USVI Public Records

Document text

STACK UMASS/AMHERST 312066 0344 2004 7 iiiiiiiiiiiiiiijjiiiiiii ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS TO THE SECRETARY OF THE INTERIOR (\# jv>t*^ OF THE GOVERNOR OF THE VIRGIN ISLANDS TO THE SECRETARY OF THE INTERIOR F I S C A L YEAR ENDED JUNE 30, 1942 STACK UNITED STATES DEPARTMENT OF THE INTERIOR Harold L. Ickes Secretary ^ TERRITORY OF THE VIRGIN ISLANDS Charles Harwood Governor UNITED STATES GOVERNMENT PRINTING OFFICE, WASHINGTON, D C. For sale by the Superintendent of 'Documents, Washington, D. C, Price 10 cents Contents Page Defense of the islands 1 Economic situation 2 Fiscal ; . . 4 Municipality of St. Thomas and St. John ... 4 Municipality of St. Croix ; , . 4 Municipal insurance fund, St. Thomas .... 5 The Federal appropriation 5 PWA projects 6 Defense public works appropriation 6 Survey of public works needs 6 Public Works Department 7 Health and sanitation 8 Virgin Islands Cooperative 9 Agricultural Experiment Station and Vocational School 10 Public welfare 11 Education 12 Police and prison department <.. 13 Public libraries 13 Public Utilities Commission 13 Legislative authorities 14 Home guards 15 Conclusion 15 Pigitized by the Internet Archive in 2009 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/annualreportofgo1942virg Annual Report of The Governor of the Virgin Islands CHARLES HARWOOD, Governor ' Charlotte Amalie, St. Thomas, September 1, 1942. The Honorable The Secretary of the Interior, Washington, D. C. Sir: Pursuant to Section 20 of the Organic.Act of the Virgin Islands of the United States, approved June 22, 1936, I have the honor to submit the following annual report of the transactions of the Govern- ment of the Virgin Islands for the fiscal year ended June 30, 1942. Defense o£ the Islands 'Y REASON of their strategic location not only as the most eastern outpost of the United States but also as the keystone of the arch protecting the Caribbean Sea approaches to the vital Panama Canal, it is most natural that the major concern of the Virgin Islands during the past year has been that of defense, both military and civilian. Such has been the scope of the defense plans and their fulfillment that perhaps in no other place under the American flag has the normal economic and social structure of community life been so radically affected. Months before our entry into the war, the administration recognized the gravity of the geographical position of the Virgin Islands. Steps were initiated immediately toward a concentrated program of civilian defense. There was a prompt organizing of Coun- cils of Defense by both island municipalities which were quick to move into active intensive programs. When war did come, the Virgin Islands defense program was well underway. In this connection it is gratifying to note the comments of James M. Landis, Director of the United States Office of Civilian Defense, on examination of a report of civilian defense activities in the islands 2 • Report of the Governor of the Virgin Islands, 1942 From these small dots of American soil in one of the world's most critical defense zones, we get a splendid example of civilian alertness to common danger and timely cooperation to meet it with adequate measures. We must put into practice in the nation much of what these islands, which have an area of only 133 square milea have already done. On the islands of St. Thomas and St. Croix there have been exten- sive mihtary preparations. What has been done in this connection and what the effects have been may not properly be recorded at this time. It can be said, however, that the entire population of the islands has responded in an excellent manner and that the islanders have demonstrated their patriotism and loyalty to the United States. At the direction of the administration, councils for defense were organized in both municipalities under the standard regulations of the United States Office of Civilian Defense. The executive direction of civilian defense efforts was vested in civilian defense coordinators who were charged with the duty and responsibility of instituting and execut- ing civilian defense measures on their own initiative or upon the recom- mendation of the councils for defense, and to establish a proper degree of collaboration with military authorities so as to insure complete coordination of all activities. In both islands air raid precautions were instituted with volunteer organizations of air raid wardens, fire watchers, fire fighters, demolition, rescue and repair squads, emergency food and shelter corps, ambulance and cante?n corps and first aid. Under the supervision of the Amer- ican Red Cross, the standard first aid course was given to hundreds of eligible volunteers. First aid centers, equipped by the American Red Cross in cooperation wdth local defense authorities, were organized and manned. Considerable funds were appropriated for civilian defense needs, medical and surgical equipment, ambulances, powerful warning sirens, fire fighting equipment, first aid supplies and equipment. Frequent practices were held during which all regular and volunteer units were called into active service. Fires were simulated, traffic arteries disrupted and simulated casualties treated systematically. The result has been most encouraging. All observers agree that the civilian population of the Virgin Islands is defense conscious to a re- markable degree. They are alert, cooperative and obedient. Economic Situation The war has emphasized the difference in economy between the islands of St. Thomas and St. Croix. The resources of St. Thomas are commercial and the increases in trade stimulated by defense activities raised the estimated municipal revenues of $249,000 to nearly $600,000, thus making it possible for the municipality of St. Thomas and St. John, for the first time since the purchase of the islands by the United Report of the Governor of the Virgin Islands, 19J^2 • 3 States in 1917, to be financed without Federal deficit appropriation. The economy of the municipahty of St. Croix is agricultural and it has been adversely affected during the last 5 years by repeated droughts. During the year, the Municipal Council of St. Croix with the approval of the present administration repealed the export tax of $6 a ton on sugar, which tax was among the burdens that destroyed the private sugar industries of St. Croix and added to the losses of the Virgin Islands Co. which was established by the government solely to provide employment and a market for small farmers. Existing nowhere else under the United States flag, the repeal of this tax had been urged for many years. About the time of the tax repeal, the present administration succeeded in having Congress apply to the Virgin Islands the Sugar Act of 1937. Heretofore St. Croix had been the only sugar producing area of the United States that did not share in the benefit payments provided by that act, in spite of the fact that St. Croix's sugar was required to pay tMe processing tax from which such benefit payments were made to all other aieas. Employment, which is the first known measure of economic health, was at its peak on the island of St. Thomas where extensive military preparations gave remunerative employment to every employable male. In St. Croix, after months of much unemployment, the Work Projects Administration and the National Youth Administration gave employment to nearly every eligible male. By the end of June, however, the WPA employment quota was severely reduced and the National Youth Administration and the Civilian Conservation Corps were abandoned. The serious effects of this, as well as the gradual reduction of employment in the municipality of St. Thomas by reason of the tapering off of military construction, will be increasingly felt in the new fiscal year. Although the employment situation was most satisfactory, it cannot be said that the economic health of the Virgin Islands is sound, despite its fair superficial appearance, because real economic health depends upon real wage and stability of employment. In the municipality of St. Croix the new abattoir built by the Federal Government was operated as a WPA demonstration and training project. Many cattle, sheep and hogs were slaughtered for export to St. Thomas and Puerto Rico. In St. Thomas the modern cold storage market built by the Federal Government was substan- tially completed. Facilities have been provided for the marketing and cold storage of all locally produced foodstuffs, fish, poultry, meats, vegetables, eggs and dairy products. The processing, selling and cold-storaging of meats have been given particular consideration in order to serve as a companion project to the abattoir in St. Croix. It is expected that the operation of this market together with the opera- tion of the abattoir in St. Croix will be within the framework of the Virgin Islands Co. These two units when organized for operation 4 • Report of the Governor of the Virgin Islands, 1942 will be an important factor in meeting the demand for foodstuffs created by defense activities and the serious shipping situation. Fiscal The finances of the municipal government in St. Thomas were in excellent condition. For the fii'st time since 1917, the municipality of St. Thomas and St. John was financed without a Federal deficit appropriation. The Federal deficit appropriation of $15,000, which was made by Congress, was not used. In St. Croix the fiscal affairs of the municipality, after being at a very low ebb for many years, took a slightly more favorable turn. For the first time in 4 years it was not necessary to borrow money to meet an operating deficit over and above the Federal deficit appropriation. However, an enthusi- astic reception of this golden era must be tempered by the poor potentialities of the forthcoming fiscal year. Municipality of St. Thomas and St. John The actual revenues of the municipality of St. Thomas and St. Jolin were $599,116.94 as compared with $359,157.40 in the preceding year, which is an increase of 66.8 percent. Income tax collections were $316,067.67 as compared with $138,552.45, an increase of 128.1 percent. It is interesting to note that income tax collections in 1940 were $99,236.21 while in 1936 the revenue from this source was $18,237.08. Trade taxes yielded $46,938.18 as compared with $27,061.37 in 1941, an advance of 73.4 percent. Customs receipts were $59,200 as com- pared with $42,464.89 in 1941, an increase of 39.4 percent. Pilotage fees were $42,047.39 as compared with $27,441.96 in 1941, an increase of 53.2 percent. The budget for the municipality of St. Thomas and St. John carried total appropriations of $588,000 of which $573,000 was estimated to be derived from local revenues and $15,000 from the Federal deficit appropriation. Because actual local revenues amounted to $599,000, there was no deficit and the Federal deficit appropriation was not used. Municipality of St. Croix The revenues of the muncipality of St. Croix amounted to $196,485.72 compared with $139,111.07 in the preceding year, an increase of 41.2 percent. Income tax collections were $30,394.50 as compared with $11,149.39 in 1941, an advance of 172.6 percent. The striking contrast between the economy of the island of St. Thomas and the economy of the island of St. Croix is demonstrated by the great difference in income tax collections. Total income tax collec- tions in St. Thomas in 1942 were $316,067.67 as compared with $30,394.50 in St. Croix. Re-port of the Governor of the Virgin Islands, 1942 • 5 Tlie budget for the niimicipality of St. Croix carried total appropria- tions of $301,845, of which local revenues were estimated to supply $196,845 and the Federal deficit appropriation $105,000. An addi- tional Federal deficit appropriation of $10,000 made late in the fiscal year was not used because of an unusual increase in income tax collec- tions. Because of this slight improvement in the fiscal situation of St. Croix, some small reduction is expected to be made in the munici- pality's indebtedness of $90,000. It was possible to restore half of the drastic salary cuts made tlie previous year and next year's budget makes full restoration. Municipal Insurance Fund, St. Thomas Because commercial insurance companies failed or refused to insure local employers, under a most reasonable law enacted by the Municipal Council of St. Thomas and St. John, a municipal insurance fund for workmen's compensation was established as of July 1, 1941. After careful study of premium rates in effect in Puerto Rico and in several States, premium schedules were promulgated. Gross premiums of $24,544.36 were collected. A loan of $10,000 w^as made for working capital. By Jime 30, 1942, $4,000 had been repaid, leaving the re- mainder as a cash working balance. The Federal Appropriation The Federal appropriations for the Government of the Virgin Islands, fiscal year 1942, were: Central administration $151, 075 Agricultural experiment station and vocational school 45, 650 Deficit, St. Thomas i 15, 000 Deficit, St. Croix 115,000 Total 326, 725 Comparable 1941 appropriations were: Central administration $142, 255. 00 Agricultural experiment station and vocational school 41, 150. 00 Deficit, St. Thomas 44, 933. 78 Deficit, St. Croix____ 103,500. 00 Total _:_ 331, 838. 78 On July 1, 1941, WPA projects were transferred from a Federal agency basis formerly operated under the Government of the Virgin Islands, to a state basis operated under tlie direct supervision of the Work Projects Administration. Likewise, the United States Housing projects were transferred to the management of the Virgin Islands Co. Working funds totalling $12,500 were established by the Army 491980—42 2 6 • Report of the Governor of the Virgin Islands, 194^ for construction by the Virgin Islands Government of certain niilitaiy facilities. A Federal Fish and Wildlife Service project for deer restoration in St. Croix was set up in amount of $10,000. PWA Projects During the year, Federal Project 18, construction of an abattoir at St. Croix, was completed at a cost of $110,000. Federal Project 17, construction of a cold storage market and an additional building for the cooperatives in St. Thomas, was substantially completed at a cost of $205,000. Defense Public Works Appropriation The efforts of the administration were successful in obtaining a special appropriation of $125,000 from the Federal Works Agency, Defense Public Works Administration, for purchase of fire-protection equipment, street cleaning and garbage disposal equipment, and night soil removal service equipment, for the islands of St. Thomas and St. Croix. Of this appropriation $64,000 is obligated for the purchase of essential equipment for the municipality of St. Croix, while $61,000 will be expended in the mimicipality of St. Thomas and St. John. Equipment sought to be purchased imder this appropriation includes fire-fighting units, heavy duty water tank trucks, foam generators, portable pumping units, garbage collection and disposal units, mechan- ical street sweepers, combination loader, excavator, and grader, pick- up trucks, heavy duty stainless steel-bodied trucks, and sewage pumps. Priority and transportation difficulties have delayed the purchase and delivery of this equipment but, by the end of the fiscal year, contracts had been awarded or were in process of being awarded for the major portion. Collections for Deposit in the United States Treasury A total of $7,565.15 was collected from homesteaders under land and house purchase contracts, interest and principal on loans and miscellaneous collections. Toward the end of the fiscal year deposits totalling $6,898.55 were made on account of sales of civilian reserve foodstuffs made available through the Department of Interior. Survey of Public Works Needs Under the authority of an appropriation contained in the second deficiency appropriation act of 1941, approved July 3, 1941, a com- prehensive survey of the public works needs of the Virgin Islands was made by the Federal Works Agency at the request of the Secretary Report of the Governor of the Virgin Islands, 194^ • 7 of the Interior. The appropriation of $5,000 made available by Congress, being insufficient to complete the survey, the facilities and professional personnel of the Federal Works Agency were utilized. The Honorable John M. Carmody, then Administrator, Federal Works Agency, and several members of his staff made a preliminary investigation of conditions prevailing in the Virgin Islands. Subse- quently, additional engineers of the Federal Works Agency spent con- siderable time in the Virgin Islands rounding out the various phases involved in a comprehensive program. Their report on the public works needs of the Virgin Islands, which was transmitted to the Congress late in the fiscal year by the Secretary of the Interior, states that the most outstanding need of the islands is for hospitals and, in no uncertain terms, condemns the present facilities as dilapidated and inadequate. Next in the order of priority the report includes recommendations for additions and replacements to the present salt water fire protection system in St. Thomas and St. Croix and the enlargement of facilities for potable water supplies. Sanitary conditions in the Virgin Islands, despite improvements made during the American administration of the islands, are still extremely unsatisfactory due to such primitive conditions as night soil removal services, open gutters, garbage disposal into the bay im- mediately offshore with resultant pollution, lack of sufficient water for drinking purposes and lack of adequate housing. Projects totaling $5,759,520 for the municipality of St. Thomas and St. John and $3,616,900 for the municipality of St. Croix were recom- mended for eventual consideration but priority consideration is being requested for the following: (a) Construction of modern hospital at St. Thomas, $495,000; (b) Construction of modern hospital at St. Croix, $468,000; (c) Construction of hospital and other emergency facilities for St. John, $40,000; (d) Additions and alterations to salt water fire protection system in St. Thomas, $214,000; (e) Additions and alterations to the salt water fire protection system in St. Croix, $92,300; (f) Construction of water catchment areas and storage reservoirs in St. Thomas, $447,400;] (g) Construction of water catchment areas and storage reservoirs in St. Croix, $467,400; (h) Fire protection equipment, St. Thomas, $34,900; and (i) Fire protection equipment, St. Croix, $31,500. Public Works Department Additional duties and acute responsibilities vital to civilian defense operations considerably increased the regular work of the Public 8 • Report of the Governor of the Virgin Islands, 1942 Works Departments, including maintenance of public water supplies, sewerage systems, public buildings and grounds, municipal highway improvements, building inspection, the municipal telephone systems, and the fire departments. Expanded phases of public works such as emergency communication, fire fighting, sanitation, and emergency construction and repair were initiated at an unusual rate to take care of the increased demands. During the year jurisdiction of the WPA works program was trans- ferred from the supervision of the Public Works Department in both municipalities to the jurisdiction of a new WPA District Office. Construction of National defense highways has been carried on by the WPA District Office under the WPA Administrator for Puerto Rico and the Virgin Islands. In the municipality of St. Thomas and St. John plans and specifi- cations were prepared and a contract was awarded for the construction of a juvenile school in St. John. The completion of this unit will fill a long-felt need. Unfortunately, due to delay in obtaining materials, the structure, expected to be completed by September 1942, was only about 25 percent completed on June 30. Funds have been appropri- ated by the municipal council for cisterns and wells at public schools and other areas in the country districts of St. Thomas. Some of these have been completed and others are in process of construction. All of them are useful projects designed to fill a long-felt need for additional water supplies in these districts. The main open gutters in Charlotte Amalie, Christiansted and Frederiksted were flushed daily with salt water upon direct orders of the Governor in order to improve sanitary conditions. Previously these open sewers had been flushed only once or twice a week. They constitute an acutely imminent epidemic source. This necessary additional flushing has resulted in considerably increased cost to the municipalities. In St. Croix, reconstruction of the Kings Hill Home was completed under the asupices of the Public Buildings Administration. Health and Sanitation The Commissioner of Health reports that the outstanding feature of the year in St. Thomas has been the outbreak of a vast epidemic of acute infectious jaundice and its evident connection with the mass yellow fever vaccination of the population of St. Thomas. Under the auspices of the Council for Defense, yellow fever vaccine was ob- tained without charge from the Rockefeller Foundation and adminis- tered voluntarily to over 10,000 persons. The epidemic of jaundice which followed this mass vaccination was extensive and severe. Careful and exhaustive studies and investigations are being made by United States Public Health Service officers. Report of the Governor of the Virgin Islands, 1942 - 9 In the municipality of St. Croix, while the general health of the population has been gqod, there was an epidemic of dengue fever which was also prevalent in St. Thomas to a degree. Medical officers in the Virgin Islands have done a great amount of useful work with a small staff under extremely difficult conditions. Hospital wards are shabby, hot, and gloomy. There are no separate wards for tubercular persons nor for venereal or other infectious cases. The toilets and bathrooms are miserable. There is lack of running water in the wards and the children's and obstetrical wards are housed in termite eaten and rotten wooden buildings. In St. Croix a children's ward was completed and occupied at each hospital, but the main hospital buildings are in poor condition. All medical institutions are in dire need of rehabilitation. The Kings Hill Home was rehabilitated and completed by the Public Buildings Administration and was a welcome addition to the medical institutions. Unfortunately, an adequate water supply was not provided and the institution is in need of beds, mattresses, bedding, and other equipment, relatively few of which have arrived. The prospect of new modern hospital buildings and equipment as a result of the public works survey of the islands gives hope of relief to a serious situation which has long been a concern in the administration of the Virgin Islands. The sanitary sewer system in both islands is greatly in need of im- provement and expansion. There are only 131 sewer connections in St. Thomas to the existing salt water system, which is about 6 percent of the occupied dwellings. In Christiansted, only 50 out of 1,020 and in Frederiksted only 14 of 605 houses are connected to the sanitary system. The majority of the homes in all towns have pit or surface privies. These primitive facilities are a constant menace to the health of the people of the Virgin Islands. Virgin Islands Cooperative The full impact of the war was felt by the Virgin Islands Coopera- tive. Complete loss of tourist trade, shipping difficulties affecting export trade, difficulties of obtaining raw materials and its greatly increased cost have combined to disturb and hamper the operations of the cooperative to such an extent as to cause serious financial loss. For the second time in 9 years, volume of sales has receded but, un- fortunately, the reduction at this time has been considerable. Total sales dropped from $55,357.77 in 1941 to $32,798.66 in 1942, represent- ing a reduction of more than 40 percent. However, the sound potentialities of the cooperative were indicated in the increase of the mail-order sales and local sales which increased from $9,918.58 in 10 • Report of the Governor of the Virgin Islands, 1942 1941 to $13,167.41 in 1942 despite difficulties of parcel-post service. The export of silk palm braid has continued but the trade in this product has fallen off considerably because of competition in the United States by braids manufactured in Haiti, Mexico, and Central America. The cooperative received no financial assistance whatever during the year. It has had to carry its own burden during the worst year with the inevitable result of serious depletion of funds. Because of these unfortunate conditions, it was not possible to pay any bonuses to the members. Agricultural Experiment Station and Vocational School f The Agricultural Experiment Station and Vocational School, located on St. Croix with a substation at St. Thomas, underwent an almost complete reorganization in personnel and objectives during the year. Sugarcane continues to be the main cash crop in St. Croix. The cane for the 1942 harvest was poor. Labor troubles at the beginning of the crop season caused a delay of over 1 month before the crop was actually started. The livestock industry of St. Croix has been very hard hit because of the difficulties involved in making sliipments of livestock to Puerto Rico. This has been partly alleviated by the construction of a modern abattoir by the Federal Government. Efforts were made to obtain purebred beef type bulls from continental United States to improve the local breeds, but difficulties involved in purchase and transportation have made it almost impossible to obtain them. Greater efforts were made to encourage the planting of more locally grown staple foods but due to the prolonged drought much success has not been manifested.. The past year has been one of subnormal rainfall resulting in smaller yields, while market conditions have been unsettled and prices irregular. A considerable number of home- steaders, land renters and farm laborers were able to take advantage of employment on Government emergency projects which benefited them but which affected adversely the agricultural situation. Exten- sion activities covered help to farmers, advice in crop production, animal husbandry, home beautifying, and simple farm construction. In March 1942 there was inaugurated in connection with the National Defense movement a WPA project known as the "food production program." In cooperation with the Farm Security Ad- ministration, island-wide work is under way in pasture improvement, preparation of acreage for subsistence crops and maintenance of seed- beds. About 250 acres are to be planted in vegetables with an increase to 650 acres for fall planting. The funds for the project arise tlu'ough a special WPA allotment of $275,000. Report of the Governor of the Virgin Islands, 1942 • 11 In St. Thomas the agricultural substation has likewise undergone a change in policy. Efforts have been concentrated on the encourage- ment of food production. A new service of seed and plant-slip distri- bution was instituted. Seeds ordered from civilian defense appropri- ations were distributed to all interested farmers. Construction of bench terraces for soil conservation was carried out. An educational project was set up to encourage the cultivation of these terraces for soil conservation and the retention of moisture. The National Youth Administration, whose boys' resident project at the station in St. Croix proved unsatisfactory in the previous year, reorganized that project and with the close cooperation of the station staff conducted a satisfactory and promising vocational school. It is a matter of deep regret that this project had to be closed on June 30, 1942. The 40 boys who were in residence, under strict and efficient supervision, had applied themselves wholeheartedly to the work and had made encouraging progress. Public Welfare Outstanding changes and expansion in the activities of the Depart- ment of Public Welfare in the municipality of St. Thomas and St. John marked the year as the most important in the history of welfare and social improvements. The municipal council implemented im- portant legislation to provide workmen's compensation, adopted a wages and hours act, prescribing minimum wages and maximum hours, patterned closely after the United States Fair Standards Labor Act; and created a division of public playgrounds to provide super- vised and organized recreational activities. During the year the work formerly performed by the Department of Public Welfare in directing WPA employment and women's projects was transferred to the newly established WPA District Office but its place was more than filled by new municipal undertakings. The previous picture of a department, largely supported through Federal emergency undertakings, was changed to that of an active depart- ment assuming the direction of a municipal program of permanent character and of expanding importance in island aft'airs. In St. Croix, the Department of Public Welfare extended its social service work. Unfortunately, the municipal government of St. Croix has not yet recognized the need for a fully staffed and active welfare department, and appropriations for its support have been negligible. The food stamp plan of the Agricultural Marketing Administration continued to be highly successful in St. Croix. During the year, $51,225 was expended by the United States Government by the issuance of free blue stamps to unemployables and orange stamps to the value of $52,583 were purchased by low-income workers. In St. Thomas the food stamp plan has not been as successful as in St. 12 • Report of the Governor of the Virgin Islands, 1942 Croix. In this island, free blue stamps to the value of $18,988 were distributed to unemployables and $8,627 in orange stamps were pur- chased by low-income workers. The housing shortage in St. Thomas accentuated by the increased population due to defense activities continued to be acute. Efforts to obtain Federal funds for the construction of additional low-cost hous- ing units have failed. The housing shortage has added to the deplor- able housing conditions already existing among low-income groups. This is a problem requiring urgent attention. Education The Department of Education has made marked progress during the year. Under a new school law the public now has greater control in formulating policies and in the conduct of the public schools through active boards of education with extensive powers. In the municipality of St. Thomas and St. John, the council has made commendable strides in the enactment of measures for extension and improvement of educational institutions and services. The adoption of a standard to govern teachers' salaries and to provide for pro- motions on the basis of training and continued service, made effective with the beginning of the fiscal year 1942, is one of the most con- structive measures undertaken since the establishment of compulsory education in the Virgin Islands. Another outstanding event was the establishment of an adult educational program wholly supported by the municipalit}^ Of special significance because of its potential benefits to the com- munity is the persistent and determined efforts toward obtaining more suitable facilities for a high school and to include and improve a strong program of vocational education. By the end of the fiscal year, funds had been appropriated and negotiations concluded for the purchase of a suitable site for a new high school in St. Thomas. This was financed entirely by municipal funds. Reconstruction of build- ings on this site will be effected during the new fiscal year provided building materials can be secured. The school lunch program was maintained throughout the year financed in part by grants of municipal funds and largely by the WPA. Commodities received from the Agricultural Marketing Administration proved to be immensely beneficial. A nursery school program was continued by the WPA with sponsorship funds furnished by the municipalities. In the municipality of St. Croix there is need for an eight-grade high school in the center of the island and a new building for the Christiansted High School. Nevertheless, an improvement in instruc- tion is evidenced by better passing grades particularly in the elemen- tary grades. Report of the Governor of the Virgin Islands, 19^2 • 13 Under Public Laws 812 and 146 of the Uijited States, funds were allotted to the Virgin Islands for education and training of NYA project workers. Courses were given in home economics including the selection, care and construction of clothing, home furnishing, home management, planning, preparation and serving of foods, home nursing, first aid, and health and personal grooming. This program -unfortunately was closed on June 30, 1942, by reason of withdrawal of Federal contributions. Police ar\d Prison Department The police force of St. Thomas was considerably strengthened during the year by increased personnel and additional equipment pro- vided from generous municipal appropriations. There were 1,079 arrests in St. Thomas as compared with 1,042 during the last fiscal year. Intensive civilian defense measures in both islands including -frequent black-outs have greatly increased the work and responsibi- lities of the police officers. Automobile and traffic difficulties have increased as a result of a large increase in vehicles. A total of 715 automotive vehicles were registered in St. Thomas during the year as compared with 654 in the preceding year and 386 four years ago. In the maintaining of order during the war emergency period there has been close cooperation between the military and civil authorities. The police force in the municipality of St. Croix is badly in need of new equipment. For several successive years funds have not been adequate to maintain respectability in uniforms and adequate arms and equipment. By the end of the fiscal year appropriations had been made for partial alleviation of this situation, but the receipt of necessary equipment has been delayed due to priorities and shipping. Public Libraries The supervising librarian reports that the year has been subnormal as far as circulation and projects are concerned. Transportation and mail difficulties due to the war have delayed book and magazine deliveries and orders. Recataloging of the adult department in St. Thomas was started. Work with children has progressed, with story- hour programs being conducted for pre-school and in-school groups. Public Utilities Commission In February 1942, after exhaustive studies and hearings the Public Utilities Commission of St. Thomas and St. John entered an order to be effective from April 15, 1942, promulgating reduced landing and loading charges at Charlotte Amalie. Prior to the effective date of 14 • Report of the Governor of the Virgin Islands, 1942 the new tariff, the United States condemned a one-year leasehold on the docks of the West Indian Co., Ltd. at St. Thomas and entrusted their operation and management to the Virgin Islands Co. This company, acting as agent for the United States Government, did not adhere to the rates which had been fixed by the Commission. Proper administrative steps have been instituted to determine the respon- sibility for adherence by the Virgin Islands Co. to the rates as deter- mined by the Commission. In March 1942, the Commission also moved to reduce electric hght and power rates. Before the date of the proposed hearing on these rates, the United States acquired title by condemnation to the electric light and power station. The hearing was not held. Electric light and power rates have not yet been reduced. Federal Ownership of Public Utilities During the year the United States Government acquired a one- year leasehold on the docks of The West Indian Co., Ltd. at St. Thomas and acquired litle in fee simple to its electric light and power station. These utilities, constituting the principal commercial activi- ties of the islands of St. Thomas and St. John, are now being operated under United States Government ownership, in lieu of former private ownership and managament. Because the activities of The West Indian Co., Ltd. furnished a major source of revenue in income and other taxes to the municipality of St. Thomas and St. John, efforts have been made by the administra- tion to obtain the authority of the Federal Works Agency for the payment of these taxes to the municipality by the United States Government. Government ownership of the electric light and power station had long been sought. With proper and sound management the result should be beneficial to the people of the islands. However, unless satisfactory arrangements can be made for payment of taxes to the municipahty of St. Thomas and St. John, the economic structure of this municipality will be seriously affected. Legislative Authorities The Municipal Council of St. Thomas and St. John continued actively to sponsor social legislation of a most important character. Following up its earlier record in the enactment of a workmen's compensation act, the Municipal Council this year enacted and made provision for the vigorous enforcement of a minimum wage and maxi- mum hour law. This Municipal Council also established a municipal insurance fund for workmen's compensation, a laW to" control prices of foodstuffs, a law establishing a homestead commission and created Report of the Governor of the Virgin Islands, 1942 • 15 a new bureau of agriculture. From greatly increased revenues inci- dent to income tax collections, generous appropriations were made for maintenance and operation of all departments of the municipal governments of St. Thomas and St. John, for civilian defense purposes and for many important municipal projects. The St. Thomas home guard was created by legislation and funds provided for its equipment and maintenance. The Municipal Council of St. Croix took an im- portant forward step by repealing the export tax of $6 per ton on sugar produced in St. Croix. Both councils cooperated in the enact- ment of legislation for civilian defense and protective emergency measures. The legislative assembly of the Virgin Islands, consisting of the two municipal councils in joint session, held one session. The subjects which may properly be dealt with by this assembly are those on which legislation will apply with equal force to both municipalities. The growing divergency in economy between the islands has reduced the number and importance of such matters. Home Guards In both municipalities, home guards with voluntary membership were authorized aad created by local legislation. In St. Thomas excellent training was given by officers and noncommissioned officers assigned by the United States Marine Corps. Efforts have been and are being made by the administration to secure a proper status for the Home Guards so that they may be eligible for the issuance of arms and equipment by the War Department. Conclusion There continues to be immediate and imperative need for large- scale appropriations of Federal funds for reconstruction and equip- ment of hospitals, medical institutions, water supply facilities, fire protection services and equipment, and modern sewage and garbage disposal systems. These needs have been presented to Congress in the report of the Public Works Survey heretofore referred to. Be- cause of the existing emergency, det-ermined and persistent efi^orts must be made to provide more and better small farm^ers and better and greater use of land. It is recommended that efforts continue to be made to obtain the extension of Federal aid for vocational education under the George- Dean and the Smith-Hughes Acts to permit the establishment of a sound and practical program of vocational education. It is too early to state whether the financial afl^airs of the munici- pality of St. Thom^as and St. John will be adversely affected by the change of ownership of the docks in St. Thomas. It is hoped that 16 • Report of the Governor of the Virgin Isla7ids, 194^ negotiations for payment of all taxes to the municipal govermnent will be successful. In St. Croix, the island's dependence on Federal aid continues and there is no hope of any material improvement. In all islands, efforts and appropriations should be concentrated upon, but not restricted to, the distribution of land, and upon its development for the subsistence and secui'ity of those who can be properly settled upon it. Internal revenue taxes collected in the United States on products of the Virgin Islands shipped to the United States should be returned to the Government of the Virgin Islands of the United States. There is the very strong possibility that the return of these taxes would elimi- nate the need for further annual deficit contributions by the Federal Government. Congressional action in the matter of the return of these taxes has been sought for many years. The enactment of this .legislation, which is strongly recommended, would be a major con- tribution to a sound economic future for the islands. The Selective Service Act of the United States has not been applied to the Virgin Islands. Late in the fiscal year information \\as ob- tained that the law is applicable to the Virgin Islands but that machin- ery has not been provided for its enforcement. This act should be put into effect immediately and the people of the Virgin Islands given the opportunity and privilege to serve in the Nation's armed forces as all other American citizens. Respectfully submitted. Charles Harwood, Governor of the Virgin Islands of the United States. o