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Calendar No. 212 Report No. 200 72d Congress ) SENATE 1st Session j TO AUTHORIZE THE ST. THOMAS HARBOR BOARD, VIRGIN ISLANDS, TO ISSUE BONDS FOR DRY DOCK February 5 (calendar day, February 9), 1932.—Ordered to be printed Mr. Bingham, from the Committee on Territories and Insular Affairs, submitted the following REPOET [To accompany S. 3541] The Committee on Territories and Insular Affairs, to whom was referred the bill (S. 3541) to authorize the St. Thomas Harbor Board, Virgin Islands, to issue bonds for the purpose of acquiring and installing a dry dock in the harbor of St. Thomas, having considered the same, reports favorably thereon and recommends that the bill do pass. The Governor of the Virgin Islands has presented facts showing the desirability of this proposed legislation, including the following excerpt from a resolution passed by the St. Thomas Harbor Board at its session on December 28, last: The St. Thomas Harbor Board respectfully petitions the Congress of the United States to enact legislation authorizing the St. Thomas Harbor Board to float a bond issue of $150,000 for the purpose of acquiring a dry dock and the installation in the harbor of St. Thomas. For a great number of years St. Thomas has offered dry-docking facilities to shipping. Unfortunately, an accident occurred in 1924 which wrecked the dry dock then owned by the Virgin Islands Dock & Engine Works, a private company of St. Thomas. Since that time repeated attempts made to secure a dry dock for the harbor of St. Thomas failed, due primarily to the lack of sufficient capital. Along with the permanent exemption of the United States coastwise laws, one of the most important projects which should have immediate consideration and action, if St. Thomas is to regain in any measure the commerce she formerly enjoyed, is the purchase and installation of a dry dock. In 1910, when funds were needed by the Danish administration to dredge the harbor of St. Thomas and improve its facilities, the Danish Government author¬ ized the St. Thomas Harbor Board to float a loan of $100,000, which was known as the St. Thomas Harbor 4 per cent loan of 1910. This loan was guaranteed by the Danish Government in the following words: “The Danish Gov jrnment guarantees the payment of the principal amount as well as of the interest.” The treaty between the United States and Denmark, providing for the cession of the Danish West Indian Islands, signed at New York, August 4, 1916, guaranteed, among other things, the St. Thomas Harbor 4 per cent loan of 1910. The terms S R—72-1—vol 1-23 2 ISSUE BONDS FOE DRY DOCK AT VIRGIN ISLANDS of amortization of this loan provided for the annual repayment of a specific number of bonds every six months, beginning with seven bonds in December of 1910 and gradually increasing to 17 bonds in December, 1931. These bonds have been regularly redeemed through the revenues of the harbor of St. Thomas, and the last 13 bonds of this issue will be redeemed on the 11th of June, 1932. As there is not sufficient local capital to finance the purchase and installation of a dry dock, and as the Danish Government guaranteed the harbor loan of 1910 for dredging the harbor of St. Thomas, which loan was guaranteed by the United States in 1917, the St. Thomas Harbor Board respectfully petitions the Congress of the United States to enact legislation which will authorize the St. Thomas Harbor Board to float a 4 per cent loan of $150,000, said loan to be guaranteed by the Government of the United States of America in the same manner as the 1910 loan was guaranteed by the Danish State. o