regional U.S. labor offi-
cials conducted seminars in St. Croix
on Federal law and procedures.
Currently, a 5-year plan for improv-
ing the department is being prepared
and includes recommendation for im-
proved office quarters in St. Croix, re-
organization of the staff with a deputy
commissioner assigned to the division
of labor relations in St. Croix, division
status for statistical and accounting
and staff training including study
leaves of 1 year.
Division of Labor
During fiscal 1967-68, payroll in-
spections totaled 2,101, an increase of
465 over the preceding period. These
inspections showed that a total of
22,502 employees worked in businesses
covered and that back pay due and
paid amounted to $14,077. The in-
crease in inspections was one indicator
of a rise in activity in all areas of the
division-fair labor standards and


Operating Appropriations: $623,510.59

labor relations. More sophisticated in-
spection procedures and records now
insure more accurate statistics and
greater service to business and to labor.
Fifteen certifications to labor orga-
nizations were issued during fiscal 1968.
This number does not, however, ac-
curately reflect union activity during
the period, since a number of applica-
tions are made to and certifications
issued by the regional office of the Na-
tional Labor Relations Board in San
Juan which has jurisdiction in cases
where employers meet interstate com-
merce standards.
Unfair Labor Practice Cases
The year was marked by a decline
in filing of unfair labor practice
charges, a sign of improvement in la-
bor-management relations. Only 15
charges were filed and all were re-
solved informally.
Complaints filed under the resident
workers statute were also fewer than
the previous year. Under the alien
certification provisions of the Virgin
Islands Code, the department investi-
gates each application for alien labor
and can withhold certification where
resident labor is available. Department
records show that the majority of non-
resident employees are in the low-in-
come, unskilled classifications, many in
construction. The majority of white-
collar jobs are held by residents which
accounts for the small number of
charges under the replacement of non-
resident provisions of the statute.








For the first time in the history of
the department, a question of discri-
mination in employment on the basis
of race, sex, age, religion, color, or
ancestry arose. This was solved through
informal conferences and the com-
plaint was withdrawn.
Applications for Employment
This year, as in the past 2 fiscal
years, the department continued to
place residents in practically all job
classifications in private industry. This
action was due to a combination of
factors including administration of the
resident preference statutes and the re-
cruitment program.
Alien certification and granting tem-
porary work permits defines specific
responsibilities for the department of
labor and the employment security
acrenc-. Lack of coordination of ad-
ministrative procedures has resulted
in failure to follow Federal directives
and State laws. One of the failures
has been regulation of the inflow of
nonresidents only to the extent neces-
sary to supplement local labor.
Division of Apprenticeship and
Training
This year, 14 apprenticeship trainees
received certificates giving them jour-
neyman status, the largest number
since 1965 and, at the close of fiscal
1968, 100 apprentices are registered
and 25 of these are new. These stu-
dents are being trained in business firms
for such trades as carpentry, diesel
mechanics, auto mechanics, welding,
electricity, and machine shop work.
A major step for the division this
past year was the Governor's executive
order designating the apprenticeship
and training council as the State ap-
proving agency for veterans benefits
of apprenticeship training. The divi-
sion was also recognized by the Na-
tional Association of State & Terri-
torial Apprenticeship Directors and


received wider acceptance by employ-
ers for its programs.
A challenge has been the increased
demand for more trained workers in
the skilled trades and efforts are under-
way to enlarge programs, explore new
possibilities, promote wider participa-
tion in Federal and local programs and
increase employer support. During the
year, Job Corps trainees who had re-
ceived orientation in stateside training
centers were returning and registering
in apprenticeship programs.
Division of Veterans Affairs
This division performs all services
which any Veterans' Administration
performs with the exceptions of insur-
ance and accounting records. It aids in
employment, hospitalization, voca-
tional training, rehabilitation, and
other programs and has cooperated
with the department of finance in de-
veloping procedures for sending vet-
erans in emergency situations to the
Veterans' Hospital in Puerto Rico.
For the third year, work continued
on development of a meaningful guar-
anteed loan program for veterans and
two loans totaling $78,000 were ex-
tended by the Virgin Islands National
Bank. Steps have also been taken to
implement the resolution of the Sen-
ate of the Virgin Islands seeking estab-
lishment of a veterans' hospital here.
Workmen's Compensation
Total cost for workmen's compen-
sation during the year just ended was
$333,850, an increase of $14,711 over
the previous fiscal year. The total in-
cluded payments for total disability,
permanent partial disability, tempo-
rary total disability, death compensa-
tion, medical costs, and medical fees.
The number of fatal accidents in-
creased to seven this year. No claim
was filed for one and the remaining six
cost $39,627. Installment payments in
these cases extend for 40 months and









include payments to heirs in the United
States and British Virgin Islands, St.
Kitts, and Antigua.
An increased number of safety in-
spections were made for a total of
more than 5,000 and compliance with
safety directives has been good. Early
in 1968, Nelson Bortz, former Direc-
tor of the Bureau of Labor Standards,
U.S. Department of Labor, made rec-
ommendations for improving a number
of areas. As a result of his review and
recommendations, a number of safety
inspectors attended seminars on oc-
cupational and industrial chemicals in
Puerto Rico.
Legislation passed during the year
will also improve procedures by elimi-
nating the 3-day waiting period, in-
creasing medical and death benefits
and giving greater protection for em-
ployees working for uninsured em-
ployers.

Division of Recruitment
The recruitment Division, created
pursuant to act No. 1402, was directed
to institute a program to encourage
Virgin Islanders living aboard to return
permanently to the islands. To imple-
ment such a program would have re-
quired a mainland office, adequate
staff, funds for loans, grants and travel
and removal of barriers such as salary
differentials, competitive examinations


far from the job site and the housing
shortage.
Despite these obstacles, the program
brought 62 Virgin Islanders back from
New York, extended loans amounting
to $5,100 of which $2,514 has been re-
paid and provided employment for 127
who returned on their own. Of this
total, 66 were placed in government
positions and 61 in private industry.
The program did establish contact
between Virgin Islands at home and
abroad and this relationship should be
maintained. Funds for the continuation
of the division were not appropriated
in the 1968-69 budget but provision
has been made for a special assistant to
carry out some functions of the divi-
sion.
Virgin Islands Wage Board
During the year, the government
proposed and the legislature enacted
legislation significantly affecting the
board and its procedures. Membership
was increased from six to seven, one of
whom shall be a woman and the com-
missioner of labor became an ex-officio
member. Staggered 3-year terms give
some continuity.
The board's powers were increased
to permit wider areas of coverage in-
cluding systematic investigations per-
tinent to establishment of wage orders.
See appendix E for table on total
labor force.












VIRGIN ISLANDS EMPLOYMENT

SECURITY AGENCY


Personnel: 66


Work of the agency and its two
major divisions, the employment serv-
ice and the unemployment insurance
service, increased during the fiscal year
with total employment on the three is-
lands at approximately 27,000 an in-
crease of 986 positions in the local
economy. Activity in the new division
of reports and analysis also increased.
Unemployment Insurance Activities
During fiscal 1968, maximum bene-
fit rates were increased from $25 to $35
and employer taxes reduced from 2.1
to 1.5 percent. The year also saw an
increase of 11 percent in new claims
and claimants received the highest
benefits ever paid by the unemploy-
ment insurance program amounting to
$201,894 with a total of $193,437 under
the unemployment insurance laws and
$8,457 in Federal payments. The in-
crease of $75,398 over the previous
fiscal year reflected the higher benefit
rate with the average benefit check in-
creasing from $24 to $30.
Active employers on file increased
from 1,732 to 1,767 and the number of
new employers rose from 205 to 302
during the fiscal year. Both figures are
indicators of growth in the Virgin Is-
lands economy. Collection for the year
was under $1 million, reflecting the re-
duction in taxes although the impact
of the six-tenth of 1 percent reduction
will be more strongly shown in 1969
collections.
Payments to veterans increased from


Operating Appropriation: $499,425

$1,007 in fiscal 1967 to $6,895 and
payments to former Federal employees
rose from $1,332 to $1,562.
The unemployment insurance claims
office completed its move from Estate
Thomas to a larger, more centralized
location on Main Street which will
enable its staff to give veterans in-
depth information and greater assist-
ance with claims. Another significant
event of fiscal 1968 was legislative ac-
tion to remove the section of the un-
employment insurance which denied
the right to file, to persons under bond.
Employment Service
The Virgin Islands Employment
Service, through its three local offices,
continued to handle applications, test-
ing, counseling, referrals, placements,
training recommendations, and area
labor information. The agency was ac-
tive in recruiting for the Neighborhood
Youth Corps out-of-school project and
for the Job Corps. In cooperation with
the department of education, the
agency placed 85 persons in job train-
ing situations under the Manpower
Development Training Act and 43
completed their training during the
fiscal year.
A total of 161 young men and wom-
en from St. Thomas were referred to
Job Corps training centers in the
United States and an almost equal
number from St. Croix left for these
stateside centers.
During the year just ended, the






agency took the first step in creating
a stable labor supply source for the
Virgin Islands by processing applica-
tions for permanent entry from 10,000


foreign workers. In addition, it proc-
essed the required temporary docu-
ments for workers over the 10,000
level.













DEPARTMENT OF PUBLIC WORKS


Personnel:
Permanent: 689
Per Diem: 980

During the fiscal year the depart-
ment of public works substantially in-
creased its activities in providing the
basic services of street and road con-
struction and maintenance, provision
of water, maintenance of water and
sewer systems, construction and repair
of government buildings and operation
of the public cemeteries.
A total of $7,072,145 was obligated
during fiscal 1968 for basic services
compared to $6,297,227 for the pre-
vious fiscal year. A total of $3,968,962
was expended by the department on
capital improvement projects under
the matching funds program.
Road and Street Improvement
A total of 6.5 miles of roads and
streets was reconstructed and paved on
St. Thomas and 13.5 miles on St.
Croix. The final l 2-mile stretch of
the 8-mile Centerline Road on St. John
was reconstructed and paved and
streets and secondary roads on the
island were improved.
The program for all three islands
included widening, upgrading and
paving to accommodate heavier traffic
loads.
Street Cleaning and Garbage Re-
moval Service
The quantity of refuse collected and
disposed of almost doubled that of the
previous fiscal year. This increase was
due to extension of service into the
rural areas of the islands. During the


324-471 0--8--6


Operating Appropriation:
Special Projects:
Matching Funds:


$7,072,145
575,000
3,968,962


year, property was acquired near Cruz
Bay, St. John, for a refuse incinerator
and final plans were blueprinted for
an additional incinerator on St.
Thomas.

Water Supply
Average daily demand on fresh
water from the St. Thomas distribu-
tion systems increased 50 percent dur-
ing fiscal 1968, rising from 1 million
gallons to 1,500,000 gallons daily. Pro-
duction from the two distillation plants
was restricted because of repairs and
revisions and 180 million gallons of


Major road improvements throughout the
Virgin Islands are part of a stepped-up
local highway program.

77








water had to be barged from Puerto
Rico. At year's end, however, both
plants were in full production and the
new 2,500,000-gallon-per-day plant
will be in operation early in the next
fiscal year. Two 10% million gallon
reservoirs were added to St. Thomas
storage facilities, raising the reserve
storage from a 20- to a 25-day supply.
On St. Croix, the water supply was
increased by completion of a 1 million
gallon-per-day distillation plant. A
10%2 million gallon water reservoir
was built near Christiansted and a simi-
lar storage facility will be built near
Kings Hill. Two 1-million-gallon res-
ervoirs have been purchased. One will
be located in Christiansted and the
second in Frederiksted. Plans were
prepared and a Federal grant obtained
for complete modernization of the in-
adequate distribution system in
Frederiksted.
The water shortage during the year
reached a near-critical point since rain-
fall was approximately one-half the


normal precipitation. As a result, wells
on St. Croix went dry or became con-
taminated with sea water and it was
necessary to barge 17,160,400 gallons
of water from St. Thomas to Cancel
Bay and Cruz Bay on St. John.
Engineering, Design and Construc-
tion
A total of 1,913 building permits
valued at $48,068,900 were issued dur-
ing the year just ended compared to
1,501 permits at $33,700,000 value
during fiscal 1967.
Building by public works forces in-
cluded the fisheries laboratory and
nurses quarters on St. John, the Queen
Louise Home on St. Thomas, and the
public works offices and shops on St.
Croix. During the year, the design sec-
tion reviewed plans and specifications
for public and private housing projects
and completed design of the new post
office facility on St. John, reconstruc-
tion of Frederiksted Pier and school
additions and water pumping plants on
St. Croix.


New water storage tanks, capable of holding 10 million gallons of water each, stand next
to water desalting plant on St. Thomas to take converted sea water.













DEPARTMENT OF FINANCE


Personnel: 300


The department of finance, in its
role as collecting, disbursing, and prin-
cipal fiscal agency for the government
of the Virgin Islands, with broad and
specific powers granted to it under the
laws of the Virgin Islands, is affected
by every fiscal activity undertaken by
our government and every economic
movement in our islands.
In fiscal year 1968 as in fiscal year
1967, the upward trend in govern-
mental operations continued to show
steady and substantial increases in


Operating Appropriations: $2,060,363

revenues and in expenditures. This
trend was the result of the continuing
increase in social, economic and polit-
ical activity throughout the islands,
reflecting and requiring increased gov-
ernmental services.
Revenues collected in all funds in-
volved in the operations of the govern-
ment reached a total of $71,894,766.27
for the fiscal year ended June 30, 1968,
and recorded by fund groupings, as
follows:


Amount Percent

General fund .......................................... $43, 011,232. 64 59. 83
Matching fund and essential projects fund ................. 12, 682, 069. 63 17. 64
Special and other funds ................................ 16, 201,464.00 22.53
Total. .............. ....................... 71, 894, 766. 27 100. 00


Collections into the general fund,
which is the principal operating fund
of the government, were as follows:


T axes .................
Government operating
revenue . ... .. ..
Other Revenues........
Total ...........


$37, 176,992. 11
889,037.64
4,945,202.89
43,011,232.64


Collections into the matching fund
and essential projects fund, which are
the recipient funds for Federal internal
revenue taxes collected in the United
States on imports from the Virgin Is-
lands, were as follows:
Internal revenue returns. $12,367, 772.49
Interest on bank bal-
ances ................ 302, 730.85
Refunds ............... 11,566, 29
Total ........... 12, 682, 069. 63


Collections into the special and
other funds (most of the trust and
deposit funds and certain enterprise
and revolving funds: e.g., the Virgin
Islands lottery fund and the govern-
ment insurance fund, are excluded be-
cause they have no direct bearing on
the general operations of the govern-
ment as such) presented the following:
Taxes ................. $6, 562,556.87
Government operating in-
come ................. 1,080,373.73
Federal grants-in-aid .... 4, 903,532. 16
Other revenues.......... 3,655, 001. 24
Total .......... 16, 201,464. 00
1 This item includes $5,935,636.72 of taxes
held in escrow, a portion of which will con-
sequently be transferred to the general fund
to be available for appropriations. The rest
will be available for subsidies.









Bond anticipation notes sold by the
government of the Virgin Islands in
fiscal year 1968 amounted to $6,853,-
000. As of June 30, 1968, the govern-
ment had borrowed, by this means,
over the last 4 years a total of
$18,968,000 for the following pur-
poses:
Schools ................... $7, 498, 000
Hospitals .................... 2,000, 000
Water systems expansion..... 2, 808,000
Hospitals ................... 2,000,000
Power and water desalinization
facilities* ................ 6,560, 000
College of the Virgin Islands. 102, 000
Total ............... 18,968,000
*Funds were paid over to and expended
by the Virgin Islands Water and Power
Authority.
The ceiling on such borrowings has
been set by the U.S. Congress (Public
Law 88-180) at 10 percent of the


aggregate assessed valuation of taxable
real property in the Virgin Islands.
This valuation amounted to $197,-
520,096 as of December 31, 1967.
The following information shows a
comparison of the ceiling with local
authorizations and actual borrowings:
Ceiling (10 percent of
$197,210,096) .......... $19,752,009
Authorizations (local stat-
utes) ................. 19,070,000

Actual borrowings.......... 18, 968, 000
Less bonds redeemed....... 365, 000

Total .............. 18, 603,000
Total expenditures, excluding inter-
and intra-fund transfers, for all funds
connected with the operations of the
government, amounted to $80,856,031.
These are shown by the grouping as
follows:


Amount Percent

General fund ............................................. $41,676,755 51.54
M watching fund ............................................. 5, 792, 701 7. 16
Essential projects fund ...................................... 45, 037 .06
Special and other funds ..................................... 33, 341,538 41.24
Total................................. ............ 80,856,031 100.00

Total expenditures detailed by various departments and agencies of the
Government during fiscal year 1968, are as follows:

Amount Percent


Legislature, electoral boards, and municipal courts of the Virgin
Islands...................................................
H health ... ............................... ... .............
Education ...............................................
Social w elfare...............................................
Public safety................................................
Public works................................................
Agriculture and recreation ...................................
Labor....................................................
Housing and urban renewal .................................
C om m erce ................................................
Executive and administrative departments and agencies..........


$1,248,586
11,426,853
9, 608, 697
3, 126,324
2, 399,095
11,868,645
2, 123,699
359,093
2,478,262
2, 094, 550
34, 122, 227


1.54
14. 13
11.88
3.87
2.97
14.68
2.63
.44
3.07
2.59
42.20


Total............................................... 80,856,031 100.00

Note.-See app. F for tables on-
Government operating revenues.
Government operating expenditures.
Comparative statement of revenues and receipts.
Comparative statement of expenses.
Comparative statement of operating revenues and loans.
Comparative statement of net expenditures.











OFFICE OF THE

DIRECTOR OF THE BUDGET


Personnel: 12


The government continued to face
its responsibility for expanding es-
sential public services and economic
development within the limits of
available resources. Recordbreaking
budgets approximating $55 million in
appropriations were projected during
the year for general governmental op-
erations and some capital improve-
ments. Major capital projects were
financed by the issuance of long-term
general obligation bonds and interim
bond anticipation notes.
Revenue collections from taxes and
other local sources reached an alltime
high of $43,955,182 in fiscal 1968 but
cost of government kept pace and
strict controls were exercised over the
release of budgeted funds. Operating
and special purpose budget appro-
priations totaling $47,358,725 pro-
vided for improvement of essential
health, educational, public safety and
social welfare programs and normal
operational costs.
Direct appropriations of $7,467,772
were made from the internal revenue
matching fund for capital improve-
ments including housing units on St.
Thomas and St. Croix and essential
roadbuilding and water and sewer
construction.
The largest single issues of general
obligation bonds and revenue bond
anticipation notes were sold during
fiscal year 1968. Both issues were well
received in the money markets in the
United States. General obligation
bonds in the amount of $6,915,000


Operating Appropriations: $112,939

were sold to finance schools, hospitals,
and water systems, in December 1967.
The sale of $8,800,000 in revenue bond
anticipation notes for electric systems
took place in April 1968.
As a result of strict control over the
release of funds and with the coopera-
tion of operating agencies, there is a
preliminary indication of a surplus bal-
ance of $2,500,000 being available at
the end of June for carryover into the
first crucial months of fiscal 1969. Fol-
lowing is a summary of the general
budgetary data for the fiscal year just
ended:


Revenues:
Surplus cash balance
July 1, 1967........
Revenues collected fiscal
year 1968...........
Contribution from
matching fund fiscal
year 1968.... ......


$2,692,830
43, 955, 182

4,900,000


Total funds avail-
able .......... 51,548,012

Appropriations:
Operating and special
appropriations ...... 47, 358, 724
Prior appropriations
available until ex-
pended ............. 4,688,784
Reappropriation of cer-
tain projects......... 453, 811
Total appropria-
tions ........... 52,501,319
Allotments:
Total allotments issued
against authorized ap-
propriations ........ 49,414,669
Unallotted appropria-
tions ............... 3,086, 650

Total appropria-
tions ........... 52,501,319

81









The Governor's budget proposal for
fiscal 1969 called for $49,967,423 for
operations and special purposes and
$12,500,000 for capital improvements.
These proposals were related to es-
timated government receipts and to
receipts into the internal revenue
matching fund and were in keeping
with policies precluding continuation
of contributions from the matching
fund for operational costs. All es-
timated matching fund receipts were
allocated for capital improvements.
The budget passed by the legislature
totaled $52,005,302 with the largest
share or approximately 19 percent ear-
marked for the department of health.
The department of education received
18.15 percent and the department of
public works, 11.91 percent. An im-
portant feature of the operating budg-
et for fiscal year 1969 is the provision
of a lump-sum appropriation for im-
plementation of a new pay plan which
will become effective July 1, 1969.
Appropriations from the matching
fund budget of $12,963,000 are sum-
marized as follows:


Acquisition of former Federal
land and properties......
Payment of long-term and
short-term debt...........
Housing ...................
R oads .....................
Urban renewal...........
Construction of health cen-
ters .....................
Additions and improvements
to hospital and health
buildings ................
Airport improvements.......
Road and construction equip-
m ent ....................
Salt water and sewage sys-
tem s ................... .
Potable water systems.......
Acquisition and repairs:
Government buildings
and structures.......
Construction of class-
room s ............


$1, 157,070
650, 000
1,243,700
1,982, 000
100, 000
4,100,000

120, 000
902,500
575,000
300, 000
252,000

364,530
125,000


Sewage improvements....... 565, 000
Erection of agricultural
buildings ............... 150, 000
Miscellaneous .............. 376, 200
Total .............. 12,963,000
In January 1968, a new source of
revenue was opened to the Virgin Is-
lands when the oil quota granted to
the Hess Oil Virgin Island Corp. went
into effect. This quota agreement pro-
vides for the payment of a royalty of
$7,500 per day which is expected to
yield almost $3 million a year to the
Government. Funds realized in royal-
ties will be deposited into a conserva-
tion fund and used for conservation,
beautification, recreation, and other
projects specifically designated in ap-
proved legislation.
The Budget Office continued to re-
view audit reports made by the Comp-
troller and to serve as liaison between
the Comptroller and various depart-
ments. The year saw marked improve-
ment in the promptness of responses to
the audits and some improvement in
the follow-up system.
Plans were launched during fiscal
1968 to enlarge the Budget Office to
include management and organiza-
tion staffing, financial management
staffing and a program for coordinat-
ing federal programs.
The Budget Office participated in
the coordination and review of data
related to the comprehensive survey of
the Government Merit System com-
pleted last year. This survey resulted
in legislation revising and moderniz-
ing the system.
See appendix G for table on operat-
ing and special appropriation of the
departments and agencies.












DEPARTMENT OF HOUSING

AND COMMUNITY RENEWAL


Personnel: 49


At year's end, there were more than
2,000 units of housing in the planning
and development stages in the low-
rent housing program and the Virgin
Islands government's housing pro-
gram. The year also saw exploration
of new financing methods for govern-
ment housing construction which is
expected to provide an even greater
dramatic housing upsurge in the com-
ing year.
A second significant event of fiscal
1968 was the department's program
to enable eligible residents of low mod-
erate incomes to buy their own homes
on reasonable terms.
Emergency Housing Program
Ninety-five families were housed
under this program in the year ended
June 30, 1968. Of this total, 44 fami-
lies representing 205 people were
housed in St. Thomas and 51 families
representing 219 people in St. Croix;
1,258 applications for emergency
housing were filed-520 in St. Thom-
as and 738 in St. Croix-and at year's
end 2,803 applications were on file
with 1,350 in St. Thomas and 1,453
in St. Croix. At the end of the fiscal
year, 30 units were under construction
in St. Thomas and 28 units in St.
Croix.
Homestead and Home Loan Program
This program covers five areas-
homestead, home loan, cistern loan,


Operating Appropriations: $936,133

veterans' loans and sale of emergency
housing single family units.
Under the homestead program, 39
parcels of homestead land were allo-
cated during the fiscal year. Selling
price of these plots totaled $9,377 and
16,708 acres of land were involved.
Twenty-five deeds of conveyance were
issued during the fiscal year for prop-
erty sold at a value of $16,364 and 12
waivers were executed to enable
homesteaders to obtain mortgages for
home construction loans to transfer
title for home construction. There
were 868 homestead land applications
on file at year's end.
The home loan program approved
seven loans during the year and granted
three installments on loans approved
during fiscal 1967. Loans amounted to
$72,000 and, on June 30, 1968, there
were 25 applications on file for home
constructing and improvement loans
totalling $221,800.
The year saw three applications for
cistern loans processed and two install-
ments granted on previously-approved
loans with a total of $4,000 including
principal and interest was $5,103.71.
Initial allotment for the veterans
housing loan program was $50,000
and an additional $50,000 was made
available during the fiscal year. Dur-
ing the year, 20 loans amounting to
$100,000 were approved and 10 ap-
plications were on file amounting to
$50,000.








Certificates of eligibility were issued
to 17 families who had occupied single-
family emergency housing units for 1
year or more and were willing and
able to buy their units. One purchaser
completed payment for his unit and
received fee simple title. As a result of
an action filed in district court by the
Attorney General to terminate trust
and quiet title to lot No. 9C, hospital
ground, title was vested in the govern-
ment of the Virgin Islands. This ac-
tion made four houses available to
families who have occupied them for
several years.
Community Development Programs
The year was marked by major
strides in financing some community
development programs. On April 18,
an act was approved authorizing the
government of the Virgin Islands to
borrow $2 million from reserves of the


employees retirement system for use in
constructing moderate-income housing
and, at year's end, the Government had
requested the loan from the system's
board of trustees. The $2 million will
be used to finance three projects.
The three developments include the
Estate Nadir project, St. Thomas, for
which ground was broken in February
1968 and is scheduled for completion
in late 1968. This project includes 79
three-bedroom houses. Second is at
Estate Bordeaux, St. Thomas, now in
the planning state and which will in-
clude 100 three-bedroom units. Third
is at Estate Sion Farm, St. Croix,
where a development of 315 individual,
three-bedroom units is now under con-
struction with a completion day of
May 1969.
Three other major community de-
velopment programs were included in
the activities of fiscal 1968. The de-


Many new housing developments, both private and public, are springing up throughout
the islands.








velopment plan for Estate Profit was
completed and submitted to the legis-
lature for approval. The legislature,
however, tabled action on the plan
until decision is made on the location
of a four-lane highway. The firm of
McClintock and Thun started work
on an overall development plan for the
Demerara-Honduras area in St.
Thomas which will include specific
recommendations for use of the small
tracts in that area which are owned
by the government. At Estate Contant,
St. Thomas, 20 three-bedroom units
were completed and occupied during
fiscal 1968 which brought the total
number of units to 31. At the close of
the fiscal year, an additional 31 units
were under construction.
Rent Control Agency
A total of 141 petitions were filed
with the rent control agency during
the year, 65 filed on St. Thomas and 76
on St. Croix. Seven of these petitions
were filed by landlords who wanted to
establish maximum monthly rental
ceilings on their properties. Following
inspections and hearings, appropriate
orders were issued. One case in St.
Thomas and four in St. Croix were un-
settled pending receipt of additional
information. Following is a statistical
report on work of the agency from fis-
cal 1964 through fiscal 1968:

Fiscal year Peti- Land- Tenants
tions lords
1964 .......... 68 3 64
1965 .......... 76 20 56
1966.......... 38 (1) 38
1967 .......... 74 6 68
1968 .......... 141 7 134
SNone.
Community Renewal Program
Most important event of the year
was approval from the regional ad-
ministrator of HUD for the Virgin Is-
lands community renewal program. An
audit of the program was made fol-


lowing approval and this audit did
not reveal any findings requiring cor-
rective action. The regional office also
granted permission to reprint copies of
all phases of the CRP creating a one-
volume study.
Workable Program for Community
Improvement
The annual review of this program
was submitted to the Department of
Housing and Urban Renewal in April
1968, and the program was recerti-
fied effective until July 1, 1969.
Housing Code Enforcement Program
The Virgin Islands housing code
was vigorously enforced during the
last 10 months of fiscal 1968 by two
housing code inspectors, three hous-
ing code enforcement officers under
the supervision of the coordinator of
housing. The staff inspected 340 struc-
tures containing 592 living units and
found 107 structures or 138 units in
violation of the code. Code enforce-
ment action brought 23 units into com-
pliance during the same 10-month
period.
Two basic features of the code need
revision. One deals with the provision
for a search warrant and the depart-
ment of law is trying to solve the prob-
lem of gaining entrance where citizens
refuse to all inspection. The second
deals with the two- and 5-year periods
given before owners and landlords are
required to make repairs. It seems that
the appeal board or the court may be
able to make individual recommenda-
tions instead of complying with the
grace period.
Virgin Islands Housing Authority
At year's end, Federal funds of $3,-
922,778 had been approved for four
projects in various stages of develop-
ment. Bids for Kirwan and Kings Hill
projects were higher than funds avail-
able from the Federal Government so








the government of the Virgin Islands
agreed to contribute $640,000 toward
construction of these two projects.
Three projects were under construc-
tion by June 30, 1968, including
Michael J. Kirwan Terrace, Lindberg
Bay, St. Thomas with 138 units; a
24-unit addition to Bergs Home, St.
Thomas and the Kingshill project on
St. Croix including 100 units. Bids
had been asked for the 84-apartment
congregate housing project for the
elderly to be located at Long Bay, St.
Thomas, and construction will start
early in fiscal 1969 on Turnkey projects
at Estate Tutu, St. Thomas, and Estate
Mon Bijou, St. Croix. In March 1968,
the addition to Marley home project
in Frederiksted, St. Croix, was com-
pleted and the project's 60 units were
completely occupied at the end of the
fiscal period.
The authority manages 10 projects-
three in St. Thomas, three in Frederik-
sted, and four in Christiansted-con-
taining a total of 1,354 apartments.
During the fiscal year, 423 applications
in St. Croix were received and 199 in
St. Thomas to bring the active file of
applications for low-rent public hous-


ing to a total of 1,943. During the same
period, 80 families were admitted to
projects in St. Croix and 42 in St.
Thomas.
Many tenants were delinquent in
paying rents during the year and the
management tried to improve this
picture by sending written reminders
and following up with a visit by a staff
member. Tenants who had difficulty in
bringing rent payments to the office
were urged to use the payroll deduction
system but none of these methods were
successful. Consequently, the authority
requested court action in 552 cases.
As of June 30, 1968, there were 47
families in St. Croix and 43 in St.
Thomas who were no longer eligible
for public housing because of high
incomes. There were also 175 families
living in overcrowded units at the end
of the fiscal year.
The authority continued its human
resources program with month bulle-
tins to the tenants and monthly meet-
ings. Supervised recreational activities
were provided for the youngsters, ef-
forts were made to organize scouting
groups in each project and two social
service workers were employed to pro-




I


.. I


Addition to Marley Homes, St. Croix, containing 60 units, was dedicated on
March 22, 1968.








vide individual and group counsel-
ing to tenants. The authority cooper-
ated with agencies on the neighborhood
youth programs and the community
center in each project was used for
kindergarten classes conducted by the
board of education and, in cooperation
with the department of health, facili-
ties were provided for a wide range of
health services.
Virgin Islands Urban Renewal Board
The board continued to administer
three projects-Barracks Yard, Water
Gut, and Lagon Street-and two new
projects were started. The application
for loan and grant for Taarneberg-
Ross was completed and approved by
housing and urban development on a
capital grant reservation of $1,104,000
and survey and planning applications
for Hill Street, Frederiksted, were ap-
proved in the sum of $42,600.
Barracks Yard is a conservation and
clearance program and, during the fis-
cal year, two substandard structures
were renovated and working drawings
for reconstruction of three others were
completed and approved. The year
also saw clearance of the section which
will be used for a municipal govern-
ment center and a Federal office build-
ing. Two parcels of land were acquired
during the year to complete acquisition
of 32 parcels and three structures were
demolished for a total of 92 demolitions
out of a total of 95 to be razed.
The board successfully relocated and
paid the moving expenses of 116 fami-
lies, 33 individuals, and 24 businesses,
during the fiscal year.
The board also started negotiations
with the local government and GSA
for the sale of project lands marked
for public use and the price established
by independent appraisals and ap-
proved by HUD was $5 per square
foot. At this price, the area for the
government center would bring $719,-


400 and the area for the Federal office
would bring $387,700.
Determination of final award for
properties taken by eminent domain
was still pending after 5 years of liti-
gation. Local courts had entered a
judgment of $6 per square foot aver-
age against the offer and deposit of
$3 per square foot. The board appealed
this decision and, in June 1968, the
third circuit court remanded the cases
to the local district court on the basis
of insufficient information to evaluate
conclusions.
Water Gut is also a combined con-
servation and clearance project, and at
the end of fiscal 1968, about 75 per-
cent of the area was designated for con-
servation and rehabilitation. The bal-
ance of the area is being cleared for
construction of a 114-unit middle-in-
come housing project under FHA. The
board filed the application and ob-
tained a conditional commitment of
$2,500,000. Soil test borings were made
and contracts let for final construction
drawings. Target date for the ground
breaking on this project is October
1968. This project is unique since the
board will sponsor the development
and be responsible for urban renewal
action.
Five families were removed from
the workload during the year ended
June 30, 1968, and 20 bonded aliens
were considered for housing by the
board. However, a bill passed by the
legislature in March 1967, required
their employers to provide relocation
facilities and HUD determined that
they were not eligible for relocation
payments so they voluntarily vacated
the area. The workload will increase
during fiscal 1969 since many prop-
erties scheduled for rehabilitation will
be acquired by the board and must be
vacated. Estimated housing require-
ments were submitted to the depart-








ment of housing and community re-
newal in the fiscal year just ended. To
date, 118 families, 76 individuals, and
seven businesses have been moved out
of the area and nine structures were
razed bringing the total to 116 of the
143 earmarked for demolition. No fur-
ther work can start until the revised
urban renewal plan is approved and
housing provided for the displacees.
On the Lagoon Street project, fiscal
1968 saw completion of all acquisi-
tion, demolition, and relocation activi-
ties with the exception of one struc-
ture. Because of the urgent need for
housing and commercial facilities in
Frederiksted, the Lagoon Street plan
was expanded to provide a 60-apart-
ment, middle-income housing unit un-
der FHA and a private shopping and
office center. Soil test borings and con-
struction drawings will be completed
early in fiscal 1969 and the ground
breaking is scheduled for October
1968.
The new Taarneberg-Ross project
on a 15-acre tract is a conservation and
clearance project which will stress
private homeownership. Goals of this
project are retention of standard hous-
ing in the area, demolition and re-
building of decayed housing on land
where title is held by the homeowner,


sale to owners of superficiary houses
the land on which their houses are
built and subdivision of other sections
into minimum-size lots for sale to for-
mer residents and owners.
Part 1--application for loan and
grant was approved by HUD with a
capital grant reservation of $1,104,000
and part II was submitted in June
1968. It is expected that the execution
stage can begin early in fiscal 1969.
Hill Street is also a combined con-
servation and clearance project with
major emphasis on private home-
ownership. Work in this area is still in
the survey and planning stage and in-
cludes a house-to-house survey to
determine relocation needs, prepara-
tion of a map to show parcels, owners,
structures, topography and other es-
sential data; and preparation of part 1,
application for loan and grant. The
Federal Government has allowed
$46,200 for this survey and planning
work with a time limitation of 36
months for filing part I.
During the year, the firm of Reed,
Marvel, Beauchamp & Torres was
retained to prepare survey and plan-
ning applications for new projects at
Gallows Bay, St. Croix, and Ross Yard
and Demerara-Honduras, St. Thomas.












DEPARTMENT OF PROPERTY

AND PROCUREMENT


Personnel: 102


Responsibility for rental of office
space was assigned to this department
during the fiscal year in addition to the
activities of personnel, administration,
budget, finance, accounting, and tax
appeals previously handled by the of-
fice of the commissioner.
Payments for rented office space dur-
ing the fiscal year totaled $277,195.
This amount represents only rents pay-
able from territorial government funds.
Rents payable from Federal grants are
not processed in this office.
The year saw a total allotment of
$1,328,838 received to cover purchases.
A total of $1,202,096 was disbursed and
1,619 requisitions were processed to
cover purchases.
Total expenditures for advertising
and promotion for outside departments
and agencies were $93,683, an increase
of approximately $23,000 over fiscal
year 1967. Allotments for activities of
the Department were $1,103,447 and
operating expenses were $1,009,389.
The Virgin Islands Board of Tax
Review handled approximately 1,700
appeals of real property tax assess-
ments, about the same number re-
corded for the previous fiscal year.
During fiscal 1968, the board ruled
that appellants should pay no more
than 66% percent over their 1964
assessment.
By the close of the fiscal year, the
third floor of building No. 1 in the
submarine base had been renovated


Operating Appropriations: $769,788

and plans were completed to move the
department to this location at the start
of the new fiscal year.
Division of Procurement and Supply
Both the number and dollar value of
purchase orders processed increased in
fiscal 1968 over the previous period.
A total of 18,050 purchase orders were
processed compared to 15,948 for the
previous year and the dollar value of
the orders of fiscal 1968 amounted to
$15,380,067 against a dollar value of
$14,065,551 for the preceding period.
Included in the 1968 total were 2,361
supply contracts amounting to $4,-
794,757; 59 construction contracts
with a value of $3,554,744; 15 profes-
sional contracts valued at $845,860;
328 miscellaneous contracts totaling
$837,959, and 267 purchases made
under existing General Services Ad-
ministration contracts totaling $309,-
949. The number of direct open mar-
ket purchases totaled 15,020 and cost
$5,036,796. The total on purchase or-
ders issued does not cover requisitions
for over-the-counter purchases under
$50 each.
Largest contract awarded during the
last fiscal year amounted to $239,280
and went to Meridian Engineering for
extension of the parking apron and
drainage structures at the Alexander
Hamilton Airport, St. Croix. Central
warehouse sales totaled $109,831, an
increase of $15,990 over fiscal 1967.









The central warehouse will soon be
relocated in larger quarters on the first
floor of building No. 1 in the subma-
rine base. Renovation of this space is
scheduled for completion in December
1968.
Division of Property, Weights and
Measures
Summer of 1967 was marked by
completion of an inventory of per-
sonal property in the departments.
Student workers were used on this
project and all items were tagged and
record cards prepared.
The year ended June 30, 1968, saw
the purchase of several large tracts of
land in St. Croix for housing and re-
creation purposes and for a proposed
highway. Land was also acquired in
St. Thomas and St. John for housing
and recreational use.
A new government printing office
in St. Croix was made possible by a
gift by the Harvey Alumina Co. of all
equipment used in publication of a St.
Croix newspaper to the government.
The government printing office in St.
Thomas had been meeting printing
demands of all departments and agen-
cies although it was handicapped by
breakdowns of old equipment. Plans
call for transfer of this office to the
submarine base area and a study is


underway on the type of equipment to
be acquired.

Division of Transportation
The division services and repairs all
vehicles owned by the government of
the Virgin Islands and several owned
by the Federal Government. During
the year just ended, several new ve-
hicles were purchased to replace older
cars which were sold on bid or traded
on new ones.
The division played a major role
providing transportation during the
National Governors' Conference and
for other important press, govern-
ment, and military groups.

Surplus Property
Closing of a large military installa-
tion in Puerto Rico contributed to a
sharp decline in surplus property re-
ceived. In the year just ended, surplus
property received was valued at
$55,887 compared with a value of
$130,129 on property received the
preceding year.
The division's Puerto Rico office
with a staff of three has been of signif-
icant help in screening surplus prop-
erty, preparing documents for acquisi-
tion, and in expediting purchasing
transactions there.












DEPARTMENT OF LAW


Personnel: 34


The department of law represented
the government in a number of cases
involving significant issues including
the extent of legislative powers, ad-
ministration of the industrial incen-
tive program and the interpretation
of tax laws. One of the more impor-
tant matters was the attack on the
Watch Production Tax Act. In cases
brought by Virgo Corporation and
Master Time Company, watch manu-
facturers, a decision was handed down
in September 1967 by the U.S. Circuit
Court of Appeals for the Third Cir-
cuit, upholding the tax imposed on
the production of watches as a rightful
subject of legislation within the au-
thority of the Legislature of the Vir-
gin Islands, and rejecting the argu-
ment that the law violates the com-
merce clause of the Constitution and
the due process clause of the Revised
Organic Act. Subsequently, the U.S.
Supreme Court denied certiorari in
the case.
In other areas, the department par-
ticipated in the activities related to the
issuance of bonds for various govern-
mental purposes, the agreements with
Hess Oil Co., and the Department of
the Interior, the contracts relating to
new construction at the College of the
Virgin Islands and the agreements for
expanded housing projects in St.
Thomas and St. Croix.
As chief law enforcement officer of
the territory, the attorney general ac-
tively participated in various commis-
sions on the problems of law enforce-
ment and the growth of crime. As


Operating Appropriation: $445,175

chairman of the Governor's special
commission on law enforcement, ad-
visor to the legislature's crime commit-
tee and a member of the task force of
the commission on human resources,
the attorney general assisted in the co-
ordination of efforts of these groups in
investigating the causes and extent of
crime in the Virgin Islands, and the re-
quirements for effective preventive,
control, and correctional measures.
The continuing increase in govern-
mental acitvities again was reflected in
the number of items such as contracts,
leases, deeds, and regulations prepared
by the department. Over 300 legisla-
tive items were prepared or reviewed
and close to 8,000 matters handled in
the municipal courts. Twenty-five cases
were prepared for or tried in the dis-
trict court, Division of St. Thomas and
St. John, and six in the St. Croix Divi-
sion. Claims against the government for
tort damages of not more than $1,000
each and 200 delinquent workmen's in-
surance payment accounts were admin-
istratively processed.
Great demand was expressed by such
departments and agencies as the de-
partment of finance, property and pro-
curement, social welfare, public safety,
and the Virgin Islands Water and
Power Authority for the full-time as-
signment of staff attorneys. Undoubt-
edly the need exists for at least fuller
legal services, especially in connection
with the early stages of major projects
or contracts being undertaken. How-
ever, in order to accomplish this great-
er staff will be required.












DEPARTMENT OF PUBLIC SAFETY


Personnel: 420


Law enforcement is becoming a
more complex assignment demanding
a broader concept of human and com-
munity relations. For this reason,
strong emphasis was placed on train-
ing both for veterans and recruits dur-
ing fiscal 1968.
Police officers are attending the 2-
year course in police science at the
College of the Virgin Islands. Inservice
training was reviewed and modern-
ized in line with changing local condi-
tions, new court decisions and new
developments in law enforcement. An
important training aid used in this
program is the IACP training keys and
film strips.
FBI agents conducted 2-day train-
ing programs in each district and cer-
tificates were issued to police officers
who attended these courses. A seminar
on drug abuse was conducted by the
Bureau of Drug Abuse Control, Food
and Drug Administration, and was
well attended.
Four detectives received intensive
training at the Federal Bureau of
Narcotics, Washington, D.C.
Plans were completed for the new
police cadet corps which will be in
operation early in the next fiscal year
and will bring a higher degree of pro-
fessionalism to the department. It is a
3-year program in which cadets will
be trained in every phase of police
work and encouraged to take CVI
courses leading to an associate's degree.
Following successful completion of the
program, cadets will become members
of the regular police force.


Operating Appropriations: $2,544,073

The administrative section of the
department was strengthened during
the year. Through legislative action,
two special assistants, two administra-
tive officers and two public relations
officers were added to the commis-
sioner's staff.
Appointments of the public relations
officers was an important advance,
since good law enforcement is increas-
ingly dependent on public understand-
ing and good will. As part of the new
public relations program, accredited
newsmen were issued identifying press
cards.
Highway safety was an area of in-
creased activity. Six high-powered
motorcycles were added to provide
maximum coverage of public highways
and Veteran's Drive was changed to
a four-lane highway from the District
Court Building west to the Caravan
Hotel to increase traffic flow during
rush hours. The increase in vehicular
fatalities on public highways, particu-
larly in St. Croix, led to the formation
of a highway safety patrol to cover
rural areas and this action has de-
creased traffic accidents. As a safeguard
against motorcycle deaths, an act was
passed regulating types of protective
headgear to be used.
During the year ended June 30,
1968, 36 policemen and four police-
women were added to the force and
additional positions were filled in the
investigation bureau, highway safety
patrol bureau, the marshal's office, and
the fire division. During the school
year, school crossing and bus guards








were used to insure safety for school-
children.
Increases in personnel, workload,
and the need for modern equipment to
combat the rising crime rate under-
score the need for new and modern
police headquarters in each district to
include crime laboratories.
Highway Safety Patrol Bureau
The year was marked by improve-
ments in the procedures for vehicular
registration. A new addressograph
multigraph machine was installed to
produce plastic-coated driver's license
and license plates were issued for a
period of 3 years but will be tagged
each year. Legislation has also been
asked for issuance of driver's licenses
on a 3-year basis.
Traffic accidents reported during the
period totaled 3,333 with 777 persons
injured and 19 persons killed. A total
of 346 vehicles were stolen and 177
were recovered. Approximately 42
driver's licenses were suspended for
traffic violations. Accelerated improve-
ment and relocation of traffic signs was
started during the year.
Patrol Bureau
During the fiscal year 1968, the foot
patrol unit handled 3,756 cases, ar-
rested 995 persons and charged 1,130
persons. The growing workload re-
sulted in an addition of 40 police of-
ficers to the force.
Juvenile delinquency is becoming an
increasingly serious problem and plans
were started for a juvenile aid unit
within the department. Special ve-
hicular patrols were added to the foot
patrol to give wider, mobile coverage
particularly in rural sections of the
islands.
Bureau of Criminal Investigation
A total of 2,187 criminal cases were
handled by the bureau. Money and
property amounting to $302,099 were


reported stolen and recoveries
amounted to $66,669.
Several improvements were made
during the year 1967-68 highlighted
by removal of the identification sec-
tion to a separate room to insure secu-
rity, a new fingerprint filing system,
based on classifications, expansion of
the main quarters and filling vacant
positions to control the large work-
load.
See appendix H for table on num-
ber and type of criminal cases handled.
Division of Police Training
In the past 12 months, men and
women from all three islands have par-
ticipated in various police training
projects. Curriculums have been up-
dated and the division has worked
closely with the College of the Virgin
Islands in coordinating police training
with the CVI police science education
program. During the year, 36 men and
four women completed recruit train-
ing which included classroom instruc-
tion, court visit instruction, demonstra-
tions, and firearms training.
Office of the Marshal
During fiscal 1967-68, the marshal's
office processed a total of 28,421 docu-
ments and collected $158,587 on ex-
ecutions. Workload in other areas also
increased and additional personnel
was added. A severe handicap to this
office was the fact that addresses for
rural homes and districts are often un-
clear because of the growing trend to
establish rural areas, and this resulted
in a greater number of persons not
found for service.
Business Inspection Office
License and enforcement officers
inspected 1,018 locations for which ap-
plications for licenses were made and
860 establishments to check on posting
and renewal of business licenses.
Through legislative action, this office


324-471 0--68- 7








will move to the department of finance
on July 1, 1968, although finalization
of business licenses will continue to be
done by this department.
Police Athletic League
PAL had an active year under the
director of sports and the secretary.
PAL teams and individuals won tour-
naments and trophies in softball, base-
ball and basketball and interisland
games were organized. Other activities
included dances, cake sales, arts and
crafts, and remedial reading for grade
school youngsters.
Richmond Penitentiary
Richmond Penitentiary poses a
problem to the community and its in-
mates since the structure prohibits
proper classification and segregation
of offenders, but despite these facts,
several key programs were successful
during the year ended June 30, 1968.
Drought conditions injured the farm
program but production was used to
help feed the inmates. The fishing
program was successful and allowed
four minimum security inmates to
make regular deposits in savings ac-
counts and help support their families.
Two block-making machines are now
in operation with eight prisoners as-
signed and money collected from this
effort is also used for family support.
The cabinet shop continues to con-
tribute to general maintenance of the
institution and two separate mechanic
shops are now in operation, one for
body repairs and the other for me-
chanical repairs.
Several inmates attended classes in
English, Spanish, typing, and French
and, through the efforts of the St.
Croix Society of Cultural Arts, others
were instructed in making African
games and native items. An open-air
gymnasium was built and 15 inmates
participated in a weight-lifting pro-
gram conducted by VISTA instructors.


Fire Division
The fire division responded to 423
fire calls during the fiscal year and, of
this total, 33 were false alarms. Total
estimated dollar value loss for the year
was $2,544,010.
A dramatic increase in fires through-
out the islands resulted in a crash pro-
gram for improved and additional fire
stations and equipment. A major addi-
tion was made to the fire station in St.
John and construction of the Estate
Tuta fire station is scheduled to start
soon. The new fire station in Chris-
tiansted was nearing completion at
year's end and plans are being nego-
tiated for a new station in Frederiksted.
The division employed 54 people at
year's end, an increase of six from last
year.
A fire prevention program was ac-
tivated with orders to eliminate all fire
hazards and 12 members of the St.
Thomas Fire Division completed a 10-
week course in arson investigation at
the College of the Virgin Islands.
Home Guard
The Virgin Islands Home Guard
Unit continued to serve in providing
security for major events including
sports, talent shows, carnival, Veteran's
Day, and were of great assistance in
handling the 59th annual Governors'
conference. Plans have been completed
for moving the home guard office to
building No. 1 at the submarine base.
Police and Fire Commission
The commission was inactive for
most of the fiscal year but with a full
membership expected in the coming
year, it will resume activity.
Parole Board
The parole board met once during
the fiscal year. Nine applications for
parole were reviewed and all were
granted.




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