• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 Frontispiece
 General information
 Highlights of the year
 Selected legislation approved by...
 Virgin Islands water and power...
 Virgin Islands port authority
 Public utilities commission
 Bond issue and interim financi...
 Control of manufacture of watches...
 Control of processing of woolen...
 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
 Department of conservation and...
 Virgin Islands employment security...
 Department of public works
 Department of finance
 Office of the director of...
 Department of housing and community...
 Department of property and...
 Department of law
 Department of public safety
 Municipal court of the Virgin...
 Office of probation and parole
 Office of civil defense
 Virgin Islands planning board
 Bureau of statistics and economic...
 Office of economic opportunity
 Virgin Islands commission...
 Division of personnel
 Selective service
 Office of the supervisor of...
 Conclusion
 Appendices














Title: Annual report of the Governor of the Virgin Islands
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00015462/00001
 Material Information
Title: Annual report of the Governor of the Virgin Islands
Physical Description: Book
Language: English
Publisher: U.S. Department of the Interior
Place of Publication: Washington, D.C.
Publication Date: 1969
 Record Information
Bibliographic ID: UF00015462
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ltqf - AAA5018

Table of Contents
    Front Cover
        Page i
    Title Page
        Page ii
    Table of Contents
        Page iii
    Frontispiece
        Page iv
    General information
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Highlights of the year
        Page 7
        Page 8
    Selected legislation approved by the seventh legislature of the Virgin Islands, July 1968 - June 1969
        Page 9
        Page 10
        Page 11
        Page 12
    Virgin Islands water and power authority
        Page 13
        Page 14
        Page 15
        Page 16
    Virgin Islands port authority
        Page 17
        Page 18
        Page 19
    Public utilities commission
        Page 20
        Page 21
    Bond issue and interim financing
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
    Control of manufacture of watches in Virgin Islands
        Page 27
    Control of processing of woolen yard goods
        Page 28
    Office of public relations and information
        Page 29
        Page 30
    Office of the government secretary
        Page 31
        Page 32
    Department of education
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
    College of the Virgin Islands
        Page 41
        Page 42
        Page 43
        Page 44
    Department of health
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
    Department of social welfare
        Page 53
        Page 54
        Page 55
    Department of commerce
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
    Department of agriculture
        Page 61
        Page 62
        Page 63
    Department of labor
        Page 64
        Page 65
        Page 66
    Department of conservation and cultural affairs
        Page 67
        Page 68
        Page 69
        Page 70
    Virgin Islands employment security agency
        Page 71
        Page 72
    Department of public works
        Page 73
        Page 74
    Department of finance
        Page 75
        Page 76
        Page 77
    Office of the director of the budget
        Page 78
        Page 79
        Page 80
    Department of housing and community renewal
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
    Department of property and procurement
        Page 87
        Page 88
    Department of law
        Page 89
        Page 90
    Department of public safety
        Page 91
        Page 92
        Page 93
        Page 94
    Municipal court of the Virgin Islands
        Page 95
    Office of probation and parole
        Page 96
    Office of civil defense
        Page 97
    Virgin Islands planning board
        Page 98
        Page 99
        Page 100
        Page 101
    Bureau of statistics and economic studies
        Page 102
        Page 103
    Office of economic opportunity
        Page 104
        Page 105
    Virgin Islands commission on youth
        Page 106
        Page 107
    Division of personnel
        Page 108
        Page 109
    Selective service
        Page 110
        Page 111
    Office of the supervisor of elections
        Page 112
    Conclusion
        Page 113
    Appendices
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
        Page 120
        Page 121
        Page 122
        Page 123
        Page 124
        Page 125
        Page 126
        Page 127
        Page 128
        Page 129
        Page 130
        Page 131
        Page 132
        Page 133
        Page 134
        Page 135
        Page 136
Full Text






1969 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 55 cents















CONTENTS
Page
General Information ........................................... 1
Highlights................................................... 7
Legislation.......... .............. ...... ... ........... 9
Virgin Islands Water and Power Authority........................... 13
Virgin Islands Port Authority............... ...... ...... ..... 17
Public Utilities Commission..................................... 20
Bond Issue and Interim Financing .................. ............ 22
Control of Manufacture of Watches.......................... .. 27
Control of Processing of Woolen Yard Goods.... ............... 28
Office of Public Relations and Information........................ 29
Office of Government Secretary.............................. .. 31
Department of Education..... .. ............. .. ... .. 33
College of the Virgin Islands ............................ ........ 41
Department of Health .......................................... 45
Department of Social Welfare................................. 53
Department of Commerce .................. ................. .. 56
Department of Agriculture .... ................................ .. 61
Department of Labor..................... ................. 64
Department of Conservation and Cultural Affairs................... 67
Virgin Islands Employment Security Agency ...................... 71
Department of Public Works ................. .......... ........ 73
, Department of Finance ..... ............................ ..... .. 75
Office of the Director of the Budget............................ 78
S Department of Housing and Community Renewal .................. 81
Department of Property and Procurement. ......................... 87
Department of Law .......................................... 89
Department of Public Safety.. ........................... ..... 91
The Municipal Court of the Virgin Islands ......................... 95
Office of Probation and Parole................................. 96
Office of Civil Defense ................................. ..... 97
Virgin Islands Planning Board.. ................................ 98
Bureau of Statistics and Economic Studies .......................... 102
Office of Economic Opportunity.... .......................... 104
Virgin Islands Commission on Youth ............................. 106
Division of Personnel ........................................... 108
Selective Service .............. ................... ....... .. 110
Office of the Supervisor of Elections ............................. 112
Conclusion............... ............... ...... ............. 113
-iii







































Dr. Melvin H. Evans, Presidential nominee for Governor of the Virgin Islands, talks with members of the Interior and Insular Affairs
Committee of the United States Senate and Presidential nominee for the Territory of Guam at the close of the hearings held by the
Committee in Washington, D.C., where President Nixon's two appointments were approved. Left to right: Dr. Carlos Camacho,
Governor of Guam, Senator Gordon Allott of Colorado, Governor Evans, Senator Ted Stevens of Alaska, and Senator Quentin Burdick
of North Dakota.



S S














GENERAL INFORMATION


History
Christopher Columbus, sailing to the
New World on his second voyage in
1493, dropped anchor on the north side
of St. Croix and the island's first "visi-
tor" took in the unspoiled tropical
beauty and rolling hills of a Caribbean
paradise. The spot is known today as
Salt River Bay, one of the many pic-
turesque inlets in the U.S. Virgin
Islands.
The Great Navigator named his
"discovery" Santa Cruz, meaning "Is-
land of the Holy Cross" and sent a
landing party ashore to replenish the
ship's dwindling water supply. Instead
of the warm welcome visitors receive
today, Columbus' men were repulsed
by the fierce Carib Indians. No further
attempts were made to land and colo-
nize until 1555 when the hostile Caribs
were driven from St. Croix by the sol-
diers 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
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
the West Indies that Great Britain,
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 British
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
Danish policy of neutrality and liberal
trading laws. Ships of all the nations
of Europe, carried to the fine harbor
of Charlotte Amalie on St. Thomas by
the constant easterly trade winds,
gathered there and a booming trade
with the New England States of the
new American nation supported the
burgeoning island economy.
Sugar was king and its influence was
felt everywhere. 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 Is-
lands were spared the depredations of
these buccaneers by paying "protec-
tion" in the form of sanctuary and
commercial privileges.








Sugar brought great prosperity to
the islands and the plantation owners.
It also brought misery and privation
to the thousands of slaves who were
introduced from Africa in the 1680's
to work the canefields. Their suffering
finally erupted into revolt. On St. John,
after a bloody mutiny, the slaves held
the islands for 6 months until the
French forces arrived from Martinique
to help the Danish masters regain their
land. Legend has it that the last sur-
vivors of the ill-fated uprising com-
mitted mass suicide by plunging over
a cliff or shooting themselves rather
than face a return to servitude.
Slavery was finally abolished by an
enlightened Denmark in 1848, 15 years
prior to the publication of the U.S.
Emancipation Proclamation. From
then on, sugar decreased in commer-
cial importance in the Virgin Islands,
outdone by the more favorable condi-
tions 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
German seizure that would give
U-boats a base in the Caribbean, the
United States bought the Danish Vir-
gins in 1917 for $25 million. The U.S.
Navy was delegated to administer the
islands and assumed responsibility on
March 31 of that year.

Geography

The U.S. Virgin Islands lie some
1,434 nautical miles southeast of New
York City, 991 miles from Miami, Fla.;
and 40 miles east of Puerto Rico, 75
air-miles from San Juan.
The islands are a part of the Antilles


which form the dividing line between
the Caribbean Sea and the Atlantic
Ocean. They are located directly in the
path of the trade winds, so commer-
cially important in the days of sail, at
the eastern end of the Greater Antilles
and the northern end of the Lesser
Antilles.
The U.S. Virgins consist of some 50
islands and cays of volcanic origin.
Their neighbors, the British Virgins,
are made up of another 30 similar
islands and cays.
Only three islands in the U.S. group
are of any population or commercial
significance. The largest of these, St.
Croix, with 84 square miles is, for the
most part, flat, and suited for agricul-
tural use. Forty miles due north, St.
Thomas wiht 28 square miles, offers
dramatic rugged mountains that rise
sharply from the sea to heights 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 to agriculture,
and priority is being given to the ad-
vancement and diversification of this
industry. Until recently, sugar cane was
the only important crop. However, it
had been a marginal one and had cost
the local government large sums of
money to cover milling losses. Conse-
quently, sugar has been phased out and
terminated as a commercial crop. In-
stead, industry has been encouraged to
develop and over 4,000 acres of prime
land is being utilized under a compre-
hensive agricultural plan now being
developed. This includes broad re-
search into feasible food crops, mid-
dle-range programs for agricultural








development and a long-range plan to
preserve the agricultural character and
natural beauty of the island.
St. Croix has two improved harbors.
The one at Christiansted, considered
to be one of the most picturesque
under the U.S. flag, attracts pleasure
yachts and medium-sized commercial
craft from other West Indian islands.
A deep water harbor at Frederiksted
on the east end of St. Croix accommo-
dates 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 ex-
pansion of its airport facilities has now
allowed for jet travel from the main-
land to the island.
St. John's main attraction is its un-
spoiled beauty, guaranteed to remain
so since much of the island is taken up
by the Virgin Islands National Park.
The incomparable beaches, breathtak-
ing mountain views, and lush vegeta-
tion bring an increasing number of
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 700 to 900 range with an average
780. The balmy trade winds provide
natural air conditioning. Humidity is
comfortably low with rain-fall averag-
ing about 45 inches a year.
There is an abundant variety of
tropical flora ranging from the well-
known hibiscus, bougainvillea, ole-
ander, poinsettia, and wild orchid, to
the less common African tulip, frangi-
pani, and lignum vitae. Many other
flowering trees and shrubs add to the


island's color and fragrance. Coconut
and royal palms are everywhere while
the quieter teachers are lined with
mangrove, 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 sail-
fish are caught during most months.
The Virgin Islands now holds the
world record for the largest blue mar-
lin. Smaller fish also abound. They in-
clude grouper, "old wife," yellow tail,
and angelfish.
The islands provide stone, sand, and
gravel as building materials but there
are no minerals of commercial signifi-
cance.
Government
The Virgin Islands have been gov-
erned by many nations. The flags of
Spain, France, Holland, England,
Denmark, and the United States have
flown over all three islands and St.
Croix, for a brief time, was 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.
Recent changes in the act provide for
an even greater degree of home rule.
Presently, the Governor is appointed
by the President, subject to Senate con-
firmation and exercises the executive
power under the supervision of the
Secretary of the Interior. In 1970, by
recent congressional act, he will be
elected by the people of the Virgin Is-
lands for the first time in Virgin Islands
history. The Governor is responsible for
execution of local laws, administration
of all activities of the executive branch,
and the appointment of department
heads and other employees. He reports
annually to the legislature on the state
of the territory and recommends new
legislation to carry out the various pro-
grams of local government.
The government secretary also is ap-
pointed by the President. In the
absence of the Governor, the govern-
ment secretary serves as acting Gover-
nor. He also has administrative respon-
sibility for banking and insurance laws
and the licensing and assessment of real
property.
The unicameral legislature is elected
for 2-year terms. There are 15 senators,
five from St. Croix, five from St.
Thomas, one from St. John, and four
elected at large by Virgin Islands vot-
ers 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 are appointed by the Governor,
and confirmed by the legislature. The
municipal court exercises jurisdiction
over misdemeanor violations and traffic
offenses under the local law.
Civil cases involving less than $500
are handled by the municipal court;
cases involving from $501 to $10,000
are 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 Is-
lands exercises appellate jurisdiction
over the municipal court in civil and
criminal cases. The U.S. Court of Ap-
peals for the Third Circuit, Philadel-
phia, and the U.S. Supreme Court
exercise appellate jurisdiction over the
district court of the Virgin Islands.

Finances and Taxes

There are three principal sources
of revenue for the government of the
Virgin Islands from which funds are
derived for capital and operating
disbursement.
The largest source and one that is
growing every year, is from local in-
come taxes. An act of the Congress of
the United States provides that Federal
income tax schedules be applied as a
local tax in the Virgin Islands. Another
major contributor to the treasury con-
sists of Federal excise taxes collected in
the United States on imports of 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 addition, the Federal Government
assists the islands by appropriations
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
Island. Income from visitors' expendi-
tures during fiscal year 1969 reached a
new record high of over $112,268,245
as compared with more than $100 mil-
lion in fiscal year 1968.
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
establish operations in the islands. On
St. Croix, two large industrial concerns
are in production, providing employ-
ment opportunities for a large num-
ber 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 $2,700 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 government.
Tax exemptions and subsidy benefits
long have 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
allowed duty-free entry into the United
States of their products under section
301 of the U.S. Tariff Act. To guard
against abuses of section 301, the local
government sets up production quotas
for certain classifications of textiles,
and on the manufacture of watches,
with higher taxes provided for produc-
tion in excess of the quotas. The watch
production legislation was supplanted
in January 1968 by a congressional act
designed for the same purpose but ap-
licable as well to other territorial areas
subject to the same section 301
treatment.

Population
The Virgin Islands are in the midst
of a population explosion. Currently,
the resident population is estimated at
62,802, including alien workers and
part-time residents, and it is expected
this will jump to 71,000 by 1970. The
total labor force is in excess of 32,000.
In 1960 the census recorded the resi-
dent population at 32,099. A break-
down of the 1960 population figures
records 15,930 males and 16,169 fe-
males. Residents of urban communi-
ties numbered 18,017; 14,082 lived in
rural areas, while 8,892 were enrolled
in schools. The total labor force was
11,336, of which 7,363 were male and
3,971 female. Unemployment was listed
at 3.4 percent.
English is the traditional language
of the Virgin Islands. Some French is
spoken by citizens of French descent
on St. Thomas, and many Spanish-
speaking families have come from







Puerto Rico, chiefly settling in St.
Croix.
The people are devout and worship
in many churches including Roman
SCatholic, Angelican, Lutheran, Meth-
odist, Jewish, Moravian, Seventh-Day
Adventist, Pilgrim Holiness, Christian
Mission, Dutch Reformed, and Bap-
tist.

Health and Education

The Virgin Islands have set an ex-
ample for the entire Caribbean in the
preservation of health, the develop-
ment of education, and the replace-
ment of slums with modern housing.
Each year sees further advances in
hospital and public health services, and
construction of two multimillion-dollar
health centers designed to provide ade-
quate facilities for the long-range needs
of the community is contemplated.
Diseases once associated with tropical
climates have long since been eradi-
cated, and the climate eliminates the
need for home heating or heavy cloth-
ing, further contributing to the good
health of the Virgin Islands.
Educational standards continue to
be upgraded. Public schools cover
kindergarten through high school, and
the islands' two major high schools
have full accreditation. The College of
the Virgin Islands, established in 1963,
has reached an enrollment of 332 full-
time students and nearly 1,000 part-
time students and in fiscal 1969 became
a 4-year institution offering programs
in liberal arts and teacher education.


In addition, the college will continue
to offer seven 2-year programs.

Communication and Transportation
All three Virgin Islands enjoy the
facilities of a dial telephone system that
is being constantly expanded to meet
the growing needs of the community.
Marine cables have been installed that
have made possible direct dialing to
Puerto Rico and to the mainland.
Worldwide radio telegraph service is
also available.
The islands are served by three radio
stations, two television stations, and
five newspapers, three of them dailies.
While most visitors come by air, fly-
ing in jet planes to Puerto Rico and
then by smaller planes to the islands,
aircraft design of recent years has af-
fected this travel pattern. With the in-
troduction of medium-range jet air-
craft, capable of takeoffs and landings
from short runways, the islands are
now serviced by daily direct jet service
from New York City and Miami. A
growing regular seaplane service oper-
ates between the principal islands.
Aside from short-stay cruise ship pas-
sengers, 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


Housing and Community Renewal
Very significant advances were made
in the areas of housing and community
renewal. Money from the moderate
income housing revolving fund was
used to complete or help finance 495
homes in three developments. Eight
housing projects, using Federal funds
and including 1,503 units, were either
under construction or planned at the
end of the year. Urban renewal pro-
grams showed excellent progress, with
four projects underway, one in the
planning stage and several others pro-
posed and under study.

Department of Conservation
Impetus for the programs of the
newly created Department of Conser-
vation and Cultural Affairs was pro-
vided by receipt of the first installment
of a $2.7 million a year royalty, to be
used exclusively for conservation and
cultural projects, on the Hess Oil im-
port quota granted by the Department
of the Interior.

Pollution Control
One of the first projects undertaken
by the new Department of Conserva-
tion is the updating and expansion of
the Islands' sewage and waste disposal
systems. A master plan is being imple-
mented that will provide sewer sys-
tems and waste disposal facilities well
within today's more stringent standards
of air and water pollution control.

Tektite I Undersea Study
Greater Lameshur Bay, off the coast
of St. John, was the stage for the dra-
matic Tektite I man-in-the-sea project
in February. Four aquanaut-scientists,


living in a habitat 50 feet under the
sea, conducted the longest continuous
undersea study yet attempted by a div-
ing team. Purpose of the project was
to garner data necessary for the in-
creasingly complex undersea and space
missions of the 1970's.

Public Education
Great strides were made in public
education as public school enrollment
increased at an unprecedented rate of
9.5 percent. It was determined that
alien children would for the first time
be enrolled in the school system, and it
is expected that by next year all chil-
dren of school age in the Virgin Islands
will be enrolled.

A 4-Year College Program
The College of the Virgin Islands
began its expansion to a 4-year bac-
calaureate program, offering majors in
seven subjects and enrolling the first 19
juniors in September. The first bach-
elor of arts degrees will be awarded in
June, 1970.

Conference on Caribbean
Development
Coinciding with the opening of the
world's largest combination desalting
and power plant on St. Thomas, the
first Annual Virgin Islands Confer-
ence on Caribbean Development was
held in November. The conference was
sponsored by the Virgin Islands Water
and Power Authority, the College of
Virgin Islands, and the Government.
Opened by Secretary of the Interior
Stewart L. Udall, the conference was
devoted to study of water desalting as
the key to future tourist, commercial







and agricultural development of the
Virgin Islands and the entire Carib-
bean area. Representatives from 15
Caribbean governments attended the
conference.
A New Governor
Dr. Melvin H. Evans was nominated
by President Richard M. Nixon to be-
come Governor of the Virgin Islands.
He took the oath of office on July 1,
1969, succeeding Acting Governor
Cyril E. King who had held the post
since the resignation of Governor
Paiewonsky in February.
Electric Power Production
Total power production on St. Croix
rose to a new high of 84 million kilo-


watt hours or 19 million kilowatt hours
higher than the previous year. On St.
Thomas, production rose 26.5 million
kilowatt hours to 124 million hours
total.
Higher Salaries for Government
Employees
The new personnel program for gov-
ernment employees, designed to elevate
standards of government service and
improve employee performance, added,
in 1969, approximately $5,200,000 in
new salaries for regular budgeted posi-
tions. Increased security for employees
was provided with the classification as
to tenure of a number of previously
unclassified positions.


Aquanauts of Tektite I team join in ceremonies with symbolic key to their underwater
habitat before spending a month 50 feet under the water off the island of St. John.














SELECTED LEGISLATION APPROVED BY
THE SEVENTH LEGISLATURE OF
THE VIRGIN ISLANDS, JULY 1968-
JUNE 1969


Act No. 2317-To amend Chapter
5 of Title 33, Virgin Islands Code, Re-
lating to Gasoline Taxes.
Act No. 2318-To amend the Provi-
sions of Chapter 8 of Title 3 of the
Virgin Islands Code Relating to the
Establishment of the Positions of Medi-
cal Examiner, the Issuance of Sub-
poenas by the Attorney General and
for Other Purposes.
Act No. 2319-To Provide for the
Contracting for Publication of Official
Notices.
Act No. 428-To Express Congratu-
lations on the 100th Anniversary of
Hampton Institute, Hampton, Va.
Act No. 2320-To Provide for the
Financing of New Health Centers in
the Virgin Islands.
Act No. 2327-To Provide Appro-
priations From Available Balances in
the Internal Revenue Matching Fund
for Essential Public Projects for the
Fiscal Year July 1, 1968, to June 30,
1969, and for Other Purposes.
Act No. 2328-To amend Act No.
2268 (Bill No. 3647) "An Act To Pro-
vide Appropriations for Salaries and
Expenses for the Operation of the
Government of the Virgin Islands
During the Fiscal Year July 1, 1968, to
June 30, 1969."
Act No. 2329-To Provide for the
Continuity of the Aedes Aegypti Mos-
quito Control Program and for Other
Purposes.


Act No. 2333-To Extend the Term
of the Educational Program for Men-
tally Retarded Children Established by
Act No. 1575, Approved February 17,
1966.
Act No. 2334-To Amend Act No.
2034 (Bill No. 3399), as Amended by
Act No. 2075 (Bill No. 3453) "To Au-
thorize the Commissioner of Labor To
Erect a Memorial to Virgin Islands
War Veterans."
Act No. 2335-To Authorize the
Continuation of the State Technical
Services Program in the Fiscal Year
July 1, 1968 to June 30, 1969 and To
Provide an Appropriation Therefor.
Act No. 2336-To Amend Act No.
1911, Approved April 17, 1967, Relat-
ing to the Rum-Producing Industry in
the Virgin Islands, and for Other
Purposes.
Act No. 2338-To Authorize the
Issuance of Revenue Bonds for the
Completion of Certain Bulkhead
Improvements at Crown Bay, St.
Thomas.
Act No. 2339-To Amend Section
17 of Act No. 2238, Relating to the
Report of the Select Commission on
the Reorganization of the Government
of the Virgin Islands.
Act No. 2340-To Further Amend
Act No. 1259, Approved October 30,
1964, as Amended, Relating to Issu-
ance of General Obligation Bonds for
Certain Purposes.








Act No. 2342-To Amend Certain
Provisions of Title 18 of the Virgin
Islands Code, Relating to Elections.
Act No. 2343-To Amend Act No.
2036, Approved August 7, 1967, Re-
lating to the Agreement With Hess Oil
Virgin Islands Corp.
Act No. 2344-To Establish the
State Planning Agency for the Virgin
Islands for the Purposes of the Omni-
bus Crime Control and Safe Streets
Act of 1968.
Act No. 2345-To Modify the Pro-
visions of Act No. 1419 Authorizing
the Commissioner of Education To
Enter Into Contracts for the Trans-
portation of School Children in the
Virgin Islands.
Act No. 2347-To Authorize the
Borrowing of Funds From the Govern-
ment Insurance Fund for Land Ac-
quisition Purposes, and for Other Pur-
poses.
Act No. 2348-To Amend Act. No.
2134 (Bill No. 3570), Seventh Legis-.
lature, Regular Session 1968, Relating
to the Assessment of Administrative
Penalties for Filing of Application for
License After Statutory Deadline.
Act No. 2352-To Amend Section
406 of Title 14 of the Virgin Islands
Code Relating to Bribing Certain Pub-
lic Officers.
Act No. 2360-To Authorize the
Governor to Execute a clarifying
Amendment to the Agreement of Sep-
tember 1, 1965, Between the Govern-
ment of the Virgin Islands and Hess
Oil Virgin Islands Corp.
Act No. 2361-To Amend Portions
of Title 3, Chapter 22, and Section 96
of the Virgin Islands Code to Trans-
fer the Administration and Operation
of Publicly Supported Libraries From
the Department of Education to the
Department of Conservation and Cul-
tural Affairs.
Act No. 2362-To Provide Appro-
priations from the Virgin Islands Con-

10


servation Fund for the Fiscal Year July
1, 1968 to June 30, 1969.
Act No. 2363-To Provide for the
Construction, Including the Financing,
of Certain Low-Cost Housing Units in
the Bourne Field Area, St. Thomas,
Virgin Islands.
Act No. 2364-To Establish a Virgin
Islands Public Television System.
Act No. 2365-To Authorize the
Acquisition of Certain Rights-of-Way
Needed for Road Purposes in St. Croix,
Virgin Islands.
Act No. 2366-To Amend Chapter
5, Title 30 of the Virgin Islands Code,
Relating to the Virgin Islands Water
and Power Authority.
Act No. 2369-To Provide for Im-
provements to Water Systems in St.
Croix and To Repeal Act No. 2104.
Act No. 2375-To Create the Vir-
gin Islands Port Authority; To Author-
ize the Issuance of Bonds for the Port
Authority, and for Other Purposes.
Act No. 2379-To Provide for Ne-
gotiation for the Construction of Hos-
pital Complexes in St. Croix and St.
Thomas.
Act No. 2383-To Amend Subchap-
ter VIII, Chapter 25, Title 3, Virgin
Islands Code, Relating to Health and
Life Insurance for Certain Employees
of the Government of the Virgin
Islands, and for Other Purposes.
Act No. 2385-To Amend Chapter
1, Title 1 of the Virgin Islands Code,
Pertaining to the Correction of Errors
and Classification of Acts Prior to Pub-
lication.
Act No. 2386-To Amend the Pro-
visions of Section 407 of Title 13 of
the Virgin Islands Code Relating to
the Withdrawal of Foreign Corpora-
tions.
Act No. 2387-To Provide an Ap-
propriation for the Payment of a Judg-
ment Entered Against the Government
of the Virgin Islands in the Amount
of $250.00 in the Case of Daniels v.







The Government of the Virgin Islands
(Municipal Court Civil No. 355-
1966).
Act No. 2388-To Regulate the
Practice of Physical Therapy in the
Virgin Islands and for Other Purposes.
Act No. 2389-To Extend the Ex-
emption From Taxes to the Virgin Is-
lands Telephone Corporation for an
Additional Period of 6 Years.
* Act No. 2392-To Approve the Ex-
tension of Certain Tax Exemption
Benefits to Laga Industries Limited.
Act No. 2397-To Petition the Gov-
ernor to Take Immediate Action to
Implement the Provisions of Law Per-
taining to the Investigation of Food
Prices for the Protection of Consumers:
Act No. 2398-To Provide for a
Comprehensive Program of Recrea-
tion Development in Frederiksted, St.
Croix, and for Other Purposes.
Act No. 2400-To Amend the Fol-
lowing Titles of the Virgin Islands
Code: Title 27 to Provide for Profes-
sional Immunity to Registered Nurses
in Emergency Cases; Title 19 to Pro-
vide for Mandatory Reporting of Cer-
tain Physical Abuses of Children by
Registered Nurses; Title 27 Relating to
the Requirements for Licensing Reg-
istered Nurses and Nurse-Midwives,
and for Other Purposes.
Act No. 2401-To Establish a Spe-
cial Commissioin to Study and Make
Recommendations on the Status and
Problems of Noncitizens in the Virgin
Islands.
Act No. 2403-To Add New Sec-
tions to Chapter 23 of Title 3, Virgin
Islands Code, Pertaining to the Estab-
lishment of the Virgin Islands Com-
mission for Human Resources and for
Other Purposes.
Act No. 2409-To Add a New
Chapter 3 to Title 8, Virgin Islands
Code, Pertainnig to Alcoholic Bever-
ages, Fair Trade Contracts, Price
Schedules and for Other Purposes.


Act No. 2411-To Amend Act No.
2253 (Bill No. 3714), "An Act to Pro-
vide for the Reapportionment of the
Legislature of the Virgin Islands, To
Amend Certain Provisions of Title 18,
Virgin Islands Code, and for Other
Purposes."
Act No. 2414-To Provide for the
Licensing of Practical Engineers and
for Other Purposes.
Act No. 2416-To Amend Subsec-
tion (b) of Section 64, Title 24, Virgin
Islands Code, Relating to the Rights of
Employees to Self-Organization.
Act No. 2419-To Amend Certain
Provisions of Title 18, Virgin Islands
Code, Relating to Elections.
Act No. 2426-To Renumber and
Amend Section 3027, Title 33 of the
Virgin Islands, Relating to the Nontax
Revenue Fund.
Act No. 2431-To Prescribe the
Duties of the Lieutenant Governor of
the Virgin Islands in Accordance With
the Provisions of the Revised Organic
Act of the Virgin Islands as Amended.
Act No. 2436-To Establish An Ad-
visory Committee to the Virgin Islands
Housing Authority and for Other
Purposes.
Act No. 2443-To Provide Certain
Positions Exempted From the Career
Service and for Other Purposes.
Act No. 2453-To Make an Appro-
priation for the 1969 St. Thomas Car-
nival and for Other Purposes.
Act No. 2457-To Amend the Offi-
cial Zoning Maps for St. Thomas, and
for Other Purposes.
Act No. 2458-To Provide an Ap-
propriation for the Purchase of Re-
print Pamphlets of the Virgin Islands
Code, and Binders for the Virgin
Islands Slip Laws and Virgin Islands
Register as Authorized by Act No. 922
(Bill No. 1728), and for Replacement
Volumes of the Virgin Islands Code.
Act No. 2461-To Make an Appro-
priation to the Department of Public








Safety for Improvement of Recrea-
tional Facilities at Richmond Peni-
tentiary and the Restoration and
Improvement of King's Hill Police
Station, St. Croix, and for Other
Purposes.
Act No. 2462-To Provide an Ap-
propriation to Assist the Members of
the Senior Class of St. Joseph's High
School, Frederiksted, St. Croix, In
Making an Educational and Cultural
Student Trip in the Caribbean Area
in May, 1969, and for Other Purposes.
Act No. 2466-To Amend Chapter
27 of Title 4, Virgin Islands Code, To
Authorize the Appointment of Li-
brarians for the Law Libraries of the
District Court in St. Thomas and St.
Croix.
Act No. 2470-To Authorize a
Study Leave for a Translator for In-
struction in the Translation of Danish
Gothic Script and for Other Purposes.


Act No. 2480-To Amend Act No.
2315, Relating to the Legal Rate of
Interest.
Act No. 2485-To Provide Appro-
priations for Salaries and Expenses for
the Operation of the Government of
the Virgin Islands During the Fiscal
Year July 1, 1969, to June 30, 1970.
Act No. 2486-To Fix the Regular
Expenses of the College of the Virgin
Islands for the Fiscal Year July 1, 1969,
to June 30, 1970, and for Other
Purposes.
Act No. 2487-To Provide an Ap-
propriation for the Government Insur-
ance Fund and Operating Expenses of
the Department of Labor for the Fiscal
Year July 1, 1969, to June 30, 1970.
Act No. 2489-To Appropriate
Funds From the Operating Fund of the
Virgin Islands Lottery for Foster Care
and Day Care for the Fiscal Year
July 1, 1969, to June 30, 1970.














VIRGIN ISLANDS WATER
AND POWER AUTHORITY


Personnel: 282
The Authority took over the opera-
tion of the electric power and water
distillation facilities for the Islands on
June 1, 1965. In the 4 years since the
government acquired the facilities from
the former Virgin Islands Corp., owned
by the Federal Government, demands
for electric power and water have
almost tripled.
The Authority generates and dis-
tributes electricity on St. Thomas and
St. Croix and, via submarine cables,
serves St. John, Water Island, and
Hassel Island.


There are now three sea water dis-
tillation plants on St. Thomas with a
capacity of 3,750,000 gallons per day
and one plant on St. Croix with a
capacity of 1 million gallons per day.
All water distilled by Authority plants
is pumped into the facilities of the
Public Works Department and this
department distributes it to the
consumers.
During fiscal 1969, the St. Thomas
distillation plants produced a total of
397.8 million gallons of distilled water
and sold 367.4 million gallons. The
St. Croix plant produced a total of 71.6


Multistage flash evaporator sea water desalting plant at Krum Bay, St. Thomas, is designed
to manufacture 2Y2 million gallons of distilled water daily.


378-289 0-70---2








million gallons in its first year of opera-
tion and sold 69.9 million gallons.
Demand for electric power reached
an all-time high during the year, with
the demand on St. Croix increasing 29
percent over the previous year and that
on St. Thomas climbing 27 percent
above the demand during fiscal 1968.
At the close of the fiscal period, a total


of 20,244 customers were served by the
Authority's electric distribution system.
There were 11,046 customers in the
St. Thomas-St. John service area. The
total reflected an increase of 1,944
customers over the last fiscal year.
Following is a tabulation of electric
bills issued during fiscal years 1966,
1967, 1968, and 1969:


1966 1967 1968 1969 (approx.)
St. St. St. St. St. St. St. St.
Thomas Croix Thomas Croix Thomas Croix Thomas Croix

Residential... 83,218 63,171 91,211 69,788 99,423 76,755 108,581 87,180
Commercial.. 12,234 12,441 13,011 13,679 14,533 14,497 15,887 15,813
Largepower.. 984 863 1,329 1,159 1,646 1,392 1,978 1,517


Total power production on St. Croix
during the fiscal year was 84 million
kilowatt hours, or 19 million kilowatt
hours higher than the total for the
previous fiscal year. On St. Thomas,
the total production was 124 million
kilowatt hours, or 26.5 million higher
than fiscal 1968.
Maximum peak demand on St.
Thomas for the fiscal year was 22,000
kilowatts as compared to the 1968 peak
of 16,300 kilowatts. On St. Croix, the
maximum peak demand was 15,450
kilowatts against the previous year's
peak of 11,800 kilowatts.
The St. Thomas plant has eight
diesel generators and three steam tur-
bine generators with a total capacity
of 36,800 kilowatts. The St. Croix plant
has nine diesel-driven generators and
one steam turbine generator with a
total capacity of 22,992 kilowatts.


The following is a listing of the
plants:
Kilo-
St. Thomas plant: 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............. 7.50
Unit No. 6 diesel............. 1, 250
Unit No. 7 diesel............. 2, 000
Unit No. 8 steam ............ 3, 000
Unit No. 9 diesel............. 3, 000
Unit No. 10 steam ........... 7, 500
Unit No. 11 steam........... 15, 000
Total kilowatts available.... 36, 800
St. Croix plant:
Unit No. 1 diesel............. 429
Unit No. 2 diesel............. 234
Unit No. 3 diesel............. 248
Unit No. 4 diesel............. 1,000
Unit No. 5 diesel............. 965
Unit No. 7 diesel.............. 2, 216
Unit No. 8 diesel............. 2,400
Unit No. 9 diesel ............. 1,000
Unit No. 10 steam ........... 10, 000
Unit No. 12 diesel............ 4, 500
Total kilowatts available. ... 22, 992

























New plant to desalt sea water on St. Croix
is designed to manufacture 1 million gal-
lons of distilled water daily.

On St. Croix, the Authority has a
mutual aid contract with Harvey
Alumina which can provide up to
4,500 kilowatts in emergencies and
when available.
To provide more back-up power on
the Island of St. Thomas, the Govern-
ing Board authorized purchase of a
15-MW gas turbine generating plant.
This unit is expected to arrive on the
Island in September 1969, and to be
placed in commercial operation in
October 1969.
For back-up power for the Island of
St. Croix, the Governing Board au-
thorized purchase of a 4,500-kilowatt
diesel generator. This unit was sched-
uled to start operation in July 1969
but was damaged in shipment and is
now expected to be in commercial
operation by November 1969.
The 750 kilowatt diesel engine (unit
No. 6) which needed major mainte-
nance was removed from the power
plant to accommodate the new unit.
On February 19, 1968, by Resolu-
tion No. 47, the Governing Board


ratified and approved the purchase of
a 15,000-kilowatt net steam electric
powerplant from IGE Export Division
of the General Electric Co. for St.
Croix Island. This plant will have
provisions for future addition of a
2 y2-million-gallons-per-day distillation
plant. Construction of this plant is
progressing and 55 percent of the work
was completed at the end of the fiscal
year. It is anticipated that this unit will
be in commercial operation by Janu-
ary 1, 1970.
On St. Thomas the 15,000-kilowatt
International General Electric steam
generating plant, under construction
since last year, was placed into com-
mercial operation on August 27, 1968,
but has not had "final acceptance."
By Resolution No. 70, the Govern-
ing Board authorized the public sale
of electric system bond anticipation
notes-1969 in the amount of $11,200,-
000. The notes were sold to The Chase
Manhattan Bank, N.A., at an annual
interest rate of 4.74 percent per annum
on April 15, 1969, maturing April 15,
1970.
In fiscal 1969, a total of 2,795 appli-
cations and contracts for electric serv-
ices were executed in St. Croix and
2,767 in St. Thomas.
For water, the island of St. Thomas
depends on rainfall, private cisterns,
hillside catchment areas, barging water
from Puerto Rico, and desalination of
sea water. The island of St. John de-
pends on rainfall, catchment areas, and
water barged from St. Thomas. Pres-
ently, there are no water production
facilities under the jurisdiction of the
Authority on St. John. The island of
St. Croix depends on catchment areas,
well water, and desalination of sea
water.
Existing water distillation facilities
on St. Thomas and St. Croix are as
follows:










Manufacturer Capacity Year
(g.p.d.) installed

St. Thomas:
Aqua Chem. ...................... ............... 275, 000 1962
Westinghouse. .................. .................. 1,000, 000 1967
Baldwin-Lima-Hamilton ............................. 2, 500, 000 1968
St. Croix:
Stearns-Roger ... ........................... .... 1,000,000 1968


With the addition of the Baldwin-
Lima-Hamilton plant and the Stearns-
Roger plant in 1968, the Virgin Islands
have plants constructed by the four
largest manufacturers of distillation
plants in commercial operation in the
United States.
Presently, the Baldwin-Lima-Hamil-
ton plant is the world's largest single
steam combined water and power-
plant. The Stearns-Roger plant is the
first commercial multiple effect desali-
nation plant in the world. This plant is
also the largest long-tube vertical de-
salination plant in the world.
The Authority's desalting plants all
produce water of 10 p.p.m. total dis-
solved solids which is much better than
the 250 p.p.m. limitations generally re-
quired by the U.S. Government for
public consumption, and all plants are
dual purpose, extracting steam after
it has spent some energy in a turbine
which provides power for electric
generation.
The Authority has a contract with
the Office of Saline Water for provid-


ing operating and maintenance data
on its desalination plants.
In November 1968, the Virgin
Islands Water and Power Authority
served as host for representatives from
15 Caribbean countries for the First
Annual Virgin Islands Conference on
Caribbean Development. The theme of
this first conference was "New Water-
Key to the Future of the Caribbean."
The 2 2-million-gallons-per-day
Baldwin-Lima-Hamilton desalting
plant on St. Thomas, and the 1-
million-gallons-per-day Stearns-Roger
desalting plant on St. Croix were dedi-
cated during the conference.
The Virgin Islands Water and
Power Authority Governing Board has
nine members. The Governor of the
Virgin Islands is chairman, the Com-
missioner of Public Works is vice-
chairman, the Commissioner of Com-
merce, and the Director of the Budget
are members by position. There are
also two local businessmen from St.
Thomas, two from St. Croix, and one
from St. John who are appointed to
the Board.















VIRGIN ISLANDS PORT AUTHORITY


Personnel: 236
Prior to February 12, 1969, the re-
sponsibility for the seaports and marine
terminals of the Virgin Islands was
under the Marine Division of the De-
partment of Commerce. Also, prior to
that date, air terminals and various
industrial, commercial, residential, and
recreational developments were the
responsibility of the Virgin Islands Air-
port and Industrial Resources Agency,
a temporary agency within the office
of the Governor. On February 12,
1969, the Virgin Islands Port Author-
ity was activated under authority of
act No. 2375 of the Virgin Islands
Legislature. This act combined the
functions of the former Marine Divi-
sion and the Virgin Islands Airport
and Industrial Resources Agency into
a new instrumentality, the Virgin Is-
lands Port Authority, with a new form
or organization.
In accordance with the legislative
enactment the purpose "of the Au-
thority shall be to establish, acquire,
construct, develop and improve, own,
operate and manage any and all types
of air terminals, marine terminals and
industrial, commercial, residential and
recreational developments, and to
make available the benefits thereof in
the widest economic manner, thereby
promoting the general welfare and in-
creasing commerce and prosperity."
The Virgin Islands Port Authority
was established as an autonomous in-
strumentality of the Government of


Operating Appropriation $2,042,293
the Virgin Islands with authority to
contract and to hold title to property
in its own name separate from the
Government of the Virgin Islands. The
Authority is governed by a nine-mem-
ber Board of Directors, on which the
Governor of the Virgin Islands is a
statutory member with one vote.
The first meeting of the board of
directors was held on February 12,
1969, and meetings have been held at
regular intervals since then to direct
the affairs of the Authority. Specifi-
cally, the Authority has responsibility
for the management, operation, main-
tenance, and development of the fol-
lowing areas: Harry S. Truman Air-
port, Sub Base, Veterans Drive bulk-
head and apron, St. Thomas harbors,
Red Hook dock, Cruz Bay dock, Coral
Bay pier, Gallows Bay Marine Termi-
nal, Christiansted harbor, Port Harvey
(public area), Frederiksted pier, Fred-
eriksted harbor, Lindbergh beach, and
Alexander Hamilton Airport.
The report of the Authority for
fiscal 1969 covers the activities of the
Virgin Islands Airport and Industrial
Resources Agency through February
12, 1969, when this agency was in-
corporated into the newly-created Port
Authority.
During the fiscal year, five scheduled
airlines, four scheduled air taxis, nine
nonscheduled air taxis and charters,
and three cargo airlines operated in
the Virgin Islands.







Major capital improvement projects
continued or planned during the year
were as follows:
1. Preparation of a master plan for
a new jetport in St. Thomas.
2. Construction of a new Interna-
tional Arrivals Building at the
Alexander Hamilton Airport.
3. Improvements to Terminal
Building, Alexander Hamilton
Airport.
A special feature this year was the
conduct of an air show in St. Croix
in January, 1969.

Other Highlights of the Year
During the year continued efforts
were made toward development of the
plans for a new airport in St. Thomas.
Contracts were executed for prepara-
tion of preliminary airport lay-out


plans, construction plans, specifica-
tions, and a revenue feasibility study.
It is expected that when this phase
of planning is completed, the construc-
tion of a new and safe airport capable
of meeting the future needs of the is-
lands will have advanced one more
step toward becoming a reality.
A new customs preclearance facility
was constructed at the Harry S. Tru-
man Airport in St. Thomas and was
put into operation during the fiscal
year.

St. Thomas Airport and Industrial
Operations
Revenues realized from the opera-
tions of Port Authority facilities in
St. Thomas amounted to $905,395.
These receipts were supplemented by
contributions from the Government to


Recently enlarged to take direct jet flights from the mainland, Harry S. Truman Airport
stretched behind Lindberg Bay on St. Thomas. In background is the campus of the College
of the Virgin Islands.








meet the total operating budget of
$1,066,701.
Once again the number of passen-
gers, aircraft landings, and cargo
movements through the Harry S. Tru-
man Airport reached record heights in
the fiscal year 1969. There were 566,-
586 in-bound passengers, an increase
of 59,141 passengers over the previous
year.
New activity at the Harry S. Truman
airport included the inauguration of
direct air service from New York to
St. Thomas by Trans Caribbean Air-
lines, and Eastern Airlines service be-
tween St. Thomas and Miami.

St. Croix Airport Operations

The cost of operation for the Alex-
ander Hamilton Airport amounted to


$390,050. These costs were funded by
revenues and supplemental allotments
provided by the Government.
At this airport, in-bound passengers
numbered 228,417, an increase of 55,-
090 over the previous year.
Marine Operations
Revenues generated from harbor op-
erations in the Virgin Islands amounted
to $453,077, in the fiscal year 1969
with operating cost of $459,582.
A total of 491 cruise ships visited the
Virgin Islands during the year, an in-
crease of 149 over fiscal year 1968.
Of these visits, 424 were made to
St. Thomas and 67 to St. Croix ports.
The ship visits brought a total of 213,-
541 passengers to the islands, an in-
crease of 47,424 over the previous
year.


Tourism remains the Islands' biggest industry. Last year, 67 cruise ships docked at St.
Croix; 491 at St. Thomas, bringing hundreds of thousands of visitors to the Islands.















PUBLIC UTILITIES COMMISSION
Personnel: 3 Operating Appropriation: $50,000


Fiscal 1969 was a year of vigorous
action by the commission in its efforts
to conduct thorough examinations of
all utilities subject to its regulation.
Of particular importance were the im-
provements in telephone service result-
ing from the commission's efforts in
this area.

Telephone Service
The commission continued its in-
vestigation into the quality of service
provided by the Virgin Islands Tele-
phone Corp. (Vitelco) and recently
initiated another phase of the investi-
gation to consider rate structures. In
the interests of achieving better quality
service and an assurance of adequate
telephone plant from Vitelco, the
commission's consultants made several
investigative field trips, issued two re-
ports, recommended corrective meas-
ures to be taken by Vitelco, assisted in
the implementation of commission or-
ders requiring corrective action by Vi-
telco, and participated in formal hear-
ings before the commission.
Earlier, in December 1967, the com-
mission's consultants had compiled a
report on telephone service with rec-
ommended corrective measures. A
commission order of remedy (No. 3-
68), issued in January 1967, directed
Vitelco to adopt certain minimum serv-
ice standards for dial tone delay and
operator speed of answer; to make
changes in certain central office equip-
ment; to adopt an intelligible system


of tones and announcements which
would inform subscribers why a call
could not be completed; to conduct
traffic engineering studies; to improve
transmission qualities; to correct mi-
crowave cutoffs and to implement a
program to increase and retain com-
petent plant personnel so that less work
by outside contractors would be re-
quired.
In fiscal 1969, the consultants con-
ducted additional investigations which
resulted in two reports. The first,
issued in August 1968, resulted in
remedial commission order No. 9-68,
requiring Vitelco to establish a perma-
nent register of subscriber requests for
service, which is now in service. The
first report further evaluated the need
for Vitelco to expedite installation of
additional central office equipment.
In October 1968, a further report
was prepared by the consultants in-
forming the commission that Vitelco
had failed to comply with the commis-
sion's order No. 3-68; that substand-
ard service had not improved except
in regard to microwave cutoffs and
carrier toll trunks in St. Croix, and
that Vitelco's activities to improve
existing dial service were relatively
minor.
A week-long hearing, held in De-
cember 1968, was extremely useful in
eliciting vital information; in securing
firm commitments from the company
to undertake various remedial actions
at specified dates; and in bringing the







situation to the attention of ITT-New
York.
This has resulted in a loosening of
restrictions on budgetary commitments
and greater efforts to improve service.
A short formal hearing was also held
under the direction of commission
order No. 10-68 to determine the ap-
propriate accounting treatment in re-
gard to Vitelco's premature retirement
of certain rural distribution wire.
Substantial service improvements in
many areas have been made. Micro-
wave cutoffs between the islands have
become negligible due to the complete
refurbishing of equipment. Vitelco has
inaugurated a system of recorded an-
nouncements which will inform a sub-
scriber as to why a call cannot be
completed.
The 1969 budget indicates that
Vitelco will hire and train an in-
creased number of plant personnel
with a corresponding cutback in out-
side contractor work. An additional
16 toll position board was installed in
Charlotte Amalie central office and ad-
ditional operators have been hired
and trained, which will improve opera-
tor speed of answer and toll conditions.
Much progress has been made in
Vitelco's capital expenditure commit-
ments for expansion of telephone plant
to relieve present deferred service ap-
plications and to meet future demands.
A community dial (central) office in
the Tutu area is now under construc-
tion and will be in service by March
1970. The proposed new central office
on St. Croix in the Kings Hill area is
scheduled for completion by June
1970. Other expansion programs in-
clude installations, in the spring of
1970, of a new community dial (cen-
tral) office on St. John to relieve de-
ferred service applications there and
the addition of a second floor to the
present Charlotte Amalie central office
in 1970 to permit future equipment
additions.


Throughout the year, the commis-
sion and its consultants have been
studying problems relating to the in-
ward and outward long-distance toll
circuitry, including changes in operat-
ing procedures of various companies,
transfer of ownerships and realloca-
tion of voice grade circuits. The result
was a substantial reduction in long dis-
tance rates in August of 1968.
The commission is continuously en-
gaged in surveillance of Vitelco's ac-
tivities through analysis of the monthly
and special reports which Vitelco is
required to file.
A new series of hearings is scheduled
for late 1969. Data compiled during
these hearings will enable the commis-
sion to propose additional remedial
action.

Vicom
Having expanded its service, Virgin
Isle Communications, which provides
marine radio-telephone communica-
tions, answering services to subscribers
and VHF radio-telephone service to
land and mobile stations, has reorga-
nized its operations. During the coming
year, the commission plans to conduct
a study of this reorganization and
subsequently report its findings.

Passenger Bus Service
General service, both on St. Thomas
and St. Croix, continues to expand. On
St. Croix several new units have been
added, and approval of additional
routes is being sought to expand the
transportation network.
Additions were also made to the fleet
in St. Thomas, as a result of demands
by rural developments and those
throughout the expanding industrial
park at the sub base area.
It is expected that the new rules
governing passenger bus service now
being prepared will be a major contri-
bution to operating efficiency.















BOND ISSUE AND INTERIM FINANCING


At the beginning of fiscal year
1969, the general government had
$11,750,000 outstanding in general
obligation bonds, and $6,853,000 in
bond anticipation notes for various
public improvements and the Virgin
Islands Water and Power Authority,
a governmental instrumentality, had
outstanding $8.8 million in electric
revenue bond anticipation notes.
Public financing activity during
the year included the issuance of
$7,930,000 in general obligation bonds;
$1,661,000 in revenue bonds for
housing and service facilities of the
College of the Virgin Islands, and the


renewal of the $8.8 million electric
revenue bond anticipation notes.
The general obligation issue of
$7,930,000 retired the $6,853,000 bond
anticipation notes outstanding at the
beginning of the year and incorporated
$1,077,000 in additional financing for
schools, water, and sewer projects.
Four very competitive bids were re-
ceived on November 18, 1968, for this
general obligation issue, indicating the
continued favorable reception of Vir-
gin Islands issues in the national mar-
ket. The award was made to First
National City Bank & Associates at a
net interest cost of 4.91 percent. Detail
of the bids received follows:


Net Percent
Name of bidder Price interest of net
cost interest
cost

First National City Bank & Associates.... $7, 930, 380. 64 $6, 029, 184. 36 4. 9133
Kidder, Peabody & Co. Inc.; Banco
Credito; Goodbody & Co.; Dean
Witter & Co. & Associates........... 7,930,026. 00 6,070, 944. 00 4. 9473
The Chase Manhattan Bank, N.A.;
Bankers Trust Co. & Associates ....... 7,932, 380. 00 6, 080,660. 00 4. 9553
Halsey, Stuart & Co., Inc.; John Nuveen
& Co. (Inc.); Bear Stearns & Co. &
Associates .......................... 7,931,586.00 6, 113,269.00 4.98188


The government during the past
year completed all general obligation
financing authorized by the Legislature.

Revenue Bond Debt Authorization
The authority for the issuance of
revenue bonds by the Government of
the Virgin Islands is embodied in the


Organic Act of 1954 as amended. Ini-
tially, a debt ceiling of $10 million had
been fixed by the law; this was later
increased to $30 million, and finally
by the most recent amendment effected
by Public Law 90-496 approved
August 23, 1968, the debt ceiling for
this type of debt was completely
removed.







By their nature, revenue bonds may
be issued only to finance revenue-
producing projects which can support
the debt on their own.
The government has not utilized
this means of financing as yet for any
wholly governmental capital improve-
ments. However, revenue bond financ-
ing has been authorized for such
government affiliated bodies as the
Virgin Islands Water and Power
Authority and the College of the Vir-
gin Islands. The authority under
which these instrumentalities may in-
cur bonded debt is included in the
basic legislation by which they were
established. However, as long as the
revenue debt ceiling was in effect all
issues of these instrumentalities had to
be contained within the limits of that
maximum. By statute the issuance of
bonds up to a maximum dollar amount
of $25 million has been approved for
the Water and Power Authority; no
specific dollar maximum has been de-
fined for the college.

Issues Outstanding
There is presently outstanding an
amount of $12,811,000 in revenue
bonds and notes. This amount in-
cludes a college bond issue of $1,-
661,000 sold in August 1968 to finance
housing and service facilities, and a
1-year issue of revenue bond anticipa-
tion notes to provide short-term in-
terim financing for electrical power
producing facilities of the Water and
Power Authority.
A. College of the Virgin Islands
The college issue was purchased by
the U.S. Department of Housing and
Urban Development under terms of a
loan agreement executed on Octo-
ber 27, 1966. These 30-year bonds bear
interest at 3/2 percent per annum,
and are secured by a first lien on the
revenues of the facilities in addition
to a first mortgage on the project.


B. Virgin Island Water and Power
Authority
The notes of the authority were is-
sued on April 15, 1969, for the purpose
of retiring an outstanding issue of
interim notes in the amount of $8,-
800,000, and obtaining $2,400,000 in
new capital.
Originally, on May 15, 1967, the
authority sold $4 million in 1-year
revenue bond anticipation notes to ob-
tain interim financing. These notes
were renewed on April 15, 1968, and
consolidated into a new issue includ-
ing $4,800,000 in new capital. The
most recent note sale on April 15, 1969,
therefore, represented the third re-
newal of prior notes in the aggregate
amount of $8,800,000, plus the new
capital for current projects.
All notes of the authority were pur-
chased by the Chase Manhattan Bank
and are held in the bank's portfolio.
However, although these notes, issued
on April 15, 1969, become due on
April 15, 1970, the understanding
among all parties including bond coun-
sel and financial advisors is that every
attempt will be made to retire these
notes during the present calendar year
by the completion of a bond sale.
A deterring factor to the authority's
ability to issue revenue bonds prior to
this time has been the existence of a
mortgage in the amount of $9 million
held by the Federal Government since
June 30, 1965, when the old plant
facilities were purchased from the
former Virgin Islands Corp. The pres-
ent balance on this mortgage is $7,-
200,000. The mortgage of the Federal
Government cannot be subordinated,
nor can the authority sell bonds which
carry a second lien. In order to remove
this obstacle the incorporation of the
amount owed to the Federal Govern-
ment on this mortgage into the first
bond sale of the authority has been
recommended.








Issues Contemplated
The government has been contem-
plating the possible use of this source
of financing for part of the cost of the
installation of completely new sewerage
systems in the Virgin Islands. This
major project is now pending a com-
pletion of financial plans. Prior to pro-
ceeding with plans for revenue financ-
ing, however, it will be necessary first
to secure legislative approval of a usage
assessment for the service to users of
the system.
The College of the Virgin Islands
expects to complete the sale of $401,-
000 of revenue bonds in October of
this year toward the financing of the
library building. It is expected that


these bonds will also be sold to the
Federal Government on a loan agree-
ment secured by a mortgage.
While a firm program of revenue fi-
nancing has not been available as yet
from the newly established Virgin Is-
lands Port Authority, it is anticipated
that the authority will use this means
to finance all of its major projects since
it has legal authority to do so. By the
provisions of act No. 2375 a maximum
of $65 million has been set for the
authority. Pending projects include the
proposed new airport at an estimated
cost of $28,359,309, including acquisi-
tion of land, improvements to harbors
and dock facilities, and development
of industrial parks.


GOVERNMENT OF THE VIRGIN ISLANDS
Summary Statement of Revenue Bond Issues and Issues of Revenue Bond Anticipation
Notes Outstanding

Term Rate
Purpose Amount Term Rate
Purpose Amount (years) (percent)

Housing and service facilities-College of the Virgin
Islands (bonds)................................ $1,661,000 30 3. 50
Electric power producing facilities-Virgin Islands
Water and Power Authority (notes)............... 11, 200, 000 1 4. 74
Total..................................... 12,861,000


General Obligation Debt
The general obligation debt incur-
ring authority of the Government of
the Virgin Islands is defined in the
1954 Organic Act of the Virgin Is-
lands, as amended by Public Law 88-
180 and Public Law 90-496 approved
August 23, 1968. The act restricts the
general obligation debt to an amount
equal to 10 percent of the total assessed
valuation of real property in the Virgin
Islands. In addition, the law specifies
that general obligation debt may be
incurred only for the purposes of pro-
viding or improving school, library,
health, water, and sewerage facilities.


Within this statutory definition the
government between November 1965
and December 1968 authorized and
issued general obligation bonds in three
series, totaling $20,045,000. As of the
present date, principal payments total-
ing $715,000 have been made against
these issues, and an amount of $19,-
330,000 remains outstanding. By the
end of calendar year 1969 an addi-
tional $525,000 of principal will have
been paid, further reducing the out-
standing balance and increasing the
level of the remaining debt margin
against which new issues may be au-
thorized for the funding of capital im-








provements within the limits set forth
in the Organic Act.
The debt ceiling changes from time
to time, reflecting the periodic changes
in assessed valuation of taxable real
property, as well as the changes in the
amount of the outstanding debt at a
given time. Generally, any significant
change in assessed valuation of real
property is known by April of each cal-
endar year, after the tax assessor has
completed the assessments for the
applicable tax year.
Based upon the most recent advice
of the tax assessor, the present assessed


valuation of real property in the Virgin
Islands is $247,914,452. By applying
the 10 percent formula, the present
debt ceiling is computed to be $24,-
791,445.
Further, by applying the amount of
$19,330,000 now in outstanding issues
against the total debt ceiling of $24,-
914,452 the government is left with a
margin of $5,461,445 which may be
available for new authorizations.
Attached are summarizations in
statement form on the computation of
the debt ceiling and the outstanding
issues.


GOVERNMENT OF THE VIRGIN ISLANDS
Computation of General Obligation Debt Incurring Power
Total assessed valuation of taxable real property as of July 16, 1969........ $247, 914, 452

Total debt incurring authority per Public Law 88-180, 10 percent of assessed
valuation .................................................. 24, 791,445
Less total outstanding bond issues ..................................... 19,330, 000

General obligation debt margin as of August 15, 1969 .................... 5, 461, 445


NOTE: By December 31, 1969 the debt margin will be increased by an addi-
tional $525,000 following the retirement of the following issues:
1965 series to be retired-November 1, 1969 ........................ 200, 000
1967 series to be retired-December 1, 1969 ........................ 160, 000
1968 series to be retired-December 1, 1969 ........................ 165, 000

Total principal payments fiscal year 1970.......................... 525, 000


GOVERNMENT OF THE VIRGIN ISLANDS
Summary Statement of General Obligation Bond Issues

Purposes 1965 series 1967 series 1968 series Total

Hospital facilities: Preliminary planning and acquisition of
land--...--. ..----..-.--.......----------------...----------- $1,000,000 $1,000,000 ..--........ $2,000,000
School purposes: New schools and improvements to existing
schools; part of "crash" school construction program au-
thorized by Act No. 1255 ..--...........------ ..-_---.-----.. 4,200,000 500,000 $3,150,000 7,850,000
College of the Virgin Islands for nurse training facilities.-----..-............. ----------- 102,000 102
Water distribution and storage systems...----....- .........------------- 2,815,000 1,308,000 4,123,000
Water production systems (V.I. Water and Power Authority)..------------- 2,600,000 2,00,000 5,500,000
Sewers and sewerage disposal facilities..------.....-------- ....--...------------ 470,000 470,000
Total issues .........-----------... ------------ 5,200,000 6,915,000 7,930,000 20,045,000
Payments against principal to date for retirement of bonds-..... 560,000 155,000 ...-------. 715,000
Amount outstanding. --. ------------- 4,640,000 6,760,000 7,930,000 19,330,000
Payments to be made against principal during fiscal year 1970... 200,000 160,000 165, 000 525,000
Projected outstanding balance end of fiscal year 1970...--------. 4,440,000 6,600,000 7,765,000 18,805,000













GOVERNMENT OF THE VIRGIN ISLANDS

ESTIMATED BOND DEBT SERVICE REQUIREMENTS

Presently outstanding various purposes $7,930,000 various purposes
serial bonds-1965 and 1967 serial bonds-1968 Total debt service
Fiscal year ending June 30
Principal Interest Total Principal Estimated Total Principal Interest Total
interest at
5 percent


1969..-..-....------ ...............- -..... ------- $350, 000 $508, 345 $858,345 ........----
1970 -..-.....----............------- -........ 360,000 490, 595 850,595 $165, 000
1971 ----------... .....----------------- -....... 380,000 472,095 852, 095 175, 000
1972 ............-................ .....--- 390,000 452,845 842,845 180,000
1973 ................--------------------- ..-.. 410,000 434,870 844,870 190,000
1974....................---- ..----------- ....-- 425,000 418,033 843,033 200,000
1975 -..--..........---------- ..............-- 440,000 400,520 840,520 215,000
1976......-- ... .... ...---------------- ........ 460,000 382,245 842,245 225,000
1977 ........................-------...... ----480, 000 363,080 843,080 235,000
1978------............. -........... ....-------. 500,000 342,950 842,950 245,000
1979 -......................... ..------------ 520,000 321,850 841,850 260,000
1980 ------........ --..................... ... .. 540,000 299,910 839,910 270,000
1981..------........--........--.-----......... 565, 000 277,005 842,005 285,000
1982 ....-- ----................................ 585,000 252,980 837,980 300,000
1983-..---........................ ------------- 610,000 227,867 837,867 315,000
1984 -.................................... ..---635,000 201,693 836, 693 330,000
1985------------------------................--- 665,000 174,330 839,330 345,000
1986-----......... ....... -------------....... 680,000 146,285 826,285 365,000
1987 ---.............-------------------------- 345,000 123,960 468,960 380,000
1988--...---................ .------------------- 360,000 107,040 467,040 400,000
1989 ----------------------------------- ---- 375, 000 89,400 464,400 420,000
1990 ----................. .-------------------- 390,000 71,040 461,040 440,000
1991 ..--..................................--- 410,000 51, 840 461,840 460,000
1992-----...................------- ...... ----- 425, 000 31,800 456,800 485,000
1993 --............------- .............-------. 450,000 10,800 460,800 510,000
1994 --....----............................ --- ---------------------------------- 535,000


$198,250
392,375
383,875
375,000
365, 750
356,000
345,625
334,625
323,125
311,125
298, 500
285, 250
271,375
256,750
241,375
225,250
208,375
190,625
172,000
152, 500
132,000
110, 500
88,000
64,375
39,500
13,375


$198,250
557, 375
558, 875
555, 000
555,750
556,000
560,625
559,625
558, 125
556,125
558, 500
555,250
556, 375
556,750
556,375
555,250
553, 375
555, 625
552,000
552,500
552, 000
550, 500
548,000
549,375
549,500
548,375


$350,000
525,000
555,000
570, 000
600, 000
625,000
655,000
685,000
715,000
745,000
780,000
810,000
850,000
885,000
925,000
965,000
1, 010,000
1,045,000
725, 000
760,000
795, 000
830,000
870,000
910,000
960,000
535,000


$706,595 $1, 056,595
882,970 1,407,970
855,970 1,410,970
827,845 1,397, 845
800,620 1,400,620
774,033 1,399,033
746,145 1,401,145
716,870 1,401,870
686,205 1,401,205
654,075 1,399,075
620,350 1,400,350
585,160 1,395,160
548,380 1,398,380
509,730 1,394, 730
469,242 1,394,242
426,943 1,391,943
382,705 1,392,705
336,910 1,381,910
295,960 1,020,960
259,540 1,019,540
221,400 1,016,400
181, 540 1,011,540
139,840 1,009,840
96,175 1,006,175
50,300 1,010,300
13,375 548,375


Total........-.............................. 11,750,000 6,653,378 18,403,378 7,930,000 6,135, 500 14,065, 500 19,680,000 12,788,878 32,468,878

*Paid by December 1, 1968.


4














CONTROL OE MANUFACTURE OF
WATCHES IN VIRGIN ISLANDS


The period July 1, 1968, to June 30,
1969, saw no significant changes in the
administration of the watch production
quota. After a year in which several
watch companies challenged the valid-
ity of the Federal Government to regu-
late the production of watches, the
companies involved settled down to the
task of operating within the stated
quota.
The local Commerce Department
continues to play an administrative role
with respect to the watch industry, for
it controls the issuance of shipping per-
mits to manufacturers licensed under
the terms of the Federal law. Under
existing procedures the initial alloca-
tion was based upon 50 percent of
watch movements and parts assembled
and shipped during the first 10 months
of 1968. At the same time, any firm
assembling fewer than 15,000 units for
the calendar year would be ineligible
for a quota in 1969.
During the calendar year 1968,
watch movements and parts were im-
ported as follows: Japan, $5,032,237;
West Germany, $2,226,822; Soviet
Union, $833,198; Hong Kong, $517,-
454; France, $853,088; Switzerland,


$166,384; Italy, $5,004; England,
$5,639; Spain, $332.
There are still 15 watch companies
operating in the Virgin Islands. With
the move of Sussex Watch Corp. from
the island of St. Croix to the island of
St. Thomas, we now have 11 companies
on St. Croix and four companies on
St. Thomas. Four of these companies
now enjoy the privileges of tax exemp-
tion. The 15 companies employ 987
persons and have a combined annual
payroll of $3,526,530. The quota for
1969 is 3,875,580 watch movements
and parts. In fiscal 1969, 3,445,610
movements and parts were exported to
the United States for an approximate
value of $23,128,053. All quotas
granted are subject to possible reduc-
tion or revocation.
A regulation permits the sale or
transfer of the quota provided prior
approval of the secretary of their dele-
gate is secured and provided the firm
sold or transferred remains in the
business as a separate or distinct entity.
The watch industry of the islands pro-
vides year round employment for a
majority of natives. A training program
where employees are sent abroad is also
in effect.


















CONTROL OF PROCESSING

OF WOOLEN YARD GOODS


Pursuant to the provisions of chap-
ter 9 of title 33, Virgin Islands Code,
control over the processing of woolen
yard goods is implemented by imposi-
tion of quotas to limit the flow of such
foreign material into the customs area
of the United States. The ad hoc
hearing board appointed by the
Governor convened during fiscal 1969
for the purpose of hearing testimony
and recommending to the Governor
quotas to be established for woolen
yard goods in the various categories.
Controls are maintained by the im-
position of a 1-cent-per-yard tax
within established quotas and a 65-
cent-per-yard tax on excess over the
quotas.
For the calendar year 1969 quotas
in the following categories were
established:
Linear
yards
Showerproof woolen cloth...... 2, 400, 000
Thermal laminated and ad-
hesive bonded cloth......... 100, 000

Total.................... 2,500, 000
Unused portions of quotas allotted
for calendar years 1967 and 1968
were carried over into 1969. Total
yardage each company received by
category is as follows:


Showerproof woolen cloth:
Linear
yards
Total quota allowed this
year. .................. 2, 400, 000
1968 carryover.............. 1, 174, 406
1967 carryover ............ 1,225, 594
Total................... 4, 800,000
Company apportionment:
Vitex Manufacturing Co.,
Ltd...................... 1,656,138
1968 carryover ............. 224, 406
1967 carryover .............. 619, 456
Net this year ............. 2, 500, 000

Kent Company, Inc......... 493, 862
1968 carryover. ............. 500, 000
1967 carryover............... 606, 138
Net this year............. 1, 600, 000

Amity International Corp.... 250, 000
1968 carryover ............. 450,000
Net this year ............. 700, 000
Totals including carry-
over .................. 4, 800, 000
Thermal laminated and ad-
hesive bonded cloth:
TOTAL quota allowed this
year..................... 100, 000
1968 carryover ............. 400, 000
Total.................... 500, 000


Company apportionment:
Island Manufacturing Co.
1968 carryover .............
Unassigned.................
Totals including carry-
over... ...............


400,000
100, 000

500, 000















OFFICE OF PUBLIC RELATIONS

AND INFORMATION


Personnel: 13


The principal instrument of com-
munications of the Government of the
Virgin Islands is the Office of Public
Relations and Information.
Located next to Government House
in St. Thomas, the office also has a
branch in St. Croix and has retained
the services of a mainland public rela-
tions firm to facilitate and expedite
dealings with the news media in the
United States and other countries.
Efforts of the office are devoted to
two main purposes. First is the cultiva-
tion of tourism, which is the basis of
the islands' economy. Second is the
preservation and development of the
democratic processes in the islands
through a systematic flow of informa-
tion to the people on the activities of
their government.
The office operates through all media
of communications: print, radio, and
television.
Its staff includes writers and photog-
raphers. In addition to providing ar-
ticles and pictures for the various
media, they frequently assist visiting
editors, reporters, motion picture and
television crews on location in the
islands.
The staff also assists in publicizing
the programs of organizations conven-
ing in the islands.
Such a group during the past year
was the Attorneys General Association
with representatives from the Attorney
General's office in 50 States.


Operating Appropriation: $225,540

Another such group was a gathering
of U.S. State Department officials from
posts all over the world who met in
St. Thomas.
Other such events included the
Fifth Caribbean Geological Confer-
ence, the American Public Power
Association meeting and the Caribbean
Conference on Water Desalinization.
Sixty-five members of the National
Press Club were entertained in the
islands as were representatives to the
World Congress of the American Soci-
ety of Travel Agents.
A frequent responsibility in connec-
tion with such programs is the prepara-
tion of press kits tailored to the
interests of the visiting groups.
The staff "covers" events of local or
general interest in much the same way
that a newspaper does and files the re-
sults with appropriate media.
Other duties include writing
speeches, reports and letters for gov-
ernment officials, arranging interviews
for visiting newsmen, recording
speeches and statements on tape for
later broadcast, consulting with various
agencies on matters of policy involving
public relations, and setting up press
conferences.
Although productivity in the field of
public relations is not so simple to
measure as the score in a baseball game,
there are some gages which may be ap-
plied to appraise effectiveness.


373-289 0-70- 3







For instance, the record for the year
shows that the office produced and dis-
tributed 434 news releases, and 388
pictures with captions. There also was
some motion picture production for
showing on television.
Magazine placements were arranged
in a wide variety of publications, in-
cluding Time, Life, Look, Cosmopoli-
tan, Harper's Bazaar, Holiday, Modern
Bride, Town & Country, Reader's
Digest, and such specialized periodicals
as The American Banker, Methodist
Magazine, and the Official Steamship
Guide.
"Tektite I," the underwater experi-
ment off St. John received major cov-
erage by NBC-TV and CBS-TV.
Reporters from the New York Times
and New York Daily News were as-
sisted in their assignments in the islands
as well as journalists from other news-
papers in other parts of the States and
from Europe.
The office provided cooperation in
the filming of a 15-minute color movie


by a crew assigned to St. Thomas by
the Campbell Soup Co. featuring
carnival scenes and reporting on island
cuisine. The company anticipates a
total audience of 25 million over a
period of 2 years.
The photo editor of the Associated
Press was guided about the islands by
an office staff man on a camera tour
which resulted in a full-page picture
feature in newspapers across the States.
A similar layout was distributed by
King Features to millions of readers.
A supplementary service of the office
offers hospitality, when requested by
Government House, to visiting VIP's,
such as Congressmen or Senators or
foreign dignitaries. This usually con-
sists of providing a car and a driver
and a staff representative to accom-
pany the visitors on a tour of St.
Thomas.
The Office of Public Relations serves
as the eyes and ears of the Virgin
Islands Government, as well as its
voice.















OFFICE OF THE GOVERNMENT

SECRETARY


Personnel: 45


Implementation of act No. 2126,
which increased the tax on gross pre-
miums written by insurance companies
in the Virgin Islands from 1 to 2 per-
cent, resulted in a dramatic increase
in premium taxes collected during fis-
cal year 1969.
The new law, which became effec-
tive July 1, 1968, also includes provi-
sions for licensing nonresident insur-
ance agents, nonresident brokers,
independent adjusters and surplus line
brokers, as well as for written exami-
nations for those wishing to qualify
as insurance agents, solicitors, and
brokers.
Substantial increases in the number
of real properties listed on the tax rolls,
as well as increases in assessments and
taxes, were the result of a continuing
effort to locate and assess all real prop-
erty in the Virgin Islands and of the
second, 3-year reappraisal cycle of real
property.
Installation of an IBM 029 key-
punch machine has greatly simplified
operations in this area. All prelimi-
nary work prior to the actual running
of the annual real property tax rolls
and bills is now done in the office of
the tax assessor rather than at the De-
partment of Finance.
The Real Property Manual was re-
vised during the fiscal year to include
a system of appraising condominiums,


Operating Appropriation: $508,594.70

docks, and property used for light
industry.
New corporations continued to be
registered during the fiscal year. At
the same time, the enforcement of
strict compliance with corporate laws
has resulted in the dissolution of some
corporations that failed to meet the re-
quirements of the law.
Although one application for author-
ity to conduct a banking business in
the Virgin Islands was withdrawn, two
remain pending: one for a branch of
a foreign bank, and another from a
group of local businessmen. There is
also pending an application for
authority to conduct a small loan
business, and several other inquiries
have been received.
At the close of the fiscal year, there
were slightly less than 2,000 corpora-
tions registered and authorized to do
business in the Virgin Islands.
Activities in other areas under the
jurisdiction of the office of the govern-
ment secretary continued to reflect the
upward economic trend in the Virgin
Islands. During the fiscal year, volume
in documents recorded and fees col-
lected both showed an increase, due
partly to the increase in the number
of condominiums, a new concept in the
Virgin Islands.
More original passports for travel to
foreign countries were issued this year
than in any other fiscal year. The







period of validity for passports was ex-
tended from 3 to 5 years.
Under the provisions of the Organic
Act, the government secretary served
as Acting Governor from early Febru-
ary, when the resignation of the for-
mer Governor was accepted, until the


inauguration of the new Governor on
July 1, 1969.
See appendix A for tables on: as-
sessments and taxes; insurance fees col-
lected; rum produced; alcoholic bev-
erages exported and denatured alcohol
produced.














DEPARTMENT OF EDUCATION


Personnel: 1625

The year ended June 30, 1969, saw
public school enrollment advance at an
unprecedented rate of 9.5 percent.
Operating budget for the department
also increased 9 percent. Recruitment
of teachers and other professional per-
sonnel continued, in great measure,
from off-island sources. Secondary
schools were adequately staffed except
in some areas of vocational-technical
education, but in elementary schools,
it was still necessary to employ non-
degree teachers to fill many vacancies.
The Government of the Virgin Is-
lands, through the Department of
Education, signed an agreement with
the St. Thomas, St. John, and St. Croix
Federation of Teachers on working
conditions and fringe benefits.
Construction of classrooms contin-
ued at an impressive rate. These class-
rooms consisted of permanent as well as
relocatable rooms.
School enrollment in the Virgin Is-
lands public schools was approximately
14,000, and in the nonpublic schools,
6,000. An enrollment increase of 10
percent is anticipated for the coming
school year.

Curriculum and Instruction
Curriculum review and revision is a
continuing process. New courses have
been added and old courses modified.
In the last school year, English, as a
second language, was offered in Chris-
tiansted Junior High School and St.
Croix Central High School to Spanish-
speaking students who were not ready


Operating Appropriations: $9,748,665

to participate in the regular English
program.
Adult basic education, a federally
supported program, enrolled U.S. citi-
zens and resident-aliens, 18 years of age
or over. Designed to further the educa-
tion of adults who have not completed
the eighth grade, the program provided
two weekly 2-hour sessions in reading,
language arts, arithmetic, and English.
The adult education program pro-
vides training for adults from ninth
through 12th grade. A high school
equivalency diploma is awarded those
who pass the equivalency test and 79
certificates were earned last school year.
The teacher-training program, a
joint project between New York Uni-
versity and the College of the Virgin
Islands, was concluded this year. De-
signed to recruit and develop teachers
who are residents of the Virgin Islands,
the program has been replaced by an
on-island teacher-training program. In
addition to the on-island program, sev-
eral workshops were conducted during
the summer of 1969. They included a
summer traineeship program in speech
and hearing deficiencies directed by the
University of Kansas; family life and
sex education conducted by the Uni-
versity of Connecticut and funded by
ESEA Title III, and a 6-week work-
shop for teacher aides.
A study to determine whether or not
to continue the general course at
Charlotte Amalie High School in St.
Thomas was initiated last year by the
Commissioner of Education. Results of








this study will determine if this pro-
gram will be abolished in St. Thomas
or extended to St. Croix.

Pupil Personnel Services
Pupil services were provided by a
director, guidance coordinator, testing
coordinator, five attendance counsel-
ors, two social workers, 21 guidance
counselors, and eight registered nurses.
School health services are vital and,
during fiscal 1969, 9,792 pupils were
seen by school nurses. A total of 565
were referred to emergency hospital
centers and clinic appointments were
made for 3,742. There are currently
eight full-time nurses on the staff.
Nurses worked with members of the
Insular School Health Committee to
provide a comprehensive school health
program and with members of the local
school health committees in making the
school system and the community
aware of the needs of pupils.
To obtain a more complete assess-
ment of the health status of all pupils,
a new health record was used and in-
cluded as part of the cumulative rec-
ord folder. A new health history form,
developed by the Insular Health Com-
mittee, was completed for each pupil
during preregistration and registration
periods.
In keeping with the plan for health
appraisal, dental examination, physi-
cal examination, and immunization
were done for kindergarten, first, sixth,
ninth and 12th graders and for mem-
bers of athletic teams.

Social Work Services
During fiscal 1969, 240 referrals were
investigated by the two social workers.
Between April 1 and May 15, approxi-
mately 280 children were referred for
special education programs. A new
social history form was devised for
referring students for psychological
evaluation.


The school year 1968-69 was the
second year in which guidance services
were provided in elementary schools.
Four new counselors were employed
bringing the total of elementary
school guidance counselors to seven. A
brochure on "The Role of the Ele-
mentary School Counselor" was pre-
pared and will be distributed to
teachers in the fall. The acquisition of
a vocational guidance counselor at
Charlotte Amalie High School facili-
tated communication between the
vocational department and other seg-
ments of the community. Funds for
the employee were made available
through the vocational and technical
education program.
For the first time, achievement tests
were administered at the beginning
and end of the school year. The Kuhl-
mann-Anderson measure of academic
potential replaced the Lorge-Thorn-
dike intelligence test and was adminis-
tered to grades two, five, and seven.
Approximately 280 children from
the Barrenspot school were tested and
placed in the public schools of St.
Croix. In addition, a total of 37 non-
citizen children were tested for place-
ment in schools on St. Thomas. A
statistical report on the "Differential
Aptitude Test" was completed and will
be distributed by the end of the year.
A testing committee comprised of
guidance counselors and supervisors
was organized to make an in-depth
study of the testing program.
During the year, there was a marked
increase in the number of persons who
applied for the high school equivalency
tests. A total of 367 individuals took
the tests during the period July 1968
to February 1969. Seventy-nine certifi-
cates were awarded to examinees who
attained passing scores and 17 high
school equivalent certificates were
awarded to veterans based on tests of
general educational development, high







school level, administered by the
United States Armed Forces Institute.

Territorial Scholarship Program
The Board of Education approved
territorial scholarships and 20 special
legislative grants were approved for
medicine, law, engineering, police
science, and economics.

Vocational and Technical Education
The Virgin Islands Board for Voca-
tional Education, in cooperation with
the administrative and supervisory staff
of the Department of Education,
worked to improve and expand pro-
grams and services during the past year.
The staff was expanded to include the
following: state supervisor, trade and
industrial education; state supervisor,
office occupations; and state super-
visor, home economics.
These key positions were needed to
provide services and expertise to the
various programs being implemented.
Under the leadership of the State Di-
rector and his supervisory personnel,
programs of vocational and technical
education were administered in the
following schools during the 1968-69
school year:
St. Thomas/St. John
Charlotte Amalie High
Wayne Aspinall Junior High
Julius Sprauve School
St. Croix
St. Croix Central High
Christiansted Junior High
Claude 0. Markoe School
Programs of vocational-technical edu-
cation included agriculture, electronics,
automotive mechanics, building con-
struction carpentry, business and office
education, cosmetology, electricity,
homemaking, hotel and restaurant op-
erations, masonry, plumbing, and
practical nursing.
According to the Division of Voca-
tional and Technical Education, 1,726


students were enrolled in these
programs.
The Division of Vocational and
Technical Education also has the re-
sponsibility for all programs of indus-
trial arts education. During the past
school year, the industrial arts educa-
tion program included the following:
architectural drafting, metals, elec-
tricity, woodworking, mechanical
.drawing, needlecraft, and arts and
crafts.
The Division of Vocational and
Technical Education has been engaged
in operating manpower programs
under the Manpower Development
and Training Act. During the 1968-
69 fiscal year, the administrative staff
initiated several manpower programs
in cooperation with the Virgin Islands
Employment Security Agency. Train-
ing programs in general office clerk,
cosmetology, food and restaurant
training, and salesperson parts were
provided for approximately 50
trainees. Upon completion of the train-
ing programs, the trainees will be
released from the Department of Edu-
cation to the Virgin Islands Em-
ployment Security Agency for job
placement.
In an attempt to meet the health
needs of the Virgin Islands, the Divi-
sion of Vocational and Technical Edu-
cation, in cooperation with the Depart-
ment of Health, embarked upon an
adult practical nursing program in St.
Croix. In September of 1968, 17 adults
started their training. The program
will be completed about September 3,
1969. After receiving their diplomas
from the Department of Education,
the candidates will be eligible to take
the National State Board Examination
for Nurses in November before they
can become qualified licensed practical
nurses authorized to practice in the
Virgin Islands.








Division of Business
Fiscal year 1969 was a year of
further transition for the business
division. Adding to the traditional task
of listing all financial transactions of
education, the business office for the
first time established control proce-
dures in all areas pertaining to ex-
penditures, insuring maximum utiliza-
tion of the taxpayer's dollar.
The following tables reflect appro-
priations and expenditures for fiscal
year 1969:
A. Virgin Islands appropriation-fiscal year
1969:


Division
Office of the Commissioner.....
Curriculum and instruction.....
Business. ....................
Property, procurement and
auxiliary services............
School lunch .................
Grants and contributions and
other. ................... ..


Appropria-
tion
$246, 966
6,035,934
128, 092

972, 296
1,033, 860

1,331,539


Total .................... 9,748, 665
B. Federal Aids Funds and Grants--fiscal year
1969:


Activity
ESEA Title I.................
ESEA Title II................
ESEA Title III...............
ESEA Title V................
ESEA Title VI-A.............
NDEA Title V...............
NDEA Title III ..............
Adult basic education..........
Vocational education ..........
Manpower development and
training....................
Vocational education ..........
School lunch .................
Project Head Start............
Neighborhood Youth Corps....


Amount
$393,317
30, 000
158,738
73, 426
35, 000
20,000
54, 000
28, 000
124, 686

35,750
85, 500
165, 314
410, 103
44,078


Total.................... 1, 657, 912

Pupil Transportation
Cost of pupil transportation in-
creased substantially during the year,
approximately 29 percent over the
amount expended during the preced-
ing year. This was due, in part, to the


increase in the number of pupils trans-
ported, and, in part, to an upward re-
vision of the mileage rates charged 'for
school bus operations in St. Thomas
and St. Croix based on increased oper-
ating costs for labor and materials.
The average number of children
transported daily increased by approx-
imately 33 percent over fiscal 1968.
To some extent, this increase resulted
from an increase in enrollment in
schools being served, but it also re-
flects the public transportation require-
ments of certain schools not formerly
included in the program.
In St. Croix, the St. Croix Country
Day School was added to the pro-
gram, and in St. Thomas, the Antilles
School, and the Apostolic School at
Smith Bay.
In addition to transportation of
pupils to and from schools in regular
daily sessions, a fairly extensive pro-
gram of free transportation of pupils
for field trips and for special events,
including athletic meets, concerts, and
other cultural activities was in opera-
tion during the year.

School Lunch Program

During 1968-69 school year, the
School Lunch Program operated with
a budget of $1,155,574. A total of
2,235,668 type 'A' lunches were
served to the students with a daily
average participation of 12,759. This
was a student participation of 93 per-
cent, an increase of 8 percent over
fiscal 1969.
In addition to normal purchases of
food, 56,311 pounds of federally
donated cut-up chicken, frozen tur-
key, and ground beef were received.
The food service program operation
involves 199 workers, including kitchen
managers, cooks and food service
workers with an administrative staff of
nine workers. A total of 45 full admin-
istrative reviews and 11 partial reviews







were made this school year of all lunch-
rooms in St. Thomas, St. Croix, and
St. John.
Under the program, schools must
serve lunches that meet at least one-
third of a student's dietary needs as
prescribed by the United States De-
partment of Agriculture. All school
lunches are served free in the Virgin
Islands.

Vocational Rehabilitation
An expanded educational program
for the handicapped was also devel-
oped. A survey was instituted on all
Islands to determine the extent of the
handicapped problem, the existence of
architectural barriers and the kind of
services needed. The following activi-
ties were performed by this division:
a statewide study for Vocational Reha-
bilitation, completion of research and
demonstration grant for the Sheltered
Workshop, St. Thomas; training for
St. Thomas at Woodrow Wilson Reha-


bilitation Center; plans initiated for
integrated action plan with Depart-
ment of Social Welfare; vocational
rehabilitation counselor stationed with
Physical Medicine Clinic at Knud
Hansen Memorial Hospital and co-
operative agreement between Voca-
tional Rehabilitation and Employment
Service to provide minor medical care
to MDTA trainee.

Public Information Services
The educational enterprise has be-
come one of the most extensive and
complex of all Government activities.
Because of this growth and complexity,
it is no longer easy for pupils, parents,
and the general public to keep in-
formed on the purposes, changing
methodology, and cost of the school
system. At the same time, it is most
important that they be informed. To
accomplish this end, the Department
of Education has established a Bureau
of Public Information Services. Fi-


As part of a joint program by the Departments of Education and Health, children with
learning disabilities are trained in special classes by teachers specially trained by the Learn-
ing Disabilities Foundation.








nanced under title V of the Elementary
and Secondary Education Act, the
program brings to the attention of the
public day-to-day happenings in the
school system, its programs, and its
projections.
During fiscal 1969, 384 releases were
issued to the communication media
and 99 percent were published. Articles
dealing with unique aspects of educa-
tion in the Virgin Islands appeared in
leading newspapers and magazines on
the mainland. A monthly internal
newsletter, "Virgin Islands Schools",
has been created and is distributed to
school personnel and other inter-
ested persons and agencies. Drafts of
speeches and preparation of radio and
TV scripts were also functions of this
Bureau during fiscal year 1968-69.
Compilation of the school directory,
annual report, and a brochure detailing
the goals and accomplishments of title
I ESEA were prepared.
In the negotiations with the St.
Thomas and St. John Federation of
Teachers and the St. Croix Teachers
Federation, the Director of Public In-
formation was named as a member of
education's team and was responsible
for publicity.

School Plant and Facilites

In order to keep abreast of the
almost 9 percent growth pattern of
our student population, 41 permanent
classrooms and 30 relocatable class-
rooms have been built or are under
construction. The distribution of these
new classrooms follows:
In St. Thomas-permanent classrooms:
Tutu Elementary. ............... 19
Dober Elementary .............. 5
Charlotte Amalie High.......... 5
W ayne Aspinall................. 6
Vocational Shop Building:
Shops......................... 2
Classrooms. .................... 2


In St. Thomas and St. John-relo-
catable classrooms:
Thomas Jefferson Elementary..... 1
Washington Elementary .......... 2
Lockhart Elementary ............ 4
Julius E. Sprauve................ 3
Wayne Aspinall (Recreation)..... 2
Charlotte Amalie High.......... 4
In St. Croix-permanent classrooms:
St. Croix Central High .......... 6
Vocational Shop Building:
Shops................... .. 3
Classrooms. ................ 3
In St. Croix-relocatable classrooms:
Christiansted Elementary:
Classrooms................. 4
Dining rooms............... 2
La Grande Princess Elementary... 2
Claude O. Markoe .............. 4
Grove Place .................... 2

Estimates for capital expenditures,
fiscal 1970, amounting to $6,060,000
follow:
St. Thomas Amount
Elementary School, Burne
Field or V. I. College........ $850,000
Addition to Dober Elementary.. 150, 000
Junior High, eastern St.
Thomas .................. 1, 075, 000
Hotel training building .......... 75, 000
Gymnasium, WASP........... 225, 000
Maintenance workshop........... 75, 000
Teacher housing .............. 225, 000
Roof, WASP ................. 125, 000
Fencing ...................... 25,000
Completion of warehouse....... 60, 000


St. Croix
Elementary School, eastern
St. Croix ..................
Junior High ..................
Hotel training building ........
Gymnasium, Central High .....
Maintenance workshop........
Teacher housing .............
Roof, Central High............

St. John
All purpose room, Cruz Bay ....

Insular
Land acquisition..............
Repair of buildings and
grounds. ...................


850, 000
1, 050, 000
75, 000
225, 000
75, 000
225, 000
125, 000


150, 000


300, 000

100, 000







Federal Aid Programs
Many Federal programs were con-
tinued or initiated and the department
received a total of $1,657,912 of
grants in aid Federal funds. Title I,
Elementary and Secondary Education
Act, was responsible for the second
phase of the Audio-Lingual project.
Reading specialists were employed
to work with nine first grade teachers
in St. Croix and nine in St. Thomas.
Special materials were developed and
utilized. Teachers, supervisors and
principals indicate this project is a
successful innovation that should be
extended to all first grade classes.
Funds allotted for Title II, Elemen-
tary and Secondary Education Act,
were used to obtain library books and
materials. Books and library equipment
were poured into the system at a rate
that exceeded the national average.
This effort was augmented by $25,000
from NDEA Title III.
Project Introspection, Title III,
Elementary and Secondary Education
Act, became operative. Established in
separate but adequate facilities, this
project is designed to develop mate-
rials, textbooks, and pamphlets that
deal specifically with matters indi-
genous to the Virgin Islands and to
project as p e c t s of Virgin Islands
culture.
After several months of planning, an
Educational and Cultural Center was
established in the facilities of the Old
Nisky School located in the submarine
base on St. Thomas. "Project Intro-
spection" is basically a curriculum ef-
fort designed to stimulate the Virgin
Islands' child to achieve self-
actualization.
Project activities are characterized
by consolidating the rich cultural
heritage of the people of the islands,
greater emphasis on the study of
Virgin Islands and Caribbean life, in-
service training of instructional per-


sonnel and local production of instruc-
tional materials relevant to Virgin
Islands and Caribbean life.
The services of this center are avail-
able to the instructional personnel of
all Virgin Islands schools-public and
nonpublic. All activities conducted,
and services rendered, are extended to
the teachers and pupils of the three
islands; St. Croix, St. John and St.
Thomas.
A major accomplishment during this
fiscal year was the production of ref-
erence works for teachers from kinder-
garten through grade 12. Many
teachers do not have access to Virgin
Islands books and other pertinent
references. Therefore, research is done
by the ESEA Title III staff and mate-
rial is prepared in booklet form for
classroom use.
For the handicapped, ESEA Title
V-A and Public Law 85-926 funds
were obligated for teacher-training
institutes in special education and for
the employment of consultants to in-
ventory the handicapped and submit
recommendation for appropriate pro-
grams which could be implemented in
the Virgin Islands. Title V ESEA
provided funds for the Office of Pub-
lic Information Services and the Office
of School Plant Facilities.
Project Head Start, sponsored by
the Office of Equal Opportunity,
served 500 children. Between 125 and
150 youths were enrolled in the in-
school Neighborhood Youth Corps
program. Both summer and regular
school projects were developed.
Emphasis in the elementary schools
continued to be in the area of com-
munication skills. A language arts
guide, completed last year, was dis-
tributed to administrative and super-
visory personnel for in-service work
with teachers.
A pilot project in bilingual educa-







tion for pupils of the kindergarten and
first grades was initiated and imple-
mented at Charles H. Emanuel School
in St. Croix. Subjects are presented in
Spanish for half of the school day and
in English during the other half. This
program will be extended to second


grades this September and, subse-
quently, to other grades and other
elementary schools.
See appendix B for tables on school
enrollment; comparison of high school
graduates and comparison of operating
budget.














COLLEGE OF THE VIRGIN ISLANDS


Personnel: Teaching faculty: 37
Administrative faculty: 32
Other staff: 60

The College of the Virgin Islands
this year began its expansion to a 4-
year baccalaureate program offering
majors in biology, chemistry, English,
mathematics, Spanish, and the social
sciences plus preparation for elemen-
tary and secondary teaching. The first
19 juniors were enrolled in September
1968; the first bachelor of arts degrees
will be awarded in June 1970. An
undergraduate program of specializa-
tion in the marine sciences was ap-
proved to begin in the fall of 1969.


Operating Appropriation: $1,500,000


The college now offers seven 2-year
programs leading to an associate in
arts degree: accounting, business ad-
ministration, construction technology,
executive secretarial studies, hotel and
restaurant management, nursing, and
police science and administration. In
addition, a 2-year transfer program in
business administration, prepharmacy
and preengineering is offered. Author-
ized during the year for the 1969-70
academic program was a premedical
technology curriculum of three years'


Candidates for the associate in arts degree at the College of the Virgin Islands march in
procession to commencement exercises. The college this year expanded to a 4-year program,
will award its first bachelor of arts degrees in 1970.








study at the college and a fourth year
of hospital laboratory training at an
approved hospital training school.
During the year, the National
League for Nursing accredited the
associate in arts degree program.
In the 1968 fall semester the college
enrolled 332 full-time students, an in-
crease of nearly 20 percent over the
276 full-time students enrolled in 1967.
Nearly 1,000 additional part-time stu-
dents were enrolled through the divi-
sion of continuing education, with
evening classes conducted in St.
Thomas, St. Croix, and St. John,
bringing the full-time equivalency to
a record high of 643.
Of the full-time students, nearly 80
percent are residents of the U.S. Virgin
Islands. About 10 percent come from
other Caribbean islands and 10 per-
cent from the U.S. mainland, Africa,
and Europe.
In the fall of 1969, new residence
halls, housing 140 students, and nine
faculty housing units will be completed
and occupied. With other housing, the
residence halls will enable the college
to accommodate approximately 275
students on campus.
The Ralph M. Paiewonsky Library
opened in January 1969, the first aca-
demic building to be completed under
a master plan for the 175 acre campus
in St. Thomas. The eventual capacity
of the library is 100,000 volumes. Pres-
ently there are more than 22,000
volumes and 800 microfilm units.
Construction began this year on a
nursing education building housing
classrooms, a nursing laboratory, con-
ference rooms and faculty offices, and
scheduled for occupancy in the fall of
1969.
In February the college acquired
title to 127 acres in Golden Grove, St.
Croix, valued at $980,000 and deeded
to the college at no cost by the U.S.


Department of Health, Education, and
Welfare.
Development of the St. Croix Cen-
ter to meet the higher education needs
of residents of the islands is being
studied under a Federal grant to the
Virgin Islands Commission on Aca-
demic Facilities. The study team will
make its report to the St. Croix ad-
visory council in the fall of 1969.
Major projects of the college's Carib-
bean Research Institute this year con-
cerned Caribbean conservation, marine
archaeology, insular ecology, fisheries
potential, space science, and interrela-
tionships between the American and
British Virgin Islands.
The institute includes the Virgin
Islands Ecological Research Station at
Lameshur Bay, St. John, the site
selected as headquarters for the Tek-
tite, "Man in the Sea" project. Insti-
tute and Ecological Research Station
personnel assisted the operation in
areas of site survey and evaluation,
communications and general logistic
support, and use of station facilities and
equipment. The base camp supporting
the Tektite program, consisting of 13
buildings constructed by the Navy Sea-
bees, has become a permanent part of
the station.
In St. Croix, the institute has estab-
lished an environmental laboratory
where work in remote sensing tech-
nology is being carried on under
auspices of the National Aeronautics
and Space Administration. A project
director has been selected as one of the
scientists who will analyze the first
physical samples of the moon's surface
material brought back by the U.S.
astronauts.
The college continues to administer
a number of Federal programs related
to higher education. The State Tech-
nical Services Agency projects designed
to serve local business and industry in-
cluded a safety survey of air trans-







portation operations on the three
islands; donation to the college library
of an extensive reference library on
police science, civil engineering, land-
scape architecture and printing tech-
nology; on-the-job surveys by a motor
vehicle maintenance expert who visited
operators of large fleets; sponsorship of
a special course in computer concepts;
seminars for builders, and issuance of a
quarterly newsletter.
Community service projects in-
cluded a forum on Virgin Islands
women and a nutrition education pro-
gram. Training courses for government
employees in housing, relocation, zon-
ing administration, and land use
planning, as well as technical assistance
and establishment of a reference li-
brary, were carried out.
The Virgin Islands extension serv-


ice, headquartered at the St. Croix
center, intensified 4-H Club activity
with training of leaders and prepara-
tion of manuals to make youth par-
ticipation in community programs
available on all three islands. Other
projects included a program of nutri-
tion aid for lower income families, and
efforts to increase the quantity and effi-
ciency of food production.
On March 16, the college marked
the first annual observance of Charter
Day, commemorating the date in 1962
on which Governor Ralph M. Paie-
wonsky signed into law the act of the
Virgin Islands legislature creating the
college. Thurgood Marshall, Associate
Justice of the United States Supreme
Court, delivered the keynote address.
Twenty outstanding library scholars
from the Caribbean, Denmark, Eng-


Students at the College of the Virgin Islands school of hotel management prepare a
gourmet buffet of decorated turkeys and ham.








land, and the United States mainland
met at the college April 17-19 in a
conference on "Sharing Caribbean Re-
sources for Instruction and Research."
As part of a long range plan for
intercollegiate athletic competition,
the college team played basketball
games with four mainland colleges.
The college has also applied for mem-
bership in the Intercollegiate Athletic
League of Puerto Rico.
On June 8, 1969, the college granted
associate in arts degrees to 41 students.
Eleven students received bachelor of
science degrees in education from New


York University. Bayard Rustin, ex-
ecutive director of the A. Philip
Randolph Institute and a leader in
civil rights, gave the principal address.
Since it opened the college has
granted associate in arts degrees to 166
students, most of whom continued
their education at institutions on the
mainland and in Canada. Others are
now working in the islands in govern-
ment and in private industry. In addi-
tion, 23 students who have received
bachelor of science degrees from New
York University through the coopera-
tive program are serving the public
schools.














DEPARTMENT OF HEALTH


Personnel: 1,216

An important overall advance dur-
ing fiscal 1969 was the accreditation
of the islands' hospitals, full accredi-
tation for the Charles Harwood Me-
morial Hospital on St. Croix and
conditional accreditation of the Knud-
Hansen Memorial Hospital on St.
Thomas. Additional beds, clinic, and
office space were also added but it is
evident that inadequacies persist in
these areas. Continued renovation and
expansion is imperative if the islands
are to cope with the population explo-
sion being experienced in the Virgin
Islands community. Two ma jor
planned medical centers, because of
their cost, must await provisions for
funding before any completion date
can be determined.
The general health of the people of
the Virgin Islands continues to com-
pare favorably with that of the Nation
as a whole. The Health Department
realizes its responsibility for continued
improvement in the preventive and
care aspects of community health and
our comprehensive health planning as
presently projected will result in a still
better health picture than presently
exists.

Office of Comprehensive Health
Planning
Six new consumer members were
appointed by the Governor to the
Comprehensive Health Planning
Council during the year to give
broader cultural and ethnic repre-
sentation. There are 22 council mem-


Operating Appropriations: $11,485,601

bers, 15 of whom are consumer repre-
sentatives. Four council meetings were
held during the year.
The council initiated task forces to
study the Islands' health services using
"A Self Study Guide for Community
Health-Action Planning" .volumes I
and II as a tool. Seven task forces were
organized to study health services.
Members of the council were ap-
pointed on task force chairmen and a
meeting was held with this group for
orientation. The council voted for sup-
port of the 314(e) project relating to a
comprehensive program for immuniza-
tion services, venereal disease, and
tuberculosis.
Data and reports have been collected
from the various governmental agen-
cies to initiate a health information
system. Profiles of 28 agencies with
health-related activities have been
compiled.
Staff members have made presen-
tations relating to the agency's work
at the Virgin Islands Public Health
Association's annual meeting, the Pub-
lic Health Division's staff conference,
the Commission on the Status of Wom-
en, and conferences on nutrition, han-
dicapping conditions of childhood, and
alcoholism. They have served on the
task forces of the Vocational Rehabili-
tation Planning Project. The office has
had membership on the Human Re-
sources Commission, the Insular School
Health Committee, and Immunization
Committee, the Citizen Non-Citizen
organization, committees concerned


373-289 0-70---4








with narcotics and alcoholism, civil de-
fense and disaster planning, and par-
ticipated with a committee studying
relationships between maternal and
child health and crippled children,
Medicaid, and the children and youth
project. They have cooperated with
special studies sponsored by the Gov-
ernor's office and participated in
planning activities with the School of
Nursing of the College of the Virgin
Islands.
Four issues of the 4-page newsletter,
"Health Highlights," have been pub-
lished which has a circulation of 1,000.
Ten news releases relating to compre-
hensive health planning activities have
been released through the Governor's
office. A brochure explaining compre-
hensive health planning for the public
is in production.

Division of General Administration
Section 10(c) of Executive Order
No. 9 established, among other divi-
sions, the Division of General Admin-
istration. This division consists of the
Bureau of Business Management; the
Bureau of Health Education; the
Bureau of Vital Records and Statistical
Services; the Bureau of Plant Opera-
tion and Motor Pool; and the Bureau
of Social Services. In practice, however,
the bureaus of health, education, and
social services do not function under
the jurisdiction of the Division of Gen-
eral Administration.
Further, this section provides that
"there shall be at the head of each
division a chief officer, who shall be des-
ignated as the Division Head, who shall
perform such functions as the com-
missioner may prescribe." The title of
"Division Head" was changed to "Di-
rector" in the interest of uniformity
throughout the departments of the ex-
ecutive branch of the Government of
the Virgin Islands.


The Bureau of Business Manage-
ment, headed by a departmental busi-
ness manager, conducted business activ-
ities of the department in addition to
supervision of the Bureau of Plant
Operation and Motor Pool; the Bu-
reau of Vital Records and Statistical
Services reporting directly to the
commissioner.

Bureau of Vital Records and
Statistical Services
A new live birth record was again
established. During the calendar year
1968, there were 2,350 live births
recorded in the Virgin Islands, an
increase of 78 over 1967, the previous
record year. The birth rate was 37.4
per 1,000 population, as compared to
40.1 for 1967.
There were 471 deaths in 1968, an
increase of 98 deaths over 1967. The
death rate was 7.5 per 1,000 popula-
tion in 1968, as compared to 6.6 in
1967. Diseases of the circulatory sys-
tem accounted for 36.3 percent of all
deaths with a rate of 272.3 per 100,000
population.
There was a greater rate of infant
mortality in 1968 than in 1967. Dur-
ing 1968, there were 78 infant deaths
with a rate of 33.2 per 1,000 live births
while during 1967 there were 65 with a
rate of 28.6 per 1,000 live births.
There was also an increase in mar-
riages and divorces in the Virgin
Islands. In 1968, there were 894
marriages and 321 divorces while in
1967 there were 700 and 280,
respectively.
(See Appendix C for table on vital
statistics, age distribution of deaths,
leading causes of deaths, and leading
causes of infant deaths.)
Division of Hospitals and Medical
Services
Since November 1968, Charles Har-
wood Memorial Hospital has had a







regular full-time psychiatrist to look
after the needs of mentally and
emotionally disturbed individuals. Al-
though the hospital does not have a
separate psychiatric unit, provisions are
made to treat patients on a "crisis
center basis." Psychiatric patients are
admitted any time of the day, appropri-
ate treatment is rendered, and these
patients are then transferred to the
Knud Hansen Memorial Hospital in
St. Thomas for further care. Also, an
after-care clinic has been established to
provide a follow-up on these patients
when they have been discharged from
the hospital.
To provide greater medical support
to the community of St. Croix in times
of disaster, a propositioned 200-bed
packaged disaster hosiptal has been
acquired through the Federal Govern-
ment and is in "ready storage" at
Charles Harwood Memorial Hospital.
An operating staff has been assigned
through the cooperation of all elements
of the Department of Health, St. Croix,
and volunteers are expected to partici-
pate. Further, the hospital disaster
plan has been updated, and the emer-
gency utilization plan incorporating
the packaged disaster hospital has been
published.
During the fiscal year, numerous
power outages occurred because the
100-kilowatt standby generator could
not carry electric current load for the
Charles Harwood Memorial Hospital
and the new wing. Recurring incon-
veniences throughout the hospital,
ranging from dim-outs to actual mal-
functions of essential equipment, neces-
sitated the purchase and installation of
a 200-kilowatt generator which is now
a standby. The 100-kilowatt generator
is still on hand, and may be over-
hauled to serve the general needs of the
200-bed civil defense packaged disaster
hospital.


Greatest emphasis in the operation
of St. Croix hospitals, Charles Har-
wood Memorial Hospital and the
Ingeborg Nesbitt Clinic, during the
fiscal year has been on better direction,
and continued improvements in activi-
ties and services within the hospital.
The hospital construction started in
the previous fiscal year has now been
completed, and concentration of efforts
in fiscal year 1969 has been in the best
use of these new facilities. Occupancy
rate at Charles Harwood Memorial
Hospital of 90 percent shows a great
need for further expansion.
The Knud-Hansen Memorial Hos-
pital in St. Thomas was engaged in a
program of renovation, modernization,
and accreditation activities throughout
the fiscal year and was accredited for
1 year by the Joint Commission on
Accreditation of Hospitals. Deficiencies
of space and building layout focused
work on renovating areas which could
be expanded, rearranged or improved
by the addition of new equipment for
several departments, and by reorgani-
zation of medical staff and revision of
all operating policies and procedures.
This work was accomplished even as
hospital services continued the same
growth rate and health department
officials prepared for second inspection
and full year-end approval for 3 years
in June 1969.
Highlights of the year included com-
pletion and activation of the outpatient
and pediatrics annex begun the pre-
vious fiscal year; renovation and ex-
pansion of the hospital nursery;
construction of a new pharmacy and
waiting room for clinics; enlargement
of the emergency room and treatment
area; addition of one operating room
and operating room office; and addi-
tion of an X-ray diagnostic room and
office. Nine beds were added to the
surgical ward and two beds to the
obstetrics service. Work was completed








on conversion of one ward to a central
sterile supply; conversion of the former
pharmacy into a new recovery room;
conversion for hemodialysis facilities
within the surgical ward; conversion
of the formula room into a salad and
nourishment room; conversion of lobby
spaces to offices for admitting and per-
sonnel; conversion of former clinics
into offices for nursing administration
and social service; renovation of old
psychiatric rooms into an occupational
therapy workshop and offices for the
psychiatrist and staff. All areas required
planning of new equipment and mate-
rials; adjustment in hospital routines
and coordination with other sections in
the department. The changes and im-
provements have had a remarkable
effect on the morale and working con-
ditions in all the areas of the hospital.
Plans on the drawing board include
those for additional medical ward beds
on the top floor and cafeteria seating
on the ground floor. Plans which were
developed but were not implemented
during the year were those of increased
work space for the administrative serv-
ices and for maintenance, housekeep-
ing, and laundry on the ground floor.
New equipment and several changes in
routines are in the working stages but
need better facilities to produce the
results anticipated.

Bureau of Health Insurance and
Medical Assistance
The Bureau of Health Insurance and
Medical Assistance, organized within
the office of the Commissioner of
Health, administers and implements
the provisions of two Federal programs,
title XVIII (Medicare) and title XIX
(Medicaid).
The highlights of activities under
Medicare involved the recertification
of four approved facilities based on
continued compliance with conditions
of participation under the Federal


health insurance program; providing
consultation to potential applicants of
independent laboratories; preparation
of basic statement of policy and proce-
dures regarding status of Medicare
patients served by physicians employed
by the Department of Health; and the
implementation of the "Buy-In" agree-
ment. At the end of the fiscal year, the
bureau was paying premiums for 1,111
individuals over 65 years of age who
meet requirement of eligibility under
title XVIII and title XIX.
A total of 1,474 Medicare claims
under hospital insurance were proc-
essed for payments totaling $373,103.
A total of 1,311 claims under medical
insurance were processed for payments
totaling $102,005.
A total of 5,569 families (19,116
individuals) were accepted and re-
certified eligible under all medical
assistance categories. Approximately
32 percent of the Virgin Islands' pop-
ulation was eligible under the program.
An estimated total of 55,940 medi-
cal assistance recipients (duplicated
count) from all categories received
medical services during the year.
In view of the growth and com-
plexity in the medical assistance pro-
gram and future trends envisioned by
the new Federal administration, appro-
priate administrative adjustments must
be made early next fiscal year. The
recruitment of the professional staff
must be completed and the full coop-
eration of the administration is needed
to achieve the program's goals.

Division of Public Health Services
Significant advances were made by
the Public Health Services Division of
the Virgin Islands Department of
Health, in the continuous fight to
conquer communicable diseases, to im-
prove the health and well-being of the
community, and to make the Virgin
Islands a healthy place in which to live.







There were no major epidemics of any
communicable diseases, and such major
disorders as heart disease, cancer, and
diabetes showed a marked downward
trend in mortality rates.
Two immunization teams working in
St. Croix and St. Thomas, maintained
adequate immunization of 98 percent
of the schoolchildren against diptheria,
tetanus, pertussis, poliomyelitis, and
smallpox. Special campaigns were con-
ducted against tetanus in St. Croix and
St. Thomas. A project grant was re-
ceived from the U.S. Public Health
Service for the mumps vaccination pro-
gram and the ruebella vaccination
program project request has been sub-
mitted and approved to be effective in
the next fiscal year.
The morbidity rates of tuberculosis
remain low. The emphasis continues
on eradication of this disease which
thus far has also maintained a very low
mortality rate. For the past 5 years,


the number of deaths range from 0 to
1. A public health physician and nurse
successfully completed the course in
the control and management of tuber-
culosis offered by the National Com-
municable Disease Center, Atlanta, Ga.
The most significant development in
the delivery of health services was made
by the initiation of the health outreach
program which secured medical mobile
units for St. Thomas and St. Croix. A
team of public health physicians and
nurses, along with communicable
disease investigators, has been conduct-
ing an extensive immunization pro-
gram in the outlying districts, where
there are low social economic groups
and where there are no facilities for
clinics or medical services. This pro-
gram has been coordinated with the
community action group of the anti-
poverty program.
Once more, the home care program
was certified by the Bureau of Health


Blood samples are tested in the Islands' up-to-date hospital laboratory facilities.







Insurance and Medical Assistance as
the Home Care Agency for the Depart-
ment of Health of the Virgin Islands.
Services have been expanded, particu-
larly in the area of dental care, to the
clients of the home care program.
As a result of the increased load for
laboratory services, a new laboratory
has been planned in Frederiksted
which will provide for serology, water
and milk testing, and parasitology.
Construction was completed on the
new Public Health Clinic, which will
be utilized for the dental and public
health clinics. The dental section has
been placed under operation, and the
public health clinics will be initiated
in July 1969. The bureau of nutrition
services concentrated on a community
education program through seminars
to assist field workers in the use of
surplus food products. Several demon-
strations were conducted for public
health staff physicians and nurses in
food preparation utilizing low-cost
products.
As part of the accident prevention
program, demonstrations on highway
safety were conducted in St. Thomas
and St. Croix. Consultants from the
U.S. Public Health Service partici-
pated in these demonstrations.

Division of Maternal Child Health
and Crippled Children
Although the family planning pro-
gram is effective, and the birth rate in
the Virgin Islands has decreased
slightly, a record number of babies were
born in the Virgin Islands, probably
due to migration to these areas of
younger families. There has been a
dramatic increase in attendance at
well-child clinics and maternity clinics,
despite addition of four monthly well-
child clinics and four monthly family
planning clinics where postpartum
patients are also seen. The services are
inadequate to meet the demands and
needs, but no expansion can be con-


templated until additional physicians
can be recruited.
A large portion of the budget is still
being spent for off-island care not
available locally. Several consultants
have been brought in to enhance the
quality of medical and nursing care re-
ceived. Sixth graders were added to tar-
get groups for screening in an effort to
head off the high rate of dropouts by
the end of elementary studies.
Children and Youth Project No. 629,
awarded to the Virgin Islands Depart-
ment of Health, is one of almost 60
others scattered throughout the Nation.
Following initial funding on March 1,
1967, the work started on recruiting
staff, ordering equipment, and renovat-
ing office and clinic space; the latter
activity costing $110,000 in St.
Thomas, and $295,000 in St. Croix.
Except for the initial budget which
covered 16 months and was somewhat
higher, the annual budget approxi-
mates $1,050,000, of which 75 percent
comes from Federal grants and the
remainder from local funds.
Authorized under title V of the So-


Nurses of the Maternal, Child Health and
Crippled Children Division of the De-
partment of Health give immunization
shots as part of a continuing health pro-
gram for school-children.







cial Security Act amendments for an
initial 5-year period, this project is re-
sponsible for establishing and imple-
menting the concept of "comprehensive
and continuous," as opposed to "epi-
sodic," health care to children of low-
income families. Accordingly, the staff
includes pediatricians, nurses, dentists,
dental hygienists, medical social work-
ers, nutritionists, physical and occupa-
tional therapists, speech therapists,
clinical psychologists, laboratory tech-
nicians, statistician, and health edu-
cator.
Statistically speaking, 2,503 children
have thus far been registered for care
under the project. Of these, almost 600
have completed initial medical and/or
dental evaluations and are thought of
as being under health supervision. The
remainder are in various stages of care
and treatment and will reach the stage
of supervision as soon as possible.
The number of patient visits by each
area during the past year was: medical
1,440; dental, 1,310; nursing, 1,370;
nutrition, 366; social service, 1,296;
psychological, 178; speech and hear-
ing, 2,029; physical therapy, 953.
Division of Environmental Health
Reflecting its widened scope of activ-
ity and the increasing importance of
its field of work, the former bureau of
environmental sanitation was elevated
to divisional level within the Depart-
ment of Health and redesignated the
Division of Environmental Health.
The division continued its program
in water pollution control by establish-
ing a permit system for the discharge
of wastewater to the coastal waters of
the Virgin Islands. This includes plan
review, permit issuance, construction,
operation and maintenance inspec-
tions, and effluent monitoring. An ap-
plication was filed and a grant offer
made and accepted for the construc-
tion of the Bethlehem Gut Interceptor;
Krause Lagoon Sewage Treatment


Plant and Outfall. The project will cost
$3,275,000, of which $1,775,950 will
be contributed by the Federal Govern-
ment.
The division established an air pol-
lution control program with the help
of a 3-year establishment grant from
the National Air Pollution Control
Administration.
The Aedes Aegypti eradication pro-
gram terminated by the U.S. Public
Health Service in November 1968 was
reactivated by the division, and incor-
porated in its vector-control program.
Routine inspection programs in water
supply, milk and food processing and
handling, eating and drinking estab-
lishments, and radiological health were
carried out.
The division succeeded in eliminat-
ing nightsoil cans in Frederiksted dur-
ing the year. A substantial reduction
was made in Christiansted, and elimi-
nation of this form of sewage disposal
from the town is expected in fiscal year
1970.

Division of Mental Health
During the fiscal year, the division
of mental health continued to expand
its services to meet more completely the
requirements of the community mental
health concept with inpatient and hos-
pitalization services provided by the
psychiatric unit of Knud-Hansen
Memorial Hospital, and by the general
hospitals.
Basic to the Virgin Islands mental
health program was the operation of
outpatient clinics in St. Thomas, St.
John, and St. Croix. Through these,
the division offered diagnostic and
treatment services, rehabilitation and
after-care and training, and also pro-
vided for research and evaluation and
for consultative and educational serv-
ices to the community.
The training of staff members in the
diagnosis and handling of children suf-







fering for dyslexia was begun. Consul-
tative services of the staff were made
available to various government agen-
cies and community groups which
requested them, including Youth Care
Center, the Courts of the Virgin
Islands, Insular Training School, Head
Start, various public schools, and
VISTA volunteers.
The Day Care program for dis-
charged patients from the neuropsychi-
atric ward and for patients returned
from St. Elizabeth's Hospital continued
with an average enrollment of from
seven to nine patients. Seven mentally
retarded children between the ages of
six and 10 attended a morning group


5 days a week, and 10 children, ages
eight to 13, attended three afternoon
sessions weekly.
In February of 1969, the electro-
encephalography laboratory began to
function with a full-time technician
and a consultant electroencephalo-
grapher making weekly visits to super-
vise the operation and interpret results
of tests.
The first Virgin Islands mental
health educational film, "The Follow-
ing Sea," was produced. Publications
included "A Time to Learn," "Educa-
tion and the Social Climate," and
"Childhood Behavior Problems in
Social Focus."














DEPARTMENT OF SOCIAL WELFARE


Personnel: 426

4 In fiscal year 1969 the department
of social welfare continued to provide
a broad range of social services and
financial assistance to individuals
throughout the Virgin Islands. Three
new day-care centers were opened, a
home-delivered meals program for the
elderly was established, and the "decla-
ration method" was instituted in ac-
cepting applications for financial
assistance.
Financial assistance in all Federal
categories, in addition to local emer-
gency and general assistance grants,
was administered through the division
of family services, which also adminis-
ters the Medicaid program.
The overall reorganization of the de-
partment was a major project during
the 1969 fiscal year. Significant
changes included the merging of the
divisions of family services and aging,
and special programs into the division
of assistance payments and adult
services.
The child welfare division has now
become the division of child and fam-
ily services. The division of vocation
rehabilitation, which up to now has
been part of the department of educa-
tion, will shortly be transferred to the
department of social welfare and will
be the third major division.

Division of Family Services
The division of family services pro-
vided basic services of certifying indi-
viduals and families for financial as-


Operating Appropriation: $2,358,741

distance, protecting children, the aged
and disabled, and rendering social
services in an effort to prevent de-
pendency. Under the title V program,
opportunities were provided for train-
ing and self-employment of low-
income individuals. This program at
year's end was replaced by the WIN
(work incentive) program.
During the fiscal year, total number
of persons aided increased by 74, to
2,903. Expenditures increased by
$8,345, to $852,852. Of this amount,
$549,730 was used for aid to families
with dependent children; $180,500 for
old-age assistance. For the year, the
average payment for persons being
helped was $31.60 per month. The
division was able to close 250 cases
during the year, and 285 were opened.
A new approach to determining the
eligibility for financial assistance was
initiated with the adoption of the
"declaration method." This enables
the department to accept statements
of the applicant or recipient as a basis
for decisions regarding his eligibility
for assistance and the extent of assist-
ance he is entitled to.
During the last 2 months of the
year, the department was reorganized
by merging three divisions and pro-
grams into two divisions. All aid to
families with dependent children and
the developing WIN program became
part of the new division of child and
family services. The remaining pro-
grams of the division of family services








and the division of aging and special
programs were merged into a division
of assistance payments and adult
services.
Included in the category of assist-
ance payments are certification and re-
certification for money payment in the
assistance programs for Medicaid, food
surplus, burial, and quality control. In-
cluded in the adult services category
are cancer care, housekeeping, home-
delivered meals, aging institutions, St.
John sewing project, and the St. Eliza-
beth's Hospital program.

Division of Child Welfare
During the year the division's case-
load increased more than 100 percent
due to the transfer of all AFDC cases
to the division of child and family serv-
ices. The number of families trans-
ferred were 450 and included 1,547
children.
Both children and their parents
must be contacted and services given
as needed. In addition, every AFDC
household, in which there is a recipi-
ent of 16 years or over, must be evalu-
ated for referral to the work incentive
program, the purpose of which is make
permanent, decently paid jobs avail-
able to people on welfare rolls.
The day-care program has again
been expanded by the establishment of
three new centers located in Estate
Tutu, St. Thomas; Christiansted, St.
Croix; and Frederiksted, St. Croix.
Each new center accommodates 35
children.
At the Insular Training School for
Girls, workshops, group sessions and
courses were conducted in family life,
drug abuse, sex education, and danc-
ing. A beauty parlor facility, to give


beauty culture training courses, was
completed in March.

Division of Aging and Special
Programs
A home-delivered meals program
was begun in September 1968, to pro-
vide daily balanced meals to 30 aged
persons who are unable to prepare
their own food. Purpose of the pro-
gram is to avoid institutional place-
ment and to provide dietary modifica-
tions necessary to improve general
health.
A total of 167 men and women were
cared for in two residential and nurs-
ing facilities, Queen Louise Home on
St. Thomas and the Herbert Grigg
Home on St. Croix. Shelter care was
provided for 56 citizens in the Corneiro
Home on St. Thomas and the Alders-
ville Home on St. Croix.
Homemakers service, with a staff of
two housekeepers, assisted six elderly
persons to continue to live independ-
ently in their own homes by providing
daily housekeeping and personal care
services.
Other special programs operated by
the division included the sewing proj-
ect on St. John, which provides clothes
and school uniforms for needy families;
follow-up casework and after-care serv-
ices for patients returned from St.
Elizabeths Hospital in Washington,
D.C.; burial of indigents; and referral
of Virgin Island patients to the Dr.
I. Gonzalez Martinez Hospital in
Puerto Rico for treatment of cancer.
During the fiscal year, the division
distributed more than 1 million pounds
of food through the surplus commodi-
ties distribution program of the U.S.
Department of Agriculture.








































Day care centers are popular in the islands. Mothers who work leave preschool children
with trained supervisors under a government social welfare program.














DEPARTMENT OF COMMERCE


Personnel: 85


The department of commerce con-
tinued in fiscal 1969 to contribute to
the vigorous growth of the economy
of the Virgin Islands through the work
of its principal divisions-the visitors
bureau, trade and industry, and infor-
mation centers in New York, Washing-
ton, D.C., and San Juan. During the
fiscal year, it was recommended that
a fourth information center be estab-
lished in Miami.
Tourism continued to be the islands'
top industry and, in a period of intense


Operating Appropriations: $1,755,824

competition for the tourist dollar, the
Virgin Islands again set new records.
A total of 1,122,311 tourists visited the
islands, a 27 percent increase over the
last fiscal year. Airline and cruise ship
traffic in all three major islands made
significant gains.
The department is also responsible
for a number of important activities
that do not have division status. These
are: on-island public relations, the Vir-
gin Islands Rum Council, control of
the Virgin Islands advertising pro-


Visitors enjoy exploring a spectacular underwater world in the crystal clear waters off
Buck Island reef, St. Croix.







gram, fishing and water sports develop-
ment, and the industrial incentive
board.
The Commissioner of Commerce
serves on the following Governor-
appointed committees: watch quota,
woolen yard goods, water and power
authority, and acts as chairman of the
Virgin Islands industrial incentive
board. He is a member of the executive
committee of the Puerto Rico Conven-
tion Bureau, the Regional Export Ex-
pansion Council of Puerto Rico in the
Virgin Islands, and heads the commit-
tee on tourism for that group.
Late in the fiscal year, the depart-
ment organized an ad hoc committee
on Virgin Islands advertising and
arranged for presentations to the
committee by off- and on-island adver-
tising agencies. The committee was
made up of officials of the insular
government concerned with island ad-
vertising and promotion and of rep-
resentatives of the tourist-oriented
businesses of the three islands. Presen-
tations were made to the committee in
St. Croix as well as in St. Thomas.
Following the presentations, members
of the committee made individual rec-
ommendations in writing. These were
transmitted to the office of the Gov-
ernor for final selection of a new
advertising agency to handle the
Virgin Islands account.

Visitors Bureau
The Visitors Bureau had an active
S and productive year. The number of
cruise ships visiting the Virgin Islands
reached a new high during ficsal year
1968-69. Among them were a num-
ber of maiden voyages to both St.
Croix and St. Thomas, and, for these,
suitable ceremonies including presen-
tation of plaques were supervised by
the Visitors Bureau and presided over
by the Governor.
Cruise ship calls at St. Croix jumped


from 40 last year to 67 during fiscal
1969, and the number of passen-
gers visiting St. Croix increased from
15,782 to 18,388 during the same 12-
month period, a 14 percent increase
in the number of passengers. There
were substantial increases for both
calls and passengers in St. Thomas for
the year ended June 30, 1969, with
491 ships bringing 213,541 passengers
as against 342 vessels and 166,177 pas-
sengers for the previous year, a 22
percent increase in passengers.
The total number of visitors arriv-
ing by plane also gained over any pre-
vious year in Virgin Islands history
with a total of 908,776 arrivals during
fiscal 1969. Air tourism to St. Thomas
and St. John jumped from 481,437 for
fiscal 1967-68, to 542,709 for the year
just ended and St. Croix air tourist
arrivals were up from 166,700 to
209,092.
Antilles air boats further increased
traffic between St. Thomas and St.
Croix. (The convenience of Antilles
air boats arrivals and departures in
the center of the main cities of both
islands has been a material contributor
in increasing visitors to both islands
who would not otherwise make the
trip).
The Visitors Bureau hosted many
government officials and prominent
citizens during the year and handled
visits by travel agents, newspaper and
magazine writers, and radio and tele-
vision personnel, resulting in impor-
tant publicity and promotion for the
islands.
Working with the Commissioner of
U.S. Customs, the Department of In-
terior and other Federal agencies in
Washington, the bureau was able to
clarify certain rulings regarding the
stays of foreign-flag ships in the islands
and certain State laws on importa-
tion of liquor, especially Maryland
and California statutes.







Virgin Islands Information Center,
New York
This center, located in Rockefeller
Center, serves the metropolitan New
York area and, in fiscal 1969, had a
record year. It served more than 12,938
prospective visitors who made in-
quiries either in person, by phone, or
by mail and distributed more than
230,865 pieces of literature, fewer than
the preceding year when the Gover-
nor's Conference created unusual
demands.
Personnel of the center also worked
closely with every segment of the travel
industry with emphasis on booking
group and convention business.

Virgin Islands Information Center,
Washington
This office serves the Nation's Capi-
tal and recorded high levels of activity
during the past fiscal year. The staff
particularly emphasized attraction of
group business to the islands and was
instrumental in arranging many such
visits. In addition, calls were made on
travel agents; 612 requests for in-
formation answered and 29,021 pieces
of literature were distributed.

Trade and Industry
The Virgin Islands economy con-
tinued to reflect considerable expan-
sion-the eighth year in a row, begin-
ning in 1961. All economic indicators
showed substantial gains, with tourism
overshadowing all other sectors. New
records were again attained in external
trade bank debits, employment, per-
sonal income, manufacturing, electri-
cal energy generation and construc-
tion.
Economic progress, however, was
somewhat tempered by a few difficult
problems, including inflation. High in-
terest rates and the 60-day national
stevedore strike both had adverse
effects.


New records were again attained in
Virgin Islands trade, reflecting sub-
stantial increases in the value of im-
ports and exports. Total imports were
valued at $260,160,366, an increase of
50.2 percent over the previous year. Of
this total, approximately $152,393,269
represents imports from the United
States, while $107,777,097 were from
foreign countries. Exports also jumped
from $74.5 million in 1967 to $123.4
million in 1968.
The trade and industry division
participated in the submission of two
protests to the Federal Maritime Com-
mission concerning increases in freight
rates and in conferences with other
Federal agencies including the Eco-
nomic Development Administration,
the Small Business Administration, and
the U.S. Department of Commerce.
During the fiscal year just ended,
the 15 Virgin Islands watch com-
panies-11 on St. Croix and four on
St. Thomas-exported approximately
3,808,528 watch movements and parts
to the United States.
During the period just ended, Ad-
miral Time Corp. was purchased by
Sheffield Corp., and the operations of
Sussex and Virgiline were transferred
to St. Thomas.
The payrolls of these companies
amount to a little over $3 million per
annum and employ approximately
1,000 persons.

Industrial Incentive Board
In fiscal 1969, the industrial incen-
tive board recommended to the Gov-
ernor that 13 certificates of tax
exemption be granted. Only four
recommendations of denials were
made. Three conditional documents
and two extensions of conditional
documents were granted.
Operating experience indicates that
the increase in grants and reduction
in denials have not been at the expense







of the standard established by the act.
Total annual payrolls of tax exempt
firms increased by 24 percent over
fiscal 1968. Total average payrolls per
firm increased over 11 percent in the
same period, while average annual
pay per employee increased over 12
percent.
The industrial inventive program
was specifically instrumental in induc-
ing a large textile firm to invest more
than $2.5 million fixed capital. This
firm will employ more than 225 trained
people. This is considered a big step
forward in providing the islands with
a sound, diversified economic base
from which balanced economic growth
may proceed. The board has continued
the policy of forestering tourism by
granting tax exemption to a $10 mil-
lion luxury hotel resort complex.
Recent provisions of the industrial
incentive act have included condo-
miniums in the tax exempt activity.
This new provision has been very at-
tractive, as shown by the large number
of applications filed. Unfortunately,
legal complications have held up dis-
position of these applications, but two
grants were recommended to condo-
miniums. This included a $1,500,000
project providing 42 luxury suites for
individual ownership and tourist
facilities.
SIn addition to a successful and busy
year, the board has undertaken an
ambitious program to codify and
S streamline its administrative proce-
dures. A committee has been formed to
prepare rules and regulations govern-
ing the board.

Virgin Islands Rum Council
Rum sales continue to grow at a fast-
er rate than sales of any other type
of liquor-up 22 percent in 1969, or
four times faster than the liquor indus-
try as a whole. However, the Virgin


Islands has not shown a comparable
growth in this expanding market.
In 1964, Puerto Rico controlled 65
percent of the total rum market. The
Virgin Islands at the same time control-
led 25 percent. In 1969,Puerto Rico
had increased its share of the rum mar-
ket to 75 percent, while the Virgin Is-
lands had slipped to 18 percent.
In fiscal 1969, the Virgin Islands
shipped 1,651,847 proof gallons of rum
to the United States, approximately 20
percent more than in the previous
year. During the same period, how-
ever, the excise tax returns fell from
$12,998,365 in 1968, to $11,633,873 in
1969-a loss of $1,364,492.
In the past 10 years this unusual sit-
uation of rum shipments being up while
excise tax returns were down, occurred
only once before, 1963. The situation
then was explained by the liquor hand-
book of 1964 as an "inventory situa-
tion in the trade." As they stated "It
would seem that some wholesalers in
large urban areas went into January
1963 with a rum supply in excess of
retail and consumer demand and that
they 'marked off this stock while plac-
ing only token orders."
A similar situation could have oc-
curred last year as indicated by the
erratic record of monthly shipments of
rum for fiscal 1969. This was the result
of over-ordering last year by distribu-
tors in the United States to offset the
then pending shipping strike. July and
August showed unusually large ship-
ments in anticipation of the strike that
came in September.
November orders were extra large,
when the Taft Hartley Act was in-
voked, and March and May were up
following the strike settlement in late
February.
However, this does not fully explain
the $1,364,492 loss in excise tax re-
turns during fiscal 1969. Nor can such
a sudden drop in income be explained







by a lack of sufficient or effective rum
promotion. It is, however, a matter of
record that the original rum pro-
motional budget has been continuously
reduced from $250,000 to as low as
$130,000 at one time. It was slowly
increased later to $240,000, its present
level. This budget is in contrast to an
expected $3 million advertising budget
for Puerto Rico's counterpart of the
rum council.
The advertising budget of the
Puerto Rican rum industry itself in-
cludes Bacardi, Schenley, Heublein,
and other national brands, adds an-
other $3.5 million to Puerto Rico's rum
promotion or a total advertising budget
of $6.5 million.

Public Relations
Current public relations activity in
the Department of Commerce centers
on hosting for the Governor's office.
The hosted people are mainly Asians
and Africans in the Virgin Islands as
part of America's image program for
the emergent nations, conducted by the
U.S. Department of State.
Periodic familiarization and update
travel includes trips to the Washing-
ton, D.C., New York City, Puerto
Rico, and St. Croix offices. Other
mainland cities and Caribbean islands
are visited for seminars, conventions,
and conferences.

Fishing and Water Sports
Value to the islands of the water
sports "industry" reached a new high


in 1968-69, and facilities in being are
more numerous than ever before.
Water sports now account for ap-
proximately 15 percent of Virgin
Islands tourism income. Thus, water
sports have become "big business" for
the islands. The 15 percent figure
which is conservative was arrived at
through more than 80 personal inter-
views with members of the industry
made by the director and the assistant
director during July and August of
1968.
The largest charter sailing fleet in
the Caribbean now "home ports" in
the three Virgin Islands. Actual count,
at the height of the season, was
201 "bare" and "crewed" sailing yachts
available for charter-up from ap-
proximately 125 the previous season.
Regular telephone contact was main-
tained with water sports people on
St. Croix and St. John as well as St.
Thomas. Office "information sheets"
covering all facilities on all three
islands are up-dated quarterly.
See appendix D for tables on:
Amount of tourist expenditures-
$112,268,245.
Comparison of air traffic passen-
gers-968,776.
Comparison of cruise ship passen-
gers-491 ships; 213,541 pas-
sengers.
Distribution of wages and employ-
ment.
Tax exempt business subsidy
payments.
Watch movements and parts
shipments.


* 4













DEPARTMENT OF AGRICULTURE


Personnel: 147 Full-Time
3 Part-Time

S The 1969 fiscal year was marked by
excellent progress in implementing
existing programs and by the initiation
of significant new programs aimed at
furthering up-to-date practices in
farming, soil and water conservation,
and the breeding and raising of
livestock.
This year, most of the resources of
the Department of Agriculture were
directed to the continuation of the
grain sorghum program, initiated last
year as part of a search for a practical


Operating Appropriation: $1,991,766


crop for St. Croix, and as a means of
reducing the cost of producing beef
and milk on the island.
The tick program, undertaken last
year after the bont tick was discovered
in a small area around Frederiksted,
has been highly successful, and no bont
ticks were reported during the 1969
fiscal year. By the end of the fiscal 1969,
approximately $373,000 in local funds
had been spent on the tick eradication
program.
A fruit tree propagation program


VS-*;r


Under a continuing program of agricultural research and development, new crops are
being grown to replace the phase-out sugarcane industry.


373-289 0-70---5







initiated in 1968 to replace destroyed
trees and to increase the number and
quality of fruit trees in the Virgin
Islands continued to show excellent re-
sults this year. New programs initiated
during the year included importing of
goats and pigs, intended to rejuvenate
the bloodlines of local animals.
Many of the steel buildings pur-
chased from a firm in Puerto Rico were
erected this year: a building 320' x 80',
used as an equipment shelter and
garage; another building, which will
be used as a marketing center; and a
third building, to be used as a forestry
and horticultural center.
The farmland exemption bill was
approved by the legislature of the
Virgin Islands on March 29, 1968. The
bill provides a tax exemption of 75
percent on farmland, including struc-
tures and improvements thereon, used
actively and solely for agricultural and
horticultural purposes.
For the tax year 1968, 79 individuals,
firms, and corporations filed 141 ap-
plications, which were certified by the
commissioner of agriculture in accord-
ance with the farmland exemption
refund rules and regulations. Applica-
tions for exemption were requested
on 14,899.88 acres, and a total of
14,022.10 acres was granted a 75 per-
cent reduction in real property taxes.
Grain Sorghum Program
It has been proved by the planting
of more than 15 varieties that grain
sorghum can be grown and harvested
economically in the Virgin Islands.
The current program may have dra-
matic effects on the future of agricul-
ture for the Virgin Islands. Sorghum
can be adapted to the feeding of
different species of livestock, and be-
cause it is adaptable to many soil and
water conditions, there is an excellent
chance that hundreds of idle acres in
the Virgin Islands could become
productive.

62


This year, about 140 acres of gov-
ernment-owned land was planted in
sorghum. In addition to this govern-
ment acreage, another 300 acres were
planted on five privately owned farms
on St. Croix.
In conjunction with the growing of
sorghum, a silo was erected in Estate
Lower Love to store grain during the
dry season, when grain is difficult to
obtain and farmers lose large numbers
of livestock.
Soil and Water Conservation
Program
This program is administered by the
board of supervisors, the Virgin Islands
soil and water conservation division,
and the U.S. Soil and Water Conser-
vation District.
Dams are now being built at the
rate of one per month under the Vir-
gin Islands dam building program,
administered by the Department of
Agriculture. On the Island of St. Croix,
there are now approximately 200 earth
dams, with a total capacity of 359
million gallons. On St. Thomas, there
are approximately 42 dams with a
capacity of 43 million gallons. St. John
has nine dams with a capacity of 24
million gallons. This program is impor-
tant as a source of water stored during
dry weather and to raise the water
table in the islands.
Under the unified agricultural con-
servation program for the Virgin
Islands, the following activities were
carried out: brush control, 2,879 acres;
farm pond construction, 10; irrigation
pipelines, 8,909 feet; pasture planting,
37 acres; troughs or tanks, 5 tanks;
farm pond renovating, 15 ponds; and
wells, 19.

Marketing
The department's marketing service
continued its distribution of both crops
and livestock during fiscal 1969. Crops
distributed included mangos, papayas,







soursops, tomatoes, peppers, cucum-
bers, and yams. Livestock distributed
included, cattle for beef, sheep, goats,
and pigs.

Abattoirs
During the year ending in June
1969, almost 5,915 head of livestock
were slaughtered in the St. Croix and
St. Thomas abattoirs.

Land Preparation Service
The department's heavy equipment
served most of the farmers requesting
land clearing, plowing, or seed
bed preparation. Approximately 3,500
hours of plowing, harrowing, banking,
and bulldozing were provided by this
service during fiscal 1969.

Other Services
The department furnished citizens
other important services during the
fiscal year. Forage choppers served
livestock farmers with 4,500 tons of
green chopped feed; 18,700 gallons of
molasses were procured for livestock
farmers, and both products were made
available at 50 percent of the market
price. Emergency livestock grains
amounting to 450.55 tons were distrib-
uted during the year on the subsidy
program.
A major fruit tree propagation pro-
gram, initiated in 1968, was continued.
Because of drought, destruction of
trees, and other causes, there has been


a serious deficiency in the number and
quality of fruit trees in the islands.
During fiscal 1968, the Department
of Agriculture initiated a massive pro-
gram to combat this situation. During
fiscal 1969, 39,672 trees, secured from
local sources, the British West Indies,
and Puerto Rico, were distributed.
A herd of about 30 milking goats
was purchased in Waco, Tex., to re-
juvenate the bloodlines of local herds.
Many ewes from local herds have re-
ceived service from rams in the depart-
ment's flock which, since its arrival,
has increased in size due to new births.
During this period, a shipment of
purebred pigs from Puerto Rico was
also received. Most of the sows have
given birth to a litter, and the baby
pigs will be sold to farmers for the
strengthening of their herds.
Division of Veterinary Service
The division continued to serve
farmers of St. Croix, experiencing a
relatively disease-free period. Hog
cholera cases have reached a new low
since the Virgin Islands have complied
with recommendations by eliminating
use of vaccine.
The tick eradication program con-
tinued with success. No bont ticks were
found between July 1, 1968, and
June 30, 1969. During the fiscal year,
more than 46,000 animals were
dipped, including 33,586 cattle, 7,268
sheep, 3,885 goats, and 1,692 horses,
mules and donkeys.














DEPARTMENT OF LABOR
Operating Appropriation: $553,342


Fiscal 1969 saw the start of work on
the rehabilitation of the Department
of Labor building in Christiansted,
which will result in better coordination
within the department, in that the of-
fice of the commissioner and those of
his staff, formerly located in separate
buildings, will be in the same building.
Also of major importance was the
preparation of rules and regulations
governing the conduct of hearings and
other proceedings before the Depart-
ment of Labor. In order to develop the
most comprehensive rules possible, a
committee of seven, representing a
cross section of the community, was
formed. Rules were then drafted and
submitted to members of the Virgin
Islands bar, management, labor, and
others for review and comment.
When the rules are published, they
will become part of the Government's
rules and regulations, pursuant to
title 3, chapter 20, section 358 of laws
of the Virgin Islands.
Training of the staff has continued
as one of the department's top priority
efforts. During the fiscal year, efforts
were made to develop a training pro-
gram in cooperation with the Institute
of Labor IRelations of the University
of Puerto Rico, the College of the Vir-
gin Islands, and the division of
personnel.
The overall training program also in-
cluded seminars, conferences, and
training sessions covering such topics as
collective bargaining and investigation
of unfair labor practice cases.


The classifications of payroll in-
spector and enforcement officer were
reclassified as labor officers by the divi-
sion of personnel, with increases in
salaries and the new qualification that
both these positions require an associ-
ate in arts degree.
In August 1968, the Virgin Islands
were joint hosts with Puerto Rico to the
joint conference of the Association of
Labor Mediation Agencies.
This year, the Governor appointed
the Commissioner of Labor to the
chairmanship of CAMPS (cooperative
area manpower planning system), a
group responsible for the development
and coordination of central planning
for all agencies and programs con-
cerned with manpower development
and utilization. Present plans call for
setting up the CAMPS secretariat as
an independent group, funded feder-
ally, and operating under the super-
vision of the State chairman.
Division of Labor
During the year, payroll inspections
increased, both because of the increase
in the number of businesses and the
employment of additional labor offi-
cers. Payroll inspections totaled 1,046,
a decrease of 1,055 over the preceding
period. Back pay due employees as the
result of facts disclosed by these investi-
gations amounted to $34,509, up
$20,432 from last year's figure.
There was continuing activity in the
area of union representation and cer-
tification by the department. Certifica-


Personnel: 72







tions issued to labor organizations
totaled 17 for the year.
This year, the Government Em-
ployees Association, a local of the
Virgin Islands SIU, AFL-CIO, was
active in organizing government em-
ployees. As set forth in Executive
Order No. 68-1964, the department's
responsibility in this area is limited to a
determination of (1) the showing of
interest by the petitioning union, and
(2) the appropriateness of the unit.

Alien Labor
While no precise facts and figures
are available, the number of nonciti-
zens is estimated at between 15,000 and
20,000, which would be about 20-28
percent of the total population. It is
also estimated that they constitute
about 49 percent of the total labor
force. This influx poses difficult prob-
lems in all areas of community con-
cern, including housing, welfare, public
safety, economics, and education.
During the year the senate of the
Virgin Islands established the Commis-
sion on .the Status of the Noncitizen.
The commission is comprised of 17
members, including six senators, repre-
sentatives of the clergy, management,
labor, the public, and government
officials.
A report of the commission is due in
September or October 1969.

Unfair Labor Practice Cases
Continuing improvement in labor-
management relations is reflected in
the fact that filing of unfair labor prac-
tice charges continued to decline this
year. A significant change, too, has
been the trend to the resolution of dis-
putes through settlement agreements.
This year, only 311 charges were filed.
Of these, all were settled informally.
It is noteworthy that work stoppages
have been few, infrequent, and of short
duration. Under its statutory authority,


the department moved promptly to re-
solve these problems at the earliest
possible stage.

Application for Employment
As in the past 3 fiscal years, the de-
partment continued to place residents
in practically all job classifications in
private industry. This action was due
to a combination of factors including
administration of the resident prefer-
ence statutes and the recruitment
program.

Division of Apprenticeship and
Training
This year, nine certificates, giving
them journeyman status s, were
awarded to apprenticeship trainees, a
decrease of five over last year. At the
close of fiscal 1969, the number of ap-
prentices registered were 66, 10 of
which are new.
Giving impetus to this program has
been the increased demand for more
trained workers in the skilled trades.
Efforts continue to enlarge programs,
explore new possibilities, promote
wider participation in Federal and
local programs, and increase employer
support.

Division of Veterans Affairs
Preparations were made for the 23d
annual convention of the State Direc-
tors of Veterans Affairs, which is to
be held in St. Croix the week of Sep-
tember 19. The legislature showed its
full support by appropriating $13,000
for the convention.
The division was officially recog-
nized and accredited by the Veterans'
Administration, Washington, D.C.,
this year, which permits it to prepare,
present, and execute claims arising
under statutes administered by the
Veterans' Administration.
Efforts continued toward the de-
velopment of an effective guaranteed







loan program for veterans. This year,
20 VA loans were extended to veterans
in the Virgin Islands, totaling $46,700.

Workmen's Compensation
Cost of workmen's compensation this
year was $393,301, an increase of
$59,451 over last year. This includes
disability, temporary and permanent
total disability, temporary and perma-
nent partial disability, death compen-
sation, medical costs, including trans-
portation, and medical fees.
Operating budget for the division
was $160,465. The method of financ-
ing the cost of administration, as well
as the payment of claims, is from the
revenues by the Government insurance
fund in premiums and interest from
investments.
The number of fatal'accidents was
1,525 this year, at a cost of $393,301.98.
Installment benefits in these cases ex-
tend for 40 months.
An increased number of safety in-


spections were made, bringing the
total from 1,560 for fiscal year 1968,
to 3,340 for fiscal year 1969.
Two amendments to the chapter on
workmen's compensation were made.
The first would provide for a more
flexible procedure for filing claims and
the payment of premiums. The second
would permit Government employees
injured on the job to receive full pay
to the extent of accrued leave up to
90 days and to have the used leave
restored by workmen's compensation
paying the award to the employing
unit for the lost time due the employee.

Virgin Islands Wage Board
The wage board issued its Mini-
mum Wage Order No. 8 and Mini-
mum Recruitment Wage Order No. 2,
effective May 7, 1969. This order was
published in the Virgin Islands Regis-
ter, whereupon it became official and
applicable to each industry and classi-
fication listed.















DEPARTMENT OF CONSERVATION
AND CULTURAL AFFAIRS


Personnel: 185

The Department of Conservation
and Cultural Affairs is the newest of
the executive departments of the Gov-
ernment of the Virgin Islands. It was
established by act No. 2238, approved
July 1, 1968 and organized as an oper-
ating department on October 20, 1968,
pursuant to Executive Order No. 119-
69.
The major on-going activities which
were transferred from other depart-
ments of the government, are parks and
beaches, recreation and sports promo-
tion, libraries and museums, beautifica-
tion, and the Council on the Arts.
Other areas of responsibility include
fish and wildlife, trees and vegetation,
and water resources; air pollution and
water pollution; flood control; mineral
and other natural resources and preser-
vation of historical and architectural
heritages of the Virgin Islands.
Another area of activity includes the
establishment of close liaison with
Lawrence Halprin and Associates who
have been engaged by the Government
of the Virgin Islands to prepare a com-
prehensive design plan for the Virgin
Islands.
The department is administering the
Virgin Islands conservation fund into
which oil royalties amounting to $2.7
million annually are deposited pursu-
ant to an agreement between the Gov-
ernment of the Virgin Islands and Hess
Oil Corp. Appropriations were re-
leased for outdoor recreation; parks
and beaches, including acquisition of


Operating Appropriations: $1,401,100

land and beaches; development of his-
torical sites; beautification including
programs and projects for the restora-
tion and enhancement of the scenic
beauty of the Virgin Islands; projects
of the arts council, including the Vir-
gin Islands Institute of the Arts; com-
prehensive design and planning of
environmental resources preservation;
and development of public television
in the Virgin Islands.

Land and Water Conservation Fund
Act Program
The department serves as the state
liaison agency for the Land and Water
Conservation Fund Act program ad-
ministered by the Bureau of Outdoor
Recreation, U.S. Department of the
Interior. This program provides funds
for and authorizes Federal assistance
to the States for planning, acquisition,
and development of outdoor recrea-
tional facilities. Planning grants were
received and phase I of the Compre-
hensive Islandwide Outdoor Recrea-
tion Plan for the Virgin Islands was
completed.

Bureau of Recreation and Sports
Promotion
Activities-Summer Program
Baseball: A total participation of 22
baseball teams comprised of 350 boys
between the ages of 9 to 17. The teams
are broken down into two categories-
Little League and Pony League.

































As part of the stepped-up activities of the new Department of Conservation and Cultural
Affairs, schoolchildren join in an island-wide clean-up and beautification program.


Basketball: Participation of 330 boys
in 30 teams divided into biddy, inter-
mediate, junior, and open.
Recreation centers: The center in
St. Thomas provided a summer day
camp for children between the ages of
7 to 14 besides its regular activities.
St. Croix center provided the regular
activities. These included arts and
crafts, sewing, table tennis, etc.
The Bureau, together with the vari-
ous federations of the Virgin Islands,
sponsored women's softball, biddy bas-
ketball, junior basketball, baseball
games involving the total community
were assisted by the bureau. These
included triple "A," class "A," and
superior league. The bureau sponsored
several track and field meets and as-
sisted in the cross-country runs spon-
sored by the sportsminded merchants
and businesses.


The program for the aged has been
well established and doing fine in St.
Thomas; the program is still in the
formative stage in St. Croix. Stage
shows, talent shows, professional box-
ing, religious rallies, etc., have used the
facilities of the bureau.

Facilities-St. Thomas
Emile Griffith Park is one of the
better kept areas. Its primary use is
for softball. Lighting facilities have
been improved. Restrooms have been
provided and general maintenance
good. The bleacher situation fluctuates
with activities in other areas. Needed
is the installation of permanent seating
facilities.
The French Town ballpark is used
primarily for softball. Needed are dug-
outs, toilet facilities, and seating
facilities.







Lionel Roberts Park is the most used
and'abused recreational area. Baseball
is what it was constructed for, but
talent shows, stage shows, boxing (pro-
fessional), are also conducted there.
Smith Bay and Nadir are areas that
require complete development. There
are other areas within St. Thomas that
can be developed, but acquisition is
first priority.
The recreation center is the focal
point of most of the activities con-
ducted. The total area is rather small
for planned programs; activities are all
geared toward the general community
use.

St. Croix
D. C. Canegata Park is used as a
general sports area. There are base-
ball fields, softball fields, soccer and
cricket fields, tennis courts and basket-
ball courts.
The Paul E. Joseph Stadium is used
for softball and baseball. The total area
could be or should be improved to
bring the area up to standard.

Virgin Islands Libraries
Public libraries circulation increased
by 5,221, totaling 85,270 volumes
loaned for home use, or a per capital
of 2/2 books.
New readers, 975; showing a total
registered borrowers of 5,108 in three
islands.
Volumes
New volumes added.............. 10, 207
Replacements. .................. 2, 391
Discards & withdrawals .......... 867
Reference queries answered from
the Von Scholten collection:
In person, including students. 784
By letter and telephone....... 110
Talking books for the blind bor-
rowed........................ 241
Special Caribbean books borrowed. 420

Publications: Catalog of Microfilms
1969 (March); Theses on Caribbean
Topics 1969 (June); Biographical


Listing of Governors 1665-1917 (in
press); Periodical accessions listing.
Conference participation: The fol-
lowing conferences were held towards
greater participation in Caribbean
library development:
1. Association of Caribbean Univer-
sities and Research Institutes and
Libraries (ACURIL). Initial
conference at Heads of Carib-
bean Universities Conference in
Puerto Rico. Library section
(Nov. 1968).
2. Inauguration of the College of
the Virgin Islands Library, St.
Thomas (March 1969).
3. Co-Sponsor with Corporation for
Economic Development of the
Caribbean (CODECA) of Puerto
Rico-Virgin Isl hands Library
Conference, in Puerto Rico (June
1969).
4. Association of Caribbean Uni-
versities and Research Institutes
and Libraries, Puerto Rico (June
1969).
5. Seminars on the Acquisition of
Latin American Library Mate-
rials, conference (June 1969).
Virgin Islands Library assist-
ants trained in Puerto Rico at the
Caribbean Regional L i b r a r y
for computerized bibliographical
compilations and collaboration
with Caribbean Regional Library
for the "Current Caribbean
Bibliography."
Photoduplication laboratory was
improved by the addition of Diazo
jackets equipment, and other small
pieces of equipment for total service.
Microfilm holdings were increased
from 970 to 1,624 items. The filming
of all the inactive files of the Division
of Personnel were reduced to 30,000
feet, totaling 9,000 jackets completed;
of these, 4,500 Diazo duplicates were
sent to the Division of Personnel,
with security negatives (4,500 mylar







jackets) stored at the library. The De-
partment of Health's reports of vital
statistics for 1967 and 1968 were
filmed on 16 rolls, or 1,600 feet of
16mm. film in a 2-week period. Rob-
ertson vertical copy camera and
vacuum frame for platemaking were
purchased, and a 1250W model Multi-
lith press was also acquired by the
library.
Interlibrary cooperation: Joint spon-
soring of library conference for the
Caribbean between Corporation for
the Economic Development of the
Caribbean (CODECA), Puerto Rico,
and the Virgin Islands libraries, to the
amount of $2,000 from title III of
Library Services and Construction
Act.
The directors of libraries and mu-
seums also participated in the inaugu-
ration of the Ralph M. Paiewonsky
Library of the College of the Virgin
Islands, and served as resource persons
for the 3-day conference entitled
"Sharing Caribbean Resources." All
four nationalities of the Caribbean in
England, Denmark, and the United
States. It was a unique conference in
the Virgin Islands.
Exchange program distributed 49
Virgin Islands publications during the
year to over 211 libraries and indi-
viduals in the United States, Europe,
and the Caribbean.
Beautification Division-St. Thomas,
St. John, St. Croix
The Beautification Division's pro-
gram is divided into two major areas:
(1) Nursery and landscaping of pub-
lic areas, (2) beautification and en-
vironmental education.
Planted Areas and Nursery
We maintain 19 separate areas
in St. Thomas, four in St. Croix,
and two in St. John. Extensive plant-
ings completed this year have been:


(1) The Roosevelt Park, (2) Legisla-
ture Garden, (3) Government House,
(4) immigration offices, (5) Hibiscus
bed at Fort Christian, (6) the tri-
angle at Wayne Aspinal School,
(7) A Hibiscus hedge from Subbase
to Chinaman Hill, (8) garden at the
rear of the conservation office.
St. John: (1) Rock garden in front
of Julius Sprauve School, (2) exten-
sive refurbishing of the administra-
tor's garden.
St. Croix: (1) Christiansted Fort
area, (2) mahogany trees on Island
Center road, (3) triangle at Peter's
Rest planted twice, (4) assisted in
maintenance of the St. Croix High
School.
A misting system has been extended
at the plant nursery. Thirty concrete
bins approximately 4 to 6 feet wide and
12 to 15 feet long, with a 2-inch wall
around them to contain water, have
been built at the nursery.
A beautification officer has been
placed in direct charge of the day-to-
day operation of the nursery. The divi-
sion also organizes garden clubs, the
conservation film program in the
schools, and has distributed approxi-
mately 3,000 trees.
Many special projects were carried
out by volunteers. The following spe-
cial projects were implemented in the
three islands:
1. Plants for Mothers Day.
2. Beautification litter bags.
3. Special book covers for all Virgin
Island schoolchildren.
4. Mystery tune contest.
5. Poster contest.
6. Assisted Wayne Aspinal Garden
Club and St. Croix High
School.
Ours is an exciting and growing pro-
gram. All of the staff are proud to be
a part of the beautification division of
the Department of Conservation.














VIRGIN ISLANDS EMPLOYMENT
SECURITY AGENCY


Personnel: 64


The Virgin Islands employment
service concluded fiscal 1969 with an
increase in most activities over fiscal
1968. Among the several special pro-
grams with which the agency was con-
cerned were: Manpower Development
and Training, Job Corps, Neighbor-
hood Youth Corps (out-of-school),
and the new Work Incentive program.
Also of interest was the relocation of
the Christiansted local office to a more
central location.
During the year, total employment
on the three islands rose to 32,720, an
increase of 1,549 jobs in the local
economy.

Unemployment Insurance Activities
January 1, 1969, the midpoint of
the fiscal year, was also the fifth anni-
versary of benefit payments under the
Virgin Islands unemployment in-
surance law.
During that period, 4,792 claimants
filed and collected $606,315 under the
local program. Through the local un-
employment insurance offices, $68,270
was paid under Federal programs to
veterans and Federal employees. A
cumulative total of 4,035 employers
was registered or found subject to Vir-
gin Islands unemployment insurance
law.
During fiscal 1969, employers on file
increased from 1,767 to 2,035, of which
345 are new employers. Both of these
figures are indicative of accelerated


Operating Appropriation: $639,481

growth in the Virgin Islands economy.
Employer collections for the year were
$1,002,696, a figure that reflects the
impact of last year's six-tenths of 1
percent reduction in employer taxes.
Fiscal 1969 saw a decrease of 24 per-
cent in the total number of claimants,
though there was an increase of 151
percent in the number of veterans fil-
ing, and an increase of 300 percent in
the benefits they received. Total bene-
fits paid to veterans amounted to
$27,548, as opposed to $6,895 last year.
Federal employees trebled and pay-
ments to them increased to $2,359, as
opposed to $1,562 paid during fiscal
1968.
Total payments under all unemploy-
ment insurance programs totaled
$156,456, a decrease of $45,438 from
fiscal 1968.
Toward the end of the fiscal year,
the work of the unemployment in-
surance service was expanding. The
7-day period in which claimants under
the local program are being paid is
to be extended to claimants under Fed-
eral programs, MDTA, UCFE-UCX
and WIN. When arrangements are
completed, 7 days will be the estab-
lished period for all claimants, trainees,
and enrollees.

Employment Service
The Virgin Islands employment
service budget for fiscal 1969 totaled
$397,130, including Manpower Devel-







opment and Training Act program,
Job Corps program, CAMPS program
and the Work Incentive program.
Total funds for training were in-
creased from $63,000 to $100,000 a
year. The employment service con-
tinued work on the development of a
grant from the Economic Develop-
ment Administration of approximately
$76,000 which, with an equal amount
expected from Virgin Islands funds,
would be used to establish two skill
training centers, which would remove
the major obstacle to full-time training.
Late starting of projects reduced
slightly, from 85 to 77, the number of
persons receiving training under the
Manpower Development Training
Act, though there was an increase of
$10,000 in training and subsistence
allowance payments made to MDTA
trainees.
The employment service was able to
refer 258 youths, against a quota of
296, for the Job Corps program. Re-
cruitment for job training in Job Corps
centers was curtailed toward the end of
fiscal 1968 as a result of the closing of
several training centers.
The service's cooperative arrange-
ment with the Neighborhood Youth
Corps resulted in the placements of a
number of youths from the program.
The service was utilized throughout
the year as a training station for
enrollees.


Staff recruitment for the Work In-
centive program, the newest addition
to employment service programs, was
completed in March 1969. By the end
of the fiscal year in June, 26 transferees
from the work experience program had
been enrolled in the new program.
Placements of Virgin Islands citi-
zens totaled 2,384, including 673 in
construction, 283 in manufacturing,
82 in public utilities, 388 in wholesale
and retail businesses, 61 in finance, 366
in private households, 27 in the Fed-
eral Government, 136 in State govern-
ment, 349 in service (except private
household), and 19 in industries not
elsewhere classified.
Certification of foreign national to
supplement the local labor force was
continued, with major emphasis
placed on the processing of permanent
certifications for workers. New per-
manent certifications for foreign na-
tionals totaled 1,849. Recertifications
issued numbered 8,387 and schedule A
cases numbered 144, for a total certi-
fied alien work force of 10,380.
New certifications included 701 in
construction, 134 in manufacturing, 65
in public utilities, 238 in wholesale and
retail businesses, 42 in finance, 291 in
private households, 1 in the Federal
Government, 17 in State government,
345 in service (except private house-
hold), and 15 in industries not else-
where classified.















DEPARTMENT OF PUBLIC WORKS


Personnel: Permanent 801
Temporary 828

Throughout the fiscal year, the De-
partment of Public Works continued
to provide the basic services of road
construction and maintenance, provi-
sion of fresh water, construction and
maintenance of water distribution and
sewage systems, collection and disposal
of garbage, operation and maintenance
of public cemeteries, and repair and
maintenance of government buildings.
A total of $9,090,704 was obligated
during fiscal 1969 for basic services,
compared to $7,072,145 for fiscal 1968.
A total of $3,196,808 was expended by
the department on capital improve-
ment projects under the matching
funds program.
Road and Street Improvement
A total of 5.5 miles of roads and
streets was reconstructed and paved
on St. Thomas, and 7.4 miles on St.
Croix. The largest single project on
St. John was reconstruction and pav-
ing of the Johns Folly Road which
parallels the eastern shore of the
island. Other roads in Cruz Bay areas
were also improved. Substantial re-
construction and improvements were
made to the roads on St. Croix, in-
cluding reconstruction of portions of
the Centerline Road.
The department cooperated with the
Federal Bureau of Public Roads in con-
ducting a study and reporting on the
highway needs of the Virgin Islands.
The report consists of an inventory of
the present highway systems, with


Operating Appropriations: $9,090,704
Matching Funds: 3,196,808

forecasts and cost estimates of future
needs to justify inclusion of the Virgin
Islands in the Federal Aid Highway
Program.
Unusually heavy rains in February
and May of 1969 caused extensive
damage to roads on the three islands.
Restoration of the damaged roads re-
quired an estimated additional ex-
penditure of $300,000.
Street Cleaning and Garbage
Removal Service
The volume of garbage and trash
collected and disposed of was more
than double that handled during fiscal
1968. Service was extended to all pop-
ulated areas of the islands, including
new subdivisions and hotels. Public
cooperation in the use of collection
points improved during the year and
littering along public roads and streets
showed a marked decrease.
The garbage dump in Cruz Bay, St.
John, was abandoned and removed to
a remote location on the eastern end
of the island. Construction of a new
incinerator, one and a half miles east
of Cruz Bay, was started and will be
completed in September 1969. Because
down-wind areas are becoming more
populated, open burning of garbage
and trash at central locations on St.
Thomas and St. Croix is becoming in-
creasingly objectionable. Plans have
been made for replacing the open
dumps with incinerators which will
eliminate smoke and odor nuisances.








Water Supply
On St. Thomas, the demand for
fresh water averaged 1,444,000 gallons
per day. The combined production of
the three desalination plants totaled
68 percent of this amount; the re-
mainder was barged from the Roose-
velt Roads Naval Station on Puerto
Rico.
The rated 1-million-gallon-per-day
desalination plant on St. Croix began
production in October 1968. The plant
output during fiscal 1969 was 60,302,-
000 gallons. A total of 22,351,000 gal-
lons was barged to Christiansted from
Puerto Rico.
The second 10/-million-gallon
water storage tank was erected at
Kings Hill, 5 miles west of Christian-
sted and will be in service by Septem-
ber 1969. A 1-million-gallon storage
tank was completed near Frederick-
sted, and a similar one erected on
Recovery Hill near Christiansted. This
second tank will be connected to the
distribution system by October 1969.
As on St. Thomas, the water distri-
bution systems on St. Croix are con-
stantly being extended for service to
existing housing and newly developed
areas. Renewal of the Fredericksted
water distribution system under a
Federal grant project has been delayed
due to complications of contractor
bonding, but the notice to proceed on
the construction will be issued by
August 1969.
A total of 17,673,000 gallons of
water was barged from St. Thomas to


St. John, of which 14,717,200 gallons
were delivered to Caneel Bay, 2,628,-
400 gallons to Cruz Bay, and 328,100
gallons to the Tektite project on
Lameshur Bay.

Sewage Disposal
Sewage systems on St. Thomas and
St. Croix were maintained and ex-
tended to new areas. New sewage out-
falls were constructed at Betty's Hope,
Fredericksted, and La Grand Princess
on St. Croix, and the main outfall line
on St. Thomas was renewed from the
pumping station to Crown Bay. De-
tailed surveys are now under way to
provide sewage treatment plants that
will eliminate pollution of harbors and
shore areas on St. Thomas and St.
Croix.

Engineering, Design and
Construction
A total of 1,992 building permits
representing $65,091,755 value of
construction was issued during the
year, compared to 1,501 permits, rep-
resenting $48,068,900 value during
fiscal 1968.
Building by public works forces in-
cluded a new post office at Cruz Bay,
St. John. On St. Croix, the depart-
ment constructed sewer and water
pumping stations, one sewage treat-
ment plant, and foundations and utili-
ties for prefabricated schoolrooms. In-
spection services were performed for
all public and private construction.












DEPARTMENT OF FINANCE


Personnel: 290

As the major fiscal agency of the
Virgin Islands, the Department of
Finance is affected by every increase
in social and economic activity in the
islands. The year ended June 30, 1969,
was another period of growth in both
revenues and expenditures which re-
quired an increase in governmental
services. The Department also was
given responsibility for the Alcohol
Control Board as an entirely new
function.
To handle the increased volume, the
Department added new, more sophis-
ticated computers and undertook in-
tensive on-the-job training programs
to enable staff members to adapt to
the new equipment. New accounting
procedures were also developed to
speed up payment of bills. Another
major achievement was application of


Operating Appropriations: $2,294,757

new management techniques to gov-
ernment deposits which will substan-
tially increase interest revenues.
The government insurance fund
continued to report a steady rate of
growth, and the fund remains solvent.
A total of approximately $1 million
in premiums was collected during the
fiscal year, and merit rating reductions
in premiums, in a total amount of
$117,218.83, were approved for 130
employers during the same period.
These amounts represent significant
increases.
Fiscal 1969 was marked by an all-
time high in revenues collected in all
funds involved in the operations of the
government with a total of $96,511,-
513. This total was divided into three
major groupings:


Amount Percent

General fund............................................ $56,117,511 58.14
Matching fund and essential projects fund ................... 12, 756, 771 13. 22
Special and other funds. .................................. 27, 637, 231 28. 64
Total ............. .... .......................... 96,511,513 100.00


Collections into the general fund,
principal operating fund of the govern-
ment, were as follows:
Taxes .................... $60, 501,583
Government operating
revenue ................. 2,031,771
Other revenues ............ 33, 978, 159
Total................ 96,511,513
Collections into the matching fund
and essential projects fund, the recipi-
ent funds for Federal internal revenue
taxes collected in the United States on
imports from the Virgin Islands were
divided into three categories:


Internal revenue returns .... $12, 627, 871
Interest on bank balances.... 0
Refunds ................... 128,900
Total................ 12,756,771
The third major collections category
includes special and other funds. Most
of the trust and deposit funds, and
enterprise and revolving funds, such
as the Virgin Islands lottery fund, and
the government insurance fund, are
excluded since they do not relate di-
rectly to general governmental opera-
tions. The special and other funds did
provide the following:
75








Taxes...................... $9,531,972
Government operating
Income.................. 979, 672
Federal grants-in-aid ........ 6,' 107, 086
Other revenues ............. 11,018, 601

Total ............... 27,637,231
During fiscal 1969, the Government
of the Virgin Islands sold bond antici-
pation notes in the amount of $352,000
and, at the close of the year, the amount
borrowed through bond sales for the
past 5 years was $20,045,000. Bond
financing had been used for the fol-
lowing purposes:
Schools ................... $7,850,000
Hospitals .................. 2, 000, 000
Water systems expansion..... 3, 063, 000
Power and water desaliniza-
tion facilities* ............ 6, 560, 000
Sewage facilities and
treatment. ................ 470, 000
College of the Virgin
Islands................... 102, 000

Total. ............... 20, 045, 000
*Funds were paid over to and expended
by the Virgin Islands Water and Power
Authority.


Public Law 88-180 passed by the
Congress of the United States limits
such borrowings to 10 percent of the
aggregate assessed valuation of taxable
real property in the Virgin Islands. As
of December 31, 1968, this valuation
amounted to $247,914,452. Following
is a comparison of the ceiling with local
authorizations and actual borrowings:

Ceiling (10 percent of
$247,914,452)............ $24, 791,445
Authorizations (local
statutes) ................. 19, 540, 000

Actual borrowings .......... 20, 045, 000
Less bonds redeemed......... 715, 000

Balance.............. 19, 330, 000

Total expenditures, excluding inter-
and intra-fund transfers, for all funds
connected with the operations of the
government, amount to $96,331,560,
as follows:


Amount Percent

General fund ............................................ $53,411,264 55.45
Matching fund ........................................... 6,097,445 6. 33
Essential projects fund .................................... 165,436 .17
Special and other funds .................................. 36, 657, 415 38. 05
Total........................................... 96,331,560 100.00









Total expenditures detailed by vari- government during fiscal year 1968,
ous departments and agencies of the are as follows:


Amount Percent

Legislature, electoral boards, and municipal courts of the
Virgin Islands ......................................... $1, 351, 996 1.40
Health ................................................ 13, 526, 604 14. 04
Education ............................................... 12, 718, 085 13. 20
Social welfare. ........................................... 3, 837,402 3. 98
Public safety............................................. 3, 770, 906 3. 91
Public w orks............................................ 13, 912, 853 14. 44
Agriculture.............................................. 1, 690, 622 1. 76
Labor .................................................. 422, 060 .44
Housing and community renewal........................... 2, 378, 482 2. 47
Commerce............................................. 2, 811, 858 2. 92
Conservation and cultural affairs ............ ............. 1, 671, 662 1. 74
Executive and administrative Departments and agencies....... 38, 239, 030 39. 70

Total ................... ........................ 96, 331,560 100. 00

NOTE: See appendix F for tables on:
Government operating revenues.
Government operating expenditures.
Comparative statement of revenues and receipts.
Comparative statement of expenses.
Comparative statement of operating revenues and loans.
Comparative statement of net expenditures.


373-289 0-70--6
















OFFICE OF THE DIRECTOR
OF THE BUDGET


Personnel: 17


Expanding population and rapid
economic development during the
year ended June 30, 1969, created in-
creased demands for public services.
As a result, both revenues and govern-
ment expenditures reached all-time
highs in the Virgin Islands. Budgets of
approximately $73.5 million were proj-
ected for the year for general govern-
mental operations and necessary capital
improvements. Other vital capital proj-
ects were financed through interim
bond anticipation notes.
For fiscal 1969, total revenues col-
lected from taxes and other local
sources amounted to $56,117,511 an
increase of slightly more than 20 per-
cent over the previous fiscal year. But
the cost of government matched the ris-
ing income. In addition, the Virgin
Islands Government was forced to
operate without the contribution from.
the Internal Revenue matching fund
which had been approved for certain
operational uses in previous budgets.
A policy directive from the Department
of Interior eliminated this income and
the government absorbed $4,900,000 in
costs previously funded from this
source.
In addition to the loss of matching
funds for operational purposes, the
government's new pay plan imple-
mented in fiscal year 1969 added ap-


Operating Appropriations: $171,246

proximately $5,200,000 in new salaries
for regular budgeted positions.
These factors, combined with the in-
creased cost of operations did not al-
low for the realization of any meaning-
ful surplus at the end of the fiscal year.
Furthermore, the combined effect of
these factors made it mandatory that
more rigid control be exercised over
the release of appropriated funds.
Appropriations made from the gen-
eral fund for fiscal 1969, including con-
tinuing or no-year appropriations
amounted to $60,617,329. These funds
were for general governmental opera-
tions, operations of the College of the
Virgin Islands, contributions to the
retirement and pension funds, contri-
butions to Federal aid programs, grants
for educational purposes, research and
other special projects, expenses of the
legislature and the new pay plan for
government employees.
Direct appropriations of $12,627,870
were made from the Internal Revenue
matching fund for capital improve-
ments.
Total general fund allotments made
to June 30, 1969, for operating ex-
penses, special programs, and other
purposes were $56,965,326.
Following is a summary of estimated
revenues, appropriations, and allot-
ments for the fiscal year just ended:








Revenues and carried-over
surplus:
Surplus cash balance July 1,
1968 ..................
Revenues collected.........

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

Appropriations:
Operating and special
appropriations ...........
Appropriations available
until expended (including
prior year's appropria-
tion) ................. .
Reappropriation of certain
projects.................

Total appropriations.... 6


Allotments:
Allotments made to June 30,
1969. .................. 56,965,326
Unallotted appropriations... 3, 652, 003

Total.................. 60,617,329


For fiscal 1970, the Governor's
budget proposal called for $56,634,563
for operations and special purposes,
and $13,500,000 for capital improve-
ments. Again, these proposals were
based on estimates of government re-
ceipts and Internal Revenue matching
fund receipts but excluding contribu-
tions from matching funds for opera-
tional costs. All estimated matching
fund receipts were allocated for capital
improvements.
The budget passed by the legislature
amounted to $58,345,664. Largest
share of the total, about 20.6 percent
was budgeted for the Department of
Education. Ranking second in share
of the budget was the Department of
Health scheduled to receive 19.7 per-
cent, and third was Public Works with
16.8 percent.


Appropriations from the matching
fund budget of $12,734,895 included:
$2, 538, 796 Payment of long-term and
56, 117, 511 short-term debt ............ $1, 412, 095
Housing .................... 1,000,000
58,656,307 Roads...................... 2,873,000
Urban renewal.............. 100, 000
Construction of health centers.. 5, 000, 000
Road and construction
54, 400, 131 equipment. ................ 430, 000
Salt water and sewage systems. 225, 000
Potable water systems.......... 362, 000
Acquisition and repairs:
6, 119, 995 Government buildings
and structures......... 286,400
97, 203 Construction of classrooms. 50, 000
Sewage improvements ........... 340, 000
0, 617, 329 Erection of agricultural
buildings.................. 100,000


Miscellaneous ............... 556, 400

Total. ................ 12, 734, 895
Conservation Fund
A new source of funding for con-
servation, recreation, and culturally
oriented projects became available in
fiscal year 1969 as the result of statu-
tory authorizations for the utilization of
oil royalties paid into the local treas-
ury under existing quota allocations.
Receipts from this source are expected
to amount to $2.7 million annually,
and are deposited into a special con-
servation fund. It is expected that the
larger portion of this fund will be used
to finance the acquisition of parklands
and beachfronts; cultural and recrea-
tional programs; antipolution proj-
ects, and environmental planning and
control.
As of June 30, 1969, a total of
$2,745,000 had been deposited into the
conservation fund and appropriations
totaling $2,700,000 had been approved
by the Legislature from this fund for
the following purposes:








Outdoor recreation, including
acquisition of land and
beaches ............. ..... $1,250,000
Development of historical sites. 100, 000
Beautification projects ........ 150, 000
Culturally oriented programs.. 496, 810
Comprehensive design and
planning of environmental
resources and development.. 550,000
Miscellaneous projects con-
sistent with statutory pro-
visions for use of the fund... 153, 190

Total................ $2, 700,000


Like the Internal Revenue matching
fund, expenditures from the conserva-
tion fund require the approval of the
Secretary of the Interior. Secretarial
approval was given for the expenditure
of $2,265,000 of the total $2.7 million
appropriations made by the legislature
in the first operative year of this fund.














DEPARTMENT OF HOUSING
AND COMMUNITY RENEWAL


Personnel: 56

On June 30, 1969, the department
reported more than 947 units of low-
rent housing planned or under con-
struction in the Virgin Islands. Despite
significant advances since the depart-
ment was created on June 18, 1962,
housing is still a top-priority problem
in the islands with many residents liv-
ing in substandard dwellings because of
the lack of new housing at reasonable
rents or sales prices.
Emergency Housing Program
Under this program, 87 families
were housed during fiscal 1969. Of this
total, 49 families including 201 indi-
viduals were housed in St. Thomas,
and 38 families with 131 family mem-
bers were housed in St. Croix. At the
end of the year, a cumulative total of
507 families were housed-249 in
St. Thomas, and 258 in St. Croix.
During the 12-month period covered
by this report, 1,225 applications for
emergency housing were filed with 682
applications in St. Thomas and 543 in
St. Croix. At year's end, 3,447 active
applications were on file representing
requests from families including
more than 19,000 individuals. In
St. Thomas, 1,910 applications were on
file, and in St. Croix, 1,537.

Homestead and Home Loan
Program
Seven important subprograms are
included in this effort-homestead,
home loan, Altona community develop-


Operating Appropriations: $445,079

ment, veteran loan and land, cistern
loan, moderate income housing, and
Altona and emergency housing.
Under the homestead program, a
total of 18 parcels were allocated
throughout the Virgin Islands during
the fiscal year. The selling price of
these parcels amounted to $8,446. A
total of 47 deeds were issued through-
out the various homestead areas. The
sales value of the land amounted to
$28,108.40. During the period, 12
waivers were approved, granting the
owners of homestead land permission
to offer their properties as security for
loans in order to construct homes on
their properties. At the close of the
fiscal year, there were 921 applications
on file for homestead land distributed
as follows: St. Thomas, 530; St. Croix,
338; St. John, 53.
During fiscal 1969 the home loan
fund was increased by an appropriation
of $50,000. With this amount and
other funds received from the repay-
ment of loans, interest income, and the
sale of homestead land, 21 loans were
granted totaling $207,000. There are
now 17 applications on file for home
construction and improvement loans
totaling $145,750.
One loan was granted for the con-
struction of cisterns under this pro-
gram, for the maximum $1,000 per-
missible by law. Three loans were
repaid in full and the mortgages can-
celed during the year. There were six
loans granted from the veteran hous-







ing fund during this reporting period,
each for the maximum of $5,000 per-
missible, and 12 applications are pend-
ing for a total of $60,000.
All of the houses in the Altona com-
munity development except one were
allocated prior to the beginning of this
reporting period and purchasers are
making payments towards the purchase
price. They have 20 years from the
date of the purchase contract in which
to complete payment of the purchase
price and to receive title to the
property.
Sale of Emergency Housing-Single
Family Units
Act No. 986 provides for the sale
of single family emergency housing
units to tenants who occupied a par-
ticular unit for a period of 1 year or
more. A total of 35 deeds were issued
and secured by mortgages on these
properties.
Community Development Programs
During the fiscal year, great progress
was made in community development
programs. On August 8, 1968, the
Government of the Virgin Islands bor-
rowed $2 million from the reserves of
the Government Employees' Retire-
ment System pursuant to act No. 1927.
This money was deposited into the
moderate income housing revolving
fund and was used to complete or to
:help finance 495 homes in three
developments.
At Estate Nadir, St. Thomas, 79 in-
dividual three-bedroom units were
completed in March 1969, and were
occupied during the month of April.
Estate Bordeaux, St. Thomas, will con-
sist of 100 individual three-bedroom
units. Ground was broken in October
1968, and the units are scheduled for
completion by March 1970.
The third is Estate Sion Farm, St.
Croix, and consists of 316 individual
three-bedroom units upon land which


is being purchased from the U.S. Gov-
ernment. Eighty-six of these units were
completed and 46 were occupied by
the end of the fiscal year. The sched-
uled completion date of this project is
October 4, 1969.
Thirty-one units were completed,
Estate Contant, St. Thomas, by June 30
and the Department of Public Works
is presently installing sewer mains and
making house connections so these units
may be occupied within the very near
future. There are 62 units comprising
this development, 31 of which are now
occupied.
Pursuant to the provisions of the
rent control law, formal inspections
were made of the properties involved
in the 112 petitions. Below is a table
showing by comparison the work of the
rent control agency during fiscal years
1965 through 1969.
An overall plan for the Demara-
Honduras area in St. Thomas was pre-
pared by the firm of McClintock and
Thun in which specific recommenda-
tions were made for the area. These will
be discussed with the administration.
For the developments at Estates Nadir,
Bordeaux and Sion Farm, the Govern-
ment has arranged for the mortgages
to be taken over by the First National
City Bank which will provide addition-
al funds to finance other developments
under construction and planning.
This department, recognizing that it
will be necessary to acquire land in
order to continue its housing develop-
ment programs, recommended the pas-
sage of act No. 2347. Several parcels
of land are being purchased on the
islands of St. Thomas and St. Croix.
A total of 167 acres at Estate Benders
Bay and an additional 47 acres at Es-
tate Dorothea are being purchased by
the Government in St. Thomas. Nego-
tiation was begun for the purchase of
150 acres of land at Estates Plessen and
Mount Pleasant in St. Croix, and the







development of 1,700 additional hous-
ing units on these tracts of land is
contemplated.
Rent Control Agency
During the fiscal year ending June
30, 1969, a total of 112 petitions were
filed with the rent control agency.
Fourteen of that number were filed in
St. Croix while 98 were filed in St.
Thomas. Of the 112 petitions, only
four were filed by landlords who asked
that maximum monthly rent ceilings
be established for their properties. Two
of the four petitions were filed by land-
lords in St. Croix, while the other two
petitions were filed by landlords in St.
Thomas.

Fiscal year Petition Landlord Tenant

1965........ 76 20 36
1966 ........ 38 ......... 38
1967 ........ 74 6 68
1968 ........ 141 7 134
1969........ 112 4 108


Workable Program
Improvement


for Community


During the months of May and
June, the staff of the Department of
Housing and Community Renewal
was busy preparing the workable
program to be submitted to the
Department of Housing and Urban
Development for recertification. The
present certificate expires on July 1,
1969.
Housing Code Enforcement
During fiscal year 1969, housing code
enforcement activities increased. In-
spections were completed on 633 struc-
tures, almost twice as many as were
done last year. The number of units
involved was 1,194. Of the 633 struc-
tures inspected, 402 did not meet the
minimum requirement of the law with
respect to health and sanitation, light
and ventilation or space per occupant.


The 402 noncomplying structures com-
prised 565 living units. As a result of
housing code activity, 106 units were
repaired.
This program can be an important
urban renewal device, even though it
has limitations. It does not solve the
problem of poor physical development
for example, but it can produce
cleaner, safer, and generally more
wholesome housing without the large
expenditure of money, or time, and the
social disruption that accompanies
other types of renewal action.
The basic law as it now exists needs
to be reviewed carefully with an
eye toward making it more nearly
workable.

Virgin Islands Housing Authority
Federal funds approved for four
projects in various stages of develop-
ment amounted to $23,133,884 at the
end of the fiscal year. Eight projects
were under construction or on the
planning board at year's end and the
eight included a total of 1,503 units.
The project at Lindberg Bay, St.
Thomas, was under construction and
moving on schedule. This project con-
sists of 138 units and work started in
September 1967. A total of 48 three-
bedroom units had been occupied by
June 30, 1969. Berg Homes, also on
St. Thomas, was started in January
1968, and all 24 units were completed
and occupied during fiscal 1969.
Ground for the Congregare homes for
the elderly was broken in October 1968
and was proceeding ahead of schedule
as the fiscal year ended. This project
will provide 85 units for senior citizens.
On St. Croix, the 100-unit Kingshill
project was also ahead of schedule and
it was expected that occupancy could
start by August 15, 1969. Also in St.
Croix, Estate Mon Bijou which will
include 256 homes was under construc-
tion with the first 25 units ready for







occupancy by the end of the fiscal
period. A second block of 25 units was
to be available by the end of July, and
25 additional homes were expected to
be completed each 6 weeks thereafter.
Two projects in Estate Tutu, St.
Thomas, progressed. One is a turnkey
project of 300 individual houses, and
contracts for sale of all units have been
signed. Construction is underway and
the first 25 units will be ready for occu-
pancy in August 1969. The second
Estate Tutu project is a 400-apartment
project for which preliminary drawings
are now being made.
Estate Williams Delight will be the
site of a turnkey project of 300 individ-
ual homes and final drawings will be
submitted early in fiscal 1970 with con-
struction to start soon after this.
The authority currently manages 12
projects, five in St. Thomas, four in
Christiansted and three in Frederick-
sted containing a total of 1,516 units.
During the fiscal year, 622 applications
for low-rent public housing were re-
ceived in St. Thomas, and 640 in St.
Croix, bringing the file of active ap-
plications to a total of 2,151. The fiscal
year saw 202 families admitted to au-
thority projects, 68 in St. Thomas and
134 in St. Croix.
Program reservations for 600 units
in St. Croix and 600 units in St.
Thomas were approved by the Housing
Assistance Administration. Invitations
for proposals for the construction of
these units were sent out during the
month of May and received in June
from 13 developers in the Virgin Is-
lands and continental United States.
The board of commissioners will make
awards in July.
The modernization of Paul M. Pear-
son Gardens, Ludvig E. Harrigan
Court, and D. Hamilton Jackson Ter-
race has started. The prime purpose of
the modernization program is to make
the projects more pleasant places in


which to live.
In February of 1969, the board of
Commissioners of the Authority
amended the agency's occupancy pol-
icy to permit alien residents in the
Virgin Islands to apply for accom-
modations in public housing projects.
As of June 30 there were approxi-
mately 750 such applications on file
with the housing authority for both
islands.
Virgin Islands Urban Renewal Board
For the fiscal year ended June 30,
1969, the board continued to adminis-
ter four projects in the execution stage,
Barracks Yard, Water Gut, Lagoon
Street and Taarneberg-Ross, and one
in the survey and planning stage, Hill
Street.
Barracks Yard is a combined reha-
bilitation and clearance project. All
land was cleared, the rehabilitation of
all of the substantial structures was
completed, and the required re-
location of all families, individuals and
businesses was accomplished by the
end of the fiscal period. Total value of
rehabilitation work completed was
$333,000, the value of reconstruction
accomplished was $240,000, and there
remained only one substandard struc-
ture to be reconstructed at an esti-
mated cost of $65,000.
The sale of one of the parcels of
land designated for "public use" was
completed to the United States of
America for use as a Federal office
building. The other parcel so desig-
nated is to be acquired by the local
government for the construction of the
local government center, and a letter
of commitment for such purpose has
been received by the board.
The determination of the final
awards for the acquisition of the prop-
erties has been delayed since the third
circuit court of appeals reversed the
original awards of the district court of








the Virgin Islands. At a pretrial con-
ference in May of 1969, a new trial
before new commissioners was ordered.
An amendatory loan and grant con-
tract was prepared and approved for
the project, to adjust the financing
plan and to move the date of closing
up to December 1970.
Water Gut is also a combined re-
habilitation and clearance project with
about 25 percent of the total land area
scheduled to be cleared for redevelop-
ment, and the remaining 75 percent
with some 57 substandard structures
to be rehabilitated. At the close of fis-
cal 1969, the Water Gut project was
still in operation under the revised
plan approved in 1964. However, a
new revised plan has been prepared
by the firm of McClintock and Thun,
readjusting the land uses, eliminating
the waterfront highway and changing
some of the street patterns. The origi-
nal proposal for a 114-unit middle-in-
come housing development remains in
the plan. To finance the construction
of this proposed middle-income hous-
ing, the board has been successful in
obtaining a conditional commitment
from FHAin the amount of $2,693,500.
The plans for it are in final prepara-
tion, also by the firm of McClintock
and Thun, and at the close of the pe-
riod, the board and its agents were ne-
gotiating to secure a building contrac-
tor for construction to begin before the
end of this calendar year.
Special emphasis has been given to
the rehabilitation program, in an ef-
fort to reduce the workload as quickly
as possible and to determine the dis-
position of those properties which have
remained substandard because owners
are unwilling or unable to comply with
the rehabilitation requirements of the
plan.
A revised plan for the Lagoon Street
project, eliminating Custom House
Street and the existing plot subdivision,
and providing for the construction of


a 60 unit middle income program of
FHA and a private supplementary
shopping and office center, was pre-
pared by McClintock and Thun and
approved by the legislature in March
1969. Kramer and Kramer, architects
of St. Thomas, designed this housing
development. The board has secured
a conditional commitment of $1,600,-
000 from FHA and requests for pro-
posals have been sent out to prospective
bidders.
Taarneberg-Ross is mainly a clear-
ance project with a small percentage of
existing structures recommended for
rehabilitation. The emphasis is to be on
the development of small homes to be
privately owned. The application for
a loan and grant was signed in Feb-
ruary 1969 with a capital grant reser-
vation of $1,658,200.
Early in March 1969, a project office
was established in the heart of the
project area to promote communica-
tion between the urban renewal board
and the site occupants. The records
show that 55 percent of these occupants
have already visited the office seeking
information relative to the develop-
ment of the project. The task of relo-
cating families and individuals began
early in the period. As of this report,
19 families and two individuals have
already been relocated to standard
housing. One hundred and three fami-
lies, 12 individuals, and six businesses
remain to be moved. Project area com-
mittee meetings have been held regu-
larly each month for the past year and
have been valuable in promoting an
exchange of opinion on the project.
The Hill Street project in Frederik-
sted, St. Croix, consists of 5.66 acres of
land. This is a new project and is pres-
ently in the survey and planning stage.
The firm of Vilican-Leman is prepar-
ing Part I, Application for Loan and
Grant, which will be filed with the Fed-
eral Government no later than Septem-
ber 1969.








In addition to the project activities
outlined above, there were three new
areas considered for urban renewal
treatment during the past fiscal year.
The firm of Reed, Torres, Beauchamp


and Marvel of Puert Rico are pre-
paring the survey and planning ap-
plication for the Ross Yard and
Altona-Demerara areas in St. Thomas
and Gallows Bay area in St. Croix.














DEPARTMENT OF PROPERTY
AND PROCUREMENT


Personnel: 115

The administration and general su-
pervision of the department's activities
are handled through the office of the
commissioner, which is also responsible
for the central direction of personnel,
budget, finance, and tax appeals.
The Virgin Islands board of tax
review handled 920 appeals, only 50
percent of the number reviewed in fis-
cal 1968. There were 546 from St.
Thomas, 307 from St. Croix, and 67
from St. John.
Total allotments for all activities of
the department amounted to $921,490.
Operating expenses were $867,168.
These figures do not include amounts
entrusted to the department for other
departments and agencies.
The amounts allotted to the equip-
ment accounts for the various depart-
ments and agencies totaled $1,037,565.
There were approximately 1,277 requi-
sitions issued d u r i n g the fiscal
year against these accounts, totaling
$785,644.
Totaling expenditures from the ac-
counts for outside departments and
agencies of the government for adver-
tising and promotion were almost
$188,000, an increase of approximately
$23,000 over fiscal year 1968.
Payments made for rented office
space for the various departments
amounted to $407,648. This amount
represents only the portion of rentals
paid from territorial funds. It does not
include rentals paid from Federal
grants.


Operating Appropriation: $956,782

Division of Accounting
A division of accounting was created
at the beginning of the fiscal year to
handle accounting for the Department
of Property and Procurement as well
as for the other departments whose ac-
counting was previously handled by the
office of the commissioner.
The division of accounting is also
responsible for payments for office
space, equipment, and advertising and
promotion for the various departments
and agencies of the Government of the
Virgin Islands.
Division of Procurement and Supply
During fiscal year 1968-69, 13,597
purchase orders were issued with a dol-
lar value of $8,665,262. Of these, sup-
ply contracts amounted to $3,129,743.
Construction contracts amounted to
$1,895,113, professional contracts
amounted to $33,702, and miscellane-
ous contracts totaled $617,931.
Purchases made under existing con-
tracts of the general services adminis-
tration totaled $778,853. Direct open
market purchases amount to $2,209,-
917.
The number of purchase orders is-
sued does not cover requisitions for the
over-the-counter purchases under $100,
nor do they include requisitions issued
against term contracts starting July 1,
1968.
The largest contract awarded during
the fiscal year was to Burup and Sims,
Inc., in the amount of $430,999, for an








addition to the Tutu School in St.
Thomas.
Bids were invited for the construc-
tion of health centers on the Islands of
St. Thomas and St. Croix. One re-
sponsive bid was received and later
rejected. As of June 30, 1969, there
was no final determination as to a
future course of action on this project.

Division of Property, Weights and
Measures
During the fiscal year, several par-
cels of land were acquired, including
50 acres at Estate Concordia, at a cost
of $375,000; the remainder of Sion
Farm, from the General Services Ad-
ministration, for $380,000; parcel No.
20, Estate Dorothea, for $423,487; and
165.9 acres at Estate Nazareth for
$1,083,000.
Property inventories conducted
throughout the departments show that
the dollar value of government per-
sonal property as of June 30, 1969,
totaled $8,071,795. The value of real
property was $46,350,790.
In periodic inspections of weighing
and measuring devices conducted by
the weights and measures section, sev-
eral violations were detected and orders
issued to correct them.

Division of Transportation
One hundred twenty-four vehicles
were assigned to the division of trans-
portation during fiscal year 1969. In
addition, 32 vehicles of GSA, U.S.
Comptroller's office, and U.S. Immi-


gration and Naturalization Service are
serviced and repaired by the division.
In addition to responsibility for fur-
nishing the departments and agencies
with regular daily transportation, the
division provided transportation for
large numbers of dignitaries during
such events as the National Association
of Attorneys' general conference, Pan
American and Eastern Airlines inaugu-
ral flights, a Caribbean training mis-
sion for NATO forces, and the Senior
Seminar on Foreign Policy.
Surplus Property
The value of surplus property re-
ceived during fiscal 1969 was $129,074.
Of this amount, $67,538 covered ve-
hicles received from the General Serv-
ices Administration for the Department
of Health, Aedes Aegypti program.
The amount of property received as
a result of the division's Puerto Rico
operations totaled only $61,536, while
operating expenses exceeded $33,000.
Due to the sharp decline in the amounts
of property received from military in-
stallations in Puerto Rico during the
last 2 years mainly as a result of the
closing down of one of the largest bases,
the department recommended to the
Governor that no funds be requested
for its operation after the 1969 fiscal
year. The office was closed on June 30,
1969.
The Puerto Rico State Agency for
Surplus Property has verbally offered
their assistance in obtaining surplus
property, and the division intends to
take advantage of this offer.















DEPARTMENT OF LAW


Personnel: 35


The Department of Law represented
the government in a number of cases
involving significant issues including
the extent of legislative powers, admin-
istration of the industrial incentive pro-
gram, and the interpretation of tax
laws. One of the more important mat-
ters was a petition for redetermination
of an income tax deficiency filed by the
Chicago Bridge and Iron Co. This re-
lated to the application of the Western
Hemisphere Trading Corp. subsidy
provisions of the Internal Revenue
Code to Chicago Bridge and Iron's in-
come tax liability to the Virgin Islands
Government.
The case placed in sharp focus the
"mirror theory," which was applied
when the United States Congress cre-
ated the Virgin Islands as a separate
and distinct taxing jurisdiction, even
though the provisions of the Internal
Revenue Code are applicable to the
Virgin Islands.
Since the decision in Virgo v. Paie-
wonsky et al., the government has at-
tempted to implement the "need" test.
This requires that applicants for tax
exemption must justify tax benefits not
solely in terms of additional profits but
also in terms of reduced prices, in-
creased wages, financing and develop-
ment of similar undertakings in other
areas, or other benefits to the economy
of the Virgin Islands.
To this end, comprehensive rules and
regulations are, for the first time, being
drafted by the industrial incentive
board to set the standards necessary to


Operating Appropriation: $500,399

grant partial benefits as provided in 33
V.I.C., secs. 4061, 4071.
In its efforts to collect a judgment of
more than $1 million against the estate
of Van B. Hooper, the office of the
attorney general is prosecuting an ap-
peal in the United States Court of Ap-
peals for the Third Circuit. Previously,
the District Court denied the applica-
tion of the government for permission
to institute a lawsuit against the Ideals
Publishing Co. of Milwaukee, Wis.,
for the purpose of setting aside the
issuance of preferred stock in a man-
ner so as to dilute the value of the
common stock, 5,600 shares of which
constitute the sole asset of the estate
of Van B. Hooper.
The State of New York is now the
prime holdout in reciprocal cases in-
volving arrearages (i.e., Virgin Islands
courts award arrearages for petitioners
in New York but not so in reverse).
However, the Attorney General of New
York has assured the department that
an investigation of this situation will be
initiated.
As chief law enforcement officer of
the territory, the attorney general par-
ticipated in various commissions on the
problems of law enforcement and the
growth of crime. As chairman of the
Governor's special commission on law
enforcement, advisor to the legislature's
crime committee, and a member of the
task force of the commission on human
resources, the attorney general helped
coordinate the efforts of these groups
in investigating the causes and extent







of crime in the Virgin Islands, and in
setting up recommendations for pre-
ventive and correctional measures.
The continuing increase in govern-
mental activities was reflected in the
number of items such as contracts,
leases, deeds, requests for opinions,
and regulations prepared by the
department.
Over 500 legislative items were pre-
pared or reviewed and close to 10,000
matters handled in the municipal
courts. Twenty cases were prepared
for trial in the district court, divisions
of St. Thomas and St. John, and five
in the St. Croix division. Claims for
tort damages of not more than $1,000


each against the government were ad-
ministratively processed, as were more
than 1,000 delinquent workmen's com-
pensation insurance payment accounts,
unemployment insurance premium ac-
counts, hospital bills, and rent and
eviction cases.
Members of the staff participated in
the conference of the Association of
Labor Mediation Agencies, handled
negotiations with the Federation of
Teachers on behalf of the Department
of Education, acted as coordinators in
expediting the completion of work on
the Wayne Aspinall School in St.
Thomas and the Central High School
in St. Croix.















DEPARTMENT OF PUBLIC SAFETY


Personnel: 537

f The Department of Public Safety
continued to emphasize recruit and in-
service training programs, increasing
both the number and scope. Experi-
enced men were added to the staff to
assist in providing knowledge and
sound practices for improved law en-
forcement and security of life and
property in the Virgin Islands.
The number of personnel authorized
for this department was increased from
420 to 537, and the operating budget
was increased from $2,544,073 to
$3,674,585.
The report from the International
Association of Chiefs of Police was re-
ceived in December 1968. This report
made a critical evaluation of the de-
partment and made recommendations
for better administration and opera-
tions. The Department of Public Safety
and other agencies of the Virgin Islands
Government are now studying this re-
port and will implement as many of the
recommendations as are feasible and
possible.
The division of community relations
S celebrated its first anniversary with'a
Police-Community Relations Week
during March 16-22, 1969. The event
was successful and there will be ex-
tensive preparation and production for
Police-Community Relations Week in
1970. During the year, this division also
conducted several programs to foster a
favorable relationship between the
police and the public. In addition, this
division attempted to bring to the at-
tention of the public the work being


Operating Appropriation: $3,674,585

done by the fire and marshal divisions
of the department.
The program of the Police Athletic
League has been expanded to include
creative as well as recreational activi-
ties. In addition to softball, the girls
are learning to sew and cook. A suitable
site is now being sought for a PAL
center on St. Thomas.
The two ministerial associations in
the Virgin Islands-at the request of
the Commissioner of Public Safety-
designated two clergymen to serve as
chaplains for the personnel of the de-
partment on St. Thomas and St. Croix.
In addition, the chaplains serve as co-
ordinators of the religious activities at
the prisons.
A rescue squad was created and
equipped and now provides such serv-
ices as recovery of cars from the sea,
rescuing of persons from wrecked cars,
artificial respiration, mouth-to-mouth
resuscitation, etc.
The Police Cadet Corps was inau-
gurated in July 1968. Its program calls
for 3 years of cadet training leading to
members becoming a part of the regu-
lar police force.
Two patrolwomen were classified as
juvenile officers and assigned to the
newly established Juvenile Bureau.
The need for such a bureau was under-
lined by the sharp increase in cases
involving juveniles.
A field operations unit was created
within the uniformed division of the
police force. This unit will study the
modus operandi of criminal actions and







deploy personnel to detect the per-
petrators of said crimes. This unit also
assigns the personnel to make the police
visible, serving as a deterrent to crim-
inal activity.
An identification unit was estab-
lished on St. Croix, within the Bureau
of Investigation. The sharp increase in
the number of persons requiring con-
crete proof of their identity and the re-
quests from other sources for informa-
tion relative to the identity of certain
individuals led to establishment of this
unit.
A detective patrol was also set up
within the Bureau of Investigation.
This patrol goes into high crime areas
and works to decrease the crime rate
there. The proven effectiveness of this
calls for an increase in its size in the
coming fiscal year.
An intelligence unit was established
and is functioning very efficiently. This
unit was necessitated by the advent of
organized crime into the Virgin Is-
lands.
Narcotics squads were established on
the islands of St. Croix and St. Thomas
since the use of narcotics and other
dangerous drugs throughout the Na-
tion is more acute today. However, the
squads are working long hours to fight
this problem, and over 30 arrests were
made during the second half of the fis-
cal year, as compared with five arrests
made during the previous fiscal year.
The large number of highway fatali-
ties which marred the last fiscal year
was reduced by 75 percent during fiscal
year 1968-69. This dramatic decrease
resulted from the expanded patroling
of the roads and highways by highway
safety patrol units established on both
St. Thomas and St. Croix.
Driver licenses are now in effect for
3 years and are renewable on the birth-
date of the licensee. This law will help
eliminate the problems encountered


each year at inspection and registra-
tion period.
Programs aimed at crime and fire
prevention were presented over local
television stations, and this activity will
be given increased emphasis this fiscal
year.
Several members of the department
received further education in various
areas of law enforcement and four
training sessions conducted by the FBI
were held on St. Croix and St. Thomas.

Business Inspection Ofice
This office was transferred from
the Department of Public Safety to
the Department of Finance effective
July 1, 1968.

Patrol
A total of 9,303 cases was reported
to the police headquarters. As a result
of preliminary investigations con-
ducted by this division, 1,178 persons
were arrested and 1,596 complaints
were filed in the court. Juvenile delin-
quency continues to be a problem for
the department. There appears to be
some difficulty in the interpretation of
the curfew law as it is written in our
code. On St. Croix alone, there were
135 juvenile cases.

Highway Safety
A total of 515 vehicles were reported
stolen and about 240 of these vehicles
were recovered. A special squad utiliz-
ing unmarked cars has been organized
in an attempt to cope with this situa-
tion.
A total of 10,586 traffic summonses
were issued, and 414 driver licenses
were suspended by the court. There
was a total of 3,728 automobile acci-
dents during the year. Motorcycles are
being assigned to accident-prone areas.
See appendix H for table on number
and type of criminal cases handled.








Bureau of Criminal Investigation
A total of 2,616 cases was handled
by the bureau. A total of $331,396.93
in stolen property was reported, of this
amount $67,268.09 was recovered.
Home Guards
The Home Guard was reorganized
and personnel were screened to obtain
men of the highest quality. Increasing
demands for police services make the
Home Guard a vital force for the
Department of Public Safety. Several
governmental agencies are requesting
services which can best be provided by
this organization.
School Guards
The school guards continue to pro-
tect schoolchildren. It has been recom-
mended that the bus guards be placed
under the jurisdiction of the Depart-
ment of Education in order to effect
closer supervision of their activities.
Fire Division
This division responded to a total of
298 fires during the fiscal year and
property damage from fire amounted to
$521,707. There were a total of 31 false
alarms. Expanded facilities for this
division are on the drawing board-
fire stations have been designated for
the Tutu area in St. Thomas, and the
Cotton Valley area in St. Croix. Addi-
tionally, the Christiansted fire station
was moved to larger quarters, and, in
the near future, Fredericksted will have
a new fire station.
Richmond Penitentiary
Land has been designated for the
construction of a new penitentiary, and
it is hoped that ground-breaking cere-
monies can be held in the very near
future.
There are several programs which
are being conducted at the peniten-
tiary. Among them are programs in
fishing, blockmaking, carpentry, auto


mechanics, ceramics, wood-carving,
pottery, and landscaping. An educa-
tional program continues in which the
inmates learn English, Spanish, French,
and typing. In the recreational pro-
gram, the inmates play music, basket-
ball, baseball, and volleyball. Movies
are shown twice a week. Religious
services are held each Sunday and
sometimes on other days during the
week.
Parole Board
During fiscal year 1968-69 the
parole board met twice. In the June
1969 meeting, 11 applications were
considered and seven granted. In the
December 1968 meeting, five applica-
tions were considered and four granted.
Office of the Marshal
The workload of this office has in-
creased sharply, and more manpower
is needed on both islands. During the
fiscal period, more than 30,000 docu-
ments were handled. It has been
recommended that this office be trans-
ferred to the Municipal Court.
Communications
There are a total of nine base sta-
tions and 62 mobile units for com-
munication between headquarters and
the motor vehicles on the streets. In
addition, there are 14 call boxes located
on St. Thomas.
A recent survey conducted by the
IACP found our equipment to be in-
adequate and made several recommen-
dations for improvements.

Training
The training division worked closely
with the College of the Virgin Islands
for the improvement of our police offi-
cers through the police science and
administration program.
Recruit and in-service training were
expanded and outside sources were
employed to complement and supple-


373-289 0-70- 7








ment the training provided by the per- Police and Fire Commission
sonnel employed in this division.
This division gives instruction to all Six hearings were conducted by the
personnel of the department including commission during the fiscal year.
policemen, prison guards, and the NOTE: See appendix H for report
marshals. of criminal cases handled.







-A














MUNICIPAL COURT OF THE
VIRGIN ISLANDS


Personnel: 43


The two divisions of the municipal
court-the division of St. Thomas and
St. John and the division of St. Croix-
operated with a total expenditure of
$341,773 for the fiscal year ended
June 30, 1969. Number of cases han-
dled by the court increased substan-
tially, rising from 16,241 in fiscal 1968
to 19,378 for fiscal 1969.

Division of St. Thomas and St.
John
This division disposed of 10,239
cases during the year ended June 30,
1969, as compared with a total of 8,473
for the previous period. During the
year, the division received 490 appli-
cations for marriage licenses and 464
marriages reported.
The St. Thomas and St. John divi-
sion collected a total of $74,805.50 from
court fines, notary fees, court costs and
fees and other charges, an increase of
more than 39 percent over the previ-
ous year. In addition, a total of $130,
851.59 was deposited with the court for
disbursement in reciprocal and domes-
tic support cases, representing an in-
crease of more than 15 percent over


Operating Appropriations: $358,64(

fiscal 1968. Cash bonds, executions an
judgments deposited with the court
decreased almost 19 percent from
total of $166,856 in fiscal 1968, t(
$135,624.03 for the year ended June 30
1969.

Division of St. Croix
This division handled a total of 9,13S
cases during fiscal 1968-an increase
of 1,371 over the load for the previous:
fiscal year. The division processed 57E
applications for marriage licenses anc
545 marriages were reported.
Collections for the division increase
approximately 25 percent, amounting
to $77,076 collected from court fines
notary fees, court costs and fees an
other charges compared to $61,409.5(
for the previous fiscal year. In addition
the division collected a total of $171
635.15 for disbursements in reciprocal
and domestic support cases, approxi-
mately 17 percent above the total col-
lected in the previous year. Cash bonds,
executions, and judgments handled by
the division amounted to $248,876.69
compared to $219,220 for the previous
fiscal year.















OFFICE OF PROBATION AND PAROLE
personnel : 8 Operating Appropriations: $85,654.00


Since its establishment in 1958, the
;ourts have relied increasingly upon
assistance from the office of probation
md parole. The office submits pre-
ientence reports on individuals await-
ng sentence, prepares reports on
:ontempt matters pertaining to child
support supervises persons placed on
probationn and parole and, in general,
assists the courts in whatever manner
the judges deem necessary.
The office of probation and parole
handled a total of 390 cases during the
year ended June 30, 1969. Of this load,
295 were for the municipal court,
95 for the district court, 14 reports
for other States, and 38 preparole
applications.
At the beginning of fiscal 1969, a
total of 278 persons were under super-
vision. During the year, 242 cases were
referred to the office for supervision
and at the end of the year, the number
was 419.
Along with increasing prosperity and
population there has been an increase
in the crime rate, and the office of


probation and parole is presently heav-
ily burdened with requests from the five
judges for information on individuals
who appear before them.
Also contributing to this increased
work load is the fact that the office
of probation and parole is becoming
better known to mainland agencies
through its affiliation with the Inter-
state Compact Administration. It is
handling increased requests for infor-
mation on persons who, once having
lived in the Virgin Islands, are now
involved with the courts on the main-
land or who, for rehabilitation pur-
poses, are requesting permission to re-
locate in the Islands.
To alleviate the problem of heavier
workload, the office expects during fis-
cal year 1969-70, to complete its re-
cruitment program by hiring three
more probation officers. Funds have
already been requested and approved
for this purpose.
During April and May 1969, the
office secured and moved into new,
larger quarters.




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