ANNUAL REPORT

OFFICE OF THE GOVERNMENT SECRETARY

FISCAL YEAR 1965

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CYRIL E. KING
GOVERNMENT SECRETARY

UNIVERSITY
OF FLORIDA
LIBRARIES

El-

0 ANNUAL REPORT

OFFICE OF THE GOVERNMENT SECRETARY
Fiscal Year 1965

8

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SCyril E. King
a Government Secretary

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TABLE OF CONTENTS

Page

Letter of Transmittal i

Foreword ii

Scope v

Administration

Corporations I

Licenses 3

Trade Names 4

Insurance 4

Board of Control of Alcoholic Beverages 6

Passports 8

Notaries Public 9

Ministerial Licenses 12

Trademarks and Patents 12

Legislation 13

Banking Board of the Virgin Islands 14

Sanitary Facilities 16

Recorder of Deeds 17

St. Thomas 17

St. Croix 20

Office of the Tax Assessor 21

Virgin Islands Industrial Incentive Board 26

Uniform Commercial Code 28

Miscellaneous 29

Appendix A

GOVERNMENT OF
THE VIRGIN ISLANDS OF THE UNITED STA ES

Office of the Government Secretary
Charlotte Amalie, St. Thomas 00802

September 30, 1965

Honorable Ralph M. Paiewonsky
Governor of the Virgin Islands
Charlotte Amalie, St. Thomas
Virgin Islands of the United States

Dear Governor Paiewonsky:

In accordance with your memorandum of May 12, 1965,

transmitted herewith is the Annual Report of the Office of

the Government Secretary for the Fiscal Year 1965.

Sincerely,

Cyril E. King
Government Secretary

FORE 'ORD

Summary of Activities
Office of the Government Secretary
Fiscal Year 1965

The business mood in the Virgin Islands today continues to be one of optimism.

This optimism is reflected in the continuing increase in activities in the various areas

of responsibility under the jurisdiction of the Office of the Government Secretary.

During fiscal year 1965 this continued upward trend in the activities of the varied

functions assigend to the Office of the Government Secretary by the Organic Act and the

Virgin Islands Code reflected graphically the extent of the economic, social, and cultural

development which these Virgin Islands are undergoing.

Despite limitations imposed by the urgent need for revision and/or amendment of

laws governing the activities of this office in connection with corporations, licensing,

banking, and insurance, all areas of responsibility including the foregoing as well as

real property assessment and taxation, recording of documents, passports, trademarks

and patents, experienced notable increases in activities. This office continues to stress

the importance of these revisions to the enhancement of public convenience and service.

Funds for these proposed revisions were requested during the Regular Session of the

Sixth Legislature and again at the succeeding two special sessions -- but said appropria-

tion requests were disapproved by the Legislature.

Rigid policing and enforcement measures continued during fiscal year 1965 in the

areas of licensing of businesses, proper labelling of alcoholic beverages imported into

the Virgin Islands, registration of trade names and in corporate activity. The expansion

of laboratory facilities of the Alcohol Control Board made possible continued and increased

surveillance of alcohol products manufactured in the Virgin Islands thus contributing

toward helping to maintain high quality Virgin Islands rums. In the area of real property

taxes a reassessment program is now underway which is expected to result in a long

overdue upward adjustment in real property taxes. In this connection, reports from

the Office of the Director of the Budget suggest an urgent need for more rigid enforce-

ment of real property tax collections by the Department of Finance.

Another indication of the continued upward economic trend was reflected in the

interest displayed by banking institutions in obtaining authority to conduct business in

the Virgin Islands. Applications are now pending from the Caribbean Bank and Trust

Corporation -- a recently organized group of mostly Virgin Islands businessmen *- and

Parclays Bank of London.

Act No. 1415 passed by the Legislature on March 10, 1965, and approved by the

Governor on April 5, 1965, transferred jurisdiction of the Industrial Incentive Board

from the Office of the Government Secretary to the Department of Commerce despite

the vigorous written protest of the Government Secretary challenging the alleged findings

of the Legislative Committee assigned to investigate the operation of the Industrial

Incentive Law and upon which findings the recommendation for this transfer is said to

have been based. As a matter of fact and as was pointed out in the "written protest"

referred to above, with the Legislature finally agreeing to make funds available for the

employment of an Executive Director, the Industrial Incentive Board was able to cope

with the increased activity both on the part of firms enjoying tax exemption and subsidy

and those seeking said benefits during the fiscal year.

At the suggestion of the Office of the Government Secretary action was initiated to

reactivate the Sanitary Facilities Loan Program, using funds repaid to the Revolving

Sanitary Facilities Fund. This program had been inactive for several months due to

the depletion of the original appropriation.

Act No. 1299, approved February 19, 1965, created a Uniform Commercial Code

for the Virgin Islands to become effective July 1, 1965, and placed responsibility for its

administration with the Office of the Government Secretary. No appropriation was pro-

vided for the administration of this Act, therefore, supplementary appropriation request

was submitted to the June Special Session of the Legislature.

Finally, despite the nationwide "See America First" program advocated by President

Johnson the number of passport applications filed with this office showed a marked in-

crease; fees collected for the various services performed -- insurance, recording of

documents, licensing, passports, notaries public, trademarks, corporate activities --

reflected increases; and the projected taxes on real property are expected to reach the

one million dollar mark for the calendar year 1965.

A detailed report of each individual agency of the Office of the Government Secretary

follows.

SCOPE

Under the Organic Act of the Virgin Islands, the Government Secretary is the

Custodian of the Seal of the Virgin Islands; is required to record and preserve the laws

enacted by the Legislature. In the absence of the Governor, the Government Secretary

is Acting Governor of the Virgin Islands.

Pursuant to Title 3, Chapter 3 of the Virgin Islands Code, the Government Secretary,

in addition to the other powers and duties conferred upon him, has supervision over the

assessment of real property taxes, jurisdiction over the filing and recording of deeds

and other records of real property transactions, and all other instruments required by

law to be filed or recorded, as well as responsibility for administration of the Uniform

Commercial Code.

He is the Commissioner of Insurance and as such must license and supervise

insurance companies and agents operating in the Virgin Islands. As Chief Licensing

Officer for the Government, the Government Secretary is responsible for issuing all

licenses (other than medical licenses) for businesses and occupations prescribed by

Title 27 of the Virgin Islands Code.

Under Title 13 of the Virgin Islands Code the Government Secretary is also charged

with the duty of licensing corporations and the processing of corporate documents. He

is also the Registrar of Trademarks and trade names. In all of these licensing functions,

the Government Secretary must assess and collect all licensing and filing fees, franchise

taxes, etc., prescribed by the Virgin Islands Code.

The Government Secretary is also Chairman of the Board of Tax Review, the

Board of Control of Alcoholic Beverages and the Banking Board. The administrative

vi

responsibility for the functioning of these boards is also a part of the responsibility of

the Government Secretary's Office.

ANNUAL REPORT

OFFICE OF THE GOVERNMENT SECRETARY
FISCAL YEAR 1965

CORPORATIONS

During fiscal year 1965 the number of corporations doing business in the Virgin

Islands reached the 1000 mark as compared with 938 at the end of fiscal year 1964. Of

these 829 are domestic, 123 foreign, and 48 are non-profit corporations.

This fiscal year witnessed a continuation of the rigid policing efforts on the part of

this office urging corporations to meet their legal obligations, with special attention to

the filing of required reports and payment of franchise taxes. These diligent efforts

resulted in the dissolution of 143 corporations primarily for the non-payment of franchise

taxes.

A particularly vexing and time-consuming problem both for the corporations and

the Office of the Government Secretary concerns the reporting and payment of franchise

taxes and the filing of annual reports by corporations. Title 13 of the Virgin Islands

Code requires the filing of annual reports and payment of franchise taxes on April 15

and June 30, respectively. Administrative problems connected with these corporate

activities could be minimized by passage of legislation which would coincide these due

dates for annual reports and payment of franchise taxes.

The results of the continuing efforts of this office to enforce compliance with the

corporate laws are reflected in the following comparative tables for the past five

fiscal years:

COMPARATIVE TABLE-FRAN(HISE TAXES & CORPORATE FEES

1961

1962

1963

1964

1965

Filing Fees, etc. $ 11,874.49 $12,458.34 $13,179.00 $15,196.17 $14,561.17
Franchise Taxes 1
incl. Penalties $16,463.50 $20,127.56 $38,098.75 $35,770.92 $36,288.80

COMPARATIVE CHART FRANCHISE TAXES AND CORPORATE FEES

1961
Foreign Domestic

Certificates of Incor-
poration Issued
Certificates of Amend-
ments Issued
Dissolution
Withdrawal
Mergers
Surrender of Cor-
porate Rights

14 115

1962
Foreign Domestic

17 166

1963
Foreign Domestic

24 173

1964
Foreign Domestic

1965
Foreign Domestic

Certificate of Incor-
poration Issued
Certificates of Amend-
ment Issued
Dissolutions
Withdrawals
Mergers
Surrender of Cor-
porate Rights

19 173

33 173

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

--

r-

--

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LICENSING OF BUSINESSES AND OCCUPATIONS

Continuing increases in numbers and varieties of business and occupational licenses

issued during fiscal year 1965 further reflect the degree of expansion of the economy of

the Virgin Islands.

The coordinated efforts of this office, the Office of the Attorney General and the

appointment of an Enforcement Officer under the jurisdiction of the Department of Public

Safety resulted in increased effectiveness in the enforcement of the licensing laws.

The Planning Board provided this office with a zoning map of the Island of St. Thomas

in order to facilitate the checking of original license applications for compliance with the

zoning laws. In St. Croix this function is performed by the Department of Public Works.

Surveys were conducted during the fiscal year to determine the degree of compliance

by businesses with requirements as to proper licenses and display of same in accordance

with the provisions of the Virgin Islands Code. During fiscal year 1965 a total of 3,735

licenses were issued and a total of $172,685.68 collected in fees, as compared with 3,496

licenses issued and $150,232.50 collected in fees for the preceding fiscal year.

The following charts show a comparison of fees collected and licenses issued over

the past five fiscal years:

LICENSES ISSUED AND FEES COLLECTED

1961 1962 1963

District Licenses Fees Licenses Fees Licenses Fees

St. Thomas
& St. John 1393 $51,689.00 1514 $ 63,480.00 1716 $101,592.50
St. Croix 974 34,659.00 922 38,474.00 1034 39, 176.00
Totals 2367 $86,348.00 2436 $101,954.00 2750 $140,768.50
= = ---- ~ -ii1-

1964 1965

District Licenses Fees Licenses Fees

St. Thomas & St. John 2010 $117,421.50 2115 $ 130,781.68
St. Croix 1486 32,811.00 1620 42, 084.00
Totals 3496 $150,232.50 3735 $172,865.68

TRADE NAMES

Governmental control of the use of trade names by means of a system of registration

is new to the Virgin Islands, having resulted from the enactment of Act No. 923, approved

January 25, 1963. As the number and variety of businesses increase the need for the

registration of trade names in order to avoid the use of identical or similar names by two

or more businesses and thus provide protection to said businesses becomes more apparent.

In order to facilitate enforcement of this law, all applicants for business licenses

Curing the fiscal year just ended whose application indicated a busniess name other than

iSat of the applicant were advised of the necessity of registering trade names and asked

to complete forms made available by this office for this purpose.

During fiscal year 1965 two hundred twenty-four trade names were registered bring-

ing the total number of registered names to 654. Registration fees collected during fiscal

year 1965 amounted to $1120 as compared with $1, 695 during fiscal year 1964, and $860

the previous year.

INSURANCE

The urgent need for the revision of the insurance laws of the Virgin Islands continues

to be the most perplexing problem in administering and policing the activities of insurance

companies authorized to do business in the Virgin Islands. The continuing rise not only

in the number of companies being admitted to conduct insurance business in the Virgin

Islands but also in the number of companies indicating an interest in securing such

admission, along with the responsibility of this office for the protection of the insured

increases the urgency of the need for such revision. Special requests have been made

for appropriations to cover the employment of a consultant firm to undertake this special

project. Unfortunately, however, funds for this purpose were not appropriated.

As a means of providing added protection for insurance policy holders in the Virgin

Islands and as a result of past experience this office continues to require all insurance

companies applying to do business in the Virgin Islands to post bonds and/or securities

in the form of cash deposit or United States Treasury Bonds of usually $50,000 to $75, 000,

depending on the type of insurance to be written. Such securities are in turn deposited

with one of the local banks -- subject to the control of the Insurance Commissioner.

Meanwhile, insurance business in the Virgin Islands continued its rapid growth

during fiscal year 1965. Gross premiums written during the year totalled $2, 761,496.82

as compared with $2,076,857.59 the previous year. Seventy-eight insurance companies,

including 11 new registrants were authorized to conduct business : during fiscal year 1965

as compared with 68 the year before when there were 6 new registrants. Sixty-six

insurance agents, 51 insurance solicitors, and one insurance broker were issued licenses

for a total of 118. Of this total 6 licenses were issued to apprentice agents and 29 to

apprentice solicitors.

Following is a comparative table and fees collected from insurance activities over

the past five fiscal years.

1961 1962

Certificates of Authority $ 1,951.00 $3,076,00 $
Agents Licenses 2,111.00 2,821.86
Brokers Licenses 100.00
Solicitors Licenses -- 200.00
Gross Premium Taxes 12,316.87 12,784.86 1
Filing Annual Statements 126.00 151.00
Filing Power of Attorney 45.00 145.00
Sale of Insurance Laws 51.00 61.00

$16,700.87 $19,239.72 $2

BOARD OF CONTROL OF ALCOHOLIC BEVERAGES

1963 1964 1965

3,187.50 $2,747.50 $3,412,50
3,068.22 2,870.00 3,047.50
S.- 100.00
827.53 1,460.00 1,117.52
5,015.37 18,769,49 24,892.43
167.50 172.50 190.00
90.00 115.00 70.00
44.00 18.00 28.00

2,400.12 $26,152.49 $32,857.95

=~ ----~R CeI-- ~ -- ---

The Board of Control of Alcoholic Beverages prescribes, administers, and enforces

regulations pertaining to the manufacture and sale of alcoholic beverages and articles

containing denatured spirits. Of primary importance to the Board at present is the attain-

ment and maintenance of the best quality Virgin Islands Rums.

The laboratory facilities of the Board were expanded during fiscal year 1965 to

.cilitate performance of the necessary analyses and ensure continuous surveillance of

the industry's products.

In addition, arrangements were made for the Director of the Board to consult with

officials of the Alcohol and Tobacco Tax Division of the United States Treasury Department

in v;ashington, D. C., with a view toward compiling information which might have been

helpful in suggesting a solution to the impasse reached by the two major distilleries over

the question of the best method of attaining the best possible quality product. One manu-

facturer contends the best possible rum can be produced only through proper aging of good

distillates in wooden containers while the other claims that maturation of rum by air

--

treatment is a more modern method which produces an equally good or better product.

As Chairman of the Alcohol Control A1oard and member of the Virgin Islands Rum

Council, the Government Secretary offered for consideration at the last meeting of the

Rum Council a proposal designed to ensure what he hoped would have been mutually

agreeable and acceptable minimum standards for a "good distillate". This proposal

stemmed from: (1) the belief that the first -- and probably the most important -- step

in assuring good quality rum is to produce a good distillate and (2) that no amount or

method of aging or maturation could produce a good rum -- if the distillate is of poor

or inferior quality.

A special committee has been appointed to study and further discuss the proposed

formula with technicians in the field.

Fiscal year 1965 produced considerable gain in alcoholic beverages shipped from

the Virgin Islands to the United States -- approximately 1, 100, 000 proof gallons.

During this period there were no major changes within the industry, licensees remained

as follows:

Distillers License

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

Manufacturers Liquor License

1. Frugal :z Co., Inc., (St. Croix, V. I.)
2. E. Delatour et Cie., (St. Croix, V.I.)
3. Sunbilt Tropical Fruit Products, Ltd. (St. Thomas, V.I.)

Manufacturers of Denatured Alcohol

1. Virgin Islands Rum Industries (St. Croix, V. I.)

Manufacturers of Articles Containing renatured Spirits

1. Huntley Ltd. (St. Thomas, V.I.)
2. Virgin Islands Perfume Corporation (St. Thomas, V.I.)
3. V. I. Rum Industries Ltd. DIA
V. I. Pay Rum Manufacturing Co. (St. Croix, V.I.)
4. Warner Lambert Caribbean Corporation DPA
West Indies Eay Co. (St. Thomas, V. I.)

The following charts reflect the growth of the industry over the past five fiscal years:

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

Year St. Thomas St. Croix

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

Alcoholic i:.everages Exported to the United States
(in proof gallons for calendar year)

Item 1960 1961 1962 1963 1964

Rum 701,124 693, 119 825, 387 735,077 1,230,257
Whiskey 114, 357 123, 434 4, 343 2,568 2, 160
Cordials, Liqueurs, 9, 236 5,080 4, 381 28,571 17,796
Total Proof Gals. 824,717 821,633 834,121 766,216 1,250,213

Total Proof Gallons of Alcoholic beverages shipped from January through June of 1965
were 519,220.

Perfumery, including Pay Rum, Toilet Water Cosmetics

1960 1961 1962 1963 1964

Value (Dollars) 363, 358 258, 072 528, 230 602, 328 887, 125

PASSPORTS

Despite President Johnson's plea to "See America First" the number of passports

issued for travel to foreign areas increased during the past fiscal year.

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Total passports issued during fiscal year 1965 numbered 324 as compared with 273

the year before.

-The following table shows the increase in passport activity for fiscal years 1961

through 1965:

1961 1962 1963 1964 1965

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

252 237 341 399 462

Total fees collected for this activity during fiscal year 1965 amounted to $3, 621.00.

Of this amount $68 represents fees which were collected during the last month of fiscal

year 1964 for which passports were subsequently issued in fiscal year 1965.

Following is a comparative table of fees collected for passports over the past five

fiscal years:

1961 '1962 1963 !964 1965

Total Fees Collected $1,994.00 $1,931.00 $2, 762.00 $3,115.00 $3,621.00

In order to improve the efficient implementation of passport procedures in accordance

with regulations issued by the U. S. r department of State, arrangements were made to

enroll the passport adjudicator in this office in a correspondence course concerning

nationality law and procedures.

NOTARIES PUBLIC

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

the Office of the Covernment Secretary. rith the enactment of legislation during the

1964 regular session the number of notaries public commissions which would be issued

-10-

in the Virgin Islands was increased from 25 to 45 thus enabling a larger number of

interested persons to apply for commissions. Act No. 1485, approved July 2, 1965,

further increased the number to 60.

At the end of fiscal year 1965 the total number of notaries public appointed amounted

to 41, with two applications pending and two vacancies.

There is every indication that consideration will soon have to be given to the question

of possibly increasing still further the number of notaries public which can be commis-

sioned in order to accommodate the increasing number of applicants and interested

persons as reflected by the following tables for the past five fiscal years:

Fiscal ear 1961

In Effect Total
June 30, Issued June 30 Renewed
1960 1961 Cancelled 1961 in 1961

blic Notaries, (St. Croix) 8 1 4 5 -
blic Notaries (St. Thomas) 11 1 10 -
)vernment Notaries (St. Croix) 5 5 -
vertnment Notaries(St.Thomas) 16 1 6 11 -

Fees Collected for Commissions
and renewals
Total Fees

Fiscal Year 1962

In Effect
June 30, Issued
1961 1962 Cancelled

Public Notaries (St. Croix) 5 1 -
Public Notaries (St. Thomas) 10 4 1
Government Notaries (St. Croix) 5 3 1
Government Notaries (St. Thomas) 11 3 1
Fees Collected for Commissions
and renewals
Total Fees

$135.00

$135.00

Total
June 30 Renewed
1962 in 1962

6 1
13 1
7
13

$175.00
$175.00

Pu
G;
3,.
.r..

-11-

Fiscal Year 1963

In Effect Total
June 30, Issued June 30, Renewed
1963 1963 Cancelled 1963 in 1963

Public Notaries (St. Croix) 7 4 11 1
Public Notaries (St. Thomas) 11 3 14 2
Government Notaries (St. Croix) 7 -- 7
Government Notaries (St. Thomas) 14 4 5 13 --
Fees Collected for Commissions
and renewals $245.00
Total Fees $245.00

Fiscal "ear 1964

In Effect Total
June 30, Issued June 30, Renewed
1963 1964 Cancelled 1964 in 1964

Public Notaries (St. Croix) 11 3 -- 14 6
'.'blic Notaries (St. Thomas) 14 8 1 21
government t Notaries (St. Croix) 7 1 -- 8
Government Notaries (St. Thomas) 13 4 2 15
Fees Collected for Commissions
and renewals $480.00
Total Fees $480.00

Fiscal Year 1965

In Effect Total
June 30, Issued June 30, Renewed
1964 1965 Cancelled 1965 in 1965

Public Notaries (St. Croix) 14 5 1 18 --
Public Notaries (St. Thomas) 21 1 -- 22
Government Notaries (St. Croix) 8 8
Government Notaries (St. Thomas) 15 1 1 15
Fees Collected from Commissions 2
and renewals $365.00
Total Fees $365.00

2. Included in this figure is an amount of $40.00 which represents two commission fees
paid in fiscal year 1965, but which commissions are being held in abeyance pending receipt
of necessary documents.

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MINISTERIAL LICENSES

There were 20 letters of authority issued to ministers of the gospel during the

fiscal year 1965 permitting them to perform civil-religious ceremonies in the Virgin

Islands. This was an increase of 6 over the number of such authorizations issued for

fiscal year 1964. The following table reflects the number of such letters issued during

the last five fiscal years:

1961 1962 1963 1964 1965

11 19 7 14 20

TRADEMARKS AND PATENTS

Registration of all trademarks and patents in the Virgin Islands continues to be pro-

cessed by the Office of the Government Secretary in conformity with rules and regulations

promulgated by the Governor of the Virgin Islands on June 11, 1959. Total fees collected

for this activity during the current fiscal year amounted to $1,247.50. Of this amount

$60.00 represents fees collected, the documents for which however were not completed

and hence actual registration will be carried over to next fiscal year. In addition, of the

18 assignments processed during fiscal year 1965, eight represented registrations for

which applicable fees were collected during fiscal year 1964.

The following tables cover activities in this area over the past five fiscal years:

1961 1962 1963 1964 1965
Original Registrations 12 24 24 19 35
Renewals 15 7 4 13 13
Assignments 6 8 6 18
Changes of Name 2 6 2 4 2
Mergers 4 20 2 -- 2
Design Patents 1 1 1
Total Actions 39 66 39 37 69

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Fees Collected

1961 1962 1963 1964 1965

Total Fees $810.00 $1,032.50 $1,005.00 $907.50 $3,621.00

LEGISLATION

In accordance with the provisions of the Revised Organic Act of 1954 and the Virgin

Islands Code, the Office of the Government Secretary continued to discharge its responsi-

bilatim ror supplying Equity 1ublislhia Corporation with all documents necessary for the

compilation and publication of all legal documents of the Government of the Virgin Islands.

Material was sent for publication in the Supplements td the Virgin Islands Code, Virgin

Islands Rules & Regulations, Virgin Islands Register, Virgin Islands Session Laws, and

lp Laws of the Virgin Islands.

In addition, all bills passed by the Legislature of the Virgin Islands and approved

by the Governor are assigned act and resolution numbers, distributed to all government

departments and other interested officials, and printed in slip law form for filing in and

distribution by the Office of the Government Secretary.

The following table shows the number of acts and resolutions which were passed,

approved, and processed through this office during the past five fiscal years.
1961 1962 1963 1964 1965
Acts 146 140 133 172 222
Resolutions 25 14 39 44 39

Executive Orders and Proclamations issued by the Govertor of te Virgin Islands

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

The following table reflects the number of Executive Orders and Proclamations

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

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1961 1962 1963 1964 1965

Proclamations .35 31' 48 42; 45.

Executive Orders 10 7 9 .3 13

PANKINC POARD OF THE VIRGIN ISLANDS

As provided in Title 9 of the virgin Islands Code all banks and foreign banks doing

business in the Virgin Islands shall be regulated and supervised by the Banking Foard of

which the Government Secretary is Chairman by virtue of Section 42, Title 3 of the Virgin

Islands Code. The Toard, with the approval of the Governor of the Virgin Islands, may

adopt regulations consistent with the laws for the purpose of effectively discharging its

responsibility.

Within the scope of its authority the Eanking roard endeavors to continue its responsi-

bility for protection of the depositor and the continuation of sound banking practices in the

Virgin Islands. The Chairman of the Banking roard upon the recommendation of the

Board and with the approval of the Governor is authorized to issue licenses to banks

permitting them to conduct banking business in the Virgin Islands.

At the end of fiscal year 1964, there were four banks and one savings and loan

association doing business in the Virgin Islands -- The New St. Croix Savings Fank,

Virgin Islands National Bank, Chase Manhattan Bank, Bank of Nova Scotia and First

Federal Savings and Loan Association.

Under the provisions of Title 9 of the Virgin Islands Code, the banks of the Virgin

Islands with the exception of the Virgin Islands National Bank and First Federal Savings &

Loan Association, are supervised by the Banking Board. National Banks are excluded from

from this supervision by the provisions of the National Bank Act of Congress (12 US.C.

Sec. 21 et seq.) .

-15-

Of significance during fiscal year 1965, the New St. Croix Savings Bank completed

its reorganization and rehabilitation. As a result of this reorganization it applied for and

received coverage from the Federal Deposit Insurance Corporation.

During fiscal year 1965 applications for authority to do business in the Virgin Islands

were received from two organizations -- the Caribbean Lank and Trust Corporation, a

group of mostly Virgin Islands businessmen, and 7arclays Fank of London, England.

These applications are pending receipt of suppliecentary information requested by. the

Foard.

There continues to be a pressing need for a complete revision of the banking laws

of the Virgin Islands. As the economic growth maintains its upward trend, inquiries

from banks and banking institutions increase. The need for clearer definitions of the

Board's authority with respect to applications and its role as a supervisory agency; the

protection of depositors' funds in non-insured banking institutions and particularly those

not enjoying Federal Deposit Insurance Corporation coverage all testify to the urgency

of the proposed revision. Requests for appropriations to accomplish this have been made

to no avail.

The following comparative table reflects the growth of the banking industry of the

Virgin Islands for the past three fiscal years. It should be noted that the 1965 figures

represent the activities only of the four banks previously named. The 1963 and 1964

figures include the four banks and the savings and loan association.

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Fiscal Year 1963 Fiscal Year 1964 Fiscal Year 1965

Total Assets $ 59,056,190.45 $ 67, 782,950.85 $ 79,541, 767.85
Total Liabilities 56,270,413.12 63,908,111.13 77, 169,041.58
Loans 9,149,990.47 13, 282. 331.67 20,905,951.94
Mortgages 21,766,369.67 27,925,425.09 30, 58 6, 1o.fo
Deposits: 51,988,767.833 58,721,006.434
Time 6,439, 154.04
Demand 34,309,809. 136
Savings 33, 335,260.94
Cash on Hand 4,258,403.47 3,379,280.27 1,938,825.78

SANITARY FACILITIES

The depletion of the original appropriation used for loans to property owners for the

installation of sanitary facilities brought to a complete halt the vital sanitary facilities

program for the past two fiscal years after 74 persons had been granted loans totalling

$88,856.00

However, during fiscal year 1965, at the suggestion of this office, action was initiate"

to reactivate the program using funds which had accumulated in the Revolving Sanitary

Facilities Fund as a result of repayments by persons who had received loans.

Iith $44,349.77 thus accumulated as of the end of fiscal year 1965 letters were

addressed to persons whose applications had been pending since the depletion of the fund

to ascertain whether they are still interested in such loan or whether there was any

reason why the application in question should not be processed. There are 30 such

applications pending for loans amounting to approximately $29, 000. In addition, approxi-

mately 29 applications are on file in this office amounting to $20, 000.

3. Includes time, demand, and savings deposits
4. Includes time, demand, and savings deposit
5. Does not include New St. Croix Savings Fank
6. Does not include New St. Croix Savings Bank

-17-

As was pointed out in previous annual reports, this program has been seriously

hampered also by the acute housing shortage in these Islands. which makes it virtually

impossible for tenants to find other housing accommodations so that property owu a

could rebuild and/or repair delapidated housing and install modern sanitary facilities.

In the meantime, this office continues to recommend to the Governor for presenta-

tion to the Legislature a request for funds for the continuation of this urgently needed

program.

RECORDER OF SPEEDS

Under the provisions of Section 36, Title 3 of the Virgin Islands Code, the Govern-

ment Secretary shall establish and maintain in each Judicial Division, an Office for the

filing and or recording of deeds and other legal instruments relating to the title to real

property situated in the judicial districts and all other legal instruments required by law to

be filed or recorded therein. Each office shall be in charge of a recorder of deeds, who

shall be an employee attached to the Office of the Government Secretary, and who shall

be designated as such by the Government Secretary. The instruments and records in each

office shall be open to public inspection during ordinary business hours on each business

day. The Recorders of Deeds shall perform their duties under the supervision and direction

of the Government Secretary.

Office of the Recorder of Deeds, St. Thomas

The increased business activity in the community reflected itself in the workload of

the Office of the Recorder of Deeds.

In order to enhance service to the public and facilitate efficient handling of this

increased workload, office facilities and accommodations have been expanded within the

-18-

limitations of space and available funds. New cardex files have been installed; improved

research facilities provided, temporary clerical personnel was hired to augment the

work force; and a Xerox 914 copier was installed.

During fiscal year 1965 a total of 5, 794 documents were recorded -- an increase

of 1,027 more than were recorded during fiscal year 1964 -- for which a total of

$58,796.88 in fees was collected.

A comparative analysis of documents recorded and charges assessed over the past

five fiscal years follows:

Documents 1961 1962 1963 1964 1965

Trust Receipts .- 12
Promissory Notes -. -- 8
Deeds 426 583 547 743 920
Mortgages 360 349 535 537 744
Chattels 116 236 570 655 819
Conditional Sale Installment,
& Contracts of Sale 886 1,052 886 1,147 2,271
Cancellations & Releases 216 235 356 1,009 582
Bills of Sale -- 11 155 10 6
Leases 18 43 37 59 44
Liens 34 91 9 28 120
Adjudications 24 21 31 16 30
Easements 15 3 45 39 35
Death Certificates 5 2 11 6 11
Assignments 35 7 -- 21 23
Miscellaneous 86 97 171 397 169
Totals 2,221 2,730 3,353 4,767 5,794

COMPARATIVE LIST OF FEES COLLECTED
Fiscal Years 1961-1965

1961 1962 1963 1964 1965

Total Fees Collected $19,263. 49 $22, 150.73 $28,688.20 $42,170.33 $58,796.68

-19-

Translation:

In addition to the recording and filing services performed by the Office of the

Recorder of Deeds, another important and continuing function of this office has been the

translation to English of the Danish Records and other instruments. After translation

these documents are cataloged and permanently filed in this office.

Phenomenal progress has been realized in this area of activity since its inception

in 1963. Since that time a total 10, 975 pages have been translated from Danish to English,

including Books for St. John, all Danish texts of deeds, mortgages and other instruments

from 1891 to 1947. These documents have been cataloged and permanently filed. This

service has proved invaluable to courts, lawyers and the Office of the Public Surveyor.

It is strongly recommended that all measure-briefs written in Danish and at present

on file with the Department of Public 'orks be transferred to this office for translation,

repairs where necessary, and filing in the respective property files in this office thus

providing complete property records in at least one place. Copies of the translated

briefs could be sent to the Department of Public Works for its files. This proposed recom-

mendation if implemented would prove to be of invaluable assistance in settling disputes

involving boundaries, previous titles, etc.

Further it is recommended that all Danish Books pertaining to land and property

be filed in the Office of the Recorder of Deeds. This would provide greater uniformity

in property record keeping and research would be greatly enhanced.

Microfilm:

During fiscal year 1965 microfilming of all documents continued. However, an

urgent need still exists for a microfilm reader with sufficiently heavyand powerful lens

-20-

to assure easy reading, and which simultaneously could also make photocopies of micro-

filmed documents. Funds fir the purchase of this vital piece of equipment have been

requested several times, but no appropriation has been forthcoming.

As far as the Record Books are concerned microfilming is up to date with six

Auxilliaries remaining to be microfilmed,

Office of the Recorder of Deeds, St. Croix

The Office of the Recorder of Deeds, St. Croix performs the same services for

the Judicial District of St. Croix as performed by the Recorder of Deeds for the Judicial

District of St. Thomas. Efforts similar to those underway in St. Thomas are being

carried out in the interest of bringing about in St. Croix the same degree of improved

service and efficiency for the benefit of that community.

The following comparative tables illustrate the increased activity in this office over

the past five fiscal years;

COMPARATIVE LIST OF DOCUMENTS RECORDED
Fiscal Years 1961-1965
Document 1961 1962 1963 1964 1965

Deeds 441 676 718 748 848
Mortgages 383 403 501 539 601
Chattel Mortgages 144 166 121 193 336
Conditional Sales Contracts 106 161 437 357 1,566
Cancellations 401 352 383 431 542
Adjudications 15 30 19 12 11
Certificates of Attachment 107 113 45 55 --
Certificates of Death 8 10 23 9 25
Miscellaneous 132 297 295 399 408
Totals 1,737 2,325 2,552 2,743 4,337

-21-

COMPARATIVE LIST OF FEES COLLECTED
Fiscal Years 1961-1965

Total Fees Collected $19,838.75 $14,412.25 $22,111.50 $31,956.50 $44,926.7.

OFFICE OF THE TAX ASSESSOR

Although revenue collections from real property taxes have been increasing since

the implementation of the 1960 reassessment program, these increases have failed to

produce revenues in accordance with the program's potential. This failure can be

attributed, among other things, to legislative restrictions and assessments which do

not bear a sufficiently true relationship to present-day property value here in the

Virgin Islands.

To correct these inadequacies, maintain equity in the rea property assessment

system, upgrade, improve and coordinate assessment with present market values,

a continuous three-year reassessment program was initiated by this office after exten-

sive consultation with the firm of Collett and Clapp. Under this program each year

one-third of the real property in the Islands will be reappraised so that property in all

three Islands will be completely reappraised every three years.

This continuous program of reassessment which was designed as a part of the

over-all assessment system program could not be put into effect until 1964, and then

cannot become effective until 1966 at which time tax bills for the calendar year 1965

will be sent out because of the several restrictive legislative enactments.

With the termination of the provisions of Act No. 909, approved June 18, 1962,

which provided for spreading over a four-year period any increase in real property

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taxes for the calendar year 1961 over those of 1960, implementation of the field appraisal

work for the first 1/3 of the new reassessment program was begun in August of 1964

and the second 1/3 got underway in April of 1965. In St. Thomas the reappraisal work

started with the western most end of the Islands and has progressed to Estate Thomas,

including all of the City of Charlotte Amalie. Appraisers in St. Croix began at the

eastern most end of that Islands and to date have covered up to the Princess area, in-

cluding the City of Christiansted.

Upon completion of the second 1/3 of the reappraisal work, the appraisers will

then channel their efforts to their normal work of appraising new improvements and

subdivisions and plotting of new parcels in order to meet next year's deadline for

getting out tax bills.

Preliminary findings of the appraisers and computation personnel indicate that

generally land assessments may increase from 50% to as much as about 150% in certain

instances, and building assessments from 25% to 30%. Projected figures indicate

that assessments on taxable properties will increase from the present $83,394,239 to

approximately $125,000,000 with a corresponding increase in taxes from the present

$968,794.42 to approximately $1,562,000.

Assessment and taxes for the past taxaWe year lacreased rematki3bly, However,

inadequate enforcement measures in the collection of delinquent property taxes, among

other things, have resulted in delinquent property taxes amounting to $226, 384,10 due

for the years 1954 to 1963.

It is interesting to note also that at the present time property and land with an

assessed value of $13, 469, 130 are owned by tax exempt firms, and that if said properties

were subject to be taxed the amount involved would be $168,364.14.

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The implementation of the new "Three-Year Reassessment Program" has

necessitated the purchase of additional office equipment such as calculators. In addition,

the dire need for additional clerical help and the replacement of old vehicles have been

emphasized.

The following charts reflect the increased activity and to some extent the effective-

ness of the continuing efforts to upgrade and improve the real property assessment

system of the Virgin Islandsi

DETAILED CHART OF ASSESSMENTS AND TAXES
1960 1964

No. of
Island Year Bills

Saint 1960
Thomas 1961
1962
1963
1964

Saint
Croix

Saint
John

1960
1961
1962
1963
1964

1960
1961
1962
1963
1964

5,377
5,500
5,744
, 210
6,786

4,913
5,100
5,397
5,731
6,191

662
703
714
738
771

Total
Assessments

$ 28,777,774
28,098,747
30,148,342
34,520,023
40,163,098

30,568,144
28,661,753
31,078,240
35,302,247
40,890,229

1,846,734
1,981,270
2,119,749
2,195,352
2,340,912

Taxes

$ 359,722.13
351,234.34
376,854.28
431,500.29
505,909.55

382,101.80
358,271.91
388,478.00
443,835.96
513,053.86

23,084.18
24,7650.88
26,496.86
27,441.90
29,261.40

Deductions
Act #768

$ 78,422.18

136,198.58

13,- 037.99
13,037.99

,
t-

Modification
Act #909

$35,442.00
23,628.88
12,512.64

63,131.64
42,087.73
21,148.11

6,600.00
4,407.07
2,025.35

Homestead
Act #834

$20,000.00
24,274.31
28,913.96
33,155.88

25,300.00
31,830.66
34,905.85
42,566.60

2,500.00
2,869.75
3,678.19
3,707.91

Taxes After
Deductions

$ 281,299.95
295,792.34
328,951.09
390,073.69
472,753.67

245,903.92
269,840.27
314,559.61
387,782.00
470,487.26

10,046.19
15,665.88
19,220.04
21,738.36
25,553.49

Total Taxes 1960 1964
Total Deductions 1960 1964
Total Taxes After Deductions
1960-1964

4,242,012.34
682,933.83

3,559,078.51

-24-

--

No. of
Year Bills

1963 12,679

1964 13,773

19648 52

1964 13,721
10 4
1964 1,042

RECAPITULATION OF 1963 AND 1964 REAL PROPERTY TAXES & ASSESSMENTS

TOTALS FOR ST. THOMAS, ST. CROIX, ST. JOHN

Land Building Night No. of Amt. of
Assessments Assessments Total Taxes Soil H'Steads H'steads

$34,787,894 $37,229,718 $72,017,612 $900,220.15 $6,813.90 2,338 $67,498.00

39,932,011 56,931,358 96,863,369 1,210,792.11 5,796.82 2,687 79,430.39

1,495,891 11,973,239 13,469,130 168,364.14 -- --

38,436,120 44,958,119 83,394,239 1,042,427.99 .5,796.82 2,687 79,430.39

3,648,226 7,728,401 11,376,627 142,207.84 1,017.08 349 11,932.39

No. of Amt. of
Mod. Mod.

4,000 $35,686.10

35,686.10
-- 35, 68 6.10

Taxes

$803,849.95

1,137,158.54

168,364.14

968, 794.42

164,944.47

7. Totals include tax exempt properties
8. Totals, tax exempt properties
9. Totals do not include tax exempt properties
10. Increase or decrease in taxable amounts

-25-

-26-

VIRGIN ISLANDS INDUSTRIAL INCENTIVE BOARD

The Virgin Islands Industrial Incentive Board is charged with the responsibility for

administering the Virgin Islands Tax Incentive Act, as provided for by Act No. 798, Third

Special Session of the Fourth Legislature, approved Noiember 3, 1961, as amended and

revised by Act No. 1152, approved April 1, 1964, and as further amended and revised by

Act No. 1415, approved April 5, 1965.

During giscal year 1965 the Board was composed of the Government Secretary and the

Budget Director, ex officio Chairman and Secretary, respectively, the Commissioner of

Commerce and the Director of the Tax Division of the Department of Finance, members

ex officio, and three other members appointed by the Governor with the advice and consent

of the Legislature. The Board was assisted by a staff of three persons: an Executive

Officer, a Field Inspector, and a Secretary. Under the supervision and direction of the

Chairman they performed the continuing day to day duties of handling all applications for

tax exemption, processing all claims by tax exempt firms for subsidy rebates, make

periodic inspections of tax exempt firms, made necessary preparations for meetings of

the Board and took required follow-up action necessary to implement actions by said

Board at its meetings. Promotion of the Industrial Incentive Program continued by law

to be the responsibility of the Department of Commerce.

During fiscal year 1965 the Legislature passed Act No. 1141, amending Section 4114

of the Tax Incentive Act and extending the deadline for filing applications under this

section from June 30, 196, to June 30, 1966.

At the end of the fiscal year there were 81 persons, firms, or corporations holding

tax exemption certificates -- 45 for assorted small businesses and 36 for hotels and

-27-

guesthouses. As a result of these operations, an estimated 2,320 persons were employed

for an average payroll of $6.5 million.

During this same period nine new conditional certificates were issued -- five to hotels

and four for small businesses.

The following charts and tables provide a picture of the average wage and employment

distribution among the various tax exempt industries, and a comparative analysis of subsidy

payments since fiscal year 1962.

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

Industry

Average Number
of Employees

Hotels, Guesthouses,
and Motels
7Watches and Related
Products
Costume Jewelry and
Related Products
Thowerproofing Woolens
Knitting, Spinning and
Weaving of Woolens
Chemicals and Related
Products
All Others

1,503

Average Number
of Bonded Employees

561

245

S 64
55

33
357

Average Annual
Payroll

$ 3,770, 103.00

1,078,116.00

128,388.00
135, 148.00

113,620.00

129,064.00
1,275,041.00

1. Affected by quota
2. Includes Thermometers, manufactured woolen garments, dairy products,
construction materials, etc.

Comparative Chart on Subsidies'Receivbd by Tax' Exempt Firms

Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Item 1962 196311 196412 196513

Custom Duties $287,272.90 $405,432.00 $397,001.00 $482,359.35

36,710.49 2,663.00 7,952.00 3,462.80

566,139.91 277,540.00 1,017,677.00 930,018.36

The Legislature on March 10, 1965, passed Act No. 1415, approved April 5, 1965,

which transferred jurisdiction of the Industrial Incentive Board from the Office of the

Government Secretary to the Department of Commerce despite the virogous written protest

of the Government Secretary challenging the alleged findings of the Legislative Committee

-ssigned to investigate the operation of the Tax Incentive Law and upon which findings the

recommendation for this transfer is said to have been based. (See Appendix A). This

transfer became effective as of the close of business on June 30, 1965.

UNIFORM COMMERCIAL CODE

Act No. 1299, approved February 19, 1965, created a Uniform Commercial Code for

lhe Virgin Islands to become effective July 1, 1965, and placed responsibility for its

administration with the Office of the Government Secretary.

The efficient and effective administration of the Uniform Commercial Code requires

an expansion of an already understaffed Office of the Recorder of Deeds on the Islands of

St. Thomas and St. Croix, under whose general supervision will be assigned the duties

11. Certifications made by Board to Department of Finance to end of fiscal year.
12. Certifications made by Board to Department of Finance to end of fiscal year.
13. Amount of claims actually paid by the Department of Finance during fiscal year 1965

-29-

incident to the implementation of Act No. 1299.

At present the staff of the Office of the Recorder of Deeds in St. Thomas is comprised

of 3 members. The same is true of the size of the staff in St. Croix.

The continuing increase in the workload of these Offices makes it impossible for these

already overburdened a~tfs to assume and effectively perform -- without reinforcement --

all of the additional duties which will now rest with said offices as a result of the Uniform

Commercial Code.

However, requests for appropriations to implement this Act have been denied by the

Legislature.

MISCELLANEOUS

The upward surge of all activities relating to the services performed by the Office

of the Government Secretary is accompanied by a corresponding spiral in the amount

of fees collected by the Cashier in this Office. During fiscal year 1965 well over a

quarter of a million dollars was collect -- $262, 493.25 as compared with $228,686.84

;fr the fiscal year 1964, $171,367.90 for the fiscal year 1963, and $133,353.98 for the

fiscal year 1962.

14. This does not include fees collected in St. Croix by the Office of the Administrative
Assistant to the Governor.

APPENDIX A

GOVERNMENT OF
THE VIRGIN ISLANDS OF THE UNITED STATES
Office of the Government Secretary
Charlotte Amalie, St. Thomas 00802

March 6, 1965

The Honorable
Earle B. Ottley
President of the Virgin Islands Legislature
Charlotte Amalie, St. Thomas
Virgin Islands of the United States

Dear Mr. President:

I have just had an opportunity to read the report on the study of the Industrial Incentive
Program as submitted to the Legislature on behalf of the Standing Committee on Housing,
Community Renewal and Commerce by Senator David Puritz, Chairman, on March 1, 1965.

As a member ex officio and Chairman of the Virgin Islands Industrial Incentive Board,
:.nd in view of the interest you evidenced in this subject during the course of the recent
hearings on the budget of the Office of the Government Secretary, I deem it my duty to
voice the following comments in the hope ti t they will serve to clarify and correct the
unfair inferences, grossly misleading statements, and inaccurate unsupported conclusions
with which the report is studded.

The report in its findings referred extensively to information supplied the Committee
i response to its request by Mr. George A. Beretta, Executive Officer for the Virgin
:lands Industrial Incentive Board. The first sentence in paragraph 4 of said findings
which appears on page 2 states that "there are twenty-nine applications . pending."
Of these twenty-nine applications, the report goes on to account for twenty-one -- leaving
the status of the remaining eight which at the time were on the agenda for the next meeting
of the Board to the imagination of the reader. To complete the record it should be noted
that of the eight "unaccounted for" firms, the Board voted to recommend to the Governor
the granting of tax exemption to five of these firms and that they are being processed for
transmission to the Governor for his action. The other three pending applications were
again passed over at the Board's most recent meeting because of the failure of the appli-
cants to submit required information in support of applications -- without which the Board
cannot take further action.

Beginning at about the middle of page 2, the report lists what it refers to as "setbacks"
in the Industrial Incentive Program which were emphasized by various statements submitted
to the Committee upon which I intend to comment in the order in which they are listed. But
before I do, it might be well to point out that for a period of eleven months the Industrial
Incentive Board was without an Executive Officer (the only staff members being a field
inspector and a secretary ) when the Legislature in passing the 1963-64 budget deleted the

appropriation of funds for the salary of this position. It also should be noted that when
executive initiative was employed by Governor Paiewonsky to relieve this problem, he was
informed by members of the Legislature that his contingent fund would not be reimbursed
nor supplementary appropriation approved to offset any drain on said account which resulted
from the use of funds therefrom to pay the salary of the Executive Officer during this
urgent period.

1. The statement that "the period between the filing for and the granting of rebates
is unduly long. In certain instances years elapse before such rebates are made" is
grossly misleading.

There are certain necessary administrative steps to be taken and checks made by the
Office of the Industrial Incentive Board as well as by the Department of Finance incident
to scheduling and paying claims. Normally, what might appear to be "unduly long"
periods may elapse only when:
a. Income tax claims amounting to $10, 000 or more are
filed and must be sent to Vashington for review in accordance
with Section 934 of the Internal Revenue Code; or

b. If the applicant instead of paying his tax obligation in full
subtracts from the amount due that amount to which he thinks
he is entitled as refund.

Currently, the only claims pending in this office are (1) those which came in within
the past three days and which will be processed during the course of the coming week and
(2) two from Harvey Aluminum Company which have been referred to the Attorney General's
Office for an opinion as to whether said company is entitled to refunds on certain items
included on the consumption entry in support of said claim.

2. WVith respect to the statement that "the program is not actively promoted. Nothing
has been done to determine the possibility of establishing local manufacturing plants ...
no detailed information about new opportunities for successful investment has been pre-
pared . ," I believe it to be sufficient to quote the following from Section 4001(c),
Subchapter 1, Title 33 of the Virgin Islands Code which reads as follows:

"The Department of Commerce of the Virgin Islands shall promote
the industrial incentive program provided for in this title and shall
provide such informational or other related services as may be
necessary to aid in effectuating its purposes."

3. The report also lists as "setbacks" to the program:

a. 'Insufficiency of land zoned for industrial and commercial
purposes" and

b. "A feeling of insecurity among investors concerning the
continuity of tariff advantage."

Clearly, the Industrial Incentive Board has absolutely no jurisdiction nor responsibility
:. either of the above mentioned two areas.

4. Finally, the report finds that "the composition of the Board includes too few
businessmen." In commenting upon this finding it might be well to recall that the present
composition of the Board is the result of recent amendment recommended to the Governor
by his Budget Director and Legislative Representative, Mr. de Castro, which the Governor
subsequently forwarded to the Legislature, and which, if my memory serves me correctly,
was passed without a single dissenting vote.

In closing I wish to emphasize the fact that the question of whether or not "the Virgin
Islands Incentive Board (is) taken from within the Office of the Government Secretary ...'anu
placed within the Department of Commerce or made an independent agency" is not at issue.
The authority of the Legislature to enact such legislation is unquestioned -- with final
approval dependent of course upon the Governor's signature.

AWhat is at issue, is what appears to be an insidious attempt in this report to convey
the erroneous, unfair, and misleading impression that the "setbacks" from which it
suggests this program suffers rest with the Industrial Incentive Board -- an allegation
which is not supported by the facts and which I strongly deny.

Sincerely,

/s/ Cyril E. King
Government Secretary
and
Chairman, Virgin Islands Industrial Incentive Board