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 Title Page
 Appendix A
 Appendix B
 Appendix C
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Department of Social Welfare

Personnel: 1.45 Operating appropriation: $1,098,496


In the fiscal year 1963, the department made notable progress in its
Federal and insular activities. There was an increase in scholarships
for professional social work training. Plans were completed for
securing Federal public housing funds for constructing an aided Self-
Care Home for the Aged on St. Thomas. A master plan was devel-
oped for constructing cottages and improving the program of the
Insular Training School on St. Croix. The department was ably
assisted by the board of social welfare, and the aging and youth
The local public assistance program, however, is still hampered by
the limitation of Federal participation to $330,000 and of this amount
$18,750 can be used only for medical care to recipients of old-age
assistance. Every effort should be made to have the Federal partici-
pation in the Virgin Islands program on the same basis as for the

Public Assistance

The outstanding achievement of the public assistance division has
been the implementation of the Social Security Amendments of 1962.
In accordance therewith titles I, IV, X, and XIV of the Virgin
Islands State Plan on Prescribed Social Services were amended and
approved to become effective July 1, 1963.
Caseload distribution by districts

Caseload Added during year Closed during year Caseload
July 1, 1962 June 30, 1963
St. St. St. St.
St. Croix Thomas- St. Croix Thomas- St. Croix Thomas- St. Croix Thomas-
St. John St. John St. John St. John

DAA --..... 312 214 37 37 60 44 289 207
ADC----- .... 214 85 51 42 55 57 210 70
AB... __......... 13 3 0 0 0 0 13 3
AD ...... ........ 57 38 3 5 5 2 68 41
GA .......----------76 68 22 24 24 42 74 50
EA-- ..........__ 0 0 25 41 25 41 0 0
Total..-------. 672 408 138 149 169 186 654 371

721-848 -64----4 45


Comparison of caseloads and expenditures

Number of persons aided Expenditures

June 1962 June 1963 1962 1963

Old-age assistance ----- ---------- 532 491 $227,370.25 $219,071.34
Aid to dependent children..---------------..--- ------ 1,043 1,032 205,507.85 209,929. 68
Aid to the blind-----------------16 15 6,499. 00 6, 382.25
Aid to the disabled ....----. ---------- ------------ 96 92 40,935.75 37,314.02
General assistance ....----------------------- ---- 144 160 56,449.41 63,015.43
Medical assistance to the aged ------------------------- 451 480 25,215.19 29,176.04
Total...----- ---------------------------- 2, 282 2,270 561,977.45 564.888. 76

Comparison of caseloads 1958-63

Number of persons 1958 1959 1960 1961 1962 1963

Old-age assistance ----------------- 620 584 561 527 532 491
Aid to dependent children --------- ----------- 785 777 922 865 1,043 1,032
Aid tothe blind ...-- -------------------------- 21 20 19 19 16 15
Aid to the disabled ---- --------------- 103 101 107 98 96 92
Total Federal categories ..._----- ---------- 1,529 1,482 1,609 1,509 1,687 1,630
General assistance .----. -------------. 128 118 107 124 140 160
Grand total__ ---- ----------------- 1,657 1,600 1,716 1,633 1,827 1, 790
Medical assistance to the aged .----.------------ ----------- 288 451 480

.A total of 319 applications for assistance were received during the
year (St. Croix, 145; St. Thomas-St. John, 174) as compared to 502
received last year. Those rejected as ineligible totaled 74 as com-
pared to 92 last year. Three hundred and fifty-five cases were closed
compared with 390 cases last year and 287 were opened this year as
compared with 421 last year.
Several new policies and procedures were developed during the
year. In cooperation with the department of law, policies were devel-
oped for recovery of public assistance payments improperly received.
Planning was underway at year's end to make a special study of the
emergency and general assistance program during the next fiscal year
and to explore the possibility.of broadening policies to include needy
children who are presently ineligible for ADC because of living in
nonrelative homes.
By June 30, 1963, 480 persons had received benefits under the medi-
cal assistance for the aged program (St. Croix, 268; St. Thomas-St.
John, 212) as compared with 288 persons in 1962.


Total cost of assistance program, including administration, 1959-63

Category 1959 1960 1961 1962 1963

DAA--- ------.-----------------... $199, 824. 92 $200, 763. 47 $222,690. 29 $265,529.05 $258, 920. 32
ADC ... ------------.---.. --.......- 151,113.88 182,509.79 213,981.57 256,519.50 262,120.81
AB-...--.-------------.---.....---- 7,637.51 8,005.86 7,941.73 8,041.52 7,900.20
AD...........----------....-----..._- 36, 684.08 41,357.30 47,308.70 47,049.87 44, 354.38
MAA_... -------------------------.------------...-------_ 11,523.76 44,540.86 46,047.07
Total Federal category ---. ..---- 395,260.39 432,636.42 503,446.05 621,680.80 619,342.78
GA.-.-----------...... .....------ .... 49,911.84 49,092.69 60,047.77 76,655.70 89,681.51
Trust funds .----..---------.......- -.....-586.00 822.00 716.00 1,132.75 1,180.75
Emergency and special aid---..---......... 6,482.76 5, 777. 57 763. 06 19, 742. 53 6, 717. 55
Total local category...... ..------- 56,980.60 55,692.26 61,526.83 97,530.98 97, 579. 81
Grand total----.-..........-......... 452,240.99 488,328.68 564,972.88 719,211.78 716,922.59

Sharing of total cost of assistance program including administration

Agency 1959 1960 1961 1962 1963

Federal.... -----. -- --......_---. $195, 248. 58 $216,116. 23 $251,154. 02 $308,317.31 $300,704.48
Local....--......--------- ....-----..... 256,992.41 272,212.45 313,818.86 410,894.47 416,218.11
Total--......-- .... ___.......-......_ 452,240.99 488,328.68 564,972.88 719,211.78 716,922.59

Child Welfare Services

The division places great emphasis upon providing individualized
services that will promote security for children and help them to grow
and develop in a normal manner. Primary emphasis is placed upon
providing services to children living in their own homes. Adoption
service, foster family care, and institutional care are provided for
homeless, independent, neglected, or delinquent children. Day care
is provided to children whose mothers must work to assist in support-
ing or to support the family. As a result of severe problems of juve-
nile delinquency, casework services to children started in 1943. The
schools, the police, and courts were asked to refer to the department
problems regarding children and to secure from the department
studies and recommendations before taking final action about
children's cases.
In 1963 casework service was provided to 1,130 children (St. Croix,
638; St. Thomas, 492), as compared with 906 last year and 736 the
previous year. Below are tables showing the type of services and
distribution of the caseload during the year.

Caseload distribution by district offices

St. Croix St. Thomas Total

Children receiving service July 1, 1962-----------------------.. 389 343 732
Children accepted for service during year --------------...... .. 249 149 398
Children receiving service June 30, 1963----------------------- 427 293 720
Total number of different children receiving services during
year----.......-----....--___..._._......__.....--------. 638 492 1,130


Location of children receiving service June 30, 1963

St. Croix St. Thomas Total

In home'of parents ----------------------------------------205 153 358
In home of relatives..------------------------------------- 64 19 83
In boarding homes..------------------------------------ 76 56 132
In free foster homes------------------ 28 9 37
In adoptive homes ---- 2 23 25
In institutions ------------------. 32 31 63
Juvenile center.---------------- ---------------------- 9 -------------- 9
Elsewhere .-----.......----------- ----------..---------- 11 2 13
Total------------------ --- -------- 427 293 720

Foster Family Care

The foster care caseload was 194 (St. Croix, 106; St. Thomas, 88),
as compared with 188 (St. Croix, 99; St. Thomas, 89) last year.
Twenty-five were in adoptive homes, 37 in free foster homes, and 132
in boarding homes. These children lived in a total of 46 (St. Croix,
25; St. Thomas, 21) foster homes. Expenditures for board payments
increased to $52,587.77 as compared with $48,517.36 last year.

Insular Training Schools

The schools have continued to achieve heartening improvement in
services and in child and staff morale. Care was provided for a total
of 79 children (61 boys, 18 girls). Inservice training programs
throughout the year focused on helping staff to better understand the
youngsters' problems and to develop greater skills in treatment.
The department of education provided academic services to the
schools through two full-time academic teachers. An average of 37
children attended classes at the institution while 25 attended high
school in town. Thirteen children were promoted to the seventh
grade; 24 of the high school students were promoted, 1 of whom re-
ceived a ninth grade:,certificate.
The bureau of mental health provided limited psychological and
psychiatric services to the institution. A physician was assigned on a
part-time basis to provide regular physical.examinations and immuni-
zations to all the children. The health educator showed films and
lectured to the staff and children on proper health care.
The boys' school provided care for a total of 61 boys (St. Croix,
29; St. Thomas, 32) with enrollment averaging 51 boys. The average
age of boys in residence was 14 years. Nineteen boys attended high
school in town.
The girls' school was at full capacity of 13 throughout the year and
provided care for a total of 18 girls (St. Croix, 10; St. Thomas, 8).
The average age of girls in residence was 15 years.


Detention Care

On St. Thomas, land was assigned for a youth care center. Con-
struction plans will be completed early next year. A similar facility
on St. Croix was included in the master plan for the training schools.
Ten children received detention care in St. Thomas. The juvenile
center provided care for a total of 21 boys (St. Croix, 19; St. Thomas,
2) with enrollment averaging 12 boys.

Other Services

During the year, the division processed 7 (St. Croix, 2; St. Thomas,
5) adoption petitions for the courts and completed 6 (St. Croix, 2; St.
Thomas, 4) agency placements. The division screened 125 needy
children (100 boys, 25 girls) for summer camp. The number of day
care centers increased from 4 last year to 10 (St. Croix, 6; St. Thomas,
3; St. John, 1). An average of 72 children per month, as compared
with 47 per month last year, used this service. The youth commission
sponsored a Governor's Conference on Juvenile Delinquency in May
and reactivated youth organizations on all three islands.
The child welfare program is summarized in the following tables'

Cost of child welfare program

Insular St. Croix St. Thomas Virgin Islands

Local funds:
Child welfare services --- ..------- --- -- $9,353. 70 $11,112.07 $20,465. 77
Foster home payments--------------- 27,528.58 25,059.19 52,587.77
Insular training school-
For boys ----------------------------- $95,116.76 ----- 95,116.76
For girls -------. 16,832.93 ------- .. -------- 16,832.93
Day care centers-------------------------- --- -- 2,765.37 10,577. 51 13,342.88
Total --. $111,949.69 39, 647.65 46,748.77 198,346.11
Federal funds: Child welfare services ------ 18,817.62 23,005.66 29, 781.77 71, 605.05
Grand total------------------ -------- 130,767.31 62,653.31 76,530.54 269,951.16

Cost of child welfare program, 1959-63

1959 1960 1961 1962 1963

Local funds:
Child welfare services .-- ----- $12,970.82 $16,976.96 $24,295.74 $26,349.87 $20,465.77
Foster home payments. ---- 32,869.42 34,386.30 48,060.60 48,517.36 52, 587. 77
Insular training schools-
For boys ------ -...--------. 66, 293. 77 67,265. 29 81,014. 53 106, 574. 09 95, 116. 76
For girls ..- ---------------- 13,898.29 16, 271.45 19,037. 51 17, 718. 97 16,832. 93
Day care centers- ---- ------ 3,374. 95 11,980. 51 12, 344. 55 13, 342. 88
Total ----------------------------- 126,032.30 138,274.95 184,388.89 211,504.84 198,346.11
Federal funds: child welfare services....--- 29,139.89 49,442.59 50,707.72 56,985.97 71,605. 05
Grand total-..-------...------- 155,172.19 187,717.54 235,096.61 268,490.81 269,951.16


Division of Institutions and Special Programs

Homes for the Aged
St. Thomas.-The Queen Louise Home, capacity 24 beds, provides
custodial care for the aged and infirm. At yearend, there were 20
persons in residence. During the year, there were 11 admissions and
8 deaths and 1 person returned home. A nurse-aide was added to the
staff and provisions made for better medical coverage.
The Corneiro Home is a shelter-care home, capacity 25 rooms.
During the year there were 5 admissions, 1 death, and 3 persons moved,
leaving a total of 28 residents at the end of the year. Several rooms
were repaired during the year, but the buildings are still in poor con-
dition and in need of major repair.
St. Croix.-The Aldershville Home is a shelter-care home, capacity
25 rooms. During the year there were 3 admissions, 1 death, 1 person
moved and 1 transferred to a custodial care home, leaving a total of
28 residents. An overall improvement program was nearing comple-
tion at yearend.
The Herbert H. Grigg Home is a multifunction institution serving
as a home for the aged, a residential facility, and a nursing home.
There were 33 admissions, 17 deaths, 3 discharges, leaving a total of
118 residents. The morale of residents was vastly improved and
greater emphasis placed on restoration of function, rehabilitation, and
maintenance of a homelike atmosphere.
National recognition of our homes for the aged was accomplished
by membership in the American Association of Nursing Homes.

Special Programs
Cancer Care.-It was necessary to continue to send Virgin Islands
patients for care at the Puerto Rico Cancer League. During the year,
five new cases in St. Croix and nine in St. Thomas were referred. For
the first time, the program was financed completely by government
funds. Expenditures amounted to $8,480.45 as compared with
$7,219.25 last year.
Services to the Mentally Ill.-A limited amount of casework service
is provided for mental patients hospitalized in the Virgin Islands
while in institutional care and when being discharged. The division
has full responsibility for planning and arranging the escort and re-


turn of mental patients from St. Elizabeths Hospital, Washington,
D.C., where 133 such patients are hospitalized. Two patients were
returned from St. Elizabeths and were provided after-care casework

Surplus Foods Distribution Program

Approval was received during the year to extend distribution to
needy families who are ineligible for public assistance but who are
in poor economic circumstances. Surplus commodities have been dis-
tributed to public assistance clients, hospitals, homes for the aged,
baby clinics, and other institutions since the program's beginning in
July of 1961. The overall caseload increased from 1,374 families
representing 2,385 persons to 1,422 families representing 2,660

Federal surplus commodities received

Commodity Pounds Wholesale Retail value

Cornmeal --...-------------- -.-.-. ----.. 82, 525 $5, 364.13 $7, 427. 25
Wheat flour -------- ---. .--------- ---- 86, 606 5, 629. 39 7, 794. 54
Dry beans ------------------- --.- ........... .... 56,058 7, 848. 12 11,211.60
Chopped meat--..--.---. -.. _-... --_ --.. -----.. --- 50, 8333 2 22,366. 95 33, 042. 08
Dry milk.-- - --- -- -- ... . 118, 350 23, 670 00 75, 744. 00
Rice. ----------------- .---------- --- 105,4371 i 6 10,543.78 16,870.04
Butter -.... ---------. --------. -------- 3,668016 2,934.80 3,595.13
Cheese.....--. ------------ -----------.. 44,365$16 24,401.03 31,055.85
Rolled wheat. --.------------------ 57,987 12, 177. 27 17, 396.10
Lard---- ....--------- ------------------- 18, 552 3, 710.40 4, 638. 00
Shortening----..---.---.. ----------------------------- -. 37,404 11,221.20 12,343.32
Total ....---. ---------------.-----. __----.---- 661,7872%2 129,867.07 221,117.91

Community Chest

The 1963 drive was highly successful with the goal of $15,000 sur-
passed by pledges and contributions totaling $16,597.84.
The following is a summary of traditional chest services provided
during the fiscal year:

Program Cost Services rendered

Housekeeping and laundry-..-------_--- $2,597.93 2,648 cleaning, etc., 2,600 pieces.
Home nursing------------ 4, 486. 24 Home nursing care for the aged under supervision
of public health nursing division.
Emergency needs-..-_------------_ 1,835.00 Cash grants, emergency assistance loans, etc.
Special aid to patients in institutions-...- 574.00 Monthly spending grants to residents of homes
for the aged.
Homemaker service, St. John-....---- 347.82 Care for the aged.
Cancer care.....----- -- ---. - 3,143.00 Hospitalization, travel, and grants.



The growth of the department of social welfare may be summarized
in the following chart which shows appropriations by the local legisla-
ture for social welfare over the past 5 years:

Operating budget-Local appropriations

1959 1960 1961 1962 1963

Office of the commissioner _..__.------- ----- -- $24,400 $27,000 $29,977 $30,032 $54, 286
Bureau of business management-...--.------- ----- 40,000 41,628 45, 614 67, 039 79, 946
Division of public assistance ----------------------- 214,800 254,558 308,558 376,781 452, 600
Division of child welfare .-- ------------- 118, 000 138, 275 172, 487 199, 163 215, 349
Division of institutions and special programs..-----. 40,000 70, 600 91,030 192, 142 121,545
Herbert Grigg.Home ----------------------- ------------ ----- ------- -------- 174, 770
Total ......-------.--------------------. 437, 200 532, 061 647, 666 865,157 1,098,496

Department of Commerce

Personnel: 79 Operating appropriation: $936,079

The economic growth and development of the Virgin Islands reached
new heights in fiscal 1963, as revealed by all statistical indicators. The
administration's motivating force to stimulate and expand this record
growth is the department of commerce.
Principal divisions of the department are the visitors bureau, for-
merly the tourism division; the division of trade and industry, and
the marine and aviation services division. The department also op-
erated the Virgin Islands News Bureau in fiscal 1963. However, at
year's end, the functions served by this bureau were transferred to a
newly authorized Virgin Islands Government News Bureau which
operates under the office of the Governor to coordinate all news and
public relations activities of the government.
The department of commerce maintains government information
centers at Rockefeller Center in New York City and in Old San Juan,
Puerto Rico. Also, this department is responsible for advertising and
promotion of the Virgin Islands rums, and the commissioner is chair-
man of the Virgin Islands Rum Council.
The commissioner of commerce also serves as liaison officer to the
U.S. Travel Service in Washington and as Administrator for the
Virgin Islands of the Area Redevelopment Administration of the U.S.
Department of Commerce. He also is chairman of the Economic
Development Board of the Virgin Islands and a member of the stand-
ing committee of the Caribbean organization.
That the accelerated program for development is achieving excellent
results is revealed in the following record high statistics.

Tourism Leads in Record Economic Growth
Tourist expenditures reached an alltime high of $41,070,000 as com-
pared with $35,145,000 in fiscal 1962 and $25,817,000 in fiscal 1961.
The increase in tourist expenditures of $15,253,000 in the past 2 fiscal
years is more than the total tourist expenditures for the Virgin Islands
in any fiscal year up to and including fiscal 1957 and almost as much
as the total tourist expenditures in fiscal 1958.

. Per.capita income hit a new peak for the Virgin Islands of approxi-
mately $1,200 in fiscal 1963-the highest in the Caribbean.
Total bank deposits in the Virgin Islands on January 1, 1961, were
$35 million and at June 30, 1963, were at an alltime high of $51,700,000,
an increase of $16,700,000, or almost 50 percent. Even more impor-
tant, total bank loans in the Virgin Islands on January 1, 1961, were
$16,500,000 and at the close of fiscal 1963 were at an alltime peak of
$32,200,000, an increase of almost 100 percent.

Advertising and Promotion
The department's advertising program which had been initiated the
previous year continues in all media. New markets were studied and
developed for greater effectiveness. Tourist interests as well as sea
and air carriers continued to place individual advertising in coop-
eration with that scheduled for the government which gave the over-
all program the value of greater scope and impact.
The department is cooperating in, and is hopeful that fiscal 1964 will
see, the establishment and operation of hotel inservice programs at
both the high school and college levels to train Virgin Islanders for
managerial positions in this industry.

New Businesses Encouraged
The trade and industry division continued its work of offering advice
and assistance to new businesses which were considered suitable for
location in the Virgin Islands. A total of 8 new industries were estab-
lished during the past fiscal year, making a total of 20 new industries
for the past 2 fiscal years-a record for any previous like time period
in Virgin Islands history. New businesses established during this
last fiscal year include watch assembly plants, a chemical plant,
jewelry manufacture, manufacture of women's slacks, a knitting mill,
and a rice polishing plant.

Trade -and Commerce Rise
Imports into the U.S. Virgin Islands reached a new high of $61,803,-
509 in calendar 1962, and exports a new.high of $20,064,920, an increase
of 119 percent over calendar 1961. It is important to note that the
balances of payments .deficit is not as serious as it appears. Retail
tourist establishments sold $22,270,000 in gifts, liquor, and fashions to
tourists, most of which were items imported into the U.S. Virgin
Islands and do not appear in export statistics.
A new jet airstrip at the Alexander Hamilton Airport in St. Croix
has seen the inauguration of nonstop jet service by Pan American

F '

The Virgin Islands has become headquarters for more and more charter boats, and
sport fishing came into its own in fiscal 1963 with the discovery of fabulous new fishing
grounds off St. John.

World Airways from New York. It is expected that scheduled flights
will increase with the further development of the airstrip to nonre-
stricted jet length use.
Work commenced on dredging the St. Thomas Harbor which will
be completed in September 1963. Work also commenced during the
fiscal year on the construction of new dock facilities at Christiansted,
St. Croix, and it is expected to be completed and turned over to this
department for operation in October 1963.
At the present time, there is an increase of almost 2,000 percent
(215,000 air passengers in fiscal 1963, and 12,650 in fiscal 1950) since
fiscal 1950 in numbers of air passengers carried to the Virgin Islands.
Aside from cruise ships, which bring only day passengers, there are
no means of transportation other than air for a tourist who wishes
to visit the Virgin Islands for more than 1 day.

Visitors Bureau
The visitors bureau handled and supervised, in conjunction with
the New York, San Juan, and St. Croix offices, the distribution and



mailing of almost 500,000 pieces of assorted literature pertaining to
tourism. During the past year, this bureau made approximately
105,000 replies to the traveling public's inquiries.
Approximately 22 important groups visited the Virgin Islands
during fiscal 1963 totaling approximately 2,500 persons. During this
same period, a total of 163 cruise ships carrying a record 64,239 pas-
sengers visited the Virgin Islands. This compares with 131 ships
carrying 57,799 passengers during fiscal 1962. Two of the cruise ships
calling at St. Thomas also visited Caneel Bay, St. John, during the
month of October 1962. A total of four ships visited the island of
St. Croix using the new facilities at the Frederiksted pier. These
ships carried a total of 1,864 passengers.
The following chart shows the tourist statistics for the past 10

Fiscal years Air traffic Cruise ships Other Totals

1953-54 ----. --- 45,795 13,323 18,882 78,000
1954-55 -------------------------- .. 54, 864 16, 00 20, 763 91,627
1955-56 ----- --- ---- 63,000 18,500 29.300 110,800
1956-57 ---- --------- 76,200 22,035 22,000 120,235
1957-58 ..--. ----- --- -- .---- -- ------------ 85,800 35,420 10,780 132,000
1958-59..---------------------.-------- 107, 400 37,000 19, 600 164,000
1959-60- .----..------ ---------------- 124,400 49,700 30,000 204,100
1960-61 -.---------.........-------- 146, 100 57, 000 51, 60 254, 7C0
1961-62-- ...-. -.-------.------------ 187.712 57,799 45,539 291,050
1962-63 ...------.--. - -----------. 215,809 64,239 51,201 331,249

Total tourist expenditures for the past 5 years were as follows:
1958-59 $-------------------------- $21, 738, 000
1959-60--- ------------- -- 24, 780, 000
1960-61 ---------- ---------------------------- 25, 817, 000
1961-62-------- ---------------- --- 35, 145, 000
1962-63---------------------------- --------------------- 41, 070, 000
It was determined by the advertising agency that the most powerful
appeal the U.S. Virgin Islands could make to the-vacation market
was the emphasis of excellent weather. It was therefore decided to
put this promise into the form of a guarantee whereby the room rate
will be returned by the participating hotels in the Virgin Islands to
the visitor on any day the mean temperature falls below 70 degrees
or rises above 88 degrees.

.News Bureau

Mainland communications media reported generally on all facets
of the Virgin Islands progress with particular emphasis on the College
of the- Virgin Islands and tourism. The news bureau placed in all
types of-media a flow of information which if purchased as adver-
tising space or time would have cost. approximately $4 million. The


news bureau function is a vital link with the ever-increasing and
important tourism development program.

Rum Council
Residents of the United States continued to purchase the Virgin
Islands rums at an increased rate. The rum council continued its
national advertising and sales promotion program begun in fiscal 1962.
Rum exported from the Virgin Islands during fiscal 1963 totaled
840,341 proof gallons, an increase of almost 13 percent over 1962.

5-Year Comparison
Proof gallons
1959----------------------------------------------------------- 523, 513
1960------------------------------------------------------- 618, 170
1961 -----------------------------------------------------------720,758
1962 ----------------------------------- ------------ 741, 260
1963---------------------------------------------------- 840, 341
Excise tax payments on shipments to the United States during
fiscal 1960, 1961, and 1962 include approximately $1,070,000 of alco-
holic spirits other than rum.
Although the rum promotion budget is inadequate by comparison
to competition from the rums of Puerto Rico, the Virgin Islands Rum
Council has set a goal of $8,500,000 for the return of internal revenue
taxes for rum shipped into the United States for fiscal 1964.

Marine and Aviation Services
This division supervises and operates the government-owned docks,
wharves, and airports and has charge of registering and licensing
small boats, both private and those for public hire.
The service at present consists of the harbor division, St. Thomas,
covering all marine activities in the islands of St. Thomas and St.
John; the harbor division, St. Croix, covering all marine activities in
the island of St. Croix; and the Alexander Hamilton Airport, St.
Croix, covering all aviation in the island of St. Croix. The airport in
St. Thomas has not yet been turned over to the operational manage-
ment and control of the marine and aviation services. This property
which has been reported as excess by the Navy Department will be
acquired by the territorial government in the near future.
The dredging work at Christiansted harbor has been completed.
The construction of the new dock in Christiansted harbor has not
yet been completed, but it is anticipated that it will be ready for com-
missioning about October of this year. On June 2, 1963, a ship
collided with the pier at Frederiksted, doing extensive damage. The"
damage is amply covered by insurance and it is expected that repair
work will soon start.


Frederiksted, with its deepwater pier on St. Croix, is rapidly coming into its own as a
popular Caribbean cruise port. Above, the Bergensfjord and Riviera Prima, with a
combined capacity of 1,000 passengers, are moored at the pier. Some 40 cruise ships
are expected to call at Frederiksted during the winter season.

Shipping at the port of Charlotte Amalie, St. Thomas'

Fiscal year Number Tonnage revenues
of ships collected

1959 .----------------- 429 3,053,415 $32, 254. 00
1960 .. ......- --------------------------------- 547 4,037,094 39,183.00
1961 .--. ---------------------------------------------- 748 5, 099,833 49,571.50
1962..-.------------------------- 716 4,696,744 42,353.50
1963 -------------------------- ------ 593 4,649,286 39,902.25

1 These figures include only ships over 100 tons gross.

Harbor service, St. Croixs

1959 1960 1961 1962 1963

Arrivals .---------------------------- 887 887 905 953 893
Departures ....--------------------------- 887 887 894 949 887
Gross tonnage ---------------------- 63,409 61,199 75,123 77,218 88.642
Revenues--..... .-,-- ------------ ------------ ----------- -------- $24,901
Arrivals ----------------------------- 193 208 162 159 300
Departures --------------------------- 193 208 162 159 300
Gross tonnage .---------------------- 267, 64 315,630 343,515 353,059 422,089
Revenues.-....--- -------------------..--------- ---- $53,358

1 These figures include all ships and vessels including those under 100 tons gross.


Alexander Hamilton Airport

Travel by jet aircraft to and from St. Croix started during the
year and has continued without mishap to person or equipment. Ac-
commodation for medium and small size aircraft has been provided
by taxiway and parking area. The water system has been improved
by two wells and should work out satisfactorily.
The following traffic took place during the fiscal year:

1959 1960 1961 1962 1963

Harry S Truman Airport:
Military aircraft. ------ --------------- 1,165 910 659 1,082 939
Scheduled airlines-...----- ----------------..... 5,372 7,001 7,597 10,117 8,737
Nonscheduled and private------------ -------- 1,208 2,598 3,266 3,846 2,101
Air taxi ------ -- 4,017
Passenger arrivals-------------..--------------- 93,397 125,384 120,717 189,496 211,500
Passenger departures-...--------------------.. (1) (1) 129,883 181,651 248,536
Total revenues--- ----.. .------. -------- $39,913 $27,206 (1) (1) $43,183
Alexander Hamilton Airport:
Military aircraft.---------------------------- 340 360 400 2,000 2,248
Scheduled airlines--------------------- 1,520 2, 04 2,855 3,555 3,258
Nonscheduled and private------------------ 1,800 (1) 2,880 2,892 3, 506
Passenger arrivals ----- -------------- 43, 521 95, 535 58,829 85,365 123, 774
Passenger departures-.-- --- ----------- 42,865 95, 655 58, 748 88,624 125, 937
Total revenues...------.--- --------- -$21,817 $25,387 (1) (1) $76,695

1 Figures not available.

Division of Trade

Eight new manufacturing industries were established during fiscal
year 1963, less than fiscal year 1962, but greater than all other previous
fiscal years. Calendar 1962 was a significant year for the Virgin
Islands with respect to the volume and composition of external trade.
Total imports climbed to $61,803,509, representing a dollar increase of
$11,052,483 over the previous year and a corresponding increase of 26
percent. The volume of exports represented a phenomenal rise over
exports of the previous year. The 1962 exports were valued at $20,-
064,920 compared with exports of $9,133,124 in the previous year, or an
increase of 116 percent. Of the total exports, $19,118,647 were shipped
to the United States. Textile processing accounted for 46 percent of
exports to the United States, while watches and watch movements
were 13.5 percent of the exports.

Comparison of imports and exports-Total trade, calendar years 1955-62

Year Imports Exports Total trade

1955 ---------..........................-.--- .-----.... $16,255,575 $4,116,053 $20,371,628
195..--.............-- ---------------- ..........18,947, 426 5, 597,161 24, 544,587
1957.......................----------------.. ----- ---.. 21,239,242 5, 006,873 26,246,115
1958 ----------..... ............................----- ... 23,622,093 3,534,805 27,156,898
1959--.--.-......----.- --------------------. 33,642,297 6,273,623 39, 915, 920
1960------------...---.....---------------------------.- 42,282,052 8,255,017 50.637,069
1961.--------- ---------. ----------------................. 50,208,444 9,133,124 59,541. 568
1962 -----...........-----............ -------------... 61,803, 509 20,064,920 81,868,429

Tourism became a $41 million industry, the islands' largest, in fiscal 1963. Hundreds
of thousands of visitors like the ones above enjoyed free port shopping in the picturesque
stores of St. Croix, St. Thomas, and St. John.

Comparison of imports and exports-United States and foreign, 1961-62

1961 1962

Imports from United States .------------------------------------------- $38,725,786 $40,593,468
Imports from foreign-----....---------------------------------------- 11,482,658 21,210,041
Total............... ------------ ------------- 50, 208, 044 61,803, 509
Exports to the United States ....---------------------------- 8,317,418 19,118.647
Exports to foreign ........-------------- 815,706 946.273
Total ....-.. ..--..... .--.- --------- 9,133,124 20, 064,920

Department of Agriculture and Labor

Personnel: 78 Operating appropriation: $334,700
Division of Agriculture

Gains have been accomplished to develop export markets for vege-
tables grown on St. Croix.
A contract was signed for the growing of pickle cucumber, the crop
was sent by air cargo to the mainland and the program was successful.
After summarizing the production records of the pickle cucumber
crops, it was found that in comparison with sugarcane, the cucumber
offered a greater net return per acre (sugarcane, $133; cucumber,
$248). Besides, the cucumber crop was produced in one-third the
time required to produce a sugarcane crop.
This office recognizes that only during the winter months would
prices be high enough to permit the mainland marketing of local vege-
table produce. The conclusion is that with a well organized and
efficient marketing organization, adequate rainfall or irrigation, equip-
ment and financing, every acre of soil with good topography can be
put to good economic farm use.
Most of the vegetable production program was conducted at the
newly acquired acreage at Estate Lower Love. Among the other
crops, the following acreage and production were recorded:

Crop Acreage Production
Tomato------.------------- -------- ------------------------... 1.5 7,750
Pepper .. ---------------- ------------------- ------... 2.0 5,600
Onion-.----.-------------.----------.....--------------...- .5 500
Cabbage ----- -------------------------.---------.... 1.9 3,880
Yam ..-----------.-.---.-------- ---------- -....-------- .75 22,000

Loans to Farmers and Fishermen
During the reporting period of 1961-62, 20 farmers received loans.
This year, the total number of farmers and fishermen on this program
is 51. Efforts are being made to make this a truly functional revolving
loan fund. Borrowers on this program cover all three islands.

721-848 0-64---5


Sugarcane Subsidy Program
Under the Sugar Cane Act, applications of 127 farmers were certi-
fied to receive subsidy payment for sugarcane delivered to the factory.
At the rate of $1 per ton of cane, total subsidies paid amounted to
$30,759. Nine farmers received subsidies from $1,500 to $2,000; 1
farmer received from $1,000 to $1,499; 7 farmers were in the bracket
from $500 to $999; 26 farmers received between $100 and $499; 13
farmers received from $50 to $99 and the great majority of 71 farmers
received subsidies in the $1 to $49 bracket. No appropriation was
made for this subsidy after June 30, 1963.

Swine Improvement Program
This program continues to supply baby pigs and breeding service
to farmers who wish to upgrade their herds.

Soil Conservation Service
Early this year, the Soil Conservation Service was transferred from
the Virgin Islands Corporation to this department with an appropria-
tion of $100,000 from matching funds. The dam construction pro-
gram is serving a pressing need. Fifteen dams forming reservoirs,
ranging from 163,000 to 750,000 gallons were completed on the three
islands. In order to speed up this work, all efforts are being made to
replace the old, inefficient equipment with new efficient models.

The St. Croix Abattoir at Estate Anguilla is almost completed. It
is expected that this new plant will help to open new horizons for the
local beef cattle industry.
During this period, 629 animals were slaughtered at the abattoir in
St. Thomas.

Parks and Beaches
Several thousand ornamental plants were used to beautify the many
parks of the Virgin Islands.
The new Isaac Boynes Park at Estate Grove Place was completed.
This park set a time and cost record for the completion of this type of
recreation area. A new bandstand, children's playground, drinking
water facilities, ornamental plants and lawns have transformed this
former neglected area into a spot of which all citizens are proud.
Cramer Park, on the eastern end of St. Croix, serves the public and
visitors daily, and continues to be the No. 1 holiday and weekend


Other Activities
The development of new headquarters at Estate Lower Love is in
progress. It is expected that this new Agriculture Center would be
the seat of all expansion of local industry. All of the fields are in
good tilth through the use of the department's agricultural equipment.
Some important jobs to be accomplished before the end of the cal-
endar year 1963 are construction of a new modern office building, and
fencing of the entire farm. Other installations planned for the future
include buildings for vegetable packing and distribution, tractor sheds
and workshops, and irrigation equipment.
Physical development of this site and agricultural programs will
be conducted simultaneously.

Workmen's Compensation
During the year a total of 786 injuries were reported which, to-
gether with a number of cases carried over from the previous fiscal
year, resulted in the adjustment of 775 cases. In processing these
reports, 1,279 separate awards were made. The total money value

The assembly of watches has become one of the leading new industries in St. Croix.
Labor is being trained in such occupations, thereby earning more than the wages for menial
work. The result is a steadily rising standard of living in the Virgin Islands.


arrived at in the disposition of the cases handled was $117,302.90,
which is explained in the following breakdown:
Temporary total disability----------------------------------- $47, 079. 82
Permanent total disability----------------------------------- 5, 359. 86
Permanent partial disability------------------------------ 31,438. 25
Medical costs, including transportation and physicians fees ----- -33, 424. 97

Total --- ---------------------------------------- 117, 302. 90

Wage and Hour Administration
Under the Fair Labor Standards Act, overtime and back wages were
collected from employers totaling $16,334.35. The major portion of
this figure covered overtime and resulted from employers' failure to
comply with the provisions of Act No. 791 relating to overtime pay
for the sixth day in a given workweek.
As in the previous year, most of the individual complaints of wage
violations received were filed by nonresident workers.
Two studies regarding prevailing wages were completed under the
provisions of the Fair Labor Standards Chapter of the Virgin Islands
Code. The wage rates arrived at as a result of these studies are being
used by the employment service in the employment of nonresident
workers and are higher than the minimum rates established by the
wage board.
There are five wage orders in effect covering industries in the Virgin
Islands as of June 30, 1963. In conformity with Act No. 791, the
wage board has to continue its work during the 1964 fiscal year by
reviewing previous wage orders to fix at least three categories in each
industry. Before this act became law, the board fixed a single
minimum rate in several industries.

Division of Apprenticeship and Training
This division received a total of 90 applications for apprenticeship
and 17 applications for training. There were 43 placements made in
apprenticeship of which 38 were active as of June 30, 1963.
Programs registered for apprenticeship included automechanics,
carpenters, masons, diesel mechanics, electricians, engineering aids,
radio electricians, survey-draftsmen, watch repairmen, and welders.
All applicants for training were placed and these were all former
telephone operators on St. Croix.

Office of Veterans Affairs
This office made a total of 2,067 contacts with veterans and their
dependents, servicemen and their dependents, representatives of
government agencies (insular and Federal), private enterprises, and
other interested persons.

Virgin Islands Employment Security


Personnel: 35 Operating Federal grants: $125,812
During the fiscal year, the legislature enacted a law creating the
employment security agency, an independent agency under the office of
the Governor.

Placement Services
Total nonagricultural placements for the fiscal year were 1,450.
For the purposes of comparison, there are listed below placement
activities for the fiscal years 1959 through 1963.

1959 1960 1961 1962 1963
Total nonagricultural placements--------- ...--- 3,061 3,203 3,492 4,346 1,460
Professional and clerical--..------.---------.-------. 238 373 470 413 325
Service-.--------------------- ......--------729 941 1,135 1,549 448
Skilled and semiskilled.---.-- --------._______. 1,225 911 802 909 363
Unskilled and other-..---------.---------....---- 869 978 1,085 1,475 314

For the same period, nonagricultural openings certified for the
employment of foreign nationals were 13,349. Agricultural openings
certified for alien Workers numbered 1,505.
Recent changes in the interpretation of the placement count invali-
dated a comparison of nonagricultural placements between fiscal years
1962. and 1963. However, using fiscal years 1961 and 1963 for which
the same statistical standards were in effect, a comparison shows a
decline in fiscal year 1963 from fiscal year 1961 by 2,042 placements.
During the same period, total nonagricultural openings certified for
the employment of foreign nationals increased by 5,267 which repre-
sents a rise of 652 percent from fiscal year 1961 to fiscal year 1963.
This may be interpreted as indicative that the drop in placements was
compensated by the increase in nonagricultural alien employment and
presumes an-apparent lack of qualified U.S. nationals available in the
area to meet the increased employment opportunities.


Counseling, Testing, and Related Services to Industry and
All segments of the labor force are entitled to the services rendered
by the Virgin Islands Employment Service. The services offered
include occupational testing and counseling.
The employment service placed 375 persons in the under-20 age
group, 128 in the 45-and-over group, 17 handicapped persons, and 48
veterans and ex-servicemen.

Federal Unemployment Insurance Activities
The Virgin Islands Employment Service administered Federal un-
employment insurance programs for Federal employees and ex-service-
men. Employees of the Virgin Islands Corporation in St. Croix
constitute the largest single group of workers covered under the pro-
gram. Payments of benefits to these workers were slightly lower
than during fiscal 1962, and continued to follow the seasonal pattern
which emerged in previous years.

Department of Public Works

Personnel: Operating appropriation: $2,724,990
Permanent, 327 Special projects appropriation: $32,799
Per diem, 622 Matching funds appropriation: $4,390,009

Population growth and commercial expansion created a record de-
mand for public facilities and services in fiscal 1963. This was re-
flected in increased workloads for every division of the department
of public works.
To meet the increasing needs, $2,617,862 was obligated for such func-
tions as street and road maintenance, garbage and trash disposal,
distribution of water, maintenance of sewer and water facilities, up-
keep and repair of public buildings and other structures.
In addition to these continuing services, 58 essential public projects
were undertaken, at a cost of $4,248,259 under the internal revenue
matching fund.

Street Cleaning and Garbage Removal Service
The amount of garbage and trash hauled to sea and island dumps
was nearly four times that for fiscal 1960. Greater efficiency in this
work was made possible by additional equipment on all three islands
and relocation of the trash dump to a more accessible location in St.
Thomas. The area coverage of garbage and trash removal services
also was increased.

Night-Soil Removal Service
In the fiscal year, 210 homes and other properties were connected
to the salt water and potable water systems. However, there was
a reduction of only 47 cans for collection. This was largely due to
increased occupancy of superficiary houses and substandard quarters
by transient workers employed on private construction projects in
St. Thomas. The night-soil system has been practically eliminated
in Frederiksted, and the reduction of 47 cans was recorded mainly
in Christiansted.


Water Supply
The amount of potable water supplied to Charlotte Amalie in fiscal
1963 was greatly increased. The sea water distillation plant and
barges from Puerto Rico supplied 189,599,400 gallons, an increase of
79,573,400 over fiscal 1962. The 6-inch water main from Bourne Field
has become inadequate and the water pressure in outer areas of the
system dropped to such a degree that large sections of Charlotte
Amalie are not served.
A project for installing a larger main and a new pumping and
treatment plant was set up under the accelerated public works pro-
gram. It is expected that work will begin on this project in November
1963, and will be completed during March of 1964. At the same time,
there must be an increase in the amount of water available for distribu-
tion. This will be effected by use of a barge capable of hauling 1
million gallons from Puerto Rico on each trip. Long-range plans also
have been made for enlargement of the sea water distillation facilities
in St. Thomas.
The water problem in Christiansted and Frederiksted is not critical.
However, plans have been made to add more wells in the La Grange
area serving Frederiksted and to pipe water from the Barren Spot
area to Christiansted.

Matching Fund Programs
Fifty-eight projects financed by internal revenue matching funds
were underway in fiscal 1963. For these, the department of public
works obligated a total of $4,248,259. Fifteen of the major projects
were for schools, 11 were for renovation of public buildings, and 10
were for road and street construction.
At year's end, the dredging phase of the St. Thomas harbor improve-
ment program was nearing completion. A huge hydraulic dredge
was brought in to remove some 1 million cubic yards of fill, thus re-
claiming about 50 acres of submerged land in the Crown Bay and Long
Bay harbor areas. These reclaimed areas will be bulkheaded to pro-
vide an additional 3,300 feet of waterfront suitable for use by smaller
commercial and pleasure craft. The harbor itself will benefit from the
addition of 119 acres of deepwater maneuvering space.
In Christiansted, the dredging of channel and harbor has been com-
pleted to a minimum depth of 16 feet and a new million-dollar dock
will soon be ready for service.

Public Buildings
A program of preventing maintenance was initiated for government
owned and controlled buildings, and general maintenance was greatly

The introduction of a modern dial telephone system to all three Virgin Islands was accom-
plished during fiscal 1963. Above, the huge antenna atop Crown Mountain in St.
Thomas is a vital link in the oversea operation of telephone service between the islands
and to the mainland.

improved during the fiscal year. New projects on St. Thomas in-
cluded completion- of the department of finance buildings, renovation
of the administration building, Fort Christian, and 12 schools. On
St. Croix, extensive renovations were made at Anna's Hope School
and the Herbert Grigg Home for the Aged.
The school construction projects are described in more detail in the
department of education section of this report.

Utilities and inspection

1959 1960 1961 1962 1963
Building permits Num- estimated Num- estimated Num- estimated Num- estimated Num- estimated
her construe- her construe- her construc- ber construe- her construc-
tioncosts tioncosts tioncosts tioncosts tioncosts

St. Croix...---- 124 $1,253, 214 210 $2, 288, 719 224 $3,019, 441 271 $4, 176,536 335 $4,795, 744
St. Thomas and
St. John....------ 340 3, 258,753 378 5,190,527 460 6,363,482 506 7,017,972 598 9,051,455



Utilities and inspection-Continued

1959 1960 1961 1962 1963

Sanitary installation permits-St. Thomas---- 182 135 187 324 698
Sewer connection permits-St. Thomas........ 84 68 72 132 100
Water connection permits-St. Thomas..--- 35 19 42 91 52
Electric installation permits--St. Croix.----- 263 299 343 470 563
Electric installation permits-St. Thomas and
St. John ------.--------------------------- 249 311 302 422 375


St. Croix ..---1---------- ---------- -- 16 16 16 16 16
St. Thomas .------------------ -- 326 326 382 430 482
St. Thomas-new connections .--- ---- -- ------- 19 91 52


St. Croix-new connections_. ---- ---- 46 70 79 78 133
St. Thomas-new connections -------------- 18 17 68 172 77
Total number of potable water connections--- 640 727 864 1,016 1,204


Potable water pumped from wells-St. Croix
gallons 30,110, 766 43,503,928 47,628,528 48,501,765 82,088,216
Potable water brought in by barges ..-- do-. 49, 665, 800 67, 740, 800 89,103,300 84,354,300 75,914,600
Potable water hauled by trucks to consumers
gallons.. 556, 250 25, 785 625, 500 1, 573, 000 2, 353,000
Potable water used by consumers by meters
gallons.. 64,204, 620 87, 400, 006 90, 475, 685 103,165,400 127, 328,160
Average daily consumption-St. Thomas
gallons__ 200,000 220,000 250,000 300,000 400,000
Average daily consumption-St. Croix -do .. 82, 495 120,000 130, 516 132,880 225, 176
Potable water received from distillation plant
gallons_ -. --------------- ----------- 25,671,700 113,684,800


St. Thomas -----..---------cubic yards- 34,884 43, 220 39, 990 97,008 104, 800
St. Croix..--------------------- do---. do -- 17, 562 22, 950 40,896 33,058 83,192


St. Thomas...----- ---- -----------gallons 469,260 479,520 458,336 378,950 383,320
St. Thomas ....---- .-------- cans in use-. 850 900 900 900 900
St. Croix ..................-- -- ---. .gallons- 312,400 254,280 242,986 231,000 164,000
St. Croix ..----------------- cans in use- 500 489 433 375 328


St. Croix ------------------ -- 170 170 170 170 170
St. Thomas.--....... -------------------- 9-0 90 90 90 90
St.John ----- -- 40 40 40 40 40


St. Croix ... --------- ------------ ------ 16.4 16.4 16.4 16.4 16.4
St. Thomas and St. John ........-- -- ---- 13 13 13 13 13


St. Thomas-----.----------------- ------- 25 25 2 5 25 25

Department of Finance

Personnel: 158 Operating appropriation: $865441

Department's .Operations, Programs, and Policies
During fiscal 1963, the division of accounting was reorganized and
expanded to accommodate the centralization of the accounting system.
In addition to general ledger accounting, this brought budgetary ac-
counting for all government departments and agencies within its
Weaknesses in certain activities have been identified and, nearing
the end of the fiscal year, positive action was taken to strengthen them
and to establish controls to improve the efficiency of the centralized
As a result of problems encountered with the implementation of the
new system, general ledger accounting and financial reporting which
for the past three years had shown steady and satisfactory improve-
ment were greatly hampered in fiscal 1963.
The audit division continued to be severely handicapped by the
difficulty in recruiting qualified personnel. The systems and review
section functioned during most of the year with only half of its
authorized staff. The revenue audit section was fully staffed for only
a few months of the fiscal year. Consequently, the audit program was
very restricted, with the audit of the Virgin Islands Lottery being the
only major audit completed outside of certain routine examinations.
Much of the work of the tax division cannot be reflected in immediate
revenue for the treasury. A substantial amount of revenue must come
from the investigation and audit of tax returns and other tax sources
but in all cases the taxpayer may appeal for redeterminations, on sev-
eral levels, up to the courts, and after each appeal there is a period
of at least 1 month before action may be taken. This has been the
case during the fiscal year, but certain activities and accomplishments
will in the near future reflect themselves in a more effective and
efficient enforcement of the tax laws, as follows:
1. The staff of the tax division has been doubled with emphasis
on the nonclerical employees for audit work (through the revenue
agents) and collection and enforcement activities (through the
revenue officers). Included among the new personnel are four


former employees of the U.S. Internal Revenue Service, two of
whom have had substantial training and experience as revenue
2. The total number of field examinations and audits of tax
returns and business records, and the amount of unreported tax
determined by such audits and examinations have increased sub-
stantially-although most of the revenue agents have been em-
ployed by the division for less than 6 months of the fiscal year,
and the fact that most of the agents have not received specialized
training in income tax law from the U.S. Internal Revenue
3. Three revenue officers and one office (revenue) agent received
specialized training from the U.S. Internal Revenue Service, and
one other employee was granted educational leave to complete a
college accounting course in the United States. Furthermore,
most of the employees are now receiving instructions in income
tax law through correspondence courses from the U.S. Internal
Revenue Service, and arrangements have been made with the
Service for other revenue agents to be sent from the tax division
to their training courses in the United States.
4. Regulations and procedures have been written and issued
to cover some of the more important activities and requirements
for administration of the division and enforcement of the tax laws.
Much of what has been accomplished during the year may be at-
tributed to the personal interest and cooperation received from the
Office of the Commissioner of Internal Revenue.
The collection and enforcement section which was activated during
the fiscal year progressed slowly during the year with only a skeleton
staff. This section is responsible for the maintenance of accounts
receivable records, for followup on outstanding accounts and for ini-
tiating enforcement actions. At the close of fiscal 1963, enforcement
action has been initiated on all delinquent outstanding accounts.
This enforcement action has resulted in the liquidation of a large
number of outstanding past due accounts, thereby bringing badly
needed revenues into the treasury.
The treasury division processed a total of 175,702 checks during the
fiscal year 1963, as compared with 110,030 checks processed during the
previous fiscal year.


Financial Information

General and Matching Funds
Following a trend established over recent years, the revenues col-
lected and expenditures made by the government of the Virgin Islands
during the fiscal year were the highest ever recorded.
Total revenues for the general and matching funds amounted to
$19,670,156.45 of which $11,987,627.86, or 60.94 percent were for the
account of the general fund, and $7,682,528.59, or 39.06 percent were
for the account of the matching fund. In the case of the general
fund, revenues collected in fiscal year 1963 represented an increase of
8 percent over those collected during the previous fiscal year. Match-
ing fund revenues collected represented an increase of 21.10 percent
over revenues collected in the previous fiscal year.
The comparative statement of revenues and receipts appended here-
to presents a picture, in considerable detail, of the revenues collected
into the general and matching funds over the 5-year period beginning
with fiscal 1959 and ending with fiscal 1963. The statement shows in
the top portion the amount of revenues derived each fiscal year by
source, and the percentage of each item in relation to the total reve-
nues collected. In the lower portion, the percentage of increase or de-
crease of each revenue item and the total are shown.
Total expenditures for the fiscal year amounted to $1,713,232,
1963 amounted to $17,867,582.94 of which $13,003,635.67 or 72.78 per-
cent were from the general fund and $4,863,947.27 or 27.22 percent
were from the matching fund. General fund expenditures repre-
sented an increase of 25.80 percent over the previous fiscal year.
Matching fund expenditures represented an increase of 6.8 percent
over the previous fiscal year, indicating accelerated activity in capital
improvements throughout the Virgin Islands.

Essential Projects Fund
Under the provisions of the Organic Act (subsection 28(b)), at
the beginning of each fiscal year, the excess of funds in the single "i"
matching fund not needed to liquidate obligations- incurred during the
fiscal year, or outstanding encumbrances of previous fiscal years, is
transferred to the essential projects fund. This year the receipts into
the fund from this source amounted to $2,012,433.82, compared with
$2,551,169.12 received during fiscal 1962, a decrease of $538,735.30, or
21.12 percent.


Total expenditures for the fiscal year amounted to $1,713,232.00,
compared with $2,425,709.29 for fiscal 1962, a decrease of $712,477.29,
or 29.37 percent.

Road Fund
This fund was established in 1957 by legislative enactment which
provided that all taxes upon the sale of gasoline and all fines imposed
by the courts for violation of traffic laws should be deposited therein.
During the fiscal year net revenues collected and deposited into the
road fund amounted to $311,686.74, an increase of $26,980.62, or 9.48
percent over those of fiscal 1962. Of this amount, $274,403.24 repre-
sented collections from taxes on the sale of gasoline, and $30,298.50
from the collection of fines imposed for violation of traffic laws, $6,975
represented refunds on prior year's expenditures, and there was an
overdeposit of $10.

Marine and Aviation Fund
The marine and aviation fund was established in October 1960
by legislative enactment which provided that all revenues and receipts
collected from activities applicable to the harbors and airports of the
Virgin Islands be deposited into this fund. During the fiscal year
revenues deposited into the marine and aviation fund amounted to
$426,451.97. Of this amount $134,866 were contributions from the
general fund, $154,398 represented harbor fees collected by U.S. Cus-
toms, $40,119.25 were for pilot fees; rents and concessions amounted
to $33,653,04; and other harbor, airport, and miscellaneous fees
amounted to $63,415.68.
Expenditures for the same period amounted to $266,319.47. The
fund is used for the operation of harbors and airports within the
Virgin Islands owned by the territorial government.

Federal Contributions
During the fiscal year the Federal Government's contribution to
grant-in-aid programs and other programs amounted to $1,607,268.61,
an increase of $255,542.85 or 18.90 percent over similar contributions
of the previous fiscal year.
The other funds not highlighted here represent funds which are
segregated for specific programs and functions not generally con-
nected with normal governmental operations.


Comparative statement of revenues and receipts, fiscal years 1959-63


Source of revenues and receipts 1959 Percent 1960 Percent 1961 Percent 1962 Percent 1963 Percent
of total of total of total of total of total

General fund:
Real property taxes..... .------------------- $276, 349. 18 5.29 $372, 724. 81 5.41 $348, 174. 57 3. 97 $499, 413. 87 4.50 $590, 274. 63 4. 92
Income taxes -...........----------- 3,054, 223. 06 58.46 4,329,017.86 59. 69 619, 721. 00 64.09 7,221,085. 92 65.05 7, 580,074.35 63. 23
Inheritance taxes. _---------------------- 37, 960. 44 .72 23. 011.19 .32 42, 541. 45 .49 37, 529. 94 .34 17,553.78 .15
Stamp taxes.---------- 97,151. 92 1.86 71,495. 93 .99 112,883. 01 1.29 135, 719. 28 1.22 134,859.00 1. 13
Trade, excise, and gross receipt taxes......... 886, 513.22 16.97 1,185, 743. 54 16.35 1,357,491.33 15.48 1,655,595.56 14.92 1,941,240.81 16.19
Custom dues --- 284, 000.00 5. 45 487, 000. 00 6. 72 431,780. 70 4.92 747, 085. 00 6. 73 648, 770.80 5. 41
Licenses, fees, and permits-.... --- 269,747.30 5. 16 331,377. 55 4. 57 372, 391.70 4.25 533, 987. 80 3.91 494, 596. 25 4. 13
Corporation franchise tax -------- 4, 518. 00 .08 16,702. 63 .23 16, 491.33 .19 20, 237. 56 .18 35,902.65 .30
Fines, forfeits, and penalties-------- 29, 155. 49 .56 39, 549. 05 .54 33, 709. 72 .38 39, 450. 43 .36 75,155.07 .63
Interest on government funds ..---------.. 548.44 .01 100. 68 0 26, 567. 07 .30 439. 14 0 14.94 0
Other income .- -------284, 410. 79 5. 44 395, 144. 70 5. 45 406, 411. 95 4.64 309, 389. 05 2.79 469,185. 58 3. 91
Total general fund-.....--- ------------- 5, 224, 577. 84 100 7,251,867. 94 100 8, 768, 163. 83 100 11, 099,933. 55 100 11, 987, 627. 86 100
Matching fund:
Internal revenue matching contributions-...- 3,872,865. 16 96.94 4,917,952. 15 97.79 6,494,445.33 96. 79 6,173, 477. 87 97. 32 7, 682, 528.59 96. 95
Contributions from other funds (reimburse-
ments).... -------- ----------------- 117,198.01 2.94 101,752.63 2.02 185,171.37 2.76 128,796.80 2.03 153,594.33 1.94
Interest on government funds...----------- 5, 070.71 .12 9,358.08 .19 30,454.49 .45 41,476.35 .65 88,101.12 1.11
Total matching fund....-----. 3, 995,133. 88 100 5,029,062.86 100 6,710,071.19 100 6,343,751.02 100 7, 924, 224. 04 100
Grand total... --------------- 9,219,711.72 -_.... 12,280,930.80 ........ 15,478,235.02 ..---.. 17,443,684.57 -...---- 19,911,851.90








Comparative statement of obligations, general and matching funds, fiscal
years 1959-63


Percent Percent Percent Percent Percent
Standard government expenditures 1959 of total 1960 of total 1961 of total 1962 of total 1963 of total
expend- expend- expend- expend- expend-
itures itures itures itures itures

Legislative ----------------------
Judiciary (courts) ....-- -----------------

Administrative departments and agencies--...
Service departments:
Public works department.....------......
Health department. ..-------------------
Education department ...... ----- ------
Social welfare department-------------
Public safety department ---------------
Commerce department. -
Agriculture and labor department.-------
Housing and urban renewal department..

Total executive expenditures..---------
Other governmental expenditures...--------

Total standard government expenditures.-.

Special or essential public projects expenditures:
Public works department ----------------
Health department
Education department ----------------------
Social welfare department ------ -----
Governor's consulting service---------------
Housing and urban renewal department -....
Agriculture and labor department.-----------

Total special or essential public project ex-
penditures ---------------------

Total expenditures-------------------------

$126, 168. 02
49, 589. 52

1. 58 $196,190. 66
.62 59,244.54

1.96 $194,103.66
.59 62,188.18

1. 48 $236,967. 44
.47 72,656.44

1.59 $237,499.01
.49 68.199.96

__________.4_ 68,19_9.__ 6

1,091,676. 71

1,555, 461.81
1,428, 629. 12
464, 232. 73
457, 920. 45
69, 564. 55

6,712, 625. 34
1,056, 790. 83

7, 945,173. 71


7,977, 213.91

13. 69

19. 50
2. 05

13. 25






2,155,141. 89
2,097,018. 42
1,859,452. 82
550,434. 99
554, 265. 32
227, 682. 37

9,031,000. 48
296, 110. 29

9, 582, 545. 97

47,396. 09

417, 562. 17


14. 44

21. 55
18. 60
1. 43






1, 503,788.37

1,854,961. 77
2, 533, 674. 72
2,107, 840. 76
601, 857. 55
698, 533. 79
340, 917. 48
167, 723. 53

9,809,297. 97
197,666. 79

10, 263, 256. 60

------ --------
35, 434. 45

2,891,739. 75



19. 26
16. 02

74. 57

78. 02





1,812, 480. 40

2,361,639. 59
2,634,032. 27
2,413, 884. 61
837,884. 45
788,665. 09
576, 265. 31

11,680,988. 13
548.852. 58

12, 539,464. 59

604. 63
20, 547. 13

2,351,618. 39



15. 86
17. 69
16. 21
1. 72




15. 79


2,352,495. 96

2,643, 277. 76
2,714, 225. 13
2,993,486. 25
986,816. 12
849, 915. 89
623,834. 08
321,335. 29

13, 566, 427.12
1,875, 235. 14

15, 747,361. 23


37, 553. 28
8, 756.86

546,198. 26
75, 091. 78

2, 706,200. 56

18,453, 561. 79



1.29 M
.37 Lm

12.75 0

5.35 0
1.74 O
.44 14

73. 52



2.96 (

14.66 W/




Comparative statement of revenues and receipts, fiscal years 1959-63

Percentage of annual increase (decrease) 1958-59 1959-60 1960-61 1961-62 1962-63

General fund: Percent Percent Percent Percent Percent
Real property taxes.-..--..--........-- ......----(0. 80) 34. 87 (6. 59) 43.44 18. 19
Income taxes --- ------------.-------------- 36.38 41.74 29.82 28.50 4.97
Inheritance taxes...---------------------------. 185. 31 (39. 38) 84.87 (11. 78) (53.23)
Stamp taxes..-- --------------- 92.39 (26. 41) 57.89 20.23 (.63)
Trade excise and gross receipts taxes. ....------. 23.13 33. 75 14.48 21.96 17.25
Custom duties------------------- (3. 48) 71.03 11.34 73. 02 (13. 16)
Licenses, fees and permits-...--- ----------- 3. 66 22.85 12. 38 16. 54 13. 97
Corporation franchise tax .--------- ---------- 269. 69 (1. 70) 23. 25 77. 41
Fines, forfeits, and penalties..--- ---- --------- 91. 01 35. 65 (14. 76) 17. 03 90. 50
Interest on government funds --..------------. 53. 65 (81.64) 263. 87 98. 35 96.60
Other income -------------------- (1. 51) 38. 94 28. 51 23. 87 51. 65
Total general fund.......------........- ....... 25.55 38.80 20.91 26.59 8
Matching fund:
Internal revenue matching contribution----..... 14.61 26.98 32.06 (4.94) 24.44
Interest on government funds ---.......-- ----- (54.41) 84.56 224.67 (30.44) 19.25
Contributions from other funds (reimburse-
ments) ----- ------------------- 52.00 (13.18) 81.98 36.19 112.41
Total matching funds --------------------. 15. 22 25. 88 33. 43 (5. 46) 24.91
Grand total -------- .........----------. 20.85 33.20 26. 03 12. 70 14. 15
1 1

721-848 0-64---6

Office of the Director of the Budget

Personnel: 5 Operating appropriation: $39,090
The Governor's budget document and budget message, comprising
two volumes of suggested departmental appropriations, justifications,
revenue sources, and personnel budget requests was submitted to the
legislature on January 14, 1963.
For operating appropriations, the Governor's budget document rec-
ommended a total of $16,954,232 (as compared with over $19 million
requested by the various departments and agencies). When passed
by the legislature in March 1963, the budget total was $16,513,396 from
which the Governor item vetoed $872,200, leaving a net budget of
$15,641,196 which was increased in a June special session by $1,943,-
320 to a revised total of $17,584,516.
The capital budget recommended by the Governor for matching
funds totaled $4,500,000. As passed by the legislature and approved
by the Governor, the capital budget was $4,491,500.
The office of the director of the budget controls the budget by issuing
quarterly allotments or apportionments to the various departments and
This office also watches the monthly reports of obligations submitted
by the department of finance in order to determine whether depart-
ments are keeping safely within their apportioned funds or whether
there are trends indicating possible deficiencies:
The director of the budget represents the Governor at all sessions
of the legislature, in order to present the Governor's views on legis-
lative proposals. This type of coordination between the executive and
the legislative branches of the government has been of considerable
assistance in furnishing the legislature with firsthand information on
executive policies and, at the same time, furnishing the Governor daily
with legislative trends as they may affect executive policy.
This office also .issues monthly revenue reports with percentage and
trends and monthly allotment reports for the information of the Gov-
ernor and the legislature. Total revenues for the fiscal year 1963 were
$12,099,978, an increase of 8.67 percent from the previous year. Total
appropriations were $17,215,206, an increase of 24.33 percent from
total appropriations of the preceding fiscal year.


Here are tables of major revenue increases between 1960 and 1962
and major operating appropriations for the same period (figures
rounded out to nearest thousand dollars) :

1960 1963 Increase

Total revenues ------------------------------------- $7,274,000 $12,000,000 64.97
Income taxes -----..-..- -- ------ ---------------- 4,332,000 7,582,000 75.02
Real property taxes--- ..-- ------------ ------------. --- 374,000 589,000 57.49
Trade and excise taxes.---. ----------- ------------------ 752,000 1,084,000 44.15
Gross receipts taxes.----- ----------.------------------ 434,000 832,000 91.70
Customs dues (gross)-.-------- ------------------- 457,000 1,220,000 166.96
Education ---- -------.------------. -------- --- 1,853,000 3,123,000 68.54
Public works..--- __---------------------------.------ 1,920,000 2,695,000 40.36
Health- --1----............-----------....._ -.. 1,967,000 2,991,000 52.06
Welfare ---.- -- -------------------- ---- 521,000 1,079,000 107.10
Safety--.--.. -------- ------------------------- 560,000 897,000 60.18
Commerce and Tourism.......--- ....... __---------------- 221,000 645,000 191.85
Total budgets --.- ------- --------------------- 9,112,580 17,215,206 88.92

Operating budget-flscal year 1963

[June 30, 1963]

Act No. Appropri- Allotted Unallot-
ated ted

835.-------- The legislature-- --.-- ---------- $200,000.00 $200,000.00
877/907/948 -----_ Office of the Governor-------- ------- 257,100.00 207,100.00 $50,000.00
877/948 ---.---- Governor's contingent fund.--------------- 54,550.00 51,550.00 3,000.00
877/948----- Office of the budget director ----..... .-- 39,090.00 38,371.00 719,00
877/907/948 --- Virgin Islands Planning Board------------ 59,090.00 57,790.00 1,300.00
877/1014/1015 ----- Division of personnel--.------------ 212,230. 00 211,380.00 850.00
877 --------- Probation and parole office .......--_- __. 31,100. 00 30,320.00 780,00
877/907/948---______ Administrative assistant, St. Croix..----.. 57,380.00 55,160.00 2,220.00
877/907/1034 -.._._ Administrative assistant, St. John -------- 35,500.00 35, 500. 00
907 ---...-------- Human relations office --- ------.----- 10, 000.00 9,450. 00 550. 00
877/907/920/1034 ---- Government secretary's office. -------- 297,894.00 296,722.00 1,172.00
877/907/917/948.----- Department of law..--------------- -------- 119,210.00 119,210.00
877/907/1034 .----_- Department of finance-- -------------- 865,441.00 865,441.00 -----
877/907/917/1000... Department of education ----- ------- 3,154,328.00 3,123,166.00 31,162.00
General fund: $1,635,273.
Matching fund: $1,487,893.
877/907/930/948----- Department of commerce--- --------- -- 663, 167.00 644,791.00 18,376.00
877/948 ..-------- Department of health-- -----.-----.- 2,991,843.97 2,991,843.97 ......
General fund: $1,491,843.97.
Matching fund: $1,500,000.00.
877/907/948/1034 --- Department of public safety ------ ----- 919,175.00 897,827.00 21,348.00
877/948/1003----__-_ Department of public works ------2, 724,990. 00 2,695,350. 00 29,640.00
877/948 ----------- Department of social welfare --- ---- 1,098,496.00 1,078,901.00 19,595.00
877/917/930/948/1000 Department of agriculture and labor --.... 334,700.00 327,961.00 6,739.00
877/948 -- .._- Department of property and procurement-- 282,902.00 272,652.30 10,249.70
877/907/917 ...----. Department of housing and community re- 105,970.00 103,865.00 2,105.00
877/1003 -----------Municipal court, St. Thomas, and St. John- 42,150.00 41,550.00 600.00
877/948 ------- Municipal court, St. Croix ..-------------- 39, 850. 00 39,850.00 ...---
877/1034 --_._--- Board of election, St. Thomas _---- _--- _- 16,000.00 15,000.00 1,000.00
877/1034 ----. Board of election, St. Croix...---------.--- 18,000.00 16,800.00 1,200.00
877/1034 ---------- Board of election, St. John 3,600.00 3,600.00 ..-...
1003 ------------ Office of the supervisor of elections ..---- 15, 000.00 15,000.00 -----..

Total..........---- ----------------4, 648,756.97 14,446,151.27 202,605.70


Operating budget-fiscal year 1963-Continued


Act No.

935-- ----------

842 ....--------
948 -- ---------

822 ..-----------

877_ --------- ---

877 -----
907-- ----------
948 ---------
877/930/980/998 ....--..

877----- -------

820 ..---..........----------
877/920 ----
877/917 -----------
877/1034 --.-------
967--- ------ -
912 --------
920--- -----------
933 -------------
1001-- ----
947 .... -------------
965----- ---------

917 ---------------........
917 --------
931 ---------------

948 --------------
955 ...-----------.....

917 ..-- ---------
948_ ----

1010 ------ -------

877/925 --------
877 --------
877 --------
917 -----------

The legislature:
Resettlement committee...-------------
Tax revision committee_ -------------
Government secretary's office: purchase and
reprint pamphlets.
Department of public works:
Improvements at Estate Dorothea------
Clinic at Carenage ------------------
Renovation of pump house for Boy
Claim-Radio station WSTA-------....
Department of social welfare: sewing project,
St. John.
Office of the Governor:
Contribution to homestead and home
loan fund.
Contribution to emergency housing fund-
Rum promotion-----------------------
Grant to college.-----.------------------
Department of commerce:
Contribution to marine and aviation
St. Thomas Golf Association........-----
Removal of range towers, installation of
beacon light, buoys, St. John.
Department of finance:
Special temporary sugar cane fund--.....
Tax refund -.......--.-------------------
Industrial incentive program ----.. ---
Unliquidated encumbrances -- ----------
Bonding government employees-..-.....-
Unemployment compensation -__------
Public works acceleration authority --...
Funds for.property acquisition ..........
Claim fund -------------------
Sunbilt tropical fruit products-......---..
Emergency molasses fund -------------
Reimbursement to James Ayer....------
Refund of cost of Internal Revenue
Department of property and procurement:
Compensation to Marcelo Maldonado ..-
Compensation to Regalado Benitez -..--
Temporary economic committee.....-----
Department of housing and community re-
Grant to-urban renewal board ...-----
Transfer of land at estate profit .......---
Department of health:
Grant to student nurses ------------
Grant for practical nurses_ _----
Repairs at Calabash Boom Clinic-----
Department of agriculture and labor:
Retraining Virgin Islands telephone employees.
Department of education, grants and
Boy Scouts ----------------------------
Girl Scouts -------.-------------
Sea Scouts .-----------------------------
Scholarship fund-----------------
St. John Scholarship Fund --------.
Wilmot Blyden Scholarship.---.. --
Virgin Islands Museum_ -------------
St. Croix Museum ----.. -------------
Higher educational program .--.--.-.---
Community bands -__.... ----------..
Raiders Athletic Club --- .... ------...









365,000 00
24,000. 00
2, 700.00

15,000. 00


7, 300. 00

10,000. 00

1,.000. 00
3, 000.00

Total-------------- 1 2,052,604.00








40,000. 00
25,000. 00

2, 700. 00
639. 00

15,000. 00

25, 000. 00
-- ------ -



25, 700.00





20, 000. 0


-- - -


2, 500. 00
- - -
-- - -

4, 00. 00 50. 0
4,500.00 500. 00
26, 500.00 3,500.00
9,000.00 1,000.00

1,621,004.00 431,600.00


Operating budget-fiscal year 1968-Continued


Act No. Appropri- Allotted Unallot-
ated ted

Department of public works:
895----------------- Quarantine pens, fencing of abattoir-.... 6,617.49 6,617.49
895----------------- Improvements of schools---------------- 1,377.48 1,377.48 -----.
858----------------- Acquisition of land--------------------- 100,000.00 ------------- 100,00000
895 --- -------- Department of health: Telephone installa- 38,350.00 38,350.00 --
Department of property and procurement:
895.--------------- Land for Virgin Islands Housing and 27,712.00 ------------- 27,712.00
Urban Renewal Board.
895 ---- ------- Milk fund ....------------------........ 13,000.00 13,000.00 -------.
Department of agriculture and labor:
827..---------- Soil conservation fund------------------- 30,000.00 30,000.00 -------
895 ---------------- Assembly shed-------------------------- 1,500.00 1,00.00 --
852 ---------- Office of the Governor: College of the Virgin 250,000.00 250,000.00 ----------
Total_-- -- -- 468,556.97 340,844.97 127,712.00
767------------- Department of finance: Wages to unemploy- 45,288.29 45,288.29 .---------
ment compensation.

Grand total. --- ----------------- 17,215,206. 23 16,453,288.53 761,917.70

Gross U.S. internal revenue taxes on Virgin Islands imports

Fiscal year-

1960 1961 1962 1963

July---------- ------------------ $564,731 $443,418 $544,642 $422,536.53
August ---------- ------------------- 414,047 615,263 677,316 641,487.05

978, 778 1,058,681 1, 221, 958 1,064,023. 58
September --- ----- --- 561,702 566,498 482, 947 818, 765.93
October...----------- ----- ----- -----434,896 736,858 709, 298 762,835.01

1,975,376 2,362,037 2,414,203 2,645,624. 52
November ---------------725,336 636,326 805,744 700,863.04
December -....--- ------ 694,588 701,372 951,442 585, 888. 70

3,395,300 3, 699, 735 4,171,389 3,932,376. 26
January --------- 627,223 525,558 736, 861 605, 587.01
February -------------------425,952 367,561 417,490 480,814.07

4,448,475 4, 592,854 5,325,740 5, 018,777.34
March --------------------------------- 491,942 544,443 465, 588 538, 443. 91

4,940,417 5,137,297 5,791,328 5,557,221.25
April....------- -- --------- ---- ---- -477,115 394,822 497,433 606,805.30

5.417,532 5, 532,119 6,288,761 6,164,026. 55
May ----------- -------------------- 496,622 590, 259 775,451 721,067.16

5, 914,154 6,122,378 7,064,212 6,885,093.71
June------------------------ ---- --- 656,254 798,064 697,723 716,191.10
Total __------------- 6, 570,408 6,920,442 7,761,935 7,601, 284.81


Summary of matching fund appropriations, fiscal year 1963


VI-2 ---.-


Appro- Released Allotted Unallot-
priated by interior ted


Contingencies to be used for various projects
in the discretion of the Governor.
For administration, inspection, and office
and field engineering on matching fund
projects including but not limited to the
positions of 1 architect at $7,500, 1 engineer
at $7,500, 1 civil engineer at $7,500, 1 drafts-
man at $4,400, 1 engineering aid at $4,400,
2 engineering aids at $4,800 each.
Contracted architect-engineer services for
designs of programed future matching
funds projects.
For construction of wells, dams, and general
engineering for soil conservation.
St. Thomas

For improvements at Magens Bay --. --..--
For redevelopment program at Altona ..---
For roads and streets islandwide as follows:
(a) Widening and paving of road con-
necting Catherineberg to Agnes
Fancy and Nordsidevej.
(b) For opening of new road through
homestead plots at Hospital
(c) Construction of Homestead Road at
Upper Estate Lindberg Bay to the
Estate Dorothea Highway.
(d) Road improvements at Domini and
Adel Gade, Contant (2 sections)
Agnes Fancy; concrete paving of
"Fireburn Hill"; improvements to
St. Peter Mountain Road and Har-
mony-Casi Hill Highway.
For increase in water storage facilities at
East End and South Side ($20,000); pot-
able water extensions to Contant, Mahog-
any Gardens, and other areas; and salt
water and sewer extensions including
pumping equipment.
Equipment for public works activities, in-
cluding road construction and mainte-
nance equipment and additional garbage
Addition (not less than 8 rooms) and repairs
to Queen Louise Home and repairs to
Corneiro Home.
Educational facilities:
(1) Repairs, renovations and improve-
ments to buildings.
(2) Addition of 3 shop buildings at
Charlotte Amalie High School.
(3) Addition to Charlotte Amalie High
School, including gymnasium.
Construction of second floor addition to
Knud Hansen Memorial Hospital and al-
teration to existing operating rooms.
Repairs, alterations, improvements to and
equipment of Knud Hansen Memorial
Hospital including provisions for isolation
unit and additional general medical bed
space and also including construction of
living quarters for resident staff.
For feasibility studies, engineering and ar-
chitectural design, and preliminary plans
and specifications for new hospital facili-
ties in the Virgin Islands.
Renovation and repair or construction of
building for the department of finance.
Repair of administration building --------
For acquisition and redevelopment at Hon-
duras, Demarara, and Ross Estate-
For renovation and extension of buildings at
Kronprindsens Gade for use by depart-
ment of social welfare and other govern-
ment agencies.
For construction of detention home for
For street lighting at Contant, Mahogany
Gardens, Anna's Fancy, Hospital
Grounds and other areas.


75, 000


100, 000

















$25,000. 00

75, 000. 00


100,000.00 ---


75, 000




287, 500









287,500.00 12,500.00

137,500.00 12,500.00



ST-112 ----


ST-116 -.


ST-118 .--

ST-119 --

ST-127 --



ST-120. --
ST-121 ---

ST-122- -.

ST-102 ...



450,000.00 --


100,000 100,000.00

50,000 50,000.00

10,000 10,000.00




15. 52

50,000.00 ------

20,000.00 -...



20,000. 00

40,000.00 .--


Summary of matching fund appropriations, fiscal year 1963-Continued

Project Project Appro- Released Allotted Unallot-
No. priated by interior ted

ST-124 ---.


SC-102 ---.




SC-106 ----

SC-107 ----


SC-110 ----

SC-112 ----
SC-113 --


ST-125 ----

ST-126 ----


For construction of drainage structures along
West Indian Company Road.

St. Oroiz
Construction, reconstruction and repair of
islandwide roads, including streets in
Christiansted and Frederiksted.
Potable water, salt water, and sewer repairs
and extensions.
Offsite facilities for Ralph de Chabert Hous-
ing Development.
Piping, pumps, and other installations nec-
essary for connection of the Barren Spot
Wells to the water system, including con-
nections to intervening communities.
Renovation of kitchen and dining room at
Insular Training School, Anna's Hope,
including tiling of floor and walls, and
purchase of equipment.
Acquisition of rights-of-way and construc-
tion of Christiansted Waterfront Highway,
including ship channel to Upper Bay.
Acquisition of land at Estate Herman Hill
for housing development.
Improvement of Frederiksted beaches -...
Roofs over bleachers at Grove Place and
racetrack to include sanitary facilities at
Equipment for Public Works activities in-
cluding road construction and mainte-
nance equipment and additional garbage
Construction of emergency housing ...-----
Aided self-help housing ----.----__------
Improvements and addition to Herbert
Grigg Home for the Aged.
Educational facilities:
(1) Repairs and improvements to exist-
ing schools and school lunch ware-
(2) Addition of shop building and gym-
nasium, Claude O. Markoe School.
(3) Acquisition of land and construction
of elementary school, Grove Place
(4) Addition to Claude O. Markoe
(5) Addition to Christiansted Elemen-
tary School and High School, in-
cluding gymnasium.
St. John
Construction, reconstruction and repair of
islandwide roads.
Equipment for public works activities.. -.--

St. Thomas

For public improvements to Carenage area,
including construction of steps, roads,
drainage, retaining walls, fire hydrants
culverts, sewer and water lines.
For improvements of recreational facilities,
including installation of lights for night

St. Croir
For extension to and improvements of Alex-
ander Hamilton Airport, including neces-
sary work to comply with Act No. 868
(Bill No. 1661) for relocating, reconstruct-
ing, or replacing private properties re-
quired to be removed due to airport
expansion and improvements.


250, 000


140, 000

124, 000
















25, 000. 00 ..........

250,000.00 .......


140,000.00 ......----

124,000.00 ..........

18,000.00 ..--


250, 000



















----------- 50,000.00
50,000.0 50,000.0
50,00.00 -------



100,000 -------

60,000 ...-------
274,000 ..----

140,000 ...----------

168,000 ----------

185,000 .----.

50,000 ..----

32,000 -------

50,000 ..----------


Totals-....-...-.--...--...-.......... 4,915,000 4,665,000 4,390,009.05


524, 990.95

Department of Housing and Community

Personnel: 21 Operating appropriation: $105,970
The department of housing and community renewal, created by
Act No. 903, approved June 18, 1962,,was established on July 26,
1962, when the first commissioner of housing and community renewal
was appointed. On September 1, 1963, activities of the homestead
and home loan programs were officially transferred to the department
of housing and community renewal from the department of property
and procurement. The emergency housing program was transferred
from the social welfare department. Several housing and community
development activities have been initiated, including the Altona Com-
munity Development, the Demarara Community Development, and
the Hospital Ground Emergency Housing Apartments in St. Thomas;
the Estate Profit Community Development, Richmond Gardens Emer-
gency Housing Apartments, and Camporico Emergency Housing
Apartments in St. Croix. Legislation was enacted also to provide for
the acquisition of approximately 80 acres of vacant land at Estate
Contant, St. Thomas, for a middle-income housing development.
Considerable progress has been made during the first year of
existence of the department in the actual construction of houses and
also in preparation of plans for an accelerated program of com-
munity development in the ensuing fiscal year.
Possibly the most important piece of legislation dealing with
housing and land distribution enacted by the Legislature of the Virgin
Islands during the 1963 regular session was Act No. 991 (Bill No.
1799) to amend Title 29, Virgin Islands Code, by adding thereto a
new chapter IX, entitled "Home Ownership and Development."
This measure was approved by the Governor on March 27, 1963.
Act No. 991 provides for a long-range program of land acquisition and
home construction throughout the Virgin Islands. While the law
will be administered by the department of housing and community
renewal, it provides for an advisory committee to assist in its imple-
mentation. The Governor is authorized to issue bonds, borrow from
public or private trust funds, or from government insurance funds
for the purposes of procuring moneys to be loaned, appropriated,
contributed, or granted to the department for use in connection with


any moderate income housing project recommended by the committee,
provided that the total amount of funds provided shall not at any one
time exceed $5 million. Under this act land will be acquired and
subdivided into plots of not more than one-half an acre. A moderate-
income house will be constructed on each plot to be sold to eligible
families to be paid for in full over a period not to exceed 30 years,
at 5 percent interest.

The Altona Community Development
The Altona Community Development was authorized by Act No.
673, approved May 16, 1961, for the purpose of resettling occupants
of superficiary houses in the Altona area in safe, sanitary, and decent
owner-occupied houses. These families were threatened with eviction
by the landowners and they had no place to relocate their shacks.
Eight middle-income homes were constructed in the Altona Com-
munity Development ranging in cost of construction from $8,000 to
$10,000. These three-bedroom units have been assigned to eight
families who were previously residing in dilapidated superficiary
houses in the area. They will have a period of 20 years for full
payment of the purchase price at 5 percent interest.
A contract for 50 additional houses has been awarded to a private
firm, and construction will begin early in the next fiscal year. An
engineering layout of the entire 15 acres has been made, and it is
expected that a total of 110 lots will be made available for construction
of middle-income homes. Four of the existing buildings are of sound
construction and will be allowed to remain. The owners of these
buildings will be allowed to purchase the lots on which the buildings
are located. A census of the families residing in this area has indi-
cated that there are 175 who are eligible to purchase these middle-in-
come homes. However, only 110 families can be relocated on the land
acquired by the government, and additional land will have to be
made available in the future.

The Demarara Community Development
The Demarara Community Development is similar in scope to the
Altona Community Development, and it was established by Act No.
1006, approved April 2, 1963, for the purpose of relocating occupants
of superficiary houses in the area. This development is designed to
eliminate a slum and blighted area on the Veterans Drive at the
entrance to the French Village in Charlotte Amalie, St. Thomas.
This area, comprising approximately 3 acres, is now an eyesore and
badly in need of redevelopment. At the close of the fiscal year efforts
were underway to acquire the area.



The panorama of progress in St. Thomas is seen in the above view of new public housing
and school expansion. Dedication of the Oswald E. Harris Court, left, added 300 new
units for low-income families. In the harbor is a huge dredge at work widening and
deepening the turning basin of Charlotte Amalie harbor.

Estate Profit Community Development
The Estate Profit Community Development, St. Croix, was author-
ized by Act No. 955, approved March 4, 1963, as amended. Under
this law the commissioner of housing and community renewal is au-
thorized to undertake a program of community development including
buildings for public health clinics, nursery and kindergarten schools,
recreation centers, etc. The government-owned land at Estate Profit
has been subdivided into 132 lots to provide for the relocation of
families evicted from private estate lands. To date, 132 families have
entered into leases with the government for lots, 47 have completed d
construction of their homes, 70 homes are under construction, and 15
lots are vacant. The Estate Profit Community Development Act also
provides for the commissioner of housing and community renewal to
establish and encourage a self-help program of community housing
and community betterment. At the close of the fiscal year, construc-
tion had begun on the first of three low-cost houses to be used for the


purpose of demonstrating to the lessees how a safe, sanitary, and decent
house could be constructed at low cost.

Middle-Income Housing
The major housing problem in the Virgin Islands is in the middle-
income housing field. Negotiations have been entered into for the
acquisition of approximately 80 acres of land at Estate Contant, St.
Thomas, for the development of a middle-income housing program by
the department of housing and community renewal. An effort is also
being made to acquire about 200 acres of land in St. Croix for the same
purpose. These areas will be developed under the provisions of Act
No. 991, approved March 27, 1963, entitled "Home Ownership and
Development." Under this act the government of the Virgin Islands
is authorized to issue bonds not exceeding $5 million for moderate
income housing projects.
A rental apartments project is also in the planning stage to be con-
structed on government-owned land at Bluebeard's Castle Estate, St.
Thomas. This project which will be comprised of 129 apartment
units will be financed by a direct mortgage loan of $3 million from
the Housing and Home Finance Agency.

The Emergency Housing Program
An important function of the new department of housing and com-
munity renewal is the construction and administration of low-rent
housing projects, financed completely by the local government for the
relocation of families who have been legally evicted by the courts or
who are residing in dilapidated slum buildings. With an upsurge in
the general improvement of the local communities, owners of private
properties are desirous of renovating their properties. The enforce-
ment of the Sanitary Code requiring the installation of modern sani-
tary facilities in all buildings has also accelerated the demand for
housing relocation. At the close of the fiscal year, there were on file
in the department of housing and community renewal, 512 applica-
tions (2,301 persons) in St. Thomas for emergency housing; 119 (493
persons) in Christiansted; and 36 (174 persons) in Frederiksted, St.
Croix. At the close of the fiscal year only 65 families (392 persons)
had been housed in St. Thomas, and 78 families (284 persons) in St.
The department also is required to provide housing for the reloca-
tion of families from the urban renewal project areas.
During the fiscal year, 16 units of emergency housing were com-
pleted at Richmond Gardens, Christiansted, St. Croix. Work on 32
additional units in the same area was begun under private contract.


Sixteen units of emergency housing at Camporico Village, Frederik-
sted, St. Croix, were nearly completed and should be ready for occu-
pancy early in the next fiscal year.
In St. Thomas, 40 units of emergency housing at the Hospital
Ground Apartments were nearing completion at the close of the fiscal
year, 8 additional units were completed at Estate Nadir and will soon
be occupied. A three-bedroom emergency house was constructed on
private land at Anna's Fancy, St. Thomas, under Section 203 (b), Title
29 of the Virgin Islands Code, as amended, which requires repayment
over a period of 20 years. It has been occupied.
Plans are now underway for a crash program of emergency houses to
be constructed on lots leased from the Virgin Islands Corporation in
St. Thomas. These houses will be built of wood in order to expedite
the construction. In St. Croix additional houses will be constructed
at Richmond Gardens and at Camporico Village for relocation of dis-
placees from the urban renewal project areas, and for other families
displaced by private action.
Emergency housing units on St. Thomas and St. Croix, June 30, 1963
St. Thomas St. Croix Total

Number of buildings --------------------------- 24 65 89
Number of units ._--------------------------- 64 75 139
Number of units occupied..-----------------------------------64 75 139

Homestead and Home Loan Program
Eleven contracts were executed for homestead land in the Virgin
Islands with a total sales value of $6,729.05. Thirty-seven deeds for
homestead plots with a total selling price of $17,042.98 were issued.
A total of 20 waivers were executed in favor of lending institutions
in order to permit homesteaders to obtain home construction loans.
In addition, a general waiver and release was executed in favor of the
Farmers Home Administration covering 107 plots at the Anna's Hope
Development. At the close of the fiscal year there were 684 applica-
tions for homestead land on file.
Installments on home loans in the amount of $23,737.50 were
granted. Three loans were canceled during the year from which
$16,600.88 were recovered. At the close of the fiscal year there were
19 applications for home loans on file totaling $148,200.
The sum of $35,632.41 was collected from the sale of homestead
land, repayments on loans, and interest and installments on land and
dwellings at the Altona Community Development.
Accounts receivable as of June 30, 1963, amounted to $297,853.18.
The balance in homestead and home loan fund as of June 27, 1963,
was $51,421.32.


Work was started on the subdivision- of the remaining 35 acres of
land at Anna's Hope Development in St. Croix. It is anticipated
that this work will be completed and allocations made during the
first quarter of fiscal 1964. Approximately 65 quarter-acre plots are
expected from this area.

Workable Program for Community Development
The workable program for community development for the Virgin
Islands was certified by the Housing and Home Finance Agency to
expire on September 1, 1963, at which time recertification is required.
This program is necessary in order that the Virgin Islands may
qualify for Federal funds for public housing, urban renewal, and
other community development activities.
During the year progress was made in drafting a new building
code and a housing code. These important measures will be sub-
mitted to the legislature during the next fiscal year.

Community Renewal Program
A grant of $72,800 was made by the Housing and Home Finance
Agency for a community renewal program study for the Virgin
Islands. This will be matched by services from the local government
valued at $44,522. To date a work program has been approved, which
includes (1) a general survey of the renewal needs in the urban areas
of St. Thomas, St. Croix, and St. John; (2) evaluation of the com-
munity's requirements and resources for urban renewal action; and
(3) development of a long-range program for renewal action. It is
expected that the study will be completed by May 1964. It will be
used as the basis for determining the type of treatment needed in
neighborhoods for redevelopment and an all-out attack on existing
blight and preventing its spread.

Virgin Islands Housing Authority
The Virgin Islands Housing Authority, successor to the Virgin
Islands Housing and Urban Renewal Authority, is engaged in the
management and development of public housing projects operated
with Federal financial and technical assistance. The Oswald E. Harris
Court, a 300-unit development, was completed and occupancy initiated
on June 1, 1963. The 264-unit Ralph de Chabert Place, which has been
close to completion since October 1962, has not yet been accepted for
occupancy due to certain major deficiencies which must be corrected
in order to insure the safety and convenience of the prospective resi-
dents. Required corrective work is now in progress.


Of four projects totaling 480 units in the planning stage, one of
200 units in Christiansted, St. Croix, will be advertised for bids in
July 1963-preliminary, drawings for another, of 32 units, to be built
in St. Thomas have been approved.
With the creation of the Virgin Islands Urban Renewal Board,
the responsibility for the administration of the federally aided urban
renewal program was delegated to that agency. Prior to the transfer
of that function, survey and planning applications for the Water
Gut, Barracks Yard, and Lagoon Street urban renewal areas were
completed by the housing authority.

Virgin Islands Urban Renewal Board
On October 11, 1962, the Virgin Islands Urban Renewal Board
was officially designated a local public agency by the Government of
the United States to administer the urban renewal program in the
Virgin Islands.
On January 18, 1963, the Legislature of the Virgin Islands adopted
resolutions approving three urban renewal plans for the Virgin
Barracks Yard, St. Thomas.-7.69 acres with 108 families involving
475 persons. Work to be done: Clearance of blighted area; develop-
ment of a government center and residential housing, with conserva-
tion and rehabilitation of structures having historical and architec-
tural value.
Water Gut, Christiansted, St. Croix.-26.43 acres with 210 families,
involving 593 persons. Work to be done: Clearance of blighted area;
development of a waterfront highway, commercial and residential
resorts; conservation and rehabilitation of structures with historical
and architectural value.
Lagoon Street, Frederiksted, St. Croix.-3.30 acres with 54 families,
involving 265 persons. Work to be done: Clearance of blighted area;
redevelopment of safe, decent, and sanitary housing with some con-
sideration as to warehousing possibilities.
One of the major activities initiated during the year was the reloca-
tion of 43 families and 8 elderly individuals (241 persons) displaced
from the Barracks Yard project area, approximately 50 percent of
the workload.
On February 21, 1963, the loan and grant contract between the
Government of the United States and the government of the Virgin
Islands made available the following funds for development of these


Area Loan Grant Total

Barracks Yard .---.. ----------------..-- $1,196,038 $486,038 $1,682,076
Water Gut - --------- ---........ ..... 2,183,800 385,800 2,569,600
Lagoon Street- --...---------------------_ --... 244,150 147,150 391,300
Total ---. ..._ ..___.... ..__...._____ __________ 3,623,988 1,018,988 4,642,976

On June 14, 1963, the acquisition program at Water Gut, St. Croix,
began with the purchase of property No. 5 BA Market Street at the
appraised price of $25,237.90 and on June 17, 1963, in Barracks Yard,
St. Thomas, with the purchase of property No. 24 Aaa Norre Gade at
$8,600. The majority of the remaining structures will be acquired
through condemnation proceedings filed in the district court through
the department of law.

Department of Property and

Personnel: 44 Operating appropriation: $282,902
Division of Procurement and Supply
Purchase orders issued by the division amounted to 10,336 with a
value of $8,732,351.18.
5-year comparison
1959_ ------------------------------------- $3,314,952
1960--------------------------------------------- ---- 3, 051,502
1961__----- ___- ______--_ 6---, 098, 554
1962 --- ----------------------------------------_ 6,582,993
1963 _---------------------_- -- --------___ 8, 732,351
These totals included 343 supply contracts valued at $829,106.12; 34
construction contracts amounting to $3,985,358.85; 25 professional
contracts in the amount of $615,786.80; 115 purchases made under con-
tracts of the General Services Administration, Federal Supply Serv-
ice, in the amount of $103,439.66; 9,684 open market purchases
amounting to $2,855,946.50. Excluded from the above totals are
"over-the-counter" transactions of less than $50 and "more or less"
The largest and most significant transaction was the awarding of a
contract for $1,667,440 for construction of the Crown Bay Bulkhead.
The limitation for direct "over-the-counter" purchases was increased
from $10 to $50, and new rules and regulations were adopted for this
type of purchase. The net result was that the departments were given
greater latitude in obtaining small quantities of supplies.
The central warehouse, although handicapped by lack of sufficient
capital, showed a small increase in total sales.

Property Division
Since the completion of the physical inventory of all accountable
government -property, the division has been maintaining current
records of acquisitions and disposals. Complete listings of govern-
ment-owned property as of June 30, 1963, are being prepared and will
be distributed to all departments.


Federal surplus property allocated to the Virgin Islands in fiscal
1963 amounted to $15,342.11 compared to $4,561 in fiscal 1962. The
Virgin Islands are considered an "under region" and received No. 1
priority in the allocation of surplus property.

Land Division
The termination of the home loan and homestead functions of this
division was accomplished when the employees of the program were
transferred to the department of housing and community renewal dur-
ing the early part of the fiscal year. There was very little accom-
plished in the field of price and rent control due primarily to the lack
of effective legislation. A new weights and measures law has been
enacted and personnel for administering it will be trained.

721-848 O 64 7

Department of Law

Personnel: 16 Operating appropriation: $119,210
The legislature authorized appointment of an additional assistant
attorney general, thus increasing the legal staff of the department of
law to include the.attorney general and four assistants.
Increased demand for legal services during the fiscal year was
directly attributable to expanded activities of the other departments
and agencies.
Establishment of the new department of housing and community
renewal created the need for the department of law to assist in the
work of property acquisition, housing regulations, and the drafting of
legislation to implement the stepped-up housing programs. The
department also undertook the legal work for the College of the
Virgin Islands.
Forty-nine formal legal opinions were written in response to re-
quests for legal advice from the Governor, executive departments,
boards, commissions, and other agencies of the government.
During the year, the legal staff prosecuted more than 5,000 criminal
matters in the municipal courts in Charlotte Amalie, Christiansted,
Frederiksted, and Cruz Bay. A special assistant was added to the
staff to make possible fuller investigation and action on complaints
referred by the department of public safety or brought directly by
private citizens.
The department of law investigated and settled, with approval of
the Governor, claims up to $1,000 against the government involving
personal or property damage.
The program for collection of delinquent accounts owed to the
department of finance, health, and public works was handled on an
intensified basis.
In the district court, the department of law represented the govern-
ment in 21 cases and argued 2 before the U.S. Court of Appeals for the
Third Circuit.
More than 150 separate items of local legislation were drafted or
reviewed by the attorney general's office, and the legal staff appeared
before the legislature with the director of the budget, who also serves
as the Governor's liaison officer with the senators, on an increased
number of occasions during fiscal 1963.

Department of Public Safety

Personnel: 168 Operating appropriation: $919,175

The increase in population and growth of industry and tourism con-
tinue to intensify the already critical demand for police services.
This task is further complicated by a decentralized.pattern of living
which prevails throughout the 132 square miles of the territory. To
cope with the situation and the changing needs of the growing insular
community, the department undertook the accomplishment of the first
phase of an action program designed for more effective utilization of
its manpower within the police division.
A territorywide training program in modern law enforcement tech-
niques was conducted. A study of the photographic laboratories in
both St. Thomas and St. Croix was undertaken in collaboration with
the Federal Bureau of Investigation, resulting in improvement of
their operation. A troubleshooting squad was organized to cope with
the growing number of teenage gangs springing up throughout the
St. Thomas community, and the attorney general's committee on
juvenile delinquency was created.
Steps were initiated leading to the establishment of a police library
by the acquisition of books and treatises on police administration and
law enforcement. The license bureau, as a result of an organization
and method study, standardized its records management and its sta-
tistical procedures and, in collaboration with the department of fi-
nance, established simplified accounting and auditing procedures. A
request for the services of two qualified investigators was approved to
combat more effectively, the rising crime rate. A new deputy commis-
sionership was created in St. Thomas charged with full.responsibility
for the administration and coordination of the activities within the
district. Vacated by resignation was the position of deputy commis-
sioner for the St. Croix District. New positions also were filled within
the ranks by promotion and reorganization which resulted in a gen-
eral bolstering of morale.


Bureau of Criminal Investigation

Two investigator positions were approved to increase the effective-
ness of both the bureau in St. Thomas and that in St. Croix. During
the year 1,427 criminal cases were investigated as compared with
1,242 for the previous year. The increase in the number of criminal
cases, when taken in proportion to the total population, continues to
be minute. However, the department is concerned with the reflection
within this group of the number of cases attributed to minor offenders.
The following chart gives a summary of the types of cases handled
during the fiscal year 1963:
Number of criminal cases handled

Type St. Thomas- St. Croix Total
St. John

Criminal homicide:
Manslaughter --------------------------------- 1 7 8
Manslaughter by negligence----------- ------- 1 2 3
Rape--------------------------------------------------- 15 15 30
Robbery--------- -------------------- 5 3 8
Aggravated assault---------------------------------------- 23 28 51
Burglary ----------------.-------------------------------- 120 170 290
Petit larcency _--------------------_--------------------- 90 197 287
Grand larceny ._------------------------------ 289 103 392
Auto thefts --------------------------------------- 4 10 14
Other assaults.------------------------------ -- 19 7 26
Forgery----------------------------------------------------- 39 13 52
Embezzlement and fraud ----------------------------------- 1 1 2
Stolen property ----------------------------- -------8 16 24
Weapon-possession ------------------- 7 14 21
Sex offenses -.------------- 0 1 1
Offenses against family ------------------------------------0 0 0
Drunkenness.... .-----.- ------------------------- 0 0 0
Narcotic drug laws-------- --------------- 1 0 1
Disorderly conduct -- ------- 10 23 33
Gambling and vagrancy ._--------------------- 1 2 3
All other offenses ----------------- 65 116 181
Total ......------- ---------------- -- -------- 699 728 1,427

5-year comparison-Total number of criminal cases handled
1959--------------------------------------------------------- 338
1960-------------------------------------------------------------- 406
1961------------------------------------------------------------- 669
1962 __---------------------------------------------- 1,242
1963 ------------------------------------------------- 1 -427

Patrol Bureau

Despite increased productivity, demands for police service continued
to exceed the patrol forces' best efforts. Manpower was spread dan-
gerously thin throughout the main cities in the islands of St. Thomas
and St. Croix. Even though efforts were made to overcome this
situation through recruitment, the rate of attrition in the loss of per-
sonnel through resignations and other factors severely reduced the
number of patrolmen available and adversely influenced the level of
service. Despite this condition, inservice training brought encourag-


ing results in efficient "frontline" police performance. It further
resulted in the establishment of better police-community relations.

Highway Patrol

The intensified campaign to provide more safety on the public high-
way was continued with particular attention being given to the island
of St. Croix. Despite increased surveillance of the roads in both
districts, the number of deaths from accidents increased from 4 in the
previous year to 13 for this year. The number of traffic accidents
increased to 1,416 as compared to 924 for the previous year. A total
of 238 driving licenses were suspended. The situation will continue to
grow more serious with the ever-increasing number of registered
vehicles moving over the public roads and highways. To meet this
problem, it will be necessary to increase the flexibility of the patrol
through replacement of mobile equipment and the acquisition of
additional new units within both districts.

Vehicular registration and licensing-Virgin Islands

1962 1963
1959 1960 1961 1962 1963
St. St. St. St.
Thom- Croix Thorn- Croix
as as

Motor vehicles-private...... 3,414 3,027 3, 610 4,185 4,736 2,251 1,934 2,854 1,882
Taxicabs and rented cars --..- 1,009 1,237 1,339 1,371 1,712 951 420 1,183 529
Trucks-pickups --...-- ----- 479 1,206 1,537 1,782 1,802 803 979 883 919
Buses----------------------- 32 30 35 31 66 10 21 50 16
Trailers------------- -- ...-------- 28 28 27 11 17 5 22
Motorcycles ---..-----------. 24 47 91 72 63 29 43 22 31
Motorbicycles---.---...- _----------------- 16 24 19 ---- 24 19
Motorscooters -... --__.-_. 51 136 82 96 161 46 50 96 65
Tractors------------- 11 5 12 5 11 1
Bicycles ----------------- 665 713 385 850 644 410 440 272 372
Drivers' licenses:
Private----------- --- 3,578 6,064 6,772 7,848 8,719 3,780 4,068 4,356 4,363
Taxi.------------------ 859 600 1,063 1,419 988 850 569 685 303
Learners' permits -..----. 769 1,026 1,131 1,561 2,018 1,021 540 1,383 635
Motor vehicle transfers--...-- 825 1,005 1,061 1,640 2,060 997 643 1,165 895
Traffic tickets issued.----....-..-.---. 1,877 2,888 2,682 3,189 1,784 898 1,915 1,274
Fees from registration --... $95, 674 $117,078 $136,275 $163,736 $168,061
Fines for traffic violations ...- 10,005 15,429 21,785 25,215 29,266.... --- --- ---
Visitors' permits ---....----- 9,719 14,846 15,194 21,907 22,491 --- -

Law Enforcement

The following figures show the activities of the police division as
compared with the previous 4 fiscal years:

1959 1960 1961 1962 1963

Criminal cases reported-all Virgin Islands..-.......-- ...... 1, 271 2, 674 4, 069 4, 832 5, 391
(a) Handled by foot patrol bureau:
St. Thomas and St. John---..--- .........------------- 349 321 270 211 306
St. Croix .------------------------------------- 534 177 454 527 432
(b) Handled by bureau of criminal investigation---......---- 388 406 669 1, 242 1, 427
(c) Traffic violations brought to court:
St. Johns-------------------------- --- -------- 15 26 21 -
St. Cro---s----.. ------.--------------- --------- 461 776 1,78051 1,952
St. Croix.................................... .................................. 461 776 1, 051 1 274


Money Money Money
reported recovered not
stolen recovered

St. Thomas ----------------------------------- $47, 687. 18 $23,221.31 $24,465. 87
St. Croix ---..... ---------- -- 40,139.76 8,864.64 31,275. 12
Christiansted ....................... -.--- . 32, 346. 26 6, 586. 14 25, 760. 12
Frederiksted ..-. ----________...- ------- --- 7,793.50 2,278.50 5,515.00

Marshal service to the municipal courts was provided on an average
of 5.5 days a week as follows:

St. Croix

St. Thomas

Criminal summons ------------------------------------------------------ 2, 919 8.991
Civil summons -- -- -------------------- 958 2,183
Writs of execution and/or attachment ------------------------------- 313 454
Conciliations ----- ------------------------------ 697 690
Automobile liens -----.. --------------------------------------- -- ------------ 51
Traffic summons ---------------------- 1,351 1.915
Warrant of arrest .. ... ..----------------------- 26 70
Total-------------------------------- 6,264 14,354
Business inspection prior to issuing licenses ..----------------------- -------- ---------- 190
Real property attached for nonpayment of taxes-------------------- 987

Number of Persons Deaths
traffic accidents injured

1961-62 1962-63 1961-62 1962-63 1961-62 1962-63

St. Thomas .....------- -- 646 1,187 151 190 2 5
St. Croix ------. --- 278 229 129 161 2 8
Total .. ----- 924 1,416 280 351 4 13

1958-59-...--. ------ ------ 838 278 11
1959-60 -- ----.--- ------------------- 910 238 5
1960-61 -- ---......... -------------- 600 229 8

Richmond Penitentiary

During the year there were 144 admissions and at the end of the
year there were 44 inmates.
The Richmond Prison industries program continues to provide
inmates with training in new skills and trades, and provides a means
whereby they earn a small income. As of the close of the year
25 inmates had established bank accounts. The main source of in-
come is provided through the cement-block-making program. The
prison farm project produced an estimated 12,000 pounds of yams,
the major portion of which was made available to government insti-
tutions. The remainder was sold and the moneys derived therefrom
deposited in the prison industries fund.
The rehabilitation program which encourages inmates to apply their
time and skills in gainful pursuits has been most successful. About


30 percent of the inmates are engaged in the making of belts, furniture,
fish nets, and ornaments. Others are engaged in such skilled tasks
as upholstering and radio repairs. Money received from these spare-
time occupations is used in part by the inmates to assist in the support
of their families.

Fire Division
The fire division responded to 243 fire calls as against 178 for the
previous year. The fire losses in St. Thomas and St. Croix amounted
to $69,199 as against last year's losses of $34,378. Standing out
most prominently are the large losses which were suffered in St.
Croix during the fiscal year due to sugarcane fires-some 248 acres
were damaged or destroyed with a value of $52,185.
The fire division acquired two trailer-mounted pumps capable of
delivering 1,000 gallons of water per minute one-half mile away
from the point of suction lift. The legislature appropriated the sum
of $20,000 for the purchase of two water tank trucks for the island of
St. Croix.
The need for additional firefighting equipment to protect life and
property is very critical. There is also an immediate need for an
effective system of radio communications inter- and intra-island.

Civil Defense
During the year, the civil defense organization initiated its disaster
plans and developed an operational survival plan for the territory.
Steps were taken to improve the warning capability of the St. Croix
organization by the installation of additional outdoor warning de-
vices at strategic points in the central and western sectors of the
Action was taken to stock designated fallout shelter spaces in the
island of St. Thomas with food, water, medicines, and radiological
detection kits. A territorywide exercise, "Operation Top Hat," was
conducted during June 1963. Reports from all sources declared the
exercises highly successful.
The emergency resources planning committee for the Virgin Islands
was created in December 1962. Some 14 different task groups are
presently engaged in the preparation of postdisaster plans which will
affect all segments of insular economic activity.

Home Guard
The St. Thomas Home Guard unit rendered notable assistance to
the police division and civil defense. Special duty units were made


available to the Virgin Islands Corporation at the Harry S Truman
Airport, and to the St. Thomas Park Authority at Magens Bay for
auxiliary police duty. Commendations were received by the St.
Thomas unit for the conduct of its operations in these specific areas
and throughout the community. The St. Croix unit, activated dur-
ing the previous fiscal year, was granted space at King's Hill on a
temporary basis in which to establish its headquarters. Uniform
procurement for this group was accomplished. The major problem
still remains that of finding suitable permanent quarters for both the
St. Thomas and the St. Croix units. There are 57 home guard mem-
bers in St. Thomas and 25 in St. Croix.

Police and Fire Commission
The commission held seven hearings for the year involving such
charges as insubordination, conduct unbecoming an officer, and neglect
of duty. Suspensions ranging from 5 to 15 days were ordered in five
cases and two of the cases were dismissed.

Parole Board
The parole board held its regular twice-a-year meetings and appli-
cants for parole were heard and cases reviewed. At the December
1962 meeting 12 cases came before the board for recommendation. Of
that number, five were recommended for parole and later approved
by the Governor. In May 1963, 12 cases came before the board for
examination; of that number 5 were recommended for parole and later
granted parole by the Governor.

The actual obligations incurred for operating the department of
public safety over the past fiscal years may be observed from the
following comparative chart:

Comparison of actual obligations, fiscal years 1959-63
1959 1960 1961 1962 1963

Commissioner's office --------.... ------------ $29,715 $31,018 $80,761 $98,789 $101,011
Police and prison division ....----------- -- 335,256 401,382 482,998 548.293 560,156
Fire division ------ --- ---- 90,944 116,731 129,660 134.003 162,927
Civil defense.. .----------------- 1,518 2,618 2,434 5,617 17,584
Home guard .---------------_----------------- 396 1,267 3,951 2,683 7,080
Police and fire commission .-------------- 29 110 251 261 349
Parole board ----------------- -------- 68 192 112 95 120
Training, including 2 police instructors -------- ---- -- -- ----- 4,800
Traffic advisory and safety commission ------- .- -- --------- --------- 99
Total-..-----.....---- ---------------- 457,926 553,318 700,157 789,741 854,126

The Municipal Courts

Personnel: 13 Operating appropriation: $82,000

St. Thomas and St. John

During the year a total of 4,094 cases were disposed. of in the munic-
ipal court. Divisionally, they are as follows, including preliminary
Criminal division --_-------------------------- 2, 547
Civil division ------------------------------- 233
Small claims division ------- --------------------- 663
Juvenile and domestic relations division------------- ------- 258
Conciliation division --- ------------------------ 393

Total --------------------- ----------------------- 4, 094
Two hundred and fifty-five 'applications were made for marriage
licenses. Of these, 236 marriages were reported, as follows:
Anglican Church ----------- --------------- ---- 29
Apostolic faith----------------------- 2
Calvary Baptist Church----------- ------------------ 4
Church of God--------------------------------- 1
Jewish synagogue------------------------ ----- 3
Lutheran Church ----------------- ------------------17
Methodist Church ---- -------------------------- 51
Moravian Church ---- --------------- ------ ------25
Municipal court--------------- -------------- --- 50
Pilgrim Holiness Church------ ------------------- ----- 2
Roman Catholic Church------- -------------------- 50
Seventh Day Adventist Church_----------- ---------------- 2

Total ------------------------------- ------ 236
During the year there was one coroner's inquest held. In this case
the deceased was found to have met his death through accidental
Extensive renovation work in the courtroom and offices, including
repainting, tiling, and air conditioning of offices was accomplished
during the fiscal year.
The total cost of operating the municipal court was $35,132.39. A
total of $29,644.85 was collected from court fines, notary fees, court
costs and fees, and other miscellaneous charges.
Comparative figures covering a 5-year period are given below.


Comparative flgures-5-year period

1959 1960 1961 1962 1963

Cases disposed of:
Criminal division_ _.------------------
Civil division ..-. ---------
Small claims division ...-_----------
Juvenile and domestic relations
division .-----------------------
Conciliation division....---------
Marriage licenses applied for ..----....
Marriages reported:
Anglican Church-------------
Apostolic faith ---------
Calvary Baptist Church--------
Church of God_ ----------
District court......-----.........-------------
Jewish synagogue.----------------
Lutheran Church .. ---------
Methodist Church ..-. ---
Moravian Church_--- -----------
Municipal court----------------
Pilgrim Holiness Church .....------
Reformed Church -------------
Roman Catholic Church -....-----
Seventh Day Adventist---------
Total cost of operation of municipal court--
Total collections of the court....----------


2, 786

3, 464



4, 094

205 212 275 277 255

26 28 38 32 29
------- 3 1 3 2
1 ---.-----... 4 4 4
--- 5 2 3 1
2 2 4 2 0
1 2 0 0 3
18 11 11 23 17
50 62 70 50 51
22 21 23 42 25
32 32 53 54 50
2 ---...------ 1 1 2
1 1 ......--.... 3 -
35 32 42 45 50
5 1 9 4 2
195 200 258 266 236
-....------- .-------- $29,762.47 $33,222.04 $35,132.39
$12,180.45 $16,515.40 25,168.40 25,389.00 29,644.85

St. Croix

A total of 2,800 cases were disposed of in the municipal court of
St. Croix, as follows:

Preliminary hearings-------------------------------------------- 50
Criminal cases------------------------------------- 463
Civil cases ----------- ---------------------------- 333
Small claims cases-------------------------------------------- 271
Traffic cases----------- ----------------------------------- 1,159
Juvenile and domestic relations cases---------------------- 207
Conciliation cases----------------------------------------------- 317

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

The overall increase of cases terminated during the year just ended
as compared with those terminated in the previous year is 292 cases,
or approximately 12 percent.
There were 209 marriage licenses issued. A total of 187 marriages
were reported, as follows:

Roman Catholic Church --------------------- -------------------- 40
Municipal court--------------------------------------------------- 42
Moravian Church ----------------------------------- ---- -23
Anglican Church ------------------------------ 29
Lutheran Church------------------------ --------------------- 12
A.M.E. Church ------------------- ------------------------ 17
Baptist Church------------------- .----------------------------- 1


Seventh Day Adventist Church ----------------_-------
Pentecostal Church --------- ---------------- ---- 7
Pilgrim Holiness Church------- ---------------------- 10
Spanish Methodist---------------------
Church of God---- ----------------------_------ 2
Jehovah Witness--------------------------------------- ---- 3
United Brothers in Christ ----- --- -------------------- 1

Total ---------------------------------- 187

The municipal court of St. Croix collected revenues totaling
$21,549.50 from notary fees, miscellaneous police and court fees, court
fines, court costs and other charges, representing an increase of ap-
proximately 26 percent over the court's revenues of the preceding
The total cost of operating the municipal court was $33,593.47.
This figure is derived from the actual obligation documents in the
court's office, as the accounting is handled by the department of finance
in St. Thomas. This amount does not include the salary of $5,800
for the reporter-secretary which was not filled during the fiscal year
Comparative figures-5-year period

1959 1960 1961 1962 1963

Cases terminated:
Preliminary hearings...-------....... 41 39 55 63 50
Criminal cases----.--------... ....---- 416 360 434 474 463
Civil cases ----------..... --------.. 104 196 138 278 333
Small claims cases-------.........---- 286 303 165 214 271
Traffic cases---------- --------- 331 626 877 967 1,159
Juvenile and domestic relations ..---- 135 166 207 192 207
Conciliation cases- ----...._-- 124 183 200 321 317
1,437 1,873 2,076 2, 509 2,800
Marriage licenses issued --_------------- 115 125 152 159 209
Marriages reported:
Roman Catholic Church--.......--... 31 28 28 39 40
Municipal court--------------- ---- 31 38 54 35 42
Moravian Church.......---...-------. 7 12 10 15 23
Anglican Church.............--------- 12 12 26 14 29
Lutheran Church...----------------. 12 17 15 10 12
A.M.E. Church--------..... .--------- 7 3 7 9 17
Baptist Church....----------.--.---. .-......--. 2 ......... 4 1
Seventh Day Adventist .............. 3 1 4 ------. 4 ..
Pentocostal Church.................----.. 1 1 2 3 7
Pilgrim Holiness Church ............. 1 5 3 2 10
Spanish Methodist Church_ ----_-- 1 6 1 1
Church of God--.........------- --.....--....-. -- . ------ -----. 1 2
Jehovah Witness-.----_ -- 2 ------ ------.... ............ 3
United Brothers in Christ.---------- ------- 1 5 ... .... 1
Jewish synagogue-------------------- ----------.---. 1 --. -
Total......................---------------- 108 126 152 137 187
Revenues collected..----.---.-------... $6,224.65 $8,746.37 $11,756.30 $16,974.15 $21,549.50
Operating cost -..--............ 24, 971. 77 28,523.91 32,384.68 39,452.38 33,593.47

Office of the Probation Officer

Personnel: 5 Operating appropriation: $31100
During fiscal 1963, 40 cases were received, making a total of 142
cases handled during the year. Of this amount, 19 cases were termi-
nated during that time.
A total of 1,000 investigations were made during the year. A total
of 773 reports were written for an increase of 590 over the previous
fiscal year. A breakdown of the reports is as follows:
634 on inmates at Richmond Penitentiary
101 to the courts
26 parole board
12 for other states
A very high rate of adjustment to probation and parole was experi-
enced during the year. Of the 145 individuals on supervision, only 2
committed offenses which necessitated revocation. One was a parolee
and the other a probationer.

Parole Board
Plans were made during the fiscal year for a major overhaul of
the Virgin Islands penal and correctional system. Steps are being
taken to implement recommendations made by the U.S. Director of
Prisons in his report to the Governor, following his survey last year
of the local system.
The report recommended construction of a new, modern, and versa-
tile institution for the custody, treatment, and rehabilitation of adults
charged with or convicted of crime and for detention of the more
serious young offenders. It further recommended reorganization of
the administrative structure for operating correctional facilities and
complete modernization of statutes and regulations with regard to
prisons, parole, probation, and young delinquents. The report called
for reconsideration and revision of present policies with regard to
budget and salaries for correctional personnel, parole board facilities
and officers, probation officer services to district and municipal courts
and detention of young boys under police supervision.
The Governor appointed two committees, both headed by the chair-
man of the parole board. One committee was charged with recom-


mending a site for the new prison. The other was to implement the
other recommendations of the U.S. Director of Prisons.
In its report, the prison site committee recommended a tract of 150
acres of land in the Christiansted District of St. Croix. Negotiations
were commenced for purchase of this land from the Virgin Islands
Corporation. Terms for acquisition of the site are now under active
consideration by the Board of Directors of the Corporation and early
agreement is expected. The Governor then will seek necessary author-
ization by the legislature to buy the site and push on toward early
construction of the new prison facility.
The chairman of the committee to implement further recommenda-
tions of the U.S. Director of Prisons held 4 days of conferences with
the Director in Washington. As a result the Director agreed to
assign members of his staff to work on preliminary plans for the new
prison, revision of the Virgin Islands Code to include drafting of a
new comprehensive correctional law, and new prison routines for
Richmond Penitentiary pending removal of prison operations from
jurisdiction of the department of public safety.
With the assistance of the U.S. Director of Prisons, the possibility
of Federal aid in financing the new penitentiary was explored. It is
hoped that funds may be secured under the Public Works Act by
the Area Redevelopment Administration which in turn would allot
funds to the Community Facilities Administration for reallocation
to the Virgin Islands.

Planning Board

Personnel: 10 Operating appropriation: $59,090
Work continued during fiscal 1963 under the contract with the
Housing and Home Finance Agency for the urban planning assistance
grant of $113,875, the first such grant in the Virgin Islands. This is
for preparation of topographic maps and comprehensive plan studies
for guiding the future development of the three islands.
The planning board this year administered zoning and subdivision
regulations enacted by the legislature. A number of applications for
exceptions and variances were considered. To facilitate this, biweekly
meetings were held in St. Thomas and St. Croix. One meeting was
conducted at Cruz Bay, St. John. Public hearings also were held on
the same schedule.
During the year, a study was conducted and recommendations made
for a new post office site. Conferences were held with the Federal
officials involved concerning parking facilities and architectural treat-
ment of buildings.
The board also assisted the College of the Virgin Islands with re-
spect to sites and architecture for development of its campus. Other
services rendered were for preservation of historic architecture, review
of legislation for housing aids, formulation of trailer park regulations,
and policies pertaining to houseboats.
Training of a Virgin Islander for the post of city planner was con-
tinued in the Graduate School of Planning at Harvard University.


Division of Personnel

Personnel: 16 Operating appropriation: $96,900
Legislation of significance to personnel administration, which was
passed and received executive approval during the past years, in-
cluded: (1) A bill to permit earlier retirement of legislators; (2) a
bill to prohibit nonmerit discrimination in the public service; (3) a
bill to revise the pay plan for employees in the classified service of the
government of the Virgin Islands. This latter bill is perhaps the
most significant piece of legislation to affect the salary administration
of classified employees for several years.
Also included in an appropriation bill passed and approved during
the past year was a provision authorizing the Governor to grant in-
creases in salaries to unclassified employees which in his discretion will
be comparable to increases granted in the new pay plan to classified
Employee training has been given continued emphasis. Twenty
officers of the government attended an intensive course in management.
The course was so successful that discussions were immediately
entered for repeating the course in St. Thomas and holding a similar
seminar in St. Croix.
During the past year, the Governor delegated several personnel
functions to the director of personnel, thus permitting independent
approval by this officer of a wide range of personnel transactions.
The following is a departmental breakdown of positions in the
classified and unclassified service as of June 30, 1963:


Number of positions by departments (classified and unclassified-Executive

District of District of
St. Thomas St. Croix
and St. John
Departments Total

Classified Un- Classified Un-
classified classified

Governor's office:
Administrative assistant to the Governor-St.
John ----------- --------------------- 5 2
Administrative office-St. Thomas---------------- 1 18 ----
Administrative assistant to the Governor-St.
Croix________-------------------- .- ----4 7 -
Division of personnel------------------------------ 13 2 1
Planning board-.------------------------------ 4 4 1 1 .--
Probation officer -.. ------------- ---------------- 2 1 2 ----
Budget director ......------------------------- ---------- 5
Capital staff -------------------------- -------- ---------- __ -- -------- 73
Government secretary-------------------------------- 19 10 7 4 40
Commerce ......... .-------------------- 23 22 25 9 79
Property and procurement --------.--------------- 21 8 4 5 38
Agriculture and labor---- ------------------- 15 12 25 26 78
Employment service --------------------------- 28 .... 7 ------ 35
Finance .. ---- ---------------------- 107 29 17 5 158
Social welfare ..... -- ------------------ 45 4 90 6 145
Public safety. -- ----------------------------- 76 6 79 7 168
Public works -. ---............ .- ---------.. 142 20 150 15 327
Health .... ------ -------- 350 6 225 5 586
Education --------------- -------------- 379 24 230 16 649
Housing and community renewal...------...--------- 7 7 1 6 21
Law-- ------------------------------------ 1 12 ----..... 3 16
1,236 193 867 117 2,413

I This represents an actual physical count of employees appearing on the respective departmental rosters
as of June 30, 1963.

Human Relations Commission

The work of smooth enforcement of the Islands' comprehensive
Civil Rights Law was aided by the continued efforts of the Governor's
Human Relations Commission in fiscal 1963.
The commission quietly investigated complaints submitted to it and
worked to settle these by mediation. Where misunderstandings ex-
isted, conciliation was used to settle these differences in an atmosphere
of reason and without recriminations. While there are no statistics
to highlight the work of the commission, the results of this work are
evident in the fair and equal treatment of all citizens without regard
to race, creed, or color.

721-848 0 64 8

Traffic Advisory and Safety Committee

Growth of the urban areas in the Virgin Islands and the steadily
increasing number of motor vehicles has contributed to traffic and
parking problems.
To cope with these problems, the traffic advisory and safety commit-
tee, authorized by the Fourth Legislature, undertook a comprehensive
survey of traffic patterns to assess the most pressing needs.
A 10-point traffic plan was prepared and recommended for the town
of Charlotte Amalie, where problems are the most aggravated. This
plan included projects for rerouting, widening and improving key
streets, covering gutters, cutting new roads and extending existing
ones, building connecting bridges, painting lines to define traffic lanes
where needed, installation of traffic lights, and expansion of down-
town parking areas. Estimated cost of the plan is $400,000. Recom-
mendations for its adoption were submitted to the Governor for re-
ferral to the legislature.

Public Utilities Commission

At the beginning of the year, the West Indian Company, Ltd.,
petitioned for an increase in its schedule of storage rates. Company
representatives stated that in recent years the transit warehouses had
become hopelessly congested because consignees would not pick up
shipments when they were ready. This situation was producing
higher operating expenses and lower efficiency in sorting cargo. The
company contended and the commission agreed that an increase in
storage rates would prove to be an effective incentive for people to call
for their cargo within a reasonable length of time after notices of
arrival had been received.
The commission held several public hearings concerning a later
petition from the West Indian Company for an increase in their
landing and loading charges. The public and representatives of the
local government were invited and did attend. On June 6, 1963, the
commission approved an increase of 20 percent to become effective as
of that date. However, since the company had requested a 25 percent
increase, it was agreed that the company would be allowed to present
such rebuttal evidence upon the testimony heard as it might wish at
some future date. To this date, the company has not presented such
rebuttal evidence.
The commission approved a petition from the Manassah Bus Line,
which has an exclusive franchise for the island of St. Thomas, to
institute bus service between Charlotte Amalie and Red Hook-five
trips daily at a fare of 40 cents per trip.
A number of matters were presented by the Virgin Islands Tele-
phone Company. During the year the Commission-
1. Approved regulations concerning joint user service, deceased
subscribers, and lease and sale of property;
2. Approved temporary schedule of rates, submitted jointly by
the Virgin Islands Telephone Company and All America Cable
and Radio, for interisland telephone service, upon condition that
an amended application for approval of the rates would be sub-
mitted at a later date (this amended application would be based
on actual experience with the news system) ;
3. Authorized the company to initiate a 50 cents per telephone
per month charge for unlisted telephone service.

Selective Service

Personnel: 5 compensated Operating appropriation: $29,954
25 uncompensated
Registration of men attaining the age of 18 years was continued as
required by law. This brought the total of registrants to 5,764, rang-
ing between 18 and 40 years of age, in fiscal 1963. There were
435 new registrations, slightly less than the 445 registered in fiscal
1962. However, the trend over the past few years continues to reflect
the higher birth rate experienced during World War II.
Of the approximately 2,100 men who have entered service since 1950,
1,415 have been inducted through the Selective Service process, while
approximately 700 entered through direct enlistment.
The two local boards, one serving St. Thomas and St. John, and the
other serving St. Croix, met monthly to complete 1,150 classification
actions-none of which was appealed to the Virgin Islands Appeal
Board. A sizable number of these actions were reclassifications of
Class I-A registrants with children to Class III-A, and the reclassifi-
cation of 'certain registrants to the new Class I-Y, a classification re-
served for those registrants not now qualified for induction but who
are presumed to be qualified generally in time of national emergency.
Both classes represent deferments.

Examinations More Stringent

Preinduction physical examinations were administered to 121 regis-
trants at armed forces examining stations. Of these, 50 were found
acceptable and 71 were not acceptable. The tabulation indicates re-
sults over a period of five years. While no particular trend is indi-
cated in these results, it is noteworthy that the difference in the accept-
ability rate occurring between 1959 and 1960 is due to the adoption of
more critical testing standards, which were again raised in the closing
months of this fiscal year.


1959 1960 1961 1962 1963
No. Per- No. Per- No. Per- No. Per- No. Per-
cent cent cent cent cent

Examined..--..-.-- ..---- 123 ---... 223 .----- 126 .----. 156 ---- 121 .. ..
Accepted..------------- 67 54 82 37 43 34 66 42 50 41
Rejected --.------ .- 56 46 141 63 83 66 90 58 71 69
Mental-------- 46 38 102 46 59 47 67 43 64 53
Physical.-------- 5 4 16 7 14 11 17 11 4 3
Combination and/or
other -------- 5 4 23 10 10 8 6 4 3 3

Induction Quota Oversubscribed

The induction quota of 33 was oversubscribed by 3. All of the 36
registrants inducted were volunteers; all entered the U.S. Army. Ad-
ditionally, 40 entered the various armed services by direct enlistment,
contributing to a net of 76 entries into the service as against 96 sepa-
The number of standby reservists continues to decline as members
complete their military obligations. A total of 79 at yearend reflected
a net loss of 49 from the inventory of 1 year ago. Sixty-nine, or 87
percent of the total, have been determined available for recall to active
duty in the armed services in the event of a national emergency.
The system is maintained by 5 compensated employees and 25 un-
compensated employees, comprising boards and advisory groups.


The Governor of the Virgin Islands took office with a firm resolve
to move ahead in all the social, economic, and cultural programs so
aggressively initiated and pushed forward by the Federal administra-
The people of the Virgin Islands and a majority of their elected
leaders joined forces with the Governor and supported these pro-
grams as a renewal of their Bill of Human Rights under American
There has been a lot of catching up to do. In some areas, there
still is. However, the foregoing report is graphic evidence of progress
being made on all fronts. In many cases, the Virgin Islands have
set the pace, with housing and educational projects which will be used
as models for other communities on the U.S. mainland and in countries
around the world.
The resolve to move ahead can never be terminated so long as the
will to progress is alive. In the Virgin Islands, for example, teacher-
to-pupil ratios which once ran as high as 80 to 1 have been reduced
to an average of 35 to 1. This is progress, but it is accepted that
further improvement must be made. In housing, substandard areas
are being renewed and families relocated in modern, low-rent public
housing projects. However, it is recognized that this is a continuing
process that always must be carried forward. Hospital and medical
facilities have steadily been expanded, but present and projected
needs call for herculean efforts in the future.
The conclusion of this report is that the broad majority of the people
understands and accepts the responsibility to move ahead toward
social, economic, and cultural goals far beyond present achievements.
Its further conclusion is that the Virgin Islands, by virtue of this
mature acceptance of responsibility, is justified in its hopes to soon
acquire the right to elect its own Governor and be represented by an
elected delegate to the Congress.



Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00003624/00001
 Material Information
Title: Report.
Series Title: Report.
Physical Description: Serial
Language: English
Creator: Virgin Islands of the United States. Office of the Government Secretary.
Publication Date: 1962-1963
Subjects / Keywords: Periodicals. -- Politics and government -- Virgin Islands of the United States
Spatial Coverage: United States Virgin Islands.
 Record Information
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
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oclc - 01769156
oclc - 1769156
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Table of Contents
    Front Cover
        Front Cover
    Title Page
        Title Page 1
        Title Page 2
        Page i
        Page ii
        Page iii
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
    Appendix A
        Page A-1
        Page A-2
        Page A-3
        Page A-4
    Appendix B
        Page B-1
        Page B-2
    Appendix C
        Page C-1
        Page C-2
        Page C-3
        Page C-4
        Page C-5
        Page C-6
        Page C-7
        Page C-8
    Back Cover
        Back Cover
Full Text



Fiscal Year 1963

Cyril E. King

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Summary of Activities
Office of the Government Secretary
Fiscal Year 1963

Fiscal Year 1963 witnessed the realization of a 2-year effort to have all the

St. Thomas-based agencies of the Office of the Government Secretary housed in the

,y Administration Euilding, which is being completely refurbished, thus facilitating

administrative control as well as enhancing public convenience.

SThe Office of the Government Secretary continued the functions assigned by the

SRevised Organic Act of 1954 and the Virgin Islands Code. Increased activity was

experienced in the areas of passports, notaries public commissions, cashier's col-

lections, as well as in the number of laws and acts passed by the Legislature and

proclamations and executive orders -- the publication of which is the responsibility

Sof this office.

Legislation requiring the registration of trade names further increased the

activities of the licensing section. In addition, continued efforts to improve enforce-

ment of the corporation laws resulted in the dissolution of over 70 inactive corporations.

In the areas of insurance and banking, work continued on the revision of the

insurance laws, while plans are being formulated for a complete revision of the

banking laws.

Continued and ever-increasing emphasis to eliminate the night soil removal

system and its attendant health hazards has been reflected during the past year in

'J renewed interest on the part of property owners to cooperate and comply. One con-

sequence has been a corresponding demand on the Sanitary Fdcilities Fund which was

depleted by the end of the fiscal year. Efforts are being made to make additional funds


1962 having been an election year, this office was called upon to exercise super-

vision over the conduct of the elections -- the most significant result of which was the

emergence of one Party with a clear legislative majority for the first time since the

passage of the 1954 Revised Organic Act.

The Industrial Incentive Foard experienced a crisis-ridden year. Its very

existence and that of the continued economic development of the Islands were threatened

by attempts to repeal Section 301 of the Tariff Act of 1930. In an effort to avert un-

favorable Congressional action and convince official Washington of local determination

to assume and carry out responsibilities, this office coordinated the facilities of a

reactivated Trade Advisory Board with those of the Fusiness Community which resulted

in a report which included recommendations for national and local action designed to

preserve Section 301 and its attendant priceless benefits to these Islands,

The results of the Real Property Reassessment Project are still being reflected

in the continued increase in real property taxes collected for the calendar year 1962 --

despite implementation of the tax modification and homestead exemption laws.

The Office of the Recorder of Deeds by requiring payment of all fees prior to

recording any document, has corrected themajor source of criticism leveled at its

operation in previous audit reports of the Comptroller, and eliminated the problems

of unpaid recording fees and accumulated unclaimed recorded documents.

During fiscal year 1963 the Alcohol Control Foard amended its regulations


relating to labelling to provide for seizure of improperly labeled liquors. The results

have been noticeably effective.

A detailed report of each individual agency of the Office of the Government Secre-

tary follows.



The close of fiscal year 1963 found all St. Thomas-based agencies of the Office

of the Government Secretary housed in the Administration Building. This was the

culmination of a two-year effort by the Government Secretary. It is now possible for,

persons to transact business involving the several agencies under the jurisdiction of

the Office of the Government Secretary without having to commute among three or four

different and widely separated buildings as heretofore has been the case.

Administratively, control of the many functions of the agencies of this office is

greatly enhanced.

The Office of the Government Secretary, on behalf of the Government of the

Virgin Islands, continued its responsibility of supplying Equity Publishing Corporation

with the necessary documents to maintain compilation and publication of all legal docu-

mentations for the Government of the Virgin Islands, including Supplements to the Vir-

gin Islands Code, Virgin Islands Rules and Regulations, Virgin Islands Register, Virgin

Islands Session Laws, and Slip Laws of the Virgin Islands.

All bills passed by the Legislature of the Virgin Islands and approved by the

Governor are processed through the Office of the Government Secretary. This pro-

cessing consists of assignment of act and resolution numbers on all such enactments;

distribution of copies to all government departments and other officials; and filing of

the printed slip law for such distribution as may be required,

The following table reflects the number of Acts and Resolutions which have been

passed, approved, and processed through this office during the past five fiscal years:

1959 1960 1961 1962 1968

Acts 145 140 146 140 133

Resolutions 29 15 25 14 39

Executive Orders and Proclamations issued by the Governor of the Virgin Islands

are promulgated and distributed by the Government Secretary's Office and filed therein.

The following table reflects the number of Executive Orders and Proclamations

issued by the Governor and processed through this office during the past five fiscal years:

1959 1960 1961 1962 1963

Proclamations 11 19 35 31 48

Executive Orders 5 1 10 7 9


The number of applications for business licenses filed with the Office of the

Government Secretary continued to increase steadily, with 2, 750 licenses being

issued during the fiscal year 1963, as compared with 2, 436 for fiscal year 1962,

2, 367 for 1961, 2, 113 for 1960, and 1, 795 for 1959.

In carrying out its responsibilities under the laws governing the issuance of

licenses, the Office of the Government Secretary found it necessary to impress upon

each applicant for a new business license that operation of said business could not

begin until he actually was in possession of the license in question. This point was

also the subject of correspondence and numerous discussions between this office and

the Department of Public Safety.

In addition, surveys and on-the-spot inspections continued to be conducted in

cooperation with the Department of Public Safety to ensure coverage of all businesses

by appropriate licenses.

'The following chart shows a comparison of licenses issued and fees collected over

the past five fiscal years:


1959 1960 1961
District Licenses Fees Licenses Fees Licenses Fees

St. Thomas
& St. John

St. Croix


St. Thomas
& St. John

St. Croix

1,165 $ 4

630 2
1,795 $ 6



5, 143.00


1,227 $46,238.50

886 30,549.00
2,113 $76,787.50

Licenses Fees

1,514 $63,480.00 1,716

922 38,474.00 1,034
2,436 $ 101,954.00 2,750



$ 51,689.00

34, 659.00
$ 86,348.00


.39, 176.00
$140, 768.50

* Corrected figure fron Annual Report for fiscal year 1962

During the period covered by this report the need for amending the existing licens-

ing laws became very apparent. r.7ith the ever-increasing number of varying kinds of

businesses being attracted to these Islands, many of which are not covered by existing

statute, there are those which are operating without having to procure a license.

Recommendations designed to correct this situation are being prepared for the

Governor's consideration and possible presentation to the next regular session of the


Added responsibility accrued to the Office of the Government Secretary with the

passage by the Legislature and approval by the Governor of Act No. 923, Fifth Legisla-

ture, which was approved January 25, 1963. This measure provides for persons doing

business in the Virgin Islands under any name other than his own, and every copartner-

ship or association of individuals, except corporations, doing business in the Virgin

Islands, resident and nonresident, shall file in the Office of the Government Secretary

a certificate setting forth the designation, name or style under which said business is

to be conducted, the location of such business, a brief description of the kind of business

to be transacted under such name, and the true and real name or names of the party or

parties conducting or intending to conduct same.

within the limitations of existing staff and available funds, steps were taken to

implement the provisions of this newly enacted legislation. As of the close of the

fiscal year 172 trade names were registered and fees collected for the filing of certifi-

cates of registration amounted to $860.00.



Articles of Incorporation were filed by 197 new corporations during fiscal year

1963 -- 24 foreign, 173 domestic as compared with 183 during the fiscal year 1962.

A total of 798 corporations now exist -- 682 domestic, 82 foreign, 34 non-profit.

Renewed and intensified efforts continue to weed out those corporations which are

delinquent in the payment of franchise taxes or otherwise fail to meet their legal

obligations. As a result, 99 corporations were dissolved during fiscal year 1963.

The increase in corporate activity was further reflected in the amount of

franchise taxes and penalties collected during fiscal year 1963 -- $38,095.75 -- as

compared with $20, 127.56 during fiscal year 1962, and $16, 463.56 during fiscal year


Other corporation fees (filing, copying, etc.) collected during fiscal year 1963

increased to $13, 179.00 as compared with $12, 458.34 in fiscal year 1962, and $11,874.49

in fiscal year 1961.

The following comparative table reflects the increase in corporate activity over

the past five fiscal years.


1959 1960 1961 1962 1963

Filing Fees, etc. $7,006.00 $12,306.09 $11,874.49 $12,458.34 $13, 179.00
Franchsie Taxes
Including Penalties $9,882.50 $16, 657.56 $16, 463.50 $20, 127.56 $38,093.75




Foreign Domestic

Foreign Domestic

Foreign Domestic

Certificates of Incor-
poration Issued
Certificates of Amend-
ments Issued
Surrender of Corporate

Foreign Do. r-estic



14 115

Foreign 'Domestic

Certificates of Incor-
poration Issued 17 166 24 173
Certificates of Amend-
ments Issued 2 30 2 26
Dissolutions - 12 4 95
Withdrawals 2 - 5 -
Mergers - 3 - 1
Surrender of Corporate
Rights 3 - 6


Trademark and Patent activity showed a decline in the number of registrations

recorded during the fiscal year 1963 as compared with the previous fiscal year. The

following is a comparative table for the past five fiscal years.
1959 1960 1961 1962 1963

Original Registrations
Changes of Name
Design Patents
Total Actions Recorded

16 18 12 24 24
5 19 15 7 4
- 2 6 3 6
- 8 2 6 2
- 4 4 20 2
- 4 - 1 1

21 55 39 66 39


Total fees collected for this activity during the fiscal year 1963 amounted to

$1, 005.00. Of this amount $215.00 represent fees which have been collected during

the current year but for which cases are in a pending status awaiting receipt of additional

information and/or documents in order to effect final registration. The following is a

comparative table of total fees collected for the past five fiscal years:

1959 1960 1961 1962 1963

Fees Collected Covering
Trademark ' Patent Activity $407.50 $1,052.50 $310.00 $1,302.50 $1005.00

Registration of trademarks and patents continues to be processed in conformity

with Rules and Regulations promulgated by the Governor of the Virgin Islands under date

of June 11, 1959. However, consideration is presently being given to the drafting of a

local Trademark Act for the Virgin Islands to serve as a legal standard by which this

activity may be administered more effectively.


The processing of all actions connected witi passports in the Virgin Islands con-

tinues to be an important function of the Government Secretary's Office. This is

accomplished in compliance with rules and regulations promulgated by the Passport

Division of the Department of State and contained in its Foreign Affairs ,Aanual. The

following table reflects total passport activity for the past five fiscal years:

1959 1960 1961 1962 1963

Issued 133 169 191 199 273
Renewed 33 41 55 28 60
Amended 5 3 5 9 3
Extended 1 1 1 1 -
Total Actions 177 214 252 237 341


The following is a comparison of fees collected over the past five fiscal years:

1959 1960 1961 1962 1963

Total Passport Fees $1, 378.00 $1,763.00 $1, 994.00 $1, 931.00 $2, 762.00

Of special significance, during the past fiscal year, was the announcement made

by the U. S. Department of State relative to its new policy regarding travel to or in

Cuba, effective April 1, 1963. Under this policy all passports processed by the Pass-

port Office and by its constituent agencies must include a restrictive endorsement on

travel to or in Cuba, and accordingly, all passports presently prepared by this office

for issuance by the Governor of the Virgin Islands bear this endorsement.


All "Notary Public Commissions issued in the Virgin Islands are processed through

the Office of the Government Secretary. The current fiscal year shows a marked in-

crease in the number of such commissions issued. This is reflected by the fact that

the maximum quota of 25 commissions per .itted by law for the Virgin Islands was

subscribed during the year.

This office has recommended and the Governor is considering proposing legisla-

tion to increase the number of Public Notaries throughout the Virgin Islands from 25

to 35. The need for additional notaries is a reflection of the increased volume of

business activity throughout the Virgin Islands since the enactment of the Virgin Islands

Code in 1957.

The following tables reflect activity in the Notaries Public field over the past

five fiscal years:



In Effect
June 30,


June 30
Cancelled 1963

Public Notaries (St. Croix)
Public N1otaries (St. Thomas)
Government Notaries (St. Croix)
Government Notaries (St. Thomas)
Fees collected for Commissions
Annual Renewal Fees

Total Fees


In Effect
June 30,

Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Government Notaries (St. Croix)
Government Notaries (St. Thomas)
Fees collected for Commaissions
Annual Renewal Fees
Total Fees


FISCAL '"!EAR 1961

In Effect
June 30,



Public Notaries (St.Croix)
Public lIotaries (St. Thomas)
Government Notaries (St. Croix)
Government notaries (St. Thomas
Fees Collected for Commissions
Annual Renewal Fees
Total Fees

June 30, Renewals
1961 in 1961



in 1963


junm 30,


in 1962





In Effect
June 30, Issued
1959 1960

Public Notaries (St. Croix) 5 3
Public Notaries (St. Thomas) 9 2
Government Notaries (St. Croix) 5
Government Notaries (St. Thomas) 10 6
Fees Collected for Commissions
and Renewal Fees
Total Fees

June 30, Renewals
Cancelled 1960 in 1960

- .3
- 11
- 5



Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Government Notaries (St. Croix)
Government Notaries (St.Thomas)
Fees Collected for Commissions
and Renewals

Total Fees


In Effect
June 30,


R 1959

Issued June 30,
1959 Cancelled 1959

- - 2
- - 8
- - 74
- - 7


At the end of fiscal year 1963, there were 69 insurance companies authorized to

conduct business in the Virgin Islands, as compared with 61 companies last fiscal year

and 47 the year before. There were 9 new registrations during the year, as compared

with 14 last year. The 69 companies referred to above include one domestic company

and 68 foreign companies (including one non-profit organization).






Insurance Agent's Licenses issued during the year totalled 61, as compared with

68 last fiscal year, and 47 the year before. The total of 61 include 11 newly issued

licenses and 50 renewals.

During the fiscal year, 39 Insurance Solicitor's Licenses were issued, 24 of which

were Apprentice Solicitor's Licenses.

The following is a comparative table of taxes and fees collected for the past five

fiscal years;
1959 1960 1961 1962 1963

Renewal of Certificates of
Authority and Original
Registrations $1,538.50 $1,651.00 $1,951.00 $3,076.00 $3, 187.50
Agent's Licenses 1,831.00 1,521.00 2,111.00 2,821.86 3, 068.22
Broker's Licenses -- -- 100.00 -- --
Solicitor's Licenses - - -- 200.00 827.53
Gross Premium Taxes 5,079.08 6,602.95 12,316.87 12,384.86 15,015.37
Filing Annual Statements 101.00 98.50 126.00 151.00 167.50
Filing Power of Attorney 15.00 15.00 45.00 145.00 90.00
Booklet of Insurance Laws -- -- 51.00 61.00 44.00
$8,564.58 $9,888.45 $16,700.87 $19,239.72 $22,400.12

Revision of the Insurance Laws of the Virgin Islands continues to be a major

objective of this office. Jith the cooperation of the Office of the Attorney General,

work begun on a draft during the year, but not completed, is being pursued with the

hope that this can be accomplished during the next fiscal year.

An ever-increasing measure of activity is being evidenced in the insurance business

in the Virgin Islands. This is reflected not only in the increased number of companies

conducting business, substantial increase in gross premiums and gross receipt taxes,

but also in the continuing increase in the number of inquiries jeeived.


All letters of authority to perform civil-religious ceremonies throughout the Vir-

gin Islands are issued by the Government Secretary. The following table reflects the

number of such letters issued to Ministers of the Gospel covering the past 5 fiscal years:

1959 1960 1961 1962 1963

Letters of Authority 12 10 11 10 7

No fee is collected for this activity.


Title 18 of the Virgin Islands Code, as amended placed on the Government Secre-

tary the responsibility for the general supervision of the elections and the coordination

of the activities of the boards of elections.

The 1962 General Elections saw 27 candidates competing for 11 seats in the Virgin

Islands Legislature. Of a total of 12, 301 voters registered in the Virgin Islands -- 6, 129

in St. Croix, 5,819 in St. Thomas; 353 in St. John -- a total of 8,794 persons cast their

vote as compared with the 1960 General Elections when a total of 7,659 persons cast

their vote out of 10, 678 registered voters.

The most significant result of the General Elections of 1962 was the election of a

clear majority to the Legislature by one political party for the first time since the

passage of the 1954 Revised Organic Act which provides that:

"The legislature shall be composed of eleven members to
be known as senators. Two . , . shall be elected by the quali-
fied electors of the District of St. Thomas; two . . . by the
qualified electors of the District of St. Croix; one , . . by the
qualified electors of the District of St. John. The other six
. * . shall be senators at large and shall be elected by the
qualified electors of the Virgin Islands from the Virgin Islands
as a whole: Provided, that in the election of senators at


large, each elector shall be entitled to vote for two
candidates, and the candidates receiving the largest
number of votes shall be declared elected up to the
number to be elected at that election."

Two additional polling places -- one in St. Thomas, one in St. Croix -- were

provided making a total of 7 in St. Thomas, 5 in St. Croix and 2 in St. John (unchanged)

for an over all total of 14 polling places throughout the Virgin Islands.

Subsequently, the Fifth Legislature of the Virgin Islands during its January 1963

Regular Session passed Bill No. 1800 (Act No. 936) approved by the Governor on

February 20, 1963, which repealed Title 18 of the Virgin Islands Code concerning

elections and enacted a new Title 18. This bill provided for, among other things, a

Supervisor of Elections, thus removing from the Office of theGovernment Secretary

the supervisory responsibilities over elections heretofore assigned to this office.

The following statistical information regarding voting since 1958, the year the

Virgin Islands Code was enacted, is of interest:
1958 1960 1962
Regis- Regis Regis-
Island tered Voted tered Voted _ tered Voted %
St. Thomas 4,752 3,742 78.7 5,092 3,908 76.7 5,819 4,278 73.4

St. Croix 4,651 3,284 70.6 5,253 3,508 66.7 6,129 4,218 68.8

St. John 357 226 63.3 333 243 73.2 353 298 84.4


The steadily increasing economic development of the Virgin Islands has been

attracting the attention of a growing number of banking interests. This fact is evidenced



1.' Establishment during the fiscal year of branches

of the First Federal Savings (one each in St. Thomas

and St. Croix).

2. Application from the Bank of Nova Scotia to con-

duct banking business in the Islands. At the end

of the fiscal year this application was pending

final disposition by the Board,

3. Inquiries from other interested banking institutions.

The New St. Croix Savings Bank: The Banking Board continued to exercise its

supervision of The New St. Croix Savings Bank. At the end of fiscal year 1963 this

institution was being completely rehabilitated to further enhance its service to the

banking needs of the people of St. Croix, including Federal Deposit Insurance Cor-

poration coverage.

This rehabilitation no doubt will eliminate most of the deficiencies referred to

in the examination reports over the past several years.

The Chase Manhattan Bank: Pursuant to the authority granted by Section 32(h),

Title 9 of the Virgin Islands Code, the Banking Board continues to accept the examina-

tion report of the Board of Governors of the Federal Reserve System, with respect to

the required examination of the branches of the Chase Manhattan Bank located in the

Virgin Islands.

The Virgin Islands National Bank: No review or supervision is extended to the

Virgin Islands National Bank which is incorporated and organized under the National


Bank Act (U.S.C. Sec. 21ct. seq,) and is excluded by Section 1, Title 9, Virgin Islands


First Federal Savings: Opened two branches in the Virgin Islands during fiscal

year 1963. The Virgin Islands Code is silent on the question of any responsibility of

the Banking Board in case of any banking operation of this nature.


The acute housing shortage coupled with the depletion of the Sanitary Facilities

Fund have served to slow down progress in the drive to eliminate the night soil removal


During the fiscal year 1963, a total of 24 loans were made, amounting to $30, 950,

as compared with 40 loans during the preceding fiscal year amounting to $48,516.12.

In addition, there were at the end of the fiscal year, 49 applications pending

availability of additional funds -- 30 in the Department of Finance amounting to

$29,028.12, and 19 in the Office of the Government Secretary which, assuming they

were all approved in the amounts applied for, would amount to approximately $18, 600.

Efforts are being made to secure the appropriation of additional funds to this



The Board of Control of Alcoholic Beverages prescribes, administers, and en-

forces regulations pertaining to the manufacture and sale of alcoholic beverages

denatured spirits and articles containing denatured spirits.

During this fiscal year the Board amended the Labelling Regulations to include


provisions for seizure of any liquors in violation of the provisions of Chapter 1,

Title 8 of the Virgin Islands Code. This amendment was necessary in order to cur-

tail large shipments into the U. S. Virgin Islands of improperly labeled merchandise

arriving from neighboring islands. (See Appendix A)

Prior to the issuance of these amended regulations the problem of improperly

labelled merchandise arriving in these Islands was the subject of extensive conferences

with officials of the United States Customs. The procedure agreed upon by the Board

and the United States Customs Office together with these amended regulations have

proved to be very effective.

The following information regarding production, export, and licenses issued to

manufacturers and distillers is of interest:


Distillers' Licenses:

1. Virgin Islands Rum Industries, Ltd. (St. Croix)
2. West Indies Distillers, Ltd. (St. Thomas)

Manufacturer's Liquor License:

1. Brugal & Company, Inc. (St. Croix)
2. E. Delatour et Cie. (St. Croix)
3. Sunbilt Tropical Fruit Products Ltd. (St. Thomas)
4. Goddard's Ltd. (St. Thomas)

Manufacturer-Denatured Alcohol:

1. V. I. Rum Industries, Ltd. (St. Croix)

Manufacturer-Articles Containing Denatured Spirits

1. V. I. Rum Industries, Ltd.
dba - V. I. Bay Rum Manufacturing Co. (St. Croix)


2. Virgin Isle Distillers, Ltd. (St. Thomas)
3. Huntley Ltd. (St. Thomas)
4. West Indies Bay Co. (St. Thomas)

Rum Produced in the Virgin Islands (January - December 1962)

1, 100, 000 Proof Gallons (St. Croix)
200, 000 Proof Gallons (St. Thomas)

1, 300, 000 Proof Gallons Total (V. I.)




Liquers, etc.










693, 119
123, 434



825, 387
4, 381

489,844 590,183 824,717 821,633 834,111

Perfumery and Toilet Waters Including Bay Rum

Value (Dollars)


190, 306
363, 358


During fiscal year 1963, a new procedure affecting the recording of deeds was

adopted. (See Appendix B).


Bills are no longer prepared by this office for recordation. Instead the Cashier for

the Office of the Government Secretary in St. Thomas and the Cashier for the Department

of Finance in St. Croix collect all monies upon presentation of documents with the fees

indicated thereon by the Recorder. This system has simplified collections and has

resulted in a saving of time, In addition, thie problems of unpaid recording fees and

accumulated unclaimed recorded documents have been eliminated.

Until the establishment of the new c4lection system in February 1963, no record

was kept in the daily register of certified copies of documents issued during the years.

Plans are being made to air-condition the vaults to further enhance the preserva-

tion of records stored there.

The following charts reflect the activities of the Offices of the Recorder of Deeds

in St. Thomas and St. Croix:

Chattel Mortgages
Cancellations & Releases
Conditional & Installment Co
Contracts of Sale
Bill of Sale

Recorder .of Deeds, St. Thomas

1958 1959 1960

429 441 433
316 339 331
65 42 62
218 223 231
ntracts 267 932 713
4 37 14
12 11 8
50 38 27
6 12 5
15 19 13
24 16 23
5 12 13
19 37 17
25 32 24
1,455 2,191 1,914

1961 1962

472 569
349 440
191 405
311 282
1,140 617
20 22
16 7
38 53
49 32
35 105
21 25
14 18
15 48
43 49
2,714 2,672


Recorder of Deeds, St. Croix

1960 1961 1962 1963

Deeds 480 441 676 718
Mortgages 325 383 403 501
Chattel Mortgages 113 144 166 121
Conditional Sales Contracts 59 106 161 437
Cancellations 240 401 352 383
Adjudications 8 15 30 19
Certificates of Attachment -- 107 113 45
Certificates of Death 16 8 10 23
Miscellaneous 119 132 297 295
Totals 1,360 1,737 2,325 2,552

Microfilm: "'Vhile, for various reasons not entirely within the control of this

office, progress in this area has been somewhat irregular, efforts are being con-

tinued to complete and maintain on a current basis the microfilming of all documents.

Translation: The scarcity of land within the city limits has given rise to in-

creased interests in "old estates", the recording of which are in Danish. Con-

sequently, during the fiscal year priority was given to the translation of the Country

District Book. This goal was achieved.

In addition, translations of books pertaining to transfer of land in King's and

Queen's Quarters have been completed and filed.

Because of their poor condition, translation of the St. John books continues to

be a difficult problem. However, attempts to translate and restore them are being

continued. It is hoped that this can be accomplished within the next six months.

The Books on Kronprindsens Quarter consisting of 3 books of approximately 300

pages each, still remain to be translated. Eooks in Series 2 and Series 3 dating back


If the number of tax appeals filed during fiscal year 1963 is any indication of the

extent to which this office has been able to overcome the problems which beset any new

program, a remarkably good job has been accomplished since in all three Islands this

office has had a total of one single appeal.

The following pieces of legislation enacted by the Legislature continue to limit

the effect of the reassessment program upon the revenue picture of the Islands:

1. Act No. 834, approved Miarch 15, 1962, to

provide for homestead exemption from payment

of real property taxes up to $37.50.

2. Act No. 909, approved June 18, 1962, to spread

over a period of four years any increase in real

property taxes for the calendar year 1961 over

those paid for 1960.

The following detailed charts reflect the effect of the implementation of the real

property reassessment program:


No. of Fills
Island Year Sent Out Assessment Taxes

St. Thomas 1958 3776 $15,053,900.00 $188, 174.81
1959 4198 16,846,500.00 210,581.02
1960 5377 28,777,774.00 359,722.18
1961 5500 28,098,747.00 351,234.34
1962 5744 30,148,342.00 376,854.28


If the number of tax appeals filed during fiscal year 1963 is any

indication of the extent to which this office has been able to overcome the

problems which beset any new program, a remarkably good job has been

accomplished since in all three Islands this office has had a total of one

single appeal,

The following pieces of legislation enacted by the Legislature continue

to limit the effect of the reassessment program upon the revenue picture of ,

the Islands:

1. Act No. 834, approved March 15, 1962, to

provide for homestead exemption from payment

of real property taxes up to $37.50.

Z. Act No. 909, approved June 18, 1962, to spread

over a period of four years any increase in real

property taxes for the calendar year 1961 over

those paid for 1960.

The following detailed charts reflect the effect of the implementation of

the real property reassessment program:

No. of Bills
Island Year Sent Out Assessment Taxes

St. Thomas 1958 3776 $15,053,900.00 $188,173.75
1959 4198 16,846,500.00 210,581,25
1960 5377 28,777,774.00 359,722.18
1961 5500 28,098,747.00 351,234,34
1962 5744 30,148, 342. 00 376,854.28


No. of Bills
Sent Out


St. Croix'

St. John





$12, 329,055.62

4(42, 956. 00
1;,,846,734. 00
.,980,270. 00





No. of
Island Year Exemptions

No. of

Arn ount of
Ho.nestead Amount of Total in
Exemptions Modifications Taxes

St;Qho6has .1�961

St. Croix

St. John












$35,442.00 $55,442.00
23,628.88 47,903.19





St. Thomas, St. Croix, & St. John



Taxes Before


*Taxes to be

33 , 471.93

*See Act No. 768, Fourth Legislature, First Special Session; Act. No. 834,
Fourth Legislature, Regular Session; and Act No. 909, Fourth Legislature,
Sixth Special Session; approved June 20, 1961, March 15, 1962 and June 18,
;962, respectively.







The Virgin Islands Industrial Incentive Board provided for by Act No. 798, Third

Special Session of the Fourth Legislature of the Virgin Islands, approved November 3,

1961, effective January 1, 1962, as amended, is composed of the Government Secre-

tary and the Budget Director ex officio, Chairman and Secretary, respectively, and

five members appointed by the Governor with the advice and consent of the Legislature.

It is the administrative agency of the Industrial Incentive Program, subject to approval

by the Governor. The program is promoted by the Department of Commerce of the

Government of the Virgin Islands.

As amended the Law provides that "A person, firm, or corporation, engaged in

or about to engage in an industrial or business activity in theVirgin Islands, which

industrial or business activity, in the judgment of the Governor of the Virgin Islands

will promote the public interest by economic development of the Virgin Islands, and

which requires for its establishment or expansion the granting of the tax exemption and

subsidy benefits provided for in this subtitle, may apply for the same", if a person, is

a resident of the Virgin Islands, and if a corporation, created under the Laws of the

Virgin Islands, meets the requirements of Section 934 of the Internal Revenue Code

of 1954, as amended, and undertakes to invest in an industry or business in the Virgin


1. At least $15,000 for the processing, manufacturing, creation,

or production of articles, goods or commodities; or


2. At least $100, 000 in a business engaged in the ownership of

housing projects, factories, or industrial plants for the

occupancy of others; or

3. At least $100, 000 in a business engaged in the ownership or

operation of a hotel or guest house; or

4. At least $50, 000 in a business engaged in the ownership of a

television broadcasting station; or

5. At least $100, 000 in a business providing regularly scheduled

water transportation services between St. John and other areas

in the Virgin Islands of the United States; or

6. At least $200,000 in the establishment of a business engaged in

the ownership of a public funicular (aerial cable-car tramway

facility complex) including the construction or operation of the

same when engaged in by the owner.

The Law was amended to provide for the aerial cable-car by Act No. 924,

approved January 25, 1963, and for selective grants of benefits by Act No. 990,

approved March 26, 1963. A related Act No. 971, approved March 5, 1963, imposes

a production tax on woolen yard goods, of interest here because it applies to firms

granted tax exemption certificates.

The Law as amended provides that each person, firm or corporation granted a

certificate of tax exemption and subsidy benefits shall be exempt for a period of 10

years from the payment of the following taxes and fees:


1. All taxes on real property to the extent the same is utilized in

the tax exempt business;

2. All excise taxes on building materials, tools, pipes, pumps,

conveyor belts or other appliances and materials necessary

for use in the construction, alteration, reconstruction or ex-

tension of the plant or any extension thereof; and

3. All annual or specific license fees, except liquor license fees

and automobile license fees.

The subsidies cover refund of : 1. 90% of import duties and other taxes paid into

the Treasury of the Virgin Islands on raw materials brought into the Virgin Islands;

2. 75% of the income tax liability paid to the Government of the Virgin Islands during

the taxable year; and 3. 75% of the income tax paid to the Government on income

derived as dividends by stockholders who are residents.

During the fiscal year ending June 30, 1963, the program was subjected to

careful scrutiny by the Department of Commerce and other Federal Agencies, as

well as by the Congress as a result of the alleged effect of imports of woolen yard

goods from the Virgin Islands into the United States -- using the advantages under

Section 301 of the U. S. Tariff Act of 1930, as amended. The so-called Talmadge

Amendment, designed to modify -- if not repeal -- Section 301 was not acted upon

by the 87th Congress. In the meantime, an article appearing in the New York Daily

News which referred to the Virgin Islands as a "Pirate's Paradise" added greatly to

the agitation for drastic changes in Section 301 of the U. S. Tariff Act of 1930,


as amended.

As a result, the Governor of the Virgin Islands called several conferences to

explore means of meeting criticisms of the operation of the program.

These conferences began in November of 1962, and culminated in early April,

1963 when representatives of the Interior and Treasury Departments met with the

Governor and his staff, together with manufacturers in the Virgin Islands for a full

discussion of the problem of Section 301. Washington representatives were Assistant

Secretary Reed, and Assistant General Counsel Rains of the Treasury Department, and

Messrs Kirwan, dejongh, and niltss Harrison of the Department of the Interior who spent

several days here during April, gathering information and statistics on the Treasury

Department's proposal for amendment of Section 301.

Subsequently, this office coordinated the activities of a reactivated Trade

Advisory Eoard, the Industrial Incentive Foard, manufacturers and interested citizens.

This committee composed of members of the Trade Advisory Board, under the Chairman-

ship of Jerald Schneiderman and the Industrial Incentive Foard under Chairman Cyril E.

King, conducted an exhaustive study and presented "Joint Recommendations of the

Trade Advisory Board and the Industrial Incentive Eoard in Support of Section 301 of

the U. S. Tariff Act of 1930, As Amended." (See Appendix C)

,-bile the matter was not entirely settled during the fiscal year, much was done

as a result of the conferences held here and by the Governor in washington to more clear-

ly explain the situation existing in the Virgin Islands and the importance of the benefits

of Section 301, in promoting the economy, in keeping with the original intent of the



Further complicating the picture was the difficulty of obtaining Rules and Regula-

tions implementing Public Law 86-779, approved September 14, 1960, retroactive to

January 1, 1960, governing income tax liability incurred to the Government of the Virgin

Islands. These Rules and Regulations were finally published in the Federal Register

on November 9, 1962, thus enabling the Board to act on an accumulation of income tax

claims for the years 1960, 1961, and 1962, of tax exempt manufacturers in the Virgin


During the year the Board held 8 Public Hearings and 10 Executive Sessions. The

following is a comparison of activities of the Board for the fiscal years 1962 and 1963:

1963 1962 Increase Decrease

Executive Sessions 10 16 - 6
Public Hearings 8 9 - 1
Applications Heard 20 23 - 3
Permanent Certificates
Granted 9 14 - 5
Temporary and Conditional
Certificates Granted 4 14 - 10
Extension of Temporary
Certificates 6 14 - 8
Extension of Permanent
Certificates 1 1 - -
Disapproval of Tax Exemption
Applications 6 16 - 10
Grant of Temporary Permits
to exceed 25% alien em-
ployment 14 5 9 -
Selected Exemptions 2 - 2

It may be noted that the greater number of cases in fiscal year 1962 was due to

an accumulation of applications under the old Act No. 224, which expired December 31,



Claims Approved
For Payment 1963 1962 Increase Decrease

Customs Duties $405,431.51 $287,272.90 $118, 158.61 --
Dividend Claims 2,662.53 36,710.49 -- $34,047.96
Income Tax 150,487.61 566, 139.91 415, 652.30
Income Tax (P. L.86-779) $172,052.11 -- 172,052.11

As of June 30, 1963, there were 85 persons, firms or corporations holding

Certificates of Tax Exemption and Subsidies, comprised of 58 assorted small businesses

and 27 hotels and guest houses which employed an estimated 2, 250 employees with an

average payroll of over three million dollars. 'The table below gives a comparative

picture of the steady growth of the number of industries over the past six years:

1963 1962 1961 1958

Small Businesses 58 51 36 28

Hotels & Guest Houses 27 25 19 13
Totals 35 76 55 41

Fiscal Year 1958 showed that there were 41 Tax Exempt businesses in the Virgin


Despite the threat of possible revision of Section 301 of the U. S. Tariff Act of

1930, as amended, it is hoped that the infant boom in getting small businesses here will

increase by a conservative 30% and that employment will go over the 3, 000 mark.

kMany inquiries are being received, expressing interest in investing in the Virgin

Islands under the Industrial Incentive Program, if the full benefits in exemptions and

subsidies can be realized.


The foregoing partially represents what the Government has been doing to put

the economy of these Virgin Islands on a firm base which is adequate for their support

and greater well-being of their people.

In this connection preservation of Section 301 of the Tariff Act in its present

form is vitally important to any projection and eventual realization of the fullest

economic potential of these Virgin Islands.




Relating to the Control of Alcoholic Beverages - Labeling of Distilled Spirits

Section 2-19, Title 8 of the Virgin Islands Rules and Regulations, Chapter 1,

Subchapter 2, Division 1, relating to the penalties for violations of labeling require-

ments, is hereby amended to read as follows:

g 2-19 Remedies and Penalties for Violations

(a) Any violation of the provisions of this division of this subchap-

ter shall be punishable by a fine not exceeding $200 or by imprisonment not

exceeding one year, or both.

(b) In addition to the penalties for violation of these regulations pro-

vided in subsection (a) of this section, dny barrel, bottle, cask or other

package containing alcoholic beverages which is involved in any violation

of the provisions of this division shall, with its contents, be subject to for-

feiture to the Government of the Virgin Islands.

(c) The Board of Control of Alcoholic Beverages, through any agent

or representative designated by it for such purpose, may enter upon and

shall have access to all parts of any business premises where liquor is

made, kept or stored for the purpose of making inspections under this

division of this subchapter. Such agent or representative shall have the

power to seize, remove and impound any liquors which he has reasonable

cause to believe to be made, kept or stored in violation of the provisions

of Chapter 1, Title 8 of the Virgin Islands Code and regulations issued


APPENDIX A- page 2

(d) The Board shall keep in safe storage any such liquor seized,

removed or impounded for a period of at least ten (10) days, at the end

of which period, or (if a petition has been filed pursuant to subsection (e)

of this section) upon final determination by a court denying recovery of

the same, the liquor may be disposed of as hereinafter provided in sub-

section (f) of this section.

(e) The owner or any other person from whom liquor is seized,

removed or impounded under the provisions of this section may, within

a period of ten (10) days from the date of such seizure, removal or

impounding, file a petition against the Board of Control of Alcoholic

Beverages for the recovery of the same in a Municipal Court when the

value of the liquor so seized, removed or impounded does not exceed

$1,000, or in the District Court of the Virgin Islands when the value

of such liquor exceeds $1, 000. The filing of such action shall operate

to stay any further proceedings by the Board for the disposition of the

liquor and the Board shall keep the same in safe storage pending final

determination of the petition by the Court. The Court shall advance

the hearing on such a petition. If, after hearing the evidence of the

parties the Court shall find that the seizure, removal or impounding

was properly made in accordance with law, it shall deny the petition

and order the petitioner to pay all expenses of removal and storage of

the liquor up to the date of such order. If the Court shall find the

seizure, removal or impounding to be unauthorized then it shall order

APPENDIX A - page 3

the liquor returned to the petitioner at the place from which seized or

removed and at the expense of the Board. If no petition is filed, all

expenses of removal, and storage (for the required 10-day period) shall

be borne by the owner or other person from whom the liquor has been

seized, removed or impounded.

(f) Any liquor seized, removed and impounded by the Board under

subsection (c) of this. section shall be subject to disposition by the Board

in any of the following manners:

1. By destruction, or

2. By delivery to a governmental agency having a need

for the same for medicinal, scientific or any other

official purposes for which appropriated funds may

be expended by such governmental agency, or

3. By delivery as a gift to an eleemosynary institution

which in the Board's opinion has a need for the same,

for use by such institution for medicinal or scientific


(g) Nothing contained in this section shall be deemed to affect the

authority of the Board to remit or mitigate the forfeiture of any liquors

seized, removed or impounded pursuant to subsection (c) of this section.

(h) The penalties of fine, imprisonment or forfeiture provided

for in this section shall be in addition to any other penalties or remedies

APPENDIX A - page 4

that may be imposed or may be available to the Government of the

Virgin Islands in accordance with law.

Statutory authority: 8 V.I.C. sections 2, 18

Cyril E. King, Government Secretary
Percy de Jongh, Commissioner of Finance
Stanley A. Farrelly, Member
Charles C. Hay, Member
Axel Schade, Member

/s/ Cyril E. King
Cyril E. King, Chairman


/s/ Percy de Jongh
Percy de Jongh, Secretary

APPROVED: February 7, 1963

/s/ Ralph M. Paiewonsky
Ralph M. Paiewonsky
Governor of the Virgin Islands


Excerpts from Memorandum Regarding
Change in Procedure With Respect To
Referral of Deeds to be Recorded

February 5, 1963

The procedure outlined above and its attendant problems have been the

subject of exceptions taken by the Comptroller in a number of audit reports.

Consequently, with this in mind, and in order to speed up the completion of the

process of recording documents, to insure the expeditious collection of all fees,

and relieve the Government of the responsibility of holding documents indefinitely,

the following procedure was agreed upon in consultation with your Department:

(1) All deeds to be recorded will first be presented

to the Public Works Department for appropriate


(2) The Public Works Department, after taking appro-

priate action will return the document to the indi-

vidual together with the original copy of bill, if

any, for such services as were rendered.

(3) A carbon copy of said bill will be forwarded to

the Government Secretary.

(4) The document should next be presented to the

Recorder of Deeds together with the original

copy of the bill, if any, from the Department

of Public Works.

APPENDIX B - page 2

(5) After calculating, billing, and collecting all

fees, including those of the Department of

Public Works, the document in question will

then--and only then--be recorded.

(6) The Government Secretary will collect all fees,

including such fees as are due for services per-

formed by the Department of Public Works and

as evidenced by copy of bill from said Depart-


Cyril E. King
Government Secretary




The Virgin Islands economy and its serious imbalance has been the subject

of voluminous reports over the past three decades by governmental and private

agencies. Moreover, numerous Congressional Investigating Committees have held

hearings and submitted reports on the declining sugar economy of St. Croix and the

millions in Federal assistance granted to the Virgin Islands Government in the past

when local revenues were insufficient to meet budgetary operations.

In an effort to become more self-sustaining, the development of tourism

was initiated in 1950 and has become the principal industry. While the Islands do

not display one-industry characteristics to the same degree as are found in some

of the depressed labor surplus areas in continental United States, it is true that

aside from the sugar and rum industries, one-industry characteristics are begin-

ning to develop around the present emphasis on tourism. This industry although

lucrative is affected by fluctuations in Stateside economy, world tension, airline

strikes and capricious changes in travel patterns. Thus, it is unrealistic to base

economic development solely on an industry which is so unstable. In view of the

foregoing, it is considered wise for the Virgin Islands to seek further economic

diversification through the encouragement of small manufactures.

Moreover, although the Islands were not included in the Congressional Act

for International Development (1950), the same purposes spelled out in that Act

APPENDIX C - page 2

are applicable to this offshore territory, viz: that it is the policy of the United

States to aid the efforts of the peoples of economically underdeveloped areas to

develop their resources and improve their working and living conditions by methods

which contribute to raising standards of living, creating new sources of wealth, in-

creasing productivity and expanding purchasing power.

Benefits of Section 301 to the Virgin Islands

Prior to the passage of the Revised Organic Act of 1954, the U. S. Tariff

Act of 1930 provided only for a 20% foreign materials content in the value of Virgin

Islands manufactured articles which could enter the U. S. mainland duty-free.

This percentage was so low that it discouraged industrial development. Moreover,

even those small industries which ventured to expand in the Virgin Islands were

forced to liquidate. Business failures occurred in a number of instances because

the cost of imported raw materials exceeded customs allowable 20% of the final

value, thereby making the items dutiable.

Benefits Under the Revised Section 301 Favorable to Industry

In an effort to help the Islands to become more self-sustaining the Congress

of the United States on October i, 1954 passed a new duty-free amendment to

Section 301 of the U. S. Tariff Act (Public Law 517-TD-53599) raising the 20%

foreign material allowance to 50%. This was a major step in the encouragement

of small manufacturers to the Islands.

The Basic Advantage Under Section 301

The major attraction for a factory location in the Virgin Islands is the

fact that the entrepreneur can secure raw materials of foreign origin, import

APPENDIX C - page 3

them into the Virgin Islands duty-free (in the case of tax-exempt firms) and after

processing, the realized savings can be retained through duty-free export to the

United States.

Benefits Under Section 301 Grossly Overestimated

The advantage which local manufacturers enjoy under Section 301 of the

U. S. Tariff Act is grossly overestimated.

Section 301 is not an open door to easy profits. Because of the size of the

Islands, air and ocean freight rates are excessive as compared to rates enjoyed

by the neighboring Commonwealth of Puerto Rico. Ocean freight rates for the

Virgin Islands are established by the U. S. Maritime Commission. Moreover,

an across-the-board increase in freight rates for this area is under consideration.

In addition to excessive freight rates, the manufacturer also encounters high power

and water rates and a lag in the arrival of raw materials. It takes only one shipping

strike to cripple the industrial effort because of the distance from sources of raw


It is also important to mention that the loopholes which formerly existed

under Section 301 have virtually been eliminated. The new highly organized and

competent Customs Inspection now makes it virtually impossible for a manufacturer

to obtain an advantage by subterfuge. All manufacturers operating under 301 are

required to keep complete and accurate records of cost of production of the items

manufactured. Thus Customs is able to verify whether the cost of foreign raw

materials is within the allowable 50 percent of the total value of the items as

provided by law.

APPENDIX C - page 4

Economic Advantages Under 301

There is no question that Section 301 is beneficial to the local economy in

a number of ways. The benefits which accrue may be classified as direct and


The Direct Benefits are:

It has attracted small self-sustaining industries of a diversified nature

which have accomplished the following:

1. Trained a segment of the labor force in manufacturing skills, in con-

trast to employment in the service ir.'.ustries (hotels and guesthouses).

The training program is to be greatly expanded by the Division of

Vocational Education.

2. Upgraded real wages for an appreciable number of employees which in

turn has resulted in an improved standard of living for many families

throughout the Virgin Islands.

3. Increased purchasing power and resulting rise in bank deposits have

stimulated business activity.

4. Enabled the Islands to become more self-reliant, thereby reducing

their dependence on Federal assistance.

5. Increased Governmental revenues resulting from higher gross

incomes will enable the Islands to build new schools, hospitals,

roads and other sorely needed public facilities.

As of September 1962, there were 19 industries engaged in the manufacture

of products for export to the U. S. mainland, exclusive of rum, sugar and bay rum.

APPENDIX C - page 5

These industries employ approximately 750 persons and have an annual

payroll of $1.8 million. Total capital investment approximates $5 million.

Indirect Benefits

In addition to the above-mentioned direct benefits, there are certain indirect

benefits which the Islands derive from the establishment of small manufactures made

possible by Section 301:

1. Hotels, gift shops and other business concerns have year-round

income from company executives and other personnel during their

stay in the Islands. The benefits of a more balanced year-round

income are obvious.

2. Income from these new and visiting personnel goes to local

employees as salaries and their needs create greater employ-

ment in shops and hotels. The money, in turn, passes back

to local merchants engaged in foodstuffs and general supplies.

A substantial portion of this income is used to purchase

more goods from U. S. mainland suppliers.

3. Higher wages received by factory workers result in increased

consumer spending and consequent improving of living

standards, a prime aim of the Virgin Islands Government.

4. New construction -- of homes as well as industrial projects

is stimulated. More building materials and supplies are

required. More business for shippers, seamen and marine

insurance companies is the result.

APPENDIX C - page 6

5. Business depends on communications. Telephone, cable and mail

messages increase. Air cargo business is stimulated. Taxis, trucking

and all ground transportation have a larger business potential.


It is very important to recognize at the outset that Section 301 was created

by Congressional action and, therefore, constitutes Federal legislation. While the

Insular Government is limited in its jurisdiction, it is nevertheless considered wise

to propose certain amendments designed to eliminate possible loopholes and strengthen

the Incentive Program.

After giving due and careful consideration to the problem, the following

recommendations are proposed both at the Federal and Local levels in an effort

to strengthen existing legislation for industrial promotion in the Virgin Islands:

Federal Level

1. It is recommended that a clear-cut definition of what constitutes a

manufacture be written into Section 301. An applicant then would be able to ascer-

tain at a glance whether his proposed method of operation constitutes a manufacture

or not. It would eliminate questionable practices.

2. That enabling regulations be established to facilitate compliance with

Section 301. At present no such regulation exist. The regulations should be uni-

form for all manufactures, thus avoiding any semblance of preferential treatment.

Recommendations at the Local Level

The Insular Government should provide an Industrial Inspection Officer

for the purpose of policing compliance of industries with the provisions of the

Industrial Incentive Act. These include, but are not limited to:

APPENDIX C - page 7

1. Determination of the ratio of resident employees to aliens;

and the expiration dates for bonded aliens.

2. The amount of capital invested in the manufacturing concern in

compliance with the requirements of the Industrial Incentive Act.

3. Checking on the actual amount of subsidy payment which the

concern is entitled to in the case of Income Taxes filed and

duty paid on imports.

4. Checking on concerns which have been granted conditional


5. The Insular Government should also set up the proper machinery

for screening new applicants for tax exemption to determine whe-

ther their operation would be economically beneficial to the

Virgin Islands in accordance with existing laws. This would

facilitate the screening out of those industries which are consi-

dered unsuited to operations in the Virgin Islands; those which

should be deferred pending the improvement of conditions; and

those which should be given immediate consideration. In

addition, the Tax Incentive Board should establish revised

rules and regulations for the granting of tax exemption and sub-

sidies. For example, one of these rules should be that no

applicant operating under Section 301 will be granted tax

exemption and subsidies unless his manufacturing process has

first been approved by letter from the Bureau of Customs in

APPENDIX C - page 8

Washington; and (2) that the Virgin Islands must derive substantial

benefit from said operations. In this respect, the relationship of

labor cost to final selling price should be spelled out.


If these Islands are to become more self-reliant and enjoy an improve

standard of living consistent with the American way of life, then the present economy

must be stimulated by the establishment of small manufactures. This attainment is

impossible without the duty-free benefits offered by Section 301 to compensate for

high ocean freight rates on a two-way basis, high power and water rates and lack

of basic natural resources. In addition, the Industrial Incentive Program of the

Islands is an excellent companion device to encourage an industrial program.

In order to achieve the goals set forth in the overall Economic Development

Plan for the Virgin Islands it is vitally important that Section 301 of the U. S. Tariff

Act be maintained.

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