Annual report of the Governor of the Virgin Islands
* UMASS/AMHERST * II i|i|i iiiii jiiii imi jiiii mil mil iiiii iiiii ii|i| ii||i ill inii liii iii 312066 0344 2023 4 1963 ANNUAL REPORT THE GOVERNOR OF THE Virgin Islands To the Secretary of the Interior for the Fiscal Year Ended June 30 THE GOVERNOR OF THE Virgin Islands To the Secretary of the Interior for the Fiscal Year Ended June 30 -Annual Report 1963 For sale by the Superintendent of Documents, U.S. Government Printing OflBce Washington, D.C., 20402 - Price 40 cents stach- Contents Page General Information 1 Highlights of the Year 8 Legislation 1" Ofl&ce 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 Agricnlture 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 Kenewal 84 Department of Property and .Procurement 92 Department of Law 94 Department of Public Safety 95 Municipal Courts 101 Office of the P …
Download the original document · Plain text (TXT) · Browse the archive · How this archive works
Original source: https://archive.org/download/annualreportofgo1963virg/annualreportofgo1963virg.pdf
SHA-256 477863a5eac9732209d29bf2e75d1449a41dfa3304815859d3f6e9ccbc115b21
Re-using this document
mixed and recorded per item: public domain by age or as a US government work for what was taken; controlled-digital-lending and restrictively licensed items EXCLUDED, each listed with its reason
Our description, tagging, arrangement, extracted text and machine transcripts are released under CC0 1.0. We assert nothing about the document itself.
Archive identifier LF-477863a5eac9
Document text
* UMASS/AMHERST * II i|i|i iiiii jiiii imi jiiii mil mil iiiii iiiii ii|i| ii||i ill inii liii iii 312066 0344 2023 4 1963 ANNUAL REPORT THE GOVERNOR OF THE Virgin Islands To the Secretary of the Interior for the Fiscal Year Ended June 30 THE GOVERNOR OF THE Virgin Islands To the Secretary of the Interior for the Fiscal Year Ended June 30 -Annual Report 1963 For sale by the Superintendent of Documents, U.S. Government Printing OflBce Washington, D.C., 20402 - Price 40 cents stach- Contents Page General Information 1 Highlights of the Year 8 Legislation 1" Ofl&ce 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 Agricnlture 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 Kenewal 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 HI Selective Service 112 Conclusion 114 in Digitized by the Internet Archive in 2009 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/annualreportofgo1963virg 1963 Annual Report of the GOVERNOR OF THE VIRGIN ISLANDS Ralph M. Paiewonsky, Governor General information Geography A part of the curving Antilles chain separating the Caribbean 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. Jolm 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 thermain crop, though of diminishing economic feasibility. However, farming with machine cultivation is making food crops an attractive new enterprise for both local and export markets. 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 2 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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. Grame fishing is a growing and exciting sport, with sailfish, tarpon, marlin, king fish, wahoo, Spanish mackerel, and tuna among the catches. History 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 lionor of St. Ursula and the 11,000 virgins. The warlike Carib Indians occupied the Virgin Islands at the time of Columbus' discovery, and their hostility defeated colonization until about 1555, when they w^ere driven off the islands by the forces of King Charles V of Spain. During the I7th 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. ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 3 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 tliree 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 cliflf 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. Government The Danish system of government and legal code was continued from 1917 to 1931. Militaiy, 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 tlie islands, natives who were not citizens or subjects of other comitries 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. 4 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS On July 22, 1954, the Congress enaxited 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 Congi-ess 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 5 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 harvesters. 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. mainland. 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. 6 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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. Tariiff 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. Population 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 capita 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. Modem 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 7 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 first local 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. Wlien 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. REPORT OF THE GOVERNOR OF THE VIRGEST ISLANDS 9 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 Kenewal .Board was set up and recognized by the Federal Government as the local agency for administering federally assisted slum clearance projects. 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 sununer 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 a-cute 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 future. 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 completel}- 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- 10 REPORT OF THE GOVERNOR OF THE VIRGEST ISLANDS 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 physicans and other changes which will add 16 new beds. 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 11 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 he 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 year. 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 exports. 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 12 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS farmers in such activities. Crops which can be grown and marketed very profitably include tomatoes, peppers, okra, papayas, and avocados. 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 Ailtime High Revenues increased about 8 percent to a new ailtime 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. Lavy^ 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 13 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 expected. 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 O—64 2 14 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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 yard-age 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 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 15 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 comjnunity 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 the}'^ be disposed of through the General Services Administration to the local government. Legislation 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. 16 Office of the Government Secretary Personnel: Jfi Operating appropriation: $297^89Jf. 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 18 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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 fileMn the office of the government secre- tary a certificate setting forth the -designation, najne 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— REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 19 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. 20 REPORT 01 THE GOVERNOR OF THE VIRGIN ISLANDS 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 Januar\' 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. REPORT OF THE GOVERNOR Of THE VIRGIN ISLANDS 21 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 Island 22 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS , Total assessments and taxes—St, Thomas, St. Croix, and St.. John, 1958-62 Department of Education Personnel: 61^9 Operating appropriation: $S^151i,^28 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 well-being." 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 furtlier 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. Enrollment 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 23 24 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS A seagoins schoolbus carries some 50 hish 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 School. In St. John, a second floor of four classrooms was added to Sprauve School. 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- 26 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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 scheduling. 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 "cra,sh 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 27 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 prpgram, wliich 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, nutritions 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. 28 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Vocational Education and Out-of-School Training A prog:i',am of vocational training in each of the tliree 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 itidustry. 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 placement. 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 working. 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 29 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. Budget 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 follows A. Virgin Islands apjyrojrriation—Fiscal year 1962S3: Division Appropriation Administration $266, 600. 00 Educational programs 2, 5T4, 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 inataliing 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 O - 64 - 3 30 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS C. Toted fvmds 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 1960-61 2, 142,812 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 firet 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 anintercultural educational community, it is felt that the most productive climate for higher learning can be cre- ated in the Virgin Islands. 31 32 REPORT OF THE GOVERNOR OF THE VIRGEST 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 AVliile 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 ap'pro'pridtion: $2^91^43 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 augn>ented 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 in public 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 staffsmember 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. 33 34 REPORT OF THE GOVERNOR OF THE VIRGEST ISLANDS 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. Jolm 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 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 35 for a rateof 9.&, a<decreaseirom.'1961 when there were 164 deaths and R rate of 40.6. : 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 follow :^ Age distribution Virgin Islands Total Percent St. Croix Total Percent St. Thomas and St. John Total Percent Total Under 1 year 1 to 4 years. 5 to 14 years 15 to 24 years 25 to 44 years 45 to 64 years 65 to 74 years 75 years and over Age unknown... 321 100.0 100.0 100.0 12.5 4.4 1.2 4.4 9.7 21.8 17.1 28.6 .3 9.0 4.5 6.4 8.4 19.4 19.4 32.3 .6 15.7 4.2 2.4 2.4 10.8 24.1 15.1 25.3 Leading causes of death—Virgin Islands Number 36 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Number REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 37 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. Croix. 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 hospital. 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 e^Hident 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. 38 REPORT OF THE GOVERNOR OF THE VIRGEST ISLANDS 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 w^ith 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 REPORT or THE GOVERNOR OF THE VIRGIN ISLANDS 39 adults show no symptoms but probably become carriers. Miajor 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 approach. 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. Thomas. 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 40 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 41 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 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 Avere inspected in St. John and 116 in St. Croix. Addition of new "packer" type trucks resulted in extension of the garbage and refuse collection service. Maternal Child Health and Crippled Children's Services The administrative staff of the division was expanded during the fiscal year to provide offices in Christiansted and Frederiksted on St. Croix and also on St. Jolm. A full-time health educator also was added. 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. 42 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS School health examinations were conducted in selected ^ade tlirough- out the islands, with foUowup 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 cx^mpleted, 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 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 43 Department of health statistical data for year ending .June SO, 1963 Charlotte 44 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Virgin Islands Department of Health—Comparative statistical data KNUD-HANSEN MEMORIAL HOSPITAL, ST. THOMAS Number of admissions.. Patient days in hospital Number of clinic visits.. Number of emergency room visits. Major surgical cases Minor surgical cases Number of X-ray examinations. . Laboratory examinations Number of physicians Number of graduate nurses Number of practical nurses Number of nurses' aides... 1958-59 2,978 39,564 28,372 4,441 271 410 1959-60 2,878 40, 631 19, 934 5.720 263 279 3,722 40,968 11 14 17 41 1960-61 3,078 33,081 20,703 7,616 274 347 4,339 42,800 10 28 17 34 1961-62 3,388 34,574 23,017 7,949 320 398 5,239 52, 108 12 26 26 34 1962-63 3,455 37,388 34,305 9,271 387 433 6,448 50, 649 17 34 29 35 CHARLES HARWOOD MEMORIAL HOSPITAL, ST. CROIX Number of admissions Patient days in hospital Number of clinic visits Number of emergency room visits, Major surgical cases Minor surgical cases Number of X-ray examinations Laboratory examinations Number of physicians Number of graduate nurses. Number of practical nurses... Number of nurses' aides 2,069 21,556 19,366 277 198 2,146 31,575 7 22 1,976 17, 929 14,323 2,497 33,428 2,208 Department of Social Welfare Personnel: lJi.5 General Operating appropriation: $ip98yJfi6 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 commissions. The local public assist-ance 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 States. 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. 46 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Comparison of caseloads and expenditures REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 47 Total cost of assistance program, including administration, 1959-63 Category DAA.. ADC AB..-. AD.... MAA. Total Federal category. GA Trust funds Emergency and special aid. Total local category.. Grand total 1959 $199, 824. 92 151,113.88 7, 637. 51 36, 684. 08 395, 260. 39 49,911.84 ,586. 00 6, 482. 76 56, 980. 60 452, 240. 99 1960 $200, 763. 47 182, 509. 79 8, 005. 86 41, 357. 30 432, 636. 42 49, 092. 69 822.00 5, 777. 57 55, 692. 26 488, 328. 68 1961 $222, 690. 29 213, 981. 57 7, 941. 73 47, 308. 70 11,523.76 503, 446. 05 60, 047. 77 716.00 763. 06 61,526.83 564, 972. 88 1962 $265, 529. 05 256, 519. 50 8, 041. 52 47, 049. 87 44, 540. 86 621, 680. 80 76, 655. 70 1, 132. 75 19, 742. 53 97, 530. 98 719, 211. 78 1963 $258, 920. 32 262, 120. 81 7, 900. 20 44, 354. 38 46, 047. 07 619, 342. 78 89, 681. 51 1, 180. 75 6, 717. 55 97, 579. 81 716, 922. 59 Sharing of total cost of assistance program including administration 48 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Location of children receiving service June 30, 1963 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 49 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 50 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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 slielter-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 multifimction 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 III.—A limited amount of casework service is provided for mental patients hospitalized in the Virgin Islands while in institutional care and when being disc/harged. The division has full responsibility for planning and arranging the escort and re- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 51 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 services. 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 respresenting 2,660 persons. Federal surplus commodities received Commodity 52 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Expenditures 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 Office of the commissioner. Bureau of business management Division of public assistance Division of cliild welfare Division of institutions and special programs . Herbert Qrigg Home --. Total. 1959 1960 $24, 400 40,000 214,800 118, 000 40,000 437, 200 $27,000 41, 628 254, 558 138, 275 70,600 532, 061 1961 $29, 977 45,614 308, 558 172, 487 91, 030 647, 666 1962 1963 $30, 032 67, 039 376, 781 199, 163 192, 142 $54, 286 79, 946 452, 600 215,349 121, 545 174, 770 1, 098, 496 Department of Commerce Personnel: 79 Operating appropriation: $936^/79 Foreword 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. 53 54 • REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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 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 56 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS mailing of almost 500,000 pieces of assorted literature pertaining to tourism. During the past year, this bureau made approximately 105,000replies 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 years Fiscal years REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 57 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. 6-Year Comparison Proof gallons 1959 523,513 1960 618, 170 1961 720,758 1962 741,260 1963 840, 341 Excise tax payments on shipments to the United States during fiscal 1960, 1961, and 1962 include approximately $1,070,000 of alco- holic spirits other than rum. Although the rum promotion budget is inadequate by comparison to competition from the rums of Puerto Rico, the Virgin Islands Rum Council has set a goal of $8,500,000 for the return of internal revenue taxes for rum shipped into the United States for fiscal 1964. Marine and Aviation Services This division supervises and operates the government-owned docks, wharves, and airports and has charge of registering and licensing small boats, both private and those for public hire. The service at present consists of the harbor division, St. Thomas, covering all marine activities in the islands of St. Tliomas 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. Tlie 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. 58 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Frederikstcd, 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 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 59 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 Scheduled airlines Nonscheduled and private. Air taxi ...1 Passenger arrivals Passenger departures Total revenues Alexander Hamilton Airport: Military aircraft Scheduled airlines Nonscheduled and private. Passenger arrivals Passenger departures Total revenues 1,166 6,372 1,208 910 7,001 2,598 659 7,597 3,266 1,082 10, 117 3,846 93, 397 (') $39, 913 340 1,520 1,800 43, 621 42, 865 $21, 817 125, 384 (') $27, 206 360 2,504 (') 95, 536 96, 665 $25, 387 120, 717 129,883 (') 400 2,865 2,880 68,829 68, 748 (») 189, 496 181,651 (') 2,000 3,655 2,892 86. 366 88. 624 (') 939 8,737 2,101 4,017 211, 600 248,536 $43, 183 2,248 3,268 3,606 123. 774 126, 937 $76,695 1 Figures not available. Division of Trade Eight new manufacturing industries were established during fiscal year 1963, less than fiscal year 1962, but greater than all other previous fiscal years. Calendar 1962 was a significant year for the Virgin Islands with respect to the volume and composition of external trade. Total imports climbed to $61,803,509, representing a dollar increase of $11,052,483 over the previous year and a corresponding increase of 26 percent. The volume of exports represented a phenomenal rise over exports of the previous year. The 1962 exports were valued at $20,- 064,920 compared with exports of $9,133,124 in the previous year, or an increase of 116 percent. Of the total exports, $19,118,647 were shipped to the United States. Textile processing accounted for 46 percent of exports to the United States, while watches and watch movements were 13.5 percent of the exports. Comparison of imports and exports—Total %'/ *y 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 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 ojBfered a greater net return per acre (sugarcane, $1S3; 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 62 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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. Abattoir The St. Croix Abattoir at Estate Anguilla is almost completed. It is expected that this new plant w411 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 w^ater 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 resort. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 63 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. 64 REPORT OF THE GOVERNOR OF THE VIRGrN" 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 Agency Personnel: 35 Operating Federal grants: $125^812 During the fiscal year, tlie 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. 66 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Counseling, Testing, and Related Services to Industry and Labor 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 w^hich emerged in previous years. Department of Public Works Personnel: Operating appropriation: $2^72J^^990 Permanent^ 327 Special projects appropriation : $32^799 Per diem^ 622 Matching funds appropriation: $Jp^390p09 Foreword 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 workei-s 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. 67 68 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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- v^ide 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 70 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS PUBLIC WORKS STATISTICS—Continued Utilities and inspection—Continued NUMBER OF INSTALLATION PERMITS Department of Finance Personnel: 158 Operating appropriation: $865y^^l 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 operation. 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 operations. 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 treasuiy. 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 71 72 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS former employees of the U.S. Internal Revenue Service, two of whom have had substantial training and experience as revenue agents. 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 Service. 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 73 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 finid 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. 74 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 75 -^ o o C C8 o o a 03 w o a 03 u o a 08 « o COP-00005CMC0 005»C N o^o 00 c^ r^ lo ^^^ '-' « ^ CO '^s* -^ Oi CO t^ eg iO 13 «—I Oi o ^ ^ 3 to Tt* (M CQ CO w 00 <© 05 5 o CO c^ OS r^ 05 --I CO t^ 30cD CO •^>'5 t^C^TPOQ^^Q—: — -- - ^ 0005CsC5»0000'OTt<'-<0 cOioaioiu^'^t>^t~*QOi03 rHoocS^osoooocoiScooo ^OiOt^tCOOi(NTj«'^J'CO .oiososoocs^oosaoo-^ sO"*?i-^osc«—<eoco«o 5 ^ ' ^' 40 Tf< t!< * * ' TjJ r-o»o-^cooococ^b-»£3 iOO-^OCO^-t^COb-005 t^c^'«»'0D050005aioo-H ^r^uboo'«t"t^co-^t^»C'"S< 00 Os" (N of t^ 1-*" C4" ;0 CO CD CO ^^<Tr^^tocot*<-icoc^o MCO ^P0"^CO -^ •^CDC005COt^*ONU3 00 00' S -"t" O »C CO »o QO c lift OiC CO OO t -^Sr^ J^"- »o t^ .—I CO OS *c OOOO CO '-' CO 3 5cDC<)cor»>ocDgocD^-^ oOcO-^C^C^QQQOS'^Oi OSCOQ^COOt^OOiOOOO rrc^cOU5^0"<r^»0-^-^ COC«Oi.^»OOt^»O^OTj' CO -"f" t^ t^'^'^ai"'*r oT ^ r- »o CO OS 00 « CO c« cc c^ o ooc^ics c5 CO'-H Tf 1-4 oso OS ooco lO CO c r-t CO C r-t or- kC 00 o CD OS r- 00 1-* o CD c3 Z5 05 c8 +j £ » oj S sags 05 ea o' ^o a> Bl];- J3 1^ I-" o 3^ ^&2S2S •o .-^ fc- o S a .a 43 9 S - 5 » [JO a C a » * 05 2o 76 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS C3 <^V. fk u o oj S 1- -w Q,3 TjJ Tj« O lO Tji CO r-J mo S g (£) <£)C0»O O) Oi sssgsgs S^H Ol 00 "^ M C* GO t^ 0> OS OOCOCO C^ M C<IC^ CD 00 r-^ O o o S h r* o o> ^ CO 05 r^ c^ 1-H 00 CD c*^ CO c<i 00 r^ CS »ri t-^ CD »d lO CO ^ 5S lO OO -H 2 S 55 O OS b- ^H U5 OS »—I "-H ^ lO C^ CO rp O CO -^ O oi C4 ^' T}^ iC »0 CO 00 CO CO 00 ^ CO CO CO Tj* CD O 00 00 CO CS i-H C^ 1-H Tj^ CO I^ 00 CD CO T-( CD CO I-" CO 00 b- 00 CO CO Tt< 00 i^ *o cs go CO CO CO o r^cD i-H oioi r^ Tj5 1^ 00.-t COQ'^ 1-H 00 Tji co»o ^'(Ncd" c^ C OS'S S So § *5 CO OCOC^OO^OSQQ Tt^ 1-H C^ O »0 CO »o c5 1-J -^oscd^ioc^^ wo t^ CS CO »0 OS 00 CO t- t^ t-- lO r^ T}< o t—I ^ o r^ CO r^ CO CO t^ -^ »C CO 1-1 (N OS CO 00 00 to OS r- ^ CO b* ^H 00 o '~^ lO CO O Q OS ^ CD 00 lO -H CD CO CO i-H OS is GO I ^ Tj* lo OS CO >o lO c5 ^ •^ i-Hoodwiioc^^ OS C^ C<1 OS C^I t^ CO 00 * 00 OS CO CO "-H r-H GO C^ Tj5 lO M GO -<** ^ lO CO CD 00 CO 1-H O '^ -^ <N CD fh CO »o r>- OS g'^ I^CO lO 04 rp ^H O 00 to lO C^ i-t OO i-To" ON -H cjcq .H •Is OS t^o^c^Tt<uor^ CO lO »0 OS 00 t^ O 00 CO 00 OS t-^ »o lO c4 -^co ^ b-r-lC^COlO c t- i-i 00 ^ t* •* c CD CO ^ OS c<i Q c b- t^cD C^ CO c5 c CD CD ^ CO C4 OS -^ ^ 1-H u5" 00 <3?'t^c OS 00 to C5 CO lO t O -^ lO * Tt< Tj* - a a a g a t-2 ••eg a *-a § 3 O 60 O .2 8 a PI >i,KWm&HO<!a " § 2 > .s t '•<ca --•o d a^ S 3 d d'2aa^«a£ '& ^TJO S O m3 "o£^^E,S3 '^t^ "a Oi l/l o XI 05 3^s > 3-C -: a DTS o o o M •g£KWMOK<J REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 77 GOVERNMENT OF THE VIRGIN ISLANDS Comparative statement of revenues and receipts, fiscal years 1959-6 GENERAL AND MATCmNO FUNDS Percentage of annual Increase (decrease) General fund: Real property taxes Income taxes Inheritance taxes Stamp taxes Trade excise and gross receipts taxes. Custom duties Licenses, fees and permits. Corporation franchise tax... Fines, forfeits, and penalties Interest on government funds Other income Total general fund. Matching fund: Internal revenue matching contribution Interest on government funds Contributions from other funds (reimburse- ments) , Total matching funds. Grand total 1958-59 Percent (0.80) 36.38 185.31 92.39 23.13 (3.48) 3.66 91.01 53.65 (1.51) 25.55 14.61 (54. 41) 52.00 1959-60 Percent 34.87 41.74 (39. 38) (26. 41) 33.75 71.03 22.85 269. 69 35.65 (81. 64) 38.94 38.80 26.98 84.56 (13. 18) 25.88 33.20 1960-61 Percent (6. 59) 29.82 84.87 57.89 14.48 11.34 12.38 (1. 70) (14. 76) 263. 87 28.51 20.91 32.06 224.67 81.98 33.43 26.03 1961-62 Percent 43.44 28.50 (11. 78) 20.23 21.96 73.02 16.54 23.25 17.03 98.35 23.87 26.59 (4. 94) (30. 44) 36.19 (5. 46) 12.70 1962-63 Percent 18.19 4.97 (53. 23) (.63) 17.25 (13. 16) 13.97 77.41 90.50 96.60 51.65 24.44 19.25 112.41 721-848 0—64- Office of the Director of the Budget Personnel: 5 Operating appropriation: $39^90 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 reconmiended 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 agencies. 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 oi the preceding fiscal year, 78 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 79 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) : I960 1963 Increase Total revenues Income taxes Real property taxes Trade and excise taxes. Gross receipts taxes Customs dues (gross) _ . Education Public works Health Welfare Safety Commerce and Tourism Total budgets $7,274,000 4, 332, 000 374. 000 752,000 434,000 457, 000 1,853,000 1,920,000 1, 967, 000 521, 000 560, 000 221,000 9, 112, 580 $12,000,000 7, 582, 000 589,000 1,084,000 832.000 1,220,000 3,123,000 2, 695, 000 2,991,000 1,079,000 897.000 645,000 17, 215, 206 Percent 64.97 75.02 57.49 44.15 91.70 166. 96 68.54 40.36 52.06 107. 10 60.18 191. 85 88.92 Operating budget—fiscal year 196S [June 30, 1963] Act No. Appropri- ated AUotted Unallot- ted 835 877/907/948 877/948 877/948 877/907/948. 877/1014/1015..-. 877 877/907/948 877/907/1034 907 877/9'o'779"2b/i634r 877/907/917/948.. 877/907/1034 877/907/917/1000- 877/907/930/948. 877/^8 877/907/948/1034 877/948/1003 877/948 877/917/930/948/1000 877/948 877/907/917 877/1003. 877/948.. 877/1034. 877/1034. 877/1034. 1003 The legislature Office of the Governor Governor's contingent fund... Office of the budget director Virgin Islands Planning Board Division of personnel Probation and parole office Administrative assistant, St. Croix Administrative assistant, St. John Human relations office Government secretary's office Department of law Department of finance Department of education. General fund: $1,635,273. Matching fund: $1,487,893. Department of commerce Department of health General fund: $1,491,843.97. Matching fund: $1,500,000.00. Department of public safety Department of public works Department of social welfare Department of agriculture and labor Department of property and procurement... Department of housing and community re- newal. Municipal court, St. Thomas, and St. John Municipal court, St. Croix Board of election, St. Thomas Board of election, St. Croix Board of election, St. John Office of the supervisor of elections $200, 257, 54, 39, 59. 212, 31, 57, 35, 10, 297, 119, 865, 3,154, 000.00 100.00 550.00 090.00 090.00 230.00 100.00 380. 00 500. 00 000.00 894.00 210.00 441. 00 328.00 663, 167. 00 2,991,843.97 919, 175. 00 2, 724, 990. 00 1,098,496.00 334, 700. 00 282, 902. 00 105, 970. 00 42, 150. 00 39, 850. 00 16, 000. 00 18, 000. 00 3, 600. 00 15, 000. 00 $200, 207, 51, 38, 57, 211, 30, 55, 35, 9, 296, 119, 865, 3,123, 000. 00 100. 00 550. 00 371.00 790.00 380. 00 320. 00 160. 00 500. 00 450. 00 722. 00 210.00 441. 00 166. 00 644,791.00 2,991,843.97 897, 827. 00 2, 695, 350. 00 1,078,901.00 327, 961. 00 272, 652. 30 103, 865. 00 41,550.00 39. 850. 00 15,000.00 16. 800. 00 3, 600. 00 15, 000. 00 $50, 000. 00 3, 000. 00 719, 00 1,300.00 850. 00 780, 00 2, 220. 00 550.00 1,172.00 31, 162. 00 18,376.00 21,348.00 29, 640. 00 19, 595. 00 6, 739. 00 10, 249. 70 2, 105. 00 600.00 1,000.00 1,200.00 Total 14,648,756.97 14,446,151.27 202,605.70 80 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Operating budget—fiscal year 1963—Continued SPECIAL PROJECTS Act No. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 81 Operating budget—fiscal year 1963—Continued CONTINtTED PROJECTS Act No. 82 REPORT OF THE GOVERNOR OF THE VIRGEST ISLANDS Summary of matching fund appropriations, fiscal year 1963 Project No. Project Appro- priated Released by interior Allotted Unallot- ted VI-2. VI-5. VI-6. VI-7. ST-111. ST-112. ST-113. ST-114.. ST-116.. ST-117.- ST-118-- ST-119.. ST-127.. VI-13— ST-103-- ST-120- ST-121. ST-122. ST-102. ST-123. Contingencies to be used for various projects in the discretion of the Governor. For administration, inspection, and oflBce 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. (6) For opening of new road through homestead plots at Hospital Ground. (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 "Firebum 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- cludtag road construction and mainte- nance equipment and additional garbage trucks. 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 Rnud 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- Taarneberg. 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 youth. For street lighting at Contant, Mahogany Gardens, Anna's Fancy, Hospital Grounds and other areas. $25,000 75,000 50,000 100,000 20,000 300, 000 300, 000 75, 000 40, 000 100, 000 84, 000 450, 000 1,000 99,000 100,000 50,000 10,000 100,000 100, 000 50,000 20,000 $25,000 75,000 50,000 100,000 20,000 300,000 287,500 $25, 000. 00 75, 000. 00 50, 000. 00 100, 000. 00 20, 000. 00 300, 000. 00 287, 500. 00 12, 500. 00 150, 000 137, 500 137, 500. 00 75, 000 40, 000 100, 000 84, 000 450, 000 1,000 99,000 100,000 75, 000. 00 40, 000. 00 100, 000. 00 84, 000. 00 450,000.00 -. 993.53 99,000.00 -. 12, 500. 00 6.47 100,000.00 50, 000 50, 000. 00 10,000.00 100,000 50,000 20,000 15.52 50, 000. 00 20,000.00 100,000.00 99, 984. 48 REPORT OF THE GOVERNOR OF THE VIRGEST ISLANDS 83 Summary of matching fund appropriations, fiscal year 1963—Continued Project No. Department of Housing and Community Renewal Personnel: 21 Operating appropriation: $105^70 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 housino; 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 tlie 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. AVhile 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 84 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 85 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 cne-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. 86 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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 tire 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 REPORT OF THE GOVERNOR OF THE VIRGEN ISLANDS 87 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 m.odern 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 Cliristiansted ; 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. Croix. 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. 88 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 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 w^ill be built of wood in order to expedite the construction. In St. Croix additional houses will be constructed at Kichmond 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. Cro REPORT OF THE GOVERNOR OF THE VIRGDST ISLANDS 89 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 otlier 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 matclied 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 Autliority, 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. 90 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Of four projects totaling 480 units in the planning stage, one of 200 units in Christ iansted, 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 Islands 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 programs REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 91 Area Department of Property and Procurement Personnel : l^lf. Operating appropriation : $282^02 Division of Procurement and Supply Purchase orders issued by the division amounted to 10,336 with a value of $8,732,351.18. 5-year comparison 1959 $3,314,952 1960 3, 051,502 1961 6,098,554 1962 6,582,993 1963 8, 732,351 These totals inchided 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" contracts. 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. 92 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 93 Federal surplus property allocated to the Virgin Islands in fiscal 1963 amounted to $15,342.11 compared to $4,561 in fiscal 1962. The Virgin Islands are considered an "under region" and received No. 1 priority in the allocation of surplus property. Land Division The termination of the home loan and homestead functions of this division was accomplished when the employees of the program were transferred to the department of housing and community renewal dur- ing the early part of the fiscal year. There was very little accom- plished in the field of price and rent control due primarily to the lack of effective legislation. A new weights and measures law has been enacted and personnel for administering it will be trained. 721-848 O - 64 - 7 Department of Law Personnel: 16 Operating appro2)riatlon: $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 tlie 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. 94 Department of Public Safety Personnel: 168 Operating appropriation: $919^76 General The increase in population and growth of industry and tourism con- tinue to intensify the already critical demand for police services. This task is further complicated by a decentralized pattern of living which prevails throughout the 132 square miles of the territory. To cope with the situation and the changing needs of the growing insular community, the department undertook the accomplishment of the first phase of an action program designed for more effective utilization of its manpower within the police division. A territorywide training program in modem law enforcement tech- niques was conducted. A study of the photographic laboratories in both St. Thomas and St. Croix was undertaken in collaboration with the Federal Bureau of Investigation, resulting in improvement of their operation. A troubleshooting squad was organized to cope with the growing number of teenage gangs springing up throughout the St. Thomas community, and the attorney general's committee on juvenile delinquency was created. Steps were initiated leading to the establishment of a police library by the acquisition of books and treatises on police administration and law enforcement. The license bureau, as a result of an organization and method study, standardized its records management and its sta- tistical procedures and, in collaboration with the department of fi- nance, established simplified accounting and auditing procedures. A request for the services of two qualified investigators was approved to combat more effectively, the rising crime rate. A new deputy commis- sionership was created in St. Thomas charged with full responsibility for the administration and coordination of the activities within the district. Vacated by resignation was the position of deputy commis- sioner for the St. Croix District. New positions also were filled within the ranks by promotion and reorganization w'hich resulted in a gen- eral bolstering of morale. 95 96 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Bureau of Criminal Investigation Two investigator positions were approved to increase the effective- ness of both the bureau in St. Thomas and that in St. Croix. During the year 1,427 criminal cases were investigated as compared with 1,242 for the previous year. The increase in the number of criminal cases, when taken in proportion to the total population, continues to be minute. However, the department is concerned with the reflection within this group of the number of cases attributed to minor offenders. The following chart gives a summary of the type« of cases handled during the fiscal year 1963: Number of criminal cases handled Type Criminal iiomicide; Manslaughter Manslaughter by negligence. Rape Robbery Aggravated assault Burglary.- Petit larcency Grand larceny Auto thefts Other assaults Forgery Embezzlement and fraud Stolen property Weapon-possession Sex offenses Offenses against family Drunkenness Narcotic drug laws Disorderly conduct Gambling and vagrancy All other offenses Total. St. Thomas- St. John 1 1 15 5 23 120 90 289 4 19 39 1 8 7 1 10 1 65 St. Croix 7 2 15 3 28 170 197 103 10 7 13 1 16 14 1 23 2 116 728 Total 3 30 8 51 290 287 392 14 26 52 2 24 21 1 1 33 3 181 1,427 5-year comparison— Total number of criminal cases handled 1959. 338 1960 406 1961 669 1962 1,242 1963 1,427 Patrol Bureau Despite increased productivity, demands for police service continued to exceed the patrol forces' best efforts. Manpower was spread dan- gerously thin throughout the main cities in the islands of St. Thomas and St. Croix. Even though efforts were made to overcome this situation through recruitment, the rate of attrition in the loss of per- sonnel through resignations and other factors severely reduced the number of patrolmen available and adversely influenced the level of service. Despite this condition, inservice training brought encourag- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 97 ing results in efficient "frontline" police performance. It further resulted in the establishment of better police-community relations. Highway Patrol The intensified campaign to provide more safety on the public high- way was continued with particular attention being given to the island of St. Croix. Despite increased surveillance of the roads in both districts, the number of deaths from accidents increased from 4 in the previous year to 13 for this year. The number of traffic accidents increased to 1,416 as compared to 924 for the previous year. A total of 238 driving licenses were suspended. The situation will continue to grow more serious with the ever-increasing number of registered vehicles moving over the public roads and highways. To meet this problem, it will be necessary to increase the flexibility of the patrol through replacement of mobile equipment and the acquisition of additional new units within both districts. Vehicular registration and licensing—Virgin Islands Motor vehicles—private. . Taxicabs and rented cars.. Trucks—pickups Buses Trailers Motorcycles Motorbicycles. Motorscooters Tractors Bicycles.. Drivers' licenses: Private Taxi Learners' permits Motor vehicle transfers TraflBc tickets issued , Fees from registration Fines for traffic violations . visitors' permits... 3,414 1,009 479 32 665 3,578 859 769 825 $95, 674 10, 005 9,719 3,027 1,237 1,206 30 47 136' 713 6,064 600 1,026 1,005 1,877 $117,078 15, 429 14,846 1961 3,610 1,339 1, 537 35 28 91 16 82 11 385 6,772 1,063 1,131 1,061 2,888 $136, 275 21,785 15,194 1962 4,185 1,371 1,782 31 28 72 24 96 5 850 7,848 1,419 1,561 1,640 2,682 $163, 736 25,215 21, 907 1963 4,736 1,712 1,802 66 27 53 19 161 12 644 8,719 988 2,018 2,060 3,189 $168, 061 29,266 22, 491 1962 St. Thom- 2,251 951 803 10 11 29 46 5 410 3,780 850 1,021 997 1,784 St. Croix 1,934 420 979 21 17 43 24 50 440 4,068 569 540 643 1963 St. Thom- 2,854 1,183 883 50 5 22 96 11 272 4,356 685 1,383 1,165 1,915 St. Croix 1,882 529 919 16 22 31 19 65 1 372 4,363 303 636 895 1,274 Law Enforcement The following figures show the activities of the police division as compared with the previous 4 fiscal years 98 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 99 30 percent of the inmates are engaged in the making of belts, furniture, fish nets, and ornaments. Others are engaged in such skilled tasks as upholstering and radio repairs. Money received from these spare- time occupations is used in part by the inmates to assist in the support of their families. Fire Division The fire division responded to 243 fire calls as against 178 for the previous year. The fire losses in St. Thomas and St. Croix amounted to $69,199 as against last year's losses of $34,378. Standing out most prominently are tlie large losses which were suffered in St. Croix during the fiscal year due to sugarcane fires—some 248 acres were damaged or destroyed with a value of $52,185. The fire division acquired two trailer-mounted pumps capable of delivering 1,000 gallons of water per minute one-half mile away from the point of suction lift. The legislature appropriated the sum of $20,000 for the purchase of two water tank trucks for the island of St. Croix. The need for additional firefighting equipment to protect life and property is very critical. There is also an immediate need for an eflfective system of radio communications inter- and intra-island. Civil Defense During the year, the civil defense organization initiated its disaster plans and developed an operational survival plan for the territory. Steps were taken to improve the warning capability of the St. Croix organization by the installation of additional outdoor warning de- vices at strategic points in the central and western sectors of the island. Action was taken to stock designated fallout shelter spaces in the island of St. Thomas with food, water, medicines, and radiological detection kits. A territorywide exercise, "Operation Top Hat," was conducted during June 1963. Reports from all sources declared the exercises highly successful. The emergency resources planning committee for the Virgin Islands was created in December 1962. Some 14 different task groups are presently engaged in the preparation of postdisaster plans which will affect all segments of insular economic activity. Home Guard The St. Thomas Home Guard unit rendered notable assistance to the police division and civil defense. Special duty units were made 100 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS available to the Virgin Islands Corporation at the Harry S Truman Airport, and to the St. Thomas Park Authority at Magens Bay for auxiliary^ police duty. Commendations were received by the St. Thomas miit for the conduct of its operations in these specific areas and throughout the community. The St. Croix unit, activated dur- ing the previous fiscal year, was granted space at King's Hill on a temporary basis in which to establish its headquarters. Uniform procurement for this group was accomplished. The major problem still remains that of finding suitable permanent quarters for both the St. Thomas and the St. Croix units. There are 57 home guard mem- bers in St. Thomas and 25 in St. Croix. Police and Fire Commission The commission held seven hearings for the year involving such charges as insubordination, conduct unbecoming an officer, and neglect of duty. Suspensions ranging from 5 to 15 days were ordered in five cases and two of the cases were dismissed. Parole Board The parole board held its regular twice-a-year meetings and appli- cants for parole were heard and cases reviewed. At the December 1962 meeting 12 cases came before the board for recommendation. Of that number, five were recommended for parole and later approved by the Governor. In May 1963, 12 cases came before the board for examination ; of that number 5 were recommended for parole and later granted parole by the Governor. Budget The actual obligations incurred for operating the department of public safety over the past fiscal years may be observed from the following comparative chart Comparison of actual obligations, fiscal years 1959-63 1959 I960 1961 1962 1963 Commissioner's office Police and prison division Fire division Civil defense .__ Home guard- Police and fire commission Parole board Training, including 2 police instructors. Traffic advisory and safety commission. Total _ $29,715 335. 256 90.944 1,518 396 29 $31,018 401,382 116.731 2,618 1.267 110 192 $80, 751 482. 998 129.660 2,434 3.951 251 112 $98, 789 548. 293 134.003 5,617 2,683 261 95 457, 926 553.318 700.157 $101,011 560. 1S6 162, 927 17.584 7,080 349 120 4.800 854,126 The Municipal Courts Personnel : 13 Operating appropriation: $82,000 St. Thomas and St. John During the year a total of 4,094 cases were disposed of in the munic- ipal court. Divisionally, they are as follows, including preliminary hearings Oriminal division 2, 547 Civil diviskin 233 Small claims division 663 Juvenile and domestic relations division 258 Conciliation division 393 Total 4, 0&4 Two hundred and fifty-five applications were made for marriage licenses. Of these, 236 marriages were reported, as follows Anglican Church 29 Apostolic faith 2 Calvary Baptist Church 4 Church of God 1 Jewish synagogue 3 Lutheran Church 17 Methodist Church 51 Moravian Church 25 Municipal court 50 Pilgrim Holiness Church 2 Roman Catholic Church 50 Seventh Day Adventist Church 2 Total 236 During the year there was one coroner's inquest held. In this case the deceased was found to have met his death through accidental means. Extensive renovation work in the courtroom and offices, including repainting, tiling, and air conditioning of offices was accomplished during the fiscal year. The total cost of operating the mimicipal court was $35,132.39. A total of $29,644.85 was collected from court fines, notary fees, court costs and fees, and other miscellaneous charges. Comparative figures covering a 5-year period are given below. 101 102 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Comparative figures REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 103 Seventh Day Adventist Church : Pentecostal Church 7 Pilgrim Holiness Church 10 Spanish Methodist Church of God 2 Jehovah Witness 3 United Brothers in Christ 1 Total 187 The municipal court of St. Croix collected revenues totaling $21,549.50 from notary fees, miscellaneous police and court fees, court fines, court costs and other charges, representing an increase of ap- proximately 26 percent over the court's revenues of the preceding year. The total cost of operating the municipal court was $33,593.47. This figure is derived from the actual obligation documents in the court's office, as tlie accounting is handled by the department of finance in St. Thomas. This amount does not include the salary of $5,800 for the reporter-secretary which was not filled during the fiscal year 1963. Comparative figures—5-year period Office of the Probation Officer Personnel : 5 Operating appropriation: $31^00 During fiscal 1963, 40 cases were received, making a total of 142 cases handled during the year. Of this amount, 19 cases were termi- nated during that time. A total of 1,000 investigations were made during the year. A total of 773 reports were written for an increase of 590 over the previous fiscal year. A breakdown of the reports is as follows 634 on inmates at Riclimond Penitentiary 101 to the courts 26 parole 1 )oard 12 for other states A very high rate of adjustment to probation and parole was experi- enced during the year. Of the 145 individuals on supervision, only 2 committed offenses which necessitated revocation. One was a parolee and the other a probationer. Parole Board Plans were made during the fiscal year for a major overhaul of the Virgin Islands penal and correctional system. Steps are being taken to implement recommendations made by the U.S. Director of Prisons in his report to the Governor, following his survey last year of the local system. The report, recommended construction of a new, modem, and versa- tile institution for the custody, treatment, and rehabilitation of adults charged with or convicted of crime and for detention of the more serious young offenders. It further recommended reorganization of the administrative structure for operating correctional facilities and complete modernization of statutes and regulations with regard to prisons, parole, probation, and young delinquents. The report called for reconsideration and revision of present policies with regard to budget and salaries for correctional personnel, parole board facilities and officers, probation officer servi^^'^ to district and municipal courts and detention of young boys under police supervision. The Governor appointed two committees, both headed by the chair- man of the parole board. One committee was charged with recom- 104 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 105 mending a site for the new prison. The other was to implement the other recommendations of the U.S. Director of Prisons. In its report, the prison site committee recommended a tract of 150 acres of land in the Christiansted District of St. Croix. Negotiations were commenced for purchase of this land from the Virgin Islands Corporation. Terms for acquisition of the site are now under active consideration by the Board of Directors of the Corporation and early agreement is expected. The Governor then will seek necessary author- ization by the legislature to buy the site and push on toward early construction of the new prison facility. The chairman of the committee to implement further recommenda- tions of the U.S. Director of Prisons held 4 days of conferences with the Director in Washington. As a result the Director agreed to assign members of his staff to work on preliminary plans for the new prison, revision of the Virgin Islands Code to include drafting of a new comprehensive correctional law, and new prison routines for Richmond Penitentiary pending removal of prison operations from jurisdiction of the department of public safety. With the assistance of the ILS. Director of Prisons, the possibility of Federal aid in financing the new penitentiary was explored. It is hoped that funds may be secured under the Public Works Act by the Area Redevelopment Administration which in turn would allot funds to the Community Facilities Administration for reallocation to the Virgin Islands. Planning Board Personnel : 10 Operating a/ppropriation : $59^90 Work continued during fiscal 1963 under the contract with the Housing and Home Finance Agency for the urban planning assistance grant of $11-3,875, the first such grant in the Virgin Islands. This is for preparation of topographic maps and comprehensive plan studies for guiding the future development of the three islands. The planning board this year administered zoning and subdivision regulations enacted by the legislature. A number of applications for exceptions and variances were considered. To facilitate this, biweekly meetings were lield in St. Thomas and St. Croix. One meeting was conducted at Cruz Bay, St. John. Public hearings also were held on the same schedule. During the year, a study was conducted and recommendations made for a new post office site. Conferences were held with the Federal officials involved concerning parking facilities and architectural treat- ment of buildings. The board also assisted the College of the Virgin Islands with re- spect to sites and architecture for development of its campus. Other services rendered were for preservation of historic architecture, review of legislation for housing aids, formulation of trailer park regulations, and policies pertaining to houseboats. Training of a Virgin Islander for the post of city planner was con- tinued in the Graduate School of Planning at Harvard University. 106 Division of Personnel Personnel : 16 Operating appropriation: $96^900 Legislation of significance to personnel administration, which was passed and received executive approval during the past years, in- cluded: (1) A bill to permit earlier retirement of legislators; (2) a bill to prohibit nonmerit discrimination in the public service; (3) a bill to revise the pay plan for employees in the classified service of the government of the Virgin Islands. This latter bill is perhaps the most significant piece of legislation to affect the salary administration of classified employees for several years. Also included in an appropriation bill passed and approved during the past year was a provision authorizing the Governor to grant in- creases in salaries to unclassified employees which in his discretion will be comparable to increases granted in the new pay plan to classified employees. Employee training has been given continued emphasis. Twenty officers of the government attended an intensive course in management. The course was so successful that discussions were immediately entered for repeating the course in St. Thomas and holding a similar seminar in St. Croix. During the past year, the Governor delegated several personnel functions to the director of personnel, thus permitting independent approval by this officer of a wide range of personnel transactions. The following is a departmental breakdown of positions in the classified and unclassified service as of June 30, 1963 107 108 HEPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Number of positions by departments {classified and unclassified—Executive branch ' Departments Human Relations Commission The work of smooth enforcement of the Islands' comprehensive Civil Rights Law was aided by the continued efforts of the Governor's Human Relations Commission in fiscal 1963. The commission quietly investigated complaints submitted to it and worked to settle these by mediation. Wliere misunderstandings ex- isted, conciliation was used to settle these differences in an atmosphere of reason and without recriminations. While there are no statistics to highlight the work of the commission, the results of this work are evident in the fair and equal treatment of all citizens without regard to race, creed, or color. 109 721-848 O - 64 - 8 Traffic Advisory and Safety Committee Growth of the urban areas in the Virgin Islands and the steadily increasing number of motor vehicles has contributed to traffic and parking problems. To cope with these problems, the traffic advisory and safety commit- tee, authorized by the Fourth Legislature, undertook a comprehensive survey of traffic patterns to assess the most pressing needs. A 10-point traffic plan was prepared and recommended for the town of Charlotte Amalie, where problems are the most aggravated. This plan included projects for rerouting, widening and improving key streets, covering gutters, cutting new roads and extending existing ones, building connecting bridges, painting lines to define traffic lanes where needed, installation of traffic lights, and expansion of down- town parking areas. Estimated cost of the plan is $400,000. Recom- mendations for its adoption were submitted to the Governor for re- ferral to the legislature. 110 Public Utilities Commission At the beginning of the year, the West Indian Company, Ltd., petitioned for an increase in its schedule of storage rates. Company representatives stated that in recent years the transit warehouses had become hopelessly congested because consignees would not pick up shipments when they were ready. This situation was producing higher operating expenses and lower efficiency in sorting cargo. The company contended and the commission agreed that an increase in storage rates would prove to be an effective incentive for people to call for their cargo within a reasonable length of time after notices of arrival had been received. The commission held several public hearings concerning a later petition from the West Indian Company for an increase in their landing and loading charges. The public and representatives of the local government were invited and did attend. On June 6, 1963, the commission approved an increase of 20 percent to become effective as of that date. However, since the company had requested a 25 percent increase, it was agreed that the company would be allowed to present such rebuttal evidence upon the testimony heard as it might wish at some future date. To this date, the company has not presented such rebuttal evidence. The commission approved a petition from the Manassah Bus Line, which has an exclusive franchise for the island of St. Thomas, to institute bus service between Charlotte Amalie and Red Hook—five trips daily at a fare of 40 cents per trip. A number of matters were presented by the Virgin Islands Tele- phone Company. During the year the Commission 1. Approved regulations concerning joint user service, deceased subscribers, and lease and sale of property 2. Approved temporary schedule of rates, submitted jointly by the Virgin Islands Telephone Company and All America Cable and Radio, for interisland telephone service, upon condition that an amended application for approval of the rates would be sub- mitted at a later date (this amended application would be based on actual experience with the news system) ; 3. Authorized the company to initiate a 50 cents per telephone per month charge for unlisted telephone service. Ill Selective Service Personnel: 5 compensated Operating appropriation: $29,954. 25 uncompensated Registration of men attaining the age of 18 years was continued as required by law. This brought the total of registrants to 5,764, rang- ing between 18 and 40 years of age, in fiscal 1963. There were 435 new registrations, slightly less than the 445 registered in fiscal 1962. However, the trend over the past few years continues to reflect the higher birth rate experienced during World War II. Of the approximately 2,100 men who have entered service since 1950, 1,415 have been inducted through the Selective Service process, while approximately 700 entered through direct enlistment. The two local boards, one serving St. Thomas and St. John, and the other serving St. Croix, met monthly to complete 1,150 classification actions—none of which was appealed to the Virgin Islands Appeal Board. A sizable number of these actions were reclassifications of Class I-A registrants with children to Class III-A, and the reclassifi- cation of certain registrants to the new Class I-Y, a classification re- served for those registrants not now qualified for induction but who are presumed to be qualified generally in time of national emergency. Both classes represent deferments. Examinations More Stringent Preinduction physical examinations were administered to 121 regis- trants at armed forces examining stations. Of these, 50 were found acceptable and 71 were not acceptable. The tabulation indicates re- sults over a period of five years. While no particular trend is indi- cated in these results, it is noteworthy that the difference in the accept- ability rate occurring between 1959 and 1960 is due to the adoption of more critical testing standards, which were again raised in the closing months of this fiscal year. 112 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 113 Conclusion The Governor of the Virgin Islands took office with a firm resolve to move ahead in all the social, economic, and cultural programs so aggressively initiated and pushed forward by the Federal administra- tion. The people of the Virgin Islands and a majority of their elected leaders joined forces with the Governor and supported these pro- grams as a renewal of their Bill of Human Rights under American democracy. There has been a lot of catching up to do. In some areas, there still is. However, the foregoing report is graphic evidence of progress being made on all fronts. In many cases, the Virgin Islands have set the pace, with housing and educational projects which will be used as models for other communities on the U.S. mainland and in countries around the world. The resolve to move ahead can never be terminated so long as the will to progress is alive. In the Virgin Islands, for example, teacher- to-pupil ratios which once ran as high as 80 to 1 have been reduced to an average of 35 to 1. This is progress, but it is accepted that further improvement must be made. In housing, substandard areas are being renewed and families relocated in modern, low-rent public housing projects. However, it is recognized that this is a continuing process that always must be carried forward. Hospital and medical facilities have steadily been expanded, but present and projected needs call for herculean efforts in the future. The conclusion of this report is that the broad majority of the people understands and accepts the responsibility to move ahead toward social, economic, and cultural goals far beyond present achievements. Its further conclusion is that the Virgin Islands, by virtue of this mature acceptance of responsibility, is justified in its hopes to soon acquire the right to elect its own Governor and be represented by an elected delegate to the Congress. 114 U.S. GOVERNMENT PRINTING OFFICE ; 1964 O—721-848