• TABLE OF CONTENTS
HIDE
 Front Cover
 Front Matter
 Title Page
 Table of Contents
 General information
 Highlights of the year
 Legislation
 Virgin Islands water and power...
 Virgin Islands airport and industrial...
 Public utilities commission
 Bond issue and interim financi...
 Control of processing of woolen...
 Control of manufacture of...
 Office of public relations and...
 Office of the government secre...
 Department of education
 College of the Virgin Islands
 Department of health
 Department of social welfare
 Department of commerce
 Department of agriculture
 Department of labor
 Virgin Islands employment security...
 Department of public works
 Department of finance
 Office of the director of...
 Department of housing and community...
 Department of property and...
 Department of law
 Department of public safety
 The municipal court of the Virgin...
 Office of probation and parole
 Virgin Islands planning board
 Division of personnel
 Selective service
 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/UF00015459/00005
 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: 1966-1967
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: VID00005
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
    Front Matter
        Front Matter
    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
    Highlights of the year
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
    Legislation
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
    Virgin Islands water and power authority
        Page 22
        Page 23
        Page 24
    Virgin Islands airport and industrial resources agency
        Page 25
        Page 26
        Page 27
    Public utilities commission
        Page 28
        Page 29
    Bond issue and interim financing
        Page 30
        Page 31
    Control of processing of woolen yard goods
        Page 32
        Page 33
        Page 34
        Page 35
    Control of manufacture of watches
        Page 36
        Page 37
    Office of public relations and information
        Page 38
        Page 39
    Office of the government secretary
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
    Department of education
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
    College of the Virgin Islands
        Page 62
        Page 63
    Department of health
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
    Department of social welfare
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
    Department of commerce
        Page 85
        Page 86
        Page 87
        Page 88
    Department of agriculture
        Page 89
        Page 90
        Page 91
    Department of labor
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
    Virgin Islands employment security agency
        Page 97
        Page 98
    Department of public works
        Page 99
        Page 100
    Department of finance
        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
    Office of the director of the budget
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
        Page 120
        Page 121
        Page 122
        Page 123
    Department of housing and community renewal
        Page 124
        Page 125
        Page 126
        Page 127
        Page 128
        Page 129
    Department of property and procurement
        Page 130
        Page 131
        Page 132
    Department of law
        Page 133
    Department of public safety
        Page 134
        Page 135
        Page 136
        Page 137
        Page 138
        Page 139
        Page 140
        Page 141
        Page 142
    The municipal court of the Virgin Islands
        Page 143
        Page 144
        Page 145
    Office of probation and parole
        Page 146
    Virgin Islands planning board
        Page 147
        Page 148
        Page 149
    Division of personnel
        Page 150
        Page 151
    Selective service
        Page 152
        Page 153
        Page 154
    Conclusion
        Page 155
        Page 156
Full Text



967


A
3.54-'12 72
V817"7


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A-'















UNIVERSITY
OF FLORIDA
LIBRARIES






1967 ANNUAL REPORT

Virgin

Islands

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


For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 Price 45 cents




















1/ /A 7
LATI N
AMUUICA










Contents



G general Inform action .......................................... 1
H highlights of the Year ..................................... ... 8
L legislation .................................................... 17
Virgin Islands Water and Power Authority .................. ..... 22
Virgin Islands Airport and Industrial Resources Agency ............. 25
Public Utilities Commission. ................................... 28
Bond Issue and Interim Financing. ............................... 30
Control of Processing of Woolen Yard Goods ....................... 32
Control of Manufacture of Watches. .............................. 36
Office of Public Relations and Information. ........................ 38
Office of the Government Secretary .............................. 40
Department of Education. ....................................... 53
College of the Virgin Islands. .................................. 62
Department of Health. ........................................ 64
Department of Social Welfare. ................................. 75
Department of Commerce .................. .................... 85
Department of Agriculture. .................................... 89
Department of Labor ......................................... 92
Virgin Islands Employment Security Agency ....................... 97
Department of Public Works. .................................. 99
Department of Finance. ................. ...................... 101
Office of the Director of the Budget. ............................ 114
Department of Housing and Community Renewal .................. 124
Department of Property and Procurement....................... .. 130
Department of Law ................. ................... ...... 133
Department of Public Safety. .................................. 134
The Municipal Court of the Virgin Islands. ........................ 143
Office of Probation and Parole. ................................ 146
Virgin Islands Planning Board .................................. 147
Division of Personnel ................. ........................ 150
Selective Service ................. ............................ 152
Conclusion ................................................. 155













General Information


History

Christopher Columbus, sailing to the
S New World on his second voyage in
1493, dropped anchor on the north
side of St. Croix and the island's first
"visitor" took in the unspoiled tropical
beauty and rolling hills of a Caribbean
paradise. The spot is known today as
Salt River Bay, one of the many pic-
turesque inlets in the U.S. Virgin
Islands.
The Great Navigator named his
"discovery" Santa Cruz, meaning "Is-
land of the Holy Cross" and sent a
landing party ashore to replenish the
ship's dwindling water supply. Instead
Sof the warm welcome visitors receive
today, Columbus' men were repulsed
by the fierce Carib Indians. No further
attempts were made to land and colon-
ize until 1555 when the hostile Caribs
were driven from St. Croix by the
soldiers of King Charles V of Spain.
Columbus was so impressed with the
beauty of the island chain, he christ-
ened them "Las Virgenes" in honor of
St. Ursula and her 11,000 martyred
virgins.
The value of these and the other
islands of the West Indies soon became
S apparent to the crowned heads of
\ Europe and colonization was encour-
aged. England, France, Holland, and
Spain vied for control during the 17th
century with sugar as the principal at-
traction. So important was trade with
S the West Indies that Great Britain,
S negotiating with France to end the
Seven Years' War in 1763, seriously


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 Co.
and began serious colonization of St.
Thomas and St. John. St. Croix was
purchased from France in 1733. Except
for a brief period of Brtish occupation
during the Napoleonic Wars, the Danes
ruled these islands until 1917.
Thus began a golden age of com-
merce and peaceful development for
the Virgin Islands, blessed by the Dan-
ish policy of neutrality and liberal tra-
ding 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 Ameri-
can nation supported the burgeoning
island economy.
Sugar was king and its influence was
felt everywhere. Throughout the Is-
lands of St. Thomas, St. Croix, and St.
John, massive stone windmills were
erected for grinding cane. Many of
these towers remain reminders of a by-
gone era and evidence of a once flour-
ishing 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
buccaneers by paying "protection" in






the form of sanctuary and commercial
privileges.
Sugar brought great prosperity to
the islands and the plantation owners.
It also brought misery and privation
to the thousands of slaves who were in-
troduced from Africa in the 1680's to
work the canefields. Their suffering
finally erupted into revolt. On St.
John, after a bloodly mutiny, the slaves
held the islands for 6 months until the
French forces arrived from Martinique
to help the Danish masters regain their
land. Legend has it that the last sur-
vivors of that ill-fated uprising com-
mitted mass suicide by plunging over a
cliff or shooting themselves rather than
face a return to servitude.
Slavery was finally abolished by an
enlightened Denmark in 1848, 15 years
prior to the publication of the U.S.
Emancipation Proclamation. From
then on, sugar decreased in commercial
importance in the Virgin Islands, out-
done by the more favorable conditions
for cane operations in Cuba and
elsewhere.
The United States took its first in-
terested look at the islands during the
American Civil War. However, a pur-
chase agreement fell through when the
Senate refused to ratify the negotia-
tions in 1870. Bargaining continued
throughout the century but it wasn't
until World War I that the United
States moved decisively. Fearing a Ger-
man seizure that would give U-boats a
base in the Caribbean, the United
States bought the Danish Virgins in
1917 for $25,000,000. 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 An-
tilles which form the dividing line be-
tween the Caribbean Sea and the At-
lantic Ocean. They are located directly
in the path of the trade winds, so com-
mercially important in the days of sail,
at the eastern end of the Greater An-
tilles and the northern end of the
Lesser Antilles.
The U.S. Virgins consist of some 50
islands and cays of volcanic origin.
Their neighbors, the British Virgins,
are made up of another 30 similar is-
lands and cays.
Only three islands in the U.S. group
are of any population or commercial
significance. The largest of these, St.
Croix, with 84 square miles is, for the
most part, flat, and suited for agricul-
tural use. Forty miles due north, St.
Thomas with 28 square miles, offers
dramatic rugged mountains that rise
sharply from the sea to 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
sea scapes. Both islands rise from the
same submarine plateau. Between these
two islands and St. Croix, the Carib-
bean Sea deepens to a 15,000-foot
trench.
Because of the steep sloping moun-
tainsides, very little land on St. John
or St. Thomas is tillable. St. Croix,
however, is well suited agriculturally,
and priority is being given to the ad-
vancement 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. Conse-
quently, sugar has been phased out and
terminated as a commercial crop.
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 un-
der the U.S. flag, attracts pleasure
yachts and medium-sized 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 re-
sources are limited by its rugged land-
scape, more than makes up for this
deficiency with its excellent natural
harbor. It is one of the ranking ports
of call for cruise ships, and the expan-
sion of its airport facilities has now
allowed for jet travel to the island.
St. John's main attraction is its un-
spoiled beauty, guaranteed to remain
so since most of the island is taken up
by the Virgin Islands National Park.
The incomparable beaches, breathtak-
ing mountain views, and lush vegeta-
tion bring an increasing number of
visitors each year, who explore the is-
land's charm by jeep or boat.
The U.S. Virgins enjoy a near per-
fect climate. Temperatures stay within
the 70 to 900 range with an average
780. The balmy trade winds provide
natural air conditioning. Humidity is
comfortably low with rainfall averag-
ing about 45 inches a year.
There is an abundant variety of
tropical flora ranging from the well-
known hibiscus, bougainvillea, olean-
der, poinsettia, and wild orchid, to the
less common African tulip, frangi pani,


and lignum vitae. Many other flower-
ing trees and shrubs add to the island's
color and fragrance. Coconut and
royal palms are everywhere while the
quieter beaches are lined with man-
grove, mahoe, and seagrape 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 fishing sense, are rapidly be-
coming recognized as a prime fishing
area. Blue marlin, wahoo, tuna, tarpon,
kingfish, and bonefish are taken the
year round while white marlin and
sailfish are caught during most months.
The Virgin Islands now holds the
world record for the largest blue mar-
lin, 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 angelfish.
The islands provide stone, sand, and
gravel as building materials but there
are no minerals of commercial signifi-
cance.

Government

The Virgin Islands have been gov-
erned by many nations. The flags of
Spain, France, Holland, England, Den-
mark, and the United States have
flown over all three islands and St.
Croix, for a brief time, was adminis-
tered by the Knights of Malta.
When the United States purchased
the Virgin Islands in 1917, the transi-
tion was accomplished smoothly by re-
taining the Danish legal code as the
basic law. The Navy was given respon-
sibility for administering the islands







until 1931. Military, civil, and judicial
power were vested in the Naval Gov-
ernor, who was appointed by the Presi-
dent of the United States.
On February 27, 1931, an Executive
order from the White House trans-
ferred jurisdiction from the Navy to the
Department of the Interior, and the
first civilian governor was appointed
by the President.
A major change in the method of
governing the islands occurred with the
passage of the Revised Organic Act of
1954, by which the Congress author-
ized distinct executive, legislative, and
judicial branches and provided for a
substantial degree of self-government.
Changes in the act are now under con-
sideration which, if granted, would
give the Virgin Islands an even greater
degree of home rule.
Presently, the Governor is appointed
by the President of the United States
with the advice and consent of the
Senate. Working with the Department
of the Interior and its Secretary, the
Governor is responsible for execution
of local laws, administration of all ac-
tivities of the executive branch, ap-
pointment of department heads and
other employees. He reports annually
to the legislature on the state of the
territory and recommends new legis-
lation to carry out the various pro-
grams of local government.
The government secretary is also
appointed by the President. In the ab-
sence of the Governor, the government
secretary serves as acting Governor. He
has administrative responsibility for
banking and insurance laws and the li-
censing and assessment of real prop-
erty.
The unicameral legislature is elected
for 2-year terms. There are 15 senators,
five from St. Croix, five from St.
Thomas, one from St. John, and four
elected at large by Virgin 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 judge of the district court of the
Virgin Islands and the U.S. district
attorney are appointed by the President
of the United States. The district court
exercises jurisdiction over felony viola-
tions of the local criminal code as well
as jurisdiction over crime arising under
Federal law. The municipal court
judges, two in St. Thomas, two in St.
Croix, are appointed by the Governor,
and confirmed by the legislature. The
municipal court exercises jurisdiction
over misdemeanor violations and traf-
fic offenses under the local law.
Civil cases involving less than $500
are handled by the municipal court;
cases involving from $501 to $10,000
are handled by either the municipal
court or the Federal court; all cases
over $10,000 are in the exclusive juris-
diction of the Federal court.
The district court of the Virgin
Islands exercises appellate jurisdiction
over the municipal court in civil and
criminal cases. The U.S. Court of
Appeals for the Third Circuit, Phila-
delphia, 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 Vir-
gin Islands from which funds are
derived for capital and operating dis-
bursement.
The largest source, and one that is
growing every year, is from local in-
come taxes. An act of the Congress of
the United States provides that Federal
income tax schedules be applied as a
local tax in the Virgin Islands. Another






major contributor to the treasury
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 funds, the
islands must raise through local taxes,
funds which match in size the excises
to be rebated.
In fiscal 1967, the grand total col-
lected for capital and operating re-
quirements was $46,948,182 as com-
pared with $37,594,187 in 1966 and
$28,905,904 in 1965.
In addition, the Federal Govern-
ment assists the islands by appropria-
tions and grant-in-aid allotments for
many activities in employment services,
public assistance, health and diseases
services, wildlife, and libraries. There
are over 60 such aid programs and
appropriations.


Economic Development

Tourism continues to be the most
important industry in the Virgin Is-
lands. Income from visitors' expendi-
tures during fiscal year 1967 reached a
new record high of $75 million as com-
pared with $59 million in fiscal year
1966.
Efforts continue toward the creation
of a broader industrial and agricultural
base within the islands' economy. To
establish and maintain this economic
stability, small manufacturing firms are
continually being encouraged to estab-
lish operation in the islands. On St.
Croix, two large industrial concerns are
in production, providing employment
opportunities for a large number of
citizens.
Such diversification provides year-
round employment at good wages for
many islanders, and has helped bring
about a higher standard of living than
ever existed under the one-crop, one-
industry, sugar economy of old. Virgin


Islanders' per capital income is in excess
of $2,100 and is by far the highest in
the entire Caribbean.
The sale of rum, the distilling of
which is a major industry of the islands,
is promoted through the Virgin Islands
Rum Council, supported jointly by the
rum distillers and the local govern-
ment.
Tax exemptions and subsidy benefits
have long been used by the local gov-
ernment to encourage industrial devel-
opment. Incentives for private invest-
ment in hotels, guesthouses, 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 al-
lowed 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
60,000, including alien workers and
part-time residents, and it is expected
this will jump to 70,000 by 1970.
The 1960 census recorded the resi-
dent population at 32,099. A break-
down of the 1960 population figures
records 15,930 males and 16,169 fe-
males. 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.

























Under Manpower Development Training
Act Programs, the Virgin Islands Depart-
ment of Labor in cooperation with local
industries and businesses fosters technical
training for young islanders. Here an ap-
prentice develops skills as a shop machinist.


English is the traditional language
of the Virgin Islands. Some French is
spoken by citizens of French descent on
St. Thomas, and many Spanish-speak-
ing families have come from Puerto
Rico, chiefly settling in St. Croix.
The people are devout and worship
in many churches including Roman
Catholic, Anglican, Lutheran, Meth-
odist, Jewish, Moravian, Seventh-Day
Adventist, Pilgrim Holiness, Christian
Mission, Dutch Reformed, and Baptist.


Health and Education

The Virgin Islands have set an ex-
ample for the entire Caribbean in the
preservation of health, the develop-
ment of education, and the replace-
ment of slums with modern housing.
Each year sees further advances in
hospital and public health services, and
two multimillion-dollar health centers
designed to provide adequate facilities
for the long-range needs of the com-
munity will reach to construction stage


in 1968. Diseases once associated with
tropical climates have long since been
eradicated, and the climate eliminates
the need for home heating or heavy
clothing, further contributing to the
good health of the Virgin Islands.
Educational standards continue to
be upgraded. Public schools cover
kindergarten through high school, and
the islands' two major high schools
have full accreditation. A crash school
construction program, begun 2 years
ago, has created an additional 109
classrooms in the islands.


Communication and Transportation

All three Virgin Islands enjoy the
facilities of a dial telephone system that
is being constantly expanded to meet
the growing needs of the community.
Marine cables have been installed that
has made possible direct dialing to
Puerto Rico and to the mainland in
early fiscal 1967. Worldwide radio
telegraph service is also available.
The islands are served by three radio


Advanced teaching machines are being in-
corporated in Virgin Islands public school
programs. Here one such instrument is
being used to develop communicative skills
among elementary school pupils.






stations, two television stations, and
six newspapers, four of them dailies.
While most visitors come by air, fly-
ing in jet planes to Puerto Rico and
then by smaller planes to the islands,
aircraft design of recent years is af-
fecting this travel pattern. With the
introduction of medium-range jet air-
craft, capable of takeoffs and landings
from short runways, the islands are
now serviced by daily direct jet serv-


ice from New York City. Aside from
short-stay cruise ship passengers, there
are very few people who arrive by boat.
Small native sloops and charter boats
carry travelers between islands and to
the nearby British Virgin Islands.
Local transportation is provided by
bus, taxis, and rented vehicles. Most
roads are paved, with continued im-
provement each year, and driving is on
the left side of the road.











Highlights of the Year


At the close of fiscal year 1967, the
Virgin Islands was positioned to view
accomplishments, not only of the pre-
vious 12-month period, but on a broad
and highly significant scale, of progress
realized over the course of a 50-year
association with the United States.
The contemporary efforts of this cur-
rent administration, and that of others
since 1917, when viewed and evaluated
within the context of these 50 years,
presents a total picture of upward
movement in terms of social, economic,
and political development in the
islands.
March 31-Transfer Day in the
Territory-in 1967 provided the op-
portunity for reflection, accessment,
and projections into the Virgin Islands
future, as the total populous, together
with distinguished guests from the
United States and Denmark joined in
an impressive observance marking 50
years under the American flag. His Ex-
cellency Torben Ronne, Ambassador of
Denmark to the United States, and the
Honorable Stewart Udall, U.S. Secre-
tary of the Interior, led the list of guests
at the major semicentennial programs.
The 50-year relationship between the
Virgin Islands and the United States
provided added significance to the
islands' invitation extended to the Na-
tional Governors' Conference to hold
its 1967 convention in the territory. At
their Los Angeles meeting in July 1966,
the Nation's Governors voted unani-
mously to accept this invitation, and at
the end of the fiscal year, extensive


plans were underway in the islands to
host the convention in October 1967.
As these two activities will have re-
sulted in tremendous exposure of the
Virgin Islands throughout the main-
land, continued inner development and
growth was recorded in broad areas of
the economy and in insular social serv-
ices during the year.
Efforts to further diversify the econ-
omy saw steady results, and definite in-
roads were realized in the government's
efforts to provide more and better
housing, expanded health services, in-
creased classroom space, educational
facilities and services, and additional
power and water supplies.
A close relationship was maintained
between the islands' territorial govern-
ment and the Congress of the United
States, the Department of the Interior,
and other Federal agencies that steady,
healthy progress continue toward the
fulfillment of long-range plans through
Federal-insular cooperation.


Efforts Toward Greater Autonomy
See Gains

Federal-insular relationships during
the year continued to be highlighted by
efforts for the passage by the Congress
of an Elected Governor Bill for the
territory.
Hearings were scheduled by commit-
tees in both houses on such a measure,
where unqualified endorsements of the
Department of the Interior, and the






testimonies of Virgin Islanders were en-
tered into the record.
The bill passed both houses. How-
ever, in that differences existed in pro-
visions to be found in the House and
Senate versions of the bill, the measure
was referred to a conference commit-
tee. Because of other pressing legislative
matters the bill did not come up for
consideration and the measure was
once again introduced in the congres-
sional session that began in January
1967.
At the close of fiscal year 1967, a re-
introduced Elected Governor Bill for
the Virgin Islands was under consid-
eration in both the Senate and the
House with eventual passage expected
by both bodies in the coming fiscal
year.
A bill that increased the number of
Virgin Islands Legislators from 11 to
15 was passed by the Congress and
signed into law by the President during
the year.
This enlarged body took office in
January 1967 and overall improve-
ments in legislative procedures were
soon noted. Membership on legislative
committees was more evenly distrib-
uted and workloads for senators pro-
portioned for the effective application
of committee duties.


Industrial Development Boosted

A major incentive for selective in-
dustrialization in St. Thomas through
the establishment of small- and medi-
um-size manufacturing operations oc-
curred during the year when the local
government acquired from the Fed-
eral Government 196.3 acres of land
at the submarine base, portions of
which have been earmarked for an in-
dustrial park.
The land and improvements were
appraised by the General Services Ad-
ministration at $3,934,000 and acquisi-


tion accomplished in February 1967
under terms of 10 percent down, with
the balance to be paid over a period of
10 years at an interest rate of 43/4 per-
cent.
With ownership and management of
these properties now in the hands of
the Virgin Islands government, plans
can now proceed smoothly for indus-
trial development on St. Thomas, uti-
lizing highly suitable sites in the sub-
marine base area.
Due to natural physical advantages,
the Island of St. Croix has led over St.
Thomas as the center for industrial
development in the islands. A leveling
off of this situation is now possible
through the acquisition of this land and
its subsequent development as an in-
dustrial area on St. Thomas.
The stabilizing effects on the Virgin
Islands economy as a result of the ac-
tivities of two major industries in
operation on St. Croix continued in
evidence. More employment opportu-
nities opened up for the island's inhab-
itants, both within these companies,
and within the total labor market that
has expanded as a result of such in-
creased industrial activity.
The island's large alumina plant
reached full production during the
year and the petroleum refinery began
operations.
With regards to the latter operation,
tremendous economic benefits were
foreseeable for the islands should this
company be granted a requested in-
crease in its oil importation quota into
the United States. At the end of the
year the Government cognizant of such
benefits, which would amount to $12,-
500 per day in royalties paid by the
company to the Virgin Islands Treas-
ury, had prepared legislation specifi-
cally outlining areas in which such
funds would be utilized to assure air
and water pollution control, adequate
sewage disposal, and proper utiliza-






























An aerial view of submarine base, St. Thomas, acquired by the Government of the Virgin
Islands from the Federal Government this year. Portions of the land have been earmarked
for the development of an industrial park.


tion and development of outdoor
recreational areas. Total support from
all segments of the Virgin Islands so-
ciety was extended on behalf of the
petroleum company's application for
increased quotas before the Oil Import
Administration.
Additional benefits possible through
this increased quota involve the estab-
lishment of satellite industries in St.
Croix, based on petrochemical manu-
facturing.
Utilizing the byproducts of the petro-
leum operation, these industries would
be naturally attracted to establish in
the vicinity of the refinery for the
manufacturing of plastics and other
products, thereby creating still greater
economic diversification in the islands.

Bond Financing Increases

The fiscal integrity of the govern-
ment of the Virgin Islands continued to


receive highly favorable endorsement
by banking institutions, both in the is-
lands and on the mainland.
By the end of the year the Govern-
ment had successfully sold $5,200,000
in general obligation bonds and $6,-
400,000 in interim general obligation
and electric revenue bond anticipation
notes on the New York market; and
interim general obligation bond antici-
pation notes totaling $4,515,000 were
held by local banks.
Such confidence on the part of finan-
cial institutions was particularly in evi-
dence during the year when the largest
note sale of the period took place in
New York City on May 17. A total of
$6,400,000 in interim bond anticipa-
tion notes were purchased at that time
by the Chase Manhattan Bank. The
sale included $2,400,000 in water sys-
tem general obligation bond anticipa-
tion notes at an interest rate of 2.55
percent, and $4,000,000 in electric






revenue bond anticipation notes at an
interest rate of 2.98 percent.
The latter represented the first sale
of revenue notes, and was authorized
by resolution No. 33, adopted by the
Governing Board of the Virgin Islands
Water and Power Authority on April
14, 1967.
Financial consultants to the govern-
ment expressed pleasure with the prices
obtained on these sales and indications
are that such favorable prices will be
helpful in obtaining a good interest
rate when the revenue bond issue is
brought to the market.

Power and Water Developments

With the sale of the Electric System
Bond Anticipation Notes, positive ef-
forts were possible toward an extensive
program to increase the supply of this
public utility in the islands.
A 10,000 kilowatt electric generating
unit is currently being installed on St.
Croix at a cost of $2,500,000 and in
May 1967 bids were let for a 1 million
gallons per day desalting plant which
will operate in conjunction with this
generating unit. Construction on this
$1,155,990 water unit will begin in
October 1967 and is expected to be
completed in March 1968.
On St. Thomas work began on a
$6.3 million combination 2.5 million
gallons per day desalting plant and
15,000 kilowatt net steam generating
plant to be located at Krum Bay.
The first section of the desalting
plant will be installed in November
1967 with full commercial operations
scheduled for mid-1968. This unit will
supplement the two existing desalting
plants on St. Thomas which during the
year produced a total of 311.8 million
gallons of fresh water.
Electrical power output increased
significantly during the year. On St.
Croix total power production was 50.9
million kilowatt-hour, or 33.24 percent


higher than in the previous year. St.
Thomas power production for the
same period was 84.8 million kilowatt-
hour, or 21.66 percent higher than in
fiscal year 1966.


Educational Services Expanded

A crash school building program
begun in fiscal year 1966, by the end of
the period covered in this report had
resulted in the creation of an addi-
tional 109 classrooms in the islands.
Major construction work had been
completed on two major facilities, the
40-classroom Wayne N. Aspinall
Junior High School on St. Thomas,
and the 42-classroom Central High
School on St. Croix. Both of these
schools will admit students in Septem-
ber 1967.
Also completed during the year was
the new Tutu Elementary School, a
10-classroom facility designed to serve
an area of concentrated development
on the eastern end of St. Thomas.
Under the crash school building
program, additional classrooms were
or are in the process of being added to
four schools in St. Thomas. Two class-
rooms each have been added to the
Herrick and Madison Schools, and
three at the Jane E. Tuitt School.
Construction was nearing completion
at the end of the year on a 10-room
addition to the Nisky School.
Significant progress was realized in
the curriculum and instructional areas
of education. In the elementary sys-
tem, the Grove Place School on St.
Croix operated as a demonstration
school with a special coordinator as-
signed from New York University, and
a nongraded primary program estab-
lished at the Lockhart Elementary
School on St. Thomas.
On the secondary level, an educa-
tional Core Program was introduced
into three junior high schools after a







year of planning, orientation of teach-
ers, and final acceptance by the Board
of Education.
Of great importance in the Depart-
ment of Education's achievements
during the year were the contributions
made under the Elementary and Sec-
ondary School Act of 1965, the Office
of Economic Opportunity, and other
Federal and local agencies. These and
other activities within the department
are handled more in detail further in
this report.


Virgin Islands Higher Education

The College of the Virgin Islands
in fiscal year 1967 experienced growth,
both in a physical sense and in terms
of services offered full- and part-time
students, and the Virgin Islands com-
munity in general.
The fall enrollment of full-time
students numbered 229, an increase of
79 percent over last year. In the Di-
vision of Continuing Education 700
were enrolled, an increase of 17 per-
cent over the previous year.
The college's building plans, out-
lined in the 1966 annual report, have
been realized with construction now
underway on women's residence halls,
a library, and faculty homes. A nursing
building will be the next unit con-
structed under the college's master
building plan.
An important development for the
college was its assumption of full re-
sponsibility for the U.S. Department
of Agriculture Federal Extension Serv-
ice in operation on the Island of St.
Croix.


Economic Opportunity Act
Programs Expand

Over the course of fiscal year 1967
a total of 18 Economic Opportunity
Act and related programs were funded


and in operation in the Virgin Islands.
Administered fully or in part by the
Virgin Islands Office of Economic
Opportunity, these programs during
the year received a total of $3,074,925
in Federal and local funds.
On out-of-school neighborhood
youth corps programs, approximately
600 young persons were served, who
were given paid work experiences,
remedial and vocational education,
and counseling in order to increase
their employability or to assist them to
resume their education.
Under the in-school neighborhood
youth corps program, 365 enrollees
benefited through paid work experi-
ences and special counseling designed
to assist them to continue in their edu-
cation. This program was sponsored
and administered by the Virgin Islands
Department of Health.
A summer headstart program, spon-
sored by the Virgin Islands Governor's
Commission for Human Services, and
administered by the Department of
Education, saw 500 children enrolled
in an 8-week undertaking that pro-
vided compensatory education prior to
their attending school in the fall.
A 10-month program of compensa-
tory preschool education for disadvan-
taged children was provided, using
public, private, and parochial schools
and community centers as classrooms
under a full-year headstart program.
From this program, 500 children
profited.
During the year 50 headstart teach-
ers and aides participated in an "on
island" training program and 30 at-
tended a 7-week training session at
Wheelock College, Boston, Mass.
A particularly unique VISTA pro-
gram in operation in the islands saw
36 volunteers serving 270 preschool
children, 150 adults, and approxi-
mately 100 students in need of special
tutoring. Functioning within the neigh-






borhoods of the persons served, these
volunteers conducted community de-
velopment and preschool programs, as
well as assisted other programs of the
local government designed to combat
poverty and further the health, educa-
tion, and welfare of the territory.
Project Upward Bound, serving high
school students from low-income fam-
ilies, and designed to help them finish
school and then motivates them on to
college, provided a full-time residential
summer program at the College of the
Virgin Islands. This was followed up
by an academic year of Saturday
classes and midweek tutorial sessions
in addition to their normal studies.
This program served 120 students.
Funds were approved during the
year for two mobile health clinics, one
for St. Thomas and the other for St.
Croix, under a health outreach
program.
The Virgin Islands Office of Eco-
nomic Opportunity also provided em-
ployment opportunities for needy
adults in approximately 68 cases under
a work experience program adminis-
tered by the Department of Social
Welfare. Other OEO programs operat-
ing during the year were work-study
programs, administered by the College
of the Virgin Islands; an adult basic
education program, administered by
the Department of Education; and the
Job Corps, which saw 129 young Virgin
Islanders enrolled in mainland Job
Corps centers acquiring vocational and
educational skills.


Gains in Health and Housing

Concentrated concern continued to
be applied in areas of health and hous-
ing during the year.
Within the Department of Health's
operations, important strides were
particularly noted on St. Croix. The
medical staff at the Charles Harwood


282-34S 0-8---2


Memorial Hospital was reorganized
into services of surgery, medicine, ob-
stetrics, and pediatrics and a chief of
each service plus staff assigned.
Work began on a 32-bed addition to
this facility in May 1967. This new
addition will greatly alleviate conges-
tion and provide space for ancillary
services such as a modern physiother-
apy department and medical library.
The Division of Public Health,
Bureau of Environmental Sanitation,
continued its vigorously pursued pro-
gram to eliminate the Aedes Aegypti
mosquito in the islands. The index has
been markedly reduced, almost to zero
in St. Thomas and St. Croix. It is ex-
pected that this disease-carrying insect
will be eradicated within the year on
these two islands as it has now been on
St. John.
While the government's efforts over
the past 6 years have produced major
advances in housing, limited funds
have prevented the operation of a
larger and still more dynamic pro-
gram to meet the ever-increasing
demands of residents for better living
conditions.
The recent introduction of large,
low-cost developments by private de-
velopers, however, is expected to
alleviate the conditions to a great
extent.
The government's concerted efforts
in these two major areas are described
in the more detailed departmental
reports to follow.


Economic Growth

All economic indicators during the
year showed continuing upward
growth, with employment opportuni-
ties expanding, government revenues
increasing, per capital income remain-
ing on a healthy level, and tourist
derived dollars again setting alltime
records.

13



































Under the Virgin Islands Department of Housing and Community Renewal insular
financed public housing programs see the development of such emergency units as this
one located in hospital grounds, St. Thomas.


Tourist expenditures reached $75
million during the year as compared
with $59 million in fiscal year 1966. A
meaningful indication of the vitality
and stability of the economy is seen in
the continued expansion of banking
activities by leading national and inter-
national institutions. During the fiscal
year, First National City Bank of New
York supplemented its St. Croix opera-
tion with a branch in St. Thomas and
Barclays Bank D.C.O. of London,
licensed to do business in fiscal year
1966, went into full operation in the
islands.
Further on the banking scene, major
construction was begun on new office
buildings by the Virgin Islands Na-
tional Bank and Barclays Bank
D.C.O., on Veterans Drive in St.
Thomas, thereby increasing overall


land values in the area, as well as
adding greatly to the physical appear-
ance of the waterfront.

Tourism Development

The evergrowing demands upon
public services and facilities are yearly
compounded by increasing numbers of
tourists visiting the islands. During
fiscal year 1967, a total of 649,652
visitors came to St. Thomas, St. Croix,
and St. John, graphically attesting to
the growing popularity of the Virgin
Islands with vacationers.
To further stimulate such visitations,
the Department of Commerce strength-
ened its promotional efforts in many
areas, both through media advertising,
and person-to-person contacts with
travel interest groups.






On the hotel and resort scene, a
major 150-room waterfront hotel
opened for business in St. Thomas and
preliminary plans are being formu-
lated for an additional luxury-type re-
sort facility on St. Croix.
St. John National Park continued
to enjoy year-round full bookings at its
campsite on Cinnamon Bay, and St.
Croix's 18-hole championship Foun-
tain Valley Golf Course saw increasing
numbers of players from the mainland,
Puerto Rico, and the islands.
Precustoms clearance became a re-
ality in the Virgin Islands during the
year with the opening of a customs
facility at the Alexander Hamilton
Airport on St. Croix for the conven-
ience of travellers returning to the
mainland. Quick and expedient pre-
customs clearance is now possible for
the islands' visitors returning to New
York City on direct flights from St.
Thomas and St. Croix.


Additional Air Service Realized

The government of the Virgin Is-
lands in fiscal year 1967, intensified its
efforts to see the further expansion of
air service into the islands. In briefs
filed before the Civil Aeronautics Board
in Washington, the government has
gone on record in support of its long-
standing position that the islands are
in growing need of additional and ex-
panded routes from the U.S. mainland.
The government in the previous fis-
cal period had supported the petition
of Pan American World Airways to
be allowed to start turnaround service
in the Virgin Islands and this request
was granted by the Civil Aeronautics
Board. That such service would meet
a definite travel demand was exempli-
fied during fiscal year 1967 through the
fact that Pan American increased sig-
nificantly the number of direct jet


flights into St. Thomas and St. Croix
from New York City.
To better facilitate landings and
takeoffs for these jet aircraft improve-
ments were made to the runway and
approaches at the Harry S. Truman
Airport on St. Thomas. This involved
extending the runway to the west and
removing portions of a hill on the east-
ern end of the airport.
While Pan American Airways serv-
ice into the islands is a step in the de-
sired direction, the territory would like
to see in air travel into and from the
islands, the government during the
year continued in its quest for ultimate
service by supporting Eastern Airlines
and Trans Caribbean requests to serv-
ice St. Thomas and St. Croix.
Further to protect the competitive
tourism position of the Virgin Islands
the government continued to formu-
late plans for the development of a
new airport for St. Thomas capable of
accommodating the larger jet planes
of the near future. At the end of the
fiscal period, a feasibility study had
been completed by consultant engi-
neers for this facility.


Sights on the Future

As fiscal year 1967 ended, the Gov-
ernment of the Virgin Islands was well
at work on programs, projects, and
plans designed to fulfill needs of the
far-reaching future. As formulations
for an up-to-date airport for St.
Thomas proceeded into the planning
phase, so were other efforts reaching
the incubation stages. Long-range ef-
forts toward the creation of multimil-
lion-dollar health centers on St.
Thomas and St. Croix proceeded on
schedule, and preliminary plans in-
stituted toward effective air and water
pollution controls.
On-the-scene efforts in Washington
were offered by Government officials







and consultants to assure the Virgin
Islands inclusion in federally sponsored
educational television legislation. Fur-
ther, by maintaining close Federal re-
lations, the islands very early in the
program had submitted applications
for planning grants that established a
Virgin Islands Arts Council program.
The Government is maintaining a
close watch on trends in tourism and
how the travel patterns of vacationers
may change in the coming future. In
this respect, future vacation travel may
very well see the full development of
combination air-sea trips in the Carib-
bean with a particular area serving as
the beginning and terminal point for
such package arrangements. The Vir-
gin Islands are highly suitable for such
a travel center and long-range plan-


ning keeps this eventuality in mind.
As the islands continued to draw
greater numbers of visitors from the
United States mainland, and increasing
numbers from Canada, so too have the
attractions of St. Thomas, St. Croix,
and St. John come to the attention
of Europeans, Africans, and Asians
through the U.S. Department of
State's foreign visitor programs.
As active participants in these pro-
grams, the islands during the year
hosted a considerable number of for-
eign dignitaries. The government con-
tinues to take pride in its contributions
in this area and appreciates this oppor-
tunty of presenting to these foreign
dignitaries a picture of American
democracy as it exists under the Virgin
Islands way of life.




A young Charlotte Amalie High School artist shows her paintings in a Department of
Education sponsored islandwide exhibit. Creative expression is being encouraged in all
of the arts through programs fostered by the Department of Education and the Virgin
Islands Council on the Arts.


;k -











Legislation


During the fiscal year ending June
30, 1967, there were four sessions of
the sixth legislature and three sessions
of the seventh legislature as follows:
Sixth Legislature, Fifth Special Ses-
sion, August 13, 1966.-Two bills and
four resolutions were proposed. One
bill and three resolutions were adopted.
One bill was not considered and one
resolution was referred to committee.
One bill was approved by the Gover-
nor. The resolution did not require
executive action.
Sixth Legislature, Sixth Special Ses-
sion, August 24, 1966.-Eleven bills
and two resolutions were proposed. Ten
bills and two resolutions were adopted.
One bill was not considered. Ten bills
were approved by the Governor. The
resolutions did not require executive
action.
Sixth Legislature, Seventh Special
Session, September 9, 1966.-Four bills
and one resolution were proposed. Four
bills and three resolutions were pro-
posed. Twelve bills and three resolu-
tions were adopted. Twelve bills were
approved by the Governor. The resolu-
tions did not require executive action.
Sixth Legislature, Eighth Special
Session, December 1, 1966.-Twelve
bills and three resolutions were pro-
posed. Twelve bills and three resolu-
tions were adopted. Twelve bills were
approved by the Governor. The resolu-
tions did not require executive action.
Seventh Legislature, Regular Ses-
sion, January 16, 1967-March 16,


1967.-One hundred seventy-eight
bills and twenty-three resolutions were
proposed. One hundred thirty-three
bills and twenty-one resolutions were
adopted. Two bills were withdrawn
and one resolution recalled. Twenty
bills were dropped and twenty-three
referred for further study. The Gover-
nor approved one hundred sixteen bills
and vetoed seventeen.
The resolutions required no execu-
tive action.
Seventh Legislature, First Special
Session, April 17-19, 1967.-Fifty-one
bills and seven resolutions were pro-
posed. Fifty bills and seven resolutions
were adopted. One bill was referred to
committee. The Governor approved
forty-four bills and vetoed six. The
resolutions required no executive
action.
Seventh Legislature, Second Special
Session.-Forty-nine bills and six reso-
lutions were proposed. Forty-four bills
and five resolutions were adopted. Five
bills and one resolution were dropped.
Forty-eight bills were approved by the
Governor. The resolutions did not re-
quire executive action.
In addition to the major budgets, the
following are the most significant acts
adopted during the year:
To Provide for the Date of Primary
Elections and the Filing of Nomina-
tions in the Year 1966.
To Provide Assistance to Livestock
Raisers, and for Other Purposes.






To Amend Title 18 of the Virgin
Islands Code Relating to Elections.
To defer the Application of Penalties
on 1965 Real Property Taxes.
To Authorize the Governor To Con-
duct Negotiations for the Acquisition
of Certain Lands at Estate Concordia,
Fredericksted, St. Croix.
To Authorize the Issuance of Addi-
tional General Obligation Bonds or
Other Evidences of Indebtedness for
the Construction, Improvement, Ex-
tension, Betterment, Repair, Recon-
struction, Acquisition, and Equipment
of Water Systems and To Amend Act
No. 1259, Approved October 20, 1964,
as Amended.
To Authorize the Purchase of Cer-
tain Lands at Estate Honduras, St.
Thomas, To Authorize Appropriations
Therefor, and for Other Purposes.
To Authorize the Governor of the
Virgin Islands To Execute a Certain
Supplemental Agreement to "Agree-
ment Between the Government of the
Virgin Islands and Hess Oil Virgin
Islands Corporation, Relating to the
Construction of an Oil Refinery and
Other Related Facilities in St. Croix,
Virgin Islands." Dated September 1,
1965.
To Provide for the Number of Poll-
ing Places for the 1966 Primary Elec-
tion, and for Other Purposes.
To Repeal the Provisions of Section
310 of Title 17 of the Virgin Islands
Code Relating to the Limitation on
the Number of Veterans Granted
Assistance Under the Provisions of
Title 17.
To Amend Act No. 1251 Relating
to the Acquisition of the Electric
Power and Water Systems of the
Virgin Islands.
To provide Appropriations for the
Semicentennial Year Including the
Governor's Conference in the Virgin
Islands.


To Amend Act No. 1665, Relating
to the Construction of Camping Fa-
cilities for the Peace Corps.
To Amend Section 106 of Act No.
1248 To Increase the Revenue Bond
Financing Authorization for the
Virgin Islands Water and Power
Authority.
To Amend Act No. 1259, Approved
October 30, 1964, as Amended, Re-
lating to Issuance of General Obliga-
tions Bonds for Certain Purposes.
To Authorize the Governor to Ne-
gotiate for the Purchase and Installa-
tion of Water Storage Tanks in St.
Croix and St. Thomas.
To Provide for a Commission on
the Reapportionment of the Legisla-
ture of the Virgin Islands, and for
Other Purposes.
To Repeal Certain Provisions of
Chapter 9, Title 33 of the Virgin
Islands Code, Relating to Production
Taxes on Watches, Clocks, and Tim-
ing Apparatus Manufactured in the
Virgin Islands, and for Other Pur-
poses.
To Amend the Provisions of Section
502(b) of Title 33 of the Virgin
Islands Code Relating to Woolen
Yard Goods.
To Facilitate Mortgage Financing in
the Virgin Islands, and for Other Pur-
poses.
To Amend Section 46, Title 17 of
the Virgin Islands Code, Relating to
the High School Equivalency Program.
To Amend Section 106 of Act 1248,
to Increase the Revenue Bond
Financing Authority of the Virgin
Islands Water and Power Authority.
To Amend the Provisions of Title 4,
Chapter 7 of the Virgin Islands Code
Relating to the Small Claims Division
of the Municipal Court.
To Amend Section 51 of Title 1,
Virgin Islands Code Relating to the
Severability of the Provisions of the
Laws of the Virgin Islands.







To Designate the Commissioner of
Agriculture as the Territorial Forester
of the Virgin Islands, to Accept the
Provisions of Certain Federal Acts
Pertaining to Forests and Forestry, and
for Other Purposes.
An Act to Amend 3 Virgin Islands
Code, Section 551, Schedule III,
Virgin Islands Code, Relating to
Salary Schedule for Professional Per-
sonnel in the Department of Educa-
tion.
To Amend Section 74 of Title 4, and
Section 109 of Title 16, Virgin Islands
Code, Relating to the Enforcement of
Support Provisions in Any Decrees of
Separation or Divorce.
To Provide for the Care, Custody,
Preservation and Disposition of Public
Records, and for Other Purposes.
Act to Authorize the Governor to
Effect an Exchange of Land for
Purposes of Correcting an Encroach-
ment, Preserving an Historical Site,
and Providing the Community with
Control over the Watergut Entrance
to the Bay at Christiansted.
To Provide for the Implementation
of the Report on Sewerage and Sewage
Treatment (CDM-389-1) Submitted
by Camp, Dresser, and McKee, Con-
sulting Engineers, and for Other Pur-
poses.
To Provide an Appropriation From
the Special Airport Fund for the
Development, Improvement, Opera-
tion, and Maintenance of Public Air-
ports in the Virgin Islands for the
Fiscal Year July 1, 1966 to June 30,
1967.
To Add A New Chapter 15 to
Title 23, Virgin Islands Code, Relating
to the Establishment of a Police Cadet
Corps, and for Other Purposes.
To Provide for a Comprehensive
Survey and Analysis of the Govern-
ment Personnel System, and for Other
Purposes.
To Authorize the Designation of


Deputy Marshals To Enforce the Col-
lection of Delinquent Real Property
Taxes.
To Establish the Morris F. deCastro
Chair in Government at the College of
the Virgin Islands, and for Other
Purposes.
To Amend the Provisions of Title 5,
of the Virgin Islands Code Relating to
The Employment and Eligibility for
Parole of Prisoners, and the Apprehen-
sion of Parole Violators.
To Amend Section 551 of Title 3
of the Virgin Islands Code, With
Respect to Minimum Salaries for
Professional Employees of the Depart-
ment of Education.
To Provide for a Feasibility Study
for the Development of Coral Bay
Harbor, St. John, and for Other Pur-
poses.
To Amend Certain Provisions of
Title 20, Virgin Islands Code, Relat-
ing to Motor Vehicles.
To Authorize the Governor To Ex-
ecute an Amendment to a Certain
Supplemental Agreement With Hess
Oil Virgin Islands Corp., Pursuant to
Act No. 1817, Approved September 13.
1966.
To Amend Certain Provisions of
Title 3, 4, and 33 of the Virgin Is-
lands Code, To Provide for a Reorga-
nization of the Office of the Marshal
of the Municipal Court of the Virgin
Islands, and for Other Purposes.
To Amend the Provisions of Section
282 of Title 19, the Virgin Islands
Code, Relating to Housing Accommo-
dations for Resident Physicians and
Nurses.
To Authorize the Governor to Ex-
ecute an Amendment to the Agreement
of April 1, 1964, between the Govern-
ment of the Virgin Islands and Hans
Lollik Corp., Relating to the Construc-
tion of a Hotel, Marina, Housing
Project, and Other Related Facilities
and for Other Purposes.







To Authorize the Virgin Islands
Board of Education To Make a Special
Investigation and Study of Certain
Problems in the Public Schools.
To Authorize the Virgin Islands
Board of Education To Make a Study
of Special Education and Technical
Needs Which Are Essential To Supply
the Knowledge and Skills Required by
Government and Private Enterprise,
To Recommend Special Scholarship
Programs To Fill these Needs, and for
Other Purposes.
To Provide an Appropriation for
a Sewerage Treatment Unit in the
Public Works Area at Anna's Hope, St.
Croix.
To Provide for the Licensing and
Regulation of Real Estate Brokers and
Real Estate Salesmen, and for Other
Purposes.
To Authorize the Borrowing of
Funds From the Reserves of the Em-
ployees Retirement System for the Pur-
pose of Moderate Income Housing, To
Provide for Adequate Security and for
Other Purposes.
Act To Authorize the Purchase of
Approximately 9.95 Acres of Land at
King's Hill on the Islands of St. Croix
From the United States of America for
the Purpose of Constructing Thereon
a Low-Rent Public Housing Project.
To Provide for The acceleration of
the Day-Care Center and Subsidy Pro-
gram Authorized in Section 19. Title
34, Virgin Islands Code, and for Other
Purposes.
To Establish the Pollyberg Commu-
nity Development in St. Thomas, Vir-
gin Islands, and for Other Purposes.
To Amend Act No. 1002, Approved
March 26, 1963, To Provide for the
Preparation of a Master Recording of
the "Virgin Islands March," and "Gov-
ernor's Own," and To Provide an Ap-
propriation Therefor.
To Provide Two Associate Commis-
sioners in the Department of Education
and for Other Purposes.


To Provide Relief for the Rum-
Producing Industry in the Virgin Is-
lands, To Establish for Said Purpose
the "Emergency Molasses Fund," and
Establish the Policy and Regulations
for Administration of the Said Fund,
and for Other Purposes.
To Provide for the approval of
Grants to Students Enrolled in the
Practical Nursing Training Program,
To Make an Appropriation Therefor
and for Other Purposes.
To Establish a Virgin Islands Day
in the Continental United States, and
for Other Purposes.
To Authorize the Department of
Public Works to Provide for a Study
of a Modern Street-Lighting System
for the Virgin Islands, and for Other
Purposes.
To Provide Home-Care Service for
Aged-Indigent Senior Citizens, and for
Other Purposes.
To Provide for the Improvement of
John Brewer's Bay as a Public Beach,
and for Other Purposes.
To Establish a Special Temporary
Legislative Committee To Study and
To Recommend Alterations in the Pay
Play for Employees of the Department
of Health, of Education, and of Public
Safety, and for Other Purposes.
To Provide for a Comprehensive
Program of Recreation Development
and for Other Purposes.
To Authorize the Department of
Public Safety To Employ Women as
School-Crossing Guards During Ap-
propriate Periods of School Days and
for Other Purposes.
To Authorize Study Leave for Gov-
ernment Employees.
To Authorize the Governor To Enter
into a Certain Agreement With the In-
ternational Association of Chiefs of
Police, Inc., for a Survey of the Police
Division of the Department of Public
Safety.
To Amend Section 1 of Act No. 1820
Relating to the Acquisition of the Elec-






tric Power and Water Distillation Sys-
tems of the Virgin Islands Corp.
To Amend Section 3304, Title 33 of
the Virgin Islands Code, Relating to
Collateral in Lieu of Depositing Bonds
To Secure Government Funds.
To Extend the Termination Date
for Programs Under Act No. 1575 Re-
lating to Mental Retardation.
To Authorize the Governor To En-
ter Into Certain Agreement with Re-
spect to the Acquisition or Manage-
ment of Certain Federal Properties in
the Virgin Islands, To Provide for the
Protection, Maintenance and Manage-
ment of such Properties and for Other
Purposes.
To Increase the Authorized Number
of Notaries Public.
To Extend the Termination Date
of Chapter 3, Title 33, of the Virgin
Islands Code Relating to Excise Taxes,
Gross Receipts Taxes, and Wharfage
and Docking Fees.
To Authorise the Control, Preven-
tion, and Abatement of Air Pollution
in the Virgin Islands.
To Amend Subtitle 4, Chapter 201,
Title 33 of the Virgin Islands Code,
Relating to the Incentive Program.
To Amend Section 3503, Title 5, of
the Virgin Islands Code relating
to Adequate Representation of
Defendants.
To Remove Termination Date with
Respect to the Approval of the Official
Zoning Maps for the Islands of St.
Thomas, St. John, and St. Croix.
To Authorize the Control, Preven-
tion, and Abatement of Pollution of
Surface and Underground Waters of
the Virgin Islands.
To Revise the Procedures for the


Licensing of Businesses, Professions,
Occupations, and Trades in the Virgin
Islands, and for Other Purposes.
To Direct the Boards of Elections To
Conduct a Checkup of Each Registered
Elector in Their Respective Legislative
Districts Pursuant to the Provisions of
Section 110, Chapter 5, Title 18, Vir-
gin Islands Code, In Order To Correct
the General Registers, and for Other
Purposes.
To Amend Chapter 17 of Title 3 of
the Virgin Islands Code Relating to
the Government Retirement System.
To Amend Act No. 1991, approved
June 6, 1967, Relating to Licensing of
Businesses, Professions, Occupations,
and Trades in the Virgin Islands.
To Amend Chapter 25, Title 3 of
the Virgin Islands Code, Relating to
the Personnel Merit System.
To Amend Act No. 1259, approved
October 30, 1964 as amended, Relat-
ing to the Issuance of General Obli-
gation Bonds for Certain Purposes.
To Establish the Office of Civil De-
fense Within the Office of the Gover-
nor.
To Authorize the Commissioner of
Finance To Make Refunds of Certain
Real Property Tax Payments for 1963,
and for Other Purposes.
To Amend Chapter 201, Title 33 of
the Virgin Islands Code, Relating to
the Industrial Incentive Program To
Provide Certain Benefits for Contrac-
tors Constructing Housing for Low-
Income and Moderate-Income Per-
sons and Families, and for the Elderly.
To Authorize the Governor To
Make an In-Depth Study of the Per-
sonnel Management of the Virgin
Islands.











Virgin Islands Water and

Power Authority


Personnel: 251
Since the acquisition of power and
water facilities from the Virgin Islands
Corp. on June 1, 1965, the Virgin
Islands Water and Power Authority
has undertaken an extensive program
to increase the supply of these public
utilities in the islands.
Final negotiations for the sale took
place on April 18, 1967, and the
authority is now in full possession of
all of these facilities and properties at
a total cost of $9,500,000.
During fiscal year 1967, outside
consultants completed a personnel and
organization survey for the authority.
This study includes analyses of job and
personnel evaluations, as well as of
salaries and wages, and the develop-
ment of continuing personnel review
and training programs.
Highlighting fiscal developments
during the year was the authority's
public sale of electric system bond
anticipation notes in the amount of
$4 million. An award was made to the
Chase Manhattan bank at an annual
interest rate of 2.98 percent on May
17, 1967.


Budget: $2,534,000
To effect more efficient operations,
the authority centralized its executive
office and the St. Thomas adminis-
trative and cashier offices in one build-
ing. To provide centralized customer
service on St. Croix the authority
began remodeling an existing struc-
ture that will accommodate the
administrative and cashier offices. Ap-
proximately 3.4 acres of land adjacent
to the authority's property on St.
Croix were purchased for expansion
purposes.
At the end of the year a total of
16,592 electric customers was serviced,
of which 9;216 were on St. Thomas-
St. John, and 7,376 on St. Croix.
Peak electric demand on St. Croix,
excluding station service, increased
approximately 21.5 percent. The St.
Thomas growth rate is approximately
20 percent a year, excluding station
service.
The following chart reflects billings
by the authority for fiscal years
1966-67:


1966 1967
St. Thomas St. Croix St. Thomas St. Croix

Residential. ................. 83, 218 63, 171 91,211 69,788
Commercial. ................ 12, 234 12,441 13,011 13,679
Large power ................ 984 863 1,329 1,159







An additional 13.2-kilovolt feeder
is under construction on St. Croix, to
supplement the three existing 13.2-
kilovolt primary feeders on that island.
Six 4.16-kilovolt feeders are located on
St. Thomas in the vicinity of the exist-
ing power plant, and four 13.2-kilovolt
units service downtown Charlotte
Amalie, most rural areas, and the is-
land of St. John. St. John is connected
to the authority's distribution system
by 2/2 miles of submarine cable and
approximately 10 miles of overhead
pole lines.
One hundred sixty-seven new mer-
cury streetlights were installed and
2,704 customer meters provided in the
islands during the period covered by
this report.
During the same period, 32 miles of
lines were installed on St. Croix and
26.9 miles of lines on St. Thomas.
Transformer capacity was increased in
St. Thomas by 5,548 kilovolt-amperes
and in St. Croix by 5,444 kilovolt-
amperes.
A shortwave communications sys-
tem was inaugurated connecting St.
Thomas, St. Croix, and St. John with
mobile units. This system has greatly
increased the efficiency of the authority
by providing a communications link
whereby contact is easily maintained
between the two main offices and emer-
gency mobile units. A total of six fixed
units and 19 mobile units are in opera-
tion in the islands to date.
In fiscal year 1967, the total power
production on St. Croix was 50.9 mil-
lion kilowatt-hours, or 33.24 percent
higher than in the previous year. St.
Thomas power production for the same
period was 84.8 million kilowatt-hours,
or 21.66 percent higher than in the
previous year.
The two salt water distillation plants
on St. Thomas produced a total of
311.8 million gallons of fresh water
during the year. Of this total amount


280.5 million gallons were sold to the
Department of Public Works for use
in its public distribution system. This
represents 153.4 million gallons more
than was sold in 1966.
The two salt water distillation plants
on St. Thomas are designed to produce
a total of 1,250,000 gallons of fresh
water per day. The Westinghouse
plant, completed in 1966, has not
produced at its designed capacity of
1 million gallons per day, however.
Negotiations are underway whereby
Westinghouse is to build a new evap-
orator unit to replace the existing one,
thereby guaranteeing a continued pro-
duction of 1 million gallons of fresh
water per day. This work is expected
to begin in August 1967, and com-
pleted within 1 month's time.

Electric Facilities
Kilo-
St. Thomas: watts
Unit No. 1 diesel............. 600
Unit No. 2 diesel............. 600
Unit No. 3 diesel............. 2, 500
Unit No. 4 diesel............ 600
Unit No. 5 diesel............. 750
Unit No. 6 diesel............. 1,250
Unit No. 7 steam ............ 3, 000
Unit No. 8 steam ............ 3,000
Unit No. 9 steam............ 7,000
Total kilowatts available on
St. Thomas ............. 19, 300

The Water and Power Authority
has placed a $6.3 million order for a
combination 2.5 million gallons per
day desalinization plant and a 15,000-
kilowatt net steam generating plant
to be located in Krum Bay, St.
Thomas. The contract was awarded
to the Baldwin-Lima-Hamilton Corp.
of Philadelphia, Pa., a subsidiary of
Armour & Co., of Chicago, Ill.,
and to the International General
Electric Co. The first section of the
desalination plant will be shipped in
November 1967, with full commercial
operation scheduled to begin in mid-
1968.
A 2,000-kilowatt portable electric
generating unit was purchased from






the Worthington Corp. of Harrison, This unit will be completed late in
N.J., and scheduled for delivery in calendar year 1967 at a cost of
August 1967. This $199,000 portable $2,500,000.
skid-mounted unit will be available To meet the need for adequate water
for transport from island to island supply in St. Croix, bids were let in
when emergencies occur.
The authority repaired three 600- May 1967 for a 1-million-gallon-per-
kilowatt diesel generators which had day water desalinization plant for that
been out of service for several years island. This will be built in conjunction
in order to meet fiscal year 1968 with the Worthington plant now un-
peak loads. This repair work is der construction. The successful bid-
expected to be completed between der on this unit was the Stearns-
October and December of fiscal year Roger Corp. of Denver, Colo., at a
1968, and the units are included in lump-sum bid of $1,155,990. Construc-
the above capacity tabulations for tion on this unit will begin in October
1967, and is expected to be completed
St. Croix: in March 1968.
Unit No. 1 diesel.............. 429 Because of the limited generating
Unit No. 2 diesel.............. 432 capacity on St. Croix, an agreement
Unit No. 3 diesel ............. 248
Unit No. 4 diesel............... 1,000 was entered into on May 26, 1966, be-
Unit No. 5 diesel.............. 965 tween Harvey Alumina Virgin Islands,
Unit No. 6 diesel ............. 750 Inc an
Unit No. 7 diesel.............2, 216 Inc., and the Virgin Islands Water and
Unit No. 8 diesel.............. 2, 400 Power Authority for the interchange of
Unit No. 9 diesel ............. 1,000 electric power.
Total kw available on St. For the fiscal year, total power reve-
Croix ................... 9, 242 nues stood at $4,510,092, as compared
with $3,702,691 for fiscal year 1966.
A 10,000-kilowatt electric generat- Water sales amounted to $490,835 for
ing unit is currently being installed by fiscal year 1967, as compared with
the Worthington Corp. on St. Croix. $181,076 for the previous year.











Virgin Islands Airport and


Industrial Resources Agency


Personnel: 152


The Virgin Islands Airport and In-
dustrial Resources Agency functions
within the Office of the Governor and
is responsible for the administration,
operation, and maintenance of the
Harry S. Truman Airport, Bourne
Field housing, Lindbergh Beach,
Bourne Field commercial properties,
subbase commercial and industrial
properties, piers and docks, and the
Crown Bay fill in St. Thomas, and the
Alexander Hamilton Airport and
former Vicorp properties in St. Croix.
In addition, the Agency oversees the
operations of the Antilles Air Boats at
the Charlotte Amalie bulkhead.
The most significant occurrence of
the fiscal year was the transfer of 196.3
acres of land at the submarine base on
St. Thomas together with all improve-
ments from the Federal Government
to the government of the Virgin Is-
lands. The land and improvements
were appraised by the General Services
Administration at $3,934,000. Acqui-
sition was accomplished under terms
of 10 percent down, with the balance
to be paid over a period of 10 years at
an interest rate of 3/4 percent. The
transaction took place February 28,
1967.
The former UDT (Underwater
Demolition Team) properties com-
prised of 33.32 acres were made


Operating Appropriation: $790,314.78

available to the local government on
September 1, 1966, under a 30-day
revocable permit from the Navy. The
most important structures on the prop-
erty consist of a three-story building
now housing several government or
government-related agencies, a ware-
house building which now provides
storage space for local merchants, and
three piers. It is expected that owner-
ship soon will be transferred to the
Virgin Islands government.
Bourne Field revenues are derived
from 57 low-cost housing units, 23 com-
mercial rentals, four hotels, four air-
port concessions, beach fees, 10 airlines
and air taxis, five tour services, and
other fees collected from aircraft oper-
ation at the airport.

Harry S. Truman Airport
As traffic continues to increase at a
tremendous rate at the Harry S.
Truman Airport, total number of pas-
sengers arriving during the fiscal year
came to 426,118 compared to 339,667
arrivals during the previous 12-month
period.
Establishment of a fix-base opera-
tion, which now provides refueling,
maintenance, repairs, servicing, storage
ground services, flight instruction, and
sales of aircraft parts, has stimulated






interest in aviation locally and has en-
couraged private and co-operate air-
craft to land at the airport.
Two major construction projects
were completed at the airport during
the fiscal year. The first consisted of
the removal of more than 61,000 cubic
yards of material from Sara Hill, at
the east end of the airport runway, and
more than 97,000 cubic yards of hy-
draulic fill from Crown Bay, and de-
positing the material at the western
end to permit a runway extension of
450 feet.
A new ambulance was obtained dur-
ing the year, along with new safety
equipment for the airport firemen.
Other new equipment acquired in-
cluded apparatus to correct problems
with the drinking water, an emergency
generator for the first floor of the ter-
minal building, sanitary garbage recep-
tacles, and a fogging machine to ex-
terminate insects which periodically
swarm the airport.
On November 28, 1966, ground was
broken for the new wing at the eastern
end of the terminal building to house
the Customs, Immigration, and Public
Health Offices. The building, consist-
ing of 7,200 square feet, is used for
preclearance operations.


Industrial Park-
Crown Bay Sub Base

Sub Base covers 197 acres, plus about
33.32 acres of UDT land which is in
the process of being transferred to the
government of the Virgin Islands. Of
the 197 acres, it is estimated that about
75 acres are usable for industrial pur-
poses. All 33.32 acres of UDT land are
usable, and the Crown Bay fill area will
add about 15 acres, making a total of
about 108 acres usable.
Crown Bay fill affords an expanse of
nearly flat, open land, whereas flat land


in Sub Base is scattered and occurs in
oddly shaped parcels which skirt hills
with elevations ranging from 135 to
325 feet. An attempt is being made by
the Agency to provide space for nearly
all applicants for industrial sites to
date, resulting at this early stage in the
preliminary allocation of almost all
land which is reasonably well suited
for industrial use.
The lengthened runway, coupled
with the changed contour of Sara Hill,
now permits the Boeing 727 aircraft
to operate at a full-passenger capacity
on the second-St. Thomas to St.
Croix-leg of its triangular service
from New York. The project was com-
pleted at a cost of $479,062, of which
$300,000 was provided by Pan Amer-
ican World Airways in the form of ad-
vance surcharge fees assessed against
all aircraft in excess of 53,500 pounds
gross certificated landing weight.
The second project was a major re-
construction of the runways and taxi-
ways at the Harry S. Truman Airport.
The work included paving, drainage
installations, and painting. The Fed-
eral Government provided $779,475
of the $1,159,036 total cost under the
Federal aid to airports program.


Alexander Hamilton Airport

A comprehensive program of re-
pairs at the Alexander Hamilton Air-
port was completed in April 1967, at a
cost of $1,350,000 with the Federal
Government contributing $864,575.
Several interior sections of the airport
were refurbished and a new taxistand
was completed in front of the western
end of the terminal building.
The Flamboyant Race Track was
modernized and a new racing program
inaugurated. A full-scale beautifica-
tion program is being advanced with
the help of the Department of Agri-







culture. It consists of land clearing and
decorative planting on the racetrack
and south of the terminal building area,
continuing to the beach area.
During fiscal year 1967, revenues
of $210,362 were collected, and
$14,110.13 in accounts receivable
were recorded, for a total revenue of


$22,472.13 from the Sub Base prop-
erties.
There are now 66 lessees and per-
mittees in the Sub Base area. Once the
engineering is completed, it is ex-
pected that the number of activities
operating from the Crown Bay-Sub
Base areas will double.


FINANCIAL SUMMARY
Revenues:
Fund 525-S.B. (Sub Base and related facilities) ....................... $246, 871. 85
Fund 529-B.F. (Bourne Field and related facilities) .................... 423, 442. 93
Legislative appropriation (Act No. 1859). ............................ 20, 000. 00
Legislative appropriation (Act No. 1859). ............................ 100, 000. 00
Total revenues. ................................................ 790, 314. 78
Expenditures:
Fund 525-S.B. (revolving fund) ..................................... 311,428.94
Fund 529-B.F. (revolving fund) ..................................... 412, 703.26
Total expenditures.............................................. 724, 132.20
O outstanding obligations .......................................... 39, 126. 05

Total ........................................... ........... 763, 258. 25
Revenues ........................................................... 790, 314. 78
Expenditures ....................................................... 763,258.25
Surplus.............................................. .......... 27,056.53
Alexander Hamilton Airport revenues................................ 150, 008. 00
Alexander Hamilton expenditures (airport) .............................. 331, 312. 00











Public Utilities Commission


Personnel: 3 Operating Appropriation: $47,000


The Virgin Islands Public Utilities
Commission in fiscal year 1967 con-
tinued in its efforts to maintain
thorough examinations of all utilities
subject to its regulations. The terms of
two member commissioners expired
during the year. One was reappointed,
and a new member named to the com-
mission.
The commission's membership with-
in the National Association of Railroad
and Utilities Commissioners became
more closely knitted through a re-
gional affiliation with the Great Lakes
Conference of Public Utilities Com-
missioners.


Shipping
The West Indian Co. reported a
stable year with a minor drop in gross
tonnage. A $14,000 decrease was noted
by the company in the cargo handling
base rate figure, and the commission
was petitioned for a 25-percent reduc-
tion in cargo-handling rates for certain
cargoes in hopes that this would result
in an increase of tonnage. It is ex-
pected that the West Indian Co. will
request a general rate increase in the
coming fiscal year.
A similar situation existed with
regards to the deepwater port of
Frederiksted, St. Croix. There, Cargo
Services Inc., reported a 15-20-percent
tonnage reduction over the previous
fiscal year. This was occasioned pri-


marily by Hess Oil cargo being handled
at the Krause Lagoon facility, which is
not within the jurisdiction of the com-
mission. This reported reduction can
also be attributed to the expanded
activities of minor cargo handlers.


Telephone Service

The Virgin Islands Telephone Corp.
(Vitelco), has grown from a limited
manual system serving 3,000 sub-
scribers in 1959 to modernized elec-
tronic operation that provides service
to 12,000 customers.
Telephone surveys indicate that the
coming fiscal year will experience a 20-
percent increase in service requests.
The commission has concluded that
sufficient time has been granted Vitelco
to formulate and implement long-range
plans that it keep up with the growing
demands placed upon the islands' tele-
phone system. The commission during
the year retained the services of legal
and engineering consultants to explore
measures whereby Vitelco may provide
its subscribers with adequate service.


Virgin Isle Communications

The interconnection agreement of
1966 between Virgin Isle Communi-
cations (Vicom) and Virgin Islands
Telephone Corp. (Vitelco), continued
in effect in fiscal year 1967. The ques-






tion of a local forum had not been
settled at the end of the year, however.
The matter will again come under con-
sideration when Vicom files for a con-
templated increase in rates in the com-
ing year. Should the company apply
to the Federal Communications Com-
mission, the commission may possibly
consider itself a local forum in which
case the FCC may be required to relin-
quish regulatory jurisdiction over
Vicom.


282-348 0-68- 3


Passenger Bus Service
The Commission continued its close
surveillance of passenger bus service
utilities which resulted in certain irreg-
ularities in routing being corrected.
Authorized bus stops are now identified
and strict adherence to franchises is
being effected on all islands. During
fiscal year 1968, all passenger bus utili-
ties will be subject to thorough audits,
and governing rules and regulations
affecting these services will be updated.









































29











Bond Issue and Interim

Financing


The confidence expressed by bank-
ing institutions and the general public
in the fiscal integrity of the govern-
ment of the Virgin Islands since its
initial entry into the national money
market reflects a national recognition
of the present economic growth and
development potential of the territory.
Since November 1963, when Public
Law 180 was passed, giving the Virgin
Islands government authority to fi-
nance such essential public improve-
ments as schools, hospitals, water
systems, sewers, and sewage plants by
the issuance of general obligation
bonds, the legislature of the Virgin
Islands has authorized general obliga-
tion bond issues totaling $13,267,000.
Under similar congressional authority,
a total of $25 million in revenue bond
issues has been authorized by the
legislature for water and power
purposes.
By the end of June, 1967 the gov-
ernment had successfully sold $5,-
200,000 in general obligation bonds
and $6,400,000 in interim general ob-
ligation and electric revenue bond
anticipation notes on the New York
market; and interim general obligation
bond anticipation notes totaling
$4,515,000 were held by local banks.
On December 29, 1966 the govern-
ment renewed the $1,260,000 bond
anticipation notes for water systems
and the $1,200,000 bond anticipation


notes for hospital and school purposes
which would have matured on
December 31, 1966. The new interim
notes were bought in equal portions by
the Chase Manhattan Bank and the
Virgin Islands National Bank at a rate
of 4/2 percent. These notes will mature
on December 31, 1967.
The government issued $300,000 in
4 percent bond anticipation notes to
the Chase Manhattan Bank and the
Virgin Islands National Bank in equal
shares for hospital purposes on Febru-
ary 9, 1967. These notes mature on
December 31, 1967.
For water systems $900,000 in 4/2
percent bond anticipation notes were
issued on September 19, 1966, with a
maturity date of September 19, 1967;
and $855,000 in 4 percent notes were
issued on April 4, 1967, to mature on
December 31, 1967. As in the previous
issues, these note sales were shared
equally by the Chase Manhattan Bank
and the Virgin Islands National Bank.
The largest note sale of the year took
place in New York City on May 17,
1967 when $6,400,000 in interim bond
anticipation notes were sold to the
Chase Manhattan Bank. This sale, to
provide financing for the Virgin
Islands Water and Power Authority,
was handled by the firm of Wain-
wright & Ramsey, Inc., financial con-
sultants to the government, and the







legal services were performed by the
firm of Hawkins, Delafield & Wood,
bond counsel to the government.
The sale included $2,400,000 in wa-
ter system general obligation bond
anticipation notes and $4 million in
electric revenue bond anticipation
notes. The sale of the electric revenue
notes, the first sale of revenue notes,
was authorized by resolution No. 33,
adopted by the Governing Board of
the Virgin Islands Water and Power
Authority on April 14, 1967.
On May 8, 1967, notices of sale of
the water system and revenue notes
were issued. The opening of bids took
place in the office of Wainwright &
Ramsey on May 17, 1967 at 11 a.m.
Two bids were received for the pur-
chase of the $4 million electric revenue
notes, and seven bids were received for


the $2,400,000 water system general
obligation notes.
The governing board of the Virgin
Islands Water and Power Authority
was advised of the bids by the bond
counsel by telephone at 11:20 a.m.
Upon the recommenadtion of the
financial consultants the board ac-
cepted the bid of 2.98 percent with a
premium of $40 by the Chase Man-
hattan Bank for the electric revenue
bond anticipation notes, and the Gov-
ernor, on behalf of the government of
the Virgin Islands, accepted the bid of
2.55 percent with a premium of $24
by the same bank for the water system
general obligation bond anticipation
notes.
The second bid for the electric reve-
nue notes was 3.75 percent by John
Nuveen & Co., Inc.; other bids for the
water system notes were as follows:


Bidder Rate Premium
(percent)


John Nuveen & Co., Inc.................................
W hite, W eld & Co......................................
Bank of A m erica........................................
Chemical Bank New York Trust Co. ......................
Morgan Guaranty-Salomon Bros. & Hutzler................
First N national City Bank .................................


The financial consultants were
pleased with prices obtained on these
sales and expressed their belief that
they will be helpful in obtaining a good
interest rate when the revenue bond
issue is brought to market.


The notes are due on December 31,
1967.
It is anticipated that all notes will
be recalled in favor of a bond sale by
the end of the calendar year 1967.


2.74
2.80
2.87
3.35
3.50
4.00


$27
241
80
11












Control of Processing


of Woolen Yard Goods


Control was implemented and con-
tinued over the processing of woven
woolen yard goods by the imposition of
quotas to control the flow of such for-
eign 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


Classification


Knitted worsted and/or woolen cloth.........
Thermal laminated woolen cloth............
Showerproof woolen cloth ..................


established quotas and a 65-cent-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 con-
trol in 1963, with a record of shipments
within the quota:


Period


3/25/63 to
12/31/63.
3/25/63 to
12/31/63.
3/25/63 to
12/31/63.


Knitted worsted and/or woolen cloth......... 1964. .......
Thermal laminated woolen cloth............ 1964........
Showerproof woolen cloth .................. 1964. .......
Woven woolen yard goods ................. 1965 ........
Knitted worsted and/or woolen cloth including 1965........
cloth knitted from a blend of wool and other
fibers.
Knitted worsted and/or woolen cloth......... 1966. .......
Thermal laminated adhesive bonded woolen 1966........
cloth (taken from unused reserve for preced-
ing year).
Shower proof woolen cloth ................. 1966. .......
Woven and/or dyed and finished cloth....... 1966........

1 Includes portion of 1,008,458 yards carried over from 1965.


Quota
allowed
(linear
yards)


1,000, 000
375, 000
5, 000, 000
1, 300, 000
500, 000
1,000,000
1,650,000
1, 150, 000

1,035,000
100, 000

1,845, 000
120, 000


Actual
shipments
(linear
yards)

112, 559
88, 282
3, 778, 376
220, 760
74, 476
494,474
966, 992
421,430

537, 937
55,996

i 1,900,027
None


For the calendar year 1967, these
quotas (less 10% required reserve)
were assigned:
Linear yards
Showerproof woolen cloth ..... 1, 845, 000
Knitted worsted and/or woolen
cloth ...................... 935, 000


Woven and/or dyed and finished
cloth ................... ..
Thermal laminated adhesive
bonded woolen cloth ........


Linear yards

120, 000

100, 000


Total.................. 3, 000, 000







The unused portions of quotas each company received by category
allotted for calendar year 1966 were follows:
carried over into 1967. Total yardage

Shower proof woolen cloth:
Total quota allowed this year....................................... 1,845, 000
Less 10 percent allowed this year. ... ................................ 184, 500

Net this year.................................... ......... ....... 1,660,500
1966 carryover ................................ ................ ... 596, 123

Total ................... ................................. 2, 256, 623

Company apportionment:
Vitex M manufacturing Co., Ltd ........................................ 1,084, 915
1966 carryover .................................................... 596, 123

Net this year.................................................... 1,681,038
Kent Co., Inc...................................................... 575, 585

Total (including carryover) ................ .................. 2, 256, 623

Knitted worsted and/or woolen cloth:
Total quota allowed this year ......................................... 935, 000
Less 10 percent reserve .............................................. 93, 500

Net this year.................................................... 841,500
1966 carryover .................................................... 200, 000

Total (including carryover).................. ..................... 1, 041, 500

Company apportionment:
Buccaneer Mills, Inc ............................................... 841,500
1966 carryover .................................................... 200, 000

Total (including carryover). ................. ..................... 1, 041, 500

Woven and/or dyed and finished woolen cloth:
Total quota allowed this year ...................................... 120, 000
Less 10 percent reserve .............................................. 12, 000

Net this year.................................................... 108, 000
1966 carryover ..................................................... 120, 000

Total (including carryover). ......................................... 228, 000

Company apportionment:
Am ity International, Inc ............................................. 108, 000
1966 carryover ..................................................... 120, 000

Total (including carryover). ..................................... 228, 000

Thermal laminated and adhesive bonded woolen yard goods:
Total quota allowed this year ...................................... 100, 000
Less 10 percent reserve .............................................. 10, 000

Net this year.......................................... .......... 90, 000

Company apportionment:
Unassigned ......................................... ....... ....... 90, 000







The Law

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 chap-
ter 9 entitled "Production Taxes" to
part 1, subtitle 1, title 33, Virgin
Islands Code. It was amended by act
No. 1080 (bill No. 2054) approved
February 20, 1964. Section 504, sub-
sections (a), (b), (d), and (e) as
amended are as follows:

(a) The Governor shall determine, after
due investigation, the maximum amount of
woolen yard goods production in the Virgin
Islands which is consistent with the pro-
tection of the economic stability and com-
mercial relations of the Virgin Islands. Due
notice shall be given and interested parties
shall be afforded an opportunity to present
comments and information at a public
hearing. In making any determination or
determinations under this section, the Gov-
ernor shall take into account, among other
relevant factors, the benefit or detrement
resulting from the applicability of the pro-
visions of Section 301 of the Tariff Act of
1930, as amended, to Virgin Islands prod-
ucts, including problems of the type which
led to expressions of concern on the floor of
the 87th Conggress over possible abuse and
excessive use of said provisions.
(b) Upon the proclamation by the Gov-
ernor of any determination or determina-
tions made pursuant to subsection (a) of
this section, the rate of tax imposed by this
chapter shall be 1 cent per yard upon the
amount of woolen yard goods production set
forth in such determination or determina-
tions to be consistent with the economic sta-
bility and commercial relations of the Virgin
Islands; and the rate of tax in the excess of
such amount shall be 65 cents per yard.
(d) In carrying out the provisions of this
chapter, the Governor shall have authority
to make such classifications of woolen yard
goods as he may determine appropriate for
purposes of this chapter, and may prescribe
different maximum amounts for different
classifications.
(e) The Governor shall have author-
ity to determine the periods to be covered
in granting applications, and may determine
what applications shall be granted in whole
or in part for a calendar year or for a period
smaller than a calendar year. He may pre-


scribe for renewal of applications in whole
or in part.

The Hearing Board

The ad hoc hearing board, set up
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, was
reconvened and reorganized by Gov-
ernor Paiewonsky due to the death of
Morris F. deCastro, its chairman. The
new members are: Dr. A. J. Prender-
gast, Chairman, Myer Feldman, Oscar
Gass, and Reuben Wheatley.
On June 3, 1966, the board issued
a notice of public hearing to be held
at Government House in Charlotte
Amalie, St. Thomas, Virgin Islands
on June 11, 1966.
The hearing was duly held on that
date, at which representatives of Buc-
caneer Mills, Inc., Kent Co., Inc.,
Virgin Islands Textile Processing
Corp., and Vitex Manufacturing Co.,
Ltd., all of the Virgin Islands, ap-
peared and testified.
The report of the hearing board
dated Novembr 9, 1966 is quoted in
full:
THE HONORABLE RALPH M. PAIEWONSKY
Governor of the Virgin Islands
Charlotte Amalie
St. Thomas, Virgin Islands
DEAR GOVERNOR PAIEWONSKY: On Sat-
urday, June 11, 1966, the ad hoc hearing
board on production taxes imposed on
woolen yard goods by chapter 9, title 33,
of the Virgin Islands Code, met to hear testi-
mony on applications concerning the dis-
tribution of woolen quotas for 1967.
The members of the hearing board con-
sisted of myself, as chairman, Myer Feld-
man, Oscar Gass, and Reuben Wheatley.
Four companies were heard from, and the
board met in executive session directly after
the public hearing.
After some discussion, certain recom-
mendations were unanimously agreed upon.
However, subsequent to the meeting and
prior to the submission of these recom-
mendations to you, Amity Fabrics, Inc., sub-
mitted letters and a legal brief (exhibit 5)
stating what the ad hoc committee believed







to be good and sufficient reasons for their
inclusion in the quota distribution. There-
fore, the board was reconvened and took into
consideration this new request.
We are therefore recommending to you
the following:

A. GENERAL RECOMMENDATIONS
1. That the overall quota for the Virgin
Islands woolen yard-goods industry for the
calendar year 1967 should be fixed at a total
figure of 3 million linear yards.
2. That the unused portion of quotas al-
lotted to companies for calendar year 1966
be carried over into 1967.

B. SPECIFIC RECOMMENDATIONS BY
CATEGORY
1. Showerproof woolen cloth: The board
recommends that a quantity of 1,845,000
linear yards be made subject to the tax of
1 cent per yard for the period January 1,
1967-December 31, 1967.


2. Knitted worsted and/or woolen cloth,
including cloth knitted from a blend of wool
and other fibers: The board recommends
that a quantity of 935,000 linear yards be
made subject to the tax of 1 cent per yard
for the period January 1, 1967-Decem-
ber 31, 1967.
3. Thermal laminated and adhesive
bonded woolen yard goods: The board rec-
ommends that a quantity of 100,000 linear
yards be made subject to the tax of 1 cent
per yard for the period January 1, 1967-
December 31, 1967.
4. Woven and/or dyed and finished
woolen cloth: The board recommends that
a quantity of 120,000 linear yards be made
subject to the tax of 1 cent per yard for the
period January 1, 1967-December 31, 1967.
You will note that the above represents
no departure from the previous year allot-
ment of quotas and it is the intention of the
board that this be so.
Sincerely yours,
A. J. PRENDERGAST,
Chairman.











Control of Manufacture


of Watches


On November 10, 1966, Congress
passed Public Law 89-805 which es-
tablished a limitation on the number
of watches and watch movements con-
taining foreign components which may
be imported duty-free from the United
States and insular territories.
Responsibility for issuing shipping
permits to watch companies in the Vir-
gin Islands against licenses issued by
the Federal Government is delegated
to the Governor of the Virgin Islands
who in turn delegates this function to
the Commissioner of Commerce. It is
presently administered by the Division
of Trade and Industry. Responsibility
for setting manufacturing quotas for
Virgin Islands watch firms rests with
the Secretary of the Interior and the
U.S. Department of Commerce.
The first watch assembly plants were
established in the Virgin Islands in
1959. The assembling of watches with
parts of foreign origin for duty-free
shipment to the United States rose from
5,000 units in 1959 to a volume in ex-
cess of 4,500,000 units. Apparently
concerned over this tremendous in-
crease in watch production, a number
of Congressmen introduced H.R. 8436
in the House of Representatives in May
1965, to exclude from duty-free treat-
ment all imports of watches and watch
movements produced in the territories.
The government of the Virgin Is-
lands also recognized the need for the


watch assembly industry here to re-
main within the confines of a legitimate
operation in the interests of economic
development. It was desirous of pre-
venting the operations from becoming
primarily a means of employing the
duty-exemption privilege as a tariff-
avoidance vehicle to the detriment of
the U.S. watch industry. In order to
satisfy this concern and at the same
time save this important Virgin Islands
industry, the Virgin Islands govern-
ment enacted legislation designed to
limit local watch assembly for export
to the United States. Quotas were allo-
cated to the firms on the basis of a for-
mula which gave two-thirds of the
weight to that portion of the payroll
subject to social security taxation and
one-third to prior production over a 6-
month base period. Consequently, H.R.
8436 was thereafter amended to only
exclude from duty-free treatment, im-
ports of watches from insular territories
other than the Virgin Islands. How-
ever, before any legislation on this sub-
ject was finally enacted, the Virgin
Islands statute and a subsequent local
statute were both declared invalid by
the Federal District Court for the
Virgin Islands.
The Senate of the United States then
took action to pass Public Law 89-805,
which was an amended version of H.R.
8436, and this law imposed an overall
quota for duty-free entry of watches







and watch movements assembled in
the three insular territories equal for
each calendar year to one-ninth of to-
tal watch consumption in the United
States during the previous calendar
year. The Tariff Commission was as-
signed the responsibility of determin-
ing on or before April 1 of each year
the consumption of watches in the
United States during the preceding
calendar year.
Moreover, the statute expressly al-
locates 87.5 percent of the total quota
to producers in the Virgin Islands, 8.33
percent to producers in Guam, and
4.17 percent to producers in American
Samoa. The Secretaries of the Interior
and the Department of Commerce, as-
signed responsibility for setting quotas,
have devised formulas for allocation
based upon the amount of local labor
involved and upon other factors.
The first interim quota was estab-
lished for the period January 1, 1967,
to February 28, 1967, for the 16 watch


firms located in the Virgin Islands.
These interim allocations represented
approximately 50 percent of the esti-
mated total allocations for calendar
year 1967, without adjustments, to re-
flect the number of watches and watch
movements shipped into the Customs
territory of the United States between
January 1, 1967, and February 28,
1967.
A Federal Commerce-Interior audit
team visited the Virgin Islands on
April 21 to audit the books of the watch
companies in St. Croix and St.
Thomas. The Assistant Commissioner
of Trade and Industry held a briefing
session with the team in Christiansted
on April 24. Subsequently, in June
1967, final quotas were allocated to
the watch industry for the 6-month pe-
riod ending December 31, 1967.
The total watch quota for the Virgin
Islands during 1967 was 3,773,886
units.











Office of Public Relations


and Information


Personnel: 10


The Office of Public Relations and
Information is responsible for pub-
licizing the Virgin Islands on the U.S.
mainland and in other countries, and
for public relations activities in
connection with the Office of the
Governor.
Its responsibilities include the prep-
aration of news, feature articles, and
photographs for release on the main-
land by the islands' public relations
agency there, and the dissemination of
news, pictures, and information about
the Executive Branch of the Virgin
Islands government to local and main-
land-based media.
Additionally, the Office provides
assistance and information to visiting
editors, writers, and photographers as
well as to important visiting dignitaries
from the United States and other
countries. Assistance is also given to
the Governor's office in the preparation
of reports, speeches, and required
information.
The mainland office, in addition to
serving the needs of the islands' public
relations efforts, also serves the many
Capitol Hill and Washington depart-
mental needs of the Virgin Islands
government.
During the fiscal year, the Public
Relations and Information Office
played an integral part in the planning


Operating Appropriation: $163,540

and execution of activities of the Vir-
gin Islands semicentennial celebration.
The Director served as the Executive
Director for the Semicentennial Com-
mission. Publicity covering the 10-day
festival was widespread. Guests in-
cluded Secretary of the Interior Stew-
art Udall, Ambassador to the United
States from Denmark, Torben Ronne,
and many other civilian and military
dignitaries.
In connection with the 50th anni-
versary year, the public relations office
cooperated with the public relations
consultants on the mainland in pro-
ducing and publishing an official
anniversary magazine, "Your Virgin
Islands." It has been widely and
favorably received.
The office also has been directly
involved in planning for the National
Governors' Conference to be held in
the Virgin Islands early in the new
fiscal year. More than 160 national
news media representatives and pho-
tographers, including all of the
Nation's major networks and wire
services, will cover the conference
aboard the S.S. Independence and in
the Virgin Islands. It is expected that
millions of dollars worth of publicity
will be received from this one event
alone.
Over 400 news releases and 350 news






photographs were distributed to the
islands' news media and to individuals
and agencies on the off-islands mailing
list during the year. In addition, articles
about the islands appeared in such ma-
jor magazines as Holiday, Bride's
Magazine. Time, Newsweek, Made-
moiselle. Better Homes and Gardens,
Glamour, Sports Afield, and Popular
Photography. King Features syndi-
cated four full picture pages about the
islands to over 1,600 daily newspapers,
and thousands of articles appeared in
major market newspapers throughout
the country.
The Islands were featured on two
different occasions on the nationwide
"Today Show" produced by NBC, and
the other major networks also carried
spot features about island personalities.
The Office assisted the producers of
"The Wonderful World of Golf" tele-
vision series in filming a show at Foun-
tain Valley Golf Course for viewing
early in the new fiscal year, and the
Director and members of the staff
worked closely throughout a 2-month
period with a writer and photographer
from the National Geographic Maga-


zinc on an article to appear in January
of next year.
Throughout the year, the islands
were honored with visits from many
newsworthy persons. Mrs. Lyndon
Johnson and Vice President Hubert H.
Humphrey headed the list of famous
people who came to vacation. Forty-
six prominent travel writers and editors
arrived aboard cruise ships, and their
visit resulted in more than 20 major
articles about the Virgin Islands. In
addition, 72 working press visitors
came throughout the 12-month period
and were escorted and assisted by the
Office staff.
Once again this year, the combined
efforts of the on-islands and mainland
offices resulted in well over $2 million
in newspage/magazine page coverage,
based upon per column inch median
costs if purchasable as paid advertising
space. Readership-viewership circula-
tion is estimated at more than 200 mil-
lion persons. The volume and impact
of all of this free promotional material
is reflected in the ever-increasing num-
ber of tourists who visit the islands each
year.











Office of The Government


Secretary


Personnel: 64


The activities of the Office of the
Government Secretary during the fiscal
year continued to reflect the impact of
economic progress and development in
the Virgin Islands.


Corporations
As of June 30, 1967, a total of 1,282
corporations was registered in the Vir-
gin Islands. Of this number, 227 are


Operating Appropriation: $381,150

new and were authorized to do busi-
ness during fiscal year 1967. Of these
new corporations, 189 are domestic, 22
foreign, and 16 nonprofit.
A total of 168 domestic corporations
was dissolved for various reasons, the
most prominent of which was nonpay-
ment of franchise taxes.
A statistical view of corporate activ-
ity for preceding fiscal years is reflected
in the following tables:


COMPARATIVE CHART-NUMBER OF CORPORATIONS


1963 1964 1965
For- Do- For- Do- For- Do-
eign mestic eign mestic eign mestic

Certificates of incorporation issued. 24 173 19 173 33 173
Certificates of amendment issued.. 2 26 4 43 4 27
Dissolutions .................... 4 85 ...... 49 ...... 143
W ithdrawals..................... 5 ...... 4 ...... 7 ...
M ergers ....................... .... .. 1 ...... 1 ...... 3
Surrender of corporate rights ............ 6 ...... 4 1 10

1966 1967
Foreign Domestic Foreign Domestic

Certificates of incorporation issued. 26 194 22 189
Certificates of amendment issued. 4 26 2 28
D issolutions ................... .......... 10 .......... 168
W withdraw als .................... 5 .......... ........
M ergers ................................. 1 ...... .....
Surrender of corporate rights ..... 1 ...... .........







COMPARATIVE TABLE-FRANCHISE TAXES AND CORPORATE FEES

1963 1964 1965 1966 1967

Filing fees.................... .. $13, 179 $15, 196 $14, 561 $18, 295 $14, 854. 5
Franchise taxes, including penalties. 38, 098 35, 770 36, 288 36, 500 56, 370. 950


Licensing of Businesses and
Occupations

At the end of fiscal year 1967, 4,308
licenses had been issued, as compared
with 3,852 for the previous year. Fees
collected totaled $161,779.50. While


a higher figure of $186,429.00 was col-
lected during the previous year, that
total included fees for which licenses
were not issued until fiscal year 1967.
The following charts show a com-
parison of licenses issued and fees
collected over the past 5 years:


LICENSES ISSUED AND FEES COLLECTED


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

St. Thomas and St. John....... 1,716 $101,592 2,010 $117,421 2,115 $130,781
St. Croix. .................... 1,034 39, 176 1,486 32,811 1,620 42,084
Total.................. 2,750 140,768 3,496 150,232 3,735 172,865

1966 1967
Licenses Fees Licenses Fees

St. Thomas and St. John....... 2, 221 $141,084 2, 569 $120, 642. 50
St. Croix ................... 1,631 1 45, 345 1, 739 41, 137.00
Total .................. 3, 852 186, 429 24,308 161, 779.50

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


Registration of Trade Names

In compliance with act No. 923,
approved January 23, 1963, providing
for government control of the use of
trade names of businesses in the Virgin
Islands by means of registration, 270
new registration of trade names were
recorded during fiscal year 1967,
bringing the total number filed with


the office of government secretary
since the enactment of this act to
1,129. Fees collected for this activity
during the fiscal year covered by this
report amounted to $1,500.00 as com-
pared with $1,025.00 during the
previous year.
The following table shows the
amount of activity in this area over
the past 5 fiscal years:







REGISTRATIONS AND FEES COLLECTED


1963 1964 1965 1966 1967

Registrations ................. 172 339 224 205 276
Fees collected ................ $860 $1,695 $1, 120 $1,025 I $1,500

1 Includes fees received for 24 registrations which are pending.


Trademarks and Patents
This office continued to process
trademarks and patents in accordance
with the Governor's rules and regula-


tions promulgated on June 11, 1959.
Following are comparative tables
showing activity in this area over the
past 5 fiscal years:


1963 1964 1965 1966


Design patents......................
Original registrations .............. .
Renewals .........................
Assignments........................
Changes in name....................
Mergers...........................
T otal. .............. ....... ..

Fees collected. ................... ...


1
24
4
6
2
2

39

$1,005


1
19
13
4

37

$907


35
13
18
2
2

70

$3, 621


27
11
1
2
2

43

$832


1967


29
28
13
16
1

87

1 $1,777. 50


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


Insurance

At the end of the fiscal year there
were 93 insurance companies author-
ized to conduct business in the Virgin
Islands as compared with 84 the
previous year. Nine new companies
were registered during the fiscal year
as compared with six the previous
year.
In addition, one company withdrew,
and one company, pursuant to con-
sent of dissolution, was dissolved in
accordance with section 283(d), title
13 of the Virgin Islands Code.


Gross premiums written during the
year totaled $4,424,755.05, an increase
of $786,797.85 over the previous year.
Gross premium taxes for this period
totaled $40,612.24, an increase of
$7,682.70.
During the year, 178 insurance
licenses were issued, 80 of which were
for insurance agents, 37 for insurance
solicitors, 56 for apprentices, four to
brokers, and one issued to a nonresi-
dent insurance broker.
Following is a comparative table
of fees collected from insurance ac-
tivities over the past 5 fiscal years:







COMPARATIVE ANALYSIS OF FEES COLLECTED FOR INSURANCE
ACTIVITIES

1963 1964 1965 1966 1967

Certificates of authority ................ $3, 188 $2, 748 $3, 412 $3, 375 $3, 750. 00
Agents licenses. ..................... .. 3, 068 2, 870 3, 047 4, 994 4, 805. 00
Brokers licenses ....................... ...... ...... 100 200 400. 00
Solicitors licenses. ................... .. 828 1,460 1, 118 1,050 1, 779. 24
Gross premium taxes .................. 15,015 18,769 24,892 32,929 40,612.00
Filing annual statements ............... 167 172 190 212 225.00
Filing power of attorney ................ 90 115 70 90 55. 00
Sale of insurance laws ................ .. 44 18 28 53 34. 00

Total.......................... 22,400 26, 152 32,857 42,903 51,661.20


Board of Control of Alcoholic proof-gallons. These exported bever-
Beverages ages included rum, whiskey, cordials,
and liqueurs.
The Board of Control of Alcoholic The manufacture of perfumes, bay
Beverages prescribes, administers and rum, and toilet water using denatured
enforces regulations pertaining to the alcohol showed a 40-percent increase,
manufacture and sale of alcoholic from more than 24,000 to over 35,000
beverages, denatured spirits, and ar- wine-gallons.
tides containing denatured spirits. Rigid inspection of alcoholic bev-
Rum production in the Virgin erages imported into the Virgin Islands
Islands increased during fiscal year continued to insure compliance with
1967 by more than 400,000 proof- Virgin Islands government labeling
gallons over the previous year, while regulations.
the total amount of alcoholic beverages The following statistical information
exported to the U.S. mainland in- reflects the continuing increased
creased by over a quarter of a million activity in this area:

RUM PRODUCED IN THE VIRGIN ISLANDS
(In proof-gallons for calendar year)


1962 1963 1964


1965 1966


Brugal & Co............... ...... ..... ........ ........... 39, 600
West Indies Distillers, Ltd .... 200, 000 157, 470 327, 072 180, 102 416, 361
Virgin Islands Rum Industries,
Ltd...................... 1,084, 334 832, 204 878,917 980,065 1, 155,637

Total proof-gallons .... 1,284,334 989,674 1,205,989 1,160, 167 1,611,598

I Proof-gallon-the alcoholic equivalent of a U.S. gallon at 600 F. containing 50 percent
of ethyl alcohol by volume.

ALCOHOLIC BEVERAGES EXPORTED TO THE UNITED STATES
(In proof-gallons for calendar year)


1962 1963 1964


Rum......................... 825,387
W hiskey ..................... 4, 343
Cordials, liqueurs, etc.......... 4, 381

Total proof-gallons. ...... 834, 111


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


1965 1966


1,230,257 1,099,928 1,359,817
2,160 ..... ...
17,796 3,204 500

1,250,213 1,103, 132 1,364,817







DENATURED ALCOHOL PRODUCED
(Wine-gallons) 1

1962 1963 1964 1965 1966

V.I. Rum Industries, Ltd ................ 2, 863 4, 370 3, 018 5, 895 4, 900

I Wine-gallon-A U.S. gallon of liquid measure equivalent to the volume of 231 cubic
inches. Gauging Manual, U.S. Treasury Department.


DENATURED ALCOHOL USED IN THE MANUFACTURE OF
RUM, AND TOILET WATER
(Wine-gallons)


PERFUME, BAY


1962 1963 1964 1965 1966

West Indies Bay Co. .................... 8,759 10,398 13,894 17,920 23, 870
Virgin Islands Bay Rum Manufacturing Co. 2, 861 4, 368 3, 019 5, 720 4, 900
Virgin Islands Perfume Corp ................... ...... 147 369 223
Huntley, Ltd ........................... ...... 572 803 275 6, 160
Total, wine-gallons ................. 11,620 15,338 17,863 24,284 35, 153


Motor vessel inspections of imported
alcoholic beverages conducted in order
to determine compliance with Virgin

Year of inspection:
1963 ....................... 21 Ves
1964. ...................... 30 Ves
1965. ...................... 29 Ves
1966 ....................... 39 Ves


Office of the Tax Assessor
The Office of the Tax Assessor dur-
ing fiscal year 1967 completed the first
reassessment of all real property in the
Virgin Islands under the 3-year cycle
reassessment program. After a legisla-
tively imposed moratorium on increas-
ing real property taxes ended in 1965,
the implementation of the 1960-61
reassessment program which provided
for a continuous 3-year reassessment-
one-third of all real property in the
Virgin Islands each year-became ef-
fective and real property tax bills began
reflecting the new assessments.
A significant activity within the di-
vision of real property assessment and
taxation during the year was a seminar


Islands labeling regulations were as
follows:



sels inspected containing 4,972 cases.
sels inspected containing 4,653 cases.
sels inspected containing 3,939 cases.
sels inspected containing 6,434 cases.


on real property assessment sponsored
by the Office of the Government
Secretary.
Attended by the entire staffs of the
offices of the tax assessor on St.
Thomas, St. Croix, and St. John, the
seminar was developed with a view to-
wards the continuous upgrading and
improving of techniques used in deter-
mining true and accurate values in as-
sessing and reassessing of real property.
The complete and accurate updating
of the mapping system on St. Thomas
and St. Croix was also accomplished
during the year. Through the employ-
ment of an assistant appraiser for the
island of St. John, several hundred par-
cels of land on that island were prop-






early identified and plotted on the tax
maps and proper boundary lines iden-
tified. Also, previously unidentifiable
properties were located and plotted on
the maps.
Real property tax bills for the calen-
dar year 1966 amounted to $2,077,-


095.81, as compared to $1,830,418.52
in 1965, and $962,997.60 in 1964.
The following charts reflect the con-
tinuing progress being made toward
the realization of a workable, stand-
ardized, and equitable system of real
property assessment and taxation:


282-348 0-68---4





















TOTAL ASSESSMENT AND TAXES ST. THOMAS, ST. CROIX, AND ST. JOHN, 1961-66


Bills
issued


Assessments


Taxes Number of Amount of Amount of
exemptions exemptions modification


Taxes


1961....................... 11,303 $58, 741,770 $734, 272. 13 1,576 $47,800.00 $105, 173.64 $581,298.49
1962 ....................... 11,855 63,346,331 791,829. 14 2,099 58,974. 72 70, 123.68 662, 730. 74
1963.................... . 12, 679 72, 017, 612 900, 220. 15 2,338 67,085.49 35, 686. 10 797,448.56
1964 ....................... 13, 722 83, 394, 239 1,042,427. 99 2,687 79, 430. 39 ............ 962,997.60
1965 ....................... 15, 120 158, 880, 727 1,986,009.09 3,062 155, 590. 57 ............ 1,830,418.52
1966 ....................... 16, 783 192, 820, 503 2,410, 256. 29 4, 719 333, 160. 48 ............ 2,077,095. 81







DETAILED CHART OF ASSESSMENTS AND TAXES INCLUDING HOMESTEAD
EXEMPTION


Island and year


Number
of bills
issued


Assessments


Taxes


St. Thomas:
196 1 . . . . . . . . . . . . . . .
1962.............................
1963.............................
1964.............................
1965 ...........................
1966 ............................
St. Croix:
196 1 . . . . . . . . . . . . .
1962.............................
1963.............................
1964.............................
1965........ .....................
1966.............................
St. John:
19 6 1 . . . . . . .. . . . . . . . .
1962.............................
1963.............................
1964.............................
1965.............................
1966.............................


5,500
5,744
6,210
6,760
7,157
8,140

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

703
714
738
771
843
1,031


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

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

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


$351,234. 34
376,854.28
431,500.29
502,038.73
944,122.11
1,032,927.45

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

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


RECAPITULATION OF 1965 AND 1966 ASSESSMENT AND TAXES


In dollars


Num-
Year ber of
bills


Land and
building


Night- Amount of
Taxes soil homestead


Total including nontaxable, tax exempt, church, Virgin Islands government:
1965. ..... 15,760 206,729,680 2,584,121.00 4,625.00 155,590.57
1966 ..... 17,649 252,812,382 3, 160, 154. 78 3, 195. 73 333, 160.48
Total of tax exempt, government, church:
1965 ..... 640 50,834, 724 635,434. 05 .... .....
1966 ..... 866 59,991,879 479,898.49 ....... .........
Total of tax exempt:
1965..... 98 24,913,526 311,419.08 ........ ..........
1966 ..... 95 18, 101,826 226,272.83 ....... .........


Taxes


2,433, 155.43
2,830,190.03

635,434.05
749, 898.49

311,419.08
226,272.83


Office of the Recorder of Deeds,
St. Thomas

The Office of Recorder of Deeds, St.
Thomas, experienced a relatively high
rate of delinquent real property tax
bills during the year. As a result, 674
liens and 1,506 releases were recorded.
The number of other documents re-
quired by law to be recorded increased


by 2,878, for a total of 8,661 docu-
ments recorded during fiscal year 1967.
Fees collected for recording of docu-
ments amounted to $39,485.27. In ad-
dition, fees collected under the uniform
commercial code for recording of fi-
nancial statements amounted to
$4,983.95 for a total of $44,469.22 in
fees collected, a decrease of approxi-
mately $2,100. These figures do not in-







clude fees collected by the Department
of Public Works for attestations and
measure briefs.


Documents

D eeds.................................
M mortgages .................. .........
Chattel mortgages.......................
Conditional sales and contract ............
Cancellation and releases ................
Contracts..............................
Bills of sale.............................
Leases.................................
Liens..................................
Adjudications...........................
Easem ents............. ................
D eath certificates .......................
Assignments............................
Trust receipts...........................
Prom issory notes ........................
Financing statements ....................
Miscellaneous...........................
Certificate of Purchase ...................
Certificate of redemption .................

T otal............................


A comparative analysis of documents
recorded and charges assessed over the
past 5 fiscal years follows:


1963 1964 1965 1966 1967


547
535
570
886
356

155
37
9
31
45
1 1



171



3, 353


743
537
655
1, 147
1,009

10
59
28
16
39
6
21


397


4, 767


920
744
819
2, 271
582

6
44
120
30
35
11
23
15
8

169



5, 794


898
721
26
313
602

21
58
903
33
22
12
37


1,926
216


5, 783


936
857
(I)
(1)
2, 108
32
20
43
1,557
27
32
14
59


2, 483
312
147
34

8,661


1 Included in financing statements.

COMPARATIVE LIST OF FEES COLLECTED


1966 1967


Total fees collected
(dollars) ............... 28, 688. 20 42,


The translation from Danish to Eng-
lish of 10 books in series 2 was com-
pleted during fiscal year 1967. These
books contain documents recorded in
Danish from around the year 1791.
The advanced deterioration of the
books due to extreme age made the
translation efforts exceedingly difficult.
Despite this, considerable progress was
made and painstaking efforts are being
exercised to preserve these records.
Microfilming efforts, temporarily
suspended, but subsequently continued
during the year, saw books up to and
including series 8-T (each series con-
tains books from A to Z) filmed with
13 additional books ready for the


170.33 58, 796. 68 46, 664. 93 44,469.22


camera. It is planned that by the end
of fiscal year 1968 work will have be-
gun on the microfilming of the books
which have been translated during
fiscal year 1967.


Office of the Recorder of Deeds,
St. Croix

A total of 5,740 documents was re-
corded and 272 documents certified by
this Office during fiscal year 1967. Fees
collected for these transactions
amounted to $47,954.00.
A comparative analysis of documents
recorded and charges assessed over the
past 5 fiscal years follows:








Documents

D eeds.......... . ............. ....
M mortgages ................ ...........
Chattel mortgages.................... ...
Conditional sales and contract ...........
Cancellation and releases. ................
Leases .................. ... .......
L iens..................................
Easem ents .................. ............
Adjudications ...........................
Death certificates .... ..... . . ....
Assignm ents............................
T rust receipts................ .........
Certificates of attachments ................
Attachments ..........................
Financing statements ....................
Continuation, termination statements .....
Assignment and release ..................
Miscellaneous ...........................

Total.............................


1963 1964


718
501
121
437
383



19
23


45




295

2, 552


748
539
193
357
431



12
9


55




399

2, 743


1965 1966 1967


848
622
336
1, 762
542



11
25






408

4,554


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

40
302

5,541


513
8
146
7
27
21
11

508
271
2,236

47
374

5,740


1 Included in financing statements.


COMPARATIVE LIST OF FEES COLLECTED


1965 1966


Total fees collected (dol-
lars) ............. .


22, 111.50 31,956. 50 44,926.75 60,012.00 47,954.35


Passports

The issuance, renewal, amendment,
and extension of U.S. passports con-
tinued to be one of the major functions
performed by the Office of the Gov-
ernment Secretary. Fiscal year 1967
reflected a considerable amount of in-
creased activity in this particular area.
During the month of April 1967,






Issued................................
Renewed.......................... ....
A m ended ........................... .
Extended.............................

T otal ................... ...... .

Total fees collected (dollars) ............ .


alone, a total of 176 original passports
was issued. One contributing factor to
the issuance of such an unusually large
number of passports during this 1-
month period was the educational tour
of European countries by high school
groups from St. Croix and St. Thomas.
The following table reflects passport
activities and fees covering the past 5
fiscal years:



1963 1964 1965 1966 1967


273
60
8


341

2, 762


273
118
8


399

3, 115


334
123
5


462

3, 621


493
173
8


674

5, 302


715
165
11
2

893

7, 392







Of the total amount collected for the
fiscal year 1967, $132 represented fees
collected in the last days of the fiscal
period, passports for which will not be
processed until early July 1967, thereby
carrying them over into the 1968 fiscal
year.


Notaries Public


Act No. 1954, approved May 4,
1967, increased from 60 to 100 the
number of notaries public commissions
authorized for the Virgin Islands, of
which 96 are subscribed. This act also
provided that the executive secretary
of the legislature be appointed as a
notary public ex-officio.
To enhance public convenience and
provide ready information for those
interested in obtaining commissions as
a notary public, printed information
sheets setting forth the requirements
embodied in the Virgin Islands Code
were prepared and are being dis-
tributed to new applicants along with
an affidavit which must be executed
by them.


Ministerial Licenses

There were 20 letters of authority
granted to ministers during fiscal year
1967. Such letters permit these indivi-


Acts .................................
Resolutions ..........................


Banking Board of the
Virgin Islands

Six banks-one a mutual savings
bank-and one savings and loan asso-
ciation were operating 20 main and
branch offices in the Virgin Islands at
the close of fiscal year 1967. In addi-


duals to perform civil-religious cere-
monies in the islands.
The following table reflects the num-
ber of such letters issued during the last
5 fiscal years:

1963 1964 1965 1966 1967

7 14 20 10 20


No fees are collected for these letters
of authority.

Legislation

The Office of the Government Sec-
retary is responsible for the assigning
of act numbers and resolution numbers
to bills as they are passed by the legis-
lature and approved by the Governor.
The office is further charged with the
responsibility of distributing these en-
actments to the several government
departments, in addition to the Direc-
tor of the Office of Territories, Depart-
ment of the Interior. These measures
are subsequently printed in slip-law
form, after which a further distribution
is made and the remainder filed in the
Office of the Government Secretary.
The following table shows the num-
ber of acts and resolutions passed which
received executive sanction during the
past 5 years:


1963 1964 1965 1966 1967

133 172 222 344 188
39 44 39 32 37


tion, one of the banks operated two
offices in the British Virgin Islands.
These banks are: The New St. Croix
Savings Bank, Virgin Islands National
Bank, Chase Manhattan Bank, Bank
of Nova Scotia, Barclays Bank, DCO,
First Federal Savings & Loan Associa-







tion, and First National City Bank.
The provisions of the National Bank
Act as adopted by the Congress (12
U.S.C. sec. 21 et seq.) exclude three
of the above-mentioned institutions
from the supervision of the Banking
Board of the Virgin Islands in that they
are national banks.
No action was taken during the
period covered by this report to activate
the application of the Caribbean Bank
& Trust Corp. mentioned in previous
reports as pending.
During fiscal year 1967, the bank-
ing board completed a proposed new
banking code embodying an overall
revision of the banking laws of the
Virgin Islands. The final draft was
developed through open and executive
meetings of the banking board, cor-
respondence and conference with all
members of the banking community
including the national banks, and close
consultation with the Office of the
Attorney General.


New chapters and sections are to
provide for, among other things, the
regulation of small loan companies and
pawnbrokers; savings and loan asso-
ciations; the powers of domestic cor-
porations provided by title 13; and
provisions to guard against unauthor-
ized disclosure of information by bank
personnel. This draft legislation is
now before the Governor for his
review prior to its submission to the
legislature.
The following comparative table re-
flects the growth of the banking indus-
try of the Virgin Islands for the past 5
fiscal years. The 1963-64 figures in-
clude the activities of four banks and
the savings and loan association. The
1965 figures represent the activities of
only the four banks established at that
time. The figures for 1966 represent
activities of five banks and the savings
and loan association; and for 1967
six banks and the savings and loan
association.




















Fiscal year-


T otal assets ..................................
T otal liabilities ...............................
L oans.......................................
M mortgages ...................................
D eposits.....................................
Time...................................
Demand ................................
Savings ..................................
C ash on hand ................................

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


$59, 056,190
56,270,413
9, 149, 990
21,766, 369
1 51,988,767



4, 258, 403


$67,782,950
63,908,111
13,282,331
27,925,425
2 58, 721,006



3,379,280


$79, 541,767
77, 169, 041
20,905,951
30, 585,358

3 6,439, 154
4 34, 309, 809
33,335,260
1,938,825


1966


$106,075,039
103,461,337
26,444,218
39,961,792

19,859, 789
35, 124,628
42,527,182
4.287,970


1967

$136, 713,491.04
138,646,511.20
29,267, 722. 25
51,237, 779. 72

40,832,997.38
46, 566,403. 64
47, 499,267.94
3, 657,923.85











Department of Education


Personnel: 908


Major strides were made in the field
of education in the Virgin Islands dur-
ing the fiscal year. Of inestimable
importance in its achievements were
the contributions made under the
Elementary and Secondary School Act
of 1965, the Office of Economic Oppor-
tunity and other Federal and local
agencies. Funds made available from
these sources were responsible for the
implementation of several innovative
educational enterprises and exemplary
pilot programs; for curriculum devel-
opment and for the improvement in
the quality of education.
The development of a corp of highly
trained teachers was one of the primary


Operating Appropriation: $7,287,929

goals of the department. This aim,
however, was impeded by problems in
recruitment and retention of teaching
personnel. This has been the first year
in which die director of personnel
services functioned and some improve-
ment was seen in the area of teacher
turnover. The director conducted re-
cruitment in the United States, per-
sonally and by mail, and was able to
find replacements for most teachers
who had resigned. With the acquisi-
tion of more equipment and supplies
plus better salaries, it is anticipated
that teachers now being hired will be
inclined to spend 2 or more years in
the local system.


7- -..


The Tutu Elementary School on St. Thomas, one of the three new educational facilities
completed during the year in the islands.







Significant progress has been made
in vocational education. In addition to
new efforts, projects which had been
initiated the previous fiscal year, have
either been strengthened or brought to
fruition.
A bureau of public information
services was established by the depart-
ment, and charged with the function
of presenting the purposes, accom-


plishments, conditions, and needs of
the Department of Education.

Division of Business

This division is charged with the
budgeting function and financial
accounting of all funds allotted to the
department. The following tables indi-
cate the extent of their activities dur-
ing the fiscal year 1967:


A. VIRGIN ISLANDS APPROPRIATION-FISCAL YEAR 1967

Division Appropriation Percent of
total


Office of the Commissioner ...........................
Curriculum and instruction ...........................
B usiness...................... ....................
Property, procurement and auxiliary services............
Schoollunch.......................................
Community programs................................
Grants and contributions .............................

Total......................................


$159,015
4,022,517
117,712
920,838
686,254
163,814
1,217, 779

7, 287, 929


2. 18
55. 19
1.62
12. 64
9.42
2.25
16. 70

100.00


B. FEDERAL AIDS FUNDS AND GRANTS-FISCAL YEAR 1967


Activity


Natic
Voca
Voca
Publi
Speci
Scho
Man
Proje
Elem
Neig
Adult


In ad
S


Amount


nal Defense Education Act (titles III, V, and X) ................... $109, 639.00
tional education............................................... 128, 044. 00
tional rehabilitation ............................................ 116, 573.00
c library services (I, III, and IV)............................... 1 34, 737. 00
al Federal grants-Public Law 874 ............. .............. 94, 441. 00
ol lunch (special fund).......................................... 125, 048. 00
power development and training ................................. 14, 619. 00
ct Headstart .................................................. 122, 216.00
entary and Secondary Education Act ............................. 1 537, 981. 00
hborhood Youth Corp (1st and 2d projects) ........................ 41, 351.00
t basic education ................... ............................ 27, 600. 00

Total................ ..... ........................... ...... 1,352, 249.00

Edition, the division accounted for funds for the following special projects:
school crash construction revolving fund (proceeds from bond issue)... 4, 700, 000


Repairs and improvements to school buildings (single I matching
fu n d s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special education workshop for teachers ............................

Total ................... .............. ..................


50, 000
25, 000

4, 775, 000


I Includes grant award entitlements for fiscal year 1967, although the total amount may
not have been received and expended as of June 30, 1967.







C. TOTAL OPERATING FUNDS AVAILABLE-FISCAL YEAR 1967

Source Amount Percent


Virgin Islands appropriated funds ................... ...... $7, 287, 929
Federal aid funds and grants.............................. 1, 352, 249

Grand total ...................................... 8, 640, 178


Total expenditures for the Department of Education activities,
related services, and capital outlay ....................... 13, 415, 178 ....


D. 5-YEAR COMPARISON OF TOTAL OPERATING BUDGET


Local funds Federal funds


84. 00
16. 00

100.00


Total


1962-63.............................
1963-64 .. ...........................
1964-65 .............................
1965-66.............................
1966-67.............................



School Enrollment
Total enrollment in public schools
increased from 10,254 to 10,594. Total


$3, 154,328
3, 856, 974
4, 689,633
5, 722, 885
7, 287, 929


$323,971
370,225
419,466
1,449,583
1,352, 249


$3,478, 299
4,227, 199
5, 109,099
7, 172,468
8,640, 178


in nonpublic schools increased from
4,012 to 4,546. The following tables
show the figures for the past 5 years:


Public

1962-63 1963-64 1964-65 1965-66 1966-67


Kindergarten. .....................
Grades 1 through 6 and ungraded....
Grades 7 through 12................
T otal .......................


545
5, 036
2, 573
8,204


564
5, 197
2, 910
8,671


690
5, 536
3, 173
9,399


813
5, 993
3, 173
10, 254


810
6, 361
3, 423
10,594


Nonpublic


Total............. .............. 3,213 3,470 3,870 4,012


4,546


Federal Aid Programs

As noted in the statistical table
above, the department received a total
of $1,352,249 of Federal funds under
the various public laws for which the
Virgin Islands was eligible.
Under the program known as
NDEA (National Defense Education
Act), emphasis was placed on lan-
guages, mathematics, and science. A
modem foreign languages program in
the elementary and secondary schools


was strengthened by the acquisition of
equipment, materials, and supplies, the
use of the audio-lingual approach and
the interest shown by participating
teachers. Workshops were conducted
for teachers in mathematics which
dealt with teaching methods and tech-
niques, use of manipulative materials,
the overhead projector, and transpar-
encies. Algebra classes were arranged
for students in the ninth grade level at
Christiansted High School. Teachers







commented favorably on the results of
this program. In science, the super-
visor assisted in planning and coor-
dinating the 2-week visit of the Na-
tional Aeronautics and Space Adminis-
tration to the islands. This program was
satisfactorily presented to 4,700 school-
children. Adults received the presenta-
tion in the form of teacher-in-service,
television, and radio programs. The
space demonstration was given to pri-
vate, parochial schools, and to the
College of the Virgin Islands. During
the year, considerable teacher interest
in aquariums and terrariums was
manifested.
Under ESEA (Elementary and Sec-
ondary Education Act), the Virgin
Islands received a grant of $537,981,
under title I, which was used for sev-
eral pilot programs. One project, in-
volving 18 classrooms, centered around
audio-lingual reading. This, essentially,
is a method by which children are
taught individually while in a group
seated around a console with head-
phones. A summary program centered
around cultural enrichment, with areas
of concentration on communication
skills, arts and crafts, physical educa-
tion, and marine biology. Emphasis was
on listening, speaking, and play pro-
duction. Carefully selected books, rec-
ords, and other materials contributed
to the success of the program. Approxi-
mately 2,000 children from grades one
through 12 participated in these pro-
grams on the three islands. Funds from
title II of ESEA which provided library
resources for all teachers and children,
amounted to $32,000 to the islands.
This sum, approximately $3 per stu-
dent, was spent for library books,
16 mm. and 8 mm. films, records, tapes,
and other printed instructional mate-
rials. Under title III, a grant of $33,-
917 was received to plan an educational
and cultural center. This center is en-
visioned as the primary creative force


in elementary and secondary educa-
tion in the islands. The project was
officially approved on June 30, 1967.
Under funds allotted by the Office of
Economic Opportunity, the Depart-
ment conducted 27 classes in the Head-
start program. Of this number, only
four shared facilities with kindergarten.
An institute to help train all Headstart
teachers was conducted by Social Edu-
cational Research and Development,
Inc. Plans were also made to send the
teachers for training to Wheelock
College, Boston, during the summer
months.

Curriculum and Instruction
This division experienced a produc-
tive year of educational activities. All
of these activities were directed toward
the improvement of the curriculum
and the learning experiences of chil-
dren and youth, the improvement of
the physical environment, and the
professional growth of instructional
personnel.
In the elementary system, the Grove
Place School was made a demonstra-
tion school with a special coordinator
assigned by New York University. The
nongraded primary program at Lock-
hart Elementary School proceeded as
planned. Physical education teachers
were assigned to grades four to six.
Plans called for an expansion of this
program to include grades kindergar-
ten 3, with health instruction to be
given by the classroom teacher. The
Headstart program was carried
through on all islands and audio-lin-
gual reading projects conducted in St.
Croix and St. Thomas. Teacher aides,
electronic language laboratories, ad-
ditional library books, and audiovisual
equipment were made available
through Federal funds (refer to Fed-
eral aid programs above). Scheduled
were summer programs in remedial
reading for children and NDEA sum-






mer institutes for teachers at the Col-
lege of the Virgin Islands.
In secondary education, the well-
known educational core program was
introduced into three junior high
schools after a year of planning, ori-
entation of teachers, and final accept-
ance by the board of education. On
March 30, 1967 the Wayne N. Aspin-
all Junior High School in St. Thomas
was dedicated. The art and music de-
partments made commendable contri-
butions to the semicentennial celebra-
tions on all three islands; to the annual
carnival in St. Thomas and Christmas
festival in St. Croix; and at the music
and art festival in St. Croix. A band
booster club-similar to that of St.
Croix which has functioned efficiently
for many years-was begun in St.
Thomas.


Important additions to the secon-
dary staff were school nurses to Chris-
tiansted High and Junior High Schools
and the Wayne Aspinall Junior High
School. For the second full year, adult
education was conducted from grades
1 through 12, and approximately 275
persons were enrolled in 17 classes of
adult basic education which extends
through grade 8.

Vocational Education
Vocational and industrial arts
courses were offered at the following
schools during the school year: Wayne
N. Aspinall Junior High School, and
Charlotte Amalie High School, St.
Thomas; Julius E. Sprauve School, St.
John; and Christiansted Senior and
Junior High Schools, and Claude O.
Markoe School, St. Croix.


The Wayne N. Aspinall Junior High School under construction at Crown Bay, St.
Thomas. The school, constructed on reclaimed land, admitted its first class in Septem-
ber 1967.







In St. Thomas and St. John 492 stu-
dents were enrolled in industrial arts,
with 423 in home economics. Business
Education, automotive mechanics, and
electricity totaled 64, 48, and 36, re-
spectively. In St. Croix, industrial arts
ranked third, with 118 students. Busi-
ness education had the greatest number
of enrollees with 402 students, followed
by home economics with 145. Courses
in electronics and horticulture were
offered for the first time in St. Croix.
In addition to the vocational educa-
tion programs, this Division is respon-
sible for the administration of man-
power development and training pro-
grams. Approval was secured from the
Washington office for six training proj-
ects which will commence the begin
ning of the next fiscal year. A keypunch
operator course was initiated in St.
Thomas and was successful. Seven
trainees completed the course and were
immediately absorbed by local govern-
ment agencies and private enterprise.
In cooperation with the Virgin Is-
lands Employment Security Agency,
this division was instrumental in initi-
ating several X-projects such as diesel
mechanics, office machine mainte-
nance, and arc welding. A 30-hour
evening course for nonlicensed electri-
cians preparing to take licensing exam-
inations was conducted at Charlotte
Amalie High School.
Conducted in St. Thomas and St.
Croix were 1-day workshops for office
occupations instructors; in-service
training courses of 30 hours for school
lunch workers and classes in practical
nursing for out-of-school youth and
adults.
The vocational education State of-
fice continued to work closely with
other government agencies who are
connected with placement of dropouts
and graduates of the vocational educa-
tion program. Some of these agencies
were: Employment Security Agency,


the Department of Labor through its
Bureau of Apprenticeship and Train-
ing, the Chamber of Commerce, the
Planning Board, the Department of
Health and the Department of Social
Welfare.

Bureau of Educational Research

This section prepared the annual
"Directory of the Public, Private, and
Parochial Schools of the Virgin Is-
lands," the "Biennial Report, State
Elementary and Secondary Schools,
1965-66"; the "Fall Survey of Enroll-
ment, Teachers and School Housing,
and Estimated Expenditures and Salary
Date for the Virgin Islands, 1966-67."
The last two reports were sent to the
Office of Education, Washington, D.C.
The bureau prepared the material on
Virgin Islands "Educational Policy,
Legislation, and Administration," for
chapter V of the "World Survey of Ed-
ucation," to be published by UNESCO.
The first volume of biographies of fa-
mous and important Virgin Islanders
of the past, written on about fourth
grade level is expected to be available
before the end of the calendar year.
The bureau also completed for the
Council of Chief State School Officers,
"Development of the Virgin Islands
State Department of Education,
1900-65."


Bureau of Pupil Personnel Services
The bureau strived to help each
pupil develop his maximum potential.
Guidance, counseling, and testing
services were provided by nine coun-
selors, several assistants, and the
director. On the elementary level,
7,254 tests were administered to public
school pupils and 892 nonpublic school
students. On the secondary level, 5,148
and 813 tests were administered to
public and nonpublic school students,







respectively. Physical and dental ex-
aminations were performed for approx-
imately 89 percent of the senior
students at Charlotte Amalie High
School and 60 percent of those at
Christiansted High School. At the time
of examination, vaccination and im-
munization against diphtheria, tetanus,
and polio were given. In the Division
of Mental Health 67 cases were re-
ferred to the school psychologist-53
from public elementary schools and 14
from secondary schools. High school
equivalency tests were taken by 177
adults during the year and high school
equivalent certificates were issued to
seven veterans based on scores made in
the Armed Forces Institute. The Board
of Education approved 153 scholarship
applications, recommended by the
bureau which also administers the ter-
ritorial scholarship program.


Pupil Transportation
It was necessary to adjust schoolbus
schedules to accommodate split-day
sessions in the public high schools in
St. Thomas and in St. Croix. This ac-
tion, along with relocation of the
Country Day School in St. Croix, and
ultimately the shifting of certain classes
of the Christiansted Elementary School
to the Hess Oil site, resulted in a sub-
stantial increase in bus operations, both
in the number of daily trip require-
ments and in the number of pupils to
be accommodated. Comparative data
are shown below:

NUMBER OF PUPILS TRANSPORTED

1965-66 1966-67


St. Croix..........
St. Thomas ......
St. John. .........
St. Thomas/St.
John (boat).....


2, 184
563
120
35


Totals ...... 2, 902


4, 513
775
132
32
5,452


NUMBER OF BUS TRIPS OPERATING
DAILY

1965-66 1966-67

St. Croix.......... 84 117
St. Thomas. ...... 15 27
St. John .......... 10 114
Totals ...... 109 158

1 Includes 6 trips daily with Department
of Education vehicles; all other operations
are contract services.


COST OF PUPIL TRANSPORTATION

1965-66 1966-67


St. Croix ..........
St. Thomas .......
St. John..........
St. John/St.


Th


$201,297
44, 333
9, 650


$267, 339
66, 735
11,421


omas (boat)... 5,250 4, 860
Totals....... 260,530 350,355


Buildings, Maintenance, Repairs,
and Custodial Service

Employment of additional personnel
in this area has permitted a substantial
increase in job accomplishment during
the year. Nonetheless, difficulty was still
experienced in meeting growing main-
tenance demands. In order to meet
them fully, it is hoped that a program
of "professional" instruction and train-
ing for custodial workers, with concur-
rent and followup supervision, can be
introduced in the near future.
In the field of plumbing, a program
was initiated of replacing flush valves
with a new kind of valve which ap-
pears to be far superior and less vul-
nerable to fluctuating water pressure.
This, plus the benefit derived from a
more dependable water supply in cer-
tain areas of St. Thomas, has helped
eliminate the problem in Charlotte
Amalie High School-Lockhart Elemen-
tary School complex.







School Lunch Program
The program, vital to the develop-
ment of sound nutritional eating habits
in our schoolchildren, is operated on a
shared responsibility basis and admin-
istered by Federal and local govern-
ment agencies.
The operation involved 33 facilities
and provided a well-balanced type A
lunch daily to 9,482 students in kinder-
garten, elementary, and high school.
Headstart, VISTA, and title I projects
were also included in the program.
One hundred and fifty-seven food-
service workers, including cooks,
kitchen managers, and an administra-
tive staff of nine, were involved in the
program. Working as a team they
served 1,584,919 type A lunches
through 33 kitchens.
There was a total of 116 full admin-
istrative reviews and 47 partial reviews
at St. Thomas, St. Croix, and St. John.
The overall insular appropriation
for fiscal 1966-67 was $631,704, and
the Federal grant was $118,208.
Seven enrollees from the Neighbor-
hood Youth Corps were given food-
service training and one was assigned
to office training.

Bureau of Public Libraries
The bureau, under the Department
of Education, includes a main library
in St. Thomas with a part-time branch
in Frenchtown, and full-time branches
in Cruz Bay, St. John, Christiansted,
St. Croix, and Frederiksted, St. Croix.
Recently the libraries in St. Coix ex-
tended their hours of services from 9
a.m. to 9 p.m., a schedule equal to that
of the main library in St. Thomas.
During fiscal 1966-67 library service
expenditures totaled $172,004, ap-
proximately 2V/2 percent of the budget
of the Department of Education. The
Virgin Islands has received Federal
grants since 1956, to which local
matching funds were contributed as re-


quested by each legislature. This source
provided services for bookmobile units
in St. Croix, St. John Public Library,
Frenchtown Public Library, books and
materials, and personal services.
Funds earmarked for the restoration
of the present Christiansted Public Li-
brary Building have been allocated. A
State plan for construction under title
II was submitted and approved and
funds have been received, matched,
cumulated, and reserved for this pur-
pose, totaling $77,362.
Major achievement of the bureau
was its participation in the establish-
ment in March of an instructional
materials center, made possible by Fed-
eral funds. The center was used by sub-
ject supervisors to develop materials
needed for workshops and in their gen-
eral supervisory duties. Six-week in-
structional media workshops were held
on St. Croix and St. Thomas for 60
participants. This year's "Books on Ex-
hibit" with 4,000 new publications of
K-12 books was a success, though
many thought the time of the exhibit
was too short. Recommendations and
general aides were extended to the
ESEA title I programs in the selecting,
evaluating, and processing of $28,000
of elementary school library books for
the public schools. Title I library aides
were also given 2 weeks of in-service
training in library procedures to im-
prove their effectiveness. Two demon-
stration workshops were conducted in
the selection and utilization of media
in the classroom for 60 public and pri-
vate school teachers at the College of
the Virgin Islands.
In addition to providing larger sums
for title I in public library service and
title II in public library construction,
the 89th Congress established authori-
zation for three new programs. Title
IV-A is designed to encourage the
States to establish or improve library
services within State institutions, title
IV-B seeks to improve library services






to physically handicapped persons un-
able to read convenient printed
materials and title III (interlibrary co-
operation) seeks to promote the estab-
lishment and maintenance of local,
regional, State, or interstate coopera-
tion networks of libraries which would
assure effective coordination of all
types of library services. It is meant to
coordinate all federally aided spending
in all categories for library service in
each State. This is designed to coordi-
nate services in order to avoid duplica-
tion and ineffectual spending, with a
view toward combining efforts and
benefits through increased discounts
resulting from cooperative buying on
statewide level as well as on interstate
scale. Details of the activities and pro-
grams to be established under title III
are now being prepared and will be set
forth in the State plan.
The quality of library personnel has
improved. Two library school grad-
uates were employed, others who are
also called librarians have at least the
bachelor's degree and experience in
some phases of library service. Profes-
sional standards and general upgrading
of all personnel continue to be bureau
objectives.

Vocational Rehabilitation
Vocational rehabilitation services
are available to all Virgin islanders


who are physically or mentally disabled
to such an extent that the disablement
constitutes an employment handicap.
Handicapped persons receive serv-
ices through two offices located in St.
Thomas and St. Croix. Federal fund-
ing at a ratio of 75-25 percent has been
responsible for the major rehabilitation
activities. During the fiscal year, 76
handicapped persons were successfully
rehabilitated as compared to 58 the
previous year. The Virgin Islands
placed ninth in rank, by State, in the
number of rehabilitations per 100,000
population in 1966. The sheltered
workshop in St. Croix, now supported
by local funds, accommodates em-
ployees who are not expected to move
into outside employment, but who are
successfully producing saleable items
in the workshop setting.
In February 1967, a sheltered work-
shop for the handicapped was estab-
lished in St. Thomas, where eight
handicapped persons are being evalu-
ated and trained. Plans are in motion
to serve at least thirty clients within the
workshop for the next 2 years.
Three severely handicapped persons
were sent to the Institute of Physical
Medicine and Rehabilitation in New
York where they received treatment,
therapy, and training in the activities of
daily living.


282-348 0-68 5











College of the Virgin Islands


Personnel:
Teaching Faculty: 32
Administrative Faculty: 18
Other Staff: 49

Growth in Enrollment
The College of the Virgin Islands
continued to have a high rate of
growth during fiscal year 1967. The
fall enrollment of full-time students
numbered 229, an increase of 79 per-
cent from last year's enrollment; there
were 700 enrollees in the division of
continuing education, an increase of 17
percent; and the full-time equivalency
is now 461, a 49-percent increase over
the previous academic year.

4-Year Programs

The transition of the college to 4-
year baccalaureate status was of major
concern during this fiscal year. The
design of a 4-year curriculum occupied
much of the nonteaching time of sev-
eral faculty committees appointed by
the President.


Special Programs
The college continued to add to the
cultural growth of the community,
successfully sponsoring an artists and
lecturers series, exhibitions of paintings
by local artists, music programs, theat-
rical productions, and a film series.
The college was host to a reception


Operating Appropriation: $934,477




given by the Governor during the Vir-
gin Islands' semicentennial celebration.
The college took an active part in
aiding the government in demonstrat-
ing the facilities and qualifications of
the islands to mainland-based agencies
evaluating various sites as potential
centers of marine research and ocean-
ography. It will continue to play an im-
portant role in these rapidly expanding
fields with the opportunities afforded
to the Virgin Islands by their graphic
location and natural resources.
Increased responsibility for the ad-
ministration of Federal educational
and research programs was vested in
the college. The Peace Corps, the Bu-
reau of Sports Fisheries and Wildlife,
the Bureau of Commercial Fisheries,
and various offices and agencies of the
Department of Health, Education, and
Welfare have increased their utiliza-
tion of the college's administrative staff
and faculty. This is indicated by the
fact that during fiscal year 1967 the
college was responsible for the fiscal
management of over $1,340,000 in
Federal funds for various research and
educational projects.
One of these projects, especially sig-
nificant to the islands, is the Upward
Bound program, a precollege program
for secondary school students. There is






a full-time summer Upward Bound
program and a followup program dur-
ing the school year. The purpose of
this program is to motivate high school
juniors and seniors who might not
otherwise consider a college education
possible. Another such activity is the
college's cooperation with the Peace
Corps training programs on St.
Thomas and St. Croix in an effort to
aid in regional development.

Continuing Education
The division of continuing education
has grown in significance as well as in
size. This program allows many adults
who previously had no opportunity for
higher education to develop their skills
and interests by formal education and
training. It also has great appeal for
the increasing numbers of people who
retire and come to live in the U.S.
Virgin Islands.

Building Program
The building plans reported on last
fiscal year have been realized with con-
struction underway on women's resi-
dence halls, a library, and faculty
quarters. A nursing building will be


the next unit constructed under the
college's master building plan.


Activities on St. Croix and St. John
During this past fiscal year the col-
lege assumed full responsibility for the
U.S. Department of Agriculture Fed-
eral Extension Service. A new director
has been recruited, and the service
is carrying out livestock, crop, youth,
and home economics programs aimed
at serving the needs of the U.S. Virgin
Islands.
The college acquired a long-term
lease of property within the Virgin
Islands National Park on St. John. A
fisheries laboratory is being constructed
on this site with Federal and local
matching funds under the Federal
Accelerated Public Works program.
This laboratory will become the prop-
erty of the Virgin Islands government
and will be operated by the college
as a part of its Virgin Islands ecologi-
cal research station. Through this
medium and through the Caribbean
Research Institute, the college mani-
fests its interest in the fields of ocean-
ography, marine biology, and related
sciences.










Department of Health


Personnel: 804


The state of health and medical care
in the Virgin Islands continued to be
excellent during the fiscal year. There
have been no epidemics or outbreaks
of serious illnesses, although two cases
of malaria were found in servicemen
who has recently returned from Viet-
nam. There was a rise in the number
of vehicular accidents.
A bureau of health insurance and
medical assistance was organized Feb-


Operating Appropriation: $7,612,764
ruary 1, 1966, to implement the
program known as medicare. The
Knud-Hansen and Charles Harwood
Memorial Hospitals, plus the Ingeborg
Nesbitt Clinic were certified as pro-
viders. An estimated 29,048 persons
have indicated eligibility for medicare,
representing 60 percent of the total
population. Its augmentation now in-
volves a good majority of the popula-
tion in medical care programs.


Pediatric nurses and aides at the Knud Hansen Memorial Hospital in St. Thomas join
their young patients during the recreational period in one of the children's wards.







A children and youth program to
provide comprehensive health care for
the children of the islands, particularly
those of low-income families, was in-
augurated this year.
Unprecedented demand for fast and
accurate information has placed new
burdens upon the managerial staff.
Urgently necessary is the establishment
of new administrative techniques to
handle additional workloads.
More and better trained medical and
office personnel has been recruited al-
though the department's requirements
have not been fully met due to the
scarcity of qualified professional men
and women.
New and appropriate steps have
been taken to safeguard our communi-
ties from the impending hazards of
water and air pollution.

New Health Centers
Construction of two new medical
and public health facilities, one for St.
Thomas and one for St. Croix, is to
commence in early 1968. Planning is
proceeding on schedule and is now in
the final stages. Cost of drawings, spec-
ifications, and sites thus far amount
to $2,068,649.21.

Bureau of Vital Records and
Statistical Services
In accordance with the provisions of
the vital statistics law, this bureau per-
formed the usual routine services of
registration of vital events, the verifi-


cation and certification of records, and
the collection of reports of baptism,
paternity acknowledgments, marriages,
divorces, and adoption records. In ad-
dition, the bureau conducted a variety
of studies for various individuals, agen-
cies, and organizations.
In contrast to previous years which
showed a steady increase in the birth
rate, the past fiscal year revealed a de-
cline. There were 1,956 live births as
opposed to 1,999 in 1965. Of these, 49
percent were born to mothers from the
British West Indies. There were "388
deaths, a decline of 29 reported in 1965.
Due to the decrease in deaths and the
increase in population, the death rate
per 1,000 population is now 7.6 per-
cent. As in previous years, heart dis-
ease is the leading cause of death,
totaling 132. The following tables show
deaths by age distribution and lead-
ing causes:

AGE DISTRIBUTION OF DEATHS

Years Number Percent

Under 1 .......... 60 15.4
1 to 4 ............ 5 1.3
5 to 14........... 8 2.1
15 to 24 .......... 10 2.6
25 to 44.......... 36 9.3
45 to 64.......... 99 25.5
65 to 74.......... 60 15.4
75 to 84.......... 64 16.5
85 and over ...... 41 10.6
Unknown......... 5 1.3
Total........ 388 100.0


LEADING CAUSES OF DEATH
[Rate per 100, 000 population]
Causes Number Rate Percent of
all deaths

1. Diseases of the heart ...................... 132 259. 5 34. 1
2. Diseases of early infancy ................... 49 96. 3 12. 6
3. N eoplasm s. ............................... 43 84. 5 11. 1
4. Accidents, poisonings, and violence.......... 37 72. 7 9. 5
5. Diseases of the nervous system and sense
organs ................................ 35 68. 8 9. 0
All other causes .......................... 92 180. 9 23. 7







LEADING CAUSES OF INFANT DEATHS
[Rate per 1,000 live births]

Causes Number Rate Percent of
all deaths

1. Prematurity.............................. 24 12. 3 40.0
2. Asphyxia and atelectasis ................... ..9 4. 6 15.0
3. Ill-defined diseases ....................... 8 4. 1 13. 3
4. Pneumonia (all types) I....... ......... 8 4. 1 13. 3
All other causes .......................... 11 5.6 18.4

1 Tie for third.








SUMMARY OF VITAL STATISTICS-VIRGIN ISLANDS AND EACH ISLAND, 1965 AND 1966
[Birth, death, marriage, and divorce rates per 1,000 population. Infant, neonatal, maternal, and fetal death rates per 1,000 live births.]

1965 1966

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

No. Rate No. Rate No. Rate No. Rate No. Rate No. Rate No. Rate No. Rate

Live births ........... 199,9 40.2 858 39.0 50 37.1 1,091 41.4 1,956 38.5 860 37.3 35 25.3 1,061 40.2
Deaths .............. 417 8.4 200 9. 1 16 11.9 201 7.6 388 7.6 181 7.8 12 8.7 195 7.4
Infant deaths......... 60 30.0 20 23.3 2 40.0 38 34.8 60 30.7 23 26.7 0 0 37 34.9
Neonatal deaths...... 45 22.5 16 18.6 2 40.0 27 24.7 49 25.1 16 18.6 0 0 33 31.1
Maternal deaths...... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Fetal deaths.......... 72 36.0 22 25.6 0 0 50 45.8 71 36.3 28 32.6 1 28.6 42 39.6
Marriages ........... 595 12.0 257 11.7 ........ 338 12.2 641 12.6 327 14.2 ........ 1 314 11.3
Divorces............. 249 5.0 73 3. 3 .... .. 1 176 6. 3 293 5.8 90 3.9 .... .. 1 203 7. 3

I Includes residents of St. John.






Division of Hospitals and
Medical Services

From the first of the fiscal year the
Knud-Hansen Memorial Hospital con-
centrated a major effort toward im-
plementing the medicare program. The
hospital provided the necessary office
space, equipment, and initial clerical
assistance to set up the medical assist-
ance eligibility unit located in the in-
stitution. Impediments in the smooth
operation of that program, plus in other
areas, have been encountered. One of
these lies in the lack of sufficient space.
Additionally, because of this primary
lack, it is difficult to recruit all the
necessary qualified staff.
Through renovation, conversion, or
elimination of certain functions, pro-
visions were made for an admitting
office, medical assistance office, pedi-
atrics examination room, eye clinic,
urology and surgical clinics, the last
by relocation.
There were 5,647 admissions, 5,612
discharges, and 45,659 total days of
care to inpatients. These were all in-
creases. Overall deaths of 136 equalled
last year's figure, but of this number
newborn deaths were reduced from 34
in 1966 to 24 in 1967. There were
1,250 surgical operations of which 609
were major and 641 minor cases. Lab-
oratory examinations totaled 74,372.
X-ray examinations numbered 13,626.
Emergency room visits of 22,959 and
hospital outpatient clinic visits (exclud-
ing those of public health held in the
hospital) of 21,688 also reflected the
growth and utilization of facilities and
services.
Important strides were made in the
Charles Harwood Memorial Hospital
in St. Croix. A new appointee was
named to fill the position of director
of health services for St. Croix, with
responsibilities to consist of organizing
the professional staff, making a survey
of equipment needs, and setting up


standard procedures. Accordingly, the
medical staff was reorganized into serv-
ices of surgery, medicine, obstetrics, and
pediatrics and a chief of each service
plus staff assigned.
Committees required by the Joint
Commission on Accreditation of Hos-
pitals were made fully functional. All
necessary steps have been taken to ful-
fill requirements for accreditation, and
formal request for inspection by the
joint commission has been made.
A 32-bed addition commenced on
May 1, 1967. This will greatly alleviate
congestion and provide space for
ancillary services such as a modern
physiotherapy department and medi-
cal library.
Due to better diagnostic procedures,
an increasing number of tumors have
been detected, leading to the formation
of a tumor board under the aegis of the
American College of Surgeons.
Plans have been drawn and are
awaiting provision of extra funds for
the much needed expansion of the
emergency room; approximately 1,000
patients per month are processed
therein. A survey was made of equip-
ment needs and special funds obtained
from the Virgin Islands Legislature to
purchase up-to-date equipment. Mod-
ern X-ray diagnostic machinery is in
the process of being installed.
The workload of the hospitals in St.
Croix continued to increase in all areas.
Charles Harwood Memorial Hospital
handled 2,706 admissions, 698 births,
13,275 outpatient clinic visits, and
16,625 emergency room visits. The
Ingeborg Nesbitt Clinic handled 771
admissions, 199 births, 6,658 out-
patient clinic visits, and 6,414 emer-
gency room visits.

Division of Public Health
The budget of this division increased
$1,595,823. Local funds were $806.282.
Federal grants increased to $490,869.
The matching funds, $298,672.







Of major importance was the divi-
sion's designation as the Virgin Islands
agency for comprehensive health plan-
ning, and certification of its home care
program to participate in medicare and
medicaid benefits.
Among the many highlights of
progress were: The creation of a
bureau of finance and a bureau of
physical medicine and rehabilitation;
the awards of two public health project
grants consisting of tuberculosis con-
trol program and comprehensive
immunization project; the develop-
ment of a cytological examination pro-
gram and the revival of the general
disease control project. Additionally,
activities included the administration
of a total of 22,696 immunizations of
DPT, polio, DT, smallpox, and
measles; demonstration among ap-
proximately 1,000 schoolchildren of
tropical fluoridation by the division's
bureau of dental health services with
cooperation of consultants from the
Universities of Indiana and Puerto
Rico; the offering of courses, in con-
junction with the National Communi-
cable Disease Center, in community
epidemiology and community action;
the application of procedures for the
control of food-borne diseases; the


publication and distribution of "Hori-
zons in Family Planning." The last is
significant evidence of the views held
by the Virgin Islands Department of
Health that family planning is an
important facet of public concern.
The division's bureau of envi-
ronmental sanitation continues to
vigorously pursue its program of
eliminating the Aedes aegypti mos-
quito. The index has been markedly
reduced, almost to zero, in St. Thomas
and St. Croix. It is expected that this
disease-carrying insect will be eradi-
cated within the year, as it is already
on St. John. The bureau performed a
major role in the passage of the Vir-
gin Islands Water and Air Pollution
Control Acts and established a pro-
gram for determining water quality
standards for the coastal waters of the
islands. Following receipt of a compre-
hensive plan for sewerage and its dis-
posal in St. Thomas and St. Croix, for
which a contract was let during the
previous fiscal year, it filed applica-
tions with the Federal Department of
Housing and Urban Renewal for
grants for engineering plans. The fol-
lowing tables show the type of sewer-
age used in each of the three towns of
the Virgin Islands:


Charlotte Amalie:
Total properties with dwellings ...........................................
Percentage with pits ..................................................
Percentage with nightsoil. ................... ..........................
Percentage with septic tanks. ...........................................
Percentage connected to sewer. ...........................................
Percentage using public toilets or with no facilities. ..........................
Percentage with pit or sewer and nightsoil and sewer.........................
Christiansted:
Total properties with dwellings ...........................................
Percentage with pits ................................................ .
Percentage with nightsoil ................................................
Percentage with septic tanks. ...........................................
Percentage connected to sewer..........................................
Percentage with pit and sewer or nightsoil and sewer.........................
Percentage using public toilets or with no facilities ..........................
Frederiksted:
Total properties with dwellings ......................................... .
Percentage with pits ..................................................
Percentage with septic tanks....................................... ......
Percentage with nightsoil ................................................
Percentage connected to sewer..........................................
Percentage with pit and sewer or nightsoil and sewer ........................
Percentage using public toilets or with no facilities...........................


2,410
6.7
22. 9
3.4
65. 5
2.4
.9
736
4.8
18.9
3.4
77.8
4.9
0
342
8.8
0
.6
93. 0
2.4
0







Division of Maternal and Child
Health and Crippled
Children's Services

This division is the agency within
the Department of Health that is re-
sponsible for planning, promoting,
implementing, coordinating, and su-
pervising services for maternity pa-
tients and children from birth to 21
years. The former involves organiza-
tion and/or improvement of prenatal
and postnatal clinics; improvement of
the standards of obstetrical personnel
and facilities; payment for certain
aspects of maternity care such as
clinical services, as well as hospital
services for eligible patients. The latter
involves the promotion of health
services; prevention of diseases through
health supervision, immunization,
guidance and counseling; diagnostic
and treatment services including medi-
cal, surgical, and rehabilitative needs.
The number of visits totaled 18,498.
These consisted of 5,996 well child
clinics, 5,499 prenatal clinics, 5,859
crippled children clinics, 780 allergy
followup, 208 specialized pediatric
clinics and 156 medical followup.
A measure of success was achieved in
the recruitment of personnel. Two
pediatricians and two nurses were
added to the staff. However, shortage
of professional staff still remains acute.
In particular, the clinical services of
two rural clinics of St. Croix were ad-
versely affected. The problem has been
somewhat alleviated by diverting a
physician from St. Thomas to St. Croix.
Difficulties caused by lack of field
nurses to service schools is being abated
by the Department of Education which
is hiring nursing personnel. Also, with
the advent of the comprehensive care
program for children and youth, ad-
ditional nursing services are being
made available. After a long vacancy,
the position of chief social worker was
filled.


Demonstrations were held in well
child conferences and group meeting
on proper nutrition, the lack of which
constitutes a major health problem.
Special emphasis was placed on
juvenile obesity, diabetes in pregnant
women and anemia, which is frequent
in Virgin Islands maternity patients.
The scope of the speech and hearing
clinics maintained by the division was
enlarged by the addition of a hearing
aid clinic. Potential hearing aid users
are evaluated, ear mod impressions
made and aids selected, fitted, and
maintained.
An instructor of pediatric nursing
from the University of California was
invited to the Virgin Islands to conduct
a workshop in pediatric nursing for a
2-week period in St. Thomas and 2
weeks in St. Croix. Changes resulting
from these workshops proved the in-
vestment to have been worthwhile.
Eminent pediatrician, Dr. William
Thurman, professor and chairman of
the University of Virginia and head
of the Children's Rehabilitation Center
in Charlottesville, was invited to con-
duct clinics in the Virgin Islands. He
saw children who may benefit from a
rehabilitation program, as offered in
most centers, and has offered the facili-
ties of Charlottesville's center to chil-
dren of the islands. Plans to accommo-
date eligible youngsters are in progress.
Major achievement of this division
was effected when it made applica-
tion-and complied with require-
ments-for funds available under Pub-
lic Law 89-97 for improvement of
maternal and child health services.
The division developed two projects-
the maternal and infant care project
and the children and youth project.
Both were approved by the Children's
Bureau of the U.S. Department of
Health, Education, and Welfare on
March 1, 1967, although only the lat-
ter could be funded. The project was






allotted $1 million in Federal funds
which amounts to 75 percent of the es-
timated cost of operations for the first
15 months, to June 30, 1968; the re-
maining 25 percent to be matched by
the local government.
The children and youth project will
provide coordinated and comprehen-
sive health care to approximately
20,000 Virgin islanders, plus aliens, up
to 21 years of age. It will involve a com-
bination of health promotion, dental
and medical care including casefind-
ings, preventive health, diagnostic and
treatment services, correction of de-
fects and followup. The services will be
designed to assure completeness and
continuity in the health supervision of
each child and will be provided either
directly or through coordination with
local health, education, and welfare
agencies. Project funds will make it
possible to employ much needed addi-
tional medical, dental and paramedical
personnel, and supporting staff to
supplement existing facilities, as well
as to develop new and adequately
equipped facilities including the use of
mobile units.
It is estimated that while actively
supervising the health of these chil-
dren and youth, the project can expect
to provide additional treatment to
4,000 or 5,000 of these individuals. It
will eventually be staffed with approxi-
mately 100 personnel, of which 25 will
constitute headquarters staff, the re-
maining 75 being almost equally di-
vided into district staffs for St. Thomas
and St. Croix. Rental space, to be ren-
ovated, has been acquired in St.
Thomas. In St. Croix land and build-
ing structures, donated to the local
government for health or education
purposes, has been assigned for this
project.
A manual of proposed program
plans for the project has ben written
and is now being revised. Steps con-


cerning administrational activities are
being taken, involving such matters as
recruitment, establishing personnel
records, payrolling, fiscal management,
and staff orientation.

Division of Mental Health

The division expanded services and
therapy techniques, particularly in re-
gard to children and youth. A compre-
hensive Diagnostic-Evaluation, Train-
ing, and Activity Center for mentally
retarded children was established, in
which 21 youngsters were admitted. A
special training program in which art
therapy plays a major role was de-
veloped. Achievements of this program
were particularly dramatic, especially
pertaining to children who had been
nonverbal or who had had limited
vocabularies.
Workshops were conducted and psy-
chological consultation services were
provided for VISTA volunteers as-
signed to work with preschool children.
Similar assistance was offered to teach-
ers of nongraded classes through a
series of bimonthly workshops. Mental
health personnel also participated in
training of public library staff in spe-
cial library services to slow learners
and mentally retarded children.
A psychologist was assigned to the
Insular Training School in St. Croix,
who conducted psychological evalua-
tions in addition to consultation. In
the absence of a psychiatrist for the
NP ward, clinical staff contributed con-
sultative services to the unit on a reg-
ular basis. The div;ion assigned to the
ministerial association, upon its request,
a psychologist to conduct weekly semi-
nars at which the churchmen present
"problem cases." The seminars also in-
clude lectures and discussions on psy-
chopathology.
A mental health education materials
specialist was added to the staff, who







composed five booklets and several
scripts for radio-TV programs on social
adjustment and mental health.
Against this background of special-
ized programs and activities, the divi-
sion continued to handle an ever-
increasing workload in clinical services,
to include social, psychological, and
psychiatric evaluation; individual psy-
chotherapy; group psychotherapy for
both inpatients and outpatients; fol-


lowup and supportive therapy for
alcoholics.
Arrangements were made with Mc-
Gill University for a psychiatrist to
spend 9 months in the Virgin Islands
collecting data for a report on "The
Epidemiology of Mental Illness in the
Virgin Islands." A preliminary chapter
on the incidence of schizophrenia in
the islands has already been submitted
to this division.


GENERAL COMPARATIVE STATISTICS OF HOSPITALS AND MEDICAL FA-
CILITIES OF THE U.S. VIRGIN ISLANDS, FISCAL YEARS 1961 AND 1967


N um ber of beds .........................................
N um ber of bassinets.....................................
Total admission .........................................
T otal days of care.......................................
Births in hospital........................................
Deaths in hospital.......................................
Stillbirths in hospital .....................................
Surgical cases ...........................................
Emergency room and outpatient visit. .................. ...
X -ray exam ination............. ........................
Laboratory examination. .................................
Operating expenses MCH/CC programs..................
Operating expenses children and youth project (for 18 months).
Planning for new health centers through bid documents......
Hospital staff:
Physicians. ......................................
Specialists (included above) ...........................
N u rses . . .. .. .. . ... .. . .. .. .. .. .. .. .. .. .. .
Practical nurses ......................................
O rderlies .........................................
D entists . ..........................................
Pharmacist ......................................
Public health physicians ..............................
Public health nurses ..................................


197
39
5, 984
56,506
1,138
198
51
519
46, 680
10,826
78, 322
$276, 877
. . . . . .
. . . . . .


231
41
10,014
77,457
2,087
313
55
1,722
87, 619
26,822
146, 163
$660, 897
$1,500,000
$2, 068, 649


Bureau of Business Management

Major improvement has been evi-
dent in the accounting procedures this
year. With the assistance of the Depart-
ment of Finance, it was possible to
maintain subsidiary ledgers for the sev-
eral programs of community health
operating with Federal grants and local
matching funds. The use of program
codes for all accounts, other than the
health revolving fund, was instituted on
July 1, 1966.


During the coming year, it is to be
expected that efforts at further im-
provement will continue. However, the
need for additional accounting staff is
critical. Recruitment is becoming in-
creasing difficult. Because of inade-
quate space the staff in St. Thomas is
located in widely separated offices. It
is hoped that this situation will be
erased when new quarters for the
the MCH&CC staff becomes available.
During the year, some improvement
in the procurement of supplies and






equipment was evidenced. This was
due to the increased use of term con-
tracts, the acquisition of additional
oxygen tanks, closer check on drugs
and medicines with expiration dates,
and use of GSA contracts. Because of
the continuous problem of getting
scheduled deliveries, there is an increas-
ing need for adequate storage facilities
on both islands, 5,000 square feet in
St. Thomas and at least 4,000 square
feet in St. Croix. Present demands of
the hospitals can justify the employ-
ment of a procurement clerk at each
hospital to provide the administrators
the assistance needed in processing re-
quisitions, receiving reports, and all
procurement documents.
A personnel technician for St. Croix
was added to the staff. Along with
the personnel technician on St.
Thomas, efforts were initiated to co-
ordinate all personnel matters in each
district through the personnel tech-
nicians. The effective development of
this program in St. Thomas is hindered
by the distant location of the activity
away from the records, files, and
activity of the Bureau of Business
Management. Two major efforts
ahead of this activity are the develop-
ment of a manual of procedures for
the information and guidance of di-
vision heads, bureau directors, and
employees generally, and the establish-
ment and maintenance of a perpetual
inventory of employees. This latter
project must be programed for elec-
tronic data processing. The need for
prompt and accurate management
information is critical. This need can-
not be met with manual tabulation of
the employees of the department in-
cluding, in addition to the hospitals,
community health and administrative
staff, the employees of federally sup-
ported projects such as Aedes aegypti
control, the children and youth project


and the Neighborhood Youth Corps
program.
The provision of operating quarters
for the motor pool on St. Croix with a
hydraulic hoist became a reality during
the year. The supervision of this activ-
ity has been greatly improved and some
former problems and difficulties have
been resolved. Eight new vehicles were
acquired during the year. Two vehicles
were replaced on St. John. The
absence of maintenance service on St.
John requires continued service of the
vehicles by the mechanics from St.
Thomas.


Boards and Commissions

The Board of Medical Examiners
met four times during the fiscal year.
Nine candidates took local State board
examinations. Five passed and licenses
were issued accordingly, and four
failed. All funds presently collected
from examinations are deposited in the
general treasury. This amounts to sev-
eral thousands of dollars annually,
none of which can be used for dis-
charging the responsibilities of the
board. It is evident that there is need
for direct appropriations enabling the
board to transact its business without
exacting personal sacrifices from mem-
bers and secretarial help.
The Board of Nurses Registration
and Nursing Education, consisting of
five members, conducted four meet-
ings. It established minimum require-
ments for the associate degree nursing
program; surveyed nursing programs
in both major islands and revised ap-
plication blanks and temporary per-
mits. Two licensing examinations were
given; 55 licenses were issued to regis-
tered nurses, 19 to practical nurses.
Ninety-five applications were proc-
essed. There were 197 renewal regis-
trations; 162 in St. Thomas, 105 in






St. Croix, and 52 out of State. Fees for
licenses and renewals totaled $1,385.
The Board of Dental Examiners
held four meetings. It agreed to recom-
mend an addition to its bylaws and to
waive the written portion of the board
examination to any applicant who had
successfully received national board
certification during the current 2-year
period in which he was seeking admis-
sion to the board in the Virgin Islands.
It entered into an agreement with the
Council of the National Board of
Dental Examiners to supply the exam-
inations and correct them. Services
involving applicants performed in con-
nection with the operations of the
board totaled 89.
The Board of Pharmacy met six
times. Fitness testing examinations
were given to nine candidates, three
of whom passed and were subsequently
registered. Results on the balance have


not yet been determined. In accord-
ance with provisions of the Virgin
Islands Code, temporary licenses were
issued to 10 pharmacists formerly from
the mainland and Puerto Rico. Eight
candidates for the license of assistant
pharmacist were examined and passed,
and issued licenses. Two candidates
upon application were issued licenses
as interns. The board members in-
spected personnel, equipment, and
overall conditions of four new drug-
stores, one in St. Croix, the balance in
St. Thomas. Discrepancies were noted
and brought to the attention of the
proprietors for immediate correction.
The Pharmacy Service for region III
of the U.S. Department of Health,
Education, and Welfare commended
the Virgin Islands Board of Pharmacy
for its past actions which have brought
high-quality legislation and pharma-
ceutical practices to the islands.











Department of Social Welfare


Personnel: 296


General
In fiscal year 1967, the department
moved toward completion of a number
of projects already underway, and con-
tinued its efforts to improve existing
services and initiate new programs to
meet changing and growing needs
throughout the islands.
Construction of new cottages at the
insular training schools for boys and
girls in St. Croix was completed, and
the new buildings were dedicated on
May 10, 1967. This addition includes
a complete living and training complex
for boys 16-21 years of age and similar
facilities for girls.
The first modern day-care center was
completed on the Islands of St. John
in November. It is staffed and operated
by the department and is providing
care for 35 children.
A new home for the aged to replace
the old Queen Louise Home on St.
Thomas is under construction, with
completion expected late in 1967. This
facility will house 60 persons, twice
the number that can be accommodated
in the present home. A complete land-
scaping project is underway at the Her-
bert H. Grigg Home for the Aged in
St. Croix.
Public assistance grants were in-
creased for most recipients during the
year. Certification of all eligible persons
under title XIX (medicaid) has been


Operating Appropriation: $2,222,445

completed, and the program which was
begun in July 1966 is now fully
operative.
The department's programs of sum-
mer employment for Virgin Islands stu-
dents interested in careers in social
work, and scholarship grants for gradu-
ate training in social work for regular
employees have aided greatly in recruit-
ment and retention of casework and
supervisory staff.
Special efforts have been continued
by the administration, the legislature,
and the department to secure removal
of the present unfavorable matching
formula and ceiling limitation for Fed-
eral participation in the Virgin Islands
public assistance program.

Division of Family Services
During the past year, major empha-
sis has been given to: (1) the imple-
mentation of title XIX (medicaid);
(2) the simplification of methods and
procedures affecting determination of
need and assessment of income and re-
sources; (3) improving the level of
public assistance grants; (4) develop-
ing a project on homemaker and home
aide services, a greatly needed service
in the community; and (5) revision of
the Public Assistance Manual.
New rates for public assistance
grants were put into effect as of
March 1, 1967. Grant increases re-






suited for approximately 43 percent of
persons receiving assistance. Cases re-
ceiving the greatest grant increase were
in the Aid to Families with Dependent
Children (AFDC) category. The aver-


age monthly increase was $31.51 in
such cases. Reinterpretation of existing
policies has resulted in a more liberal
determination of eligibility for assist-
ance in all cases.








CASELOAD DISTRIBUTION BY DISTRICTS


Category



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

Total Federal ..........
General assistance ............

Grand total............


Caseload 7-1-66

St. Croix St. Thomas-
John


Added during year

St. Croix St. Thomas-
John


Closed during year

St. Croix St. Thomas-
John


245 170


204
5
20
197

671
103

774


105
5
25
219

524
83

607


95
26

121


63
0
7
(1)

97
19

116


88
37

125


Caseload 6-30-67

St. Croix St. Thomas-
John


23 222


70 481
32 92

102 573


332
70

402


1 Medical assistance (MAA) to the aged was omitted in the report for fiscal year 1967 since the entire program was absorbed by the establish-
ment of title XIX-medicaid.







COMPARISON OF CASELOADS AND EXPENDITURES


Number of
Caseload persons added Expenditures
Category
1966 1967 1966 1967 1966 1967

Old age assistance..... 502 461 502 461 $212,887.30 $197,374. 25
Aid to families with
dependent children.. 414 441 1,263 1,765 286, 399.67 384, 171.25
Aid to the blind....... 11 10 11 10 4,508.25 4,295.25
Aid to the disabled.... 56 59 56 59 24, 228. 50 22, 914. 25
General assistance .... 258 231 258 231 92, 554. 66 83, 969. 55

Total........... 1,241 1,202 2,090 2,526 $620,578.38 $692,724.55




COMPARISON OF CASELOADS, 1963-67

Category June June June June June
1963 1964 1965 1966 1967

Old age assistance ...................... 491 461 450 423 400
Aid to families with dependent children .... 1,032 1, 156 1,039 1,263 1,441
Aid to the blind ......................... 15 15 10 10 10
Aid to the disabled ...................... 92 90 55 47 50
Medical assistance ................. ..... 480 496 469 402 (1)

Total Federal ................... 2, 110 2,218 2,023 2, 145 1,901
General assistance. ................... ... 160 163 202 189 162

Grand total ....................... 2, 270 2, 381 2,225 2, 334 2,063

1 Medical assistance (MAA) to the aged was omitted in the report for fiscal year 1967
since the entire program was absorbed by the establishment of title XIX-medicaid.








NUMBER OF RECIPIENTS AND AVERAGE PAYMENT BY ISLAND-MAY 1967

St. Thomas St. John St. Croix Total

Category No. of Average No. of Average No. of Average No. of Average
recipients payment to recipients payment to recipients payment to recipients payment to
recipient recipient recipient recipient


Old age assistance ............ 150 $36. 97 23 $34. 31 229 $39. 62 402 $38. 32
Aid to families with dependent
children................... 498 27.87 39 20.57 884 28.81 1,421 28.26
Aid to the blind.............. 6 30.29 0 0.00 4 42.00 10 34.98
Aid to the disabled............ 22 38. 31 2 39. 75 25 40. 27 49 39. 59

Total................. 676 30.27 64 26.11 1,142 31.28 1,882 30.74
General assistance ............ 64 39. 08 6 38. 29 85 39. 50 155 39. 26

Grand total............ 740 31.03 70 27. 14 1,227 31.84 2,037 31.39







In all categories of public assistance,
227 cases were closed during the year
and 237 opened. The number of per-
sons aided during the year increased by
436, and expenditures increased by
$72,146.17 to a total of $692,724.55,
most of this in the aid to families with
dependent children category.

Division of Child Welfare

Child welfare services are provided
to children in their own homes, in fos-
ter homes, adoptive homes and institu-
tions. During the past year, services


have been expanded and improved in
all areas, including increased day care
facilities; approval of family day care
homes; cooperative services to the
juvenile and domestic relations courts,
and improved and enlarged facilities
at the insular training schools for boys
and girls. Additions to the supervisory
staff have resulted in a higher standard
of casework services.
Services were provided to 1,741
children during the year (St. Croix,
896; St. Thomas, 845) as compared
with 1,492 last year and 1,419 the pre-
vious year.


CASELOAD DISTRIBUTION BY DISTRICT OFFICE


St. Croix St. Thomas Total

Children receiving assistance July 1, 1966........... 419 341 760
Children accepted for service during year........... 228 303 531
Children discharged during year .................. -288 -248 -536
Children receiving service June 30, 1967............ 359 396 755
Total number of children receiving service
during year ............................ 896 845 1,741


Foster Family Care

Approximately 221 children were
helped through foster family care. To
improve the quality of services, monthly
board rates were increased $10 per
month per child for private foster
homes; $7 per month for group care;
and $17 per month for nursery care.
Group and nursery care are provided
by the Queen Louise Home for Chil-
dren in St. Croix, operated by the
Board of Lutheran Missions.


Institutional Care

Services to children at the Youth
Care Center have been strengthened
through the cooperative efforts of the
district office casework staff and
VISTA volunteers. The latter group
provided recreation, special reading


classes, arts and crafts, and cooking
classes. Temporary detention and resi-
dential care was provided for 97
children.
Insular Training Schools.-Two ad-
ditional cottages, one for 26 girls 10-16
years old, and one for 26 boys 16-21
years old, were dedicated in May. The
Neighborhood Youth Corps and the
Job Corps will assist the older boys
with vocational training. Care was pro-
vided for 65 children (50 boys, 15
girls).
Day-Care Services.-The depart-
ment is subsidizing four day-care cen-
ters (St. Thomas 3, St. Croix 1) and
two family day-care homes (St.
Thomas). A newly constructed govern-
ment-operated center in St. John was
opened in November. Services were
provided for a total of 175 children
(St. Croix 18, St. Thomas 157). A






formal orientation and in-service train-
ing program for day care personnel
proved an asset to the program.
Health, educational, and social serv-
ices were expanded and improved.
Virgin Islands Commission on
Youth.-At the 1967 first special ses-
sion of the legislature, the title and
membership of the commission were
changed, and its functions and duties
redefined. The commission now con-
sists of 17 members. Its major project
during the year was the joint Puerto
Rico-Virgin Islands Youth Commis-
sions Conference held in St. Croix on
May 18 and 19. Youth participation
highlighted the program.


Division of Aging and
Special Programs
Approximately 5,000 Virgin Island-
ers are 65 years of age or older. They
represent nearly 10 percent of the total
population. During the past year, the
division has placed major emphasis on
enriching the daily lives of those older
persons receiving services through the
department. Social services have been
expanded and, through the addition
of a group worker to the staff, an ex-
panded recreational program has been
undertaken. Civic organizations and
local business concerns have partici-
pated in a number of community proj-
ects for the aged initiated by this
division.


Homes for the Aged.-St. Thomas-
the Queen Louise home, with a capac-
ity of 29, was filled during the entire
year. The new Queen Louise Home,
with a capacity of 60 beds, is nearing
completion and occupancy is expected
by December 1967. The Corneiro
Home, a shelter-care home, provided
housing for 29 residents. A program
of medical and personal care, and so-
cial and recreational activities, was
organized for residents of this facility.
Considerable improvements were made
to buildings and grounds.
St. Croix-Herbert Grigg Home.-
This multifunction institution (home
for the aged, nursing home, and home
for crippled and disabled) provided
care for 123 residents. In-service train-
ing for all staff and employment of a
full-time physician have greatly up-
graded services. Exterior and interior'
painting of all buildings was com-
pleted, and an extensive landscaping
program was undertaken.
Aldershville.-This home, consisting
of 31 units, provided shelter care for
29 persons. Extensive repairs were
made to each unit.

Special Programs

Surplus Foods Program.-This pro-
gram is operated in accordance with
the agreement entered into with the
U.S. Department of Agriculture. The
division was again highly commended


CASELOAD DISTRIBUTION IN HOMES FOR AGED

Queen Corneiro Herbert
Louise Home Grigg Aldershville
Home Home

Residents 7/1/66 ................ 25 27 119 27
Added during year .............. 13 3 33 5
Closed during year.............. 9 3 28 5
Residents 6/30/67 ............... 29 27 124 27
Total receiving services during year. 38 30 152 32






by the regional office in Atlanta, Ga.,
for its operation during the year.
The nutritional value and the uses
of surplus commodities were brought
into focus by a booklet, "A Guide to
Nutrition Education for Recipients of
Government Donated Commodities."
This booklet was prepared by the
staff's nutritionist and distributed to
all recipients of surplus commodities.
The program cooperated with the
division of family services, title V pro-
gram and the Department of Edu-
cation in giving demonstrations on the
preparation and use of federally
donated foods.
Distribution of commodities to in-
stitutions and needy families was made
from nine centers (St. Croix 6, St.
Thomas 1, and St. John 2). At the end
of the fiscal year the caseload was
1,286 families which represent 3,914
persons.
The following chart shows the


amount of commodities distributed
during 1966-67:
Amount
distributed
Commodities by pound
B eef........................... 2,44 1
Beans, dry. .................... 35, 443
Butter, creamery ............... 4, 908
Butter, peanut .................. 24, 440
C heese ........................ 270
Flour, wheat. ................. 82, 685
M argarine..................... 48,438
Meal, corn. ............... . 73, 670
Meat, chopped ................. 62, 289
Milk, nonfat dried.............. 139, 581
O ats, rolled. ................... 16, 128
Juice, orange. .................. 2, 640
Peas, split. ................... .. 19, 274
Raisins......................... 28, 847
Shortening/lard............... 60, 744
W heat, rolled................... 33, 138
Rice. .......................... 144, 684
Cancer Care.-Virgin Islands patients
continue to receive services at the
Dr. I. Gonzalez Martinez Oncologic
Hospital.
The following table shows the
activities of the cancer program during
the year:








Beginning of year New cases Hospitalized Outpatient visits 1 Discharged/died End of year
to clinic

Male Female Male Female Male Female Male Female Male Female Male Female

St. Thomas...... 3 24 2 4 6 5 13 11 1 1 4 27
St. Croix........ 7 17 2 6 8 14 23 30 13 3 6 20






Burials.-Burial services for indi-
gents continued to be provided by con-
tract with funeral homes in St. Thomas
and St. Croix. There were 71 requests
and 51 were approved for service (St.
Croix, 36; St. Thomas, 15).
Services to Mentally Ill.-The divi-
sion continues to act as liaison for Vir-
gin Islands patients at St. Elizabeths
Hospital in Washington, D.C., and
their relatives in the Virgin Islands.
Five patients returned home during the
year.
Services to the Blind.-Talking
books and machines are being used by
the blind at the various institutions and
in their homes.
Sewing Projects.-With the em-
ployment of a supervisor for the St.
John district office, the project is pro-
ducing greatly improved garments for
which there has been an increasing
demand. Numerous articles of clothing


were made, especially for the homes
for the aged. School uniforms were
made for children of indigent families
known to the Division of Child Wel-
fare and Family Services.
During the coming year, the depart-
ment expects to activate fully staffed
juvenile court and probation units
within the Division of Child Welfare.
Further expansion of day care centers
is expected. The Division of Family
Services and Child Welfare will accel-
erate planning for early implementa-
tion of the homemaker program. Plans
are already underway to expand and
strengthen the department's personnel
services and research and statistics op-
erations. Appointment of members to
the Advisory Commission on Aging was
recently completed, and every effort
will be made toward establishment of
new programs for the aged under the
Older Americans Act.











Department of Commerce


Personnel: 111


The Department of Commerce,
through the operation of its principal
divisions of trade and industry, marine
activities, and the visitors bureau, con-
tinued to serve as the government's
principal tool for the fostering of eco-
nomic development.
Also contributing to the total picture
of the islands' rising prosperity are a
number of important operations within
the Department of Commerce which
have not as yet reached division pro-
portions. These include the Virgin
Islands rum council, on-islands public
relations, fishing and water sports pro-
motion, the beautification council, the
industrial incentive board, and three
off-island information centers.
Tourist expenditures stood at $75,-
035,860 for the year, as compared with
$59,456,245 in fiscal year 1966. Bank-
ing activity maintained a steady
growth, and external trade set new rec-
ords as imports increased 21 percent
over the previous year.

Visitors Bureau

For the third consecutive year, more
than a half a million visitors came to
the Virgin Islands, with the number of
cruise ships reaching another record
high. A total of 296 cruise ships called
at St. Thomas, with 28 visiting St.
Croix. Total cruise ship passengers for


Operating Appropriation: $1,513,212

the year numbered 133,357, as com-
pared with 117,659 in fiscal year 1966.
Due to popularity and demand, the
islands' primary guide to the trade,
the "Travel Agent's Handbook," was
revised and updated, and continues to
be the most informative publication of
this nature.
Inquiries at both the New York and
Washington offices of the visitors bu-
reau were ahead of the previous year.
In New York, mail, telephone, and
visitor inquiries totaled 81,053 for the
year, compared with 75,640 inquiries
during the previous fiscal year. Individ-
ual, agent, and bulk literature distribu-
tion totaled 341,587 pieces, compared
to 199,160 for fiscal 1966.
Diversified special projects involv-
ing members of the Washington and
New York staffs included preparations
for the annual cruise ship company
solicitations and the staffing of the
Virgin Islands mobile travel show.
The department's San Juan office
during the year gave priority to serving
the most active hotels and travel agents
in that city from whom much of the
traffic into the Islands is generated.
This office has been represented at all
conventions of 250 persons or more
meeting in the San Juan area, and
servicing 16 such gatherings that saw a
total of 13,385 persons in attendance.
The following tables reflect the
growth of tourism over the past 5
years:







TOTAL TOURIST EXPENDITURES


1962-63 ...................
1963-64 ................. .
1964-65 ...................
1965-66. ..................
1966-67 ..................


AIR TRAFFIC
1962-63. ..................
1963-64...................
1964-65 ...................
1965-66. ..................
1966-67...................


$41,070,000
48, 158, 074
54,014, 852
59, 456, 245
75, 035, 860


215, 809
285,610
356, 371
436, 775
516, 295


CRUISE SHIP TRAFFIC

Number Passengers
of ships


1962-63 ........ 169 67,573
1963-64 ........ 261 1 110,625
1964-65 ........ 238 2 109,341
1965-66 ........ 255 3 117,659
1966-67 ........ 296 133,357

1 Includes 31 ships which also visited St.
Croix.
2 Includes 16 ships which also visited St.
Croix.
3 Includes 28 ships which also visited St.
Croix.
4 Includes 28 ships which also visited St.
Croix.


Advertising Activities

During the year a "special island"
theme, selling all three Virgin Islands,
was developed for consumer and trade
press advertising. National magazines
such as the New York Times Sunday
Magazine, Newsweek, Time, Esquire,
and Ebony, were utilized for both
tourism and rum advertising. In addi-
tion, newspapers in 15 key market areas
were used for advertising purposes.
Special promotions conceived by the
islands' advertising agency during the
year included a special Virgin Islands
dinner-dance at the American Society
of Travel Agents convention in Seattle,
Wash., and the creation, design, and
execution of the Virgin Islands mobile


travel show currently touring the
United States. Between April 24 and
December 6, 1967, the mobile travel
show will have visited 22 major U.S.
cities, as well as Toronto, Canada.
A special 40-page insert was run in
Travel Weekly Magazine promoting
the islands as vacation sites. An eight-
page section was also published in the
Boston Globe newspaper, and special
sections run in Washington, Miami,
and New York dailies.
A separate advertising campaign was
also promoted in various fishing, skin-
diving, and yachting magazines. A skin-
diving advertisement, for example, ac-
counted for 2,000 reader inquiries.
The national advertising campaign
for the coming fiscal year will be high-
lighted by the use of television for the
first time in the New York and Wash-
ington markets.


Office of Fishing and
Water Sports

The year saw continued expansion
of services and facilities accommodat-
ing deep sea fishing, scubadiving, and
boating enthusiasts. Such services
catered to more people than during any
previous year. The office aided a large
number of writers and photographers,
with the October 1966 issue of Sports
Afield devoting a major article to Vir-
gin Islands fishing. The department
ordered and utilizes as distribution
literature 5,000 reprints of this issue,
as well as reprints of a popular article
on St. Croix diving that appeared in
the March 1967 issue of Skin Diver.


Marine Division

An important development within
the marine division was the establish-
ment of a cadet pilot training program.
The harbor patrol program was







stepped up and there was closer super-
vision of all government-owned piers,
docks and bulkheads in the islands.
The division also instituted strict en-
forcement of the antilitter law as it re-
lates to these marine installations.
With a $300,000 appropriation from
the legislature, repairs and improve-
ments were affected at the Frederiksted
deepwater pier. Also during the year a
260-foot section was added to the
King's Wharf marginal wharf in
Christiansted.
An increased interest in boating in
the Virgin Islands was reflected in the
growing number of motorboat registra-
tions. An additional 189 motorboats
were registered in St. Thomas during
the year, bringing the total number to
886. On St. Croix this number in-
creased from 771 in fiscal year 1966
to 838 for fiscal 1967.
Total gross income from all marine
activities in the islands increased
from $427,456.98 in fiscal 1966 to
$467,421.52 in fiscal year 1967.


Harbor Statistics


St. Thomas-St. John:
Number of commercial
arrivals .............. .
Number of cruise ships....
Tourist passengers on cruise
ships. .................
Gross tonnage of commer-
cial arrivals ............
Number of motor boats
registered. ............
Total motorboat registra-
tion ..................
Navy vessel arrivals.......
St. Croix:
Number of commercial
arrivals ...............
Number of cruise ships....
Tourist passengers on cruise
ships ..................
Gross tonnage of commer-
cial arrivals ...........
Number of motorboats
registered ..............
Total motorboat registra-
tion ..................
Navy vessel arrivals
(Frederiksted). .........


2, 599
268
125, 058

6,843,414
189
866
115


1,499
20

7, 934
1,836,680
67
438
32


REVENUES
St. Thomas-St. John:
Wharfage fees............
Tonnage dues ............
Pilotage fees.............
M ooring fees.............
Motorboat registration fees.

Total gross income......

St. Croix:
W harfage fees............
Tonnage dues............
Pilotage fees.............
M ooring fees.............
Motorboat registration fees.
Total gross income......


$56, 704. 30
131,878. 17
60, 397. 50
10, 753. 49
4, 330.00

264, 063. 46

126, 860. 61
34,671.95
24, 043. 80
16, 856. 70
925.00
203, 358.06


Rum Council

The mainland rum market in
general continued in a trend that will
assure a doubling of sales every 10
years. The total apparent consump-
tion of rum in the United States rose
to 2,709,049 cases in calander year
1966, or a gain of 9.4 percent over the
2,476,400 cases in 1965. The current
prospect is that in 1968 total rum
volume will rise above the 3 million
case mark. On this basis, rum sales for
the decade 1958-68 will show an
increase of 13.7 percent. Rum in-
creased its share of the entire liquor
market from 2.2 percent in 1965 to 2.3
in 1966, providing the Virgin Islands
an excellent product for promotion.
The Virgin Islands rum industry in-
creased from 1,225,865 proof-gallons
of rum shipped to the United States
in fiscal year 1966 to 1,296,040 in
fiscal year 1967, or a 5-percent rise in
such exports.
During 11 months of fiscal 1967, the
collections of excise taxes on importa-
tions of rum into the United States
from the Virgin Islands exceeded the
total of fiscal 1966 by $54,001. Esti-
mating the excise tax return for the
last month of the fiscal year at a conser-
vative $850,000, the returns to the Vir-
gin Islands government should be over
$12 million for fiscal 1967.






Virgin Islands Beautification Council
The council coordinated with the
Department of Public Works and the
Department of Public Safety in tagging
and removing abandoned vehicles
throughout the islands on a continuing
basis. New committees were established
within the council for such projects
as plant propagation, neighborhood
beautification, community action, and
educational efforts on behalf of
beautification.
The council retained a supervising
foreman and consultant landscaper
who will supervise and develop a plant
nursery for the islands' beautification
programs. The landscaper will oversee
the designs to enhance public buildings
and town areas for all islands. The
council instituted an intensive clean-
up-paint-up campaign and interested
the College of the Virgin Islands in
instituting a course in horticulture.

Division of Trade and Industry
As over the past 5 years, such
economic indicators as tourism, manu-
facturing, power generation, bank
deposits, and government revenues,
reflected substantial gains during the
year.
New records were attained in ex-
ternal trade activity. Combined im-
ports from the mainland and foreign
countries totaled $137,720,755, repre-
senting an increase of 21.14 percent
over the previous year. Total exports
were valued at $56,144,017, a 52.6-per-
cent increase over fiscal year 1966.
With the opening of two additional
banks during the year, a total of 17
branches were operative in the islands.
Bank deposits totaled over $100 mil-
lion, representing a figure 30 percent
higher than the 1966 yearend figure.
The division participated with
Puerto Rico in a trade mission to
Curacao in June of 1967, and in the
course of the year issued two publica-


tions-a 1965 comprehensive business
directory, and a revised "Facts About
Doing Business in the U.S. Virgin
Islands."

Industrial Incentive Board
At the end of fiscal 1967, there were
80 tax-exempt operations functioning
in the islands, of which 38 represented
hotels, guest houses, or motels, and 42
represented small businesses. These op-
erations employed an estimated 3,227
persons with an annual combined pay-
roll of $11 million.
Subsidy payments to tax-exempt
businesses increased during the year.
Other increases registered were in cus-
tom duty payments which rose
$126,753.96 over the previous year;
dividend claims by $5,000; and income
tax refunds by $251,607.40. Subsidy re-
bates were extended to all tax-exempt
manufacturing businesses on excise
taxes paid on raw materials in the
amount of $696,173.04.
The board held eight public hearings
and eight executive sessions during the
year. Forty-seven applications were
heard, with 11 firms being recom-
mended for tax exemption. Four firms
were granted conditional documents;
three granted extensions of conditional
documents; and two granted extensions
of permanent certificates. Three certi-
ficates were transferred; six applica-
tions held for further study; and eight
firms denied tax exemption. Twenty
firms were granted permission to ex-
ceed alien ceilings, and one certificate
was amended.
A current compilation of all tax
exempt firms, indicating the period of
exemption, and each specific subsidy
and exemptions granted to each in-
dividual firm, was undertaken and will
be distributed to all agencies directly
connected with this program. This will
aid in establishing a more uniformly
coordinated handling of all grants.











Department of Agriculture


Personnel: 234


This is the second year that the
Department of Agriculture has been
separated from the Department of
Labor. The development of a sound
and constructive relationship between
the farmers and their government may
be considered to be among the most
significant accomplishments of this
department during the past fiscal year.
This confidence has been manifested
through the development of custom-
ized service programs made available
to the farmers and the communities.

Agriculture
Recognizing the need for more ef-
fective agricultural practices in the
islands, the administration has co-
operated by appropriating funds to
implement these practices. Accepting
the challenge of a diminishing agri-
cultural industry, the Department of
Agriculture has been strengthened by
increases in the following areas: Fa-
cilities for transporting heavy equip-
ment, land preparation machinery,
machinery for maintenance programs,
forage harvesting and transporting
machinery, and highly qualified
personnel to conduct the different
services.
During the second half of this fiscal
year, the islands suffered from another
severe drought. The administration
and the Department of Agriculture


Operating Appropriation: $1,486,126

cooperated to meet the emergency.
Using funds appropriated for emer-
gency drought relief, 347 tons of special
formula cattle feed were distributed to
446 full- or part-time farmers. This
feed was made available to them at 50
percent of the market price. In addi-
tion, the forage harvesting machinery
of the department protected against
economic disaster to the livestock
industry of the island. With their
pastures almost completely ruined by
the drought, the livestock farmers were
able to secure loads of feed from trail-
ers on a daily basis. No animal deaths
during this period can be attributed to
starvation.
The food production program
assisted farmers and other citizens en-
gaged in the production of food crops
and animals. Through this program,
almost 100,000 pounds of vegetables
were produced and marketed for eight
farmers of St. Croix. They were as-
sisted by the agriculture department
in land preparation, mechanical plant-
ing, spraying for pests, harvesting and
marketing. As a result of this program,
many market outlets are now available
for more of St. Croix's produce.
The land preparation service pro-
vides one of the most important serv-
ices available to the farming
population. The inventory of farming
equipment has been increased, but
additional units and operators are still







needed for land preparation. During
this period 103 full- or part-time farm-
ers on over 300 acres received this
service. The fee charged is about one-
third of the commercial price, and
without the service many farmers
would be forced out of the farming
business.
A service initiated during this fiscal
year provides for the extermination of
the Nasutitermes costalis, a termite
commonly known as the woodlice. It
will save thousands of trees from death,
restore their beauty, or bring them back
into production. At the close of this
reporting period, 1,691 nests had been
exterminated.


St. Croix Abattoir
A total of 3,704 animals was slaugh-
tered at the St. Croix abattoir. This
figure represents an increase of 318
animals over last year's operation. Sig-
nificant repairs to this plant were
accomplished by the maintenance per-
sonnel of this department.

Soil and Water Conservation
Service
The following soil and water con-
servation practices were accomplished
under the unified agricultural conser-
vation program for the Virgin
Islands:


Brush control....................................... ......... ....... 1,600 acres.
Chiseling and subsoiling............................................... 356 acres.
Farm ponds (dams).......................... ........................ 5,500,000
gallons.
Pipelines for water (livestock and irrigation) ............................. 9,605 feet.
Land clearing ..................................................... 704 acres.
Pond or dam sealing or lining ........................ .................. 3 each.
Rock barriers...................................................... 504 feet.
Recreation area land grading and shaping .............................. 235 acres.
Troughs or tanks .... ............................................... 7 each.
W ells (livestock and irrigation) ......................................... 14 each.


Beautification
The construction of a new plant
propagation shed was begun near the
end of this fiscal year. The propagation
center will accommodate the recently
developed forestry program and will
be used for future highway beautifica-
tion. Extensive propagation of native
fruit trees will begin in the near future.

Division of Recreation,
Parks and Beaches
Positive results were noted during
the year in the division's efforts to de-
velop wide-range programs in recrea-
tion that would reach all levels in the
communities. Athletic standards were
upgraded, and the Virgin Islands
athlete is now being trained to com-
pete in international sports competi-
tion.


During the year, extensive renova-
tions were made to the Lionel Roberts
Stadium in St. Thomas and the Paul
E. Joseph Stadium in Frederiksted, St.
Croix. These two facilities now meet
certification standards of the American
Baseball League. As a result, two ma-
jor league teams played exhibition
games at both stadiums during semi-
centennial observances in March.
Following surveys undertaken by the
Puerto Rico Park Commission, other
recreational sites in the islands were
renovated and improved. The Caren-
age ball park in St. Thomas was lighted
for night recreational activities, and
major improvements effected at the
Smith Bay and Nadir sites on that
island.
Recreational centers throughout the
islands expanded their services during
the year, providing programs in arts






and crafts, dancing, table games, and
other indoor recreational activities.
Over 100 youths participated in the
summer daycamp program, and 300 in
the Little League and Pony League
baseball games. Several hundred adults
participated in the men and women
softball leagues.
In the area of beach development,
the Stony Ground Coral Resort in the
Frederiksted district of St. Croix was
put into operation during the year. The
accommodations at this resort, which
include a large outdoor swimming
pool, are used extensively by all age
groups.
The requirements of the Virgin Is-
lands semicentennial observance stim-
ulated the remodeling and upgrading
of all parks. New bandstands were con-


structed in the parks of Charlotte
Amalie and Frederiksted. The latter
facility was further improved with the
addition of new concrete walks and
benches.
In the period covered by this report,
the Virgin Islands State plan for out-
door recreation was completed and
thereafter received Federal approval.
Federal funds available under this pro-
gram will be matched with local ap-
propriations for the further develop-
ment of recreational facilities and areas
throughout the islands.
Preliminary plans place emphasis on
the development of the Altona Lagoon
Beach in St. Croix and the John Brew-
ers and Mandahl Beaches on St.
Thomas.











Department of Labor


Personnel: 58


In its operations during the first full
fiscal year of its existence, the depart-
ment, created as a separate agency Oc-
tober 1, 1965, concentrated on organi-
zation. There has been a consistent
effort to upgrade the professional qual-
ity and performance of the staff in
order to implement the government's
policy of promoting the welfare and
employment opportunities of workers.
Techniques have been refined to main-
tain stable labor-management relations
and to insure a climate in which the
economy can move forward with vigor.
The department encompasses six di-
visions with activities ranging from
veterans affairs to unfair labor prac-
tices. Such a diversified program pre-
sents obligations which require a highly
trained staff.
To recruit such a staff and to assure
prudent progress, the department
turned to the New York State School of
Industrial and Labor Relations at Cor-
nell University for the type of profes-
sional guidance which only such an
institution could provide. As a first
step, the school assigned the task to the
New York City Center. Conferences
have been held with qualified authori-
ties. A preliminary survey already has
been made, the end product of which
will be the presentation of a master
blueprint for the department.
In the meantime, in-service training
programs are being planned and con-
ducted for the staff.


Operating Appropriation: $421,660.89

The department has been success-
ful in reducing work stoppages which
last year deprived the economy of a
total of 22,000 man-hours. By contrast,
there was only one strike this year:
that involving porters at the Harry S.
Truman Airport in St. Thomas. After
only 2 days and the loss of only 160
man-hours, the strike was resolved fol-
lowing the intervention of the labor
department.

Division of Labor

Expansion of industry and increased
union activity has brought about
sharpened sophistication resulting in
more exacting demands on the depart-
ment in all phases of labor-manage-
ment relations under the Fair Labor
Standards Act (ch. 3, title 24, Virgin
Island Code). A significant improve-
ment in payroll inspections has been
the development and refinement of
statistics which now permit the depart-
ment to assess more effectively the
value of payroll inspection as one ba-
rometer of the economic progress of
the Virgin Islands.
During fiscal 1966-67, 1,636 payroll
inspections were conducted in 836
business enterprises, showing a total of
10,721 employees. These inspections
revealed that $11,471.83 was due em-
ployees who were underpaid during
this period (an increase of $3,513.27
or 44.12 percent over fiscal 1965-66).






Three hundred and twenty-nine com-
plaints were filed by individual em-
ployees, resulting in the payment by
employers of $13,642.19 in back wages.

Representation Cases

During 1966-67, the department is-
sued nine certifications to the Virgin
Islands Labor Union, AFL-CIO as
bargaining representative of employees.

Unfair Labor Practice Cases

Only six unfair labor practice
charges were filed with the department
during the year. Fewer cases were filed
because the department resolved
many problems in their initial stages.
Where charges were filed, every ef-
fort was made to effect a settlement
through mediation. Another factor in
the reduced number of charges has
been the growing awareness that more
is to be gained by peaceful resolution
than by work stoppages.
The number of complaints filed un-
der local residence preference statutes
also was lower than in fiscal 1965-66.
This, again, was due in large measure
to the efforts of the department to set-
tle the question of alien employment
where occupationally qualified resi-
dents were available. In fiscal 1966-67,
the department issued 10,600 alien
certifications. Under local statute, the
department's responsibility is to deter-
mine and certify the extent to which
the alien is necessary to the work force.

Applications for Employment

Ever since the establishment of the
department, residents in increasing
numbers have come seeking employ-
ment in practically all classifications
and types of industries. This has been
due, in part, to the responsibility of the
department for the implementation of


282-348 0-8--- 7


residence preference provisions of the
statute, a fact not lost on the job-
seekers. Duplication and evident cross-
purposes in this area and others point
up the ever-increasing necessity to uni-
fy the programs and functions of em-
ployment security into the Department
of Labor, as is the case in 43 of the 50
states.

Division of Apprenticeship
and Training
The year showed a sharp increase in
the number of apprentices in training.
A total of 97 registered, 48 under the
Federally subsidized on-the-job train-
ing program. In addition to the 97 full-
time trainees, four high school students
have entered part-time training pro-
grams in clerical work, radio and
television engineering, architectural
drafting, and air conditioning and re-
frigeration. These programs are carried
out with the cooperation of 27 employ-
ers in St. Thomas and St. Croix.
Eight students also are receiving ad-
vanced training through the off-island
institutional training program for Vir-
gin Islands trainees in technical schools
in Humacao, Cayey, Mayaguez, Are-
cibo, and Ponce, Puerto Rico.
During the last week in June 1967,
three trainees in St. Croix and four in
St. Thomas received certificates indi-
cating a rating of journeyman as radio
and television repairman, automotive
mechanic, electrician, electrical and
control technician.
A significant forward step in the ap-
prenticeship program was the execu-
tion of an agreement between the Vir-
gin Islands and the U.S. Department
of Labor, pursuant to the Manpower
and Training Act of 1962, which pro-
vides for the reimbursement of the
Virgin Islands government for the de-
velopment, installation and servicing of
all Manpower Development and
Training Act and on-the-job training

93




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