Front Cover
 Title Page
 Table of Contents
 General information
 Highlights of the year
 Office of the government secre...
 Department of education
 College of the Virgin Islands
 Department of health
 Department of social welfare
 Department of commerce
 Department of agriculture...
 Virgin Islands employment security...
 Department of public works
 Department of finance
 Office of the director of...
 Department of housing and community...
 Department of property and...
 Department of law
 Department of public safety
 The municipal courts
 Office of the probation office...
 Planning board
 Division of personnel
 Human relations commission
 Traffic advisory and safety...
 Public utilities commission
 Selective service
 Back Cover

Group Title: Annual report of the Governor of the Virgin Islands to the Secretary of the Interior.
Title: Annual report of the Governor of the Virgin Islands
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00015459/00003
 Material Information
Title: Annual report of the Governor of the Virgin Islands
Alternate Title: Annual report - the Governor of the Virgin Islands
Annual report of the Governor of the Virgin Islands to the Secretary of the Interior
Annual report, Virgin Islands
Physical Description: v. : tab. ; 24 cm.
Language: English
Creator: Virgin Islands of the United States -- Governor
Publisher: United States Department of the Interior
Place of Publication: Washington, D.C.
Manufacturer: United States Government Printing Office
Publication Date: 1962-1963
Frequency: annual
Subject: Politics and government -- Periodicals -- Virgin Islands of the United States   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
Spatial Coverage: United States Virgin Islands
Numbering Peculiarities: Report covers fiscal year.
General Note: Title varies slightly.
General Note: Vols. for 1925/26 issued as Senate document 170, U.S. 69th Congress, 2d session.
 Record Information
Bibliographic ID: UF00015459
Volume ID: VID00003
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ltqf - AAA5018
oclc - 01235215
lccn - 26027791
issn - 0363-3438

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
    General information
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
    Highlights of the year
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
    Office of the government secretary
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
    Department of education
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
    College of the Virgin Islands
        Page 31
        Page 32
    Department of health
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
    Department of social welfare
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
    Department of commerce
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
    Department of agriculture and labor
        Page 61
        Page 62
        Page 63
        Page 64
    Virgin Islands employment security agency
        Page 65
        Page 66
    Department of public works
        Page 67
        Page 68
        Page 69
        Page 70
    Department of finance
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
    Office of the director of the budget
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
    Department of housing and community renewal
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
    Department of property and procurement
        Page 92
        Page 93
    Department of law
        Page 94
    Department of public safety
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
    The municipal courts
        Page 101
        Page 102
        Page 103
    Office of the probation officer
        Page 104
        Page 105
    Planning board
        Page 106
    Division of personnel
        Page 107
        Page 108
    Human relations commission
        Page 109
    Traffic advisory and safety committee
        Page 110
    Public utilities commission
        Page 111
    Selective service
        Page 112
        Page 113
        Page 114
    Back Cover
        Page 115
        Page 116
Full Text


Virgin Islands
To the Secretary of the Interior
for the Fiscal Year Ended June 30



Virgin Islands
To the Secretary of the Interior
for the Fiscal Year Ended June 30

Annual Report

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C., 20402 Price 40 cents

L4 4t+


General Information-......-- ---------- 1
Highlights of the Year--------------------------------- 8
Legislation _----------------------------------------- 16
Office of the Government Secretary ----------------------- 17
Department of Education______________________________ 23
College of the Virgin Islands---------------------------- 31
Department of Health ------------------------------- 33
Department of Social Welfare--------------------------- 45
Department of Commerce _---------------------------_ 53
Department of Agriculture and Labor--------------------- 61
Virgin Islands Employment Security Agency --------------- 65
Department of Public Works --------------------------- 67
Department of Finance --------------------------------- 71
Office of the Director of the Budget --------------------- 78
Department of Housing and Community Renewal--------___ 84
Department of Property and Procurement_ ----------------- 92
Department of Law_ -----_-- ------------------------ 94
Department of Public Safety ---------------------------- 95
Municipal Courts ---- ------------------------------- 101
Office of the Probation Officer -------------------------- 104
Planning Board------------------------------------ 106
Division of Personnel --------------------------------- 107
Human Relations Commission -------------------------- 109
Traffic Advisory and Safety Committee ------------------- 110
Public Utilities Commission -------_______------------ 111
Selective Service_ ------ ------------------------------ 112
Conclusion ---------------------------------------- 114

1963 Annual Report

of the




General information
A part of the curving Antilles chain separating .the Cari.bbean Sea
from the Atlantic Ocean, the. Virgin Islands of the United States are
located about 40 miles east of Puerto Rico and some 1,400-miles south-
east of New York City.
More than 50 islands and cays of volcanic origin are included in
this West Indian territory, but only 3 presently are of any population
or commercial significance. The largest of these, St. Croix, has 84
square miles of land, much of it flat and suitable for agricultural use.
Forty miles to the north of St. Croix lie the islands of St. Thomas and
St. John which rise from the. same submarine plateau. St. Thomas,
with 28 square miles, and St.. John, with 20 square miles, are rugged
mountainous islands with peaks reaching a maximum height of 1,500
feet above sea level. Between these two islands and St. Croix, the
Caribbean Sea deepens to 15,000 feet.
The steeply sloping mountain sides on St. Thomas and St. John
drop abruptly to the sea, leaving .very little tillable land. On St.
Croix, sugarcane still is the main crop, though of diminishing economic
feasibility. -However, farming with machine cultivation is making
food crops an attractive new enterprise for both local and export
The limited agricultural resources of St. Thomas are compensated
in large degree by the harbor. Once an important shipping center,
Charlotte Amalie now has become one of the world's most popular
ports of call for cruise ships.
The beautiful Virgin Islands National Park is the principal attrac-
tion on St. John. Here, the fabulous beaches and rugged mountain


scenery give this small, thinly populated island a special charm all
its own.
The semiarid tropical climate of the islands, with a temperature
average of about 80 degrees, varies little between summer and winter.
The heat of the tropical sun is tempered by the trade winds, and
temperatures range from a low of 69 degrees in winter to a high of 91
degrees in the summer.
The tropical flora includes hibiscus, bougainvillea, flamboyant, ole-
ander, poinsettia, African tulip, frangi pani, lignum vitae, and a host
of other beautiful flowering trees and shrubs. Sea grape, mahoe, and
mangrove line many of the shores, and the royal and coco palms find
a naturally good environment. Native fruit trees include mango,
soursop, lime, guava, sugar apple, avocado, papaya, genep, and mam-
mee apple.
Stone, sand, and gravel provide local building materials, but there
are no minerals of commercial significance.
Fish is an important ingredient in the native diet, but there is no
large commercial fishing industry. Game fishing is a growing and
exciting sport, with sailfish, tarpon, marlin, king fish, wahoo, Spanish
mackerel, and tuna among the catches.

The trade winds which blow down from southwestern Europe and
Madeira brought Christopher Columbus to Santa Cruz, now known
as St. Croix, on his second voyage to the Western Hemisphere in 1493.
There, he sailed into the estuary of Salt River in search of fresh water.
Columbus also sighted 'St. Thomas, St. John, and the British Virgin
Islands which he named "Las Virgenes" in honor of St. Ursula and
the 11,000 virgins.
The warlike Carib Indians occupied the Virgin Islands aIt the time
of Columbus' discovery, and their hostility defeated colonization until
about 1555, when they were driven off the islands by the forces of
King Charles V of Spain.
During the 17th century, France, England, Spain, Holland, and
Denmark jockeyed for control of various islands in the West Indies.
Sugar was the prize. The importance of this product at that time is
indicated by the fact that Great Britain seriously considered whether
to keep Canada or the French Island of Guadeloupe in the negotia-
tions that ended the Seven Years' War in 1763.
In 1671 Denmark chartered its West India Co. and began colonizing
St. Thomas and St. John. St. Croix was bought from France in 1733
and remained under Danish control, except for a brief English occu-
pation during the Napoleonic Wars, until 1917.


Under Denmark's liberal trading laws and policy of neutrality,
the Virgin Islands flourished. Charlotte Amalie became a famous
Caribbean port and prospered in a booming trade with the New Eng-
land States. Sugarcane plantations and windmills for grinding cane
dotted all three Danish islands.
It is said that pirates, among them the notorious Captain Kidd,
were given sanctuary and commercial privileges in return for sparing
the islands from their depredations.
As a collateral to the sugar industry, slavery was introduced in the
1680's. Twice the slaves revolted. Once, after a bloody mutiny on
St. John, they held that island for 6 months, until French forces
were sent from Martinique to aid the Danes. Tradition says that the
slaves ended their bondage by mass suicide, either by jumping from a
cliff or shooting themselves on the rugged north shore of the island.
Slavery was abolished in 1848, and the commercial importance of
the Virgin Islands diminished, as sugarcane became more and more
a marginal crop compared with more competitive conditions in Cuba
and elsewhere.
The United States first became interested in acquiring the Danish
Virgin Islands during the American Civil War. A purchase agree-
ment was negotiated, but the Senate refused to ratify it in 1870. To
forestall German seizure and make available the St. Thomas harbor
as a base for the U.S. Navy during World War I, a treaty for pur-
chase of the islands for $25 million was agreed upon in 1916 and
ratified the following year. The United States assumed control of the
Danish West Indies on March 31, 1917.

The Danish system of government and legal code was continued
from 1917 to 1931. Military, civil, and judicial power all were vested
in the Governor appointed by the President. The islands were under
the administration of the U.S. Navy, and all Governors appointed
were naval officers.
When the United States purchased the islands, natives who were
not citizens or subjects of other countries were given the status of
"inhabitants of the Virgin Islands entitled to the protection of the
United States." Then, on February 25, 1927, full American citizen-
ship was granted them.
An Executive order of the President transferred jurisdiction over
the Virgin Islands from the Navy to the Department of the Interior
on February 27, 1931. The first civilian Governor was appointed at
that time.


On July 22, 1954, the Congress enacted the Revised Organic Act,
under which the Virgin Islands now are governed. Distinct execu-
tive, legislative, and judicial branches were designated.
Executive authority is exercised, under supervision of the Secretary
of the Interior, by the Governor who is appointed by the President
with advice and consent of the Senate. The Governor's responsibili-
ties include execution of all local laws, supervision and control of all
activities of the executive branch, appointment of officers and em-
ployees, including the commissioners of the executive departments.
The seat of government is Charlotte Amalie, St. Thomas, and the
Governor is represented by administrative assistants in St. Croix and
St. John.
The Virgin Islands have a one-house legislature, composed of 11
senators, 2 each from St. Thomas and St. Croix, 1 from St. John, and
6 elected at large. Every bill passed by the legislature must be signed
by the Governor before it becomes law. If the Governor's veto of a
bill is overridden by a two-thirds vote of the senators, he then must
either approve the bill or submit it to the President for final action.
Judicial power is vested in Virgin Islands municipal courts and in
a Federal district court. The latter has certain local jurisdiction as
well as authority in cases arising under Federal law. The district
judge and district attorney are appointed by the President.

Finances and Taxes
The government of the Virgin Islands derives its revenues from
local taxes and Federal excise taxes on goods manufactured in the
islands and shipped to the United States.
About one-third of the total revenues come from income taxes under
an act of Congress which provided that the Federal income tax sched-
ules be applied as a local income tax in the islands. Another third
comes from other local taxes such as property, gross receipts, trade
and excise taxes, customs dues and license fees. Excise taxes collected
in the United States on Virgin Islands products and returned to the
local government as matching funds account for the remaining third.
Combined local revenues and matching funds provided an operat-
ing and capital budget of over $20 million in fiscal 1963, as compared
with $17,400,000 in fiscal 1962.
In addition, the Virgin Islands participate in federally supported
programs such as public housing, urban renewal, and various health
and educational projects on much the same basis as the States.


Virgin Islands Corporation
The Virgin Islands Corporation is wholly owned by the Federal
Government. It is the instrument through which a number of func-
tions necessary to the islands are managed. VICORP's major
activities are the growing of sugarcane, operation of a raw sugar
mill, generation and distribution of electric power, land management
and conversion of salt water to fresh in St. Thomas.
The objective of VICORP management is to make the Corporation
self-sustaining. Previously, the Federal Government underwrote the
losses. However, losses now are made up from the local government's
matching funds. Since the main contributor to such losses has con-
sistently been the sugarcane operations in St. Croix, it is planned
to phase out this activity over a period of several years in favor of
more economically sound operations.
In addition to public utilities and sugar production, VICORP has
authority over several former military installations in St. Thomas
which include the airport, several docks, hotels, factories and housing
units, as well as the golf course.
Next to the government, VICORP is the largest employer in the
islands. During the peak period in fiscal 1963, 1,187 persons were
working for the Corporation, including 550 British West Indian cane

Economic Development
Tourism, agriculture, and small manufacturing concerns are the
main commercial factors in the economy.
Tourism has replaced rum production as the largest industry and
now generates income for the islands of more than $40 million per
year. Agriculture still consists largely of growing sugarcane for the
milling of raw sugar. However, programs for food crops, dairy,
and meat production are being developed. For many years, raw
sugar, rum, jewelry, and metal parts accounted for most of the
,shipments out of the islands, but in 1962, watches, watch movements,
,and woolen -fabrics took the lead in commodities exported to the U.S.
The government has taken vigorous steps to attract stable, small
manufacturing industries which would guarantee year-round em-
ployment at higher wages in order to attain a higher standard of
living. Also under way is the building of an alumina plant in St.
Croix at a cost of $25 million, which will employ about 400 workers
on a permanent basis when in full capacity operation.


Over 10 years ago, the local government inaugurated an industrial
development program through the use of tax incentives. The en-
abling act for this program was revised in November 1961, to further
attract and encourage private investment from the outside. Under
this program, industrial concerns, hotels, guest houses, and housing
projects may be granted tax exemption up to 10 years and the return
of 75 percent of income taxes in the form of a subsidy. Also, some
manufacturers take advantage of section 301 of the U.S. Tariff
Act which permits duty free entry into the United States of items
made in the Virgin Islands that contain not more than 50 percent of
foreign raw material.

The last official census of the Virgin Islands of the United States
was conducted as of April 1, 1960. The report of that census showed
a total population for all three islands of 32,099. The bureau of
vital statistics now estimates the population as of the end of fiscal
1963 at 35,000.
Of the total given in the 1960 census, 15,930 were male and 16,169
female; 18,017 were residents of urban communities and 14,082 were
rural; 8,892 were enrolled in schools. The total labor force was
11,334, of which 7,363 were male and 3,971 female. The percent of
the civilian labor force unemployed was 3.4 percent or a total of 383.
Of the 32,099 persons listed in the 1960 census, 14,973 resided on
St. Croix, 16,201 on St. Thomas, and 925 on St. John.
English is the traditional language of the islands. The people
are religious and worship in churches which include Roman Catholic,
Episcopalian (Anglican), Lutheran, Methodist, Orthodox Jewish,
Moravian, Seventh Day Adventist, Pilgrim Holiness, Christian Mis-
sion, Dutch Reformed, and Baptist.

Health and Education
With per capital income the highest in the Caribbean, living con-
ditions are approaching mainland standards. The climate eliminates
the need for home heating and heavy clothing, thus contributing to
good health. Housing, which was the No. 1 problem a few years ago,
is steadily improving, with the building of both public and private
modern projects.
Modern hospitals or clinics provide medical and surgical services
to the three islands, and public health programs have been expanded
to take care of school and family requirements.
The literacy rate is comparable to that of the mainland. The
public school system goes from kindergarten through high school.


Upgrading.of. instruction, curriculums, and physical facilities is being
expedited at all educational levels. In fiscal 1963, the College of the
Virgin Islands opened its doors to its first freshman class and now
offers the firstdocal-educational opportunity beyond the 12th grade.

Communications and Transportation
A modern dial telephone system now serves all three islands, and
worldwide telegraph service is available. Radio and television sta-
tions provide popular programs, and there are several newspapers
serving the islands.
Transportation to the Virgin Islands is mainly by airplane, except
for cruise ship passengers. In the islands, cars, buses, and taxis
are driven on the left-hand side as in England. Roads and streets are
being steadily improved.

Highlights of the Year

The fiscal year 1962-63 saw the Virgin Islands move ahead in local
application of the President's plans for economic, social, and cultural
progress. A significant record of achievement was made through
close cooperation of the Department of the Interior, the Congress, the
Virgin Islands Legislature and the local administration.
While the progress was gratifying, it must be understood that the
islands still have a lot of catching up to do. Problems continue to
bear a strong resemblance to those of emerging, underdeveloped areas
which too long have languished in the economy of bygone centuries.
In addition to the problems of catching up, the mixed blessing of
accelerated population growth requires a projection of needs and ad-
vance planning, if the islands are to continue their forward motion.
At year's end, the bureau of vital statistics estimated the resident pop-
ulation at 35,000. From 1950 to 1962, the rate of live births had in-
creased by 16 percent and the death rate from all causes had decreased
by 25 percent. When this growth rate is projected, it is apparent that
the islands may have a resident population of 50,000 by 1970. Add
to this the skyrocketing influx of tourists and alien workers, and the
requirements become formidable for government services.
Fortunately, the economic growth of the islands promises to keep
pace with the expanding needs. Revenues to the local government
from all sources in fiscal 1963 totaled $12 million as compared with
$11 million in fiscal 1962. Tax schedules were revised to increase re-
ceipts in future years, and steps were taken to strengthen collections.

Breakthrough in Housing and Community Renewal
On June 2, 1963, dedication of the Oswald E. Harris Court in St.
Thomas dramatized the strides being made in public housing. This
provided new dwellings for 300 families formerly housed in sub-
standard structures. By year's end, more than 5,000 persons were
living in 1,094 modern housing units built by Federal and local public
funds. Forthcoming occupation of the Ralph de Chabert project in
St. Croix will add another 264 units, and local government emergency
housing now under construction will contribute 88 more apartments
and houses in the next few months.


Stepped up..response to housing needs was accomplished by two
important organizational steps taken by the islands government.
First, a department of housing and community renewal, with cabinet
rank, was established at the beginning of the year to coordinate all
housing programs and qualify the Virgin Islands for full participa-
tion in Federal aid. Second, the Virgin Islands Urban Renewal
Board was set up and recognized by the Federal Government as the
local agency for administering federally assisted slum clearance
With establishment of the urban renewal board, comprehensive
plans for demolishing the slums and relocating their residents in
modern, sanitary housing were activated.

New College of .the Virgin Islands
The summer of 1963 will long be remembered for the founding of
the College of the Virgin Islands. As the fiscal year ended, the col-
lege was preparing to open its doors to the first class. Some 46 fresh-
men were expected to enroll as full-time resident students, and about
200 part-time students had indicated their intentions of taking courses.

Elementary and Secondary Schools
In the public elementary and secondary -schools, the pressure of
growing school population continued to cause a classroom shortage
which was acute in some areas. However, the teacher-pupil ratio
was reduced still further, and new classrooms either just completed
or under construction will alleviate the overcrowding in the very near
Sitting in special session the last month of the fiscal year, the legis-
lature approved a new pay plan for teachers and other professional
personnel. The new plan will provide salary increases averaging
$849 per person and should go a long way toward making teaching
jobs in the Virgin Islands more attractive to both local residents and
teachers who must be recruited on the mainland.
The department of education was completely reorganized and oper-
ated under this new organization plan for the first time in fiscal 1963.
Following visits from three off-island.teams of educators, it is con-
fidently expected that two of the public high schools will be accredited
in the very near future.

Health Conditions Continue Good
There was an overall improvement in mortality statistics in fiscal
1963 with a new alltime low reported in the death rate, and correspond-


ing record lows in infant, neonatal, maternal, and fetal deaths. The
live birth rate increased to a new high of 38.8 per thousand, as com-
pared with 34.7 the previous year.
Aside from a short-lived epidemic of diarrhea among children, there
were no serious outbreaks of any kind.
Hospital and clinic facilities on all three islands were taxed by the
expanding case loads. This was particularly true of the Knud Han-
sen Memorial Hospital in St. Thomas, where the census of general
surgical and medical cases ran 104 percent of capacity, forcing the use
of hallways and other service rooms as bedrooms. Toward the end of
the year, however, funds became available for construction of separate
quarters for house physicians and other changes which will add 16 new
In St. Croix, transfer of the outpatient clinic from the main build-
ing of the Charles Harwood Memorial Hospital made way for exten-
sive remodeling which will greatly improve services. Renovation and
remodeling of the Calabash Boom Clinic on St. John was commenced.
However, long-range solution of the problem of adequate facilities
will only be achieved with the construction of new multimillion-dol-
lar health centers now being planned for St. Croix and. St. Thomas.
Funds were provided for a survey of needs, planning and design of
these facilities, with construction expected to be started within 5 years.
Renovation and remodeling of the old hospital buildings in St.
Thomas made room for an expanding division of public health. The
bureau of mental health was strengthened. A full-scale attack was
launched on the growing problem of parasites, which school examina-
tions revealed as affecting 40 percent of the children in the lower
grades. Home care programs were augmented, and mosquito control
efforts were redoubled.
Additions to the roster of specialists serving the department of
health included an internist, orthopedic surgeon, radiologist, surgeon,
obstetrician, pediatrician, anesthesiologist, and parasitologist, as well
as two psychologists, a physical therapist, and a health educator.

Public Works Facilities
Highway and street improvements were made. Water and sewage
disposal systems were extended. Garbage collection was increased
fourfold. Also, the department of public works made general im-
provements in its responsibilities for maintenance and housekeeping.

Harbor and Airport Improvements
Transportation and tourism will benefit by spectacular improve-
ments to the harbors of both St. Thomas and St. Croix.


At the year's end, the major part of the comprehensive.improvement
project for Charlotte Amalie harbor was nearing completion. When
completed, the project will add 119 additional acres of usable deep-
water harbor, approximately 50 acres of reclaimed land, and 3,300 feet
of bulkhead waterfront for use by commercial and pleasure craft.
At Christiansted, a new $1,107,000 dock will soon be ready for serv-
ice. This dock is part of a long-range plan of waterfront improve-
ment which will include a new waterfront highway and access streets
to keep pace with the growing needs for traffic and cargo handling.

$41 Million Tourist Industry
Industrial development and commerce were at.a record high in fiscal
1963, with tourism leading the way with a total of $41,000,070 brought
into the islands. This is an increase of $5,925,000 over the previous
Bank deposits also reached a new high of $51,700,000 and bank loans
shot up to a new record of $32,200,000.
It is estimated that 331,000 visitors came to the Virgin Islands, as
compared with 291,000 in fiscal 1962. One hundred and sixty-three
cruise ships visited St. Thomas, 32 more than the previous year. In
St. Croix, four cruise ships visited the new deepwater pier at Frederik-
sted. The department of commerce has made advance plans to at-
tract as many as 40 cruise ships to this new facility in the coming
tourist season.
Eight new manufacturing industries were established in the islands
during fiscal 1963. Exports in 1962 scored a phenomenal rise to a total
of 20,064,920, an increase of 119 percent over the previous year. Tex-
tile products, watches and watch movements, and rum were the chief
Improved insular communications came with inauguration of the
new dial telephone system on all three islands.
Throughout the year, there were strong indications that the steady
commercial growth is only the beginning of a long-range development
which will see the economy of the islands increase to many times its
present size.

Food Crops Exported to Mainland
Efforts were expanded during the fiscal year to provide a more
diversified and more profitable agricultural program, particularly on
St. Croix.
Following the successful growing and .exporting of cucumbers to
a mainland pickle manufacturer, the department of agriculture is
expanding production of food crops as a pilot project to interest island


farmers in such activities. Crops which can be grown and marketed
very profitably include tomatoes, peppers, okra, papayas, and
The dairy industry on St. Croix now is a flourishing enterprise,
and the department is fostering the development of a modern, fully
inspected beef, mutton, and pork industry.

First Inventory of Government Property
During the year, the department of property and procurement com-
pleted the first physical inventory of government-owned property ever
made. This will be kept as a running inventory, and full account-
ability has been established for the components.
In addition to its purchasing and property functions, the department
began plans for establishing a new bureau of weights and measures
in the near future.

Housing for Aged Project
The department of social welfare commissioned a well-known Swed-
ish architect to draw up plans for a public housing facility for the aged
in St. Thomas. These plans were so advanced and the project so
experimental, that Federal authorities decided to undertake the de-
velopment as a model for other communities.
Other improvements in care for the aged included an expanded
program for the Herbert Grigg Home in St. Croix and appropriation
of funds for an addition to the Queen Louise Home in St. Thomas.

Revenues at AlItime High
Revenues increased about 8 percent to a new alltime high of nearly
$12 million in fiscal 1963. To meet the ever-increasing cost of new
government services and the new pay plan, an increase in the local
gross receipts tax of from 1 percent to 2 percent was passed by the
legislature. Steps were taken to reorganize the tax division of the
finance department to strengthen enforcement of tax laws and facili-
tate collections.

Law and Public Safety
The new department of law functioned effectively in drafting legis-
lation, preparing legal opinions, and representing the government in
court actions. During the year, the attorney general and his assistants
represented the government in 5,000 matters in the municipal courts,
21 in the district court and 2 appeals before the Circuit Court of Ap-
peals for the Third Circuit.


An increased crime rate necessitated the development of new
methods and techniques of crime detection and police action. Plans
were made to add several new police specialists to the department
early in the next fiscal year. A training program was conducted in
conjunction with the Cincinnati (Ohio) Police Department.

New Election Code
The legislature passed a new election code, establishing primary
elections, thus enabling the people to vote directly for candidates
running for the territorial committees. This supplants the convention
system which was dominated by small political clubs. The first elec-
tion to be held under the new code was scheduled for November 1, 1963.
While aspirations for self-government had a temporary setback in
the Congress, the local government continued strengthening its opera-
tions and training its officials for the time when greater autonomy will
be granted.

Congressional Action Supported
The Governor and his administration concentrated much effort on
preparing information needed by the Congress on several pieces of
Federal legislation affecting the Virgin Islands in major ways.
In order to meet projected needs for health, education and public
utility facilities, the local administration has sought from the Congress
a law which will authorize the Virgin Islands Government to issue
bonds for financing such projects. Also, an act which would enable
the Federal Government to give title to the local government for
certain submerged and reclaimed lands on the shores of the islands was
sought. At year's end, favorable action on both of these bills was
Congressional tightening of customs restrictions on purchases by
American tourists abroad threatened to impair the growth of tourism,
the No. 1 industry of the Virgin Islands. The local administration
petitioned the Congress for preferred treatment, and the islands were
granted the continuation of the special $200 exemption for 9 months
ending March 31, 1964. This was a temporary measure taken to give
the islands government a chance to prepare a brief in support of its
position. Such a brief was in process of preparation at year's end.
Industrial development of the islands was inhibited by proposed
legislation and rumors of other bills to be presented which might re-
duce the advantages offered certain new industries to induce them to
set up shop in the Virgin Islands. These bills concerned the pro-
visions of section 301 of the amended Tariff Act of 1930, which allowed
for products of the Virgin Islands to be imported to the U.S. mainland
721-848 0--64--2


duty free, so long as a minimum of 50 .percent of the cost of such
items was incurred by production expenses in the islands. Some. ques-
tion had been raised concerning possible abuses of section 301 and
possible detriment to the mainland woolen goods industry. To pro-
tect against any such abuses, the legislature enacted a law which
empowered the Governor to set quotas for various classifications of
woolen yard goods produced in the Virgin Islands which would be
taxed at the rate of only 1 cent per yard. This quota would be estab-
lished at a level which would eliminate possible abuse or excessive use
of the provisions of section 301. Any yardage above the quota would
be taxed at the rate of 65 cents per yard. To facilitate application of
this quota law, the Governor appointed a hearing board to investigate
operations of the textile firms involved and recommended quotas. At
year's end, substantial progress had been made in ironing out the prob-
lems of continued application of section 301 in the economic develop-
ment of the islands.

Virgin Islands Corporation
The charter for the Virgin Islands Corporation expires in 1969 and,
in all probability, it will not be renewed.
The Congress repeatedly has shown its unwillingness to provide
funds for underwriting losses of unprofitable VICORP activities.
Hence, these losses are now appropriated from funds that ordinarily
would accrue to the local government for use in other public services.
The local government is desirous of eliminating this burden and chan-
neling the money eaten up by these losses into much needed health,
education, and other critically needed facilities.

VICORP Sugar Operation
The operation of the sugar factory and collateral use of VICORP
land for cane production in St. Croix has been a consistent money
loser. The loss can be expected to cost the local government approx-
imately $400,000 a year, except under very unusual market years which
do not recur more than once in a decade or score of years. During
fiscal 1963, VICORP sugar losses, which must be made up out of the
local funds for fiscal 1964, amounted to $480,000. Federal authorities
have decided, and the local administration agrees that these costly
sugar operations must be phased out before the expiration of the
VICORP charter.
To this end, 1,700 acres of land now used for sugarcane had been
offered for sale by VICORP. Two responsive bids were received.
The most attractive of the two was for transforming this acreage into
citrus groves and establishment of a frozen orange juice plant. The


total investment would have been $20 million, wholly financed by pri-
vate capital. This proposal was opposed by the sugar interests, even
though they did not see fit to bid for the land and continue its use for
growing sugarcane.
Study revealed that the subsidized profits of private cane growers
were concentrated in a relatively few hands, and the local govern-
ment took the position that the VICORP sugar factory should be
offered for sale so that the sugar operations could continue as a
completely private enterprise. At year's end, steps for phasing out
the VICORP sugar activity still were under consideration by the
Board of Directors of the Corporation.

Power and Water Utilities
Although profitable, the operation of power-generating plants on
St. Croix and St. Thomas and the sea water distillation plant on St.
Thomas by VICORP have not been entirely satisfactory either to the
Corporation or to the local government.
Lack of an appropriation to provide the necessary capital to expand
the power-generating facilities to meet the ever-increasing needs of
this fast-growing community has created a serious problem.
The Board of Directors of VICORP voted to sell the generating
facilities to the Virgin Islands Government. These facilities were
declared surplus and it was recommended that they be disposed of
through the General Services Administration to the local government.


To keep abreast of the legislative needs of the islands, five sessions
of the legislature were held during fiscal 1963. In addition to the
regular session of the Fifth Legislature, from January 14 to March 14,
three special sessions of the Fourth Legislature and one of the Fifth
were required.
Cooperation between the executive and legislative branches was
good and resulted in a record of progressive legislation. At the
special session called August 1, 1962, 10 bills were proposed and
approved. These included five resolutions. At the October 5, 1962,
special session, one bill was-proposed and adopted. At the Decem-
ber 4, 1962, special session, three bills, including two resolutions, were
proposed and approved. During the regular session, beginning Jan-
uary 14, 1963, 154 bills were passed, including 30 resolutions. Three
bills were withdrawn, 4 incorporated in other bills, 41 referred to com-
mittees for further study, and 1 bill adopted by the Boy Scouts sitting
as senators for a day had no legal effect.
There were 32 bills proposed at the June 17, 1963, special session.
Twenty-six were adopted, including two-resolutions; five were dropped
and one rejected. Twenty-four of those passed were approved by the
Governor and the remaining two required no executive action.

Office of the Government Secretary

Personnel: 40 Operating appropriation: $297,894
The close of fiscal 1963 found all St. Thomas-based agencies of the
office of the government secretary housed in the administration build-
ing. This was the culmination of a 2-year effort by the government
secretary. It is now possible for persons to transact business involv-
ing the several agencies under the jurisdiction of this office 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 activities of the year included the important function of com-
piling and publishing all legal documents for the government of the
Virgin Islands, including supplements to the Virgin Islands Code,
Virgin Islands Rules and Regulations, Virgin Islands Register, Virgin
Islands Session Laws, and Slip Laws of the Virgin Islands.
The following table reflects the number of acts and resolutions
which have been passed, approved and processed through this office
during the past 5 years:


1962 1963

Acts -- -...--------- 145 140 146 140 133
Resolutions ................... 29 15 25 14 39

The number of applications for business licenses filed with this
office continued to increase steadily. Surveys and on-the-spot inspec-
tions continued to be conducted in cooperation with the 'department of
public safety to ensure coverage of all businesses by appropriate
The following chart shows a comparison of the licenses issued and
fees collected over the past 5 years:
Licenses issued and fees collected

1959 1960 1961 1962 1963
Li- Fees Li- Fees Li- Fees Li- Fees Li- Fees
censes censes censes censes censes

St. Thomas and
St. John ...--- 1.165 $43,918.80 1,227 $46,238.50 1,393 $51,689 1,514 $63,480 1,716 $101,592.50
St. Croix -----.... 630 21,224.20 886 30,549.00 974 34,659 922 38,474 1,034 39,176.00
Total-...... 1,795 65,143.00 2,113 76,787. 0 2,367 86, 348 2,436 101,954 2,750 140,768.50


The need for amending the existing licensing laws has become appar-
ent with the ever-increasing number and variety of businesses being
attracted to these islands, many of which are not covered by existing
statute. Recommendations designed to correct.this situation are being
prepared for the Governor's consideration and possible presentation
to the next regular session of the legislature.
Act No. 923, Fifth Legislature, approved January 25, 1963, provides
that any person doing business in the Virgin Islands under any name
other than his own, and every copartnership or association of indi-
viduals, except corporations, doing business in the Virgin Islands,
resident or nonresident, shall file in the office of the government secre-
tary a certificate setting forth the designation, name or style under
which 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. Steps were taken to imple-
ment 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 certificates of registration amounted to $860.
Articles of incorporation were filed by 197 new corporations during
fiscal 1963-24 foreign and 173 domestic-as compared with 183 dur-
ing fiscal 1962. A total of 798 corporations now exist-682 domestic,
82 foreign, and 34 nonprofit. Renewed and intensified efforts con-
tinue to weed out those corporations which are delinquent in the pay-
ment of franchise taxes or otherwise fail to meet their legal obliga-
tions. As a result, 99 corporations were dissolved during fiscal 1963.
The following comparative table reflects the increase in corporate
activity over the past 5 fiscal years.
Comparative table-Franchise tax and corporate fees

1959 1960 1961 1962 1963

Filing fees, etc.-------------.---------- $7,006.00 $12,306.09 $11,874.49 $12,458.34 $13,179.00
Franchise taxes, including penalties--..... 9,882. 50 16,657.66 16,463.50 20,127.56 38, 098.75

Comparative chart-Franchise tax corporate fees

1959 1960 1961 1962 1963

For- Do- For- Do- For- Do- For- Do- For- Do-
eign mestic eign mestic eign mestic eign mestic eign mestic

Certificates of incorporation
issued------. .-------- 5 .2 8 111 14 115 17 166 24 173
Certificates of amendments
issued ------------------..... 8 1 30 1 24 2 30 2 26
Dissolutions.. ................-- 2 .- ... 4 ... 3 2 12 4 95
Withdrawals ----..... ......- 2 --- .... ..... 2 ---.. 2 .... 5 --
Mergers------------------ -- -------......... -.. ..- -..-... 2 ----.. 3 ---.... 1
Surrender of corporate rights. ------... -------.. .... ....-----.. 3 ----- 6


Trademark and patent activity showed a decline in the number of
registrations recorded. The following is a comparative table for the
past 5 fiscal years.

1959 1960 1961 1962 1963

Original registrations----------------------------. 16 18 12 24 24
Renewals.--------------------------------------- 5 19 15 7 4
Assignments------------------------.-- ---- 2 6 8 6
Changes of name ----------------.--...-------. ----- 8 2 6 2
Mergers .........------------------- -------..-- 4 4 20 2
Design patents ...-----------. --------.---.--.. .. ----.-- 4 ..--.--- 1 1
Total actions recorded--....------- -------- 21 55 39 66 39

Total fees collected for this activity during fiscal year 1963 amounted
to $1,005.

Fees collected covering trademark and patent activity
1959 -------------------------------------------- $407.50
1960 ----------------------------__ ___ ___ -------- -1, 052. 50
1961__------------------------------------------ 810.00
1962..... -------------------------------------------------_ 1, 302. 50
1963 -----------------............._ ......------------------. 1, 005. 00

During the fiscal year, 273 passports were issued, 60 were renewed,
and 8 were extended, a total of 341 passport actions to compare with
237 for the last year. Passport fees amounted to $2,762 for fiscal
year 1963.
The maximum quota of 25 commissions of notaries public was sub-
scribed to during the year.
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 registrants during the year as compared with 14 last year. In-
surance agent's licenses issued during the year totaled 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. The following is a com-
parative table of taxes and fees collected for the past 5 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 ..--------------- - ------ 100.90 --- --
Solicitor's licenses --------- --- -- --------- 200. 00 827. 53
Gross premium taxes. ----- 5,079. 08 6, 602.95 12,316.87 12,784.86 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
Total--------------- 8, 564. 58 9,888. 45 16, 700.87 19,239. 72 22, 400. 12


Title 18 of the Virgin Islands Code, as amended, placed on the
government secretary 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. Subsequently,
the Fifth Legislature of the Virgin Islands during its January 1963
regular session passed bill No. 1800 (Act 936), approved February 20,
1963, which repealed title 18 of the Virgin Islands Code concerning
elections and enacted a new title 18. This bill provided, among other
things, for a supervisor of elections, thus removing from this office the
supervisory responsibilities over elections heretofore assigned. The
following is statistical information regarding voting since 1958, the
year the Virgin Islands Code was enacted.

1958 1960 1962
.Regis- Voted Percent Regis- Voted Percent Regis- Voted Percent
tered tered tered
St. Thomas....----------. 4,752 3,742 78. 7 5,092 3,908 76.7 5,819 4,278 73.5
St. Croix .------....-- -. 4,651 3,284 70.6 5,253 3,508 66.8 6,129 4,218 68.8
St. John..............---.-- 357 226 63.3 333 243 73.0 353 298 84.4

Banking Board of the Virgin Islands
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 by:
(1) Establishment during the fiscal year of branches of the
First Federal Savings (one each in St. Thomas and in St.
(2) Application from the Bank of Nova Scotia to conduct bank-
ing business in the islands. At the end, of the fiscal year
this application was pending final disposition by the board.
(3) Inquiries from other interest banking institutions.

Sanitary Facilities
The acute housing shortage coupled with the depletion of the
sanitary facilities fund have served to slow down the progress in the
drive to eliminate the antiquated and objectionable night-soil removal
system. During fiscal 1963, 24 loans amounting to $48,516.12 were
made for the construction of proper sanitary facilities. At the end


of the year there were 49 applications pending the availability of
additional funds.

Board of Control of Alcoholic Beverages

The board of control of alcoholic beverages prescribed and enforced
the regulations pertaining to the sale of distilled spirits. U.S. excise
taxes on rum and other products contributed $7,761,935 in revenues to
the Virgin Islands Government in 1963 on the 741,260 proof gallons
shipped in 1962.

Office of the Tax Assessor

Real property assessments and taxes have shown a remarkable in-
crease between the years 1958 and 1962. The following detailed
charts reflect the effect of the implementation of the real property
assessment program.

Assessments and taxes, 1958-62

Number of
Island bills sent Assessment Taxes

St. Thomas:
1958 -------------.----------------.-------- 3, 776 $15, 053, 900.00 $188,173. 75
1959 ----------------------------------- ----- 4,198 16,846,500.00 210,581.25
1960 ---------. ------------- ---------------- 5,377 28, 777, 774.00 359, 722.18
1961........--------- -----------------------. 5,500 28,098,747.00 351,234.34
1962.-- ------------- ------------------------- 5,744 30,148,342.00 376,854.28
St. Croix;
1958 ..---------- ------------------ 4,379 12,329,055.62 154,113.20
1959 --------------- ----------------------- 4,651 13,028,298.40 162,853.73
1960 ------------------- -------------- 4,913 30,568,144. 00 382,101.80
1961------------------ ----------------------- 5,100 28,661,753.00 358,271.91
1962 __------------- -- - -5,397 31,078,240.00 388,478.00
St. John:
1958 ---------- 5--------------------------14 662,700.00 8,283.75
1959 ---------------------------------------- 532 642,956.00 8,036.95
1960 ..----. ------- ---------------- ---- 662 1,846,734.00 23,084.18
1961 ... ..------------------------------- 703 1,981,270.00 24,765.88
1962 .....-------- -------------------------- 714 2,119,749.00 26,496.86

Homestead exemptions and tax modifications

Number of Number of .mount of of Amount of Total in
Island homestead modifica- homestead modifica- taxes
exemptions tions exemptions tions

St. Thomas:
1961 ----------------------- 800 1,661 $20,000.00 $35,442.00 $55,442.00
1962-.--- -------------------_ 989 1,378 24,274.31 23, 628.88 47,903.19
St. Croix:
1961 ------------------------ 666 2,500 25,300.00 63,131.64 88,431.64
1962 ------------------------- 990 2,188 31,830.66 42,087.73 73,918.39
St. John:
1961... ----------------110 364 2,500.00 6,600.00 9,100.00
1962.. --------------------- 120 368 2,869.75 4,407.07 7,276.82


Total assessments and taxes-St. Thomas, St. Croix, and St. John, 1958-62

Assessment Taxes before Taxes to be
adjustment collected 1

1958 .- .. .......-.----------------. $28, 045, 655.62 $350, 570. 70 $350, 570. 70
1959---.......-- ..........---------------.-------- 30,517, 754.40 381,471.-93 381,471.93
1960 ....------------------------------------ 61, 192, 62. 00 764, 908. 15 542, 249.39
1961 ------------------------------------- 58,741,770.00 734,272.13 581,598.49
1962 -----------_ ------------------------ 63,346,331.00 791,829.14 662,730.72

See Act No. 768, 4th Legislature, 1st Special Session; Act No. 834, 4th Legislature, Regular Session;
and Act No. 909, 4th Legislature, 6th Special Session; approved June 20, 1961, Mar. 15, 1962, and June 18,
1962, respectively. Act No. 768 limited tax liability for 1960 to not in excess of 25 percent more than tax
liability for 1959, excepting improvemnets. Act No. 834 provided a homestead exemption of.3,000. Act
No. 909 limited 1961, 1962, 1963, and 1964 taxes to 26 percent of the increased assessment over the preceding
years, excepting improvements.

,Office of the Recorder of Deeds

The followingis a comparative table of documents recorded during
the last 5 fiscal years.

Fiscalyear1959 Fiscalyear 1960 Fiscalyear 1961 Fiscalyeaf 1962 Fiscalyear1963
St. St. St. St. St. St. St. St. St. St.
Thomas Croix Thomas Croix Thomas Croix Thomas Croix Thomas Croix

Deeds.--------- 477 426 448 480 426 441 583 676 547 718
Mortgages..-----. 384 269 327 325 360 383 349 403 535 501
Chattel mortgages. 58 121 70 113 116 144 236 166 570 121
Conditional sales
and installment
sale contracts.... 572 ...... 863 59 886 106 1,040 161 859 437
Cancellations and
releases.--..--.... 230 233 220 240 216 401 235 352 356 383
Contracts of sale_ ---------------- 12 ..---- 27 ..
Bill of sale --. --- --- -------- ---------------- 11 155 --..
Leases...------. 17 ----- ----- -----. 18 -. 43 .... 37
Assignments------- -------- ------ -------- 35 --. 7 -
Liens --- ----- -------- ------..... 34 ---. 91 --.... 9
Adjudications-.... 14 10 18 8 24 15 21 30 31 19
Certificates of
attachment ..-- .----. ------------------ 107 ----- 113 ........ 45
Certificates of
death-.---.--- ----- ------- -- 16 5 8 2 10 11 23
Easements ...--.. 30 .-----...... --- ------. 15 -... 3 -.. 45 -..
Miscellaneous-..... 176 119 116 119 86 132 97 297 171 295
Total ---.. .- 1,958 1,178 2,062 1,360 2,221 1,737 2,730 2,208 3,353 2,542

Industrial Incentive Program

The industrial incentive program as continued by Act No. 798
continued to attract industries to the Virgin Islands. Of particular
significance was the enactment of Act No. 971, approved March 5,
1963, imposing a production tax on woolen yard goods produced and
shipped by firms granted tax exemption certificates. As of June 30,
1963, there were 85 persons, firms, or corporations holding certificates
of tax exemption and subsidies, comprised of 58 assorted small busi-
nesses and 27 hotels and guest houses which employed an estimated
2,250 employees with an average payroll of over $3 million.

Department of Education

Personnel: 649 Operating appropriation: $3,154,328
Under the guidance of a completely reorganized department, educa-
tion made significant progress during the fiscal year of 1962-63.
The board of education adopted a statement of philosophy and
objectives which set down broad guidelines for the department. This
strategic statement affirmed that "the American system of free and
universal education is the greatest safeguard of the freedom of the
people and is the best guarantee of their social and economic
It recognized the rapid changes and the need for adaptation facing
the islands, affirmed the fact that the community is committed by choice
to the United States, and committed the school system to a large scale
effort to conform its standards to those of the best educational systems
on the mainland.
The teacher-pupil ratio was reduced substantially to a systemwide
average of about 1 to 36. Although the classroom shortage continued,
the problem was greatly alleviated by new construction and remodel-
ing on all three islands, and plans were laid for further substantial
additions to the school plants in the next fiscal year.
The quality of both instruction and curriculum were upgraded and
collateral programs were expanded to provide the youth of the Virgin
Islands with extracurricular activities comparable with progressive
mainland communities.
As a result of progress made and plans for the future, it is confidently
expected that two of the Virgin Islands public high schools will
receive accreditation in the very near future.
Nonschool activities of the department also were enlarged to pro-
vide better public library service, expanded adult education oppor-
tunities, and improved vocational rehabilitation services.

The number of pupils in the public schools increased from 7,624 in
fiscal 1962 to 8,201 in fiscal 1963, a rise of 7.57 percent. It is estimated
that there will be an increase of 35 percent by fiscal 1968. The break-
down of enrollment from June 1959-63 is as follows:


1958-59 1959-60 1960-61 1961-62 1962-631

Kindergarten --...---- ------------ 420 422 426 495 544
Grades 1 through 6 ------------..___..... 4,098 4,229 4, 507 4, 740 5,089
Grades 7 through 12.-- ------------------- 1. 976 2,198 2,199 2, 3&9 2,568
Total -------------------------- 6,494 6,849 7,132 7,624 8,201
1 As of May 1, 1963, estimated enrollments indicate a 35 percent increase by 1968.

Personnel and Recruitment

In June 1963, at the recommendation of the Governor, the legisla-
ture approved a new pay plan for teachers and other professional
personnel which will provide salary increases averaging $849 per
person. The new scale raises the minimum for holders of bachelor
degrees from $4,000 to $4,600. Employees with master degrees will
start at a minimum of $5,400, instead of the previous floor of $4,800.
Ten pay increments of 5 percent each are also provided for those who
qualify. It is expected that the new pay plan will greatly strengthen
the recruitment program, as well as making jobs in education more
attractive to incumbents who might otherwise be lured away by higher
During fiscal 1963, the department operated with a total of 730
authorized positions, of which 674 were filled as of the year's end.
Authorized teaching posts were increased by 70. A number of admin-
istrative, supervisory, and auxiliary positions also were added. Sev-
eral new jobs were authorized in the bureau of recreation to imple-
ment an expanded sports program, and one counselor was added to
the bureau of vocational rehabilitation.
The unfilled positions were due to a shortage of classrooms and
lack of qualified personnel. Nevertheless, improvements in recruit-
ment were registered, and the teacher-pupil ratio was reduced sub-

Construction Program
Steady progress was made in efforts to meet the need for more
In September 1962, the modern 32-classroom Lockhart Elementary
School in St. Thomas opened its:doors to pupils and, in December,
it was dedicated by the Secretary of the Interior.
Two three7classroom primary buildings were constructed by Peace
Corps .volunteers in the spring of 1963 as apart of the group's technical
training for buildingsimilar schools in Africa.
By the end of the school year, an additional three new elementary
classrooms and nine new vocational classrooms were nearing comple-
tion in St. Thomas.

A seagoing schoolbus carries some 50 high school pupils and teachers from St. John to
St. Thomas. Above, some of the boys are seen on the foredeck enjoying their daily
cruise across waters once sailed by Sir Francis Drake on his historic expedition against
Puerto Rico.

In St. Croix, bids were invited for eight classrooms to be added to
existing schools. Plans were nearing completion for an eight-class-
room elementary school to be built at Grove Place. Under construc-
tion by year's end were one shop each and one gymnasium each at
Claude O. Markoe School in Frederiksted and Christiansted High
In St. John, a second floor of four classrooms was added to Sprauve
At the close of the year, contracts were awarded for 10 general
purpose classrooms, a gymnasium, and a music suite consisting of a
band room and a choral room at Charlotte Amalie High School.

Curriculum and Instruction
With reorganization of the department, a division of curriculum
and instruction was established. For the first time, instructional
programs were placed under the supervision of specialized bureaus of
elementary education, secondary education, pupil personnel services,
school library and instructional materials services, and research.
Competent professional staff was employed to direct the activities
of the new division and its component bureaus to coordinate curricu-


lum development, step up the inservice training program, and improve
administrative and supervisory activities.
New textbooks were selected and purchased. Report cards were
revised. Promotion policies were modernized. A social studies
framework was created for grades from kindergarten through the
senior year of high school. A modern mathematics program was
initiated. A Spanish program for fifth and sixth grades was planned
for the coming year, as was a pilot program for the mentally retarded.
An elementary course of study was drafted. Fine arts programs were
expanded in. all high schools. A central audiovisual service was in-
augurated. Counseling and testing programs were intensified, and
secondary school curriculums were expanded and improved by master
At the request of the history committee of the department, a project
was instituted to write a textbook to be used in teaching history of the
Virgin Islands. The text was completed and&published.

Survey of Public Education
New York University agreed to conduct a survey for evaluation and
analysis of every aspect of education in the Virgin Islands and to
make recommendations for future growth and development.
Following close on the heels of a 2 year "crash program" of educa-
tional improvement, this survey is expected to be of tremendous value
for advanced planning. A report of findings and recommendations
is expected by December 1, 1963.

Accreditation of Secondary Schools
A. program to achieve accreditation for the islands' secondary
schools was launched in fiscal 1962 and continued during the past year.
After a year and a half of local preparation and self-evaluation,
three teams of off-island educators came to the Virgin Islands to eval-
uate the secondary schools in March 1963. Subsequently, they reported
their findings to the Secondary Commission of the Middle States
Association of Secondary Schools and Colleges.
The evaluation- reports commended the progress of the schools in
many areas and made recommendations for improvement. As prog-
ress continues, Virgin Islanders may look forward to accreditation of
two of their high schools in the very near future.

Unification of School System
Geographical and other differences in the makeup of the three U.S.
Virgin Islands have fostered a historical separation of their schools.


To overcome this and coordinate the programs of all the schools, a
comprehensive program of insular communication was inaugurated.
As part of this program, teachers, supervisors, principals, and other
administrators traveled between islands regularly to meet and discuss
systemwide problems. Special projects such as report card revision,
textbook selection, and review of promotional policies were mutually
agreed upon through study by interisland committees.

Auxiliary Services
The school lunch program, which provided free lunches to some
7,000 pupils daily, continued to be one of the most successful auxiliary
services. This program assures that every Virgin Island boy or girl
of school age can obtain at least one healthy, nutrition meal each day.
The school lunch program operates with a staff of 110 people on a
budget of $364,827.
To improve the service, two summer workshops were held for the
employees during the year, and principals were placed in charge of
the lunch program in their respective schools.
From September 1962 through May 1963 a total of 1,043,837 meals
were served at a cost of $273,630.69.
During fiscal 1963, transportation.was provided to a daily average
of 1,522 pupils on all three islands. The department does not operate
its own schoolbus system, but pays commercial bus companies on a
contract basis for the service. For the past fiscal year, this service
cost $101,226. As the demand for expanded schoolbus service in-
creases, the department is studying the desirability of a department-
operated system. It is estimated that such a system would reduce the
cost of pupil transportation by one-third after the initial cost of
equipment has been met.

Sports and Recreation
Sports and recreation both within and outside the school system
received new impetus from the appointment of a sports promoter in
the department. The first track meets held in the islands for many
years were received with enthusiasm. Promotion of other major
sports, involving many more participating athletes, kindled new com-
munity interest and revitalized organized athletics. The return of a
highly qualified Virgin Islander to the post of recreation chief toward
the close of the year is expected to give a new lift to sports and
recreation on all three islands.


Vocational Education and Out-of-School Training
A program of vocational training in each of the three high schools
met with increasing popularity with the students, as did adult classes.
The year saw the largest number of vocational graduates since voca-
tional education was introduced into the islands. It was significant
that three of the top six students in the graduating classes were voca-
tional students, and several others walked away with other honors.
The first inschool training in hotel service was started during the
year, and retail sales courses were reintroduced. Both these programs
went very well and are expected to provide a more efficient pool of
talent for the Virgin Islands tourist industry.
The boys in the vocational program at Charlotte Amalie High
School completed a two-bedroom cottage which was begun as a part of
classwork 2 years ago. This cottage will be used as a home economics
laboratory as part of the training facilities for the community's
future homemakers.
In cooperation with the Virgin Islands Employment Service, proj-
ects were planned for programs to be initiated under the manpower
development and training act. Pilot projects were designed for St.
Thomas. Courses.progressing satisfactorily are for training of nurse-
aid-ambulance-attendant and clerk-typist. Classes meet Monday
through Friday, 4 hours per night for a stipulated maximum number
of hours. Upon completion of the programs, each student will be
given-a certificate and be referred to the employment service for job

Vocational Rehabilitation
Financed jointly by Federal and local funds, the bureau of voca-
tional rehabilitation offers services to physically handicapped adults.
During fiscal 1963, there were 121 cases in referred status. Of
these, 29 were accepted for service, leaving a total of 92 still in referred
status. Of an active case load of 82, 32 were closed as rehabilitated.
They were placed in jobs suitable to their interests and abilities.
One case was closed before rehabilitation could be completed. Of
the 49 cases in active status, 10 were ready for employment and 4 were
The sheltered workshop in St. Croix continued successful work with
the severely disabled and aged. Fifteen clients are working in the
shop, and the demand for items they make far exceeds the supply.


Public Libraries

Three public libraries are administered by the department of educa-
tion through its bureau of libraries. During fiscal 1963, they served
more visitors and circulated more books than in any previous year.
The number of calls by adults increased from 6,250 to 7,000, and
visits by juveniles rose from 13,500 to 15,000. Total circulation
increased from 41,563 to 85,345.

Business and Auxiliary Services

The division of business and auxiliary services provided logistic
support for the educational programs of the department. Though
limited by personnel problems, this division carried on its work in
four major areas: (1) business and accounting section, (2) property
and procurement section, (3) school lunch program, and (4) auxiliary
services, maintenance, and transportation.


The -department of education enjoyed the most adequate budget
it has ever had in fiscal 1963. The total available for operations
amounted to $3,478,299.13.
The breakdown of local and Federal contributions for operations
A. Virgin Islands appropriation-Fiscal year 1962-63:
Division Appropriation
Administration------------- --- ------ $266, 600. 00
Educational programs -- ------------- --- 2, 574, 881. 00
Community programs:
Public recreation----------- --------------_ 194, 333. 00
Public libraries.and museums--------------- 99, 764. 00
Vocational rehabilitation ----------- 18, 750. 00

Total------ ---------------------- 3, 154, 328. 00
B. Federal matching funds and grants-1962-63:
Activity Amount
National Defense Education Act (Titles III, VA, and X) $59, 181. 62
Vocational education ..---- --------------------- 55,406. 50
Rural libraries -- ------------------- 6,382. 00
School lunch ----- ---------------------- 48, 917. 00
Special Federal grant (874) ---------------------------- 108, 841. 00
Vocational rehabilitation .---.----------- 45,243. 01

Total------------------ ------ --- 323, 971. 13

721-848 0 64- 3


C. Total funds available-1962-63:
Virgin Islands appropriated funds---- ----------- $3,154, 328. 00
Federal matching funds and grants -- ----------- 323, 971.13

Total ---------------------------3,478,299.13

5-year comparisons
1958-59 ---------------------------------$1,428,860
1959-60----------------------------------------- 1,858,807
1961-62 -------------------------------------------------- 2, 574, 418
1962-63---------------------------------------------------- 3,154, 328

College of the Virgin Islands

Following enabling legislation early in 1962, the board of trustees
took office in August of that year and, in September, appointed the
institution's first president.
The fiscal year 1962-63 was a period of organization, culminating at
year's end in a fully staffed institution, ready to open its doors to
the first class. The new president arrived in St. Thomas in January
1963, and took over the job from an interim administrator who had
been doing the preliminary work of preparing the campus site at
facilities formerly occupied by a U.S. Marine Air Detachment.
Faculty and other staff members were recruited. Two buildings
were renovated to serve as classroom-administration building and
provisional student center. In less than 6 months, the college ad-
ministration, with the help of various government and private agencies
and broad public support, was ready to receive the first class. Indi-
cations were that there would be about 45 full-time freshmen and
some 200 part-time students for the first term.
Half the college's faculty holds Ph. D. degrees from leading uni-
versities. The curriculum has been worked out on a basis that will
make credits acceptable to leading colleges and universities when
transfer is made. It is expected that a number of the top mainland
institutions soon will grant such recognition.

Development Program Beginning
Plans for the college's second year call for a full-time enrollment of
100, a faculty doubled in size, an expanded evening program, and
the completion of a new dormitory and a library designed for 80,000
volumes. The third new building scheduled for erection is a com-
munity cultural center, which will contain a variety of facilities for
instruction and performance in the arts.
From its beginning, the board of trustees of the college has been
committed to the idea of a college which will serve both the needs
of the Virgin Islands and appeal to students from abroad-particu-
larly the continental United States, other Caribbean islands, and
Africa. Through such an intercultural educational community, it is
felt that the most productive climate for higher learning can be cre-
ated in the Virgin Islands.


At present, the college offers 2-year transfer liberal arts programs
in science and mathematics, engineering, teacher education, social sci-
ence, and the humanities. It also offers 2-year terminal occupational
programs in business management, accounting, hotel and resort opera-
tion, executive secretarial studies, electrical and electronics technology,
and construction technology; nursing will be added next year. The
college grants the associate in arts degree.

Four-year Courses Soon To Be Offered
While believing that these 2-year programs will provide the
soundest basis for the college's establishment, the board is also plan-
ning to extend one or more of the curricula to 4-year status at an
early date. Because of the critical need for better preparation of
teachers in the Virgin Islands and the Caribbean, the program in
teacher education is the first one to be considered for such advance-
ment, now projected for 1964-65.
Among the program goals of the college, two are especially worthy
of note. The college plans to establish a Caribbean Affairs Institute
within the college's first year and expects to appoint its director
shortly. The institute would undertake sponsored research on Carib-
bean problems, coordinating its activities with related research under-
takings at the University of Puerto Rico and the University of the
West Indies. Another project scheduled for early development is
an international training center. The center might devote itself,
among other activities, to the training of staff and field administra-
tors for community development programs. The first phase of this
development took place during January and February of 1963, when
the college played host to a large Peace Corps group preparing for a
school-building assignment in Gabon, West Africa.
The successful establishment of the first institution of higher learn-
ing in the Virgin Islands promises to enrich greatly the most im-
portant resource of the territory-its people.

Department of Health

Personnel: 586 Operating appropriation: $2,991,843
The state of health for the year was generally good, except for a
short-lived epidemic of diarrhea affecting about 130 children in St.
Thomas during February and March. There were no other serious
outbreaks of any kind. There was an overall improvement in mor-
tality statistics, with the death rate reaching a new low of nine per
thousand population. The infant death rate was 29.1; neonatal death
rate, 20.4; maternal death rate, 0; and fetal death rate, 35.6. There
was an increase in live births from 1,194 in 1961 to 1,375 in 1962, rais-
ing the birth rate from 34.7 to 38.8 per thousand population.
Services were expanded and improved, as new additions were
made to the staff. An internist, orthopedic surgeon, and assistant
obstetrician were added in St. Thomas. Toward the end of the year,
a radiologist, surgeon, obstetrician, pediatrician, and anesthesiologist
were added in St. Croix. The house staff on each island was in-
creased. In public health, a school psychologist and a regular
psychologist joined the bureau of mental health. A parasitologist
was added to strengthen the attack on parasitic infection. The home
care program was augmented with the services of a physical therapist,
and a health educator was added to meet an urgent need in.the field of
maternal child health and crippled children. Increasing needs for
departmental services were felt in almost every facet of work, as
exemplified by an increase of 14.5 percent in surgical operations at
Knud Hansen Memorial Hospital in St. Thomas.
Significant improvements and extension in program were achieved.
The cancer detection program was intensified. Clinics were orga-
nized to mount a full-scale attack on parasitic infection. The school
health examinations were completed. A team from Columbia Univer-
sity wound up its project .for standardization of intelligence tests in
the Virgin Islands. An inservice training program was conducted
inpublic health, and plans were made for inservice training of sani-
tarians in July 1963 and July 1964. Seminars in the care of pre-
mature infants were held-by a staff member of the Cornell University
Medical School. Nurses for maternal and child health and crippled
children's services were trained at Teachers College of Columbia
University. The operating room supervisor of the St. Thomas hos-
pital took a refresher course at Grace New Haven Medical Center.


Hospital and clinical facilities were expanded and improved. The
new laboratory was occupied at the Charles Harwood Memorial Hos-
pital in St. Croix, providing a significant improvement in that service.
Extensive remodeling at that hospital made space for a new pediatric
service, with attached play area, in the former outpatient area. The
emergency room and X-ray division were completely renovated and
modernized. By the close of the year work had been almost finished
on additions to cistern capacity, cold storage facilities, solarium, and
supply areas.
In St. Thomas ground was broken for new quarters for the hos-
pital's house physicians, and installation of a new high-pressure
boiler was begun. Work was also started on complete remodeling
and reassignment of third floor areas to provide extra beds for the
hospital's general surgical and medical patients.
Plans were initiated and an appropriation was made for studies
leading to the design of modern new health facilities including a 200-
bed hospital in St. Thomas and a 200-bed hospital in St. Croix.
In St. John, a complete renovation and remodeling of the Cala-
bash Boom Clinic was started, and final plans were made for new
nurses' quarters.
To improve public health facilities, the clinics at French Town and
Dorothea in St. Thomas and at Grove Place in St. Croix were thor-
oughly remodeled. Also, on St. Thomas, additional remodeling of the
old hospital buildings provided more adequate space for such pro-
grams as nutrition, mental health, and parasitology.

Vital Statistics for 1962
Once again, a new live birth record was established. The calendar
year of 1962 welcomed a total of 1,375 infants. This was an increase
of 181 over the previous record of 1,194 in 1961. The birth rate was
38.8 per 1,000 estimated population. St. Thomas was the chief contrib-
utor to the population, with 776 live births as against 661 in 1961. For
St. Croix, the total was 559, compared with 505 in 1961. In St. John,
40 live births was the highest for that island since 1919 and a marked
increase over the 28 reported in 1961. Twenty-four births to St. John
mothers occurred in St. Thomas but were credited to St. John.
In St. Croix, 95.3 percent of all live births occurred in hospitals; in
St. John, 97.5 percent; in St. Thomas, 99.4 percent. The figure for
all three islands was 97.7 percent.
In 1962, the number of deaths decreased for the second straight
year. There were 321 deaths for a rate of 9 per 1,000 estimated popu-
lation, the lowest on record for the Virgin Islands. In 1961, there
were 326 deaths for a rate of 9.5. In St. Croix, there were 155 deaths


for a rate of 9.8, a decrease from 1961 when there were 164 deaths and
a rate of 10.6. .In St. John, there were 10.deaths in both years, with
a.rate of 10.3 in 1962 as compared with .10,5 in 1961. There-were 156
deaths in St. Thomas, with a rate of 8.4. This was a slight increase
over the 152 deaths in 1961, but the rate remained the same-8.4.
Of deaths in the Virgin Islands, 25 were nonresidents, 8 occurring.in
.St. Croix, and 17 in St. Thomas.
For the Islands, 45.8 percent of all deaths were.of persons 65 or
more years old. The figures for St. Thomas and St. Croix were 41.6
percent and 51.6 percent respectively.
Age distribution by percentage of total and leading causes of death
Age distribution

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

Total Percent Total Percent tTotal Percent

Total.---------------------------- 321 100.0 155 100.0 166 100.0
Under 1 year.------------------ -------- 40 12.5 14 9.0 26 15.7
1 to 4 years.----.-- -------------------- 14 4.4 7 4.5 7 4.2
5 to 14 years ---------------------------- 4 1.2 0 0 4 2.4
15 to 24 years --------------------------- 14 4.4 10 6.4 4 2.4
25 to 44 years...-----------. ----------.. 31 9.7 13 8.4 18 10.8
45 to 64 years.....------......... .--------- 70 21.8 30 19.4 40 24.1
65 to 74 years -------- ----------- 55 17.1 30 19.4 25 15.1
75 years and over -------- ---------- 92 28.6 50 32.3 42 25.3
Age unknown ........-------... -------- 1 .3 1 .6 0 0

Leading causes of death-Virgin Islands

Number Rate 1 Percent of
all deaths

Diseases of the heart. -------------- ---------------------- 83 234.3 25.9
Malignant neoplasms------------------------------------------ 33 93.1 10.3
Cerebral hemorrhage and other vascular lesions affecting central
nervous system-------------------------------------------- 32 90.3 10.0
Certain diseases of early infancy -- --.------------------------------ 24 67.7 7.5
Accidents-..--.-------.------------------------- 16 45.2 5.0
Arteriosclerosi ...---.----------- ----------------------- 15 42.3 4.7
Pneumonia.............. -- ....----------------------------- 15 42.3 4.7
Diabetes mellitus -- ....------------------------------- --- 13 36. 7 4.0

1 Rate per 100,000 estimated population.

A marked reduction in infant mortality was registered for 1962.
Forty infant deaths established a rate of 29.1,. as compared with 50
infant deaths and a rate of 41.9 per 1,000 live births in 1961.
For St. Croix, there were 14 infant deaths and a rate of 25.0 as
compared with 21 infant deaths with a rate of 41.5.in 1961. St. John
reported no infant deaths in 1962. In St. Thomas, there were 26
infant deaths with a rate of 33.5. This was a slight improvement over
1961 when there were 28 infant deaths and a rate of 42.3. The lead-
ing causes of infant deaths for the Virgin Islands were as follows:


Number Rate 1 Percent
of total
Asphyia and stelectasis..............--------------- ------------ 10 7.3 25.0
Pneumonia (all forms) -------------.... -----------------.- 9 6.5 22.5
Prematurity--- .--------------------------------- 6 4.4 15.0
Congenitalheartdisease----------------------------------------- 5 3.6 12.5
1 Rate per 1,000 live births.
Of the 40 infant deaths, 28 or 70 percent were neonatal deaths in
1962, as compared with 31 or 62 percent in 1961. St. Croix accounted
for 8 neonatal deaths, or 57.1 percent of the infant deaths on that
island, while St. Thomas had 20, or 76.9 percent of infant deaths.
There were 49 fetal deaths in 1962 for a rate of 35.6 per 1,000 live
births. This compares with 50 and a rate of 41.9 in 1961. In St.
Croix, there were 20 fetal deaths, and in St. Thomas 29 fetal deaths
with a rate of 37.4 per 1,000 live births.
Of fetal deaths reported, five were fetuses under 20 weeks gestation,
and three with gestation period not stated.
There were no maternal deaths reported in 1962.
In 1962, there were increases in both marriage and divorce figures.
There were 422 marriages, compared with 397 in 1961. There were
180 divorces for 1962, as against 152 for 1961. No annulments were
reported in 1962.
Of the marriages dissolved, 75 or 41.7 percent had been performed in
the Virgin Islands.
There were eight adoptions in 1962, compared with three in 1961.
Population estimates for health statistics are based upon natural
increase. Account was taken of the fact that the U.S. Immigration
and Naturalization Service reported approximately 3,500 to 4,000 con-
tract workers in the Virgin Islands on July 1, 1962. Most of these
were included in earlier estimates, and it is assumed that the additional
ones more than compensate in number for people who leave the islands.
For the Virgin Islands, the estimated population is 35,430; for St.
Croix, 15,878; for St. John, 968; for St. Thomas, 18,584.

Printing and Graphic Section

The photographic darkroom of this section was completely equipped
and air-conditioned. A total of 369 jobs were processed, of which
309 were for the department of health, 21 were for other governmental
agencies, and 39 were community projects.

Health Scholarships
The nursing education scholarship committee granted awards to 14
former students of the high schools of the Virgin Islands, totaling


Division of Hospitals and Medical Services
St. Croix
The Charles Harwood Memorial Hospital in Christiansted and the
Ingeborg Nesbitt Clinic in Frederiksted handled a total of 2,549 admis-
sions resulting in 22,721 inpatient days. The heavy workload long
evident in St. Thomas now exists in St. Croix. However, an aggres-
sive effort was made to step up recruiting and budget for the employ-
ment of additional staff, both professional and subprofessional. At
year's end, arrangements had been completed for employment of a
radiologist, surgeon, obstetrician, pediatrician, and anesthesiologist
for the medical staff in St. Oroix.
At this writing, final plans are being made for the addition of a 12-
bed unit to the clinic in Frederiksted and the erection of a combined
maintenance shop and motor pool facility to accommodate activities
now temporarily crowded into the ground floor of the Christiansted

St. Thomas

The Knud-Hansen Memorial Hospital in St. Thomas admitted 3,455
patients during fiscal 1962-63,.the largest number of admissions in any
year since its opening in 1953. Outpatient clinic visits, .including
both hospital and.public health services, numbered 34,305. Visits to
the emergency room reached an all time high of 9,271, while the emer-
gency nursing staff administered some 28,916 treatments on orders of
the full-time house physicians. The medical records room. handled
over 56,000 requests for patient -records.
Plans for constructing a new surgical wing atop the hospital were
abandoned when it became evident that this would not satisfy equally
urgent needs for expansion and modernization of the auxiliary facil-
ities. The medical and surgical ward added four beds by taking over
the pediatric playroom. To further alleviate pressing needs, plans
were drawn to construct a four-apartment building to house the house
physicians on the hospital grounds. The long unused portion of the
tuberculosis ward will be transferred to general service use, -adding
some 16 beds.
The hospital recorded 820 surgical operations, of which 387 were
.classified as major. The surgical staff includes three full-time sur-
geons, one ophthalmologist, and two surgical consultants. The ortho-
pedic service was increased by the return of one doctor following train-
ing in orthopedic surgery on the mainland. With his return, a weekly
orthopedic clinic on St. Croix was scheduled.


There were 50,649 laboratory examinations, all performed by one
supervisor, two technicians, and one assistant technician. A quali-
fied Virgin Islander was appointed laboratory supervisor during the
year, and an additional medical technologist has been authorized.

Neuropsychiatric Services
The neuropsychiatric unit of the Knud-Hansen Memorial Hospital
has had a thorough facelifting in its facilities and as a consequence
has been able to render improved services along modern patterns.
Improvements were made possible through cooperation and donations
by private individuals and the St. Thomas Mental Health Association.
Approximately 800 outpatient clinics were held.
For inpatients, regular occupational therapy has been introduced
by employment of a full-time occupational therapist. The new
facilities and improved atmosphere of the recreational therapy unit
have led to more diversified activities.

St. John
Services on St. John were expanded, with 6,100 visits recorded
at the two clinics. House calls by the resident physician numbered
460. The clinic at Calabash Boom is undergoing extensive renovation
to provide better facilities for that area. The problem of obstetrical
service on St. John is being temporarily alleviated by health educa-
tional measures and personal appeals to the mothers to have their
babies in the St. Thomas hospital. The St. John clinics are not
staffed or equipped to provide 24-hour care of acceptable standards.
Transportation will be improved with the delivery of a new ambu-
lance in the fall of 1963.

Division of Public Health Services
Progress of public health services in any community depends upon
improvement in many related fields such as housing, education, sani-
tation, and citizen attitudes toward health. Fiscal 1963 saw numerous
improvements in these related fields.
A program of cooperation with the faculty of the Michigan Uni-
versity School of Public Health was carried on during the year.
Groups from the division of public health services which benefited
were health education, public health practice, nutrition, public health
nursing, environmental sanitation, business administration, and medi-
cal social services.
Recently, the community has been afflicted by small outbreaks of
entero-pathogenic E. coli infection. It has been noted that infants
and children suffer symptoms of this infection, whereas infected


adults show no symptoms but probably become carriers. Major
parasitic disorders such as ascariasis and amoebiasis are being at-
tacked with a new parasitic control program. A full-time parasitolo-
gist has been employed. He works closely with clinic physicians and
public health nurses to combat parasitic disorders through the team
For several years, health problems affecting both the American
and British Virgin Islands have been discussed widely in the Inter-
Virgin Islands Conference. At the last meeting, a subcommittee
was- formed, consisting of members from the Department of Health
of St. Thomas and Tortola and administrative officers of both islands.
The committee reviewed the many basic problems involving immigra-
tion, immunization and emergency care of aliens. Special study was
made of the problem created by the increasing number of alien
maternity cases attended at Knud-Hansen Memorial Hospital in St.
The public health services participated in a juvenile delinquency
conference in close cooperation with the youth council. Several rec-
ommendations were presented for the psychological testing and
evaluation of juveniles who show tendencies toward delinquency.
Psychiatric services have been a regular part of this program.

Bureau of Health Education
The bureau has continued to stimulate interest in health matters
among citizen groups. Areas stressed particularly during the fiscal
year included accident prevention, screening for cervical cancer,
"clean-up" activities, dental health, heart disease, immunization, in-
testinal parasite control, and periodic physical examinations.
The bureau responded to many requests from schools and other
agencies for films and literature, particularly on dental health, nutri-
tion, and venereal disease. Addition of another health educator, now
assigned to the maternal and child health and crippled children's
program, will help develop more effective health education services
to the schools.
In addition to radio, television and personal presentations, the
bureau has conducted film programs for the health department staff,
other governmental agencies, schools, and civic groups.

Public Health Nursing
An increased load has been placed on the public health nursing
staff by expanding programs such as the papanicolau screening pro-
gram for cervical cancer control, the home care program and the


parasitology control program. Population shifts in the islands have
necessitated substantial revision of nursing districts. The increase
in field clinic sessions is making necessary further additions to the
nursing staff.
A closer working relationship was developed with health education,
mental health, medical social services, sanitation, social service, and
child welfare. There has been marked improvement in referral of
patients among these services, resulting in better care and solution
of some mutual problems of long standing.

Bureau of Mental Health
One of the bureau's original goals was realized when standardi-
zation of psychological tests for the Virgin Islands was completed
by a Columbia University team. The test project known as VISIT
(Virgin Islands Standardization of Intelligence Tests) was a major
project of the year. Another highlight was a cooperative program
with Cornell University dealing with patterns of child development
and personality structure of the Virgin Islands child.
In cooperation with the department of education, a mental health
program was initiated in the schools. The bureau sponsored a series
of group development seminars for staff members from the depart-
ments of education and health, as part of the mental health inservice
training program.
Steps have been taken toward establishment of a diagnostic and
treatment center for the mentally retarded. A census of retarded
children has been maintained by the bureau for 4 years and case
finding continues as a regular function of the clinic team.
The bureau of mental health entered into a contract with the
College of the Virgin Islands to conduct research. One project will
be a longitudinal study of the first class admitted to the college.

Bureau of Dental Health
Increased services of the bureau were made possible by addition to
the staff of a dentist in Frederiksted, a dental assistant and a clerk-
stenographer in St. Thomas. The clinic load shows a steady increase.
Administrative visits to St. Croix and St. John have helped to
coordinate programs in the three islands. A survey was conducted at
the Lockhart School, Lincoln School, Dober School, and Nisky School
to determine the effect of fluoridation on the dental health of children
who drank sodium-treated water. A definite beneficial effect in caries
reduction rate was observed in children who drank the fluoridated
water. A similar fluoridation project is recommended for the Chris-
tiansted elementary schools.


Bureau of Environmental Sanitation
Water supply, sewage disposal and substandard housing continued
to cause the most troublesome environmental health problems during
the 1962-63 fiscal year. More modern housing, both public and pri-
vate, must be-provided to facilitate slum clearance and eliminate the
antiquated night-soil removal system.
A minimum of nine samples, of water are collected weekly from the
potable water systems of St. Thomas and St. Croix for testing. Indi-
vidual water supplies of all business establishments, schools, and
government buildings serving 50 or more people per day are batch
chlorinated once a week. Samples for bacteriological analysis are
taken from these systems regularly.
Milk now produced in the Virgin Islands is of good quality, with
a standard plate count of less than 3,000 and a coliform count ranging
from 0 to 3 per milliliter. Pasteurized milk also is imported from
dairies in Puerto Rico, and St. Thomas now is receiving portions of
its supply from St. Croix. Both milks are sanitary and of good
quality as processed in the plants. However, refrigeration during
shipment remains a problem.
Two hundred and eight restaurants, taverns, bars, hotels, and other
eating and drinking establishments~were routinely inspected in St.
Thomas. Twenty-two were inspected in St. John and 116 in St. Croix.
Addition of new "packer" type trucks resulted in extension of the
garbage and refuseecollection service.

Maternal Child Health and Crippled Children's Services
The administrative staff of thedivision was expanded during the
fiscal year to provide offices in Christiansted and Frederiksted on St.
Croix and also on St. John. A full-time health educator also was
The services to premature infants were reviewed by a pediatric
consultant from Cornell University,-who conducted seminars on "New-
born Care of Prematures" in St. Thomas and St. Croix. A doctor-
nurse team was sent to the mainland to attend the Premature Institute
at Cornell.
Most of the buildings used from clinic purposes underwent exten-
sive repair and renovation, with new equipment added.
Service in specialty clinics was increased. Additional orthopedic
clinics were established in St. Croix. Services of the orthopedist were
increased from 12 to 18 sessions. The ophthalmology clinic in St.
Croix was set up on a regular referral basis. Referrals for services
not available in the Virgin Islands also increased over previous years.


School health examinations were conducted in selected grade through-
out the islands, with followup services for defects found.
Information gathered at the biennial conference for maternal child
health nurses held in California will be helpful in the local program
which is expected to get underway soon. The division staff also took
active roles in the conference held locally regarding this problem.

Division of Veterinary Medicine

The control and eradication of animal diseases constitute the prime
responsibility of the division. Operation of the abattoirs in St. Croix
and St. Thomas was transferred to the department of agriculture and
labor during the fiscal year.
A program of brucellosis testing in St. Croix was completed, and
it is expected that all three Virgin Islands now will be declared bru-
cellosis free. At the moment, the State of New Hampshire is the only
area under the American flag to be so designated. To keep the islands
free of this disease, the following measures were taken: careful
screening of imported cattle, ring tests on all milk samples quarterly,
collection of blood samples from abattoirs, and periodic blood testing
of all cattle. The Federal Quarantine Division has assisted in the
inspection of animals imported from the British Virgin Islands.
Numbers brought in during the year were 586 cattle and 1,440 goats
and swine.
The dairy industry in St. Croix has shown amazing development.
Production has exceeded 4,000 quarts a day.

Summary of vital statistics, Virgin Islands and each island: 1961 and 1962
[Birth and death rates per 1,000 population. Infant and neonatal death rates and fetal death ratios per
1,000 live births]

1962 1961

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

No. Rate No. Rate No Rat e No. Rate No. Rate No. Rate No. Rate No. Rate

Live births -...- -. 1,37 38.8 559 35.2 40 41.3 776 41. 8 1,194 34.7 505 32.6 28 29.5 661 36.7
In home ..-- 32 12.3 26 14.7 1 12.5 510.6 37 13.1 24 14.8 8128.6 5 10.8
In hospital ----. 1,343 197.7 533195.3 39197.5 771 99.4 1,157 196.9 481195.2 20171.4 656 99.2
Deaths....----------- 321 9.0 155 9.7 10 10.3 156 8.4 326 9.5 164 10.6 10 10.5 152 8.4
Infant deaths ---.... 40 29.1 14 25.0 0 0 26 33.5 50 41.9 21 41.5 1 35.7 28 42.3
Neonatal deaths...... 28 20.4 8 14.3 0 0 20 25.8 31 25.9 10 19.8 0 0 21 31.7
Maternal deaths.... 0 0 0 0 00 1 0.8 1 1.9 00 0
Fetal deaths ..-.. 49 35.6 20 35.8 0 0 29 37.4 50 41.9 18 35.6 2 71.4 30 45.4
Morriages..-.. ---... 422 . 169 ----- - 253 .... 397 ... 142 -....-- .--- 255 --
Divorces ------..... 180 .... 48 --.- 2132 152 ----- 37 ----------- 11 ...
Adoptions........ 8.....--- 0 - --- 3 ..... 0 ... .-- ----. 2 3

1 Percent of total for home and hospital.
2 Includes St. John figures.
8 Includes 1 annulment for St. Thomas.


Department of health -statistical data, for year ending June 30, 1963

Charlotte Christiansted Frederiksted

Number of hospital beds---------------------------...... 1119 60 10
Number of bassinets------------------- ---------------- 23 10 4
Maximum occupancy----------------------------------- 135 7 18
Minimum occupancy..-------------------------------- 83 25 4
Average occupancy.----------------------------------- 88 51 11
Number of physicians----------------------------------. 17 16 3
Number of graduate nurses- ------.. -----..... ----------34 25 7
Number of practical nurses---............-------------- 29 16 4
Number of nurses' aides --............------------.. .. 35 28 4
Number of orderlies------------------------------------ 9 5 _
Stillbirths in hospital---------------.--------------- 28 26 3
Live births in hospital --- -------.......... .. 784 595 188
Births out of hospital- -- -------.-- ------------- 12 31 12
Deaths in hospital.--- --------------- --------- 110 104 25
Deaths out of hospital.......----...---....... --......-- 15 49 26
Patient days in hospital------..............------..... 37, 388 18,545 4,176
Clinic visits------........... .-------------- ---------. 34,305 21, 436 12,531
Number of emergency room visits------------- --------- 9, 271 5, 989 2,735
Major surgical cases--------------------------- 387 184 .. ---
Minor surgical cases-....--...--- ..........-----.---.- 433 292 272
Number of X-ray examinations --.......---.....---- --- 6, 448 2, 665 544
Number of laboratory examinations-----... -------... --. 50, 649 39, 772 16, 188

I Includes 56 beds for insular T.B. and N.P. patients.

Division of hospitals and medical services-Summary comparison of services
and earnings, fiscal years 1961-63

Total fiscal-

1961 1962 1963

Receipts for the year:
Hospital collection offices.. ----------------------. ---- $88,640 $198,923 $208,718
Payments for contractual services rendered Federal pro-
grams.--- ----. -------.---- --------- --- ------------ 108,000 160,999
Payments based on statistical information---------------- 158,904 80,875 .. ---
Total receipts---..------------------------- ---- 247,544 387, 798 369,717
Services rendered:
Room and board --------------------------- 281,113 400,208 540,829
Surgical operations.... ---------------------- 24,090 30,315 31,498
Dental services-----------------28, 714 41,497 33, 565
Drugs and medicines................--------- -------- 58,268 49,965 59,104
Physiotherapy.... ------ -------------- ---1,109 1,078 5,322
X-ray services ----- --------------- 23,716 29,157 21,459
Ambulance services. .---- -------------- 1,057 1,020 552
Laboratory services .------------------------- 43,893 75,853 63,730
Examinations ------------- -- 32,892 64, 35 54, 087
All other services. ------ ------------------- 36,408 39,604 33,928
Gross earnings. -- ---- ----------------- 531,260 733, 082 844,074
Less free services---------------- 250, 544 329,842 497, 279
Net earnings .--------- --------------------- 280,716 403, 240 346, 795
Less receipts (line above) ------ ----------------- -247, 544 387, 798 369,717

Additions to accounts receivable.-- ------ ------------- 33,172 15,442 (22, 922)


Virgin Islands Department of Health-Comparative statistical data

1958-59 1959-60 1960-61 1961-62 1962-63

Number of admissions.....---------------------- 2,978 2,878 3,078 3,388 3,455
Patient days in hospital ---- ---------------- 39, 564 40, 631 33, 081 34,574 37,388
Number of clinic visits.-----.........-----------..28,372 19, 934 20, 703 23, 017 34, 305
Number of emergency room visits-........_--------. 4,441 5. 720 7,616 7,949 9,271
Major surgical cases ----------------- ------ 271 263 274 320 387
Minor surgical cases--------------- 410 279 347 398 433
Number of X-ray examinations.--------.. ----. ----- 3,722 4,339 5,239 6,448
Laboratory examinations---..---... ---------------....---- 40,968 42, 800 52,108 50, 649
Number of physicians-...-.----..- -....- --------. 10 11 10 12 17
Number of graduate nurses...--- ----------- 25 14 28 26 34
Number of practical nurses..------- ---------- 18 17 17 26 29
Number of nurses' aides------- ------------- 29 41 34 34 35


Number of admissions ----------------------------- 2,069 1,976 2,208 2,185 1,998
Patient days in hospital -------------------------. 21, 556 17, 929 18,697 19, 858 18, 545
Number of clinic visits -------- 19,366 14,323 15,789 11,196 21,436
Number of emergency room visits ..---------------------------------..--------- 4,520 5,989
Major surgical cases ---- -------------- 277 189 245 241 184
Minor surgical cases -- ---------------------- 198 369 239 292
Number of X-ray examinations ------------------- 2,146 2,497 2,629 2,872 2,666
Laboratory examinations -------- --------- 31,575 33,428 33,774 38,171 39,772
Number of physicians ---------------------------- 7 6 9 9 16
Number of graduate nurses------------------------- 22 23 24 27 25
Number of practical nurses...---------------------------------- 8 7 17 16
Number of nurses' aides .--- ----- ---------------------- 22 22 23 28


Number of admissions-.....-------.. ---.--.. ...----. 708 592 608 644 551
Patient days in hospital. ------------------------ 3, 983 4, 891 4, 728 4, 506 4,176
Number of clinic visits....-----... .---------------. 9,877 7,923 10, 188 10, 443 12, 531
Number of emergency room visits ....-----....---- ----------....--.. .. ......- 1,964 2, 735
Major surgical cases-------------------------------- ---------- -------- --- ---
Minor surgical cases.................------...........-------------------------- ----........------....---..--------------- ......--- 272
Number of X-ray examinations-- -------------- -------------------- 288 394 544
Laboratory examinations--............------------.. -------.. --- - 7,508 17,633 16,188
Number of physicians..--------------------------- 2 3 3 3 3
Number of graduate nurses. ..-------------------. 8 7 7 8 7
Number of practical nurses------------------------- 4 4 4 4 4
Number of nurses' aides---------------------------- 2 2 4 4 4

Department of Social Welfare

Personnel: 145 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 0-64---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 to the 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 SO, 1963

St. Croix St. Thomas Total

In home-of parents ... -------------- 205 153 358
In home of relatives ..-..... ------------------ 64 19 83
In boarding homes ...------ -------------------------- 76 66 132
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, 833a2 22, 366.95 33, 042.08
Dry milk..-. ---------. 118, 350 23,670 00 75, 744.00
Rice. ---_ ------------------------------ 105,4371V 6 10,543.78 16,870.04
Butter --. ---. ---... -.-..---.- ------- --3, 668 2,934.80 3,595.13
Cheese--...- ... ...------------------------------------. 44, 3654 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%7 129,867.07 221,117.91

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 Operatzng 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

I. ......at ^- -

The Virgin Islands has become headquarters for more and more charter boats, and
sport fishing came into its own in fiscal 1963 with fhe 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. 82 78,000
1954-55-------- ---------------- 54, 864 16, 000 20, 763 91,627
1955-56 -------------------------- 63,000 18,500 29.300 110,800
1956-57 ..-------.... -------------------- 776,200 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 51,630 254, 700
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
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. Croix'

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, 564 315,630 343, 515 353, 059 422, 089
Revenues.---_. .. .... ...-..- ------ -------- -------.. $53,358

I 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.------------------- (I) (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, 504 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

I 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
1956 .----. ------------.-------------------------- 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 1,450
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 65.2 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
ber construe- her construe- ber construe- ber construe- ber 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------------------------------------- 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, 68 103,165,400 127,328,160
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-. 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 -------- ----------------. 90 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 2 2 251 2 25

Department of Finance

Personnel: 158 Operating appropriation: $865,41

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 5,619,721.00 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-
Total expenditures.-------------------------

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

1,091,676.71 13.69 1,443,836.54 14.44 1, 503,788. 37 11.43 1,812,480. 40 12.17 2,352,495.96 12.75
1,481,676. 17 18.57 2,155,141.89 21. 55 1,854,961.77 14,10 2,361,639.59 15.86 2,643,277.76 14.32
1, 555, 461. 81 19.50 2,097,018. 42 20. 97 2, 533, 674. 72 19.26 2,634, 032. 27 17.69 2,714, 225.13 14.71
1,428, 629. 12 17.91 1,859,452. 82 18. 60 2,107,840. 76 16.02 2,413, 884. 61 16. 21 2,993, 486. 25 16. 22
464, 232. 73 5. 82 550,434. 99 5.50 601,857. 55 4.58 837,884. 45 5.63 986,816. 12 5. 35
457,920. 45 5. 74 554, 265. 32 5. 54 698,533. 79 5. 31 788, 665.09 5.29 849,915. 89 4. 61
163,463.80 2. 05 227,682.37 2.28 340,917.48 2.59 576, 265.31 3. 87 623, 834. 08 3.38
69,564. 55 .87 143,168. 13 1.43 167,723. 53 1.28 256, 136. 41 1. 72 321,335. 29 1.74
--.------.-- ---.---- ------.-- -- -------- .... .... .......... ....... 81,040.64 .44
6,712, 625. 34 84.15 9,031,000. 48 90. 31 9,809, 297.97 74. 57 11,680, 988. 13 78. 44 13, 566, 427.12 73. 52
1,056,790. 83 13. 25 296,110. 29 2.96 197,666. 79 1.50 548. 852. 58 3.69 1,875, 235. 14 10. 16
7,945,173.71 99.60 9, 582, 545. 97 95.82 10,263,256.60 78.02 12,539,464. 59 84.21 15,747,361.23 85.34

32,040.20 .40 370,166.08 3.70 2,856,053.86 21.71 2,321,189.90 15.59 2,038,600.38 11.05
-- ------- -----.,.-- 47,396.09 .48 ...........- --...... 2,819.00 .02 --. ---------
--------- -- 35,434.45 .27 6,437.73 .04 37,553.28 .20
-.--.------- ...... -- ---.---.....251.44 0 604.63 0 8,756.86 .05
-- -------- ----- ------ -- --- ---------- 20, 547. 13 .14 ---------
---.--------- ----- ---- ------ -.- .... ... -- .....-.............. .. 546,198.26 2.96
--.------ ---. --- --.-. -- -.------ ----- ----- ------ ------. 75,091.78 .40

32,040. 20

.40 417,562.17 4.18 2,891,739. 75 21.98

7,977,213.91 100 10,000,108.14 100 13,154,996.35 100

2,351,618.39 15.79 2,706,200.56
14,891,082.98 100 18,453,561.79


14. 66








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

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- ------------------------------------------ 1,967,000 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-fiscal year 1968

[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 61,550.00 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 6. 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 ----------_--------------- 14,648,756. 97 14,446,151.27 202,605.70


Operating budget-fiscal year 1963-Continued


Act No.

940_- - - - -
935 -
922--- .------




877 .-----------
907 -----------------

980-- -----------

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

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

948 --- ---

948 -------

1010.-....---- ---

877---.........- .
877. --...........
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----...........-- ...




25,000.00 5,000.00
2,000.00.- --
5,000.00 1,500.00



10,000.00 ..
6,000.00 .
15,000.00 --....--

1,799.00 ----
10,000.00 ----



100,000.00 1.. .--------1100,000.00


134,866. 00


40,000. 00
365,000 00
130,000. 00
80,000. 00
5,000. 00
2, 700. 00

5,000. 00

25,000. 00

10,000. 00

10,000. 00


180,000.00 20,000.00
225,000.00 25,000.00
143,000.00 -----

134,866.00 .


25, 000. 00

5, 000. 00
2, 700. 00
500. 00

15,000.00 --

.-------- --


3,500. 00

8,100. 00


30,000. 00
- - - -
- - - -
- - - -
- - - -





20 31,

2,052,604.00 1 1,621,004.00



Operating budget-fiscal year 1963-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 -----
58 ------------ Acquisition of land ----- --------- 100,000.00 ---- ----- 100,000.00
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 1,500.00 -----
852._ -- Office of the Governor: College of the Virgin 250,000.00 260,000.00 --------
Total----- ----------------- 468,556.97 340,844.97 127,712.00
767. ------------- Department of finance: Wages to unemploy- 45,288.29 46,288.29 ...----
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

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

VI-5__ _

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 ot 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




300, 000




100, 000







$25, 000. 00
75, 000. 00

50,000. 00


20,000.00 _-
300,000.00 -..

75, 000







40, 000





137,500.00 12,500.00

75,000.00 -----


ST-112 ...
ST-113 .--

ST-114 -..


ST-117 ..

ST-118 .--

ST-119 -..

ST-127 -..

VI-13 ---

ST-103 --



ST-123 .--


450,000.00 --

99,000.00 -

100,000 1 100,000.00








50,000.00 ....

20,000.00 -...




287, 500. 00 12, 500. 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 -.. I For construction of drainage structures along
West Indian Company Road.


SC-102 ---




SC-106 ----

SC-107. --

SC-108 ---
SC-109 ----


SC-112.. -
SC-114 --.


ST-125 --.

ST-126 ---

SC-90--O ._

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) Acquisitionofland 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. Croix

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.

: I

25,000.00 ..........

250,000.00 ..........



124, 000. 00

18,000.00 .--.










































185,000 ..----

50,000 .----

32,000 ...--

50,000 .-----

200,000.00 ------

Totals-------------------------- 4,665,000 4,390,009.05 524,990.95










4,665,000 14,390,009.05


- - - -


524, 990. 95

Totals ----------------.-------------.

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
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: $282,909
Division of Procurement and Supply
Purchase orders issued by the division amounted to 10,336 with a
value of $8,732,351.18.
6-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.

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.

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