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s> i ftC.'.K UMASS/AMHERST III mil III!! I'ill Mill 'll'i Hill III!! mil 111 i|i|||IMIPIII!!l!illl!llllll!!l ; City Library 3T2066""0344'2003 8 '^'ST'rJd,, (Vlass, AnnualReport of the GOVERNOR OF THE VIRGIN ISLANDS tO the SECRETARY OF THE INTERIOR Fiscal year ended June 30, 1941 Digitized by the Internet Archive in 2009 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/annualreportofgo1941virg Annual Report of the GOVERNOR OF THE VIRGIN ISLANDS to the SECRETARY OF THE INTERIOR Fiscal year ended June 30, 1 UNITED STATES DEPARTMENT OF THE INTERIOR Harold L. Ickes, Secretary TERRITORY OF THE VIRGIN ISLANDS Charles Harwood, Governor STACK ^ 1^ United States Government Printing Office, Washington, D. C. For sale by the Superintendent of Documents, Washington, D. C, Pi ice 10 cents Contents Page Economic situation 1 Fiscal 3 Municipality of St. Thomas and St. John 4 Municipality of St. Croix 5 St. Thomas Harbor Board 5 The Federal appropriation 6 W. P. A. projects 6 Public Works Administration 7 United States Housing Authority 8 St. Thomas, Virgin Islands lottery 8 Public Works Department 8 Virgin Islands Cooperative 9 Agricultural station and vocational school 10 Public welfare 11 Health and sanitation 12 JEducation 13 Police and prison department 14 Harbor Department 14 Public libraries 15 Legislative authorities 15 Nursery schools and parent guidance program 16 Immigration 16 JN'ational Youth Administration 17 Public utilities commission 17 Civilian Conservation Corps 17 Reconstruction of Government buildings 17 Conclusion 18 ni Annual Report of The Covesrnor of the Virgin Islands CHARLES HARWOOD, Governor Charlotte Amaije, St. Thomas, August 15^ 19Ifl. The Honorable the Secretary of the Interior, Washington^ D. C. Sir: Pursuant to section 20 of the Organic Act of the Virgin Islands of the United States, approved June 22, 1936, I have the honor to submit the following annual report of the transactions of the government of the Virgin Islands for the fiscal year ended June 30, 1941. During the year Lawrence W. Cramer, who had been Lieutenant Governor of St. Croix from March 18, 1931, to August 31, 1935, and Governor of the Virgin Islands from August 31, 1935, resigned as Governor of the Virgin Islands. He was succeeded by Charles Har- woocl, of New York, who took the oath of office on February 3, 1941. Ecoxtomic Situation T AlHE ECONOMIC STRUCTURE of the Virgin Islands rests entirely on the agricultural economy of the island of St. Croix, which has a population of 12,902, and on the shipping activities of the island of St. Thomas, which has a population of 11,265. In St. Croix the sugar industry normally provides, directly or indirectly, most of the island's employment. Cattle raising, which utilizes about two-thirds of the land, provides less than 5 percent of the employment. Sugar production, about 2,000 tons, was the lowest in many years due to 3 years continued drought. Many small farms were abandoned or neglected in favor of wage work made available at the new Army Air Base. Weather, marginal low-yield land, and sugar prices are uncontrol- lable factors, but the island of St. Croix alone of all sugar areas under the American flag labors under two additional handicaps, the 1 2 • Beport of the Governor of the Virgin Islands removal of which by legislation would be a substantial contribution by the United States Government to the economy of St. Croix. St. Croix sugar pays the Federal processing taxes, but its cane growers do not get sugar benefit payments. All other cane growers do. St. Croix sugar, for revenue requirements of the municipality, pays a $6 per ton export tax. No other American sugar producers pay export tax. This tax could and would be repealed by the local legislative authority if there were returned to the Virgin Islands the internal-revenue taxes collected on i)roducts of the Virgin Islands shipped to the United States. The return of these taxes would also eliminate the need for annual deficit contributions by the Federal Government. The cattle industry of St. Croix likewise has shrunk to the lowest point in several decades. At the close of the j^ear, there were less than 6,000 head as compared with 10,000 in 1932. A concerted effort is in progress now to broaden the economic base of St. Croix by providing relief from dependence on sugarcane. From funds made available by the Public Works Administration there has been constructed a modern abattoir which will be operated by the Virgin Islands Co., under the direction of its new president, Frederick H. Walton, who is especially qualified by experience to direct its policies and operations. The cattle industry of St. Croix undoubtedly will place its chief future reliance on the abattoir and prospects for its successful operation are brightened by the increased military personnel and activities in the Caribbean area. The cattle of the islands must be greatly increased in number and improved in breed in order to obtain the maximum benefits from the operation of the abattoir. During the time necessary for this development, the importation of cattle and other animals may be necessary and justi- fied to meet the market and to provide the material for efficient operation. To this end, a demonstration project has been started for the raising of more small animals to supplement the ground crops of the thousand small farmers, nearly half of whom are Federal or municipal homesteaders. Breeding stock is being introduced and there is to be created a cooperative for their feeding and marketing. The closer coordination of the work of all Federal agencies in St. Croix, including the Virgin Islands Co., the Farm Security Adminis- tration, the Soil Conservation Service, the National Youth Adminis- tration, and the agricultural experiment station is part of a plan to develop a unified program to make the most of the natural resources of the island of St. Croix. The shipping business, the chief economic asset of St. Thomas on which the well-being of most of its population depends, was the greatest on record. A total of 1,220 ocean-going vessels called at the port of St. Thomas during the year in comparison with 985 in 1940 Report of the Governor of the Virgin Islands • 3 and a 10-year 1931-40 average of 659. The character of the shipping, however, has undergone a transformation by reason of the war. Foreign cruise ships, heretofore the island's chief dependence for its tourist trade, were withdrawn at the outbreak of hostilities in 1939. They were partially replaced by American cruise ships which, too, by the end of the fiscal year had been withdrawn for naval service. The bunkering business continued brisk during the year and, in- fluenced by war conditions, is now increasing. The transhipment of bauxite has increased tremendously, also influenced by war condi- tions. At the present time the ceiling for this business is limited only by the capacity of the dock plant. Heartening, indeed, is the progress of the Virgin Islands Coopera- tive in the production and marketing of native handwork despite unsettled world conditions. Total sales were $55,000, an increase of 41.25 percent in 5 years. A factor largely responsible for the increase in this business is the demand for silk-palm braid for the manufac- ture of hats by continental hat manufacturers. Of potential benefit to the community, particularly in view of the great demand for fooclstufi^s caused by defense activities, is the modern market in St. Thomas now under construction and planned for completion by January 1942. Financed by funds made available by the Public Works Administration, the plant will include a modern market and cold-storage building, a building for fish cleaning and poultry dressing, as well as necessary water supply and dock appur- tenances. The operation of this market will be coordinated with the operation of the new abattoir in St. Croix within the framework of the Virgin Islands Co. Fiscal The finances of the municipal government in St. Thomas were in a satisfactory condition by reason of an unprecedented increase in in- come-tax collections and the covering into the municipal treasury of all revenues from the harbor of St. Thomas, heretofore covered into a special fund. By the end of the fiscal year, liabilities of the munici- pality of St. Thomas and St. John incurred in previous years totaling approximately $48,000 had been liquidated in full. The financial condition of the municipality of St. Croix has con- tinued at low ebb throughout the year. Salaries of municipal per- sonnel, already low, had to be reduced by 10 to 20 percent. In order to carry on the already inadequate medical, educational, sanitation, and other essential services, the municipality was forced to mortgage many of its public buildings. Fortunately, Congress generously increased its Federal deficit contribution during the year which enabled the municipality to liquidate this mortgage. By the end of the fiscal 4 • Beport of the Governor of the Virgin Islands year, outstanding liabilities of the municipality were $82,000 borrowed during recent years to meet mmiicipal deficits. MunicipaUty of St. Thomas and St. John.—The actual revenues of the municipality of St. Thomas and St. John amounted to $349,260.27. In order to compare this figure with revenues of the preceding year, for the purpose of noting any advance or decline, it is necessary to reduce it by certain funds which were received during the year by reason of an opinion of the district attorney holding that the revenues of the St. Thomas Harbor Board should be covered into the treasury of the municipality of St. Thomas and St. John. These were : Transferred from S't. Thomas Harbor surplus fund $.5,590.53 Transferred from St. Thomas Harbor current account 14, 749. 73 Ships' dues (approximately) 12,272.00 Pilotage 11, 703. 04 Total 44, 321. 80 When so reduced, the normal revenues of the municipality of St. Thomas and St. John were $304,938.97, as compared with $232,848.85 during the preceding year, which is an increase of 31 percent. Income-tax collections were $138,552.45 compared with $99,236.21 collected in the preceding year, an increase of 3914 percent. It is of interest to note that income-tax collections 5 years ago, in 1936, were $18,237.08. Keal-property taxes yielded $50,014.15 compared with $46,506.74 collected in the preceding year, an increase of 71/0 percent. The 4 percent gasoline tax yielded $9,981.48 compared with $6,675.90 in the preceding year, an increase of 491^ percent. The trade tax of 1 percent on importers and % percent on nonimporters and on trade in coal and fuel oil, which was increased to li/i and 3/^ percent, respec- tively, on July 1, 1940, yielded $27,061.37 as compared with $18,759.04 in the preceding year, an increase of 44 percent. The budget for the municipality of St. Thomas and St- John for the fiscal year 1940-41, enacted late in June 1940, carried total estimated expenditures of $255,915.80 of which $233,900 were estimated to be collected in local revenues, $15,000 from the Federal deficit appropria- tion and $7,015.80 from sources then unforeseen. During the year the sum of $34,131 borrowed from the public funds and from the Virgin Islands National Bank in prior years for recon- struction of a municipal building and for assisting in meeting munici- pal deficits, was repaid in full with accrued interest. In addition, repayment of the sum of $14,142.51 borrowed from the St. Thomas Harbor Board was cancelled by reason of the transfer of harbor board funds to the municipal treasury. In addition to the normal deficit appropriation of $15,000 an addi- tional appropriation was made by Congress in amount of $29,933.78 for the purpose of enabling the municipality to refund certain income Report of the Governor of the Virgin Islands • 5 taxes Avhich had been paid in prior years to the municipality but which subsequently had been held to be payable to the United States Treasury. Kefund was actually made in the sum of $28,535.93. Mtmicipality of St. Croix.—The actual revenues of the municipality of St. Croix amounted to $139,111.07, compared with $176,013.23 dur- ing the preceding year, a decline of 21 percent. Income-tax collections were $11,149.39, compared with $11,428.83 collected in the preceding year. Eeal-property taxes yielded $36,898.65, as compared with $53,- 487.94 in the preceding year, a decline of 31 percent because the largest and some other taxpayers took advantage of the provisions of the law to defer payment until after June 30. The export tax of $6 per ton of sugar brought in $11,419.98, compared with $33,549.39 in the pre- ceding year, a decline of 66 percent. The cost of the municipal government of St. Croix was budgeted at $246,435. The Federal deficit appropriation was $75,000, which was later supplemented by an additional appropriation of $28,500. Prior to this additional appropriation, the municipality was forced to mort- gage municipal property for a loan of $17,000 from the Virgin Islands National Bank and to borrow $15,000 from public funds to meet its current operating expenses. Of the additional deficit appropriation of $28,500, $17,000 was used to liquidate the Virgin Islands National Bank's mortgage and the balance was repaid to the public funds. On June 30, 1941, the municipality still owed its public funds $82,956.89. St. Thomas Harhor Board.—On February 18, 1941, the district attorne}^ of the Virgin Islands rendered an opinion to the Governor, at the Governor's request, that section 35 of the Organic Act of the Virgin Islands of June 22, 1936, operated to deprive the St, Thomas Harbor Board of revenues allotted to it under preexisting law. This section provided that all taxes, duties, fees, and public revenues col- lected in the municipality of St. Thomas and St. John shall be cov- ered into the treasury of the Virgin Islands and held in account for said municipality. By virtue of this opinion and subsequent legislation of the muni- cipal council, funds held by the St. Thomas Harbor Board were distributed as follows: Harbor board surplus fund Transferred to municipal treasury $5, 596. 53 Municipal indebtedness automatically cancelled 14, 142. 51 Transfer to municipal improvement fund 18,595.36 Total 38, 334. 40 Harbor board current account Transferred to municipal treasury $14, 749. 7g Withheld for liquidation of obligations 1, 867. 25 Total 16, 616. 98 412283—41 2 6 • Report of the Governor of the Virgin Islands The St. Thomas Harbor Board was abolished by legislation on March 1, 1941. The Federal appropriation.—The Federal appropriations for the government of the Virgin Islands, fiscal year 1941, were : Central administration $134, 000. 00 Agricviltnral station and vocational school 41,150.00 Deficit, municipality of St. Thomas and St. John 44,933.78 Deficit, municipality of St. Croix 103, 500. 00 Leprosy control 8, 255. 00 Total 331, 838.78 Of this total of $331,838.78, $265,150 was appropriated in the Department of the Interior Appropriation Act for the fiscal year 1941, $8,255 in the First Supplemental Civil Functions Appropriation Act, and $58,433,78 in the First Deficiency Appropriation Act. W. P. A. projects.—During the year the following Work Kelief projects were authorized : 1. Prepare and serve school lunches to be furnished without charge to needy or undernourished children in the public schools of the municipality of St. Croix $2,550 2. Provide free nursing care in the homes of the needy and assist in the operation of medical clinics for needy persons in St. Croix 2, 256 3. Provide, coordinate, and supervise nursery schools and necessary parent guidance which is part of the nursery school program in St. Thomas, St. John, and St. Croix 10,373 4. Maintain and operate sewing rooms, products to be distributed free of charge to the needy in St. Croix 3, 252 5. Prepare and serve school lunches to be furnished without charge to needy or undernourished children in the public schools of the municipality of St. Thomas and St. John 4, 954 6. Extend and improve the present sewage disposal and water system, including laying sewer and water lines, excavating, erecting toilets and c(mnecting to disposal systems, installing hydrants, and per- forming appurtenant and incidental work in St. Thomas 11,937 7. Conduct surveys and studies of leprosy and syphilis in St. Croix 1, 707 8. Improve sanitation, public water supply, and municipal buildings and grounds in St. Croix 15, 500 9. Improve highways, streets, and gutters in St. Croix 18,498 10. Rehabilitate government buildings, structures, and facilities in St. Thomas 12, 494 11. Improve highway facilities in the vicinity of the Marine Air Base on Crown Mountain in St. Thomas 139, 100 12. Operate a production project for the making of mattresses and maintain and operate sewing rooms in St. Thomas 6, 750 13. Operate the food-stamp plan and assist the public welfare depart- ment in certifying eligible clients and personnel for single-unit food-stamp issuing offices in St. Croix 1,781 14. Operate the food-stamp plan and assist the public welfare depart- ment in certifying eligible clients and personnel for single-unit food-stamp issuing offices in St. Thomas 1, 996 Report of the Governor of the Virgin Islands • 7 15. Improve and safeguard Federal property and facilities located on Dorothea, Lindberg Bay, Mandahl Estate, and other Federal property in St. Thomas $1-0, 272 16. Alter and improve buildings and water supply including wells in Company's, Queen's, King's, and West End quarters in St. Croix— 4, 982 17. Improve, alter and reconstruct roads, ranges, and ditches; improve land by clearing, applying soil and water conservation methods, etc., in St. Croix 7, 494 18. Demonstrate operation of an abattoir and train local personnel to operate this facility on the island of St. Croix 2, 614 19. Eradicate and control cattle ticks throughout the islands of St. John and St. Thomas 5,943 20. Eradicate and control cattle ticks throughout the island of St. Croix_ 12,397 21. Improve roads leading to Mannings Bay Air Base on the island of St. Croix 89,351 22. Improve and rehabilitate facilities and improve grounds at military cemetery, powder magazine, and property Nos. 7-8 Curacao Gade, St. Thomas 19,943 23. Conduct a demonstration and training program on government lands in the islands of St. Thomas and St. Croix to develop and devise improved methods of pasture care and to improve fodder and cattle raising methods 7, 800 24. Administrative expenses—Virgin Islands 13, 955 25. Provide administration, supervision, and instruction in cooperative activities in St. Thomas for the benefit of needy persons in the production of handicrafts and cabinet making 9, 000 Total 416, 899 Some projects, particularly the St. Croix access road project, were authorized too late for completion of planned work by June 30, 1941. Total obligations on June 30, 1941, were $370,609. Public Worlds Administration.—The following P. W. A. Federal projects were active: F. P. No. 17. Construction of a modern cold storage market in St. Thomas and additional space for the Virgin Islands Cooperative, Inc $180, 000 F. P. No. 18. Construction of a modern abattoir in St. Croix 110, 000 Total 290, 000 Non-Federal project, V. I. 1004-F, construction of municipal build- ing at Charlotte Amalie was completed at a total cost of $79,341.32, of which the municipality contributed 55 percent and the Public Works Administration 45 percent. CoUections for deposit in the United States Treasury.—A total of $6,872.45 was collected from homesteaders under land and house purchase contracts, interest and principal on loans, and miscellaneous collections. 8 • Report of the Governor of the Virgin Islands United States Housing Authority.—During the year earned income and cash collections from rentals of the three United States Housing Authority projects were: Earned income Cash col- lections H. H. Berg Homes, St. Thomas Bassin Triangle, Christiansted, St. Croix_ Marley Homes, Frederiksted. St. Croix.. Total $3, 129. 92 1, 294. 93 1, 190. 45 $3, 252. 63 1, 247. 49 1. 072. 03 5, 615. 30 St. Thomas Virgin Islamds lottery.—There were 10 drawings dur- ing the year. The sum of $65,499.45 was paid out in prizes. Sale of tickets amounted to $86,207.76. The lottery board made available to the municipality of St. Thomas and St. John appropriations totalling $8,710 for hospitalization, sanitation, education, and poor relief purposes. At the close of the fiscal year the surplus of the St. Thomas Virgin Islands lottery was $9,309.91. Puhlic Works Department With the large road projects sponsored by the War Department and financed by W. P. A. funds, and with the help of funds made available by the municipality from gasoline taxes and automobile fees, improvements to the road system of the island of St. Thomas were continued. Four miles of asphalt penetration road were laid. Six miles of dirt roads were improved, maintained, and made pass- able for vehicular traffic. Five hundred linear feet of streets were hard-surfaced. In St. Croix 22.2 miles of dirt road in various sections of the island were graded and reconditioned; 3.7 miles of road were hard- surfaced; 4,681 linear feet of city streets were hard-surfaced and necessary gutters installed. Weather conditions during the year created the most serious water shortage experienced for some time and again forcibly brought to the attention of the communities the crying need for providing more adequate water catchment and storage facilities. The operation of the sanitary-flushing and fire-protection system in Charlotte Amalie continued to be as satisfactory as is possible with the limited facilities available. Action by the health and public works authorities became necessary during the year to remove the menace caused by industrial waste dumped into the harbor of St. Thomas. The waste discharged into the harbor from a nearby distillery was drawn into the intake of one of the pumping stations with resulting offensive odor and discoloration. This pollu- tion of the harbor water requires further investigation and control. Report of the Governor of the Virgin Islands • 9 The assistance of the Public Health Service has been solicited in an effort to find an adequate and permanent solution. Removal of garbage continued to be a serious problem in the towns, due to limited equipment and lack of proper disposal facilities. In Charlotte Amalie, particularly, the growing population incident to national-defense construction created a serious street-cleaning and gutter-flushing problem. During the latter part of the year, regu- lar daily flushing with salt water of the open sewers in the city of Charlotte Amalie was inaugurated with fairly satisfactory results. A new 600-line, 3-position telephone switchboard was purchased and placed in operation in the St. Thomas municipal telephone system. This new equipment should take care of increasing demands on the service for some years. The St. Croix municipal telephone system is in a complete state of disrepair and disruption due to lack of funds and the fact that only routine maintenance work has been possible. Many rotted poles and lines were replaced in conjunction with road construction, but the entire system needs to be rebuilt. Routine repairs to public buildings were carried on to the extent of available funds supplemented by W. P. A. projects in both islands. In St. Thomas construction of a municipal building was completed as a P. W. A. non-Federal project. This building now houses the offices and assembly room of the Municipal Council of St. Thomas and St. John, the public library, the St. Thomas municipal telephone sys- tem, the government printing office, and the office of the tax assessor, and the St. Thomas, Virgin Islands, lottery. The W. P. A. works program was directed and supervised by the public works department in both municipalities in addition to routine work of maintaining buildings, roads, sanitary and street cleaning services. Virgin Islcands €®opercati^^e Despite unsettled world conditions and many local problems affecting production, continued progress was made in the operation of the Virgin Islands Cooperative for the production and marketing of local handcraft. Total sales of this cooperative to tourists from 17 cruises of the steamship America and the steamship Wmhington of the United States Lines, amounted to $12,699.64 as compared with total sales of $10,312.40 to tourists from 21 cruise ships during the preceding year. Direct by mail sales were $4,692.98 as compared with $6,958.55 in the preceding year, but this decline was off-set by improvement in the export business. Due to the demand for silk-palm braid for the manu- facture of hats by continental hat manufacturers, export sales in- creased more than 126 percent and reached a record total of $12,956.16 as compared with $5,728.20 in the preceding year. Total sales of the cooperative during the year were $55,357.77 as compared with $39,- 10 • Report of the Governor of the Virgin Islands 189.20 in the preceding year. This represents an increase of 41.25 percent in 5 years. A total of $28,177.55 was paid to 791 workers for merchandise produced by them for sale through the cooperative. The board of directors voted a bonus of 10 percent for workers based on their production during the preceding fiscal year. A total of $1,881.14 was paid in bonuses to 247 producers. In 1937 the bonus was 3 percent , in 1938 2 percent, in 1939 5 percent, in 1940 7 percent, and in 1941 10 percent. The policy of paying the producers 75 percent of the retail price of articles produced for sale through the cooperative has been adhered to and has been found to be satisfactory. This is the tenth year since the cooperative was established and it is interesting to note that gross sales have increased nearly tenfold, from $5,712.71 in 1931-32 to $55,357.77 in 1940-41. The organization has continued its policy of giving free instruction to all persons interested in learning the handcraft marketed by the cooperative. Agricultural Station and Vocational School The agricultural experiment station of St. Croix was practically defunct during the 3'ear because of the depletion of its personnel. By the end of the fiscal year, however, new appointments of qualified persons to the agricultural station offered great hope for the trans- formation of that badly neglected activity into a potential source of real service to the community. A boj's' resident project was es- tablished by the National Youth Administration at the agricultural experiment station property in St. Croix. The operation of this project, unfortunately, was not Avholly satisfactory, partly due to the fact that the agricultural station was at its lowest ebb with practically all staff members resigned or on leave. The agricultural station failed to provide proper instruction. The supervision provided by the N. Y. A. was not adequate. The project was suspended on June 30, 1941, but negotiations are proceeding for its resumption. Under proper direction, with a limited number of carefully selected boys, adequate supervision on the part of the N. Y. A., and proper instruc- tion on the part of the agricultural station staff, this project can, and should, operate satisfactorily and be a potential factor in de- veloping among the youth of the island a keen sense of the need to develop fully the agricultural resources of the island. In St. Thomas there has been a marked decrease in the number of persons engaged in agricultural pursuits. This decrease is due to discouragement created by the severe drought and to opportunity for more lucrative employment on national-defense projects. The result has been a considerable diminution in the amount of food produced within the island and consequent increased dependence on outside Report of the Governor of the Virgin Islands • 11 sources. Intensive stimulation of agricultural activity to provide food and forage crops must be the important and primary function of the agricultural experiment station in both islands. Public Welfare In St. Thomas especially there has been a gratifying forward move- ment in welfare activities. A social-minded legislature has co- operated with the administration in wdiolesome measures for social improvement. The Federal Government has increased its help through the addition of new- and desirable agencies. The food-stamp plan of the Federal Surplus Marketing Adminis- tration was extended to the Virgin Islands during the year. The Virgin Islands were designated a food-stamp area on February 1, 1941, and the sale of stamps actually began in both municipalities on May 16, 1941. It is estimated that Government aid to pauper pen- sioners and other unemployables has been doubled through this plan. Large benefits have been made available to low-income relief workers, though this latter group has been slow to take advantage of it. Commodity aid during the year included distribution of mattresses, sheets, and clothing produced by N. Y. A. and W. P. A. women's relief projects, as well as surplus food commodities supplied without charge by the Surplus Marketing Administration. Social service for indigent families has been incidental to investi- gational, employment, and direct aid services. The low standards of living in the islands create many problems in which well-organized social services could be distinctly helpful. A start has been made in this direction in the municipality of St, Thomas and St. John because the legislature has provided funds for the employment of necessary personnel for the department of public welfare. In St. Croix the legislature has consistently failed to appropriate monies for public-welfare activities, and public-welfare work in that island has been carried on only by limited personnel financed from W. P. A. funds. During the year considerable attention was devoted to the problem of juvenile delinquents. By the close of the year the construction of a school for j-jvenile boy delinquents seemed assured. Funds have been made available by the lottery board and construction will be started in the near future. The municipal council of St. Thomas and St. John and the department of public welfare are working on a plan to provide increased emphasis on wholesome community influences such as com- munity recreation, community centers, and club work. A forward stride in social and economic legislation was accomplished in the municipality of St, Thomas and St, John by the enactment of a public utilities ordinance in August 1940, and a workmen's com- 12 • Report of the Governor of the Virgin Islands pensation act in December 1940. The urge to action which finally resulted in the passage of legislation to control public utilities arose from repeated refusals of an electric public-utility company, which has a virtual monopoly in St. Thomas, to reduce its rates in proportion to its increased business. Action in the case of the workmen's compen- sation act followed several serious accidents on defense projects and repeated demands from the naval engineer in charge of such projects in St. Thomas. As a result of expansion of construction of naval and military facilities incident to national defense, every employable male worker on the islands of St. Thomas and St. Croix was gainfully employed. In addition, hundreds of workers have been imported into St. Thomas from neighboring British islands for work on defense activities, fur- ther complicating problems of health, housing, sanitation, and transportation. The resulting housing shortage added to the long-existing deplor- able housing conditions among low-income groups. Small Federal housing projects, in operation in both municipalities for several years, had their most successful year. New housing activity is now an important need. Health and Sanitation Medical and sanitation facilities, although much improved in recent years, are still too nearly primitive. The physicians function valiantly under handicaps of outmoded physical plants and inadequate equip- ment. Additional doctors are needed. Open gutters in all towns, inadequate garbage and refuse disposal, primitive sewage disposal methods, limited modern sewage facilities, all constitute a potential menace to community health. As the year closes, the Governor of the Virgin Islands, keenly mindful of the importance of the health of the islands, is devoting his attention to these problems, and has succeeded in obtaining a Federal appropriation of $5,000 for a survey of public- Avorks needs of the islands as a basis of a broad program to remedy these conditions. In general, the health of the islands has been good. There is an almost complete absence of tropical diseases. The most serious defect in community health is indicated by examination of school children in St. Thomas among whom malnutrition and anemia range above 70 percent and sometimes reach 90 percent. On the island of St. John a complete medical survey was made during the year providing an invaluable record for future medical work. The work done in the municipal hospitals, at the clinics, and in the out-patient service, with a limited number of physicians, has been extensive. The hospital staff, as well as the public, deplore the cheerlessness and shabbiness of the Report of the Governor of the Virgin Islands • 13 iiospital wards in all towns, the lack of proper isolation, the lack of running water, the lack of bathrooms, and the primitive sanitary facilities. An outstanding achievement during the year was the transfer of 43 of the 56 insane patients from confinement, amounting to virtual imprisonment, in the psychopathic ward of the municipal hospital of St. Thomas and in the insane asylum in St. Croix to the comparative luxury of the St. Elizabeths Hospital at Washington, D. C. This humane achievement was made possible by the Department of the Interior, which sponsored a law which was finally enacted by Congress and approved by the President on July 18, 1940, permitting the transfer of American insane patients from the Virgin Islands to St. Elizabeths Hospital. These 43 i^atients left St. Thomas on June 23, 1941, in charge of one medical officer and an efficient and competent group of native male and female nurses. The transfer was accomplished without mis- hap and they were admitted to St. Elizabeths Hospital on June 27, 1941. The insane asylum in St. Croix, a dilapidated and disgraceful institution, has been closed and 13 alien insane patients, who cannot be transferred to St. Elizabeths Hospital, remain in confinement in the psychopathic ward of the municipal hospital at St. Thomas. Efforts are being made to repatriate some of these patients to their native countries. Education Beginning with this year, the department of education has op- erated under a new school law which was enacted by the legislative assembly of the Virgin Islands. This school law established school boards with certain duties, authorities, and responsibilities which are in line with the generally accepted practice of democratizing the control and direction of education. Except for the lack of adequate commercial and vocational courses, the courses and standards of educa- tion compare favorably wdth those in other communities. Many teachers have not had the education or the training necessary for first-class work. Salaries are inadequate and there is no retirement system. In St. Thomas the new municipal council, which came into office on January 1, 1941, gave hope of improving teacher standards by providing more adequate compensation patterned upon accepted practices of basic salary scales and regular emoluments. Efforts to establish pensions for superannuated teachers have failed. Progress continues to be made in assisting students through scholarship aids in acquiring higher education in collegiate institutions in the United States. Virgin Islands' students who have attended such collegiate institutions have been outstanding in their respective fields, and upon their return to the islands to teach in the public school systems have shown interest and tireless energy in developing public education. 14 • Report of the Governor of the Virgin Islands A new liigli school building is urgently needed in St. Thomas. The present quarters are totally inadequate for proper academic and voca- tional training. New equipment, and improved school buildings and facilities are required in all the islands. Police and Prison Department The rapidly increasing population of the islands as a result of the expansion of defense activities focused attention during the year on the inadequacy of the police force. Unfortunately, rumors were spread in the United States of the existence of a crime w^ave in St. Thomas. Many of the charges made were fantastic in nature and without foundation in fact. It is recognized that during the past years the members of the police force have not received pro])er train- ing and have not been required to pursue studies to improve themselves in police routine. Many police officers should be retired on account of superannuation, but there is no pension law in effect in either numicipality, and most of these men have served the municipalities faithfully for a great many years. Unless a proper pension system is inaugurated, their involuntary separation from the service would be inhumane. Salaries have not been adequate to attract qualified men. In the latter part of the fiscal year vigorous action was taken to improve the efficiency of the police force in St. Thomas. The district attorney volunteered his services as instructor and held classes semi- weekly in the rudiments of law and legal procedure. Instruction in the proper use of firearms is being provided by an officer of the United States Marine Corps. Marked progress has been made. In St. Thomas a total of 1,042 arrests were made as compared with Y86 dur- ing the last fiscal year. There wei-e increases in petty offenses such as disorderly conduct, traffic violations and violations of police regula- tions. There were no major crimes. There was considerable activity on the part of prowlers with apparent intention to commit burglary. Convictions were secured in 65.5 percent of police cases, while 34.5 percent were acquitted. Thirty-three percent of the persons arrested in St. Thomas were foreigners. Twenty-one and five-tenths percent were females. The juvenile delinquency problem was a serious aspect of the situation. The offenders were, in many cases, repeaters. Harbor Department During the year 241 American Government ships with a gross ton- nage of 639,989 entered the harbor of St. Thomas. Nine hundred and seventy-nine merchant vessels with a gross tonnage of 3,303,135 visited St. Thomas during the same period. Of these, 455 with a gross tonnage of 1,768,604 were of American, 158 with a gross tonnage of 399,103 were Norwegian, and 80 with a gross tonnage of 269,108 Report of the Governor of the Virgin Islands • 15 were British. Dutch, French, Finnish, Greek, Swedish, Jugo-Slav^ and many other foreign flags were represented. Despite world conditions, shipping has shown a tremendous in- crease over previous years as is demonstrated by the following table of ships, with their gross tonnage, which entered the harbor of St. Thomas during the past 4 fiscal years : Fiscal year 16 • Report of the Governor of the Virgin Islands the purchase of additional equipment which is urgently required for fire protection and street cleaning and garbage removal. The municipal council of St. Croix enacted a number of routine ordinances. Among the more important pieces of legislation adopted in St. Croix were an ordinance to regulate and control the sale of alcoholic beverages, an ordinance to permit the killing of wild deer in an effort to secure complete tick eradication, and an ordinance for the proper control of leprosy. Unfortunately, the finances of the municipality of St. Croix have been at such a low ebb that the munici- pal council has not been able to make adequate appropriation for the proper operation of municipal activities. Nursery Schools and Parent Guidance Program For the third consecutive year the nursery schools have been oper- ated as a W. P. A. project sponsored by the two municipalities. Their purpose has been threefold, namely, to provide physical and health care and educational guidance for 2- to 5-year-old under-privileged children; to provide training for parents; and finally, to provide employment for needy persons. The nursery schools function at the same time as training centers for teachers, nursemaids, X. Y. A. youths, and potential mothers. During the year the nursery staffs registered progress along the lines of improved health and living conditions ; improved methods in guidance and discipline of children ; practical training in child care and household tasks for girls; and rehabilitating unemployed persons. In St. Thomas one large double unit was operated for 40 children. In St. John a unit was organized for 20 children. On the island of St. Croix 6 units scattered throughout the island cared for 150 •children. Immigration During the year responsibility for the enforcement of the United States immigration and naturalization laws was transferred from the Department of the Interior to the United States Department of Justice, Immigration and Naturalization Service. The increasing burden of immigration enforcement, the added restrictions and regu- lations attendant on the war situation, and especially the impossibility of preventing illegal entries without a larger force, led the Governor to request a release from this responsibility. The United States Immigration and Naturalization Service established an office in St. Thomas with an inspector-in-charge under the direction of the dis- trict office in Puerto Rico. Report of the Governor of the Virgin Islands • 17 National Youth Adininistiration The N. Y. A. extended its activities to the Virgin Islands for the first time. In St. Thomas this Administration sponsored recreational, sewing, clerical, nurses and nursery school aides projects. In St. John, sewing projects, road and trail projects, reconstruction of a clinic at Coral Bay, and a hot-lunch project were inaugurated. On the island of St. Croix, recreational, sewing, clerical, nurses and nursery-school aides, mechanic aides, construction of children's wards at the municipal hospitals, girls' resident and boys' resident projects were carried on. The activities of the N. Y. A. are effecting a sub- stantial contribution to youth welfare. Public Utilities Coittmission By ordinance of August 14, 1940, a public utilities commission was created in the municipality of St. Thomas and St. John. On October 29, 1940, after proper hearings, the commission entered an order considerably reducing the rates for electrical energy for light and power for residents of St. Thomas. Civilian Conservation Corps The outstanding function of the C. C. C. during the past year has been to serve as a reservoir of employees for national defense work. Defense agencies engaged in the development of defense facilities have secured many trained employees from the ranks of the C, C. C. enrollees. Practically every older trained enrollee has been turned over to these agencies. In St. Thomas new camp facilities were completed at Estate Mandahl, A parking area was built for the Bluebeard Castle Hotel. In St. Croix a new road has been opened to the east end of the island, and a recreational area has been devel- oped at the East End Estates, providing picnic facilities, bathing areas, and horse and foot trails. The National Park Service has also provided St. Croix with a well-drilling program under expert supervision which is developing wells in many parts of the island. Reconstruction of Government Buildings Outstanding achievements were the completion of the rehabilitation of the Government House and Administration Building in Charlotte Amalie and the Government House in Christiansted, providing mod- ern, comfortable living and office accommodations. The King's Hill Poor Farm in St. Croix likewise is undergoing rehabilitation and is nearing completion. This work has been done under the super- vision of the Public Buildings Administration, Federal Works Agency. 18 • Report of the Governor of the Virgin Islands Conclusion There is immediate and imperative need for funds to permit re- construction and equipment of all medical institutions in the Virgin Islands. Likewise, there is the most urgent need for funds to pro- vide modem sewage and garbage disposal systems. Enlargement of existing water catchment areas, the construction of additional catch- ment areas and storage space to provide an adequate fresh-water supply for the inhabitants of the island, demand attention. Improve- ment is needed in the deplorable housing conditions existing among low-income groups. These are the primary health needs of the islands. To relieve the economic situation of St. Croix, it is recommended that Congress provide by legislation for the cane growers of St. Croix to receive sugar benefit payments. The $6 per ton export tax on sugar in St. Croix must be repealed. This can only be done if there were returned to the Virgin Islands the internal revenue taxes collected on products of the Virgin Islands shipped to the United States. In addition, the return of these taxes would eliminate the need for further annual deficit contributions by the Federal Government. Congressional legislation to effect this is also urged. Removal of these handicaps by congressional legislation would be an act of justice to the people of the Virgin Islands and a substantial contribu- tion by the United States Government to the islands' economy. The execution of authorized harbor improvement work in the har- bor of St. Thomas, and the construction of adequate dock facilities for St. Croix will greatly contribute to the economic progress of the islands. The work of the Virgin Islands Co., the Farm Security Administration, the Soil Conservation Service, the agricultural ex- periment station, the operation of the completed abbatoir in St. Croix and of the modern cold storage market in St. Thomas, the latter scheduled for completion by January 1942, bid fair to develop into a program which will make the most of the meagre natural resources of the islands. There must be intensive agricultural develoj^ment in St. Thomas and St. John. Some of these essential needs can and will be developed through local initiative and action. Others require the assistance of the Fed- eral Government. Through cooperation of both branches, much can be accomplished. The continued interest of the Department of the Interior, and of the Division of Territories and Island Possessions, in the solution of these basic problems, and in the urging of necessary congressional legislation therefor, is earnestly sought. Respectfully submitted. Charles Harwood, Governor. o