• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 General information
 Highlights of the year
 Legislation
 Virgin Islands constitutional...
 Power and water utilities
 Virgin Islands corporation
 Virgin Islands government news...
 Control processing of woolen yard...
 Control of manufacture of...
 Office of the government secre...
 Departmental reports
 Conclusion






Group Title: Annual report of the Governor of the Virgin Islands to the Secretary of the Interior.
Title: Annual report of the Governor of the Virgin Islands
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00015459/00004
 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: 1964-1965
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: VID00004
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
        Page 7
        Page 8
    Highlights of the year
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
    Legislation
        Page 18
        Page 19
        Page 20
    Virgin Islands constitutional convention
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
    Power and water utilities
        Page 44
        Page 45
    Virgin Islands corporation
        Page 46
        Page 47
    Virgin Islands government news bureau
        Page 48
        Page 49
    Control processing of woolen yard goods
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
    Control of manufacture of watches
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
    Office of the government secretary
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
    Departmental reports
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
        Page 101
        Page 102
        Page 103
        Page 104
        Page 105
        Page 106
        Page 107
        Page 108
        Page 109
        Page 110
        Page 111
        Page 112
        Page 113
        Page 114
        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
        Page 129
        Page 130
        Page 131
        Page 132
        Page 133
        Page 134
        Page 135
        Page 136
        Page 137
        Page 138
        Page 139
        Page 140
        Page 141
        Page 142
        Page 143
        Page 144
        Page 145
        Page 146
        Page 147
        Page 148
        Page 149
        Page 150
        Page 151
        Page 152
        Page 153
        Page 154
        Page 155
        Page 156
        Page 157
        Page 158
        Page 159
        Page 160
        Page 161
        Page 162
    Conclusion
        Page 163
        Page 164
Full Text

































%r -?~



9~,~=~E=:
















UNIVERSITY
OF FLORIDA
LIBRARIES


I








THE GOVERNOR OF THE

VIRGIN ISLANDS

TO THE SECRETARY

OF THE INTERIOR

FOR THE FISCAL YEAR

ENDED JUNE 30










Annual Report

1965













UNITED STATES
DEPARTMENT OF THE INTERIOR

STEWART L. UDALL, Secretary

THE VIRGIN ISLANDS
RALPH M. PAIEWONSKY, Governor







LATIN
MIRceA


U.S. GOVERNMENT PRINTING OFFICE, WASHINGTON, D.C.

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C., 20402 Price 50 cents








CONTENTS


Page
General Information ____-------__-__ 1
Highlights of the Year ------------- 9
Legislation _--_ _18
Virgin Islands Constitutional Convention ---- 21
Power and Water Utilities__________ ___- 44
Virgin Islands Corporation ______- -______ 46
Virgin Islands Government News Bureau__--- ___ 48
Control of Processing of Woolen Yard Goods ..___..- 50
Control of Manufacture of Watches ______---__ 55
Office of the Government Secretary_ ___---_ 60
Departmental Reports:
Department of Education..__....._______ 70
College of the Virgin Islands _---_--__ 81
Department of Health _______ _____ 86
Department of Social Welfare_-_- _---__ 97
Department of Commerce -------------_ 103
S:, Department of Agriculture and Labor -------- 109
Virgin Islands Employment Security Agency ------ 114
Department of Public Works_ -: __ ___ _- 116
Department of Finance _------_ 118
Office of the Director of the Budget -_--_ ----_-_ 125
Department of Housing and Community Renewal_ 136
Department of Property and Procurement --____-- 140
Department of Law --____- _____ --_- ___ -- 142
Department of Public Safety-__________- 143
The Municipal Court of the Virgin Islands _.- _-_- 151
Office of Probation and Parole _____--_ _--- 156
Virgin Islands Planning Board ----------- 157
Division of Personnel ------------------ 159
Selective Service ------------------------ 161
Conclusion__ ----------------------- 163
III
ki














General Information


History
Christopher Columbus, sailing to the New World on his second voy-
age in 1493, dropped anchor on the north side of St. Croix and the is-
land'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 picturesque inlets so popular with modern-day
sailors who cruise the sparkling waters around the U.S. Virgin Islands.
The Great Navigator named his "discovery" Santa Cruz, meaning
"Island of the Holy Cross" and sent a landing party ashore to re-
plenish the ship's dwindling water supply. Instead of the warm wel-
come visitors receive today, Columbus' men were repulsed by the fierce
Carib Indians. No further attempts were made to land and colonize
until 1555 when the hostile Caribs were driven from St. Croix by
the soldiers of King Charles V of Spain.
Columbus was so impressed with the beauty of the island chain,
he christened them "Las Virgenes" in honor of St. Ursula and her
11,000 martyred virgins.
The value of these and the other islands of the West Indies soon
became apparent to the crowned heads of Europe and colonization
was encouraged. England, France, Holland, and Spain vied for con-
trol during the 17th century with sugar as the principal attraction.
So important was trade with the West Indies that Great Britain,
negotiating with France to end the Seven Years War in 1763, seri-
ously considered keeping the island of Guadeloupe instead of Canada.
Denmark played the most important role in the development of
the U.S. Virgin Islands. Entering the picture in 1671, she chartered
the West India Company and began serious colonization of St.
Thomas and St. John. St. Croix was purchased from France in 1733.
Except for a brief period of British occupation during the Napoleonic
Wars, the Danes ruled these islands until 1917.
Thus began a golden age of commerce and peaceful development
for the Virgin Islands, blessed by the Danish policy of neutrality
and liberal trading laws. Ships of all the nations of Europe, 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. Through-










2 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

out the islands 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 notorious Blackbeard. It is
said the Virgin Islands were spared the depredations of these buc-
caneers by paying "protection" in the form of sanctuary and commer-
cial privileges.
Sugar brought great prosperity to the islands and the plantation
owners. It also brought misery and privation to the thousands of
slaves who were introduced from Africa in the 1680's to work the
cane fields. 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 survivors of that ill-
fated uprising committed 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 Proclama-
tion. From then on, sugar decreased in commercial importance in
the Virgin Islands, outdone by the more favorable conditions for
cane operations in Cuba and elsewhere.
The United States took its first interested look at the islands during
the American Civil War. However, a purchase agreement fell through
when the Senate refused to ratify the negotiations in 1870. Bargain-
ing continued throughout the century but it wasn't until World War
I that the United States moved decisively. Fearing a German seizure
that would give U-boats a base in the Caribbean, the United States
bought the Danish Virgins in 1917 for $25,000,000. The U.S. Navy
was delegated to administer the islands and assumed responsibility
on March 31 of that year.

Geography
The U.S. Virgin Islands lie some 1,434 nautical miles southeast of
New York City; 991 miles 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 lo-
cated directly in the path of the trade winds, so commercially im-
portant in the days of sail, at the eastern end of the Greater Antilles
and the northern end of the Lesser Antilles.









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


The U.S. Virgins consist of some 50 islands and cays of volcanic
origin. Their neighbors, the British Virgins, are made up of an-
other 30 similar islands and cays.
Only three islands in the U.S. group are of any population or com-
mercial significance. The largest of these, St. Croix, with 84 square
miles is, for the most part, flat, and suited for agricultural use. Forty
miles due north, St. Thomas with 28 square miles, offers dramatic
rugged mountains that rise sharply from the sea to a height of up to
1,500 feet. A few miles east of St. Thomas, the island of St. John
with 20 square miles, offers similar land and seascapes. Both islands
rise from the same submarine plateau. Between these two islands
and St. Croix, the Caribbean Sea deepens to a 15,000-foot trench.
Because of the steep sloping mountain sides, very little land on St.
John or St. Thomas is tillable. St. Croix, however, is well suited
agriculturally, and priority is being given to the advancement and
diversification of this industry. Until recently, sugarcane was the
only important crop. However, it has been a marginal one and has
cost the local government large sums of money to cover milling
losses. Consequently, sugar is being gradually phased out. and will
be terminated as a commercial crop next year. Over 4,000 acres of
prime land will be utilized under a comprehensive plan now being
developed. This will include broad research into feasible food crops,
middle-range programs for agricultural development and a long range
plan to preserve the agricultural character and natural beauty of the
island.
St. Croix has two improved harbors. The one at Christiansted,
considered to be one of the most picturesque under the U.S. flag,
attracts pleasure yachts and medium size commercial craft from
other West Indian islands. The recently developed deep water harbor
at Frederiksted on the east end of St. Croix accommodates ocean
liners and is responsible for increased cruise ship traffic to the
island. In addition, a full size airport with direct jet flights to the
mainland has further enhanced the growing tourist trade.
St. Thomas, whose agricultural resources are limited by its rugged
landscape, 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 expansion of its airport facilities is planned to allow for jet
travel to the, island.
St. John's main attraction is its unspoiled beauty, guaranteed to
remain so, since most of the island is taken up by the Virgin Islands
National Park. The incomparable beaches, breathtaking mountain
views, and lush vegetation bring an increasing number of visitors
each year, who explore the island's charm by jeep or boat.









4 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

The U.S. Virgins enjoy a near perfect climate. Temperatures stay
within the 70- to 90-degree range with an average 78 degrees. The
balmy trade winds provide natural air conditioning. Humidity is
comfortably low with rainfall averaging about 45 inches a year.
There is an abundant variety of tropical flora ranging from the
well-known hibiscus, bougainvillea, oleander, poinsettia and wild or-
chid, to the less common 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, mahoe, and sea grape
trees. Exotic fruits from native trees grace the tables of Virgin
Islanders, the more popular being mango, soursop, lime, guava, sugar
apple, avocado, 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 fish-
ing sense, are rapidly becoming recognized as a prime fishing area.
Blue marlin, wahoo, tuna, tarpon, kingfish, and bone fish 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 marlin, officially recorded at 814 pounds, and caught
during the summer of 1964. Smaller fish also abound. They in-
clude grouper, "old wife," yellow tail, and angel fish.
The islands provide stone, sand, and gravel as building materials
but there are no minerals of commercial significance.

Government
The Virgin Islands have been governed by many nations. The flags
of Spain, France, Holland, England, Denmark, and the United States
have flown over all three islands and St. Croix, for a brief time, was
administered by the Knights of Malta.
When the United States purchased the Virgin Islands in 1917, the
transition was accomplished smoothly by retaining the Danish legal
code as the basic law. The Navy was given responsibility for ad-
ministering the islands until 1931. Military, civil, and judicial
power were vested in the Naval Governor, who was appointed by
the President of the United States.
On February 27, 1931, an Executive order from the White House
transferred jurisdiction from the Navy to the Department of the In-
terior, 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









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


branches and provided for a substantial degree of self-government.
Changes in the act are now under consideration which, if granted,
would give the Virgin Islands an even greater degree of home rule.
Presently, the Governor is appointed by the President of the United
States with the advice and consent of the Senate. Working with the
Department of the Interior and its Secretary, the Governor is re-
sponsible for execution of local laws, administration of all activities
of the executive branch, appointment of department heads and other
employees. He reports annually to the legislature on the state of the
Territory and recommends new legislation to carry out the various
programs of local government.
The Government Secretary is also appointed by the President.
In the absence of the Governor, the Government Secretary serves as
Acting Governor. He has administrative responsibility for banking
and insurance laws and the licensing and assessment of real property.
The unicameral legislature is elected for 2-year terms. There are
11 Senators, 2 from St. Croix, 2 from St. Thomas, 1 from St. John
and 6 elected at large by Virgin Island voters of all the islands.
Each bill passed must be signed by the Governor before it becomes
law. A two-thirds vote of the legislature is necessary to override
the Governor's veto. In this event, the Governor must approve it or
submit it to the President for final action.
The Federal District Court judge and the U.S. district attorney
are appointed by the President of the United States. The Federal
District Court exercises jurisdiction over felony violations of the local
criminal code as well as jurisdiction over crime arising under Fed-
eral law. The municipal court judges, two in St. Thomas, two in
St. Croix, are appointed by the Governor, and confirmed by the legis-
lature. The municipal court exercises jurisdiction over misdemeanor
violations and traffic offenses under the local law.
Civil cases involving less than $500 are handled by the municipal
court; cases involving from $501 to $10,000 are handled by either the
municipal court or the Federal court; all cases over $10,000 are in
the exclusive jurisdiction of the Federal court.
The Federal District Court exercises appellate jurisdiction over
the municipal court in civil and criminal cases. The U.S. Court of
Appeals for the Third Circuit, Philadelphia, and the U.S. Supreme
Court exercise appellate jurisdiction over the District Court of the
Virgin Islands.

Finances and Taxes
There are three principal sources of revenue for the Government of
the Virgin Islands from which funds are derived for capital and









6 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

operating disbursement.
The largest source and one that is growing every year, is from local
income taxes. An act of the Congress of the United States provides
that Federal income tax schedules be applied as a local tax in the
Virgin Islands. Another major contributor to the Treasury consists
of Federal excise taxes collected in the United States on imports of
Virgin Islands products and returned to the local government as
matching funds. In order to receive these funds, the islands must
raise through local taxes, funds which match in size the excises to
be rebated.
In fiscal 1965, the grand total collected for capital and operating
requirements was $28,905,904, as compared with $25,674,452 in 1964
and $19,701,263 in fiscal 1963.
In addition, the Federal Government assists the islands by appro-
priations and grant-in-aid allotments for many activities in employ-
ment services, public assistance, health and disease services, wildlife,
and libraries. There are over 35 such aid programs and
appropriations.

Economic Development
Tourism continues to be the most important industry in the Virgin
Islands. Income from visitors' expenditures during fiscal 1965 reached
a new record of $54 million as compared with $48 million in 1964.
Recognition is being given, however, to the need for a broader base
of industry and agriculture to provide continuation of a stable econ-
omy. Emphasis has been placed on attracting a large number of
small manufacturers as well as a few large industries. These provide
year-round employment at good wages for many islanders, which
have helped bring about a higher standard of living than ever existed
under the one-crop, one-industry, sugar economy of old. Virgin
Islanders' per capital income is in excess of $2,000 and is by far the
highest in the entire Caribbean.
The sale of rum, the distilling of which is a major industry of the
islands, is promoted through the Virgin Islands Rum Council, sup-
ported jointly by the rum distillers and the local government.
A study of alternate uses for agricultural land has been conducted
by The Caribbean Research Institute and a preliminary report issued
recommending suitable crops of the type needed for export to the
mainland during winter months and to meet a growing local demand.
Future growth of this industry favors intensive land use for eco-
nomically feasible crops rather than the extensive use in cane and
grazing that has taken place in the past.
Tax exemptions and subsidy benefits have long been used by the









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


local government to encourage industrial development. Incentives
for private investment in hotels, guest houses, industrial 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. The local government, acting strongly to protect the
integrity of this section, also guards against abuses by setting up tax
quotas for certain classifications of products. Production in excess
of quotas is taxed at a much higher rate.

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

Health and Education
The Virgin Islands have set an example for the entire Caribbean
in the preservation of health, the development of education, and the
replacement of slums with modern housing.
Each year sees further advances in hospital and public health serv-
ices, and two multi-million dollar health centers are currently being
designed to provide adequate facilities for the long-range needs of
the community. Diseases once associated with tropical climates have
long since been eradicated, and the climate eliminates the need for
home heating or heavy clothing, further contributing to the good
health of Virgin Islanders.

















8 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Educational standards continue to be upgraded. Public schools
cover kindergarten through high school and the islands' two major
high schools received accreditation in 1964. A construction program
for further classrooms is underway with completion expected by 1966.
The College of the Virgin Islands awarded diplomas to its first 2-
year class in June 1965. The occasion was marked by a visit from
Mrs. Lyndon B. Johnson, wife of the President of the United States,
who delivered the commencement address. A comprehensive plan
for vocational training now includes teacher and nurse training
programs.

Communication and Transportation
All three Virgin Islands enjoy the facilities of a dial telephone sys-
tem that is being constantly expanded to meet the growing needs of
the community. Marine cables, now being installed, will soon make
possible direct dialing to Puerto Rico and the mainland. Worldwide
radio telegraph service is also available.
The islands are served by three radio stations, one television station,
and six newspapers, four of them dailies.
Most visitors come by air, flying in jet planes to Puerto Rico and
then by smaller planes to the islands. St. Croix's new jet airport
serves a growing number of direct jet flights from the mainland to
the island. Except for short-stay cruise ship passengers, there are
very few people who arrive by boat. Small native sloops and charter
boats carry travellers 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 improvement each year, and
driving is on the left side of the road.










Highlights of the Year


Basic steps were taken during the 1964-65 fiscal year to assure the
economic security of the U.S. Virgin Islands as they marshal their re-
sources to meet the insistent pressures of an exploding population.
These steps recognize the fundamental necessity for both conser-
vation and orderly development of resources in a long-range program.
The urgency for such a long-range approach is clear. According
to the Bureau of Vital Statistics and supplementary population data,
the 1970 census will reveal more than a doubling in the number of resi-
dents which was set at 32,000 by the 1960 census.
Midway in this critical decade, the demands of an exploding popu-
lation have taxed severely the Territory's resources for classrooms,
hospital beds, housing, power, water, teachers, and nurses. Equally
persistent needs for comprehensive highway, recreational and cultural
development have had to await their turn in the order of priorities.
Nevertheless, the U.S. Virgin Islands recently have taken long strides
forward in absorbing the severe population pressures. The immediate
objective now is to engage in advance planning which will put Virgin
Islanders on a par with their fellow American citizens on the mainland
in the great war against poverty, ignorance, disease, and cultural
deprivation.
The priceless ingredient needed to implement such advance planning
is assurance of continued economic growth.
Fortunately, the U.S. Virgin Islands have enjoyed a healthy and
prosperous development over the past 4 years. The principal factor
has been a flourishing tourist trade which, in fiscal 1965, grossed a new
record income of $54 million. Simultaneously, the incentive program
to attract other important industries has met with significant success
and promises a dramatic breakthrough in the effort to diversify the
business of the islands.
Recognizing that this economic momentum must be maintained, the
Federal Government and the Territorial Government have worked dili-
gently to create and maintain a legal climate which will nourish the
healthy progress of the Virgin Islands in the future.

Important Changes in Customs Law
The best news for Virgin Islanders and mainland visitors to the is-
lands came from Washington the last week of the fiscal year. Changes
in the customs law, which would go into effect on October 1, 1965, were









10 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

approved by the Congress. By virtue of these changes, mainland and
Puerto Rico visitors would be allowed to return home with $200 worth
of duty-free merchandise, as compared with a $100 allowance for
visitors to other parts of the world.
Another provision continued the 1-gallon duty-free liquor allowance
for visitors returning from the Virgin Islands but reduced this allow-
ance to 1 quart for other tourist areas. No liquor quota would be
allowed to persons under 21 years of age.
It should be noted for the record that the regulation waiving the 48-
hour absence requirement for visitors returning with duty-free pur-
chases from the Virgin Islands continues automatically under the new
legislation. Restrictions on shipments of "goods to follow" were im-
posed on the Virgin Islands, as on all other areas.
The special customs provisions favoring the Virgin Islands were en-
acted in recognition of the fact that the Territory is an integral part of
the United States and should not be penalized by restrictions intended
to stem the flow of gold to foreign countries. Realizing that 84 cents
out of every dollar spent in the Virgin Islands remain in the dollar
area, the Federal Administration urged the Congress to approve a cus-
toms structure which would encourage Americans to visit the islands as
a part of the President's "See the U.S.A. Program." Congress agreed,
and the above described advantages were slated to become a basic part
of the continuing customs law.
For the Governor and his administration, this legislation was the
culmination of 4 years of continuous effort. The economic studies sup-
ported the Territory's arguments in favor of a formula giving the
Virgin Islands a "two-to-one" duty free advantage over foreign com-
petitors who were making much of their advantage of low-cost labor.
Adoption of this formula was in essence the granting of an economic
Magnaa charta" for the islands' basic industry-tourism.

Industrial Development Fostered
While tourism continues to be the key to the Virgin Islands economy,
significant progress was made during fiscal 1965 in the program for
industrial development.
A large alumina plant on St. Croix was nearing completion of its
first phase of construction and should be ready to begin operation in
January 1966. It is interesting to note that this first segment was
expanded to the point where construction expenditures would total
more than $50 million, rather than the $20 million originally
committed.
This plant represented the first breakthrough in long-range plans
to attract important industries which would offer good jobs at wages









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


far better than those which prevailed in the agrarian society fostered
by cane growing and sugar milling.
Important increments to the economy of St. Croix, accruing from
the new alumina plant, were a modern, well protected, deep water port;
a large steam power generating facility with a high-capacity sea wa-
ter desalting system, and a construction payroll that channeled millions
of dollars into local business.
The giant alumina plant will be just the first step in the development
of a modern industrial complex for St. Croix. This complex will
soon include a large petroleum refinery which should begin construc-
tion by December 15, 1965.
Completion of the refining facility will be followed by a satellite
industry based on petro-chemicals. Various manufacturers would be
encouraged to build plants in the vicinity to utilize the byproducts of
refining for plastics and other products.

Crisis in Watch Industry
Virgin Islands manufacturers who utilize imported components and
raw materials have been attracted by benefits available to them under
section 301 of the tariff law. This section provides that products for
which at least 50 percent of the cost has been added through processing
in the islands may be admitted to the United States duty free.
The chief industries which have taken advantage of this section 301
provision have been textile and watch assembly companies.
Interpretation of the "50 percent cost factor" has been under fire
from competing companies on the mainland who charged unfair
competition.
Such allegations first were leveled at the textile plants in the Virgin
Islands. Both Federal and local government officials turned their at-
tention to a plan for self-policing in order to eliminate abuses of the
section 301 provision and to regulate the industries involved so that
they would not constitute unfair competition to mainland companies.
The Governor, with the approval of the Legislature, set up a system
of quotas for woolen yard goods. A Board was appointed to hold
public hearings and recommend quotas for each producer which would
not be regarded as unfair competition. Production in excess of the
established quotas would be taxed at a rate which would eliminate any
cost differential enjoyed by islands industries under section 301.
This quota system, when applied to the textile companies, was a sat-
isfactory way of regulating, while still protecting, this desirable
industry.
During fiscal 1965, a similar crisis arose with regard to watch assem-
bly plants in the Virgin Islands. Again, the local government applied










12 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

a quota system and seems to have arrived at a satisfactory solution.
However, the worldwide tariff problems in the watch industry make
the future of plants in the islands a matter of continuing concern.

Direct Jet Service Sought
Several airlines have indicated an interest in providing the Virgin
Islands with direct jet service from the mainland United States.
Such service would continue to utilize the largest jets in reaching St.
Croix, plus the use of intermediate range jets for St. Thomas and
expanded St. Croix schedules.
The Territorial Government has supported the petition of Pan
American Airways to be allowed to start turn-around service in the
Virgin Islands, eliminating the present necessity for extending such
flights to foreign islands. It also has supported the petition of Eastern
Airlines for a franchise to serve St. Thomas and St. Croix with direct
service.
At year's end, these petitions still awaited decisions by the Civil
Aeronautics Board.
However, regardless of the CAB decisions, it seems assured that Pan
American will be able to begin jet service to St. Thomas and expand
its schedule to St. Croix as soon as the necessary intermediate range
planes are available. This airline already holds a certificate which
would allow it to schedule flights to St. Thomas, and it has been oper-
ating a limited direct service to St. Croix for several years. As of
year's end, Pan American expected to institute its new direct flights
from the mainland in January of 1966. This would mean daily direct
service to St. Croix and three-a-week service to St. Thomas at that
time. Schedules would be beefed up as fast as additional planes were
delivered to the carrier.
Meanwhile, the Territorial Government went ahead with plans for
making any necessary improvements in the St. Croix and St. Thomas
airports to meet the needs of the immediate future. An application
for Federal assistance in the construction of a new airport at the east
end of St. Thomas was still under consideration by the Federal Avia-
tion Agency.
It is the position of the Governor and his administration that high-
frequently direct jet schedules to both St. Croix and St. Thomas are
absolutely necessary in order to protect the competitive tourism posi-
tion of the Virgin Islands. Such service requires that both islands
provide airport facilities capable of handling the largest jet aircraft.









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Economic Growth Continuing
While the above-mentioned developments were setting the stage for
long-range well being of the islands, the economy set new records dur-
ing fiscal 1965.
Per capital income was approximately $2,000 for the year. Govern-
ment revenues approached the $30 million mark, up more than $4 mil-
lion over the previous fiscal year. Bank assets soared up 35 percent
to more than $90 million. A $6 million gain in tourist expenditures
set a new record of $54 million for the Virgin Islands' most important
single source of income.
Unemployment was virtually nonexistent during fiscal 1965, though
there was some problem of underemployment due to seasonal factors.
However, the islands' income continued its trend toward better dis-
tribution through higher wages and expanded services offered to the
public by the local government.

Exploding School Population
At year's end, it was expected that almost 10,000 pupils would be
enrolled in the public schools of the Virgin Islands in September, an
increase of more than 8 percent. If such a record increase should ac-
tually occur, there again will be a classroom deficit, despite the efforts
to keep up with the skyrocketing demand for new facilities.
To help cope with this growing school population, 14 new class-
rooms were added on St. Croix, 5 are nearing completion on St. John,
and special scheduling programs have been devised to ease the burden
on all 3 islands.
However, it will be another school year before the "crash construc-
tion program" will be able to catch up with and exceed the basic re-
quirements.
Immediate construction plans call for the addition of 113 more class-
rooms. These will include a new central high school for St. Croix and
a new junior high school for St. Thomas, for which architectural and
engineering plans have been drawn and contracts soon will be let.
The basic programs of upgrading instruction and curriculums in
cooperation with New York University continued, and a demonstra-
tion school on St. Thomas was used to good effect as a laboratory for
in-service training of teachers.
Recruiting of teachers from the mainland remained a problem. To
help offset this, plans are being made for a comprehensive teacher
training program through the College of the Virgin Islands.
205-504 0-66---2









14 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

First College Commencement
It was a proud moment for 11 young men and women on the after-
noon of June 3, when they met in a familiar lecture room at the Col-
lege of the Virgin Islands to don their caps and gowns for the first
graduation exercises. In that lecture room, they were joined by the
First Lady of the land, Mrs. Lyndon B. Johnson, who robed herself
as the first commencement speaker of the first institution of higher
learning in the U.S. Virgin Islands. After 2 years of classes, the
college was awarding the associate of arts degree to its first class.
The interest and faith of Mrs. Johnson in the College of the Virgin
Islands seem to be justified with progress thus far and plans for a
bright future.
In all, some 500 students, both full-time and part-time, were enrolled
in the college during the past fiscal year. An extension center was
inaugurated on the island of St. Croix to give that island the benefit
of the "Continuing Education Program." Plans were laid for 4-year
programs in liberal arts and teacher education to begin in 1966,
through cooperation with an important mainland university. New
occupational programs were added, and the college began its second
summer session of intensive study in English, mathematics, and speech.
Significant progress was made toward accreditation, with credits
earned by students at the College of the Virgin Islands being accepted
for transfer admission with advanced standing to 18 mainland institu-
tions. In March, the college was accepted as a Certified Correspondent
to the Middle States Association of Colleges and Secondary Schools,
a major step toward completion of the procedures leading to official
accreditation.
Confidence in the college was exhibited by financial support. The
legislature of the Virgin Islands appropriated $670,000 for operating
expenses. Additional funds from private sources added $1,126,717
for the building program which will move into high gear during the
next fiscal year.

Health Services and Housing Expanded
The Department of Health expanded facilities and staff during fiscal
1965 to meet the ever-growing needs of the population explosion.
However, the most significant progress was made by completion of
the first phase of planning for two new health centers which will be
constructed on St. Croix and St. Thomas. These health centers are
being programed to take care of the hospital and public health needs
of the Virgin Islands for a quarter of a century.
Similar progress was made in the field of housing and community
renewal. Over 7,500 persons formerly occupying substandard dwell-









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


ings are now living in suitable apartments and houses constructed by
Federal and local government funds.
Urban renewal programs on St. Thomas and St. Croix were show-
ing promising results in the elimination of blight areas. Private
builders, with government assistance, were providing homes for both
low and middle-income families on terms well within reach of the
majority of Virgin Islanders.
It was a picture of continuing development which is well described
in the more detailed departmental reports to follow.

First Territorial Bond Issue Prepared
Following congressional approval of the authority to issue general
obligation bonds for construction of schools, hospitals, and water
facilities, the Territorial Government moved with all deliberate speed
to finance its long-range plans in these fields.
During fiscal 1965, the local government negotiated interim financ-
ing preliminary to a $5,200,00 bond issue. Banks doing business in
the islands provided the necessary money as needed on short-term
notes at 23/4 percent interest. These notes will be retired upon issuance
of the bonds in the fall of 1965.
The bulk of this first bond issue will finance the construction of new
schools and additions to present ones under the master plan for long-
range expansion of educational facilities. Simultaneously, funds were
provided for acquisition of land for the St. Thomas health center, pre-
liminary architectural and engineering plans for health centers on
both St. Croix and St. Thomas, and construction of a sea water desalt-
ing plant soon to be dedicated on St. Thomas.

Conservation and Development of Natural Resources
There are no important mineral, timber, or other raw materials
indigenous to the Virgin Islands. Therefore, the Territory must make
the most of its other natural resources, which are considerable. These
include a climate that is almost faultless, a bounty of magnificent
beaches, good harbors plus access to the seas and the creatures inhabit-
ing them. There also are soil and fresh water resources which should
be conserved and are capable of development.
Following an exhaustive study by the Geological Survey, the legisla-
ture recently passed a law controlling the use of underground water
in order to conserve this valuable asset. In addition, the Territorial
Government has pioneered the use of desalted seawater and soon will
be supplying most of the public need from that source.
The legislature also has adopted soil conservation legislation which
has been described as a "model law" by officials of the Soil Conserva-
tion Service. Under this law, the Territorial Government is co-









16 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

operating with Federal authorities on a long-range program of soil
conservation and agricultural development.
Reconstruction of the agricultural economy on the island of St. Croix
is being given priority. Heretofore, the growing of sugarcane has
been the only important occupation. This, however, was a marginal
crop, costing the Territorial Government large sums of money to
make up milling losses. Therefore, sugar is being phased out and will
be terminated as an important commercial crop next year.
This has raised the question of the future of 113 farms, comprising
some 4,000 acres of prime agricultural land. A preliminary study of
alternate uses has been made. The report recommends use for food
crops instead of indiscriminate urbanization for residential purposes.
A comprehensive program is being developed, which will include
broad research into feasible crops, middle-range plans for agricultural
development and, finally, a long-range blueprint for preserving the
agrarian character and natural beauty of this large area of St. Croix.
Meanwhile, reforestation and beautification projects are being
fostered. Large sections have been planted in mahogany, with the
experimental idea that this may again become a commercial use for
the land.
In short, it is recognized that conservation of the "green areas" of
the islands is important to future generations, just as conservation of
the pristine beauty of seaside areas is vital to the welfare of the islands.

Liquidation of the Virgin Islands Corporation
While the charter of the Virgin Islands Corporation does not expire
until 1969, the past fiscal year saw important steps taken in the transfer
of VICORP's responsibilities to the Territorial Government.
Management of the power generating facilities on St. Croix and St.
Thomas, together with the seawater desalting plant on St. Thomas,
was given to the newly constituted Virgin Islands Water and Power
Authority. The Harry S. Truman Airport and commercially de-
veloped sections of the submarine base in St. Thomas were transferred
to a custodial agency of the Territorial Government. Land formerly
held by VICORP on St. Croix was allocated to the local authorities
for education, housing, and health facilities.
By year's end, the Virgin Islands Corporation had divested itself
of all but a small portion of its once impressive operations.
This transfer was according to a well-conceived and executed plan.
VICORP is wholly owned by the Federal Government. It was
chartered during the great depression of the 1930's to help stabilize
the economy of the community. The high level of economic develop-
ment and its accompanying prosperity resulted in the congressional


















REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


decision that such a corporation is no longer necessary and that its
functions can be served best by the Territorial Government. Many
technical details of the transfer still remain to be ironed out. How-
ever, an orderly shift of working responsibility has been effected, with
the local administration taking over the major activities of VICORP.

Progress Toward Home Rule
In December of 1964, a Virgin Islands Convention met to draft and
recommend to the Congress a new Organic Act as the basic law of the
Territory.
Elected by universal adult franchise, 22 delegates sat with members
of the Virgin Islands Legislature and arrived at a draft which was
proposed as a new "local constitution."
A committee of convention delegates was designated to present this
draft to the Federal Government. This was done in the spring, with
formal presentations at the White House and on Capitol Hill.
Prominent among the changes advocated by the Convention were
provisions for local election of the Governor, an elected delegate to
Congress, the right to vote in national elections for President and
Vice President, reapportionment of the Virgin Islands Legislature and
the authority of the legislature to set its own salaries.
The first of these changes to be acted upon favorably was that per-
mitting the legislature to fix its salaries. Subsequently, the legislature
set salaries at the sum of $6,000 per year.
At year's end, it seemed imminent that a bill providing for local
election of the Governor would be introduced by the Federal adminis-
tration for congressional action.










Legislation


During the fiscal year 1965, the increasing activities of the Govern-
ment of the Virgin Islands in various fields required five sessions of
the legislature. The Fifth Special Session of the Fifth Legislature
was held in August 1964; the Sixth Special Session in October 1964;
and the Seventh Special Session in November 1964. The First Reg-
ular Session of the Sixth Legislature was held on January 11, 1965,
to March 11, 1965, and the First Special Session was held in June 1965.
At the Fifth Special Session, 11 bills were proposed by the Governor,
adopted and approved. Four resolutions were introduced and
adopted. At the Sixth Special Session, 14 bills were proposed by the
Governor, 13 of which were adopted and approved and 1 referred to a
legislative committee for study. One resolution was introduced and
adopted. At the Seventh Special Session, 21 bills were proposed by
the Governor and adopted. Twenty were approved and one was
vetoed. Three resolutions were introduced and adopted. At the Reg-
ular Session of the Sixth Legislature, 229 bills were introduced by
members of the legislature and 21 resolutions, a total of 250 legisla-
tive items. Of these, 189 bills and 20 resolutions were adopted; of
the 189 bills which were adopted, 157 were approved and 32 vetoed.
In the First Special Session, 59 bills were introduced by the Governor
of which 56 were passed and approved. Seven resolutions were in-
troduced and adopted.
The following are the most significant pieces of legislation adopted
during the year.
Act to Create the Virgin Islands Water and Power Authority.
Act to Authorize the Issuance of Negotiable General Bonds in
Connection With the Construction of New Hospitals in the
Virgin Islands.
Act to Establish a Policy of Free Transportation for School Age
Children.
Act to Provide Funds for Water and Power Including the Pur-
chase of Additional Generating Facilities for St. Croix.
Act to Ratify and Confirm a Contract for the Purchase and In-
stallation of a Dual Purpose 7,500 kw, Steam Electric Generat-
ing Plant with 1,000,000 U.S. Gallon-Per-Day Water Conver-
sion Plant.
Act to Provide for the First Constitutional Convention of the
Virgin Islands.









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 19

Act to Provide for the Construction of Public Schools on a
"Crash" Basis.
Act to Approve General Plans for the Construction of a New
Airport on St. Thomas.
Act to Authorize the Issuance of General Obligation Bonds for
Hospitals, Schools, and Water Systems.
Act to Authorize the Acquisition of the Electric Water and
Power Distillation Systems of the Virgin Islands Corporation.
Act to Authorize Lease of Government-owned Land in St.
Thomas to the Bluebeard Housing Corporation to be used for
the Construction of a Middle-Income Housing Project.
Act to Dedicate a Housing Project in St. Croix as the Lyndon
Baines Johnson Gardens.
Act to Name a new High School in St. Thomas the Wayne N.
Aspinall High School in Honor of the Chairman of the House
Interior and Insular Affairs Committee.
Act to Authorize the Naming of a Proposed Government Office
Center in St. Thomas in Honor of the Late President John F.
Kennedy.
Act to Authorize the Naming of a Public Housing Project in St.
Croix in Honor of the Late President John F. Kennedy.
Resolution Expressing the High Esteem of the People of the
Virgin Islands for Vice-President Elect and Mrs. Hubert H.
Humphrey During their Vacation to the Virgin Islands.
Act to Designate a Proposed Housing Project in St. Thomas as
The Michael J. Kirwan Homes in Honor of Congressman
Kirwan.
Act to Provide Funds for the Construction of a New Home for the
Aged in St. Thomas.
Aot to Provide an Appropriation for the Construction of a Tem-
porary Additional Courtroom and Offices in St. Thomas.
Act to Provide an Appropriation for Demolition Work in Con-
nection With Urban Renewal Projects.
Act to Provide a Modern and Comprehensive Law for Soil and
Water Conservation.
Act to Establish a Bureau of Transportation for the Government
of the Virgin Islands.
Act to Revise the Pay Plan for Social Welfare Workers and to
Provide for 12 Months' Increments Instead of 18 Months for
all Classified Employees.
Act to Authorize the Governor to Enter Into Agreements with
Respect to Certain Federal Properties in the Virgin Islands,
Specifically the former Submarine Base and Marine Corps Air















20 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Facility and to Provide for their Protection, Management, and
Maintenance.
A New Water Resources Conservation Act.
Act to Provide for Property Ownership Based on the Con-
dominium Principle.
Act to Regulate the Operation and Use of Motor Vehicles by
Minors.
Act to Provide for the Consolidation of the Municipal Courts of
the Virgin Islands.
Act to Provide for the Execution of Certain Leases for Improve-
ments at the Former Marine Corps Station and the Former Sub-
marine Base in St. Thomas.
A Uniform Commercial Code.
Act to Provide Assistance to Livestock Raisers and to Establish
the Emergency Drought Relief Fund.
Act to Up-date and Modernize the Workmen's Compensation Law
in the Virgin Islands.
Uniform Interstate and International Procedure Act.
Mental Retardation Facilities and Community Health Centers
Construction Act.
Act to Provide for the Establishment of Separate Departments
of Agriculture and Labor.
Act Relating to the Construction of a Post Office at Cruz Bay,
St. John.
Act to Authorize Participation in Programs Under the Manpower
Development and Training Act of 1962.
Act Relating to the Condemnation of Property.
Amendments to the Public Accounting Act.
Act to Reorganize the Virgin Islands Industrial Incentive Board.
Act to Establish a Bureau of Transportation and a Motor Pool
Within the Department of Property and Procurement.
Act to Amend Existing Provisions for the Regulation of Public
Utilities.











Virgin Islands

Constitutional Convention


Pursuant to the provisions of act No. 1174 (bill No. 2082, Fifth
Legislature of the Virgin Islands, Regular Session 1964), the first
Virgin Islands Constitutional Convention convened in the Senate
Building, Charlotte Amalie, St. Thomas, V.I., on December 7, 1964.
The enabling legislation (act No. 1174) was approved by the Gov-
ernor on April 2, 1964. It authorized the election of 22 delegates in
the general election to be held on November 4, 1964. Under the
formula set forth in the act, 4 delegates each were to be elected from
the District of St. Croix and St. Thomas; 2 delegates from the Dis-
trict of St. John and 12 delegates at large. Together with the 11
Senators elected to the Sixth Legislature of the Virgin Islands under
the provisions of the Revised Organic Act of 1954, as amended, these
constituted the 33 delegates which comprised the Convention.
Proceeding according to the rules of parliamentary procedure fol-
lowed by the Legislature of the Virgin Islands, as required by the act,
the Convention was called to order by the Honorable Patrick N. Wil-
liams, Senator At Large, and Vice President of the Fifth Legislature,
acting in the absence of the President of the Legislature. Election by
secret ballot produced the name of Aubrey A. Anduze as President of
the Convention. Mr. Anduze is a former Senator and President of the
Second Legislature of the Virgin Islands. The Honorable Morris F.
de Castro, former Governor of the Virgin Islands, and Budget Di-
rector in the Government of the Virgin Islands, was elected Vice
President. Warren E. Brown, Executive Secretary of the Legislature
and Secretary of the Democratic Party of the Virgin Islands, was
elected Secretary of the Convention, and Attorney Clarice A. Bryan,
an Assistant Attorney General for the Virgin Islands, was elected
Assistant Secretary.
The Convention was addressed by the Honorable Frank E. Moss
(D.-Utah), Senator on the Subcommittee on Territories, U.S. Sen-
ate; the Honorable John A. Carver, Jr., Assistant Secretary of the
Interior, Public Land Management; and the Honorable Ralph M.
Paiewonsky, Governor of the Virgin Islands.
To faciliate its work, the Convention agreed upon and organized
the following standing committees:









22 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

1. Committee on Drafting
2. Committee on Legislative Powers and Functions
3. Committee on Executive Powers and Functions
4. Committee on Taxation and Finance
5. Committee on Intergovernmental Relations
6. Committee on Bill of Rights
7. Committee on Judiciary
8. Committee on Local Government
9. Committee on Suffrage and Elections
10. Committee on Submission and Information
11. Committee on Revision, Amendments, Initiative,
Referendum, and Recall
12. The chairmen of these committees constituted the
Committee on Rules.
The benefit of legal assistance, advice, and other counsel was pro-
vided by the following renowned and outstanding personalities in
their chosen fields:
1. Dr. Carl A. Friedrick, Professor and Political Scientist,
Harvard University
2. Mr. Roger N. Baldwin, International Work Adviser, Ameri-
can Civil Liberties Union
3. Dr. Adolf A. Berle, Former United States Ambassador and
Professor of Political Science, Columbia University
4. Dr. Alonzo Moron, former President of Hampton Institute
and Virgin Islands Representative of the U.S. Housing
and Home Finance Agency
5. Francisco Corneiro, Attorney General of the Virgin Islands
6. Alexander Farrelly, Assistant United States Attorney
7. Attorney John de Jongh, of the Firm of Birch, Maduro and
de Jongh, St. Thomas, Virgin Islands
8. Attorney Alfred L. Scanlan of the Firm of Shea & Gardner,
Washington, D.C.
9. Honorable Walter I. M. Hodge, former Senator and Presi-
dent of the First, Third, and Fourth Legislature of the
Virgin Islands
10. Mr. John M. Redding, Legislative Representative for the
Virgin Islands in Washington, D.C.
In order to avail itself of the widest possible cross-section of advice
and public opinion on the matters before it, and in effort to permit
the fullest public expression of views on the drafting of a new Or-
ganic Act and/or revision of the 1954 Organic Act, the Convention










REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


held public hearings in Charlotte Amalie on December 16, 1964; in
Cruz Bay, St. John, on December 17, 1964; and in Christiansted,
St. Croix, on December 18, 1964.
Eight high school students testified on all questions and proposals
before the Convention at the Charlotte Amalie public hearing. They
were followed by adult citizens, including the Executive Secretary of
the St. Thomas Chamber of Commerce, the Executive Director of the
Virgin Islands Labor Union, AFL-CIO, the President of the Virgin
Islands Bar Association, and several other citizens. Ten citizens and
students offered testimony at the St. John hearing, including a public
school teacher, a former Virgin Islands Senator and the Administrator
of St. John. In St. Croix leading members of the St. Croix Chamber
offered testimony and advice, as did the Commissioner of Health.
The Convention met for 20 legislative days and after due delibera-
tion, unanimously adopted the following major proposals for revision
of the Organic Act on February 26, 1965:


Proposals
1. Elective Governor;
4-year term


2. Elective Lieutenant
Governor; 4-year term


3. Unicameral Legislature of 11
Senators (3 from St. Croix
District; 3 from St. Thomas
District; 1 from St. John Dis-
trict; and 4 at large). Term
of 2 years. No limitation on
voting for members at large.




4. Resident Commissioner or
Delegate to U.S. House of
Representatives.
5. Right to vote for U.S. Presi-
dent and Vice-President in
national elections.


Present law
Governor appointed by Presi-
dent with Senate approval.
Term at the pleasure of
President.
Government Secretary appoint-
ed by President, without Sen-
ate approval. Term at the
pleasure of the President.
Unicameral Legislature of 11
Senators (2 from St. Croix
District; 2 from St. Thomas
District; 1 from St. John
District; and 6 at large).
Electorate limited in voting
for 2 at large and 2 from each
District. St. John Elector-
ate limited in voting for 2 at
large and 1 from the District.
Term 2 years.
No provision.


No provision.











24 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Proposals
6. Franchise vested in residents
18 years of age or over.
7. Veto of local laws by U.S.
President abolished.
8. Comptroller appointed by
Governor with consent of
legislature. Term 10 years.
9. Proposal of Organic Act
Amendment by legislature, or
to legislature by popular initi-
ative, or by Constitutional
Convention.


Present law
21 years of age or over.

Veto of local laws by U.S.
President.
Comptroller appointed by U.S.
Secretary of Interior. Term
10 years.
No provision.


The most significant action taken by the Convention is regarded as
its adoption of a Resolution on Status, which reads as follows:

"RESOLUTION ON STATUS

"BE IT RESOLVED THAT:
"1. The People of the Virgin Islands are unalterably opposed to
annexation of the Virgin Islands by any State of the Union as a
county, city, or precinct, or by any commonwealth or other territory
under the jurisdiction of the United States;
"2. The People of the Virgin Islands are unalterably opposed to in-
dependence from the United States of America;
"3. The People of the Virgin Islands desire to have the Virgin
Islands remain an unincorporated territory under the constitutional
system of the United States with the fullest measure of internal self-
government and in the closest association with the United States of
America, and that hereafter the Virgin Islands be designated an
'autonomous territory';
"4. The necessary constitutional arrangements to be made to entitle
the people of the Virgin Islands to vote for the President and Vice-
President of the United States in the national elections."
Also adopted was a resolution authorizing the Legislature's Home
Rule Committee to seek an audience with the President of the United
States in order to present him with the Convention's Report and
recommendations for greater autonomy for the people of the Virgin
Islands.
The full report of the Convention follows.











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Virgin Islands Constitutional Convention Report

DRAFT OF ORGANIC ACT FOR THE TERRITORY OF THE VIRGIN
ISLANDS OF THE UNITED STATES

Adopted by Constitutional Convention of the Virgin Islands February 26, 1965

DRAFT

To provide for the Second Revised Organic Act of the Virgin Islands.
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled:

1. Short Title.

That this Act may be cited as the Second Revised Organic Act of the
Virgin Islands.

2. Geographical Scope of Act; Definition of "Virgin Islands;" Terri-
torial Designation; Powers and Legal Status of Government;
Capital and Seat of Government.
(a) The Provisions of this Act, and the name "Virgin Islands" as used in
this Act, shall apply to and include the territorial domain, islands, cays, and
waters acquired by the United States through cession of the Danish West Indian
Islands by the convention between the United States of America and His
Majesty, the King 'of Denmark entered into August 4, 1916, and ratified by
the Senate on September 7, 1916 (39 Stat. 1706). The Virgin Islands as above
described are hereby declared an unincorporated territory under the constitu-
tional system of the United States of America and shall hereafter be designated
an "Autonomous Territory."
(b) The government of the Virgin Islands shall have the powers set forth
in this Act and shall have the right to sue by such name and in cases arising
out of contract, to be sued: Provided, that no tort action shall be brought against
the government of the Virgin Islands or against any officer or employee thereof
in his official capacity without the consent of the legislature constituted by
this Act.
The capital and seat of government of the Virgin Islands shall be located
at the city of Charlotte Amalie, in the island of Saint Thomas.

BILL OF RIGHTS

3. Rights and Prohibitions.

No law shall be enacted in the Virgin Islands respecting an establishment
of religion or prohibiting the free exercise thereof, or abridging the freedom
of speech or the press or the right of the people peaceably to assemble and to
petition the government for redress of grievances; nor shall the right of lawful
association be denied or abridged.
No law shall be enacted in the Virgin Islands which shall deprive any person
of life, liberty, or property without due process of law, nor deny to any person
the equal protection of the laws.











26 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

The right of the people to 'be secure against unreasonable searches and
seizures shall not be violated, and no warrant for arrest or search shall issue,
but upon probable cause, supported by oath or affirmation, and particularly
describing the place to be searched, and the persons to be arrested or things
to be seized.
In all criminal prosecutions, the accused shall be informed, by a copy thereof,
of the nature and cause of the accusation, shall have the right to be represented
by counsel for his defense, and upon demand shall have the right to a trial by
jury, to have compulsory process for obtaining witnesses in his favor, to be
confronted with the witnesses against him, and shall enjoy the right to a
speedy and public trial. (b) All persons shall be bailable by sufficient sureties
in the case of criminal offenses, except for first-degree murder or any capital
offense when the proof is evident or the presumption great. Excessive bail shall
not be required, nor excessive fines imposed, nor cruel and unusual punish-
ment inflicted. (c) No person shall be held to anwer for a criminal offense
without due process of law, and no person for the same offense shall be twice
put in jeopardy of punishment, nor shall be compelled in any criminal cause
to give evidence against himself.
No law impairing the obligation of contracts shall be enacted nor shall private
property be taken for public use except upon payment of just compensation
ascertained in the manner provided by law. Neither slavery nor involuntary
servitude shall exist in the Virgin Islands, except in the latter case as punish-
ment for a crime after the accused has been duly convicted by a court of law,
nor shall any person be imprisoned or suffer forced labor for debt.
All persons shall have the privilege of the Writ of Habeas Corpus and the
same shall not be supsended except as herein expressly provided.
No expost facto law or bill of attainder shall be enacted.
The contracting of polygamous or plural marriages is prohibited.
No political or religious test other than an oath to support the Constitution and
the laws of the United States applicable to the Virgin Islands and the laws of
the Virgin Islands shall be required as a qualification to any office or public
trust under the Government of the Virgin Islands. Provided, however, that no
person who advocates, or who knowingly aids or belongs to any party, organi-
zation or association which advocates the overthrow by force or violence of the
government of the Virgin Islands or of the United States shall be qualified to
hold any office of trust or profit under the government of the Virgin Islands.

The rights, privileges, and immunities of citizens of the United States shall
be respected in the Virgin Islands to the same extent as though the Virgin Islands
were a State of the Union and subject to the provisions of paragraph 1 of Section
2 of Article IV of the Constitution of the United States.
The foregoing enumeration of rights shall not be construed restrictively.
Nothing contained in this Act shall be construed to limit the power of the legis-
lature herein provided to enact laws for the protection of life, the public health,
social welfare, or the public safety.

No money shall be paid out of the Virgin Islands treasury except in accordance
with an Act of Congress or money bill of the legislature and on warrant drawn
by the proper officer.

No law authorizing or permitting the conducting or operation of public or
private gambling, beyond such forms or types authorized or permitted under
the law existing on the date of enactment of this Act, shall be effective in the











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 27

Virgin Islands until and unless approved by a two thirds majority vote of the
electorate of the Virgin Islands.

FRANCHISE

S 4. Voting Franchise; Discrimination Prohibited.

The franchise shall be vested in residents of the Virgin Islands who are citizens
of the United States, eighteen years of age or over. Additional qualifications
may be prescribed by the legislature. Provided, however, that no property,
language, or income qualification shall ever be imposed upon or required of any
voter, nor shall any discrimination in qualification be made or based upon dif-
ferences in race, color, sex, or upon political or religious belief.

LEGISLATIVE BRANCH

5. Legislative Power.

(a) The Legislative power and authority of the Virgin Islands shall be vested
in a legislature, consisting of one house, to be designated the "Legislature of
the Virgin Islands," herein referred to as the legislature.

Composition and Method of Elections

(b) The Legislature shall be composed of eleven members, to be known as
Senators. The Virgin Islands shall be divided into three legislative districts, as
follows: The District of Saint Thomas, comprising Saint Thomas, Hassel, Water,
Savana, Inner Brass, Outer Brass, Hans Lollik, Great Saint James, Little Saint
James, and Capella Islands. Thatch Cay and adjacent islets and cays; the
District of Saint Croix, comprising of Saint Croix and Buck Island and adjacent
islets and cays: and the District of Saint John, comprising Saint John and
Flanagan Islands; Grass, Mingo, Lovango, and Congo cays and adjacent islets
and cays. Three Senators shall be elected by the qualified electors of the District
of Saint Thomas; three senators shall be elected by the qualified electors of the
District of Saint Croix; and one senator shall be elected by the qualified electors
of the District of St. John. The other four senators shall be senators at-large
and shall be elected by the qualified electors of the Virgin Islands from the Virgin
Islands as a whole. The order of names upon the ballot for each office shall be
determined as the legislature may by law prescribe.

6. Terms of Office.

(a) The term of office of each member of the legislature shall be two years.
The term of office of each member shall commence on the second Monday in
January following his election.

(b) Qualification of Members

No person shall be eligible to be a member of the legislature who is not a
citizen of the United States, who has not attained the age of twenty-five years,
who is not a qualified voter in the Virgin Islands, who has not been a bonafide
resident of the Virgin Islands for at least three years next preceding the date of
his election, or who has been convicted of a felony or of a crime involving moral
turpitude and has not received a pardon restoring his civil rights: Provided,












28 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

that in case of District candidates no person shall be eligible who has not resided
in the respective district for at least one year of the three years required to
qualify above. Federal employees and persons employed in the legislative,
executive or judicial branches of the government of the Virgin Islands shall not
be eligible for membership in the legislature.

(c) Appointment of Electoral Officers

All officers and employees charged with the duty of directing the adminis-
tration of the electoral system of the Virgin Islands and its representative dis-
tricts shall be appointed in such manner as the legislature may by law direct.

(d) Immunity of Members

No member of the legislature shall be held to answer before any tribunal
other than the legislature for any speech or debate in the legislature and the
members shall in all cases except treason, felony, or breach of the peace, be
privileged from arrest during their attendance at the sessions of the legislature
and in going to and returning from the same.

(e) Compensation and Allowances

Each member of the Legislature shall be paid such compensation as shall be
fixed by enactment of the Legislature and approved by the Governor; Provided
that such compensation after it has first been fixed shall not be changed except
by legislative enactment for the next Legislature. Each member of the Legis-
lature who is away from the island of his residence shall also receive a per diem,
fixed by the Legislature, for each day's attendance while the Legislature is
actually in session, in lieu of his expenses for subsistence, and shall be re-
imbursed for his actual travel expenses in going to and returning front each
session, or period thereof. The salaries, per diem, and travel allowances of the
members of the Legislature shall be paid by the Government of the Virgin
Islands.
(f) Limitations on Holding Other Offices

No member of the legislature shall hold or be appointed to any office which
has been created by the legislature, or salary or emoluments of which have been
increased, while he was a member, during the term for which he was elected,
or during one year after the expiration of such term.


(g) Judge of Election and Qualifications of Members

The Legislature shall be the sole judge of the elections and qualifications of
its members, shall have and exercise all the authority and attributes inherent
in legislative assemblies, and shall have the power to institute and conduct
investigations, issue subpoena to witnesses and other parties concerned, and
administer oaths. The rules of the Legislature of the Virgin Islands existing
on the date of approval of this Act shall continue in force and effect for
sessions of the legislature, except as inconsistent with this Act, until altered,
amended, or repealed by the Legislature.











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


(h) Vacancies

The Governor of the Virgin Islands shall fill any vacancy in the office of a
member of the Legislature by appointment in such manner as the Legislature
may by law direct.

7. Legislative Sessions.

(a) Regular Sessions of the legislature shall be held annually, commencing
on the second Monday in January (unless the legislature shall by law fix a differ-
ent date) and shall continue in regular sessions for not more than 60 days which
need not be consecutive; Provided, that the session shall conclude no later than
May 31st. The Governor may call special sessions of the legislature at any time
when in his opinion the public interest may require it, but no special session shall
continue longer than fifteen calendar days, and the aggregate of such special
sessions during any calendar year shall not exceed thirty calendar days. No
legislation shall be considered at any special session other than that specified
in the call therefore or in any special message by the Governor to the legislature
while in such session.
(b) Place of Holding

Sessions of the legislature shall be held in the capital of the Virgin Islands at
Charlotte Amalie, Saint Thomas.

8. Legislative Power.

(a) The legislative authority and power of the Virgin Islands shall extend
to all rightful subjects of legislation not inconsistent with this Act or the laws
of the United States made applicable to the Virgin Islands, but no law shall
be enacted which would impair rights existing or arising by virtue of any treaty
or international agreement entered into by the United States, nor shall the
lands or other property of non-residents be taxed at a higher rate than the lands
or other property of residents.

(b) Applicability of Laws and Ordinances

The laws of the United States applicable to the Virgin Islands on the date of
approval of this Act, including laws made applicable to the Virgin Islands by
or pursuant to the provisions of the Act of June 22, 1936 (49 Stat. 1807), and
of the act of July 22, 1954, (68 Stat. 491) as amended respectively, and all local
laws and ordinances in force in the Virgin Islands, or any part thereof on the
date of approval of this Act shall, to the extent they are not inconsistent with this
Act continue in force and effect until otherwise provided by the Congress:
Provided; that the legislature shall have power, when within its jurisdiction and
not inconsistent with the other provisions of this Act, to amend, alter, modify,
or repeal any local law or ordinance, public or private, civil or criminal, con-
tinued in force and effect by this Act, except as herein otherwise provided, and
to enact new laws not inconsistent with any law of the United States applicable
to the Virgin Islands.


205-504 0-66-- 3











30 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

S9. Quorum and Method of Voting on Bills.

(a) The quorum of the legislature shall consist of seven of its members. No
bill shall become law unless it shall have been passed at a meeting, at which a
quorum was present, by the affirmative vote of a majority of the members pres-
ent and voting, which vote shall be by yeas and nays.

(b) Enacting Clause

The enacting clause of all acts shall be as follows: "Be it enacted by the Legis-
lature of the Virgin Islands"

(c) Governor's Message and Budget

The Governor shall ,submit at the opening of each regular session of the Legis-
lature a message on the state of the Virgin Islands and a budget of estimated
receipts and expenditures, which shall be the basis of the appropriation bills for
the ensuing fiscal year, which shall commence on the first day of July.

(d) Approval and Disapproval of Bills

Every bill passed by the Legislature shall, before it becomes a law, be pre-
sented to the Governor. If the Governor approves the bill, he shall sign it.
If the Governor disapproves the bill, he shall return it, with his objections, to
the legislature within ten days (Sundays excepted) after it shall have been pre-
sented to him. If the Governor does not return the bill within such period, it
shall be a law in like manner as if he had signed it, unless the legislature by
adjournment prevents its return, in which case it shall be a law if signed by the
Governor within thirty days after it shall have been presented to him; other-
wise it shall not be a law. When a bill is returned by the Governor to the
Legislature with his objections, the legislature shall enter his objections at large
on its journal and proceed to reconsider the bill. If, after such consideration,
two-thirds of all the members of the legislature agree to pass the bill, it shall
become a law. If any bill presented to the Governor contains several items of
appropriations of money, he may strike out any one or more of such items of
the bill, which shall include the appropriation therefore. In such case, he shall
append to the bill, at the time of signing it, a statement of the item or items to
which he objects, and the item or items, so objected to shall not take effect.
If at the termination of any fiscal year the legislature shall have failed to pass
appropriation bills providing for payment of the obligations and necessary current
expenses of the government of the Virgin Islands for the ensuing fiscal year,
then the several sums appropriated in the last appropriation bills for the objects
and purposes therein specified, so far as the same may be applicable, shall be
deemed to be reappropriated item by item.

(e) Bills: Single Subject

The Legislature shall enact no law except by bill and every bill, except bills for
appropriations and bills for modification, revision, or rearrangement of existing
laws, shall be confined to one subject. All appropriation bills shall be limited to
the subject of appropriations. However, legislative compliance with the require-
ments of this section is a constitutional responsibility that is not subject to
judicial review by any court.











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


,The Legislature shall keep a journal of its proceedings and publish the same.
Every bill passed by the legislature and the yeas and nays on any question shall be
entered in the journal.

10. Resident Commissioner.

The Virgin Islands shall be represented in the United States Congress by a
Resident Commissioner, who shall be officially recognized by all Government de-
partments as the representative of the Virgin Islands, and shall have all the rights
and privileges of a Member of the House of Representatives except that he shall
not be entitled to vote or to offer a motion to recommit. He shall receive the
same salary, emoluments, allowance, facilities and service as may be provided
by law for Members of the House. He shall be elected by the qualified electors
of the Virgin Islands every four years, and no person shall be eligible for election
as Resident Commissioner unless he is a citizen of the United States and of the
Virgin Islands, is over 25 years of age, reads and writes English, and meets such
additional qualifications as the legislature may by law prescribe. In case of a
vacancy in the office, the Governor of the Virgin Islands shall appoint a Resident
Commissioner to serve until the next election of a Resident Commissioner and
until his successor is elected and qualified.

EXECUTIVE BRANCH

5 11. Governor, Election, Powers and Duties Generally.

The executive power of the Virgin Islands shall be vested in an executive officer
whose official title shall be the "Governor of the Virgin Islands." The Governor
of the Virgin Islands shall be elected by a plurality of the votes cast by the people
who are qualified to vote for the members of the Legislature of the Virgin Islands.
The first election for Governor shall be held on the first Tuesday after the first
Monday in November in 1966, and the Governor then elected shall hold office for a
term of two years and until his successor is elected and qualified. Thereafter the
Governor shall be elected at 'the general election in 1968 and every fourth year
thereafter at the general election, and hold office for a term of four years until his
successor is elected and qualified; unless sooner removed for cause. The term of
the elected Governor shall commence on the fifth day of January following the
date of election.
No person shall be eligible for election to the office of the Governor unless at the
time of taking office he is at least 30 years of age, is able to read and write the
English language, and is and has been for the preceding five years a citizen of the
United States, and a bonafide resident of the Virgin Islands for five consecutive
years immediately preceding the election. The nomination of candidates and the
conduct of the election shall be governed by the laws of the Virgin Islands.
The Governor shall maintain his official residence in the Government House in
St. Thomas during his official incumbency, free of rent, and while in St. Croix
may reside in Government House on 'St. Croix, free of rent, which houses together
with the land appurtenant thereto are hereby transferred to the Government of
the Virgin Islands, and the Secretary of the Interior hereby is authorized to
execute the proper transfer instrument.
The Governor shall have general supervision and control of all the departments,
bureaus, agencies, and other instrumentalities of the executive branch of the
government of the Virgin Islands. He may grant pardons and reprieves and
remit fines and fortfeitures for offenses against local laws, he may grant respites











32 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

for all offenses against the laws of the United States applicable In the Virgin
Islands until the decision of the President can be ascertained. He may also
veto any legislation as provided in this Act. He shall appoint all officers and
employees of the executive branch of the government of the Virgin Islands, except
as otherwise provided In this or any other Act of Congress, and shall be respon-
sible for the faithful execution of the laws of the Virgin Islands and the laws
of the United States applicable in the Virgin Islands. Whenever it becomes neces-
sary he may call upon the commanders of the military and naval forces of the
United States in the islands, or summon the posse comitatus, or call out the militia,
to prevent or suppress violence, invasion, insurrection, or rebellion and he may,
in case of rebellion or invasion, or imminent danger thereof, when the public safety
requires it, suspend the privilege of the writ of habeas corpus, or place the islands,
or any part thereof, under martial law. He shall report such action to the Legis-
lature, and must suspend it, if two-thirds of the Legsilature request it. He shall
have the power to issue executive regulations not in conflict with any applicable
law. He may attend or may designate another person to represent him at the
meetings of the Legislature, may give expressions to his views on any matter
before that body, and may recommend bills to the Legislature.

12. Lieutenant Governor, Election, Custody of Seal, Powers and Duties.

(a) There is hereby established the office of Lieutenant Governor for the Virgin
Islands. He shall have custody of the seal of the Virgin Islands and shall coun-
tersign and affix such seal to all executive proclamations and all other executive
documents. -He shall record and preserve the laws enacted by the Legislature.
He shall promulgate all proclamations and orders of the Governor and all laws
enacted by the Legislature. He shall have such executive powers and perform
such other duties as may be assigned to him by the Governor. The Lieutenant
Governor shall be elected at the same time and in the same manner and for the
same term as the Governor. No person shall be eligible for election to the office
of Lieutenant Governor unless at the time of the election he is at least 80 years of
age, is able to read and write the English language, and he has been for the pre-
ceding .five years a citizen of the United States, and a bonafide resident of the
Virgin Islands for five consecutive years immediately preceding the election.
The nomination of candidates and the conduct of the election shall be governed
by the laws of the Virgin Islands.

Vacancy in Office of Absence of Governor; Powers of Lieutenant
Governor

(b) In case of the temporary disability or temporary absence of the Governor,
the Lieutenant Governor shall have the powers of the Governor.
Provided, however, that in case of a permanent vacancy in the Office of the
Governor due to death, disability or any other reason, the Lieutenant Governor
shall become the Governor, and as such he shall appoint a new Lieutenant Gov-
ernor, with the advice and consent of the Legislature, both to hold office for the
unexpired term and until their successors shall have been duly elected and
qualified.
(c) In case of the temporary disability or temporary absence of the Lieuten-
ant Governor, or during such period when the Lieutenant Governor is acting as
the Governor, the Governor or the Acting Governor may from time to time
designate an officer or employee of the executive branch of the Government of











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 33

the Virgin Islands to act as Lieutenant Governor so long as such condition con-
tinues. Provided, however, that in case of a permanent vacancy in the Offoe
of the Lieutenant Governor due to death, disability or any other reason, the
Governor shall appoint a new Lieutenant Governor, with the advice and consent
of the Legislature, to hold office for the unexpired term until his successor shall
have been duly elected and qualified.
No additional compensation shall*be paid to any person acting as Governor
or Lieutenant Governor under this Act.

Vacancy in Offices, or Absence of Governor and Lieutenant Governor;
Designation of Department Head to.Act

(d) In case of a vacancy in the offices of the Governor and Lieutenant Gover-
nor or the disability or temporary absence of both the Governor and Lieutenant
Governor, the powers of the Governor shall, for so long as such condition con-
tinues, be exercised by such person as the laws of the Virgin Islands may pre-
scribe: Provided, that such person may be removed for cause as provided herein.
(e) The Governor or Lieutenant Governor or the Resident Commissioner of
the Virgin Islands may be removed for any or all of the following causes: Trea-
son, bribery, misconduct in office or other felonies and misdemeanors involving
moral turpitude by either Jf the following methods:
(1) By an affirmative vote of 75% of the persons voting in a referendum; such
referendum to be initiated by the Legislature following a % vote of the members
of the Legislature of the Virgin Islands.
(2) By an affirmative vote of 75% of the persons voting in a referendum. Such
a referendum may be initiated by the petition to the Legislature of 25% of the
voters registered to vote in the Virgin Islands.

Reorganization of Government

(a) The executive departments, bureaus, independent boards, agencies, au-
thorities, commissions and other instrumentalities of the government of the
Virgin Islands which are in existence on the effective date of this Act are hereby
continued in existence until the Legislature of the Virgin Islands shall otherwise
prescribe by law. The head of each executive department, other than the De-
partment of Law, shall be designated the Commissioner thereof, and the Com-
missioner of Finance shall be bonded. The head of the Department of Law shall
be known as the Attorney General of the Virgin Islands.

Changes After Examination From Time to Time

(b) The Governor may from time to time, examine the organization of the
executive branch of the Government of the Virgin Islands, and shall make such
changes therein, subject to the approval of the legislature, not inconsistent with
this Act, as he determines are necessary to promote effective management and to
execute faithfully the purposes of this Act and the laws of the Virgin Islands.

Appointment of Department Heads, Tenure, Removal; Powers and
Duties

(e) The heads of the executive departments of the Government of the Virgin
Islands shall be appointed by the Governor with the advice and consent of the
Legislature. Each shall hold office during the continuance in office of the Gov-











34 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

ernor by whom he is appointed and until his successor is appointed and qualified.
unless sooner removed by the Governor. Each shall have powers and duties
as may be prescribed by the Legislature. The Chairman and members of any
board, authority or commission established by the laws of the Virgin Islands,
shall if the laws of the Virgin Islands hereafter provide, also be appointed by
the Governor with the advice and consent of the legislature, if such board, au-
thority or commission has quasi-judicial functions.

Compensation of Governor, Lieutenant Governor and Staffs of
Department Heads

(d) The salaries and travel allowances of the Governor, the Lieutenant Gov-
ernor, the heads of the executive departments and other officers and employees
of the Government of the Virgin Islands shall be paid by the Government of the
Virgin Islands at rates prescribed by the laws of the Virgin Islands.

S13. Government Bonds; Maximum Amount; Sale, Interest, Etc.

(b) (i) The Legislature of the government of the Virgin Islands may cause to
be issued on behalf of said government bonds or other obligations (1) for a
specific public improvement or specific public undertaking authorized by an act
of the legislature, and (2) for the establishment, construction, operation, main-
tenance, reconstruction, improvement, or enlargement of other projects, author-
ized by an act of the legislature, which will in the legislature's judgment, promote
the public interest by economic development of the Virgin Islands. Such bonds
or obligations shall be payable solely from the revenues derived from and attrib-
utable to such specific public improvement, public undertaking or other project.
Bonds or other obligations issued pursuant to this paragraph (i) may bear such
date or dates, may be in such denominations, may mature in such amounts and
at such time or -times, not exceeding thirty years from the date thereof, may be
redeemable (either with or without premium) or non-redeemable, may be pay-
able at such place or places, may carry such registration privileges as to either
principal and interest, or principal only, and may be executed by such officers
and in such manner as shall be prescribed by the government of the Virgin
Islands. Said bonds or other obligations shall be sold at public or private sale.
In case any of the officers whose signatures appear on the bonds or coupons or
other obligations shall cease to be such officers before delivery thereof, such signa-
ture, whether manual or facsimile shall, nevertheless, be valid and sufficient for
all purposes, the same as if such officers had remained in office until such deliv-
ery. The bonds or other obligations so issued shall bear interest at a rate not to
exceed 5 per centum per annum, payable semi-annually. All such bonds or obli-
gations shall be sold for not less than the principal amount thereof plus accrued
interest. All such bonds or obligations issued by the Government of the Virgin
Islands or by its authority shall be exempt as to principal and interest from
taxation by the Government of the United States, or by the Government of the
Virgin Islands or by any State, territory, or possession or by any political sub-
division of any State, territory or possession, or by the District of Columbia.
Such bonds or obligations shall under no circumstances constitute a general
obligation of the Virgin Islands or of the United States.
(ii) (A) Subject to the provisions of this paragraph (ii), the Legislature of
the Government of the Virgin Islands may cause to be issued such negotiable
general obligations bonds or other evidence of indebtedness as it may deem











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


necessary and advisable to construct, improve, extend, better, repair, recon-
struct, acquire, and equip hospitals, housing, schools, libraries, gymnasia, recrea-
tion areas, sewers, sewage-disposal plants, and water systems and resources;
and to construct, improve, extend and better repair, reconstruct, acquire,
and equip any other public improvement as may be authorized by the
Legislature: Provided, that no public indebtedness of the Virgin Islands shall
be incurred in excess of 10 per centum of the aggregate assessed valuation of the
taxable real property in the Virgin Islands except that in determining the
amount of such public indebtedness there shall be excluded that portion thereof
for the funding or refunding of which bonds or other obligations shall have been
issued. Bonds or other evidence of indebtedness issued pursuant to this para-
graph (ii) shall bear such date or dates, may be in such denominations, may
mature in such amounts and at such time or times, not exceeding thirty years
from the date thereof, may be payable at such place or places, may be sold at
either public or private sale, may be redeemable (either with or without pre-
mium) or non-redeemable, may carry such registration privileges as to either
principal and interest, or principal only, and may be executed by such officers
and in such manner, as shall be prescribed by the legislature of the government
of the Virgin Islands. In case any of the officers whose signatures appear on the
bonds or coupons or other evidence of indebtedness shall cease to be such officers
before delivery thereof, such signature, whether manual or facsimile, shall never-
theless be valid and sufficient for all purposes, the same as if such officers had
remained in office until such delivery. The bonds or other evidence of indebted-
ness so issued shall bear interest at a rate not to exceed that specified by the
legislature and payable semi-annually. All such bonds or other evidence of
indebtedness shall be sold for not less than the principal amount thereof plus
accrued interest. All such bonds or other evidence of indebtedness issued by the
Government of the Virgin Islands, including specifically interest thereon, shall
be exempt from taxation by the Government of the United States, or by the
government of the Virgin Islands or any political subdivision thereof, or by any
State, territory, or possession or by any political subdivision of any State, terri-
tory, or possession or by the District of Columbia.
(B) The proceeds of the bonds issued or other obligations herein authorized
shall be expended only for the public improvements set forth in the preceding
subparagraph (including the funding and refunding of debt incurred therefore)
or for the reduction of the debt created by such bond issue or obligation, unless
otherwise authorized by the Congress.
Bonds or other obligations issued pursuant to this paragraph (ii) shall not
be a debt of the United States be liable thereon.

14. (a) There is created an agency of the government of the Virgin Islands to
be known as the Offce of the Government Comptroller which office shall be in-
dependent of the executive departments, and shall be under the control and direc-
tion of the Government Comptroller.
(b) The Governor shall appoint a Government Comptroller with the advice
and consent of the Legislature. The Government Comptroller shall hold office
for a term of ten years and until his successor is appointed and is qualified
unless sooner removed by the Governor for cause with the consent of three-
fourths of all the members of the Legislature in formal session. He shall not
be eligible for reappointment. The salary of the Government Comptroller shall
be fixed in the annual budget but shall not be less than $18,000.











36 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

government of the Virgin Islands and of funds derived from bond issues; and
he shall audit and settle, in accordance with law and administrative regulations,
(c) The Government Comptroller shall audit and settle all accounts and
claims pertaining to the revenues and receipts from whatever sources of the
all expenditures of funds and property pertaining to the government of the
Virgin Islands including those pertaining to trust funds held by the government
of the Virgin Islands.
(d) It shall be the duty of the Government Comptroller to bring to the atten-
tion of the proper administrative officer failures to collect amounts due to the
government, and expenditures of funds or property which in his opinion are
extravagant, excessive, unnecessary, or irregular.
(e) It shall be the duty of the Governor, upon the recommendation of the
Government Comptroller, to certify to the Secretary of the Interior the net
amount of government revenues which form the basis for Federal grants for
the civil government of the Virgin Islands.
(f) The decisions ,of the Government Comptroller shall be final except that
appeal therefrom may be taken by the party aggrieved or the head of the
department concerned within one year from the date of the decision, to the
Governor, which appeal shall be in writing and shall specifically set forth the
particular action of the Government Comptroller to which exception is taken
with the reasons and the authorities relied upon for reversing such decisions.
(g) If the Governor confirms the decision of the Government Comptroller,
relief may be sought by suit in a court of competent jurisdiction.
(h) The Government Comptroller is authorized to communicate directly with
any person having claims before him for settlement, or with any department,
officer or person having -official relations with his office. He may summon
witness and administer oaths.
(i) As soon after the close of each fiscal year as the account of said fiscal
year may be examined and adjusted, the Government Comptroller shall submit
to the Governor and to the Legislature an annual report of the fiscal condition
of the government, showing receipts and disbursements of the various depart-
ments and agencies of the government.
(j) The Government Comptroller shall make such other reports as may be
required by the Governor of the Virgin Islands, the Comptroller General of the
United 'States or the Secretary of the Interior.
15. The Governor shall establish and maintain systems of accounting and
internal control designed to provide:
(a) full disclosure of the financial results of the government's activities;
(b) adequate financial information needed for the government's management
purposes;
(c) effective control over and accountability for all funds, property, and
other assets for which the government is responsible, including appropriate
internal audit;
(d) reliable accounting results to serve as the basis for preparation and
support of the governor's certification of local revenues, the Governor's budget
request to the legislature, and for controlling the executive of the said budget.

Review of Office and Activities of Government Comptroller, Reports

The office and activities of the Government Comptroller of the Virgin Islands
shall be subject to review annually by the Comptroller General of the United











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 37

States, and report thereon shall be made by him to the Governor, the Legislature,
the Secretary of the Interior, and to the Congress.
16. The proceeds of custom duties, the proceeds of the United States Income
Tax, the proceeds of any taxes levied by the Congress on the inhabitants of
the Virgin Islands, and the proceeds of all quarantine, passport, immigration
and naturalization fees collected in the Virgin Islands, less the cost of collect-
ing all of said duties, taxes, and fees, shall be covered into the Treasury of
the Virgin Islands, and shall be available for expenditures as the Legislature
of the Virgin Islands may provide: Provided that the term "inhabitants of the
Virgin Islands" as used in this section shall include all persons whose' per-
manent residence is in the Virgin Islands, and such persons shall satisfy their
income tax obligations under applicable taxing statutes of the United States
by paying their tax on income derived from all sources both within and out-
side the Virgin Islands into the Treasury of the Virgin Islands: Provided,
further, that nothing in this Act shall be construed toaapply to any tax specified
in section 3811 of the Internal Revenue Code.
(c) Section 42 of the Trade Mark Act of 1946 (60 Stat. 440, 15 U.S.C.,
1952 Edition, sec. 1124) and Section 526 of the Tariff Act of 1930 (46 Stat. 741,
19 U.S.C., 1952 Edition, sec. 1526), shall not apply to importations into the
Virgin Islands of genuine foreign merchandise bearing a genuine foreign
trade-mark, but shall remain applicable to importations of such merchandise
from the Virgin Islands into the United States or its possessions; and the
dealing in or possession of any such merchandise in the Virgin Islands shall
not constitute a violation of any registrant's right under said Trade Mark Act.
(d) There shall be levied, collected, and paid unto all articles coming into
the United States or its possessions from the Virgin Islands the rates of duty
which are required to be levied, collected, and paid upon like articles imported
from foreign countries, and the internal revenue taxes imposed by section 3350
of Title 26, United States Code. Provided, That all articles, the growth or
product of, or manufactured in such islands, from materials grown or pro-
duced in such islands or in the United States, or both, or which do not contain
foreign materials to the value of more than 50 per centum of their total value,
upon which no drawback of customs duties has been allowed therein, coming
into the United States from such islands shall be admitted free of duty. In
determining whether such a Virgin Island article contains foreign material to
the value of more than 50 per centum, no material shall be considered foreign
which, at the time the Virgin Islands article is entered, or withdrawn from
warehouse, for consumption, may be imported into the continental United States
free of duty generally.

17. (b) Subchapter B of Chapter 28 of the Internal Revenue Code is amended
by adding to section 3350 thereof the following subsection :
(c) Disposition of Internal Revenue Collections-The Secretary of the Treas-
ury shall determine annually the amount of all taxes imposed by, and collected
during the fiscal year under the internal revenue laws of the United States on
articles produced in the Virgin Islands and transported to the United States.
The amount so determined less one per centum and less the estimated amount of
refunds or credits shall be subject to disposition as follows:
(i) There shall be transferred and paid over to the government of the
Virgin Islands from the amounts so determined a sum equal to the total
amount of revenue collected by the government of the Virgin Islands during
the fiscal year, as certified by the Governor of the Virgin Islands. The











38 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

moneys so transferred and paid over shall constitute a separate fund in the
Treasury of the Virgin Islands and may be expended as the legislature may
determine.
(ii) If at the end of any fiscal year the total of the Federal contribution
made under (i) above at the beginning of the fiscal year has not been obligated
or expended for an approved purpose, the balance shall continue available for
expenditure during any succeeding fiscal year, but only for approved emer-
gency relief purposes and essential public projects.

5 18. Administrators; Residence; Duties; Preference in Appointments.

The Governor shall appoint an Administrator who shall reside in St. Croix
and an Administrator who shall reside in St. John, each of whom shall be con-
firmed by the Legislature of the Virgin Islands. Administrators shall perform
such duties as may be assigned to them by the Governor, or prescribed by law.
In making such appointments, preference shall be given to qualified residents of
the Virgin Islands.

19. District Court of the Virgin Islands, and Inferior Courts.

The Judicial power of the Virgin Islands shall be vested in a Court of record to
be designated the "District Court of the Virgin Islands," and in such court or
courts of inferior jurisdiction as may have been or may hereafter be established
by local law ....

5 20. Jurisdiction of District Court; Transfer of Actions.

The District Court of the Virgin Islands shall have jurisdiction of a district
court of the United States in all causes arising under the Constitution, treaties
and laws of the United States, regardless of the sum or value of the matter in
controversy. lit shall have general original jurisdiction in all other causes in the
Virgin Islands, exclusive jurisdiction over which is not conferred by this Act
upon the inferior courts of the Virgin Islands. When it is in the interest of justice
to do so, the district court may on motion of any party transfer to the district
court any action or proceeding brought in an inferior court and the district court
shall have jurisdiction to hear and determine such action or proceeding. The
District Court shall also have appellate jurisdiction to review the judgments and
orders of the inferior courts of the Virgin Islands to the extent now or hereafter
prescribed by local law.

21. Jurisdiction of Inferior Courts; Transfer of Action; Status as Com-
mitting Court; Bail; Rules.

The inferior courts now or hereafter established by local law shall have
exclusive original jurisdiction of all civil actions wherein the matter in con-
troversy does not exceed the sum or value of $500, exclusive of interest and
costs, all criminal cases wherein the maximum punishment which may be im-
posed does not exceed a fine of $100 or imprisonment for six months, or both,
and all violations of police and executive regulations, and they shall have
original jurisdiction, concurrently with the district court, of all actions, civil or
criminal, jurisdiction of which may hereafter be conferred upon them by local
law. Any action or proceeding brought in the district court which is within the
jurisdiction of an inferior court may be transferred to such inferior court by











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


the district court in the interest of justice. The inferior court shall hold pre-
liminary investigation in charges of felony and charges of misdemeanor in which
the punishment that may be imposed is beyond the jurisdiction granted to the
inferior courts by this section, and shall commit offenders to the district court
and grant bail in bailable cases. The rules governing the practice and procedure
of the inferior courts and prescribing the duties of the judges and officers thereof,
oaths and bonds, the times and places of holding court, and the procedure for
appeals to the district court shall be as may hereafter be established by the
district court. The rules governing disposition of fines, costs and forfeitures,
enforcement of judgments, and disposition and treatment of prisoners shall be
as established by law or ordinance in force on the date of approval of this Act
or as may hereafter be so established.

22. Judge of the District Court; Tenure; Removal; Compensation;
Assignment of Other Judges, Marshals.

The President shall, by and with the advice and consent of the Senate, appoint
a judge for the District Court of the Virgin Islands, who shall hold office for
the term of eight years and until his successor is chosen and qualified, unless
sooner removed by the President for cause. The salary of the judge of the
district court shall be at the rate prescribed for judges of the United States
district courts. Whenever it is made to appear that such an assignment is
necessary for the proper dispatch of the business of the District Court of the
Chief Judge of the Third Judicial Circuit of the United States may assign a
circuit or district judge of the Third Circuit, or the Chief Justice of the United
States may assign any other United States circuit or district judge with the
consent of the judge so assigned and of the chief judge of his circuit, to serve
temporarily as a judge of the District Court of the Virgin Islands. The com-
pensation of the judge of the district court and the administrative expenses of
the court shall be paid from appropriations made for the judiciary of the United
States. The Attorney General shall appoint a United States Marshal and Deputy
Marshals for the Virgin Islands, to whose office the provisions of chapter 33 of
Title 28, United States Code shall apply.

23. Judicial Division; Session; Applicability of Procedural Rules;
Prosecution by Information or Indictment.

The Virgin Islands consists of two judicial divisions, the Division of Saint
Croix, comprising the island of St. Croix and adjacent islands, and cays, and
the Division of St. Thomas and Saint John, comprising the islands of Saint
Thomas and Saint John and adjacent islands and cays. The district court
shall hold sessions in each division at such times as the court may designate
by rule or order, at least once in three months in each division. The rules of
practice and procedure heretofore or hereafter promulgated and made effective
by the Supreme Court of the United States pursuant to section 2072 of Title 28,
United States Code in admiralty cases, and section 30 of the Bankruptcy Act
in bankruptcy cases shall apply to the District Court of the Virgin Islands and
to appeals therefrom. All offenses shall continue to be prosecuted in the Dis-
trict Court by information as heretofore except such as may be required 'by local
law to be prosecuted by indictment by grand jury.











40 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

24. Trial by Jury.

All criminal cases originating in the district court shall be tried by jury upon
demand by the defendant or by the Government. If no jury is demanded the
case shall be tried by the Judge of the district court without a jury, except
the judge may, on his own motion, order a jury for the trial of any criminal
action. The legislature may provide for trial in misdemeanor cases by a jury of
six qualified persons.

25. United States Attorney and Assistant; Application of Title 28,
Chapter 31, United States Code; Powers, Duties; Vacancies.

The President shall, by and with the advice and consent of the Senate, appoint
a United States attorney and assistant United States Attorneys for the Virgin
Islands to whose office the provisions of chapter 31 of Title 28, United States Code,
shall apply. Except as otherwise provided by law it shall be the duty of the
United States attorney to prosecute all offenses against the United States and
to conduct all legal proceedings, civil and criminal, to which the Government
of the United States is a party in the district court and in the inferior courts
of the United States. He shall also prosecute in the district court in the name
of the Government of the Virgin Islands all offenses against the laws of the
Virgin Islands which are cognizable by that court unless, at his request or
with his consent the prosecution of any such case is conducted by the Attorney
General of the Virgin Islands. The United States attorney, may, when re-
quested by the Governor or the Attorney General of the Virgin Islands, conduct
any other legal proceedings to which the Government of the Virgin Islands is
a party in the district or the inferior courts of the Virgin Islands. In the
case of a vacancy in the office of the United States attorney, the District Court
may appoint a United 'States attorney to serve until the vacancy is filled. The
order of appointment by the court shall be filed with the clerk of the court.

MISCELLANEOUS PROVISIONS

26. United States Citizenship Requirement of Government Officials;
Loyalty Statement.

All officials of the Government of the Virgin Islands shall be citizens of the
United States. Every member of the Legislature of the Virgin Islands and all
officers and employees of the Government of the Virgin Islands shall before
entering upon the duties of their respective offices, or, in the case of persons
in the employ of the Government of the Virgin Islands on the effective date of
this Act, then within 60 days of the effective date hereof, make a written state-
ment in the following form:
"I, -------_, do solemnly swear (or affirm) that I will support, obey, and
defend the Constitution and laws of the United States applicable to the Virgin
Islands and the laws of the Islands, and that I will discharge the duties of
------- with fidelity.
"And I do further swear (or affirm) that I do not advocate, nor am I knowingly
a member of an organization that advocates, the overthrow of the Government of
the United States or of the Virgin Islands by force or violence or other uncon-
stitutional means, or seeking by force or violence to 'deny other persons their











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


rights under the Constitution and laws of the United States applicable to the
Virgin Islands.
"And I do further swear (or affirm) that I will not so advocate nor will I
knowingly become a member of such organization during the period that I am
an employee of the Virgin Islands."

27. Reports by Governor; Jurisdiction of Secretary of the Interior;
Exceptions.

All reports required by law to be made by the Governor to any official of
the United States shall hereafter be made to the Secretary of the Interior, and
the President is hereby authorized to place all matters pertaining to the govern-
ment of the Virgin Islands under the Jurisdiction of the Secretary of the Interior,
except matters relating to the judicial branch of said government which on
the date of approval of this Act are under the supervision of the Director
of the Administrative Office of the United States Courts, and the matters relat-
ing to the United States Attorney and the United States Marshal which on
the date of approval of this Act are under the supervision of the Attorney
General.

28. Lease, Sale, and Control of Public Property.

(a) The Secretary of the Interior hereby is authorized to lease or sell upon
such terms as he may deem advantageous to the Government of the United States
any property of the United 'States under his administrative supervision in the
Virgin Islands not needed for public purposes.
(b) The government of the Virgin Islands shall continue to have control
over all public property that is under its control on the date of approval of
this Act.

5 29. Amendment of 1890 Act Relating to Importation of Diseased
Animals.

Section 6 of the Act of August 30, 1890 (26 Stat. 414, 416), as amended (21
U.S.C., 1946 Edition, sec. 104), is further amended by inserting the words "and
the admission into the Virgin Islands" immediately following the word "Texas,"
so that such section will read as follows:
"The importation of cattle, sheep, and other ruminants, and swine, which
are diseased or infected with any disease, or which shall have been exposed
to such infection within sixty days next before their exportation, is prohibited:
Provided, that the Secretary of Agriculture within his discretion and under such
regulations as he may prescribe is authorized to permit the admission from
Mexico into the State of Texas and the admission into the Virgin Islands of
cattle which have been infested with or exposed to ticks upon being freed
therefrom. Any person who shall knowingly violate the foregoing provisions
shall be deemed guilty of a misdemeanor and shall, on conviction, be punished
by a fine not exceeding $5,000, or by imprisonment not exceeding three years,
and any vessel or vehicle used in such unlawful importation within the knowl-
edge of the master or owner of such vessel or vehicle that such importation is
diseased or has been exposed to infection as herein described, shall be forfeited
to the United States.











42 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

30. Amendment of 1903 Act Relating to Prevention of Introduction
and Dissemination of Contagious Diseases of Animals, Poultry:
Etc.
Section 2 of the Act of February 2, 1903 (32 Stat. 791, 792), as amended (21
U.S.C., 1946 Edition, sec. 111), is hereby further amended by striking out the
period and adding at the end thereof the following: "Provided, That no such
regulations or measure shall pertain to the introduction of live poultry into the
Virgin Islands of the United States."

31. Effective Date; Temporary Continuation of Functions and of In-
cumbents in Offices; Preservation of Term of Office of District
Court Judges in Office.
This Act shall take effect upon its approval, but until its provisions shall
severally become operative as herein provided, the corresponding legislative,
executive, and judicial functions of the existing government shall continue to be
exercised as now provided by law or ordinance, and the incumbents of all
offices under the government of the Virgin Islands shall continue in office until
their successors are appointed and have qualified unless sooner removed by com-
petent authority. The enactment of this Act shall not affect the term of office
of the judge of the District Court of the Virgin Islands in office on the date of
its enactment.

32. Appropriations.
There are hereby authorized to be appropriated annually by the Congress of
the United States such sums as may be necessary and appropriate to carry out
the provisions and purposes of this Act.

AMENDMENTS AND REVISIONS

33. Proposal of Amendments and Revisions by the Legislature of the
Virgin Islands.
The Legislature of the Virgin Islands may propose amendments and revisions
to this Organic Act by a vote of not less than two-thirds of the total number of
members of which the Legislature is composed. All proposed amendments and
revisions shall be submitted to both Houses of the Congress and if approved by
both Houses of the Congress shall become effective as constituent parts of the
Organic Act upon the approval of the President of the United States.

34. Proposal of Amendments and Revisions by Popular Initiative.
Amendments and revisions of this Organic Act may be proposed to the Legis-
lature of the Virgin Islands by means of a petition signed by not less than ten
percent of the qualified voters. If the Legislature approves the proposed amend-
ments or revisions by a vote of not less than two-thirds of the total number of
members of which the Legislature is composed, said amendments and revisions
shall be submitted to both Houses of the Congress and if approved by both
Houses of the Congress shall become effective as constituent parts of the Organic
Act upon the approval of the President of the United States.
If the Legislature rejects, fails to act upon, or substitutes other amendments
or revisions for the amendments or revisions proposed by the people through
the initiative, the proposals of the people go on ballot at the next general elec-











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


tion. If such proposals are approved by a majority of the voters voting on the
matter, said proposed amendments or revisions shall be submitted to both Houses
of the Congress by the Governor and if approved by both Houses of the Congress
shall become effective as constituent parts of the Organic Act upon the approval
of the President of the United States.

3 35. Proposals of Amendments and Revisions by a Constitutional Con-
vention.
The Legislature of the Virgin Islands by a vote of not less than two-thirds of
the total number of members which it is composed may submit to the qualified
voters at a referendum held at the same time as a general election, the question,
"Shall there be a Constitutional Convention to propose amendments and revi-
sions to the Organic Act?" If a majority of the qualified voters voting on this
question vote in favor of calling a constitutional convention, such convention
shall be called by the Legislature and delegates elected in such manner as pro-
vided by law.
Amendments or revisions made by the Constitutional Convention after being
approved by a vote of not less than two-thirds of the total number of members
of which it is composed shall then be submitted to both Houses of the Congress
by the presiding officer of the Convention and if approved by both Houses of
the Congress shall become effective as constituent parts of the Organic Act upon
the approval of the President of the United States.

36. Separability of Provisions.
If any clause, sentence, paragraph, or part of this Act, or the application there-
of to any person, or circumstances is held invalid, the application thereof to
other persons, or circumstances and the remainder of the Act, shall not be affected
thereby.
This Act shall take effect upon its approval.
Thus passed by the Convention on February 26, 1965:
Witness our Hands and Seals this 26th Day of February, A.D., 1965.
AUBREY A. ANDUZE, President.
WARREN E. BROWN, Secretary.

MEMBERSHIP CONSTITUTIONAL CONVENTION


ABRAMSON, ANN E.
ANDUZE, AUBREY A.
ANDUZE, VIVIAN
BOSCHULTZE, BERTHA C.
BOUGH, JAMES A.
BRIDGEMAN, JAMES
BROWN, WARREN
BRYAN, OLARICE, A.
OALLWOOD, HORACE A.
COLE, LEE M., JR.
DE (ASTRO, MORRIS
DE OHABERT, MARIO
DE LUGO, RONALD
DOWARD, AUGUSTIN
FELIX, BASILIO
FRANCIS, FELIX A.
GARCIA. VINOENTE GAROIA


HENDERSON, JAMES O'NEAL
JAMES, RANDALL N.
LAWAETZ, FRITS E.
MADURO, JOHN L.
MOOREHEAD, THEOVALD E.
MORALES, DIAZ AUREO
OTTLEY, EARLE B.
PURITZ, A. DAVID
REESE, PERCIVAL H.
ROUSS, RUBY M.
SOHADE, AXEL
SEWER, ROY
SPRAUVE, JULIUS E., JR.
SUAREZ, ANGEL, JR.
TORRES, MANUEL
TURNBULL, CHARLES W.










Power and Water Utilities


On June 1, 1965, the Government of the Virgin Islands purchased
the Virgin Islands Corporation's water and power facilities for over
$7 million. By so doing, it became responsible for supplying electric
power to nearly 15,000 customers, and for producing about one-third
of the potable water requirements of St. Thomas. At year end, this
involved the operation of two powerplants having a combined capacity
of 22,000 kilowatts; the maintenance and expansion of over 600 miles
of electric power distribution lines on St. Thomas, St. Croix, and St.
John; and the operation of a water distillation plant capable of pro-
ducing over 300,000 gallons a day.
The transfer of the power and water facilities had been planned
since August 1963 when VICORP's board of directors voted to sell
the facilities at fair market value to the local government. In Octo-
ber 1964, a firm of engineers employed by the General Services Admin-
istration completed an independent appraisal of the facilities.
VICORP sold the facilities to the Government of the Virgin Islands
as of May 31, 1965, at the appraisal price of $6.5 million established
by GSA's engineers plus the net cost of additions made subsequent to
September 30, 1964.
About 235 Federal employees transferred to the local government
and became employees of the Virgin Islands Water and Power Author-
ity. The legislature, under the provisions of act 1248, approved
August 13, 1964, had established the Authority as an independent
agency to operate and expand the facilities.
The Authority's governing board is comprised of five members: the
Governor, who is chairman; the Commissioner of Public Works, vice-
chairman; the Commissioner of Commerce, and two local businessmen.
The Board held two meetings in fiscal year of 1965; November 1964
and in May 1965 shortly before the sale of the VICORP facilities.
Pending the appointment of an Executive Director and the adoption
of bylaws, the chairman became responsible for day-to-day manage-
ment of the facilities, and this arrangement was in effect at year end.
During the period leading to transfer of the facilities, VICORP
lacked the funds needed to finance expansion of its power plants and
electric distribution lines. The phenomenal economic growth of the
Virgin Islands has resulted in an average power load growth of about
18 percent a year, a rate more than double the growth rate experienced









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


in the continental United States. Recognizing that generating facil-
ities on St. Thomas were inadequate, the local government in fiscal
year 1964 solicited bids for a new 7,500-kilowatt steam turbine gen-
erator and a 1 million gallons-per-day water conversion plant in St.
Thomas. In October 1964 a contract for $2,650,000 was awarded to
Westinghouse Electric International Co. for construction of this plant.
The initial ground-breaking ceremonies, which were attended by the
Assistant Secretary of the Interior, were held in December 1964. The
new plant has over twice the generating capacity of the largest prior
VICORP installation and more than three times as much water pro-
duction capability. It is scheduled to be completed in the first half
of fiscal year 1966.
VICORP completed the installation of a 2,400-kilowatt diesel gen-
erator at St. Croix in 'September 1964. 'Shortly thereafter, the local
government assigned its consulting engineers to the task of surveying
the potential load growth of the economic development of St. Croix
and determining the optimum type of generating unit for the island.
At the close of fiscal year the consulting engineers were completing the
plans and specifications for the new 7,500-kilowatt steam turbine gen-
erator for St. Croix, which included provisions for the future addition
of a 1 million gallons-per-day evaporator.


205-504 0-66---4










Virgin Islands Corporation


The Virgin Islands Corporation is a wholly-owned Government cor-
poration, created by the act of June 30, 1949, as successor to the Virgin
Islands Company incorporated in 1934. Pursuant to this act, the
President of the United States designated the Secretary of the Inte-
rior as his representative to exercise general direction over the Corpora-
tion. Under Public Law 85-913, approved September 2, 1958, the
Corporation's charter was extended 10 years to June 30, 1969, unless
sooner dissolved by act of Congress.
The Corporation was created to help boost the economy of the
islands and over the years has managed a number of important func-
tions and facilities. Its major activities have been the growing of
sugarcane, operation of a raw sugar mill, generation and distribution
of electric power, land management, and the conversion of salt water
to fresh water.
According to present plans, the Corporation's charter will not be
renewed in 1969, and the local government, in cooperation with
VICORP management, is working to achieve the transfer of functions
and properties of the federally-owned activity. Many of these already
have been accomplished.
The first major transfer occurred early in 1964 on St. Thomas with
the deeding of 125 acres of excess Navy land at Bourne Field to the
college trustees as a site for the College of the Virgin Islands. Ad-
ditional VICORP land on St. Croix is scheduled to be transferred to
be used for a campus and instructional center of the college on that
island.
One of the main functions of VICORP had been sugar milling and
the administration of land in St. Croix devoted to the growing of
sugarcane. When the Congress of the United States, in 1963, refused
to underwrite the Corporation's losses on its sugar operations, the
local government found itself covering the losses with funds needed
for education, health, and other services. Since St. Croix's labor force
was not dependent on the sugar operation and other agricultural uses
promised better profits for small farmers, VICORP decided to phase
out its sugar activities and offered to sell most of its 2,000 acres de-
voted to the sugar business. The successful bidder for the land agreed
to keep the mill in operation through June 30, 1966. By that time, in-
dustrial and agricultural expansion on a diversified basis is expected

























REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 47

to provide new employment opportunities and land development for
small farmers.
On May 31, 1965, the VICORP power and water operation was
transferred to the local government for a negotiated price of more
than $7 million. The Government immediately embarked on an ex-
tensive expansion program.
Also on May 31, 1965, VICORP issued a permit to the Virgin
Islands Government to manage the Harry S. Truman Airport and the
submarine base on St. Thomas for an interim period until the land and
buildings could be transferred to them by the General Services Ad-
ministration. This is expected to be accomplished by early 1966.
Plans for the remaining VICORP acres include use as sites for
educational facilities, housing projects, a medical center, municipal
park and recreation area, and other needed Government services.










Virgin Islands

Government News Bureau


Personnel: 3 Operating Appropriation: $75,000
Operating as a section of the Governor's Office, the News Bureau
has completed its second fiscal year as the instrument responsible for
Virgin Islands public relations and publicity activities.
The principal continuing assignment was that of supplying news,
feature articles and photographs for release to newspapers, magazines,
broadcast media and travel trade papers in support of tourism and
economic development. The News Bureau worked closely with the
Virgin Islands' public relations agency, which is the dissemination
center on the mainland. This agency continued to provide services, on
an every-day basis, of six public relations specialists in the placement
of Virgin Islands promotional materials with mass media.
The result of this coordinated public relations effort was the publi-
cation and broadcast of millions of dollars worth of free space and
time featuring the Virgin Islands.
Hundreds of newspapers, representing a cross section of the entire
mainland, carried Virgin Islands copy. National magazines of gen-
eral readership interest with a total circulation of 17,714,000 published
Virgin Islands pictures and text. If paid for at space rates, this
would have cost a minimum of $316,776.22. Business and trade pub-
lications with circulation of 517,028 gave additional exposure to the
islands worth $10,279.60 if purchased.
During the fiscal year, the islands were honored by the visits of
many newsworthy persons, including Mrs. Lyndon B. Johnson, Vice
President Elect Hubert H. Humphrey and United Nations Secretary
General U Thant. The News Bureau and public relations agency
worked closely with press representatives covering these distinguished
visitors. The resultant editorial space and time devoted to these
VIP's and their activities in the islands yielded a priceless bonus in
favorable publicity. For example, clippings received showed that at
least 2,344 individual stories and photographs of the First Lady's
visit appeared in media with a total circulation of over 181 million
readers. The value of this coverage in news space alone far exceeds
what the islands spent on paid advertising for the entire year.
Another event which was exploited with unusual success was the
catching of the world's record blue marlin in Virgin Islands waters





















REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


in July, 1964. News of the catch, with the big fish weighing 814
pounds, helped to usher in a new era in game fishing. Feature articles
and photographs appeared in hundreds of publications, and this
standing record continues to be mentioned regularly in fishing
magazines.
During the year, the News Bureau continued to work with writers,
photographers, and broadcast representatives who visited the islands
professionally. Assistance also was given to motion-picture com-
panies, authors of travel books, advertising and promotional firms
using Virgin Islands locations for their photographic work.
As a collateral duty, the News Bureau made available its services to
the various departments and agencies of the executive branch in dis-
seminating local government news.
During its regular session, the legislature recognized the competitive
pressures being exerted by other Caribbean islands' tourism budgets,
which run into the millions of dollars. To help counteract these pres-
sures, an increase in the Bureau's staff and facilities was authorized for
the next fiscal year. Expansion of services will include the establish-
ment of an office on St. Croix and the setting up of a central photo-
graphic facility. As of July 1, 1965, the name of the organization will
be Virgin Islands Government Office of Public Relations and
Information.











Control of Processing of

Woolen Yard Goods



During the year, control was implemented and continued over the
processing of woven woolen yard goods by the imposition of quotas
to control the flow of such foreign material through the Virgin Islands
into the United States. These controls are maintained by the imposi-
tion of a 1 cent-per-yard tax within established quotas and 65 cents-
per-yard tax on the excess over the said quotas.
Quotas are -assigned for a calendar year. The following is a record
of quotas from the commencement of control in 1963, with a record
of shipments within the quota:

Quota Actual ship-
Classification Period allowed ments (linear
(linear yds.) yds.)

Knitted worsted and/or woolen Mar. 25, 1963 to 1, 000, 000 112, 559
cloth. Dec. 31, 1963.
Thermal laminated woolen cloth_ Mar. 25, 1963 to 375, 000 88, 282
Dec. 31, 1963.
Shower-proof woolen cloth _____- Mar. 25, 1963 to 5, 000, 000 3, 778, 376
Dec. 31, 1963.
Knitted worsted and/or woolen 1964-------- 1, 300, 000 220, 760
cloth.
Thermal laminated woolen cloth. 1964-------- 500, 000 74, 476
Shower-proof woolen cloth ------ 1964 ------------- 1, 000, 000 494, 474


For the calendar year 1965, these quotas were assigned:
Woven woolen yard goods (combination of thermal laminated
and shower-proof) : 1,650,000 linear yards
Knitted worsted and/or woolen cloth: 1,150,000 linear yards
In addition to the above, within the 1964 classification of shower-
proof woolen cloth, unused 1964 quotas totaling 505,526 linear yards
were allowed to be carried over into 1965.
The report of the Hearing Board dated November 30, 1964, is quoted
in full:
REPORT AND RECOMMENDATIONS
of Hearing Board on Production Taxes Imposed on Woolen Yard Goods by Act
No. 971 of the Virgin Islands, approved March 25, 1963, as amended by Act
No. 1080 approved February 20, 1964.












REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 51

The Law

1. Act No. 971 (Bill No. 1869), Fifth Legislature of the Virgin Islands of the
United States, Regular Session, 1963, To Impose Certain Production Taxes and
For Other Purposes, became effective on March 25, 1963, the date of its approval
by the Governor of the Virgin Islands. It enacted a new Chapter 9 entitled
"Production Taxes" to Part I, Subtitle 1, Title 33, Virgin Islands Code. It was
amended by Act No. 1080 (Bill No. 2054), approved February 20, 1964. Section
504, Subsections (a), (b), (d) and (e) as amended are as follows:
"(a) The Governor shall determine, after due investigation, the maximum
amount of woolen yard goods production in the Virgin Islands which is con-
sistent with the protection of the economic stability and commercial relations
of the Virgin Islands. Due notice shall be given and interested parties shall be
afforded an opportunity to present comments and information at a public hear-
ing. In making any determination or determinations under this section, the
Governor shall take into account, among other relevant factors, the benefit or
detriment resulting from the applicability of the provisions of Section 301 of
the Tariff Act of 1930, as amended, to Virgin Islands products, including problems
of the type which led to expressions of concern on the floor of the 87th Congress
over possible abuse and excessive use of said provisions.
"(b) Upon the proclamation by the Governor of any determination or deter-
minations made pursuant to subsection (a) of this section, the rate of tax im-
posed by this chapter shall be 1 cent per yard upon the amount of woolen yard
goods production set forth in such determination or determinations to be con-
sistent with the economic stability and commercial relations of the Virgin Islands;
and the rate of tax on the excess of such amount shall be 65 cents per yard.
"(d) In carrying out the provisions of this chapter, the Governor shall have
authority to make such classifications of woolen yard goods as he may determine
appropriate for purposes of this chapter, and may prescribe different maximum
amounts for different classifications.
"(e) The Governor shall have authority to determine the periods to be covered
in granting applications, and may determine that applications shall be granted
in whole or in part for a calendar year or for a period smaller than a calendar
year. He may prescribe for renewal of applications in whole or in part."

The Hearing Board

2. Honorable Ralph M. Paiewonsky, Governor of the Virgin Islands, on July
15, 1964, appointed an ad hoc Hearing Board consisting of Morris F. de Castro
as Chairman, A. J. Prendergast, John J. Kirwan, Harold Leventhal, and Oscar
Gass to hold hearings for and on behalf of the Governor pursuant to Section
504(a) of Title 33, Virgin Islands Code for the purpose of recommending to
the Governor quotas to be established for woolen yard goods in the various
classifications for the calendar year 1965. The Attorney General, Francisco
Corneiro, was designated Legal Advisor to the Board and Mr. Darwin Creque
was designated Trade Advisor to the Board.
3. On September 29, 1964, the Hearing Board issued a notice of Public Hear-
ings to be held in Charlotte Amalie, St. Thomas, Virgin Islands on November
12, 1964, and a hearing was duly held on that date, at which representatives
of Buccaneer Mills, Inc., Kent Company, Inc., and Vitex Manufacturing Ltd.,
all of the Virgin Islands, appeared and testified. A letter was received from
Apache Mills.












52 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Position of U.S. Department of Commerce

4. The following letter was received from Honorable Luther H. Hodges, Secre-
tary of Commerce of the United States:

"THE SECRETARY OF COMMERCE,
Washington, D.C., 20230.

THE HONORABLE RALPH M. PAIEWONBKY
The Governor of the Virgin Islands
Charlotte Amalie
St. Thomas

DEAR GOVERNOR PAIEWONSKY:
It is my understanding that the Government of the Virgin Islands will hold
a public hearing on November 12 for the purpose of aiding you in determining
the maximum amount of wool yard goods production in the Virgin Islands dur-
ing 1965 which is consistent with the protection of the economic stability and
commercial relations of the Virgin Islands. Because I know that it is your
desire to provide for economic development in the Virgin Islands without damag-
ing American mainland industries, I thought this review of the situation would
be helpful to you.
I recall the excellent cooperation we enjoyed in 1963 when you set the
quotas for the purpose of production taxes on foreign wool yard goods processed
in the Virgin Islands for the calendar year 1964. Your action in 1963 was most
successful in relieving the pressures on us to seek legislation to reduce the flow
of imports of wool fabrics through the Virgin Islands.
We continue to face a very serious problem with the domestic wool textile in-
dustry. Imports of foreign wool textiles are one of the major reasons for the
depressed state of this industry. The Administration made a major effort this
year to bring the principal exporting countries to an international conference
for the purpose of negotiating a multi-lateral marketing agreement. Unfortu-
nately, these efforts have not been successful to date. Nevertheless, President
Johnson recently reaffirmed this Administration's commitment to find a solution
to the import problem.
From the point of view of the domestic industry, conditions have not improved
since early 1963 when we first corresponded about this matter. Therefore, any
substantial increase in duty-free imports into the United States of foreign wool
textiles through the Virgin Islands would deeply concern us. I will be glad to
have members of my staff submit to you or to the Hearing Board any additional
information that you believe may be helpful in arriving at a decision on this
matter.
Sincerely yours,
(S) LUTHER H. HODGES,
Secretary of Commerce"

Requests for Increase in Quotas

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












REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 53


Linear yards
Classifications _____
Quota 1963 Quota 1964


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

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


6. The companies referred to above filed and presented requests for quotas
totalling 8,800,000 linear yards for 1965.

Overall Quota Assignment for 1965

7. Taking particularly into account the statements of the Secretary of Com-
merce quoted above, the Board has concluded and recommends that the overall
quota for the woolen yard industry for the calendar year 1965 should not be
increased above the quota permitted for the calendar year 1964, namely, 2,800,000
linear yards.

Classifications for 1965

8. In the current structure of business operations in the Virgin Islands, the
Board finds no useful purpose will be served by continuing separate classifica-
tions for Thermal laminated woolen cloth and Shower-proof woolen cloth. The
difference in mechanics of manufacture do not seem, on further consideration, to
define differences in kind of cloth of such degree as to warrant wholly separate
commodity classifications. The Board recommends to the Governor two classi-
fications for woolen yard goods. There are:
(a) Woven Woolen Yard Goods
(b) Knitted Worsted and/or Woolen Cloth including Cloth knitted from a
Blend of Wool and other fibers.
"Woolen Yard Goods," for the purpose of this Act, is a term of art, to be inter-
preted as meaning goods of which the original material is partly or entirely wool
(rather than cotton, silk, rayon or some other material) and which are, in ordi-
nary business practice, sold by the yard.

Production Subject to One Cent Tax in 1965

9. Of the classification designated Woven Woolen Yard Goods (a combination
of the former classifications of Thermal laminated woolen cloth and Shower-proof
woolen cloth) the Board recommends that a quantity of
1,650,000 linear yards
be made subject to the tax of 1 cent per yard for the period January 1, 1965, to
December 31, 1965.











54 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

10. Of the classification designated knitted worsted and/or woolen cloth includ-
ing cloth knitted from a blend of wool and other fibers the Board recommends
that a quantity of
1,150,000 linear yards
be made subject to the tax of one cent per yard for the period January 1, 1965, to
December 31, 1965.

Distribution of Quota and Time Limits

11. For the calendar year 1965 the Board recommends that subject to the re-
serve of 10% provided in the Act to relieve against severe financial hardship, the
full annual quotas should be assigned at once to the applicants for knitted wor-
sted and/or woolen cloth, and that the full annual quota be divided at once among
the three applicants for Woolen Yard Goods in accordance with the criteria set
forth in the Act, namely,
(a) One-half in proportion to capital invested in the Virgin Islands
(b) One-half in proportion to total payroll for the six-month period ending
September 30, 1964.
To avoid any misunderstanding, it should be noted that quotas, whether given
to firms currently in operation or newly established, will be available only to
firms which give substantial evidence that they will definitely be engaged in pro-
duction in the Virgin Islands within the categories established.
12. The Board further recommends that each quota-beneficiary be permitted,
by regulations to be issued by the Governor under Act No. 971,
(a) to ship not more than one-half of its quota during the first six months
of 1965;
provided that any portion not shipped with the first seven months shall lapse and
be available for allocation to another manufacturer;
(b) to ship the remaining half of its quota during the second six months of
1965;
provided that any portion not shipped during the second six months of 1965 or
within a grace period of one month thereafter, namely, through January 31, 1966,
shall lapse.

Conclusion

13. The Board recommends that the Governor
(a) make the classifications of woolen yard goods hereinbefore set forth as
classifications that are appropriate for purposes of Chapter 9 of Title
33, Part I, Subtitle 1 of the Virgin Islands Code;
(b) determine the quotas hereinbefore set forth as the maximum amount
of woolen yard goods production in the Virgin Islands for each of the
classifications which is consistent with the protection of the economic
stability and commercial relations of the Virgin Islands; and
(c) issue the necessary regulations as to restrictions on and time limits for
shipments as recommended in paragraph 12 hereof.

MORRIS F. DE CASTRO
A. J. PRENDERGAST
JOHN J. KIRWAN
OSCAB GASS
HAROLD LEVENTHAL
Dated November 30. 1964.












Control of Manufacture of Watches



During the year, considerable attention was given in the Congress
of the United States to the rapid growth of the watch assembly indus-
try in the Virgin Islands under Headnote 3(a) of the Tariff Act of the
United States. A bill was introduced into the Congress which would,
if enacted, have prohibited the benefits of section 301 as far as this
industry is concerned in all territories.
In order to save the industry, and yet recognizing the need for con-
trol in this area (as in the woolen cloth industry) to limit and mitigate
the danger to the stability of employment in the Virgin Islands and to
their commercial relations with the United States, the Governor ap-
pointed a Special Committee to study the problems and to recommend
a course of action. A hearing was held in Washington on May 27,
1965, and another in the Virgin Islands shortly after the close of the
fiscal year.
Although the Report and Recommendations were issued after the
commencement of the fiscal 1966, it is here quoted in full as a matter
of record. Controls were established by local law as recommended by
the Board on October 1, 1965.
GINSBURG AND FELDMAN,
One Farragut Square South, 163! Eye Street NW.
Washington, D.C., 20006, August 9, 1965.
HONORABLE RALPH M. PAIEWONSKY
Governor
Government House
Charlotte Amalie
St. Thomas, Virgin Islands
DEAR GOVERNOR PAIEWONSKY:
The members of the Committee appointed by you to investigate the watch manu-
facturing industry and to submit such recommendations as they might deem ap-
propriate have met and have completed their report. The report is unanimous.
The Committee held several executive sessions both in Washington and in the
Virgin Islands. In addition, it held two public hearings, at which notices were
given by both direct mail and by newspaper publicity. Every witness seeking
an opportunity to present his views was given an opportunity to do so both orally
and in writing.
On behalf of the entire Committee, I should like to express appreciation for the
cooperation of the witnesses, the members of the industry, and the members of
your Government. We appreciate particularly the freedom you granted us to
make whatever recommendations we feld would he in the best interest of the
Nation and of the Virgin Islands.
Sincerely, [S] Myer Feldman,
MYER FELDMAN.
cc: Mr. Prendergast











56 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

REPORT AND RECOMMENDATIONS

Of the Special Committee to Study Current Problems Which have arisen under
the Tariff Act with Respect to the Virgin Islands Watch Industry

INTRODUCTORY

1. By letters of May 3, 1965, Governor Ralph M. Paiewonsky created a special
Committee to investigate the problems which have arisen under headnote 3(a)
of the Tariff Act with respect to the Virgin Islands watch manufacturing industry
and to submit such recommendations as the Committee might find helpful. The
designated members are: Myer Feldman, Chairman; Morris F. de Castro; Oscar
Gass; John J. Kirwan; Albert Prendergast.
2. After appropriate notice, the Committee held two public hearings: one in
Washington, D.C., on May 27th, and one in Charlotte Amalie, Virgin Islands, on
July 9th. Nineteen witnesses were heard, several testifying on behalf of more
than one interested party. Almost all witnesses supplemented their oral testi-
mony with written statements. The Committee is confident that all major
interests appeared and were heard.
3. On July 2d the Committee sent to all interested parties and publicized a
preliminary formulation of the issues, and requested comments on this pre-
liminary statement. This preliminary statement focused the further testimony
on the issues which seemed to require more precise examination.
4. The Coinmittee has rejected the suggestion that it recommend to the Gov-
ernment of the Virgin Islands deferral of any action pending a variety of other
pending decisions, relating to watches, by various officers and agencies of the
Federal Government.
5. The establishment of a watch-making industry in the Virgin Islands seems
to the Committee a welcome development. The industry offers employment of
higher skill and higher pay than the Island's average. It trains labor in these
higher skills. It utilizes many ancillary services. It pays taxes. It contributes
to giving the Islands' economy a base additional to that of the tourist industry.
6. The Committee also finds that the present rate of expansion in watch manu-
facturing holds great dangers to the stability of employment in the Islands and
to the Islands' commercial relations. To limit and mitigate these dangers, the
Committee makes the following Recommendations. None of them should result
in substantial injury to the industry in the Virgin Islands.

A Production Tax on Watches

7. There should be levied, by the Virgin Islands Government, a production tax
on all watches manufactured in the Islands.
The Governor should have power to define manufacture, by appropriate regula-
tions.
8. This production tax should be at either of two rates, three cents per watch,
or $2.50 per watch.
9. There should be no limitation on the quantity of watches that may be
manufactured on payment of the $2.50 production tax.
10. Watches manufactured in the Virgin Islands for retail sale in the Virgin
Islands should pay a production tax of three cents per watch.
The burden of proof that such watches are destined for local retail sale should
be on the manufacturer. In the absence of such proof, this production should
be accounted against the Designated Production Quantity described below.











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 57

11. Watches manufactured in the Virgin Islands for export other than to the
customs area of the United States shall pay a production tax of there cents per
watch.
Here, too, the burden of proof should be on the manufacturer and the accounting
the same.
12. Watches manufactured in the Virgin Islands for export to the customs area
of the United States should pay a production tax of three cents per watch, pro-
vided such production does not exceed the Designated Production Quantity as-
signed to an individual factory by the Governor, in accordance with the provi-
sions of law.

A Designated Production Quantity

13. A Designated Production Quantity should be set, for all Islands' produc-
tion of watches, and for each factory separately, initially for a six months
period, beginning October 1, 1965 and ending March 31, 1966.
14. Thereafter, if experience justifies, the Designated Production Quantity
might be fixed for a period of 12 months-from April 1, 1966, to March 31, 1967,
and for corresponding periods thereafter.
But the Governor should have discretion to utilize shorter periods, both for
the Islands as a whole and for individual factories, depending upon the experi-
ence under the administration of the program.
15. For the period ending March 31, 1966, the Designated Production Quan-
tity should have two segments, the first for Established Firms, the second for
New Firms and hardship cases. After March 31, 1966, only hardship cases would
fall under the second category.
16. For the period October 1, 1965 to March 31, 1966, the Islands' over-all
Designated Production Quantity should be set at a maximum of 1,500,000 watches
for Established Firms and a maximum of 200,000 watches for New Firms and
hardship cases. This initial quantity takes into consideration growth, adjust-
ment to new conditions and seasonal factors.
17. For all periods after March 31, 1966, the Islands' over-all Designated Pro-
duction Quantity should be set at one-ninth of the total consumption of watches
of all kinds in the customs area of the United States, as such consumption may
develop from time to time.
This Designated Production Quantity is designed to prevent undue dependence
of Virgin Islands' employment on a single product, supplied to a single market.
The Governor shall have authority to utilize suitable indicators of consump-
tion, as available in timely fashion, when required to fix the Designated Produc-
tion Quantity for any period.
18. From the overall Designated Production Quantity for any period after
March 31, 1966, an amount of 5 percent should be set aside, to supplement the
Designated Production Quantity initially assigned to any watch-manufacturing
firm, on petition of hardship and on the Governor's finding that hardship exists.
In reaching such a finding, the Governor may seek counsel from an appropri-
ately constituted advisory group.

Sharing of Designated Production Quantity

19. The Islands' over-all Designated Production Quantity (hereafter ODPQ)
shall be shared among watch-manufacturing firms by assigning to each firm
an individual Designated Production Quantity (hereafter IDPQ).












58 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

The IDPQ shall be communicated to an individual firm as a number of
watches.
20. No. IDPQ shall be assigned to any firm which is not a bona fide manufac-
turer of watches in the Virgin Islands.
21. A firm shall have right, title or interest in an IDPQ only so long as it is
a manufacturer of watches in the Virgin Islands.
But this limitation shall not be construed to affect short and temporary inter-
ruptions of production, due to normal business reasons.
Nor shall this limitation be construed to prevent the bona fide sale of a firm,
together with its IDPQ rights. However, no IDPQ, nor any part thereof, may
be assigned except in connection with the sale of the firm.
The Governor shall have power to enforce this rule, by appropriate safeguards.
22. In the assignment of IDPQ's valid up to March 31, 1966, an Established
Firm is to be defined as one having a continuous watch manufacturing and ship-
ping record in the Virgin Islands since October 1, 1964.
In assignment of IDPQ's valid after March 31, 1966, there shall be no dis-
tinction of established and new firms, but any firm in production less than nine
months may request the Governor to adjust its experience record pro-rata in
accordance with the actual duration of that experience.
23. Subject to supplement for new firms and hardship cases, the ODPQ shall
be shared among watch manufacturing firms on two criteria, each of which shall
be given substantial weight. These criteria shall be applied arithmetically, so
as to affect all firms equally.
The first criterion shall be: payroll subject to social security taxes incurred
in watch manufacturing in the Virgin Islands during a reasonable period prior
to the sharing.
The second criterion shall be: number of watches shipped during a reason-
able period prior to the sharing.
24. In making a supplemental assignment 'of IDPQ's to new firms and
hardship cases, consideration shall be given to the following: investment in
plant and equipment for watchmaking in the Virgin Islands; minimum quanti-
ties required for production without loss; characteristics of the production
contributing special value to the Virgin Islands; abnormal and unforeseeable
circumstances.
25. In assigning IDPQ's to any firm, deduction should be made, watch for
watch, or any quantity shipped by the same firm, or a firm corporately or per-
sonally affiliated, to the customs area of the United States from any other island
territory of the USA.

Problems of Administration and Discretion

26. For the administration of this program, the Governor must have the
power to require the submission by any watch-manufacturing firm, of all
requisite information, duly certified by independent accountants or auditors.
27. If any firm should fail or delay its submission of the information needed
to determine its participation in the program, the Governor must be authorized
to proceed on schedule, making such allowance for the laggard as sound
judgment and administrative expedition will permit.
28. The Governor shall have authority to revoke IDPQ's, for cause, such as
but not limited to, misrepresentation or failure to utilize.

























REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 59

29. Production taxes become legally due at the time of shipment from
producing plant. But the Governor would have discretion to arrange for report-
ing of shipments and paying of taxes at convenient intervals.
30. In assigning IDPQ's for the period to March 31, 1966, it may be necessary
to make adjustments for shipments since July 1, 1965, should the records show
unusual and disturbing shipments from the Virgin Islands during that period.
During the Hearings, the industry was put on notice that such adjustments
might be necessary.
31. Particularly during the period to March 31, 1966, it will be necessary for
the Governor to be able to proceed, in considerable degree, by Regulation and
the exercise of principled discretion, within a framework established by law.
32. In the formulation of such Regulation and in his exercise of discretion,
the Governor may well be assisted by an Advisory Council or Hearing Board.
33. The underlying drift, which it is the purpose of these Recommendations
to control, is a serious one, and is rapidly aggravated. It is accordingly sug-
gested that, if the Governor finds these Recommendations acceptable, he should
cause them to be embodied in a draft law as soon as possible, so that the pro-
posed law may be submitted for early consideration at a Special Session of the
Virgin Islands Legislature.
Dated : August 9, 1965
Signed: [S] Myer Feldman,
MYER FELDMAN, Chairman.
[S] Morris F. de Castro,
MORRIs F. DE CASTRO.
[S] Oscar Gass,
OscAR GAsS.
[S] John J. Kirwan,
JOHN J. KIRWAN.
[S] Albert Prendergast,
ALBERT PRENDERGAST.












Office of the Government Secretary


Personnel: 55


Operating Appropriation: $341,278


Records of business activities under the jurisdiction of the
Government Secretary reveal a continued healthy growth.

Corporations
During fiscal 1965, the number of corporations doing business in
the Virgin Islands reached the 1,000 mark, as compared with 938 at
the end of fiscal 1964. Of that number, 829 were domestic, 123
foreign, and 48 nonprofit corporations.
Increased corporate activity is reflected in the following tables:



Comparative Table-Franchise Taxes and Corporate Fees

1961 1962 1963 1964 1965

Filing fees, etc_ --- $11, 874. 49 $12, 458. 34 $13, 179. 00 $15, 196. 17 $14, 561. 17
Franchise taxes
including penalties_ 16, 463. 50 20, 127. 56 38, 098. 75 35, 770. 92 136, 288. 80

1 This amount includes $5,000 which was received on June 30, 1964 (closing
day of the fiscal year) but which was not deposited until July 1, 1964.



Comparative Chart-Franchise Taxes and Corporate Fees

1961 1962 1963

Foreign Domestic Foreign Domestic Foreign Domestic

Certificates of incorporation
issued---------- 14 115 17 166 24 173
Certificates of amendments
issued ---------- 1 24 2 30 2 26
Dissolutions------- 3 ---- 12 4 85
Withdrawal------- 2 -- 2 ___---- 5
Mergers-----_ --- 2 3 ---- 1
Surrender of corporate rights --- ------- 3 -- 6










REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Comparative Chart-Franchise Taxes and Corporate Fees-Con.

1964 1965

Foreign Domestic Foreign Domestic

Certificates of incorporation issued---- 19 173 33 173
Certificates of amendment issued----- 4 43 4 27
Dissolutions---------------- 49 ------ 143
Withdrawals --------____ 4 ---- 7 ---
Mergers_ ------- ________________ 1 _--- 3
Surrender of corporate rights ------ 4 1 10


Licensing of Businesses and Occupations
The number and variety of businesses and occupations are reflected
by the licenses issued. There was steady growth.
The coordinated efforts of the Government Secretary, the Attorney
General, and the appointment of an Enforcement Officer under the
Department of Public Safety resulted in more effective application of
licensing laws during fiscal 1965.
A total of 3,735 licenses were issued, and a total of $172,685.68 col-
lected in fees. This represented a significant advance over fiscal 1964,
when 3,496 licenses were issued and $150,232.50 collected in fees.
The following charts show a comparison of fees collected and li-
censes issued over the past 5 years:

Licenses Issued and Fees Collected

1961 1962 1963
District ___
Licenses Fees Licenses Fees Licenses Fees

St. Thomas
and St. John_ 1, 393 $51, 689. 00 1,514 $63, 480. 00 1,716 $101,592.50
St. Croix --- 974 34, 659.00 922 38, 474. 00 1, 034 39, 176. 00

Total---- 2,367 86, 348. 00 2, 436 101, 954. 00 2, 750 140, 768. 50


1964 1965

Licenses Fees Licenses Fees

St. Thomas and St. John 2, 010 $117, 421. 50 2, 115 $130, 781. 68
St. Croix------ 1. 486 32, 811.00 1, 620 42, 084. 00

Total-------- 3, 496 150, 232. 50 3, 735 172, 865. 68

205-504 0--6- 5










62 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Registration of Trade Names
During fiscal 1965, 224 trade names were registered, bringing the
total to 654. Registration fees collected came to $1,120, as compared
with $1,695 during fiscal 1964 and $860 the previous year.
Registration of trade names is an activity that is relatively new. It
was provided for by an act passed by the legislature on January 25,
1963, in order to avoid the use of identical or similar names by two or
more businesses.
In order to facilitate enforcement of the law, all applicants for busi-
ness licenses whose applications indicated business names other than
their own were advised of the necessity of registering trade names and
asked to complete forms for that purpose.

Trademarks and Patents
Registration of trademarks and patents showed a rise over pre-
vious years. Total fees collected for this activity during fiscal 1965
amounted to $3,621.00.
The following chart shows a comparison of activity in this field over
the past 5 fiscal years:

1961 1962 1963 1964 1965


Original registra-
tions _--- 12 24 24 19 35
Renewals----------- 15 7 4 13 13
Assignments-------- 6 8 6 -- 18
Changes of name---- 2 6 2 4 2
Mergers_---- 4 20 2 ------ 2
Design patents_ -_ ---- 1 1 1 ----

Total actions_ 39 66 39 37 70

Fees collected_------ $810. 00 $1,032. 50 $1, 005. 00 $907. 50 $3, 621.00


Banking Board of the Virgin Islands
The steadily increasing economic development of the Virgin Islands
was revealed by the growth in banking activities. Assets, loans, de-
posits, and mortgages all set records.
At the end of the fiscal year, there were four banks and one savings
and loan association doing business in the Virgin Islands. In addi-
tion, a newly organized savings bank in St. Croix qualified for and
received coverage from the Federal Deposit Insurance Corporation.











REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


During fiscal 1965, applications for authority to do business in the
Virgin Islands were filed by two other organizations. Action on these
awaits receipt of supplementary information requested by the Board.
The following table reflects growth of the banking industry:


Total assets -....
Total liabilities.. -
Loans__-___
Mortgages-----
Deposits ..-
Time_---
Demand_ _.
Savings ----
Cash on hand_-___


Fiscal year 1963


$59,056, 190.45
56, 270,413.12
9,149,990.47
21,766,369.67
51,988,767.83



4, 258, 403.47


Fiscal year 1964


$67,782,950.85
63,908, 111.13
13, 282, 331.67
27,925,425.09
58,721,006.43



3,379,280. 27
3, 379, 280. 27


Fiscal year 1965


$79, 541,767.85
77, 169, 041.58
20,905,951.94
30, 585,356.66

6, 439, 154.04
34,309,809.13
33, 335, 260.94
1, 938, 825.78


Insurance

Insurance business in the Virgin Islands continued its rapid growth
during fiscal 1965. Gross premiums totalled $2,761,496.82, as com-
pared with $2,076,857.59 the previous year.
Seventy-eight insurance companies, including 11 new registrants,
were authorized to conduct business, as compared with 68 companies,
including 6 new registrants, the year before. Sixty-six insurance
agents, 51 solicitors, and 1 broker were issued licenses for a total of
118. Of this total, 6 licenses were issued to apprentice agents and 29
to apprentice solicitors.
Following is a comparative table of insurance activities for the past
5 years:


Certificates of
authority _-----
Agents licenses -_ --
Brokers licenses -_ -
Solicitors licenses -
Gross premium taxes_
Filing annual state-
ments__------
Filing power of
attorney -----
Sale of insurance
laws_-----------


1961



$1,951.00
2, 111.00
100.00

12, 316.87

126.00

45.00

51.00


1962


$3, 076.00 $3, 187.50
2,821.86 3,068.22


200.00
12,784.86

151.00

145.00

61.00


827.53
015.37

167.50

90.00

44.00


16, 700.87 19, 239. 72 22, 400. 12


1963 1964 1965


$2,747.50
2,870.00

1,460.00
18, 769.49

172.50

115.00

18.00

26,152.49


$3, 412.50
3, 047.50
100.00
1,117.52
24, 892.43

190.00

70.00

28.00

32,857.95


I











64 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Board of Control of Alcoholic Beverages
The past fiscal year saw a significant gain in alcoholic beverages
shipped from the Virgin Islands to the U.S. mainland. The follow-
ing tables reflect the growth of the industry :

Rum Produced in the Virgin Islands
(In proof gallons for calendar year)

Year St. Thomas St. Croix

1962----------- 200, 000 1, 084. 334
1963 157, 470 832, 204
1964----------------------- 327, 072 878, 917



Alcoholic Beverages Exported to the United States
(In proof gallons for calendar year)

Item 1960 1961 1962 1963 1964

Rum._----- 701,124 693,119 825,387 735,077 1,230,257
Whiskey_ ------ 114, 357 123, 434 4, 343 2, 568 2,160
Cordials, liqueurs -.- 9, 236 5, 080 4, 381 28, 571 17, 796

Total proof
gallons _--- 824, 717 821,633 834, 121 766,216 1,250, 213


Total proof gallons of alcoholic beverages shipped from January
through June of 1965 were 519,220.

Perfumery, Including Bay Rum, Toilet Water and Cosmetics


Value (dollars)


1960 1961 1962 1963

363,358 258,072 528,230 602,328


1964

887, 125


Office of the Tax Assessor
A new reassessment program for real property has been adopted
to keep step with the changing value of such property. Under this
program, one-third of the real property will be reappraised each year,
so that property of all three islands will be completely reappraised
every 3 years.



























REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 65

Field work to implement this new program for the first one-third
reassessment was begun in August 1964, and the second one-third got
under way in April 1965.
Preliminary findings of the appraisers and computation personnel
indicate general increases of from 50 to 150 per cent in land assess-
ments. Building assessments will probably be increased from 25 to 30
percent. Projected figures indicate that assessments on taxable prop-
erties will increase from the present $83,394,239 to approximately 125
million, with a corresponding increase in tax revenues from the present
968,794.42 to about $1,562,000.
Meanwhile, assessment and taxes for the past taxable year ap-
preciated substantially. The following tables reflect these gains:














Detailed Chart of Assessments and Taxes, 1960-64

Island Year Number of Total Taxes Deductions Modification Iomestead Taxes after
bills assessments Act No. 768 Act No. 909 Act No. 834 deductions

Saint Thomas....- ----.6 ..... 1960 5,377 $28,777, 774 $359, 722.13 $78,422.18 $281,299.95
1961 5, 500 28, 098, 747 351,234.34 $35,442. 00 $20,000. 00 295, 792.34
1962 5,744 30,148,342 376,854.28 -- ----23,628.88 24,274.31 328, 951.09
1963 6,210 34,520, 023 431,500.29 12,512.64 28,913.96 390, 073.69
1964 6,786 40,163,098 505,909.55 ------- 33, 155. 88 472, 753. 67
Saint Croix 1960 4,913 30,568,144 382, 101.80 136,198.58 245, 903. 92
1961 5,100 28, 661,753 358,271.91 63,131.64 25,300.00 269, 840. 27
1962 5,397 31,078, 240 388,478.00 ---- 42,087.73 31,830. 66 314, 559. 61
1963 5,731 35, 302, 247 443,835.96 ------ 21,148.11 34,905.85 387,782. 00
1964 6, 191 40,890, 229 513,053.86 ------ 42, 506. 60 470,487. 26
Saint John --- ------- .---------1960 662 1,846,734 23,084.18 13,037.99 10,046.19
1961 703 1,981,270 24,765.88 ------ 6,600.00 2,500.00 15, 665.88
1962 714 2,119.749 26,496.86 ---- 4,407.07 2,869.75 19,220.04
1963 738 2,195,352 27,441.90 -- 2, 025.35 3,678.19 21,738.36
1964 771 2,340,912 29,261.40 ---- 3,707.91 25,553.49

Total taxes 1960-64------------------- $4, 242,012.34
Total deductions 1960-64.... ... 682, 933.83
Total taxes after deductions 1960-64-------- 3, 559, 078.51




Recapitulation of 1963 and 1964 Real Property Taxes and Assessments Totals for St. Thomas, St. Croix, St. John

Number Land assess- Building Number Amount of Number Amount
Year of bills ments assessments Total Taxes Night soil of home- homesteads of modifi- of modifi- Taxes
steads cations cations

1963 ---------- -- 12,679 $34,787,894 $37,229,718 $72,017,612 $900,220.15 $6,813.90 2,338 $67, 498. 00 4,000 $35, 686. 10 $803, 849. 95
1964 1 _--.- -------- 13, 773 39, 932, 011 56, 931,358 96,863,369 1,210,792.11 5,796.82 2,687 79,430.39 1,137, 158. 54
1964 2 ........ . 52 1,495, 891 11,973,239 13, 469, 130 168,364.14 168, 364. 14
1964 3. 13,721 38, 436,120 44,958,119 83,394,239 1,042,427.99 5,796.82 2,687 79,430.39 ----- 968,794.42
19644' .. 1,042 3,648,226 7,728,401 11,376,627 142,207.84 1,017.08 349 11,932.39 ... 35,686. 10 164, 944. 47


I Totals include tax exempt properties.
2 Totals, tax exempt properties.


3 Totals do not include tax exempt properties.
4 Increase or decrease in taxable amounts.


8













0

H
o0










REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Office of the Recorder of Deeds
During the fiscal year, 5,794 documents were recorded for an increase
of 1,027 over fiscal 1964. A total of $58,796.88 was collected in fees.
A comparative analysis of documents recorded and charges assessed
over the past 5 fiscal years follows:

Documents 1961 1962 1963 1964 1965

Trust receipts -------------- -------__ -_ 12
Promissory notes ------------- ----------_----_ _-______ ___- 8
Deeds---------------------- 426 583 547 743 920
Mortgages----------- 360 349 535 537 744
Chattels --------------- 116 236 570 655 819
Conditional sale, installment,
and contracts of sale-------- 886 1,052 886 1,147 2,271
Cancellations and releases------ 216 235 356 1,009 582
Bills of sale------------------ 11 155 10 6
Leases--------------------- 18 43 37 59 44
Liens------------ 34 91 9 28 120
Adjudications--------- 24 21 31 16 30
Easements---------- 15 3 45 39 35
Death certificates------------- 5 2 11 6 111
Assignments--------- 35 7 -------- 21 23
Miscellaneous ------------ 86 97 171 397 169

Total----------- 2,221 2,730 3,353 4,667 5,794


Comparative List of Fees Collected, Fiscal Years 1961-1965


Passports
A total of 324 passports was issued during fiscal 1965, as compared
with 273 for the previous year. The following table shows the increase
in passport activity for the past 5 fiscal years:

1961 1962 1963 1964 1965

Issued_------------ 191 199 273 273 334
Renewed -------------------- 55 28 60 118 123
Amended ----------- 5 9 8 8 5
Extended__----------- 1 1 ------- --

252 237 341 399 462














68 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Notaries Public
During the 1964 regular session of the legislature, the number of
notaries public commissions which could be issued was increased from
25 to 45. This was again increased to a total of 60 in July 1965. By
the end of the fiscal year, a total of 41 notaries public had actually
been appointed, with 2 applications pending.

Ministerial Licenses
Twenty letters of authority were issued to ministers of the gospel
during the fiscal year, permitting them to perform civil-religious cere-
monies. This represented an increase of six over similar authoriza-
tions the year before. The following table reflects the number of such
letters issued during the past 5 fiscal years:

1961 1962 1963 1964 1965

Letters issued ------------- 11 19 7 14 20


Industrial Incentive Program
The jurisdiction over the Industrial Incentive Board was trans-
ferred from the Office of the Government Secretary to the Department
of Commerce at the end of the fiscal year. The Department of Com-
merce already had been charged with promotion of the Industrial
Incentive Program.
At the end of the fiscal 1965, there were 81 persons, firms, or corpora-
tions holding tax-exemption certificates under this program including
45 for small businesses and 36 for hotels and guest houses. As a result
of these operations, an estimated 2,320 persons were employed for an
average annual payroll of $6,500,000.
During the same period, nine new conditional certificates were is-
sued : five to hotels and four to small businesses.
The following table reflects the average wage and employment distri-
bution among the various tax-exempt industries:































REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Average Wage and Employment Distribution for Different Types of
Tax-Exempt Industries for the Fiscal Year 1965


Industry


Hotels, guesthouses, and motels_
Watches and related products__
Costume jewelry and related
products -
Showerproofing woolens -----
Knitting, spinning and weaving
of woolens---
Chemicals and related products-
All others 2I


Average number
of
employees


1, 503
245

64
55

63
33
357


Average number
ofbonded
employees


561
5

10
21

0
0
32


Average annual
payroll



$3, 770, 103. 00
1, 078, 116. 00

128, 388. 00
135, 148. 00

113, 620. 00
129, 064. 00
1, 275, 041. 00


1 Affected by quota.
2 Includes thermometers, manufactured woolen garments, dairy products, con-
struction materials, etc.


~~~(~











Department of Education


Personnel 720 Operating Appropriation: $4,689,633
Substantial progress in all areas of public school education continued
during fiscal 1964-65. Notable among the important accomplishments
was the implementation of a crash school construction program. The
legislature, by unanimous consent, earmarked $4,200,000 from the
newly authorized bond issue program for the construction of 129 class-
rooms, most of which are scheduled for occupancy by September 1966.
A revised teacher pay scale, effective in June, increased the base
salaries of teachers who hold a bachelor's degree from $4,600 to $5,100
and for those with a master's degree from $5,400 to $6,000. The higher
salaries are expected to reduce problems of recruitment.
Upgrading of educational standards continued in accordance with
the provisions of a contract with New York University. Now in its
second year, the upgrading program included the awarding of an edu-
cational doctor's degree to the Assistant Commissioner and a master's
degree to the Director of Elementary Education. It also marked the
continued professional growth of principals and supervisors, the in-
crease in knowledge and skills of teachers and the successful operation
of a demonstration school.
Through cooperation with the College of the Virgin Islands, in-serv-
ice training was offered to teachers and plans were completed for two
summer institutes.
Increases in the operating budget enabled the continuation of pro-
grams designed to strengthen the curriculum. The Commissioner, his
deputy, and members of the staff attended several conferences on the
mainland in preparation for participation in programs under the Na-
tional Defense Education Act affecting elementary and secondary
schools. Revised plans were completed and submitted to the U.S.
Office of Education for Vocational Education, Guidance and Counsel-
ling and Title III of the National Defense Education Act.
Initial plans were approved for summer projects under operation
Headstart for preschool children, neighborhood youth corps for poten-
tial dropouts, and basic adult education for persons with less than a
complete elementary education.
Continued progress was also noted in the vocational education pro-
gram, the high school equivalency program, the school lunch program,
and in the improvement and expansion of library facilities and the
school and public recreation programs.











Developing creativity
through the use of modeling
clay fascinates a youngster
at the Pearson Gardens
Kindergarten as her
teacher, Mrs. Judith
George, looks on. The .. O
Pearson Gardens Kinder-
garten is 1 of 28 centers
throughout the Virgin Is-
lands being utilized for
Project Head Start pro-
grams now in progress to
provide preschool experi-
ences for youngsters 41% to
51/2 years old.
























A young preschooler is in-
troduced to water colors by
his teacher, Mrs. Connie
Harrigan, at the French
Town Kindergarten as
"Project Head Start" gets
S underway in the Virgin Is-
lands. This phase of the
Anti-Poverty Program in
the Virgin Islands saw a
total of 580 youngsters
enrolled.














72 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Public School Enrollment

The number of pupils in the public schools increased from 8,671 in
fiscal 1964 to 9,399 in fiscal 1965, an increase of 8.39 percent. The
following chart shows a comparison of enrollment for the past 5 fiscal
years:


Kindergarten ____
Grades 1 through 6--
Grades 7 through 12_

Totals


1960-61


426
4,507
2, 199

7, 132


1961-62


495
4,740
2, 389

7, 624


1962-63


545
5,086
2, 573

8, 204


1963-64


564
5, 197
2,910

8, 671


1964-65


690
5,536
3, 173

9, 399


A. Virgin Islands Appropriation-Fiscal Year 1965


Division


Office of the Commissioner __----------
Curriculum and instruction -------
Business and auxiliary services __------
School lunch_------
Community programs _-----------_
Grants and contributions --------

Total -----



B. Federal Aid Funds and Grants-


Activity


National Defense Education Act (titles III, V, and X)
Vocational education ____
Rural library extension program_
School lunch --
Special Federal grant-Public Law 874
Vocational rehabilitation
Manpower development and training -


Total.


Appropriation


$114,287. 00
2, 670, 976. 00
517,325. 00
411, 861. 00
355,172. 00
620, 012. 00

4, 689, 633. 00


Percent of total


2. 44
56.96
11. 03
8. 78
7. 57
13. 22

100. 00


-Fiscal Year 1965


Amount


$107,413. 00
46,754. 00
28, 483. 00
80,964.00
58,488.00
49, 708 00
47, 656. 00

419,466. 00

















Virgin
Federa


REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 73

C. Total Operating Funds Available-Fiscal Year 1965

Percent
Island appropriated funds ------- $4, 689, 633. 00 91. 8
1 aid funds and grants___-- ----- 419, 466. 00 8. 2

Grand total --------------- 5,109, 099. 00 100.0


5-Year Comparison of Total Operating Budgets


Local funds Federal funds Total

1960-61 _---------- $2, 142, 812 $283, 864 $2, 426, 676
1961-62__---------- 2, 574, 418 269, 485 2, 843, 903
1962-63------------- 3, 154, 328 323, 971 3, 478, 299
1963-64 -------------- 3, 856, 974 370, 225 4, 227, 199
1964-65----------- 4, 689, 633 419, 466 5, 109, 099


School Construction Program
Additional school construction projects during the fiscal year as-
sured the opening of 14 elementary classrooms on St. Croix, 9 of them
at the new Grove Place School and 10 high school classrooms on St.
Thomas. A vocational shop building and gymnasium were completed
at Christiansted High School, St. Croix, and a gymnasium and music
suite finished at Charlotte Amalie High School on St. Thomas. A
gymnasium was also completed at the Claude 0. Markoe School, Fred-
eriksted, St. Croix.
The $4,200,000 designated from the bond issue program for school
construction involves the building of 45 classrooms in a new St. Croix
Central Senior High School, 40 classrooms at the proposed St. Thomas
Wayne Aspinall Junior High School, 10 additional classrooms at the
St. Croix Charles Emanuel Elementary School, 9 additional classrooms
at the Grove Place Elementary School on St. Croix, 10 classrooms at
the new St. Thomas Tutu Elementary School, 10 classrooms at the new
St. Thomas Bournefield Elementary School and the addition of 5 class-
rooms, a library, teacher's lounge, and principal's office to the St. John
Julius Sprauve School. Most of the total of 129 classrooms are ex-
pected to be ready for occupancy by September 1966.











































The Christiansted High, School Band performing a carnival tramp before a record
crowd of over 2,000 at the New York World's Fair May 23. The scheduled I-hour
concert ras extended 20 minutes by an enthusiastic audience iiwhich heard ( crry-
thing from the classics to calypso, including the newr "Firgin Islands March."

Staff Training Programs
Six key Department of Education officials received their second con-
secutive year of training as part of the executive training program un-
der the sponsorship of the New York University project. The partici-
pating administrators received two types of professional training-
one consisted of a month of on-the-job consultation service and the
other, formal training at New York University. Each of the trainees
has matriculated in a graduate degree program, two for the master's
degree and four on the doctoral level. Study at N.Y.U. follows a
schedule which insures that no more than two of the six participants
are absent from service at any given time.
During the fall semester, a 15-session principals'-supervisors' work-
shop was initiated. Special attention was given to the areas of school









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


law, management, finance, and business administration. Forty-one
local administrators completed this workshop. In addition, a total of
six teacher workshops were sponsored as part of the New York Uni-
versity-Virgin Islands project.

The Demonstration School
The Nisky School, an existing elementary school in St. Thomas,
officially became the project's demonstration school on September 1,
1964. A preselected faculty representing most of St. Thomas' larger
elementary schools and composed almost exclusively of native Virgin
Islands educators, began operation on that date. No attempt was
made to modify the pupil population profile either in respect to size
or ability.
The initial year's program was designed to fulfill two basic objec-
tives: (1) improvement of learning motivation among the students and
(2) discerning the effects of specialist teaching.
The school's enrollment at the beginning of the year was 348. The
following June it was 362. Individual class sizes, representative of
most local elementary schools, ranged from 27 to 46.
Comparisons of individual pupils' achievement scores, recorded in
October and again in May, revealed interesting changes. Pairs of test
battery scores were available for 194 students enrolled in grades 2 to 6.
(Statistically, half of this group could have been expected to show less
than 7 months' growth, and half more than 7 months.) Of the total
194 students, 85 "grew" less than the 7 months while 109 recorded gains
ranging from 7 to 23 months. Almost 11 percent of the pupils for
whom two sets of scores were available progressed 14 months or more,
at least double the expected growth rate.
A total of 65 teachers from St. Thomas and St. John participated in
1 of 3 visitation programs to the demonstration school. Each spent a
full day observing Nisky instructors at work. Orientation discussions
preceded and followed each visitation day program.

Curriculum and Instruction
The Division of Curriculum and Instruction continued its profes-
sional advancement during fiscal year 1965. In addition to the open-
ing of the Nisky Demonstration School, three projects sponsored by
the Iepartment of Education were approved under the Economic
Opportunity Act. One of these, operation Headstart, provided a pre-
school experience for 580 youngsters during the summer months, prior
to their entering kindergarten and the first grade in the fall. A work
training program for 125 youths was established to assist potential










76 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

drop-outs and plans for a basic adult education program were pre-
pared, based on a grant of funds allocated to the Virgin Islands.
Curriculum committee work continued with teachers planning
courses of study for all grades. Language and science textbooks were
secured for the elementary grades and science, physics, mathematics
and English texts for the secondary schools. The first phase of an
Instructional Materials' Center was completed for use in producing
and distributing instructional materials.
The year marked the beginning of a Caribbean Marine Biology
Project to introduce marine-life to Virgin Islands elementary and
high school students. With masks, swim-fins, and snorkels as their
basic tools of exploration, 46 students learned first hand the identify-
ing characteristics and behavior of dozens of marine animals. In ad-
dition, classroom sessions and slide-studies were used to reinforce the
"i" .ifI'' field study.

Vocational Education
Vocational and practical arts courses were offered during the year
at senior high schools on St. Thomas and St. Croix, and at the Claude
O. Markoe School on St. Croix. Practical arts and home economics
were offered at the Julius Sprauve School on St. John. Among
these courses were carpentry, agriculture, masonry, electronics, auto
mechanics, electricity, plumbing, practical nursing, hotel and restau-
rant training, mechanical drafting, sewing, and fancy needle craft.
During 1965, students were graduated from all courses except
electronics, which was only introduced in the past year.
The in-service training program offered by New York University
for home economics instructors were successfully completed. The pro-
gram coordinator was granted study leave to attend Iowa State Uni-
versity for work on a master's degree in administration of industrial
education. The electronics instructor attended the Technical Com-
munication Institute at Colorado State University and one of the
business education instructors attended a summer institute on data
processing at Holding Technical Institute, Raleigh, N.C.
The Vocational Education State Plan of the Virgin Islands was re-
written in order to qualify for additional Federal funds under the Vo-
cational Education Act of 1963. It was submitted to the Office of
Education in Washington, D.C., for approval. In order to discuss
changes made in the new state plan, personnel and instructors at-
tended conferences at several colleges and universities in the United
States during the year.









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Placement and follow-up reports show that an increasing number
of graduates of the vocational courses are working at the trades for
which they have been trained and earning good wages.

Pupil Personnel Services
During the school year 1964-65, the Bureau of Pupil Personnel
Services made available to students, the services of three attendance
officers, a school psychologist, six guidance counselors, and two
school nurses, all under the supervision of a director.
Emphasis in group guidance activities was placed on orientation
to the school, improvement of study habits, personal adjustments, de-
velopment of social relationships and responsibilities, formation of
life goals and the development of plans to attain those goals. The
Guidance Newsletter was published quarterly and distributed to coun-
selors and teachers in the public elementary and secondary schools.
Tests of mental ability, aptitude, and achievement, were adminis-
tered to pupils of public and parochial schools on the three islands.
Readiness tests were given to pupils in the first grade and achieve-
ment tests to those in the second through the ninth grades. Differen-
tial aptitude tests were also administered to the public school's ninth
grade and to students of the Catholic high school. School college
abilities tests were given to grades 9, 11, and 12. The sequential test
of education progress was given to grades 10 and 12. Of the total
9,399 students enrolled in the public schools, 8,512 were tested during
the school year.
High school equivalency tests were administered in January and
May on St. Thomas and St. Croix, and certificates awarded to 77
adults. Nine veterans also received certificates on the basis of their
scores in the general education development tests administered at
the U.S. Armed Forces Institute.
A total of 143 applications for financial aid from the Territorial
Scholarship Fund were approved and processed, with a total grant
of $77,100. The recipients included students at the College of the
Virgin Islands and from institutions in Puerto Rico and the U.S.
mainland.
A summary table showing results of a 3-year follow-up study on
high school graduates indicates a substantial increase from the pre-
vious year in the number of graduates who found employment.


205-504 0-66---6










78 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Follow-up Report of Graduates

Year 1962 1963 1964

Number of graduates --------- 214 184 234
Attended college (percent)-------- 31. 3 23. 4 24. 4
Military service-------------- 5. 6 10. 9 6. 8
Employed_------------- 43. 4 45. 1 57. 7
Single girls-Unemployed -------- .5 3. 3 4. 7
Married girls-Unemployed-------- 8. 4 10. 8 .9
Off-island or unknown----------- 10. 3 6. 5 5. 5
Deceased ------------------- .5 0 0


Vocational Rehabilitation
During the 1965 fiscal year, 195 cases were in referral status, an in-
crease of 42 cases over the past year. Thirty-five cases were closed
as rehabilitated. At the end of the fiscal year, there were 95 active
cases.
Federal financial participation in the sheltered workshop in St. Croix
as a special demonstration project was terminated in February 1965
and support program funds were utilized for the continued operation
of this facility which provides vocational evaluation, training and
remunerative employment to 20 aged and chronically ill clients. For
the majority of these persons, this marks the first time in 20 or 30
years that they have earned money, thus reducing their feeling of de-
pendence on charity, relatives or friends.
The division requested and received a grant of $6,000 from the Vo-
cational Rehabilitation Administration for the renovation and repair
of the building to be used for the sheltered workshop on St. Thomas.
Matching local funds in the amount of $2,000 have been obligated for
this purpose.
In addition, a project plan for the operation of this second sheltered
workshop has been completed. It is designed, generally, to help the
disabled with emphasis on service to the mentally retarded. The proj-
ect plan requesting Federal financial participation has been approved
by the Office of Vocational Rehabilitation. It will be matched by ap-
proximately $4,000 of local funds, each year for 3 years for the opera-
tion of the shop. Experience has indicated the need for this type of
facility on St. Thomas.

Public Libraries
The Department of Education administers three public libraries and
bookmobile services on St. Thomas and St. Croix plus a small branch









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


library on St. John. In fiscal 1965, a number of improvements were
made in the physical appearances of all libraries.
The general book collection continued to increase. Over 4,500 vol-
umes were added to the adult, children's, and Von Scholten collection.
All types of recordings, classical, popular, narrated, children's, and
choral have been added and catalogued and listings made available to
the public. Magazines on microfilm are also provided as well as Carib-
bean area material for that special section.
Bookmobile services continued for all parts of the islands and the
collection again increased.

Recreation and Sports
The Bureau of Recreation sponsors a wide variety of organized
sports for the men and women of the entire community that include
softball, volleyball, track and field events, baseball, tennis, cricket,
soccer, boxing, and weightlifting. The number of teams, participants,
and spectators averaged 30 percent increase in attendance over the
previous year. During the summer months, the Bureau also sponsors
Little League and Pony League baseball programs and operates sum-
mer recreation activities in the day and evening for all ages. Facilities
presently include 4 baseball fields, 10 softball fields, 9 outdoor basket-
ball courts, 3 community centers, 6 tennis courts, and 8 small play-
grounds.
Center programs offer activities in music, sewing, arts and crafts,
dramatics, dancing, cooking, chess and table games.

School Lunch Program
The School Lunch Program of the Virgin Islands has grown since
its inception in 1931 from a small community project to more than a
half-million dollar operation involving 31 schools that serve, without
charge daily, a well balanced, type "A" nutritious lunch to more than
8,000 kindergarten, elementary, and high school pupils. During the
fiscal year, 1,390,533 lunches were prepared and served by a staff of 112
cooks and food-service workers.
The program received a total of 41,891 pounds of federally donated
frozen ground beef and roast beef, worth $23,913.29.
Total expenditures were $413,087.56, with a Federal appropriation
of $80,964.00.

Business and Auxiliary Services
The Business Office of the Department of Education received appro-
priations totaling $4,686,933 by the end of the fiscal year. One

























80 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

hundred nine thousand two hundred and eighteen dollars was received
in capital improvement funds and $419,466 in Federal grants.
The transportation allowance for buses was extended resulting
in extensive surveys of needs and increased per pupil cost. The num-
ber of students in both public and private school utilizing the free bus
service continued to increase. Average daily usage on St. Croix was
2,040 as compared with 1,944 last year. St. Thomas usage jumped
from 359 students in fiscal 1964 to 514 this year, while on St. John
the number increased from 65 to 120 including pupils transported by
boat between St. John and St. Thomas. Operating costs for this
service were $181,120.
Work-shop sessions were led by a consultant from the NYU project
in custodial services. These were attended by school principals and
supervisors. Demonstrations were also conducted by the Depart-
ment's top custodians.











College of the Virgin Islands



Personnel: Operating Appropriation: $670,000
Permanent: 89
Temporary: 54

The college's first commencement stands as the distinguishing event
of 1964-65 and represents a milestone in its growth. Mrs. Lyndon B.
Johnson, featured speaker in the graduation exercises, expressed the
importance of the occasion. Addressing the graduates, she said, "This
class of 1965, the first of the College of the Virgin Islands, is a land-
mark in the long and significant history of the Caribbean." With the
foundations laid the college moves toward its third academic year and
the task of continuing to build well.

Growth in Enrollment
Predictions of a substantial increase in the size of the student body
were fulfilled. A total of 80 percent more full-time students were en-
rolled during the college's second year. There is every indication that
more than 120 full-time students will be on campus next fall, 1965.


Mrs. Lyndon Johnson thrills audience at the first commencement of the College of
the Virgin Islands in June 1965. The First Lady was the principal speaker at the
graduation exercises.









82 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Approximately two-thirds of the full-time student body of 1964-65
were residents of the U.S. Virgin Islands. The students in the remain-
ing widely diversified group represented the continental United States,
Puerto Rico, the British and French West Indies, Canada, Gambia,
Great Britain, and Nigeria.

Confidence in Faculty
The College of the Virgin Islands has continued to attract a distin-
guished faculty to meet the needs of an expanding student body. The
college was fortunate in the .past year to have a teaching staff approxi-
mately half of whom held Ph. D.'s from leading universities. With a
small full-time student body and a growing faculty each student now
has 'the advantage of individual attention to his academic growth.
Perhaps the college's greatest asset is the quality of its faculty and
instruction. This factor has won public confidence in the past 2 years
and should continue to do so in the future. Recruitment of teachers
for the coming year has been completed and will maintain the high
standards observed in the past.

Progress Toward Accreditation
By the end of the college's second year, students enrolled in the uni-
versity-parallel program had been accepted for transfer admission with
advanced standing to 18 institutions. Among these were Antioch Col-
lege (Ohio), Carthage College (Illinois), Catholic University of
Puerto Rico, Hofstra University (New York), Los Angeles State Col-
lege, Marquette University (Wisconsin), New York University, San
Diego State College, Sarah Lawrence College (New York), Univer-
sity of California at Los Angeles, University of Colorado, and Uni-
versity of Utah.
In March the college was accepted as a Certified Correspondent to
the Middle States Association of Colleges and Secondary Schools, a
major step toward completion of the procedures leading to official
accreditation.

New Occupational Programs
The college presently offers two distinct types of 2-year programs:
a university-parallel program which prepares students to transfer to
4-year institutions and terminal occupational programs in several
fields.
The nursing program will begin in fall, 1965, and will prepare the
student for the state board examinations as a registered nurse. Three
experienced nurses will instruct the initial class with a projected enroll-









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 83

ment of 10. Like the nursing program, the hotel and restaurant man-
agement program has gained a full-time director and will offer a new
and specialized curriculum in 1965. Both programs are closely related
to meeting immediate needs of the Virgin Islands.

Four-Year Programs
Plans are now being made to establish programs in the liberal arts
and teacher education beginning in 1966 as the first of the college's
programs leading to a bachelor's degree. Cooperation with a strong
mainland university over a 3-year period is a part of this plan.

Special Programs
More than 60 students, most of whom enrolled in the college for the
1964-65 year, took advantage of the college's first precollege summer
session last summer. This program, which offers intensive study in
English, mathematics, and speech, is expected to draw a comparable
number of students this summer. Again this summer the Carnegie
Corporation will contribute $15,000 in support of the program.
The freshman class traveled to the mainland this June for the second
Washington and New York seminar. With an emphasis on gaining
insight into the workings of the American system of government, the
group met with Members of Congress, the Supreme Court, and the
Executive Branch. In New York the students talked with city officials
and visited the United Nations where they met with the Honorable
Ralph Bunche and his deputy.
The college, as part of its summer work quarter program, assisted
students in finding jobs in the Virgin Islands and on the mainland.
Students held jobs with the U.S. Office of Territories, Government
of the Virgin Islands, summer camps, and a variety of other organiza-
tions and businesses.
Five full-time jobs were made available with the Bureau of Recrea-
tion of the Virgin Islands Department of Education and with the
Department of Social Welfare through the college's participation in
the Federal Work-Study Program.

Caribbean Research Institute
Since its inception last year the Caribbean Research Institute has
made strides in developing a full program of regional research in such
areas as economic development, conservation, and marine resources.
Social and political scientists and a biologist make up the research staff
of six. A key objective of the institute is to help plan more effectively
for the economic and social development of the islands.









84 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

At present the institute is planning a September conference to dis-
cuss the problems of conservation in the Eastern Caribbean area.
Government officials and conservationists from the United States and
the Caribbean will gather at Caneel Bay Plantation, St. John, for the
meeting which will be cooperatively sponsored by the college, the Vir-
gin Islands Government, and the American Conservation Association.
Continuing cooperation with the Peace Corps also provides a way
in which the college can assist in regional development. The college
has now completed its fourth Peace Corps program involving Peace
Corps volunteers who were sent in this case to Jamaica and British
Honduras. A permanent Peace Corps Center for outbound groups to
Africa and to other parts of the Caribbean has been established on St.
Croix. The college will continue to assist in the training of these
volunteers.

Financial Support
Virgin Islands Government appropriations for the College of the
Virgin Islands have increased from $365,000 in the fiscal year 1963-64
to $670,000'in 1964-65. To supplement the $670,000 appropriation,
fund-raising activities for capital outlay purposes have produced addi-
tional funds amounting to $1,126,717 for the year 1964-65. It is be-
lieved that this accomplishment establishes a national record for pub-
lic colleges of this type. Of major importance were a gift of $800,000
from Henry H. Reichhold, bringing his contributions to the College of
the Virgin Islands to $1 million and a gift of $250,000 from Laurance
S. Rockefeller, David Rockefeller, and the Rockefeller Brothers Fund.

Building Program
With increased enrollment and the expectation of even larger future
enrollments has come the need for more living space and more space to
house educational facilities. Plans are being carried out this summer
to provide additional space for the temporary library in Harvey Stu-
dent Center and to add offices and classrooms in the center and in the
classroom-administration building of the college. The college theater
is being renovated and with assistance from the National Science
Foundation a new biology laboratory is being equipped.
More construction is planned for 1965-66. New Buildings include a
library, a women's dormitory, and faculty housing. A community-
cultural center, a structure to house classrooms, laboratories, and ad-
ministrative offices, and a men's dormitory are to follow soon after.






















REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Evening Program
Increases in the number of part-time students have kept pace with
full-time enrollment gains. Some 431 residents of St. Thomas and
St. Croix were taking evening courses in the fall, 1964. If percentage
increases in the coming school year match those of the past years, part-
time enrollments could amount to 700 or more. In St. Thomas alone,
40 academic and vocational courses will be offered in the fall of the
coming academic year. Instructors in the college's program of con-
tinuing education are recruited from business, professional, and aca-
demic talent in the community and from the college's full-time faculty.

Campus on St. Croix
An important part of the college's program of continuing education
is carried out at the new extension center in the Golden Grove area of
St. Croix. Established in September, 1964, the success of this facility
has resulted in the appointment of a full-time director, who will begin
his duties in September, 1965. St. Croix enrollments have more than
doubled in 1964; another substantial increase is anticipated in 1965
when 15 courses will be offered.











Department of Health



Personnel: Operating Appropriation: $4,160,670
The state of health in the Virgin Islands continued to be excellent
during fiscal year 1965. There were some sporadic cases of several
childhood diseases but none reached epidemic proportions and none
posed any serious health problems. There was a continued absence of
diseases prevalent in the tropics.

New Health Centers
The first phase in the planning of two new health centers has been
completed and proposals made for their construction. Each center
will consist of a 250-bed general hospital, 70-bed long-term care fa-
cility, public health center, out-patient clinic, and residence and sup-
porting facilities for the staffs. The multimillion dollar centers are
programed to adequately care for the islands' health needs for the next
20 to 25 years. Planning has now entered the second phase, that of
drawing up the detailed plans and specifications. It is expected these
will be completed by the architectural firm by the end of the next fiscal
year.

Continued Expansion of Health Services
Improvement in health services continued with the addition of new
programs and expansion of the Department staff. These included an
obstetrician, a pediatrician, a pathologist, and two house physicians.
With the recruitment of the pathologist, a pathology department was
organized, equipment was purchased, supplies obtained and facilities
for doing frozen sections established. In addition, a tissue technologist
and medical secretary were retained. Inconveniences previously en-
countered in conducting postmortem examinations for medical and
legal purposes were eliminated and laboratory procedures and tests
improved.

Hospital and Clinical Facilities
Because of the rapid rate of community growth and the increasing
reliance on local health facilities, the full health needs of the islands
cannot be completely met before the new health centers are complete.
However, hospital and clinical facilities continue to be expanded as
rapidly as possible.









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


T' I '


Additional improvements were made in many of the islands' medical facilities.
The upper floor of Knud-Hansen Memorial Hospital was modernized during the
fiscal year.
The third floor of the Knud-Hansen Memorial Hospital was oc-
cupied and the tuberculosis section modernized. Fourteen additional
beds in a completely modern air-conditioned wing were added to the
Ingeborg-Nesbitt Clinic. The completion of this wing greatly reduces
the transfer load between the clinic and the Charles Harwood Memo-
rial Hospital. Central telephone switchboards with paging systems
were installed at both hospitals and the clinic. The Medical Records
Department was enlarged and provided with adequate working space.
An additional dietician was added to the Knud-Hansen Hospital staff
and security guards introduced. In both hospitals, assistant directors
of nurses were appointed while ambulance services on both islands
were strengthened through the acquisition of sufficient ambulances to
provide adequate backup services.

Progress in Public Health Programs
In the field of public health, there has been rapid and significant
progress. A program for the eradication of the Aedes aegypti mos-
quito, carrier of dengue and yellow fever, is now in full operation.
Surveys show that the incidence of this mosquito on the island of St.
John has been reduced to zero. Indications are that the complete
eradication of this mosquito from the Virgin Islands within the next
2 or 3 years is highly probable. At the same time, this program will
effectively reduce other mosquitoes with similar breeding habits.
Programs on heart disease, cancer, and diabetes were expanded with
intensification of the diagnosis of heart disease and referrals to main-


i~iF









88 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

land institutions when indicated for corrective surgery. Cancer screen-
ing tests including the Papanicolau test have continued and proven
popular and effective. The immunization program was expanded with
the extension of the Federal Vaccination Assistance Act.

Staff Training
Advanced study, refresher courses and in-service training continued
to receive emphasis during the fiscal year. A registered nurse from
the Knud-Hansen Hospital was sent to the mainland for 2 years of
anesthesia study. A nurse from St. Croix is taking a year of courses on
operating room techniques. Additional nurses and other personnel are
in residence at various mainland institutions for shorter periods in
various fields of study.

Printing and Graphics Section
Three hundred 'and fifty jobs were produced through the printing
and graphics section during fiscal year 1965. Of that numbers, 288
were health department positions, 42 were community agency jobs, and
20 in other government departments. The section was transferred by
legislative action from the Department of Health to the Department
of Property and Procurement at. the end of the fiscal year.

Bureau of Vital Records and Statistical Services
A new live birth record was established again in the past year. Dur-
ing the calendar year 1964, 1,762 live births were recorded in the Virgin
Islands, an increase of 249 over 1963, the previous record year. The
birth rate was 42.0 per 1,000 estimated population, 'as compared to
39.5 for 1963.
St. Croix had 746 live births with a rate of 39.6 per 1,000, an increase
of 134 over the previous year. St. Thomas had 975 with a rate of 44.4
per 1,000, an increase of 115 over 1963. St. John accounted for 41 live
births, the same as the year before.
In St. Croix, 97.3 percent of all live births occurred in hospitals, in
St. Thomas 99.8 percent and on St. John 92.7 percent.
There were 343 deaths in 1964, a decrease of 8.2 percent per 1,000,
40 deaths less than the previous year. Since these percentages are
based on estimated population figures, they must be considered
approximations. Diseases of the heart accounted for 25 percent of all
deaths in the islands. Accidental deaths decreased from 31 in 1963
to 26 in 1964. The following tables show deaths by age distribution
and leading causes:















REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Age Distribution

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


Total--------- 343 100. 0 156 100.0 187 99. 9

Under 1 year-__--- 55 16. 0 25 16.0 30 16. 0
1-4 years ---- 9 2. 6 2 1.3 7 3. 7
5-14 years_---- 6 1. 7 2 1.3 4 2. 1
15-24 years---------- 16 4. 7 8 5. 1 8 4. 3
25-44 years_---- 29 8. 5 12 7. 7 17 9. 1
45-64 years---------- 82 23. 9 32 20. 5 50 26. 7
65-74 years----- 47 13. 7 22 14. 1 25 13. 4
75 years and over - 99 28. 9 53 34. 0 46 24. 6


Leading Causes of Death

Virgin Islands

Number Rate Percent of
all deaths


1. Diseases of the heart_------------__ 86 205.2 25. 1
2. Malignant neoplasms---------------- 39 93. 0 11.4
3. Diseases of early infancy--------------------- 37 88. 3 10. 8
4. Cerebral hemorrhage and other vascular lesions
affecting central nervous system------_ 32 76. 3 9. 3
5. Accidents_-------------------- -------- 26 62. 0 7. 6
6. Diseases of the digestive system_------------ 19 45. 3 5. 5


St. Croix

Number Rate 1 Percent of
all deaths


1. Diseases of the heart----------------- 38 201. 8 24. 4
2. Certain diseases of early infancy __----------- 19 100. 9 12. 2
3. Malignant neoplasms------------------------- 17 90. 3 10. 9
4. Accidents_ --------------------- -------- 15 79. 7 9. 6
5. Cerebral hemorrahge and other vascular lesions
affecting central nervous system ------------ 14 74. 3 9. 0
6. Diabetes mellitus---------------------------- 8 42. 5 5. 1


1 Rate per 100,000 estimated population.













90 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Leading Causes of Death
Saint Thomas and Saint John


1. Diseases of the heart -------
2. Malignant neoplasms
3. Certain diseases of early infancy-----
4. Cerebral hemorrhage and other vascular lesions
affecting central nervous system
5. Diseases of the digestive system
6. Accidents


Number


Rate 1


207. 9
95. 3
78. 0

78. 0
60. 7
47. 7


Percent of
all deaths


25. 7
11. 8
9. 6

9. 6
7. 5
5. 9


1 Rale per 100,000 estimated population.


There was a greater rate of infant mortality in 1964 with 56 infant
deaths as compared to 48 in 1963 and 40 in 1962. Here, again, the
increase may be due to lower than actual estimates of population in-
crease. Twenty-six of these deaths occurred on St. Croix, 29 on St.
Thomas, and 1 on St. John. The leading causes of infant deaths in
1963 are shown on the following chart:


Virgin Islands

Number Rate Percent of
all deaths


1. Prematurity---------------- 17 9. 6 30. 9
2. Asphyxia and atelectasis------- 12 6. 8 21. 8
3. Pneumonia (all forms)----- -- 9 5. 1 16. 4
4. Gastro-enteritis and colitis_ ----------___ 3 1. 7 5. 4


St. Croix


1. Prematurity _---
2. Asphyxia and atelectasis-.
3. Pneumonia (all forms)--
4. Gastro-enteritis and colitis


SRate per 1,000 live births.


Number


11
3
3
2


Rate I


14. 7
4. 0
4.0
2. 7


Percent of
all deaths


44. 0
12. 0
12. 0
8. 0





























REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 91

Saint Thomas and Saint John

Number Rate I Percent of
all deaths

1. Asphyxia and atelectasis----- 9 8. 8 30. 0
2. Prematurity------------ 6 5. 9 20. 0
3. Pneumonia (all forms)---------- 6 5. 9 20. 0
4. Congenital syphilis---------- 2 2. 0 6. 7

SRate per 1,000 live births.

There were 520 marriages in the Virgin Islands in 1964 as against
539 in 1963. Divorces increased from 171 to 200. There were eight
adoptions.
A summary chart of vital statistics, comparing the calendar years
of 1964 and 1963, follows:
























Summary of Vital Statistics, Virgin Islands and Each Island: 1963 and 1964
[Birth and death rates per 1,000 population. Infant and neonatal death rates and fetal death ratios per 1,000 live births]

1963 1964

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

Number Rate Number Rate Number Rate Number Rate Number Rate Number Rate Number Rate Number Rate

Live births----- 1,513 39.5 612 35.6 41 40.7 860 42.8 1,762 42.0 746 39.6 41 36.9 975 44.4
In home---- 47 '3.1 31 15.1 4 19.8 12 1 1.4 25 1 1.4 20 12.7 3 17.3 2 10.2
In hospital------- 1,466 96.9 581 194.9 37 190.2 848 198.6 1,737 198.6 726 197.3 38 92.7 973 199.8
Deaths------ 383 10.0 195 11.4 14 13.9 174 8.7 343 8.2 156 8.3 11 9.9 176 8.0
Infant deaths--------- 48 31.7 20 32.7 1 24.4 27 31.4 56 31.8 26 34.9 1 24.4 29 29.7
Neonatal deaths----- 37 24.5 15 24.5 0 0 22 25.6 42 23.8 21 28.2 0 0 21 21.5
Maternal deaths.----- 1 0.7 0 0 0 0 1 1.2 2 1.1 0 0 0 0 2 2.1
Fetal deaths....----- 50 33.0 15 24.5 2 48.8 33 38.4 58 32.9 18 24.1 0 0 40 41.0
Marriages. ---------- 539 .- 232 --- ---------- 2307 ..---. 520 -. 225 2295
Divorces.. ..------- 171 ..- 42 ------2 129 200 .---- 58 -- - 2 142
Adoptions-----....... 13 ......- 0 -------- 213 ------- 8 --- 0 ------- 28

I Percent of total for home and hospital.
2 Includes St. John figures.









REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS


Division of Hospitals and Medical Services
Large increases in patient care were recorded in fiscal year 1965.
There were 4,456 admissions to the Knud-Hansen Hospital during
fiscal year 1965 as compared with 3,985 during the previous year. In
St. Croix, the Charles Harwood Hospital and Ingeborg-Nesbitt Clinic
showed a combined admission of 3,873 as compared with 3,273 in the
last fiscal period.
The nursing staff was strengthened and recruitment procedures im-
proved. A medical library was established at the Charles Harwood
Hospital. A trained physio-therapist was recruited on St. Croix with
a resultant marked increase in the quality of that department's serv-
ices.
For the second successive year, a report of the trauma committee of
the American College of Surgeons was most complimentary of the
trauma work being done in the hospitals of the Virgin Islands.

Division of Public Health Services
Many new programs were begun in fiscal year 1965 and many of the
older programs were expanded. The Bureau of Nutrition Services
expanded its areas of responsibility and made plans to increase its
staff. The public health nursing staff was increased and two addi-
tional dentists were recruited for the Bureau of Dental Health. The
venereal disease program was increased with the recruitment of a com-
municable disease investigator for the island of St. Croix. A narcotic
control system was instituted. Courses in sanitation were offered to the
sanitarians by members of the staff of the University of Michigan
School of Public Health.

Division of Mental Health
The Bureau of Mental Health became a division in December and
has expanded its role and begun new programs in such fields as men-
tal retardation. The staff of this division has been greatly enlarged
and services previously offered once or twice a month are now available
full time.
The dual emphasis of the Division of Mental Health is in its
community development program and its clinical services. The task
of community development is accomplished through its research and
training program and its participation in community planning and
public education. The clinical program provides services of diagnosis
and treatment to individuals and families with professional staff avail-
able for consultation as well as participation in seminars, workshops,
205-504 0--6---7










94 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

and discussion groups related to problems of mental retardation or
mental illness. Under both programs in St. Thomas, a total of 170
new referrals were made in the Division of Mental Health and 32
classes reopened in clinic interviews held. Under the clinic service in
St. Croix, 92 cases were opened and 29 reopened. Clinic interviews
numbered 512 and consultations were held by the 2 psychiatrists who
visited St. Croix.
The school mental health program was expanded, a school psychol-
ogist recruited and in a relatively short time, 100 referrals were made.

Bureau of Environmental Sanitation
Environmental health problems continue due largely to the con-
tinued need for an expanded water supply, more efficient sewage dis-
posal, and better housing. The problems are further magnified by the
mountainous terrain and the continued rapid population expansion.
Though great progress was made in each of these areas, there is still
more to be accomplished. The following table shows the types of sew-
erage used in each of the three towns of the Virgin Islands:
Percent
Charlotte Amalie-total properties with dwellings: 2,379
Percentage with pits ---------------------------- 7.6
Percentage with nightsoil removal -----------25.6
Percentage with septic tanks ----------------------------- 3. 3
Percentage connected to sewer --_-------------------------- 61. 5
Christiansted-total properties with dwellings: 759
Percentage with pits ---------------------------------------- 5.4
Percentage with nightsoil removal _--------------------------- 22. 9
Percentage with septic tanks -------- -------_-__ 4. 9
Percentage connected to sewer ---------------------------------68. 2
Frederiksted-total properties with dwellings: 381
Percentage with pits --------------------- -------_- 20. 0
Percentage with nightsoil removal ---- --- -----_ 5. 5
Percentage with septic tanks ---------------- ---------- ---- 0. 3
Percentage connected to sewer -------------- ------------- 77. 4
(The percentages do not total 100 because of properties without any facilities
and properties with dual facilities.)

A complete survey and report on all dental and medical X-ray
machines was maintained and brought up to date during the year.
Seven dental units, four medical units and one flouroscopic machine
are in use on St. Thomas. Six dental units and three medical X-ray
units are on St. Croix and one dental unit is on St. John.
Testing of water and milk and inspection of food handlers continues
to increase with the expanding economy.




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs