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:-^^.^i^m 1967 ANNUAL REPORT Virgin Islands to the Secretary of the Interior Digitized by the Internet Archive in 2009 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/annualreportofgo1967virg 1967 ANNUAL REPORT X5S-, /2^// .'^^7 Virgin islands to the Secretary f of the I Interior 1 For the Fiscal Year Ended June 30 For sale by the Superintendent of Docunnents, U.S. Government Printing Office Washington, D.C. 20402 - Price 45 cents STACK ^ 19 1968 Contents General Information 1 Highlights of the Year 8 Legislation 17 Virgin Islands Water and Power Authority 22 Virgin Islands Airport and Industrial Resources Agency 25 Public Utilities Commission 28 Bond Issue and Interim Financing 30 Control of Processing of Woolen Yard Goods 32 Control of Manufacture of Watches 36 Office of Public Relations and Information 38 Office of the Government Secretary 40 Department of Education 53 College of the Virgin Islands 62 Department of Health 64 Department of Social Welfare 75 Department of Commerce 85 Department of Agriculture 89 Department of Labor 92 Virgin Islands Employment Security Agency 97 Department of Public Works 99 Department of Finance 101 Office of the Director of the Budget 114 Department of Housing and Community Renewal 124 Department of Property and Procurement 130 Department of Law 133 Department of Public Safety 134 The Municipal Court of the Virgin Islands 143 Office of Probation and Parole 146 Virgin Islands Planning Board 147 Division of Personnel 150 Selective Service 152 Conclusion 155 III General Information History Christopher Columbus, sailing to the New World on his second voyage in 1493, dropped anchor on the north side of St. Croix and the island's first "visitor" took in the unspoiled tropical beauty and rolling hills of a Caribbean paradise. The spot is known today as Salt River Bay, one of the many pic- turesque inlets in the U.S. Virgin Islands. The Great Navigator named his "discovery" Santa Cruz, meaning "Is- land of the Holy Cross" and sent a landing party ashore to replenish the ship's dwindling water supply. Instead of the warm welcome visitors receive today, Columbus' men were repulsed by the fierce Carib Indians. No further attempts were made to land and colon- ize until 1555 when the hostile Caribs were driven from St. Croix by the soldiers of King Charles V of Spain. Columbus was so impressed with the beauty of the island chain, he christ- ened them "Las Virgenes" in honor of St. Ursula and her 11,000 martyred virgins. The value of these and the other islands of the West Indies soon became apparent to the crowned heads of Europe and colonization was encour- aged. England, France, Holland, and Spain vied for control during the 1 7th century with sugar as the principal at- traction. So important was trade with the West Indies that Great Britain, negotiating with France to end the Seven Years' War in 1763, seriously considered keeping the Island of Guadeloupe instead of Canada. Denmark played the most important role in the development of the U.S. Virgin Islands. Entering the picture in 1671, she chartered the West India Co. and began serious colonization of St. Thomas and St. John. St. Croix was purchased from France in 1733. Except for a brief period of Brtish occupation during the Napoleonic Wars, the Danes ruled these islands until 1917. Thus began a golden age of com- merce and peaceful development for the Virgin Islands, blessed by the Dan- ish policy of neutrality and liberal tra- ding laws. Ships of all the nations of Europe, carried to the fine harbor of Charlotte Amalie on St. Thomas by the constant easterly trade winds, gathered there and a booming trade with the New England States of the new Ameri- can nation supported the burgeoning island economy. Sugar was king and its influence was felt everywhere. Throughout the Is- lands of St. Thomas, St. Croix, and St. John, massive stone windmills were erected for grinding cane. Many of these towers remain reminders of a by- gone era and evidence of a once flour- ishing plantation life. With wealth came the unfortunate byproducts, greed, and avarice. The Caribbean became the hunting ground of such notorious pirates as Captain Kidd and Edward Teach, the notorious Blackbeard. It is said the Virgin Islands were spared the depredations of these buccaneers by paying "protection" in 1 the form of sanctuary and commercial privileges. Sugar brought great prosperity to the islands and the plantation owners. It also brought misery and privation to the thousands of slaves who were in- troduced from Africa in the 1680's to work the canefields. Their sufTering finally erupted into revolt. On St. John, after a bloodly mutiny, the slaves held the islands for 6 months until the French forces arrived from Martinique to help the Danish masters regain their land. Legend has it that the last sur- vivors of that ill-fated uprising com- mitted mass suicide by plunging over a cliff or shooting themselves rather than face a return to servitude. Slavery was finally abolished by an enlightened Denmark in 1848, 15 years prior to the publication of the U.S. Emancipation Proclamation. From then on, sugar decreased in commercial importance in the Virgin Islands, out- done by the more favorable conditions for cane operations in Cuba and elsewhere. The United States took its first in- terested look at the islands during the American Civil War. However, a pur- chase agreement fell through when the Senate refused to ratify the negotia- tions in 1870. Bargaining continued throughout the century but it wasn't until World War I that the United States moved decisively. Fearing a Ger- man seizure that would give U-boats a base in the Caribbean, the United States bought the Danish Virgins in 1917 for $25,000,000. The U.S. Navy was delegated to administer the islands and assumed responsibility on March 3 1 of that year. Geography The U.S. Virgin Islands lie some 1,434 nautical miles southeast of New York City; 991 miles from Miami, Fla. ; and 40 miles east of Puerto Rico, 75 air-miles from San Juan. The islands are a part of the An- tilles which form the dividing line be- tween the Caribbean Sea and the At- lantic Ocean. They are located directly in the path of the trade winds, so com- mercially important in the days of sail, at the eastern end of the Greater An- tilles and the northern end of the Lesser Antilles. The U.S. Virgins consist of some 50 islands and cays of volcanic origin. Their neighbors, the British Virgins, are made up of another 30 similar is- lands and cays. Only three islands in the U.S. group are of any population or commercial significance. The largest of these, St. Croix, with 84 square miles is, for the most part, flat, and suited for agricul- tural use. Forty miles due north, St. Thomas with 28 square miles, offers dramatic rugged mountains that rise sharply from the sea to a height of up to 1,500 feet. A few miles east of St. Thomas, the Island of St. John with 20 square miles, offers similar land and sea scapes. Both islands rise from the same submarine plateau. Between these two islands and St. Croix, the Carib- bean Sea deepens to a 15,000-foot trench. Because of the steep sloping moun- tainsides, very little land on St. John or St. Thomas is tillable. St. Croix, however, is well suited agriculturally, and priority is being given to the ad- vancement and diversification of this industry. Until recently, sugarcane was the only important crop. However, it has been a marginal one and has cost the local government large sums of money to cover milling losses. Conse- quently, sugar has been phased out and terminated as a commercial crop. Over 4,000 acres of prime land will be utilized under a comprehensive plan now being developed. This will include broad research into feasible food crops, middle-range programs for agricultural development and a long- range plan to preserve the agricultural character and natural beauty, of the Island. St. Croix has two improved harbors. The one at Christiansted, considered to be one of the most picturesque un- der the U.S. flag, attracts pleasure yachts and medium-sized commercial craft from other West Indian islands. The recently developed deep water harbor at Frederiksted on the east end of St. Croix accommodates ocean liners and is responsible for increased cruise ship traffic to the island. In addition, a full-size airport with direct jet flights to the mainland has further enhanced the growing tourist trade. St. Thomas, whose agricultural re- sources are limited by its rugged land- scape, more than makes up for this deficiency with its excellent natural harbor. It is one of the ranking ports of call for cruise ships, and the expan- sion of its airport facilities has now allowed for jet travel to the island. St. John's main attraction is its un- spoiled beauty, guaranteed to remain so since most of the island is taken up by the Virgin Islands National Park. The incomparable beaches, breathtak- ing mountain views, and lush vegeta- tion bring an increasing number of visitors each year, who explore the is- land's charm by jeep or boat. The U.S. Virgins enjoy a near per- fect climate. Temperatures stay within the 70° to 90° range with an average 78°. The balmy trade winds provide natural air conditioning. Humidity is comfortably low with rainfall averag- ing about 45 inches a year. There is an abundant variety of tropical flora ranging from the well- known hibiscus, bougainvillea, olean- der, poinsettia, and wild orchid, to the less common African tulip, frangi pani, and lignum vitae. Many other flower- ing trees and shrubs add to the island's color and fragrance. Coconut and royal palms are everywhere while the quieter beaches are lined with man- grove, mahoe, and seagrape trees. Exotic fruits from native trees grace the tables of Virgin islanders, the more popular being mango, soursop, lime, guava, sugar apple, avocado, papaya, genep, and mammee apple. Though there is no large commercial fishing industry, the natives, through their individual efforts, make fish an important part of their daily diet. The Virgin Island waters, particularly in the game fishing sense, are rapidly be- coming recognized as a prime fishing area. Blue marlin, wahoo, tuna, tarpon, kingfish, and bonefish are taken the year round while white marlin and sailfish are caught during most months. The Virgin Islands now holds the world record for the largest blue mar- lin, officially recorded at 814 pounds, and caught during the summer of 1964. Smaller fish also abound. They in- clude grouper, "old wife," yellow tail, and angelfish. The islands provide stone, sand, and gravel as building materials but there are no minerals of commercial signifi- cance. Government The Virgin Islands have been gov- erned by many nations. The flags of Spain, France, Holland, England, Den- mark, and the United States have flown over all three islands and St. Croix, for a brief time, was adminis- tered by the Knights of Malta. When the United States purchased the Virgin Islands in 1917, the transi- tion was accomplished smoothly by re- taining the Danish legal code as the basic law. The Navy was given respon- sibility for administering the islands until 1931. Military, civil, and judicial power were vested in the Naval Gov- ernor, who was appointed by the Presi- dent of the United States. On February 27, 1931, an Executive order from the White House trans- ferred jurisdiction from the Navy to the Department of the Interior, and the first civilian governor was appointed by the President. A major change in the method of governing the islands occurred with the passage of the Revised Organic Act of 1954, by which the Congress author- ized distinct executive, legislative, and judicial branches and provided for a substantial degree of self-government. Changes in the act are now under con- sideration which, if granted, would give the Virgin Islands an even greater degree of home rule. Presently, the Governor is appointed by the President of the United States with the advice and consent of the Senate. Working with the Department of the Interior and its Secretary, the Governor is responsible for execution of local laws, administration of all ac- tivities of the executive branch, ap- pointment of department heads and other employees. He reports annually to the legislature on the state of the territory and recommends new legis- lation to carry out the various pro- grams of local government. The government secretary is also appointed by the President. In the ab- sence of the Governor, the government secretary serves as acting Governor. He has administrative responsibility for banking and insurance laws and the li- censing and assessment of real prop- erty. The unicameral legislature is elected for 2-year terms. There are 15 senators, five from St. Croix, five from St. Thomas, one from St. John, and four elected at large by Virgin Island voters of all the islands. Each bill passed must be signed by the Governor before it becomes law. A two-thirds vote of the legislature is necessary to override the Governor's veto. In this event, the Governor must approve it or submit it to the President for final action. The judge of the district court of the Virgin Islands and the U.S. district attorney are appointed by the President of the United States. The district court exercises jurisdiction over felony viola- tions of the local criminal code as well as jurisdiction over crime arising under Federal law. The municipal court judges, two in St. Thomas, two in St. Croix, are appointed by the Governor, and confirmed by the legislature. The municipal court exercises jurisdiction over misdemeanor violations and traf- fic offenses under the local law. Civil cases involving less than $500 are handled by the municipal court; cases involving from $501 to $10,000 are handled by either the municipal court or the Federal court; all cases over $10,000 are in the exclusive juris- diction of the Federal court. The district court of the Virgin Islands exercises appellate jurisdiction over the municipal court in civil and criminal cases. The U.S. Court of Appeals for the Third Circuit, Phila- delphia, and the U.S. Supreme Court exercise appellate jurisdiction over the district court of the Virgin Islands. Finances and Taxes There are three principal sources of revenue for the government of the Vir- gin Islands from which funds are derived for capital and operating dis- bursement. The largest source, and one that is growing every year, is from local in- come taxes. An act of the Congress of the United States provides that Federal income tax schedules be applied as a local tax in the Virgin Islands. Another major contributor to the treasury consists of Federal excise taxes collected in the United States on imports of Virgin Islands products and returned to the local government as matching funds. In order to receive funds, the islands must raise through local taxes, funds which match in size the excises to be rebated. In fiscal 1967, the grand total col- lected for capital and operating re- quirements was $46,948,182 as com- pared with $37,594,187 in 1966 and $28,905,904 in 1965. In addition, the Federal Govern- ment assists the islands by appropria- tions and grant-in-aid allotments for many activities in employment services, public assistance, health and diseases services, wildlife, and libraries. There are over 60 such aid programs and appropriations. Economic Development Tourism continues to be the most important industry in the Virgin Is- lands. Income from visitors' expendi- tures during fiscal year 1967 reached a new record high of $75 million as com- pared with $59 million in fiscal year 1966. Efforts continue toward the creation of a broader industrial and agricultural base within the islands' economy. To establish and maintain this economic stability, small manufacturing firms are continually being encouraged to estab- lish operation in the islands. On St. Croix, two large industrial concerns are in production, providing employment opportunities for a large number of citizens. Such diversification provides year- round employment at good wages for many islanders, and has helped bring about a higher standard of living than ever existed under the one-crop, one- industry, sugar economy of old. Virgin Islanders' per capita income is in excess of $2,100 and is by far the highest in the entire Caribbean. The sale of rum, the distilling of which is a major industry of the islands, is promoted through the Virgin Islands Rum Council, supported jointly by the rum distillers and the local govern- ment. Tax exemptions and subsidy benefits have long been used by the local gov- ernment to encourage industrial devel- opment. Incentives for private invest- ment in hotels, guesthouses, industrial concerns, and housing projects include tax exemptions of up to 16 years and the return of 75 percent of income taxes in the form of subsidy. Virgin Islands manufacturers of goods that contain not more than 50 percent of foreign raw materials are al- lowed duty-free entry into the United States of their products under section 301 of the U.S. Tariff Act. The local government, acting strongly to protect the integrity of this section, also guards against abuses by setting up tax quotas for certain classifications of products. Production in excess of quotas is taxed at a much higher rate. Population The Virgin Islands are in the midst of a population explosion. Currently, the resident population is estimated at 60,000, including alien workers and part-time residents, and it is expected this will jump to 70,000 by 1970. The 1960 census recorded the resi- dent population at 32,099. A break- down of the 1960 population figures records 15,930 males and 16,169 fe- males. Residents of urban communities numbered 18,017; 14,082 lived in rural areas, while 8,892 were enrolled in schools. The total labor force was 11,334, of which 7,363 were male and 3,971 female. Unemployment was listed at 3.4 percent. Under Manpower Development Training Act Programs, the Virgin Islands Depart- ment of Labor in cooperation with local industries and businesses fosters technical training for young islanders. Here an ap- prentice develops skills as a shop machinist. English is the traditional language of the Virgin Islands. Some French is spoken by citizens of French descent on St. Thomas, and many Spanish-speak- ing families have come from Puerto Rico, chiefly settling in St. Croix. The people are devout and worship in many churches including Roman Catholic, Anglican, Lutheran, Meth- odist, Jewish, Moravian, Seventh-Day Adventist, Pilgrim Holiness, Christian Mission, Dutch Reformed, and Baptist. Health and Education The Virgin Islands have set an ex- ample for the entire Caribbean in the preservation of health, the develop- ment of education, and the replace- ment of slums with modern housing. Each year sees further advances in hospital and public health services, and two multimillion-dollar health centers designed to provide adequate facilities for the long-range needs of the com- munity will reach to construction stage in 1968. Diseases once associated with tropical climates have long since been eradicated, and the climate eliminates the need for home heating or heavy clothing, further contributing to the good health of the Virgin Islands. Educational standards continue to be upgraded. Public schools cover kindergarten through high school, and the islands' two major high schools have full accreditation. A crash school construction program, begun 2 years ago, has created an additional 109 classrooms in the islands. Communication and Transportation All three Virgin Islands enjoy the facilities of a dial telephone system that is being constantly expanded to meet the growing needs of the community. Marine cables have been installed that has made possible direct dialing to Puerto Rico and to the mainland in early fiscal 1967. Worldwide radio telegraph service is also available. The islands are served by three radio Advanced teaching machines are being in- corporated in Virgin Islands public school programs. Here one such instrument is being used to develop communicative skills among elementary school pupils. stations, two television stations, and six newspapers, four of them dailies. While most visitors come by air, fly- ing in jet planes to Puerto Rico and then by smaller planes to the islands, aircraft design of recent years is af- fecting this travel pattern. With the introduction of medium-range jet air- craft, capable of takeoflfs and landings from short runways, the islands are now serviced by daily direct jet serv- ice from New York City. Aside from short-stay cruise ship passengers, there are very few people who arrive by boat. Small native sloops and charter boats carry travelers between islands and to the nearby British Virgin Islands. Local transportation is provided by bus, taxis, and rented vehicles. Most roads are paved, with continued im- provement each year, and driving is on the left side of the road. Highlights of the Year At the close of fiscal year 1967, the Virgin Islands was positioned to view accomplishments, not only of the pre- vious 12-month period, but on a broad and highly significant scale, of progress realized over the course of a 50-year association with the United States. The contemporary efforts of this cur- rent administration, and that of others since 1917, when viewed and evaluated within the context of these 50 years, presents a total picture of upward movement in terms of social, economic, and political development in the islands. March 31—Transfer Day in the Territory—in 1967 provided the op- portunity for reflection, accessment, and projections into the Virgin Islands future, as the total populous, together with distinguished guests from the United States and Denmark joined in an impressive observance marking 50 years under the American flag. His Ex- cellency Torben Ronne, Ambassador of Denmark to the United States, and the Honorable Stewart Udall, U.S. Secre- tary of the Interior, led the list of guests at the major semicentennial programs. The 50-year relationship between the Virgin Islands and the United States provided added significance to the islands' invitation extended to the Na- tional Governors' Conference to hold its 1967 convention in the territory. At their Los Angeles meeting in July 1966, the Nation's Governors voted unani- mously to accept this invitation, and at the end of the fiscal year, extensive plans were underway in the islands to host the convention in October 1967. As these two activities will have re- sulted in tremendous exposure of the Virgin Islands throughout the main- land, continued inner development and growth was recorded in broad areas of the economy and in insular social serv- ices during the year. EfTorts to further diversify the econ- omy saw steady results, and definite in- roads were realized in the government's efforts to provide more and better housing, expanded health services, in- creased classroom space, educational facilities and services, and additional power and water supplies. A close relationship was maintained between the islands' territorial govern- ment and the Congress of the United States, the Department of the Interior, and other Federal agencies that steady, healthy progress continue toward the fulfillment of long-range plans through Federal-insular cooperation. Efforts Toward Greater Autonomy See Gains Federal-insular relationships during the year continued to be highlighted by efforts for the passage by the Congress of an Elected Governor Bill for the territory. Hearings were scheduled by commit- tees in both houses on such a measure, where unqualified endorsements of the Department of the Interior, and the 8 testimonies of Virgin Islanders were en- tered into the record. The bill passed both houses. How- ever, in that differences existed in pro- visions to be found in the House and Senate versions of the bill, the measure was referred to a conference commit- tee. Because of other pressing legislative matters the bill did not come up for consideration and the measure was once again introduced in the congres- sional session that began in January 1967. At the close of fiscal year 1967, a re- introduced Elected Governor Bill for the Virgin Islands was under consid- eration in both the Senate and the House with eventual passage expected by both bodies in the coming fiscal year. A bill that increased the number of Virgin Islands Legislators from 11 to 15 was passed by the Congress and signed into law by the President during the year. This enlarged body took office in January 1967 and overall improve- ments in legislative procedures were soon noted. Membership on legislative committees was more evenly distrib- uted and workloads for senators pro- portioned for the effective application of committee duties. Industrial Development Boosted A major incentive for selective in- dustrialization in St. Thomas through the establishment of small- and medi- um-size manufacturing operations oc- curred during the year when the local government acquired from the Fed- eral Government 196.3 acres of land at the submarine base, portions of which have been earmarked for an in- dustrial park. The land and improvements were appraised by the General Services Ad- ministration at $3,934,000 and acquisi- tion accomplished in February 1967 under terms of 10 percent down, with the balance to be paid over a period of 10 years at an interest rate of 4% per- cent. With ownership and management of these properties now in the hands of the Virgin Islands government, plans can now proceed smoothly for indus- trial development on St. Thomas, uti- lizing highly suitable sites in the sub- marine base area. Due to natural physical advantages, the Island of St. Croix has led over St. Thomas as the center for industrial development in the islands. A leveling off of this situation is now possible through the acquisition of this land and its subsequent development as an in- dustrial area on St. Thomas. The stabilizing effects on the Virgin Islands economy as a result of the ac- tivities of two major industries in operation on St. Croix continued in evidence. More employment opportu- nities opened up for the island's inhab- itants, both within these companies, and within the total labor market that has expanded as a result of such in- creased industrial activity. The island's large alumina plant reached full production during the year and the petroleum refinery began operations. With regards to the latter operation, tremendous economic benefits were foreseeable for the islands should this company be granted a requested in- crease in its oil importation quota into the United States. At the end of the year the Government cognizant of such benefits, which would amount to $12,- 500 per day in royalties paid by the company to the Virgin Islands Treas- ury, had prepared legislation specifi- cally outlining areas in which such funds would be utilized to assure air and water pollution control, adequate sewage disposal, and proper utiliza- An aerial view of submarine base, St. Thomas, acquired by the Government of the Virgin Islands from the Federal Government this year. Portions of the land have been earmarked for the development of an industrial park. tion and development of outdoor recreational areas. Total support from all segments of the Virgin Islands so- ciety was extended on behalf of the petroleum company's application for increased quotas before the Oil Import Administration. Additional benefits possible through this increased quota involve the estab- lishment of satellite industries in St. Croix^ based on petrochemical manu- facturing. Utilizing the byproducts of the petro- leum operation, these industries would be naturally attracted to establish in the vicinity of the refinery for the manufacturing of plastics and other products, thereby creating still greater economic diversification in the islands. Bond Financing Increases The fiscal integrity of the govern- ment of the Virgin Islands continued to receive highly favorable endorsement by banking institutions, both in the is- lands and on the mainland. By the end of the year the Govern- ment had successfully sold $5,200,000 in general obligation bonds and $6,- 400,000 in interim general obligation and electric revenue bond anticipation notes on the New York market; and interim general obligation bond antici- pation notes totaling $4,515,000 were held by local banks. Such confidence on the part of finan- cial institutions was particularly in evi- dence during the year when the largest note sale of the period took place in New York City on May 17. A total of $6,400,000 in interim bond anticipa- tion notes were purchased at that time by the Chase Manhattan Bank. The sale included $2,400,000 in water sys- tem general obligation bond anticipa- tion notes at an interest rate of 2.55 percent, and $4,000,000 in electric 10 revenue bond anticipation notes at an interest rate of 2.98 percent. The latter represented the first sale of revenue notes, and was authorized by resolution No. 33, adopted by the Governing Board of the Virgin Islands Water and Power Authority on April 14, 1967. Financial consultants to the govern- ment expressed pleasure with the prices obtained on these sales and indications are that such favorable prices will be helpful in obtaining a good interest rate when the revenue bond issue is brought to the market. Power and Water Developments With the sale of the Electric System Bond Anticipation Notes, positive ef- forts were possible toward an extensive program to increase the supply of this public utility in the islands. A 10,000 kilowatt electric generating unit is currently being installed on St. Croix at a cost of $2,500,000 and in May 1967 bids were let for a 1 million gallons per day desalting plant which will operate in conjunction with this generating unit. Construction on this $1,155,990 water unit will begin in October 1967 and is expected to be completed in March 1968. On St. Thomas work began on a $6.3 million combination 2.5 million gallons per day desalting plant and 15,000 kilowatt net steam generating plant to be located at Krum Bay. The first section of the desalting plant will be installed in November 1967 with full commercial operations scheduled for mid- 1968. This unit will supplement the two existing desalting plants on St. Thomas which during the year produced a total of 311.8 million gallons of fresh water. Electrical power output increased significantly during the year. On St. Croix total power production was 50.9 million kilowatt-hour, or 33.24 percent higher than in the previous year. St. Thomas power production for the same period was 84.8 million kilowatt- hour, or 21.66 percent higher than in fiscal year 1966. Educational Services Expanded A crash school building program begun in fiscal year 1 966, by the end of the period covered in this report had resulted in the creation of an addi- tional 109 classrooms in the islands. Major construction work had been completed on two major facilities, the 40-classroom Wayne N. Aspinall Junior High School on St. Thomas, and the 42-classroom Central High School on St. Croix. Both of these schools will admit students in Septem- ber 1967. Also completed during the year was the new Tutu Elementary School, a 10-classroom facility designed to serve an area of concentrated development on the eastern end of St. Thomas. Under the crash school building program, additional classrooms were or are in the process of being added to four schools in St. Thomas. Two class- rooms each have been added to the Herrick and Madison Schools, and three at the Jane E. Tuitt School. Construction was nearing completion at the end of the year on a 10-room addition to the Nisky School. Significant progress was realized in the curriculum and instructional areas of education. In the elementary sys- tem, the Grove Place School on St. Croix operated as a demonstration school with a special coordinator as- signed from New York University, and a nongraded primary program estab- lished at the Lockhart Elementary School on St. Thomas. On the secondary level, an educa- tional Core Program was introduced into three junior high schools after a 11 year of planning, orientation of teach- ers, and final acceptance by the Board of Education. Of great importance in the Depart- ment of Education's achievements during the year were the contributions made under the Elementary and Sec- ondary School Act of 1965, the OfHce of Economic Opportunity, and other Federal and local agencies. These and other activities within the department are handled more in detail further in this report. Virgin Islands Higher Education The College of the Virgin Islands in fiscal year 1967 experienced growth, both in a physical sense and in terms of services offered full- and part-time students, and the Virgin Islands com- munity in general. The fall enrollment of full-time students numbered 229, an increase of 79 percent over last year. In the Di- vision of Continuing Education 700 were enrolled, an increase of 17 per- cent over the previous year. The college's building plans, out- lined in the 1966 annual report, have been realized with construction now underway on women's residence halls, a library, and faculty homes. A nursing building will be the next unit con- structed under the college's master building plan. An important development for the college was its assumption of full re- sponsibility for the U.S. Department of Agriculture Federal Extension Serv- ice in operation on the Island of St. Croix. Economic Opportunity Act Programs Expand Over the course of fiscal year 1967 a total of 18 Economic Opportunity Act and related programs were funded and in operation in the Virgin Islands. Administered fully or in part by the Virgin Islands Office of Economic Opportunity, these programs during the year received a total of $3,074,925 in Federal and local funds. On out-of-school neighborhood youth corps programs, approximately 600 young persons were served, who were given paid work experiences, remedial and vocational education, and counseling in order to increase their employability or to assist them to resume their education. Under the in-school neighborhood youth corps program, 365 enrollees benefited through paid work experi- ences and special counseling designed to assist them to continue in their edu- cation. This program was sponsored and administered by the Virgin Islands Department of Health. A summer headstart program, spon- sored by the Virgin Islands Governor's Commission for Human Services, and administered by the Department of Education, saw 500 children enrolled in an 8-week undertaking that pro- vided compensatory education prior to their attending school in the fall. A 10-month program of compensa- tory preschool education for disadvan- taged children was provided, using public, private, and parochial schools and community centers as classrooms under a full-year headstart program. From this program, 500 children profited. During the year 50 headstart teach- ers and aides participated in an "on island" training program and 30 at- tended a 7-week training session at Wheelock College, Boston, Mass. A particularly unique VISTA pro- gram in operation in the islands saw 36 volunteers serving 270 preschool children, 150 adults, and approxi- mately 100 students in need of special tutoring. Functioning within the neigh-" 12 borhoods of the persons served, these volunteers conducted community de- velopment and preschool programs, as well as assisted other programs of the local government designed to combat poverty and further the health, educa- tion, and welfare of the territory. Project Upward Bound, serving high school students from low-income fam- ilies, and designed to help them finish school and then motivates them on to college, provided a full-time residential summer program at the College of the Virgin Islands. This was followed up by an academic year of Saturday classes and midweek tutorial sessions in addition to their normal studies. This program served 120 students. Funds were approved during the year for two mobile health clinics, one for St. Thomas and the other for St. Croix, under a health outreach program. The Virgin Islands Office of Eco- nomic Opportunity also provided em- ployment opportunities for needy adults in approximately 68 cases under a work experience program adminis- tered by the Department of Social Welfare. Other OEO programs operat- ing during the year were work-study programs, administered by the College of the Virgin Islands; an adult basic education program, administered by the Department of Education ; and the Job Corps, which saw 129 young Virgin Islanders enrolled in mainland Job Corps centers acquiring vocational and educational skills. Memorial Hospital was reorganized into services of surgery, medicine, ob- stetrics, and pediatrics and a chief of each service plus staff assigned. Work began on a 32-bed addition to this facility in May 1967. This new addition will greatly alleviate conges- tion and provide space for ancillary services such as a modern physiother- apy department and medical library. The Division of Public Health, Bureau of Environmental Sanitation, continued its vigorously pursued pro- gram to eliminate the Aedes Aegypti mosquito in the islands. The index has been markedly reduced, almost to zero in St. Thomas and St. Croix. It is ex- pected that this disease-carrying insect will be eradicated within the year on these two islands as it has now been on St. John. While the government's efforts over the past 6 years have produced major advances in housing, limited funds have prevented the operation of a larger and still more dynamic pro- gram to meet the ever-increasing demands of residents for better living conditions. The recent introduction of large, low-cost developments by private de- velopers, however, is expected to alleviate the conditions to a great extent. The government's concerted efforts in these two major areas are described in the more detailed departmental reports to follow. Gains in Health and Housing Concentrated concern continued to be applied in areas of health and hous- ing during the year. Within the Department of Health's operations, important strides were particularly noted on St. Croix. The medical staff at the Charles Harwood Economic Growth All economic indicators during the year showed continuing upward growth, with employment opportuni- ties expanding, government revenues increasing, per capita income remain- ing on a healthy level, and tourist derived dollars again setting alltime records. a82-34S 0—6 13 i Under the Virgin Islands Department of Housing and Community Renewal insular financed public housing programs see the development of such emergency units as this one located in hospital grounds, St. Thomas. Tourist expenditures reached $75 million during the year as compared with $59 million in fiscal year 1966. A meaningful indication of the vitality and stability of the economy is seen in the continued expansion of banking activities by leading national and inter- national institutions. During the fiscal year, First National City Bank of New York supplemented its St. Croix opera- tion with a branch in St. Thomas and Barclays Bank D.C.O. of London, licensed to do business in fiscal year 1966, went into full operation in the islands. Further on the banking scene, major construction was begun on new office buildings by the Virgin Islands Na- tional Bank and Barclays Bank D.C.O. , on Veterans Drive in St. Thomas, thereby increasing overall land values in the area, as well as adding greatly to the physical appear- ance of the waterfront. Tourism Development The evergrowing demands upon public services and facilities are yearly compounded by increasing numbers of tourists visiting the islands. During fiscal year 1967, a total of 649,652 visitors came to St. Thomas, St. Croix, and St. John, graphically attesting to the growing popularity of the Virgin Islands with vacationers. To further stimulate such visitations, the Department of Commerce strength- ened its promotional efforts in many areas, both through media advertising, and person-to-person contacts with travel interest groups. 14 On the hotel and resort scene, a major 150-room waterfront hotel opened for business in St. Thomas and preliminary plans are being formu- lated for an additional luxury-type re- sort facility on St. Croix. St. John National Park continued to enjoy year-round full bookings at its campsite on Cinnamon Bay, and St. Croix's 18-hole championship Foun- tain Valley Golf Course saw increasing numbers of players from the mainland, Puerto Rico, and the islands. Precustoms clearance became a re- ality in the Virgin Islands during the year with the opening of a customs facility at the Alexander Hamilton Airport on St. Croix for the conven- ience of travellers returning to the mainland. Quick and expedient pre- customs clearance is now possible for the islands' visitors returning to New York City on direct flights from St. Thomas and St. Croix. Additional Air Service Realized The government of the Virgin Is- lands in fiscal year 1967, intensified its efforts to see the further expansion of air service into the islands. In briefs filed before the Civil Aeronautics Board in Washington, the government has gone on record in support of its long- standing position that the islands are in growing need of additional and ex- panded routes from the U.S. mainland. The government in the previous fis- cal period had supported the petition of Pan American World Airways to be allowed to start turnaround service in the Virgin Islands and this request was granted by the Civil Aeronautics Board. That such service would meet a definite travel demand was exempli- fied during fiscal year 1967 through the fact that Pan American increased sig- nificantly the number of direct jet flights into St. Thomas and St. Croix from New York City. To better facilitate landings and takeoffs for these jet aircraft improve- ments were made to the runway and approaches at the Harry S. Truman Airport on St. Thomas. This involved extending the runway to the west and removing portions of a hill on the east- ern end of the airport. While Pan American Airways serv- ice into the islands is a step in the de- sired direction, the territory would like to see in air travel into and from the islands, the government during the year continued in its quest for ultimate service by supporting Eastern Airlines and Trans Caribbean requests to serv- ice St. Thomas and St. Croix. Further to protect the competitive tourism position of the Virgin Islands the government continued to formu- late plans for the development of a new airport for St. Thomas capable of accommodating the larger jet planes of the near future. At the end of the fiscal period, a feasibility study had been completed by consultant engi- neers for this facility. Sights on the Future As fiscal year 1967 ended, the Gov- ernment of the Virgin Islands was well at work on programs, projects, and plans designed to fullfill needs of the far-reaching future. As formulations for an up-to-date airport for St. Thomas proceeded into the planning phase, so were other efforts reaching the incubation stages. Long-range ef- forts toward the creation of multimil- lion-dollar health centers on St. Thomas and St. Croix proceeded on schedule, and preliminary plans in- stituted toward effective air and water pollution controls. On-the-scene efforts in Washington were offered by Government officials 15 and consultants to assure the Virgin Islands inclusion in federally sponsored educational television legislation. Fur- ther, by maintaining close Federal re- lations, the islands very early in the program had submitted applications for planning grants that established a Virgin Islands Arts Council program. The Government is maintaining a close watch on trends in tourism and how the travel patterns of vacationers may change in the coming future. In this respect, future vacation travel may very well see the full development of combination air-sea trips in the Carib- bean with a particular area serving as the beginning and terminal point for such package arrangements. The Vir- gin Islands are highly suitable for such a travel center and long-range plan- ning keeps this eventuality in mind. As the islands continued to draw greater numbers of visitors from the United States mainland, and increasing numbers from Canada, so too have the attractions of St. Thomas, St. Croix, and St. John come to the attention of Europeans, Africans, and Asians through the U.S. Department of State's foreign visitor programs. As active participants in these pro- grams, the islands during the year hosted a considerable number of for- eign dignitaries. The government con- tinues to take pride in its contributions in this area and appreciates this oppor- tunty of presenting to these foreign dignitaries a picture of American democracy as it exists under the Virgin Islands way of life. A young Charlotte Amalie High School artist shows her paintings in a Department of Education sponsored islandwide exhibit. Creative expression is being encouraged in all of the arts through programs fostered by the Department of Education and the Virgin Islands Council on the Arts. 16 Legislation During the fiscal year ending June 30, 1967, there were four sessions of the sixth legislature and three sessions of the seventh legislature as follows : Sixth Legislature, Fifth Special Ses- sion, August 13, 1966.—Two bills and four resolutions were proposed. One bill and three resolutions were adopted. One bill was not considered and one resolution was referred to committee. One bill was approved by the Gover- nor. The resolution did not require executive action. Sixth Legislature, Sixth Special Ses- sion, August 24, 1966.—Eleven bills and two resolutions were proposed. Ten bills and two resolutions were adopted. One bill was not considered. Ten bills were approved by the Governor. The resolutions did not require executive action. Sixth Legislature, Seventh Special Session, September 9, 1966.—Four bills and one resolution were proposed. Four bills and three resolutions were pro- posed. Twelve bills and three resolu- tions were adopted. Twelve bills were approved by the Governor. The resolu- tions did not require executive action. Sixth Legislature, Eighth Special Session, December 1, 1966.—Twelve bills and three resolutions were pro- posed. Twelve bills and three resolu- tions were adopted. Twelve bills were approved by the Governor. The resolu- tions did not require executive action. Seventh Legislature, Regular Ses- sion, January 16, 1967-March 16, 1967.—One hundred seventy-eight bills and twenty-three resolutions were proposed. One hundred thirty-three bills and twenty-one resolutions were adopted. Two bills were withdrawn and one resolution recalled. Twenty bills were dropped and twenty-three referred for further study. The Gover- nor approved one hundred sixteen bills and vetoed seventeen. The resolutions required no execu- tive action. Seventh Legislature, First Special Session, April 17-19, 1967.—Fifty-one bills and seven resolutions were pro- posed. Fifty bills and seven resolutions were adopted. One bill was referred to committee. The Governor approved forty-four bills and vetoed six. The resolutions required no executive action. Seventh Legislature, Second Special Session.—Forty-nine bills and six reso- lutions were proposed. Forty-four bills and five resolutions were adopted. Five bills and one resolution were dropped. Forty-eight bills were approved by the Governor. The resolutions did not re- quire executive action. In addition to the major budgets, the following are the most significant acts adopted during the year: To Provide for the Date of Primary Elections and the Filing of Nomina- tions in the Year 1966. To Provide Assistance to Livestock Raisers, and for Other Purposes. 17 To Amend Title 18 of the Virgin Islands Code Relating to Elections. To defer the Application of Penalties on 1965 Real Property Taxes. To Authorize the Governor To Con- duct Negotiations for the Acquisition of Certain Lands at Estate Concordia, Fredericksted, St. Croix. To Authorize the Issuance of Addi- tional General Obligation Bonds or Other Evidences of Indebtedness for the Construction, Improvement, Ex- tension, Betterment, Repair, Recon- struction, Acquisition, and Equipment of Water Systems and To Amend Act No. 1259, Approved October 20, 1964, as Amended. To Authorize the Purchase of Cer- tain Lands at Estate Honduras, St. Thomas, To Authorize Appropriations Therefor, and for Other Purposes. To Authorize the Governor of the Virgin Islands To Execute a Certain Supplemental Agreement to "Agree- ment Between the Government of the Virgin Islands and Hess Oil Virgin Islands Corporation, Relating to the Construction of an Oil Refinery and Other Related Facilities in St. Croix, Virgin Islands." Dated September 1, 1965. To Provide for the Number of Poll- ing Places for the 1966 Primary Elec- tion, and for Other Purposes. To Repeal the Provisions of Section 310 of Title 17 of the Virgin Islands Code Relating to the Limitation on the Number of Veterans Granted Assistance Under the Provisions of Title 17. To Amend Act No. 1251 Relating to the Acquisition of the Electric Power and Water Systems of the Virgin Islands. To provide Appropriations for the Semicentennial Year Including the Governor's Conference in the Virgin Islands. To Amend Act No. 1665, Relating to the Construction of Camping Fa- cilities for the Peace Corps. To Amend Section 106 of Act No. 1248 To Increase the Revenue Bond Financing Authorization for the Virgin Islands Water and Power Authority. To Amend Act No. 1259, Approved October 30, 1964, as Amended, Re- lating to Issuance of General Obliga- tions Bonds for Certain Purposes. To Authorize the Governor to Ne- gotiate for the Purchase and Installa- tion of Water Storage Tanks in St. Croix and St. Thomas. To Provide for a Commission on the Reapportionment of the Legisla- ture of the Virgin Islands, and for Other Purposes. To Repeal Certain Provisions of Chapter 9, Title 33 of the Virgin Islands Code, Relating to Production Taxes on Watches, Clocks, and Tim- ing Apparatus Manufactured in the Virgin Islands, and for Other Pur- poses. To Amend the Provisions of Section 502(b) of Title 33 of the Virgin Islands Code Relating to Woolen Yard Goods. To Facilitate Mortgage Financing in the Virgin Islands, and for Other Pur- poses. To Amend Section 46, Tide 17 of the Virgin Islands Code, Relating to the High School Equivalency Program. To Amend Section 106 of Act 1248, to Increase the Revenue Bond Financing Authority of the Virgin Islands Water and Power Authority. To Amend the Provisions of Title 4, Chapter 7 of the Virgin Islands Code Relating to the Small Claims Division of the Municipal Court. To Amend Section 51 of Title 1, Virgin Islands Code Relating to the Severability of the Provisions of the Laws of the Virgin Islands. 18 To Designate the Commissioner of Agriculture as the Territorial Forester of the Virgin Islands, to Accept the Provisions of Certain Federal Acts Pertaining to Forests and Forestry, and for Other Purposes. An Act to Amend 3 Virgin Islands Code, Section 551, Schedule III, Virgin Islands Code, Relating to Salary Schedule for Professional Per- sonnel in the Department of Educa- tion. To Amend Section 74 of Title 4, and Section 109 of Title 16, Virgin Islands Code, Relating to the Enforcement of Support Provisions in Any Decrees of Separation or Divorce. To Provide for the Care, Custody, Preservation and Disposition of Public Records, and for Other Purposes. Act to Authorize the Governor to Effect an Exchange of Land for Purposes of Correcting an Encroach- ment, Preserving an Historical Site, and Providing the Community with Control over the Watergut Entrance to the Bay at Christiansted. To Provide for the Implementation of the Report on Sewerage and Sewage Treatment (CDM-389-1) Submitted by Camp, Dresser, and McKee, Con- sulting Engineers, and for Other Pur- poses. To Provide an Appropriation From the Special Airport Fund for the Development, Improvement, Opera- tion, and Maintenance of Public Air- ports in the Virgin Islands for the Fiscal Year July 1, 1966 to June 30, 1967. To Add A New Chapter 15 to Title 23, Virgin Islands Code, Relating to the Establishment of a Police Cadet Corps, and for Other Purposes. To Provide for a Comprehensive Survey and Analysis of the Govern- ment Personnel System, and for Other Purposes. To Authorize the Designation of Deputy Marshals To Enforce the Col- lection of Delinquent Real Property Taxes. To Establish the Morris F. deCastro Chair in Government at the College of the Virgin Islands, and for Other Purposes. To Amend the Provisions of Title 5, of the Virgin Islands Code Relating to The Employment and Eligibility for Parole of Prisoners, and the Apprehen- sion of Parole Violators. To Amend Section 551 of Title 3 of the Virgin Islands Code, With Respect to Minimum Salaries for Professional Employees of the Depart- ment of Education. To Provide for a Feasibility Study for the Development of Coral Bay Harbor, St. John, and for Other Pur- poses. To Amend Certain Provisions of Title 20, Virgin Islands Code, Relat- ing to Motor Vehicles. To Authorize the Governor To Ex- ecute an Amendment to a Certain Supplemental Agreement With Hess Oil Virgin Islands Corp., Pursuant to Act No. 1817, Approved September 13, 1966. To Amend Certain Provisions of Title 3, 4, and 33 of the Virgin Is- lands Code, To Provide for a Reorga- nization of the Office of the Marshal of the Municipal Court of the Virgin Islands, and for Other Purposes. To Amend the Provisions of Section 282 of Tide 19, the Virgin Islands Code, Relating to Housing Accommo- dations for Resident Physicians and Nurses. To Authorize the Governor to Ex- ecute an Amendment to the Agreement of April 1, 1964, between the Govern- ment of the Virgin Islands and Hans Lollik Corp., Relating to the Construc- tion of a Hotel, Marina, Housing Project, and Other Related Facilities and for Other Purposes. 19 To Authorize the Virgin Islands Board of Education To Make a Special Investigation and Study of Certain Problems in the Public Schools. To Authorize the Virgin Islands Board of Education To Make a Study of Special Education and Technical Needs Which Are Essential To Supply the Knowledge and Skills Required by Government and Private Enterprise, To Recommend Special Scholarship Programs To Fill these Needs, and for Other Purposes. To Provide an Appropriation for a Sewerage Treatment Unit in the Public Works Area at Anna's Hope, St. Croix. To Provide for the Licensing and Regulation of Real Estate Brokers and Real Estate Salesmen, and for Other Purposes. To Authorize the Borrowing of Funds From the Reserves of the Em- ployees Retirement System for the Pur- pose of Moderate Income Housing, To Provide for Adequate Security and for Other Purposes. Act To Authorize the Purchase of Approximately 9.95 Acres of Land at King's Hill on the Islands of St. Croix From the United States of America for the Purpose of Constructing Thereon a Low-Rent Public Housing Project. To Provide for The acceleration of the Day-Care Center and Subsidy Pro- gram Authorized in Section 19. Title 34, Virgin Islands Code, and for Other Purposes. To Establish the Pollyberg Commu- nity Development in St. Thomas, Vir- gin Islands, and for Other Purposes. To Amend Act No. 1002, Approved March 26, 1963, To Provide for the Preparation of a Master Recording of the "Virgin Islands March," and "Gov- ernor's Own," and To Provide an Ap- propriation Therefor. To Provide Two Associate Commis- sioners in the Department of Education and for Other Purposes. To Provide Relief for the Rum- Producing Industry in the Virgin Is- lands, To Establish for Said Purpose the "Emergency Molasses Fund," and Establish the Policy and Regulations for Administration of the Said Fund, and for Other Purposes. To Provide for the approval of Grants to Students Enrolled in the Practical Nursing Training Program, To Make an Appropriation Therefor and for Other Purposes. To Establish a Virgin Islands Day in the Continental United States, and for Other Purposes. To Authorize the Department of Public Works to Provide for a Study of a Modern Street-Lighting System for the Virgin Islands, and for Other Purposes. To Provide Home-Care Service for Aged-Indigent Senior Citizens, and for Other Purposes. To Provide for the Improvement of John Brewer's Bay as a Public Beach, and for Other PurpKDses. To Establish a Special Temporary Legislative Committee To Study and To Recommend Alterations in the Pay Play for Employees of the Department of Health, of Education, and of Public Safety, and for Other Purposes. To Provide for a Comprehensive Program of Recreation Development and for Other Purposes. To Authorize the Department of Public Safety To Employ Women as School-Crossing Guards During Ap- propriate Periods of School Days and for Other Purposes. To Authorize Study Leave for Gov- ernment Employees. To Authorize the Governor To Enter into a Certain Agreement With the In- ternational Association of Chiefs of Police, Inc., for a Survey of the Police Division of the Department of Public Safety. To Amend Section 1 of Act No. 1820 Relating to the Acquisition of the Elec- 20 trie Power and Water Distillation Sys- tems of the Virgin Islands Corp. To Amend Section 3304, Title 33 of the Virgin Islands Code, Relating to Collateral in Lieu of Depositing Bonds To Secure Government Funds. To Extend the Termination Date for Programs Under Act No. 1575 Re- lating to Mental Retardation. To Authorize the Governor To En- ter Into Certain Agreement with Re- spect to the Acquisition or Manage- ment of Certain Federal Properties in the Virgin Islands, To Provide for the Protection, Maintenance and Manage- ment of such Properties and for Other Purposes. To Increase the Authorized Number of Notaries Public. To Extend the Termination Date of Chapter 3, Title 33, of the Virgin Islands Code Relating to Excise Taxes, Gross Receipts Taxes, and Wharfage and Docking Fees. To Authorise the Control, Preven- tion, and Abatement of Air Pollution in the Virgin Islands. To Amend Subtitle 4, Chapter 201, Title 33 of the Virgin Islands Code, Relating to the Incentive Program. To Amend Section 3503, Title 5, of the Virgin Islands Code relating to Adequate Representation of Defendants. To Remove Termination Date with Respect to the Approval of the Official Zoning Maps for the Islands of St. Thomas, St. John, and St. Croix. To Authorize the Control, Preven- tion, and Abatement of Pollution of Surface and Underground Waters of the Virgin Islands. To Revise the Procedures for the Licensing of Businesses, Professions, Occupations, and Trades in the Virgin Islands, and for Other Purposes. To Direct the Boards of Elections To Conduct a Checkup of Each Registered Elector in Their Respective Legislative Districts Pursuant to the Provisions of Section 110, Chapter 5, Title 18, Vir- gin Islands Code, In Order To Correct the General Registers, and for Other Purposes. To Amend Chapter 1 7 of Title 3 of the Virgin Islands Code Relating to the Government Retirement System. To Amend Act No. 1991, approved June 6, 1967, Relating to Licensing of Businesses, Professions, Occupations, and Trades in the Virgin Islands. To Amend Chapter 25, Title 3 of the Virgin Islands Code, Relating to the Personnel Merit System. To Amend Act No. 1259, approved October 30, 1964 as amended, Relat- ing to the Issuance of General Obli- gation Bonds for Certain Purposes. To Establish the Office of Civil De- fense Within the Office of the Gover- nor. To Authorize the Commissioner of Finance To Make Refunds of Certain Real Property Tax Payments for 1963, and for Other Purposes. To Amend Chapter 201, Title 33 of the Virgin Islands Code, Relating to the Industrial Incentive Program To Provide Certain Benefits for Contrac- tors Constructing Housing for Low- Income and Moderate-Income Per- sons and Families, and for the Elderly. To Authorize the Governor To Make an In-Depth Study of the Per- sonnel Management of the Virgin Islands. 21 Virgin Islands Water and Power Authority Personnel: 251 Since the acquisition of power and water facilities from the Virgin Islands Corp. on June 1, 1965, the Virgin Islands Water and Power Authority has undertaken an extensive program to increase the supply of these public utilities in the islands. Final negotiations for the sale took place on April 18, 1967, and the authority is now in full possession of all of these facilities and properties at a total cost of $9,500,000. During fiscal year 1967, outside consultants completed a personnel and organization survey for the authority. This study includes analyses of job and personnel evaluations, as well as of salaries and wages, and the develop- ment of continuing personnel review and training programs. Highlighting fiscal developments during the year was the authority's public sale of electric system bond anticipation notes in the amount of $4 million. An award was made to the Chase Manhattan bank at an annual interest rate of 2.98 percent on May 17, 1967. Budget: $2,534,000 To effect more efficient operations, the authority centralized its executive office and the St. Thomas adminis- trative and cashier offices in one build- ing. To provide centralized customer service on St. Croix the authority began remodeling an existing struc- ture that will accommodate the administrative and cashier offices. Ap- proximately 3.4 acres of land adjacent to the authority's property on St. Croix were purchased for expansion purposes. At the end of the year a total of 16,592 electric customers was serviced, of which 9,216 were on St. Thomas- St. John, and 7,376 on St. Croix. Peak electric demand on St. Croix, excluding station service, increased approximately 21.5 percent. The St. Thomas growth rate is approximately 20 percent a year, excluding station service. The following chart reflects billings by the authority for fiscal years 1966-67: An additional 13.2-kilovolt feeder is under construction on St. Croix, to supplement the three existing 13.2- kilovolt primary feeders on that island. Six 4.16-kilovolt feeders are located on St. Thomas in the vicinity of the exist- ing power plant, and four 13.2-kilovolt units service downtown Charlotte Amalie, most rural areas, and the is- land of St. John. St. John is connected to the authority's distribution system by 2^ miles of submarine cable and approximately 10 miles of overhead pole lines. One hundred sixty-seven new mer- cury streetlights were installed and 2,704 customer meters provided in the islands during the period covered by this report. During the same period, 32 miles of lines were installed on St. Croix and 26.9 miles of lines on St. Thomas. Transformer capacity was increased in St. Thomas by 5,548 kilovolt-amperes and in St. Croix by 5,444 kilovolt- amperes. A shortwave communications sys- tem was inaugurated connecting St. Thomas, St. Croix, and St. John with mobile units. This system has greatly increased the efficiency of the authority by providing a communications link whereby contact is easily maintained between the two main offices and emer- gency mobile units. A total of six fixed units and 19 mobile units are in opera- tion in the islands to date. In fiscal year 1967, the total power production on St. Croix was 50.9 mil- lion kilowatt-hours, or 33.24 percent higher than in the previous year. St. Thomas power production for the same period was 84.8 million kilowatt-hours, or 21.66 percent higher than in the previous year. The two salt water distillation plants on St. Thomas produced a total of 311.8 million gallons of fresh water during the year. Of this total amount 280.5 million gallons were sold to the Department of Public Works for use in its public distribution system. This represents 153.4 million gallons more than was sold in 1966. The two salt water distillation plants On St. Thomas are designed to produce a total of 1,250,000 gallons of fresh water per day. The Westinghouse plant, completed in 1966, has not produced at its designed capacity of 1 million gallons per day, however. Negotiations are underway whereby Westinghouse is to build a new evap- orator unit to replace the existing one, thereby guaranteeing a continued pro- duction of 1 million gallons of fresh water per day. This work is expected to begin in August 1967, and com- pleted within 1 month's time. Electric Facilities Kilo- St. Thomas : watts Unit No. 1 diesel 600 Unit No. 2 diesel 600 Unit No. 3 diesel 2, 500 Unit No. 4 diesel 600 Unit No. 5 diesel 750 Unit No. 6 diesel 1, 250 Unit No. 7 steam 3, 000 Unit No. 8 steam 3, 000 Unit No. 9 steam 7, 000 Total kilowatts available on St. Thomas 19,300 The Water and Power Authority has placed a $6.3 million order for a combination 2.5 million gallons per day desalinization plant and a 15,000- kilowatt net steam generating plant to be located in Krum Bay, St. Thomas. The contract was awarded to the Baldwin-Lima-Hamilton Corp. of Philadelphia, Pa., a subsidiary of Armour & Co., of Chicago, 111., and to the International General Electric Co. The first section of the desalination plant will be shipped in November 1967, with full commercial operation scheduled to begin in mid- 1968. A 2,000-kilowatt portable electric generating unit was purchased from 23 the Worthington Corp. of Harrison, N.J., and scheduled for dehvery in August 1967. This $199,000 portable skid-mounted unit will be available for transport from island to island when emergencies occur. The authority repaired three 600- kilowatt diesel generators which had been out of service for several years in order to meet fiscal year 1968 peak loads. This repair work is expected to be completed between October and December of fiscal year 1968, and the units are included in the above capacity tabulations for St. Thomas. Kilowatts St. Croix: Unit No. 1 diesel 429 Unit No. 2 diesel 432 Unit No. 3 diesel 248 Unit No. 4 diesel 1, 000 Unit No. 5 diesel 965 Unit No. 6 diesel 750 Unit No. 7 diesel 2, 216 Unit No. 8 diesel 2, 400 Unit No. 9 diesel 1, 000 Total kw available on St. Croix 9,242 A 10,000-kilowatt electric generat- ing unit is currently being installed by the Worthington Corp. on St. Croix. This unit will be completed late in calendar year 1967 at a cost of $2,500,000. To meet the need for adequate water supply in St. Croix, bids were let in May 1967 for a 1-million-gallon-per- day water desalinization plant for that island. This will be built in conjunction with the Worthington plant now un- der construction. The successful bid- der on this unit was the Stearns- Roger Corp. of Denver, Colo., at a lump-sum bid of $1,155,990. Construc- tion on this unit will begin in October 1967, and is expected to be completed in March 1968. Because of the limited generating capacity on St. Croix, an agreement was entered into on May 26, 1966, be- tween Harvey Alumina Virgin Islands, Inc., and the Virgin Islands Water and Power Authority for the interchange of electric power. For the fiscal year, total power reve- nues stood at $4,510,092, as compared with $3,702,691 for fiscal year 1966. Water sales amounted to $490,835 for fiscal year 1967, as compared with $181,076 for the previous year. 24 Virgin Islands Airport and Industrial Resources Agency Personnel: 152 The Virgin Islands Airport and In- dustrial Resources Agency functions within the Office of the Governor and is responsible for the administration, operation, and maintenance of the Harry S. Truman Airport, Bourne Field housing, Lindbergh Beach, Bourne Field commercial properties, subbase commercial and industrial properties, piers and docks, and the Crown Bay fill in St. Thomas, and the Alexander Hamilton Airport and former Vicorp properties in St. Croix. In addition, the Agency oversees the operations of the Antilles Air Boats at the Charlotte Amalie bulkhead. The most significant occurrence of the fiscal year was the transfer of 196.3 acres of land at the submarine base on St. Thomas together with all improve- ments from the Federal Government to the government of the Virgin Is- lands. The land and improvements were appraised by the General Services Administration at $3,934,000. Acqui- sition was accomplished under terms of 10 percent down, with the balance to be paid over a period of 10 years at an interest rate of 4% percent. The transaction took place February 28, 1967. The former UDT (Underwater Demolition Team) properties com- prised of 33.32 acres were made Operating Appropriation: $790,314.78 available to the local government on September 1, 1966, under a 30-day revocable permit from the Navy. The most important structures on the prop- erty consist of a three-story building now housing several government or government-related agencies, a ware- house building which now provides storage space for local merchants, and three piers. It is expected that owner- ship soon will be transferred to the Virgin Islands government. Bourne Field revenues are derived from 57 low-cost housing units, 23 com- mercial rentals, four hotels, four air- port concessions, beach fees, 10 airlines and air taxis, five tour services, and other fees collected from aircraft oper- ation at the airport. Harry S. Truman Airport As traffic continues to increase at a tremendous rate at the Harry S. Truman Airport, total number of pas- sengers arriving during the fiscal year came to 426,118 compared to 339,667 arrivals during the previous 12-month period. Establishment of a fix-base opera- tion, which now provides refueling, maintenance, repairs, servicing, storage ground services, flight instruction, and sales of aircraft parts, has stimulated 25 interest in aviation locally and has en- couraged private and co-operate air- craft to land at the airport. Two major construction projects were completed at the airport during the fiscal year. The first consisted of the removal of more than 61,000 cubic yards of material from Sara Hill, at the east end of the airport runway, and more than 97,000 cubic yards of hy- draulic fill from Grown Bay, and de- positing the material at the western end to permit a runway extension of 450 feet. A new ambulance was obtained dur- ing the year, along with new safety equipment for the airport firemen. Other new equipment acquired in- cluded apparatus to correct problems with the drinking water, an emergency generator for the first floor of the ter- minal building, sanitary garbage recep- tacles, and a fogging machine to ex- terminate insects which periodically swarm the airport. On November 28, 1966, ground was broken for the new wing at the eastern end of the terminal building to house the Customs, Immigration, and Public Health Offices. The building, consist- ing of 7,200 square feet, is used for preclearance operations. Industrial Park- Crown Bay Sub Base Sub Base covers 197 acres, plus about 33.32 acres of UDT land which is in the process of being transferred to the government of the Virgin Islands. Of the 1 97 acres, it is estimated that about 75 acres are usable for industrial pur- poses. All 33.32 acres of UDT land are usable, and the Grown Bay fill area will add about 15 acres, making a total of about 108 acres usable. Grown Bay fill affords an expanse of nearly flat, open land, whereas flat land in Sub Base is scattered and occurs in oddly shaped parcels which skirt hills with elevations ranging from 135 to 325 feet. An attempt is being made by the Agency to provide space for nearly all applicants for industrial sites to date, resulting at this early stage in the preliminary allocation of almost all land which is reasonably well suited for industrial use. The lengthened runway, coupled with the changed contour of Sara Hill, now permits the Boeing 727 aircraft to operate at a full-passenger capacity on the second—St. Thomas to St. Groix—leg of its triangular service from New York. The project was com- pleted at a cost of $479,062, of which $300,000 was provided by Pan Amer- ican World Airways in the form of ad- vance surcharge fees assessed against all aircraft in excess of 53,500 pounds gross certificated landing weight. The second project was a major re- construction of the runways and taxi- ways at the Harry S. Truman Airport. The work included paving, drainage installations, and painting. The Fed- eral Government provided $779,475 of the $1,159,036 total cost under the Federal aid to airports program. Alexander Hamilton Airport A comprehensive program of re- pairs at the Alexander Hamilton Air- port was completed in April 1967, at a cost of $1,350,000 with the Federal Government contributing $864,575. Several interior sections of the airport were refurbished and a new taxistand was completed in front of the western end of the terminal building. The Flamboyant Race Track was modernized and a new racing program inaugurated. A full-scale beautifica- tion program is being advanced with the help of the Department of Agri- 26 culture. It consists of land clearing and $22,472.13 from the Sub Base prop- decorative planting on the racetrack erties. and south of the terminal building area, There are now 66 lessees and per- continuing to the beach area. mittees in the Sub Base area. Once the During fiscal year 1967, revenues engineering is completed, it is ex- of $210,362 were collected, and pected that the number of activities $14,110.13 in accounts receivable operating from the Crown Bay-Sub were recorded, for a total revenue of Base areas will double. FINANCIAL SUMMARY Fund 525-S.B. (Sub Base and related faciUties) $246, 871. 85 Fund 529-B.F. (Bourne Field and related facilities) 423, 442. 93 Legislative appropriation (Act No. 1859) 20, 000. 00 Legislative appropriation (Act No. 1859) 100, 000. 00 Total revenues 790, 314. 78 Expenditures : Fund 525-S.B. (revolving fund) 311, 428. 94 Fund 529-B.F. (revolving fund) 412, 703. 26 Total expenditures 724, 132. 20 Outstanding obligations 39, 126. 05 Total 763, 258. 25 Revenues 790, 314. 78 Expenditures 763, 258. 25 Surplus 27, 056. 53 Alexander Hamilton Airport revenues 1 50, 008. 00 Alexander Hamilton expenditures (airport) 331, 312. 00 27 Public Utilities Commission Personnel: 3 The Virgin Islands Public Utilities Commission in fiscal year 1967 con- tinued in its efforts to maintain thorough examinations of all utilities subject to its regulations. The terms of two member commissioners expired during the year. One was reappointed, and a new member named to the com- mission. The commission's membership with- in the National Association of Railroad and Utilities Commissioners became more closely knitted through a re- gional affiliation with the Great Lakes Conference of Public Utilities Com- missioners. Shipping The West Indian Co. reported a stable year with a minor drop in gross tonnage. A $14,000 decrease was noted by the company in the cargo handling base rate figure, and the commission was petitioned for a 25 -percent reduc- tion in cargo-handling rates for certain cargoes in hopes that this would result in an increase of tonnage. It is ex- pected that the West Indian Co. will request a general rate increase in the coming fiscal year. A similar situation existed with regards to the deepwater port of Frederiksted, St. Croix. There, Cargo Services Inc., reported a 15-20-percent tonnage reduction over the previous fiscal year. This was occasioned pri- Operating Appropriation: $47,000 marily by Hess Oil cargo being handled at the Krause Lagoon facility, which is not within the jurisdiction of the com- mission. This reported reduction can also be attributed to the expanded activities of minor cargo handlers. Telephone Service The Virgin Islands Telephone Corp. (Vitelco), has grown from a limited nlanual system serving 3,000 sub- scribers in 1959 to modernized elec- tronic operation that provides service to 12,000 customers. Telephone surveys indicate that the coming fiscal year will experience a 20- percent increase in service requests. The commission has concluded that sufficient time has been granted Vitelco to formulate and implement long-range plans that it keep up with the growing demands placed upon the islands' tele- phone system. The commission during the year retained the services of legal and engineering consultants to explore measures whereby Vitelco may provide its subscribers with adequate service. Virgin Isle Communications The interconnection agreement of 1966 between Virgin Isle Communi- cations (Vicom) and Virgin Islands Telephone Corp. (Vitelco), continued in effect in fiscal year 1967. The ques- 28 tion of a local forum had not been settled at the end of the year, however. The matter will again come under con- sideration when Vicom files for a con- templated increase in rates in the com- ing year. Should the company apply to the Federal Communications Com- mission, the commission may possibly consider itself a local forum in which case the FCC may be required to relin- quish regulatory jurisdiction over Vicom. Passenger Bus Service The Commission continued its close surveillance of passenger bus service utilities which resulted in certain irreg- ularities in routing being corrected. Authorized bus stops are now identified and strict adherence to franchises is being effected on all islands. During fiscal year 1 968, all passenger bus utili- ties will be subject to thorough audits, and governing rules and regulations affecting these services will be updated. 282-348 0—68- 29 Bond Issue and Interim Financing The confidence expressed by bank- ing institutions and the general public in the fiscal integrity of the govern- ment of the Virgin Islands since its initial entry into the national money market reflects a national recognition of the present economic growth and development potential of the territory. Since November 1963, when Public Law 180 was passed, giving the Virgin Islands government authority to fi- nance such essential public improve- ments as schools, hospitals, water systems, sewers, and sewage plants by the issuance of general obligation bonds, the legislature of the Virgin Islands has authorized general obliga- tion bond issues totaling $13,267,000. Under similar congressional authority, a total of $25 million in revenue bond issues has been authorized by the legislature for water and power purposes. By the end of June, 1967 the gov- ernment had successfully sold $5,- 200,000 in general obligation bonds and $6,400,000 in interim general ob- ligation and electric revenue bond anticipation notes on the New York market; and interim general obligation bond anticipation notes totaling $4,515,000 were held by local banks. On December 29, 1966 the govern- ment renewed the $1,260,000 bond anticipation notes for water systems and the $1,200,000 bond anticipation notes for hospital and school purposes which would have matured on December 31, 1966. The new interim notes were bought in equal portions by the Chase Manhattan Bank and the Virgin Islands National Bank at a rate of 4^2 percent. These notes will mature on December 31, 1967. The government issued $300,000 in 4 percent bond anticipation notes to the Chase Manhattan Bank and the Virgin Islands National Bank in equal shares for hospital purposes on Febru- ary 9, 1967. These notes mature on December 31, 1967. For water systems $900,000 in 4/2 percent bond anticipation notes were issued on September 19, 1966, with a maturity date of September 19, 1967; and $855,000 in 4 percent notes were issued on April 4, 1967, to mature on December 31, 1967. As in the previous issues, these note sales were shared equally by the Chase Manhattan Bank and the Virgin Islands National Bank. The largest note sale of the year took place in New York City on May 17, 1967 when $6,400,000 in interim bond anticipation notes were sold to the Chase Manhattan Bank. This sale, to provide financing for the Virgin Islands Water and Power Authority, was handled by the firm of Wain- wright & Ramsey, Inc., financial con- sultants to the government, and the 30 legal services were performed by the firm of Hawkins, Delafield & Wood, bond counsel to the government. The sale included $2,400,000 in wa- ter system general obligation bond anticipation notes and $4 million in electric revenue bond anticipation notes. The sale of the electric revenue notes, the first sale of revenue notes, was authorized by resolution No. 33, adopted by the Governing Board of the Virgin Islands Water and Power Authority on April 14, 1967. On May 8, 1967, notices of sale of the water system and revenue notes were issued. The opening of bids took place in the office of Wainwright & Ramsey on May 17, 1967 at 11 a.m. Two bids were received for the pur- chase of the $4 million electric revenue notes, and seven bids were received for the $2,400,000 water system general obligation notes. The governing board of the Virgin Islands Water and Power Authority was advised of the bids by the bond counsel by telephone at 1 1 : 20 a.m. Upon the recommenadtion of the financial consultants the board ac- cepted the bid of 2.98 percent with a premium of $40 by the Chase Man- hattan Bank for the electric revenue bond anticipation notes, and the Gov- ernor, on behalf of the government of the Virgin Islands, accepted the bid of 2.55 percent with a premium of $24 by the same bank for the water system general obligation bond anticipation notes. The second bid for the electric reve- nue notes was 3.75 percent by John Nuveen & Co., Inc. ; other bids for the water system notes were as follows : Bidder Rate (percent) Premium John Nuveen & Co., Inc White, Weld & Co Bank of America Chemical Bank New York Trust Co Morgan Guaranty-Salomon Bros. & Hutzler. First National City Bank 2.74 Control of Processing of Woolen Yard Goods Control was implemented and con- tinued over the processing of woven woolen yard goods by the imposition of quotas to control the flow of such for- eign material through the Virgin Islands into the United States. These controls are maintained by the imposi- tion of a 1-cent-per-yard tax within established quotas and a 65-cent-per- yard tax on the excess over the said quotas. Quotas are assigned for a calendar year. The following is a record of quotas from the commencement of con- trol in 1963, with a record of shipments within the quota: Classification The unused portions of quotas each company received by category allotted for calendar year 1966 were follows: carried over into 1967. Total yardage Shower proof woolen cloth : Total quota allowed this year 1^ 845, 000 Less 10 percent allowed this year _ 184, 500 Net this year 1, 660, 500 1966 carryover 596, 123 Total 2, 256, 623 Company apportionment: Vitex Manufacturing Co., Ltd 1, 084, 915 1966 carryover 596, 123 Net this year 1, 681, 038 Kent Co., Inc 575, 585 Total (including carryover) 2, 256, 623 Knitted worsted and/or woolen cloth: Total quota allowed this year 935, 000 Less 10 percent reserve —93, 500 Net this year 841, 500 1966 carryover 200, 000 Total (including carryover) 1, 041, 500 Company apportiormaent : Buccaneer Mills, Inc 841, 500 1966 carryover 200, 000 Total (including carryover) 1, 041, 500 Woven and/or dyed and finished woolen cloth : Total quota allowed this year 120, 000 Less 10 percent reserve — 12, 000 Net this year 108, 000 1966 carryover 120, 000 Total (including carryover) 228, 000 Company apportionment: Amity International, Inc 108, 000 1966 carryover 120, 000 Total (including carryover) 228, 000 Thermal laminated and adhesive bonded woolen yard goods : Total quota allowed this year 100, 000 Less 10 percent reserve — 10, 000 Net this year 90, 000 Company apportionment: Unassigned 90, 000 33 The Law Act No. 971 (bill No. 1869), Fifth Legislature of the Virgin Islands of the United States, Regular Session, 1963, to impose certain production taxes and for other purposes, became effective on March 25, 1963, the date of its approval by the Governor of the Virgin Islands. It enacted a new chap- ter 9 entitled "Production Taxes" to part 1, subtitle 1, title 33, Virgin Islands Code. It was amended by act No. 1080 (bill No. 2054) approved February 20, 1964. Section 504, sub- sections (a), (b), (d), and (e) as amended are as follows : (a) The Governor shall determine, after due investigation, the maximum amount of woolen yard goods production in the Virgin Islands which is consistent with the pro- tection of the economic stability and com- mercial relations of the Virgin Islands. Due notice shall be given and interested parties shall be afforded an opportunity to present comments and information at a public hearing. In making any determination or determinations under this section, the Gov- ernor shall take into account, among other relevant factors, the benefit or detrement resulting from the applicability of the pro- visions of Section 301 of the TariflF Act of 1930, as amended, to Virgin Islands prod- ucts, including problems of the type which led to expressions of concern on the floor of the 87 th Conggress over possible abuse and excessive use of said provisions. (b) Upon the proclamation by the Gov- ernor of any determination or determina- tions made pursuant to subsection (a) of this section, the rate of tax imposed by this chapter shall be 1 cent per yard upon the amount of woolen yard goods production set forth in such determination or determina- tions to be consistent with the economic sta- bility and commercial relations of the Virgin Islands; and the rate of tax in the excess of such amount shall be 65 cents per yard. (d) In carrying out the provisions of this chapter, the Governor shall have authority to make such classifications of woolen yard goods as he may determine appropriate for purposes of this chapter, and may prescribe different maximum amounts for different classifications. (e) The Governor shall have author- ity to determine the periods to be covered in granting applications, and may determine what applications shall be granted in whole or in part for a calendar year or for a period smaller than a calendar year. He may pre- scribe for renewal of applications in whole or in part. The Hearing Board The ad hoc hearing board, set up pursuant to section 504(a) of title 33, Virgin Islands Code, for the purpose of recommending to the Governor quotas to be established for woolen yard goods in the various classifications, was reconvened and reorganized by Gov- ernor Paiewonsky due to the death of Morris F. deCastro, its chairman. The new members are: Dr. A. J. Prender- gast, Chairman, Myer Feldman, Oscar Gass, and Reuben Wheatley. On June 3, 1966, the board issued a notice of public hearing to be held at Government House in Charlotte Amalie, St. Thomas, Virgin Islands on June 11, 1966. The hearing was duly held on that date, at which representatives of Buc- caneer Mills, Inc., Kent Co., Inc., Virgin Islands Textile Processing Corp., and Vitex Manufacturing Co., Ltd., all of the Virgin Islands, ap- peared and testified. The report of the hearing board dated Novembr 9, 1966 is quoted in full: The Honorable Ralph M. Paiewonsky Governor of the Virgin Islands Charlotte Amalie St. Thomas, Virgin Islands Dear Governor Paiewonsky: On Sat- urday, June 11, 1966, the ad hoc hearing board on production taxes imposed on woolen yard goods by chapter 9, title 33, of the Virgin Islands Code, met to hear testi- mony on applications concerning the dis- tribution of woolen quotas for 1967. The members of the hearing board con- sisted of myself, as chairman, Myer Feld- man, Oscar Gass, and Reuben Wheatley. Four companies were heard from, and the board met in executive session directly after the public hearing. After some discussion, certain recom- mendations were unanimously agreed upon. However, subsequent to the meeting and prior to the submission of these recom- mendations to you. Amity Fabrics, Inc., sub- mitted letters and a legal brief (exhibit 5) stating what the ad hoc committee believed 34 to be good and sufficient reasons for their inclusion in the quota distribution. There- fore, the board was reconvened and took into consideration this new request. We are therefore recommending to you the following: A. GENERAL RECOMMENDATIONS 1. That the overall quota for the Virgin Islands woolen yard-goods industry for the calendar year 1967 should be fixed at a total figure of 3 million linear yards. 2. That the unused portion of quotas al- lotted to companies for calendar year 1966 be carried over into 1967. B. SPECIFIC RECOMMENDATIONS BY CATEGORY 1 . Showerproof woolen cloth : The board recommends that a quantity of 1,845,000 linear yards be made subject to the tax of 1 cent per yard for the period January 1, 1 967-December 31, 1967. 2. Knitted worsted and/or woolen cloth, including cloth knitted from a blend of wool and other fibers: The board recommends that a quantity of 935,000 linear yards be made subject to the tax of 1 cent per yard for the period January 1, 1967—Decem- ber 31, 1967. 3. Thermal laminated and adhesive bonded woolen yard goods : The board rec- ommends that a quantity of 100,000 linear yards be made subject to the tax of 1 cent per yard for the period January 1, 1967— December 31, 1967. 4. Woven and/or dyed and finished woolen cloth: The board recommends that a quantity of 120,000 linear yards be made subject to the tax of 1 cent per yard for the period January 1, 1 967-December 31, 1967. You will note that the above represents no departure from the previous year allot- ment of quotas and it is the intention of the board that this be so. Sincerely yours, A. J. Prendergast, Chairman. 35 Control of Manufacture of Watches On November 10, 1966, Congress passed Public Law 89-805 which es- tablished a limitation on the number of watches and watch movements con- taining foreign components which may be imported duty-free from the United States and insular territories. Responsibility for issuing shipping permits to watch companies in the Vir- gin Islands against licenses issued by the Federal Government is delegated to the Governor of the Virgin Islands who in turn delegates this function to the Commissioner of Commerce. It is presently administered by the Division of Trade and Industry. Responsibility for setting manufacturing quotas for Virgin Islands watch firms rests with the Secretary of the Interior and the U.S. Department of Commerce. The first watch assembly plants were established in the Virgin Islands in 1959. The assembling of watches with parts of foreign origin for duty-free shipment to the United States rose from 5,000 units in 1959 to a volume in ex- cess of 4,500,000 units. Apparently concerned over this tremendous in- crease in watch production, a number of Congressmen introduced H.R. 8436 in the House of Representatives in May 1965, to exclude from duty-free treat- ment all imports of watches and watch movements produced in the territories. The government of the Virgin Is- lands also recognized the need for the watch assembly industry here to re- main within the confines of a legitimate operation in the interests of economic development. It was desirous of pre- venting the operations from becoming primarily a means of employing the duty-exemption privilege as a tarifT- avoidance vehicle to the detriment of the U.S. watch industry. In order to satisfy this concern and at the same time save this important Virgin Islands industry, the Virgin Islands govern- ment enacted legislation designed to limit local watch assembly for export to the United States. Quotas were allo- cated to the firms on the basis of a for- mula which gave two-thirds of the weight to that portion of the payroll subject to social security taxation and one-third to prior production over a 6- month base period. Consequently, H.R. 8436 was thereafter amended to only exclude from duty-free treatment, im- ports of watches from insular territories other than the Virgin Islands. How- ever, before any legislation on this sub- ject was finally enacted, the Virgin Islands statute and a subsequent local statute were both declared invalid by the Federal District Court for the Virgin Islands. The Senate of the United States then took action to pass Public Law 89-805, which was an amended version of H.R. 8436, and this law imposed an overall quota for duty-free entry of watches 36 and watch movements assembled in the three insular territories equal for each calendar year to one-ninth of to- tal watch consumption in the United States during the previous calendar year. The Tariff Commission was as- signed the responsibility of determin- ing on or before April 1 of each year the consumption of watches in the United States during the preceding calendar year. Moreover, the statute expressly al- locates 87.5 percent of the total quota to producers in the Virgin Islands, 8.33 percent to producers in Guam, and 4.17 percent to producers in American Samoa. The Secretaries of the Interior and the Department of Commerce, as- signed responsibility for setting quotas, have devised formulas for allocation based upon the amount of local labor involved and upon other factors. The first interim quota was estab- lished for the period January 1, 1967, to February 28, 1967, for the 16 watch firms located in the Virgin Islands. These interim allocations represented approximately 50 percent of the esti- mated total allocations for calendar year 1967, without adjustments, to re- flect the number of watches and watch movements shipped into the Customs territory of the United States between January 1, 1967, and February 28, 1967. A Federal Commerce-Interior audit team visited the Virgin Islands on April 2 1 to audit the books of the watch companies in St. Croix and St. Thomas. The Assistant Commissioner of Trade and Industry held a briefing session with the team in Christiansted on April 24. Subsequently, in June 1967, final quotas were allocated to the watch industry for the 6-month pe- riod ending December 31, 1967. The total watch quota for the Virgin Islands during 1967 was 3,773,886 units. 37 Office of Public Relations and Information Personnel: 10 The Office of Public Relations and Information is responsible for pub- licizing the Virgin Islands on the U.S. mainland and in other countries, and for public relations activities in connection with the Office of the Governor. Its responsibilities include the prep- aration of news, feature articles, and photographs for release on the main- land by the islands' public relations agency there, and the dissemination of news, pictures, and information about the Executive Branch of the Virgin Islands government to local and main- land-based media. Additionally, the Office provides assistance and information to visiting editors, writers, and photographers as well as to important visiting dignitaries from the United States and other countries. Assistance is also given to the Governor's office in the preparation of reports, speeches, and required information. The mainland office, in addition to serving the needs of the islands' public relations efforts, also serves the many Capitol Hill and Washington depart- mental needs of the Virgin Islands government. During the fiscal year, the Public Relations and Information Office played an integral part in the planning Operating Appropriation: $163,540 and execution of activities of the Vir- gin Islands semicentennial celebration. The Director served as the Executive Director for the Semicentennial Com- mission. Publicity covering the 10-day festival was widespread. Guests in- cluded Secretary of the Interior Stew- art Udall, Ambassador to the United States from Denmark, Torben Ronne, and many other civilian and military dignitaries. In connection with the 50th anni- versary year, the public relations office cooperated with the public relations consultants on the mainland in pro- ducing and publishing an official anniversary magazine, "Your Virgin Islands." It has been widely and favorably received. The office also has been directly involved in planning for the National Governors' Conference to be held in the Virgin Islands early in the new fiscal year. More than 160 national news media representatives and pho- tographers, including all of the Nation's major networks and wire services, will cover the conference aboard the S.S. Independence and in the Virgin Islands. It is expected that millions of dollars worth of publicity will be received from this one event alone. Over 400 news releases and 350 news 38 photographs were distributed to the islands' news media and to individuals and agencies on the oflf-islands mailing list during the year. In addition, articles about the islands appeared in such ma- jor magazinues as Holiday, Bride's Magazine, Time, Newsweek, Made- moiselle, Better Homes and Gardens, Glamour, Sports Afield, and Popular Photography. King Features syndi- cated four full picture pages about the islands to over 1 ,600 daily newspapers, and thousands of articles appeared in major market newspapers throughout the country. The Islands were featured on two different occasions on the nationwide "Today Show" produced by NBC, and the other major networks also carried spot features about island personalities. The Office assisted the producers of "The Wonderful World of Golf" tele- vision series in filming a show at Foun- tain Valley Golf Course for viewing early in the new fiscal year, and the Director and members of the staff" worked closely throughout a 2-month period with a writer and photographer from the National Geographic Maga- zine on an article to appear in January of next year. Throughout the year, the islands were honored with visits from many newsworthy persons. Mrs. Lyndon Johnson and Vice President Hubert H. Humphrey headed the list of famous people who came to vacation. Forty- six prominent travel writers and editors arrived aboard cruise ships, and their visit resulted in more than 20 major articles about the Virgin Islands. In addition, 72 working press visitors came throughout the 12-month period and were escorted and assisted by the Office staflf. Once again this year, the combined eflForts of the on-islands and mainland offices resulted in well over $2 million in newspage/magazine page coverage, based upon per column inch median costs if purchasable as paid advertising space. Readership-viewership circula- tion is estimated at more than 200 mil- lion persons. The volume and impact of all of this free promotional material is reflected in the ever-increasing num- ber of tourists who visit the islands each year. 39 Office of The Government Secretary Personnel: 64 The activities of the Office of the Government Secretary during the fiscal year continued to reflect the impact of economic progress and development in the Virgin Islands. Corporations As of June 30, 1967, a total of 1,282 corporations was registered in the Vir- gin Islands. Of this number, 227 are Operating Appropriation: $381,150 new and were authorized to do busi- ness during fiscal year 1967. Of these new corporations, 189 are domestic, 22 foreign, and 16 nonprofit. A total of 168 domestic corporations was dissolved for various reasons, the most prominent of which was nonpay- ment of franchise taxes. A statistical view of corporate activ- ity for preceding fiscal years is reflected in the following tables: COMPARATIVE CHART—NUMBER OF CORPORATIONS COMPARATIVE TABLE—FRANCHISE TAXES AND CORPORATE FEES 1963 1964 1965 1966 1967 Filing fees $13,179 $15,196 $14,561 $18,295 $14,854.5 Franchise taxes, including penalties . 38,098 35,770 36,288 36,500 56,370.950 Licensing of Businesses and Occupations At the end of fiscal year 1967, 4,308 licenses had been issued, as compared with 3,852 for the previous year. Fees collected totaled $161,779.50. While a higher figure of $186,429.00 was col- lected during the previous year, that total included fees for which licenses were not issued until fiscal year 1967. The following charts show a com- parison of licenses issued and fees collected over the past 5 years : LICENSES ISSUED AND FEES COLLECTED 1963 District Li- censes Fees 1964 Li- censes Fees 1965 Li- censes Fees St. Thomas and St. John 1,716 $101,592 2,010 $117,421 2,115 $130,781 St. Croix 1,034 39,176 1,486 32,811 1,620 42,084 Total 2,750 140,768 3,496 150,232 3,735 172,865 1966 1967 Licenses Fees Licenses Fees St. Thomas and St. John St. Croix REGISTRATIONS AND FEES COLLECTED COMPARATIVE ANALYSIS OF FEES COLLECTED FOR INSURANCE ACTIVITIES 1963 1964 1965 1966 1967 Certificates of authority $3, 188 Agents licenses 3, 068 Brokers licenses Solicitors licenses 828 Gross premium taxes 15, 015 Filing annual statements 167 Filing power of attorney 90 Sale of insurance laws 44 Total 22,400 $2, 748 DENATURED ALCOHOL PRODUCED (Wine-gallons) i 1962 1963 1964 1965 1966 V.I. Rum Industries, Ltd 2, 863 4, 370 3, 018 5, 895 4, 900 1 Wine-gallon—A U.S. gallon of liquid measure equivalent to the volume of 231 cubic inches. Gauging Manual, U.S. Treasury Department. DENATURED ALCOHOL USED IN THE MANUFACTURE OF PERFUME, BAY RUM, AND TOILET WATER (Wine-gallons) 1962 1963 1964 1965 1966 West Indies Bay Co 8, 759 10, 398 13, 894 17, 920 23, 870 Virgin Islands Bay Rum Manufacturing Co. 2, 861 4, 368 3, 019 5, 720 4, 900 Virgin Islands Perfume Corp 147 369 223 Huntley, Ltd 572 803 275 6, 160 Total, wine-gallons 1 1, 620 15, 338 17, 863 24, 284 35, 153 Motor vessel inspections of imported alcoholic beverages conducted in order to determine compliance with Virgin Islands labeling regulations w^ere as follows : Year of inspection : 1963 1964 1965 erly identified and plotted on the tax 095.81, as compared to $1,830,418.52 maps and proper boundary lines iden- in 1965, and $962,997.60 in 1964. tified. Also, previously unidentifiable The following charts reflect the con- properties were located and plotted on tinning progress being made toward the maps. the realization of a workable, stand- Real property tax bills for the calen- ardized, and equitable system of real dar year 1966 amounted to $2,077,- property assessment and taxation : 45 282-348 O—68 4 H xn Q < >< O U H in in< OXH H i/5 CC X!<H P < %m xn < <HOH o .2 o ^ < S o c 15 X CD m CO o CO r^ 00 lO G1 CO •* CTl '^ CT) CM t^ -^ O^ * O —" cm" I~-^ (m" O" t""-" CO (T) CT) ^ CO f^ lO CO t^ CT> CO O '^ CO O CD yD — ' CO' CO <^ t^ CM CO O -rt* lO O O O o t^ CO CO cr> t£> CO ai o * lO -^ r>r co" t^ ctT lo" co" ^ lo (D t^ m CO ^^ —I CO cr> cT) CO t-~ CM cTi r^ c~> CO CO to -^ lO o CO (o o r^ —'" cm" cm" cm" co" •*" CM en O t^ CT> to t^ CM CM cm O lO CM CO CM -^ O CM *" —r o" cm" to" o" CO oi o * CO ^ t^ t~» CT) O CT) * O —1 CM 0~) t^ CO f^ CO -^ CO CM O t^ CO to CM t^ lO —" to" t"^" -*" o" o" * -^ '^ 05 CO CM f^ CO O CO CO CO CO in 05 CM o CO O lO t^ CM CM CO CO CO to r^ ^< :^ —<"—T cs co" Lo" to" — CM CO * lo to to to to to to to (71 Ol en CD ijl CTi 46 DETAILED CHART OF ASSESSMENTS AND TAXES INCLUDING HOMESTEAD EXEMPTION Island and year Number of bills issued Assessments Taxes St. Thomas: 1961.... 1962. . .. 1963. . . . 1964. ... 1965 1966. ... St. Croix: 1961.... 1962. .. . 1963 1964 1965 1966 St. John: 1961. ... 1962 1963 1964 1965 1966 5, 5, 6, 6, 7, 8, elude fees collected by the Department of Public Works for attestations and measure briefs. A comparative analysis of documents recorded and charges assessed over the past 5 fiscal years follows: Documents 1963 1964 1965 1966 1967 Deeds Mortgages Chattel mortgages Conditional sales and contract . Cancellation and releases Contracts Bills of sale Leases Liens Adjudications Easements .• . . Death certificates Assignments Trust receipts Promissory notes Financing statements Miscellaneous Certificate of Purchase Certificate of redemption Total 547 Documents 1963 1964 1965 1966 1967 Deeds Mortgages Chattel mortgages Conditional sales and contract Cancelhition and releases Leases Liens Easements Adjudications Death certificates Assignments Trust receipts Certificates of attachments Attachments Financing statements Continuation, termination statements . Assignment and release Miscellaneous Total 718 Of the total amount collected for the fiscal year 1967, $132 represented fees collected in the last days of the fiscal period, passports for which will not be processed until early July 1967, thereby carrying them over into the 1968 fiscal year. Notaries Public Act No. 1954, approved May 4, 1967, increased from 60 to 100 the number of notaries public commissions authorized for the Virgin Islands, of which 96 are subscribed. This act also provided that the executive secretary of the legislature be appointed as a notary public ex-officio. To enhance public convenience and provide ready information for those interested in obtaining commissions as a notary public, printed information sheets setting forth the requirements embodied in the Virgin Islands Code were prepared and are being dis- tributed to new applicants along with an affidavit which must be executed by them. Ministerial Licenses There were 20 letters of authority granted to ministers during fiscal year 1967. Such letters permit these indivi- duals to perform civil-religious cere- monies in the islands. The following table reflects the num- ber of such letters issued during the last 5 fiscal years: 1963 tion, and First National City Bank. The provisions of the National Bank Act as adopted by the Congress (12 U.S.C. sec. 21 et seq.) exclude three of the above-mentioned institutions from the supervision of the Banking Board of the Virgin Islands in that they are national banks. No action was taken during the period covered by this report to activate the application of the Caribbean Bank & Trust Corp. mentioned in previous reports as pending. During fiscal year 1967, the bank- ing board completed a proposed new banking code embodying an overall revision of the banking laws of the Virgin Islands. The final draft was developed through open and executive meetings of the banking board, cor- respondence and conference with all members of the banking community including the national banks, and close consultation with the Ofhce of the Attorney General. New chapters and sections are to provide for, among other things, the regulation of small loan companies and pawnbrokers; savings and loan asso- ciations; the powers of domestic cor- porations provided by title 13; and provisions to guard against unauthor- ized disclosure of information by bank personnel. This draft legislation is now before the Governor for his review prior to its submission to the legislature. The following comparative table re- flects the growth of the banking indus- try of the Virgin Islands for the past 5 fiscal years. The 1963-64 figures in- clude the activities of four banks and the savings and loan association. The 1965 figures represent the activities of only the four banks established at that time. The figures for 1966 represent activities of five banks and the savings and loan association; and for 1967 six banks and the savings and loan association. 51 &H — — CV Ol Tf lO t^ f^ —1 •^ CO CO r^ i£> CM <>4 t^ CO t^ CO - o o CO CM cr> * CM CT) csri^'CTrt-"" CO CD oi in CO lO * CO IT) t^ CO CM CO CO —' CT) O to CM r^ irT —<"'*"—'" r^ CD * CO O ^ * CTi cr> CO CM o CO CM CO t^ . r» CO — CT) LO CM CM CO CO — LO CM t^ — — CO CO -^ lO lO r^ O CTi CO —r ci" lo"m -* CO O CO * CT) o in LO O <Oi CM —< CO CM ©D en of Lo" co" CO O CO CO ^ CO CO en O — ' — ' LO CO in -H CO CM o CD —< CO t}< o CMCo^cM^in"— r CO O CO CM CM t>. 01 CM CT> t^ O CO O CT) t^ 0~> — I CT) (Oi CO —c -^ (D CO t~» cD^o'crTtD^co'" Ln r^ -"f ID CO O CM — I r^ CT) "O.I C be Kj Sex o o bo M 5 ^ > nj O Oh O b5 « en en C C .a .ti n3 t^ en M ofl efl 00'^'^ Q. CL en CO O 5j bJD bo en en > '> be be kS 03 '^'^ ^ ^ en en O O n3 c« ^J jj C C ^ ^ ca ^ V V B ez^ 3 3 ^^QQ O 52 Department of Education Personnel: 908 Operating Appropriation: $7,287,929 Major strides were made in the field of education in the Virgin Islands dur- ing the fiscal year. Of inestimable importance in its achievements were the contributions made under the Elementary and Secondary School Act of 1965, the Office of Economic Oppor- tunity and other Federal and local agencies. Funds made available from these sources were responsible for the implementation of several innovative educational enterprises and exemplary pilot programs; for curriculum devel- opment and for the improvement in the quality of education. The development of a corp of highly trained teachers was one of the primary goals of the department. This aim, however, was impeded by problems in recruitment and retention of teaching personnel. This has been the first year in which die director of personnel services functioned and some improve- ment was seen in the area of teacher turnover. The director conducted re- cruitment in the United States, per- sonally and by mail, and was able to find replacements for most teachers who had resigned. With the acquisi- tion of more equipment and supplies plus better salaries, it is anticipated that teachers now being hired will be inclined to spend 2 or more years in the local system. The Tutu Elementary School on St. Thomas, one of the three new educational facilities completed during the year in the islands. 53 $159,015 C. TOTAL OPERATING FUNDS AVAILABLE—FISCAL YEAR 1967 Source Amount Percent Virgin Islands appropriated funds $7, 287, 929 Federal aid funds and grants 1, 352, 249 Grand total 8, 640, 178 Total expenditures for the Department of Education activities, related services, and capital outlay 13, 415, 178 84.00 16.00 100.00 D. 5-YEAR COMPARISON OF TOTAL OPERATING BUDGET Year Local funds Federal funds Total 1962-63 $3, 154, 328 $323, 971 $3, 478, 299 1963-64 3, 856, 974 370, 225 4, 227, 199 1964-65 4, 689, 633 419, 466 5, 109, 099 1965-66 5,722,885 1,449,583 7,172,468 1966-67 7, 287, 929 1, 352, 249 8, 640, 178 School Enrollment Total enrollment in public schools increased from 10,254 to 10,594. Total in nonpublic schools increased from 4,012 to 4,546. The following tables show the figures for the past 5 years: Public 1962-63 1963-64 1964-65 1965-66 1966-67 Kindergarten 545 Grades 1 through 6 and ungraded .... 5, 036 Grades 7 through 12 2, 573 Total 8,204 Total 3,213 564 commented favorably on the results of this program. In science, the super- visor assisted in planning and coor- dinating the 2-week visit of the Na- tional Aeronautics and Space Adminis- tration to the islands. This program was satisfactorily presented to 4,700 school- children. Adults received the presenta- tion in the form of teacher-in-service, television, and radio programs. The space demonstration was given to pri- vate, parochial schools, and to the College of the Virgin Islands. During the year, considerable teacher interest in aquariums and terrariums was manifested. Under ESEA (Elementary and Sec- ondary Education Act), the Virgin Islands received a grant of $537,981, under title I, which was used for sev- eral pilot programs. One project, in- volving 18 classrooms, centered around audio-lingual reading. This, essentially, is a method by which children are taught individually while in a group seated around a console with head- phones. A summary program centered around cultural enrichment, with areas of concentration on communication skills, arts and crafts, physical educa- tion, and marine biology. Emphasis was on listening, speaking, and play pro- duction. Carefully selected books, rec- ords, and other materials contributed to the success of the program. Approxi- mately 2,000 children from grades one through 12 participated in these pro- grams on the three islands. Funds from title II of ESEA which provided library resources for all teachers and children, amounted to $32,000 to the islands. This sum, approximately $3 per stu- dent, was spent for library books, 16 mm. and 8 mm. films, records, tapes, and other printed instructional mate- rials. Under title III, a grant of $33,- 917 was received to plan an educational and cultural center. This center is en- visioned as the primary creative force in elementary and secondary educa- tion in the islands. The project was officially approved on June 30, 1967. Under funds allotted by the Office of Economic Opportunity, the Depart- ment conducted 27 classes in the Head- start program. Of this number, only four shared facilities with kindergarten. An institute to help train all Headstart teachers was conducted by Social Edu- cational Research and Development, Inc. Plans were also made to send the teachers for training to Wheelock College, Boston, during the summer months. Curriculum and Instruction This division experienced a produc- tive year of educational activities. All of these activities were directed toward the improvement of the curriculum and the learning experiences of chil- dren and youth, the improvement of the physical environment, and the professional growth of instructional personnel. In the elementary system, the Grove Place School was made a demonstra- tion school with a special coordinator assigned by New York University. The nongraded primary program at Lock- hart Elementary School proceeded as planned. Physical education teachers were assigned to grades four to six. Plans called for an expansion of this program to include grades kindergar- ten 3, with health instruction to be given by the classroom teacher. The Headstart program was carried through on all islands and audio-lin- gual reading projects conducted in St. Croix and St. Thomas. Teacher aides, electronic language laboratories, ad- ditional library books, and audiovisual equipment were made available through Federal funds (refer to Fed- eral aid programs above) . Scheduled were summer programs in remedial reading for children and NDEA sum- 56 mer institutes for teachers at the Col- lege of the Virgin Islands. In secondary education, the well- known educational core program was introduced into three junior high schools after a year of planning, ori- entation of teachers, and final accept- ance by the board of education. On March 30, 1967 the Wayne N. Aspin- all Junior High School in St. Thomas was dedicated. The art and music de- partments made commendable contri- butions to the semicentennial celebra- tions on all three islands ; to the annual carnival in St. Thomas and Christmas festival in St. Croix; and at the music and art festival in St. Croix. A band booster club—similar to that of St. Croix which has functioned efficiently for many years—was begun in St. Thomas. Important additions to the secon- dary staff were school nurses to Chris- tiansted High and Junior High Schools and the Wayne Aspinall Junior High School. For the second full year, adult education was conducted from grades 1 through 12, and approximately 275 persons were enrolled in 17 classes of adult basic education which extends through grade 8. Vocational Education Vocational and industrial arts courses were offered at the following schools during the school year : Wayne N. Aspinall Junior High School, and Charlotte Amalie High School, St. Thomas; Julius E. Sprauve School, St. John; and Christiansted Senior and Junior High Schools, and Claude O. Markoe School, St. Croix. The Wayne N. Aspinall Junior High School under construction at Crown Bay, St. Thomas. The school, constructed on reclaimed land, admitted its first class in Septem- ber 1967. 57 In St. Thomas and St. John 492 stu- dents were enrolled in industrial arts, with 423 in home economics. Business Education, automotive mechanics, and electricity totaled 64, 48, and 36, re- spectively. In St. Croix, industrial arts ranked third, with 118 students. Busi- ness education had the greatest number of enrollees with 402 students, followed by home economics with 145. Courses in electronics and horticulture were offered for the first time in St. Croix. In addition to the vocational educa- tion programs, this Division is respon- sible for the administration of man- power development and training pro- grams. Approval was secured from the Washington office for six training proj- ects which will commence the begin ning of the next fiscal year. A keypunch operator course was initiated in St. Thomas and was successful. Seven trainees completed the course and were immediately absorbed by local govern- ment agencies and private enterprise. In cooperation with the Virgin Is- lands Employment Security Agency, this division was instrumental in initi- ating several X-projects such as diesel mechanics, office machine mainte- nance, and arc welding. A 30-hour evening course for nonlicensed electri- cians preparing to take licensing exam- inations was conducted at Charlotte Amalie High School. Conducted in St. Thomas and St. Croix were 1-day workshops for office occupations instructors ; in-service training courses of 30 hours for school lunch workers and classes in practical nursing for out-of-school youth and adults. The vocational education State of- fice continued to work closely with other government agencies who are connected with placement of dropouts and graduates of the vocational educa- tion program. Some of these agencies were: Employment Security Agency, the Department of Labor through its Bureau of Apprenticeship and Train- ing, the Chamber of Commerce, the Planning Board, the Department of Health and the Department of Social Welfare. Bureau of Educational Research This section prepared the annual "Directory of the Public, Private, and Parochial Schools of the Virgin Is- lands," the "Biennial Report, State Elementary and Secondary Schools, 1965-66"; the "Fall Survey of Enroll- ment, Teachers and School Housing, and Estimated Expenditures and Salary Date for the Virgin Islands, 1966-67." The last two reports were sent to the Office of Education, Washington, D.C. The bureau prepared the material on Virgin Islands "Educational Policy, Legislation, and Administration," for chapter V of the "World Survey of Ed- ucation," to be published by UNESCO. The first volume of biographies of fa- mous and important Virgin Islanders of the past, written on about fourth grade level is expected to be available before the end of the calendar year. The bureau also completed for the Council of Chief State School Officers, "Development of the Virgin Islands State Department of Education, 1900-65." Bureau of Pupil Personnel Services The bureau strived to help each pupil develop his maximum potential. Guidance, counseling, and testing services were provided by nine coun- selors, several assistants, and the director. On the elementary level, 7,254 tests were administered to public school pupils and 892 nonpublic school students. On the secondary level, 5,148 and 813 tests were administered to public and nonpublic school students. 58 respectively. Physical and dental ex- aminations were performed for approx- imately 89 percent of the senior students at Charlotte Amalie High School and 60 percent of those at Christiansted High School. At the time of examination, vaccination and im- munization against diphtheria, tetanus, and polio were given. In the Division of Mental Health 67 cases were re- ferred to the school psychologist—53 from public elementary schools and 14 from secondary schools. High school equivalency tests were taken by 177 adults during the year and high school equivalent certificates were issued to seven veterans based on scores made in the Armed Forces Institute. The Board of Education approved 153 scholarship applications, recommended by the bureau which also administers the ter- ritorial scholarship program. Pupil Transportation It was necessary to adjust schoolbus schedules to accommodate split-day sessions in the public high schools in St. Thomas and in St. Croix. This ac- tion, along with relocation of the Country Day School in St. Croix, and ultimately the shifting of certain classes of the Christiansted Elementary School to the Hess Oil site, resulted in a sub- stantial increase in bus operations, both in the number of daily trip require- ments and in the number of pupils to be accommodated. Comparative data are shown below : NUMBER OF PUPILS TRANSPORTED NUMBER OF BUS TRIPS OPERATING DAILY School Lunch Program The program, vital to the develop- ment of sound nutritional eating habits in our schoolchildren, is operated on a shared responsibility basis and admin- istered by Federal and local govern- ment agencies. The operation involved 33 facilities and provided a well-balanced type A lunch daily to 9,482 students in kinder- garten, elementary, and high school. Headstart, VISTA, and title I projects were also included in the program. One hundred and fifty-seven food- service workers, including cooks, kitchen managers, and an administra- tive staff of nine, were involved in the program. Working as a team they served 1,584,919 type A lunches through 33 kitchens. There was a total of 116 full admin- istrative reviews and 47 partial reviews at St. Thomas, St. Croix, and St. John. The overall insular appropriation for fiscal 1966-67 was $631,704, and the Federal grant was $1 18,208. Seven enrollees from the Neighbor- hood Youth Corps were given food- service training and one was assigned to office training. Bureau of Public Libraries The bureau, under the Department of Education, includes a main library in St. Thomas with a part-time branch in Frenchtown, and full-time branches in Cruz Bay, St. John, Christiansted, St. Croix, and Frederiksted, St. Croix. Recently the libraries in St. Coix ex- tended their hours of services from 9 a.m. to 9 p.m., a schedule equal to that of the main library in St. Thomas. During fiscal 1966-67 library service expenditures totaled $172,004, ap- proximately 2/2 percent of the budget of the Department of Education. The Virgin Islands has received Federal grants since 1956, to which local matching funds were contributed as re- quested by each legislature. This source provided services for bookmobile units in St. Croix, St. John Public Library, Frenchtown Public Library, books and materials, and personal services. Funds earmarked for the restoration of the present Christiansted Public Li- brary Building have been allocated. A State plan for construction under title II was submitted and approved and funds have been received, matched, cumulated, and reserved for this pur- pose, totaling $77,362. Major achievement of the bureau was its participation in the establish- ment in March of an instructional materials center, made possible by Fed- eral funds. The center was used by sub- ject supervisors to develop materials needed for workshops and in their gen- eral supervisory duties. Six-week in- structional media workshops were held on St. Croix and St. Thomas for 60 participants. This year's "Books on Ex- hibit" with 4,000 new publications of K-12 books was a success, though many thought the time of the exhibit was too short. Recommendations and general aides were extended to the ESEA title I programs in the selecting, evaluating, and processing of $28,000 of elementary school library books for the public schools. Title I library aides were also given 2 weeks of in-service training in library procedures to im- prove their effectiveness. Two demon- stration workshops were conducted in the selection and utilization of media in the classroom for 60 public and pri- vate school teachers at the College of the Virgin Islands. In addition to providing larger sums for title I in public library service and title II in public library construction, the 89th Congress established authori- zation for three new programs. Title IV-A is designed to encourage the States to establish or improve library services within State institutions, title IV-B seeks to improve library services 60 to physically handicapped persons un- able to read convenient printed materials and title III (interlibrary co- operation) seeks to promote the estab- lishment and maintenance of local, regional, State, or interstate coopera- tion networks of libraries which would assure effective coordination of all types of library services. It is meant to coordinate all federally aided spending in all categories for library service in each State. This is designed to coordi- nate services in order to avoid duplica- tion and ineffectual spending, with a view toward combining efforts and benefits through increased discounts resulting from cooperative buying on statewide level as well as on interstate scale. Details of the activities and pro- grams to be established under title III are now being prepared and will be set forth in the State plan. The quality of library personnel has improved. Two library school grad- uates were employed, others who are also called librarians have at least the bachelor's degree and experience in some phases of library service. Profes- sional standards and general upgrading of all personnel continue to be bureau objectives. Vocational Rehabilitation Vocational rehabilitation services are available to all Virgin islanders who are physically or mentally disabled to such an extent that the disablement constitutes an employment handicap. Handicapped persons receive serv- ices through two offices located in St. Thomas and St. Croix. Federal fund- ing at a ratio of 75-25 percent has been responsible for the major rehabilitation activities. During the fiscal year, 76 handicapped persons were successfully rehabilitated as compared to 58 the previous year. The Virgin Islands placed ninth in rank, by State, in the number of rehabilitations per 100,000 population in 1966. The sheltered workshop in St. Croix, now supported by local funds, accommodates em- ployees who are not expected to move into outside employment, but who are successfully producing saleable items in the workshop setting. In February 1967, a sheltered work- shop for the handicapped was estab- lished in St. Thomas, where eight handicapped persons are being evalu- ated and trained. Plans are in motion to serve at least thirty clients within the workshop for the next 2 years. Three severely handicapped persons were sent to the Institute of Physical Medicine and Rehabilitation in New York where they received treatment, therapy, and training in the activities of daily living. 282-348 O—68- 61 College of the Virgin Islands Personnel: Teaching Faculty: 32 Administrative Faculty: 18 Other Staff: 49 Operating Appropriation: $934,477 Growth in Enrollment The College of the Virgin Islands continued to have a high rate of growth during fiscal year 1967. The fall enrollment of full-time students numbered 229, an increase of 79 per- cent from last year's enrollment; there were 700 enrollees in the division of continuing education, an increase of 1 7 percent; and the full-time equivalency is now 461, a 49-percent increase over the previous academic year. 4-Year Programs The transition of the college to 4- year baccalaureate status was of major concern during this fiscal year. The design of a 4-year curriculum occupied much of the nonteaching time of sev- eral faculty committees appointed by the President. Special Programs The college continued to add to the cultural growth of the community, successfully sponsoring an artists and lecturers series, exhibitions of paintings by local artists, music programs, theat- rical productions, and a film series. The college was host to a reception given by the Governor during the Vir- gin Islands' semicentennial celebration. The college took an active part in aiding the government in demonstrat- ing the facilities and qualifications of the islands to mainland-based agencies evaluating various sites as potential centers of marine research and ocean- ography. It will continue to play an im- portant role in these rapidly expanding fields with the opportunities afTorded to the Virgin Islands by their graphic location and natural resources. Increased responsibility for the ad- ministration of Federal educational and research programs was vested in the college. The Peace Corps, the Bu- reau of Sports Fisheries and Wildlife, the Bureau of Commercial Fisheries, and various offices and agencies of the Department of Health, Education, and Welfare have increased their utiliza- tion of the college's administrative staff and faculty. This is indicated by the fact that during fiscal year 1967 the college was responsible for the fiscal management of over $1,340,000 in Federal funds for various research and educational projects. One of these projects, especially sig- nificant to the islands, is the Upward Bound program, a precollege program for secondary school students. There is 62 a full-time summer Upward Bound program and a followup program dur- ing the school year. The purpose of this program is to motivate high school juniors and seniors who might not otherwise consider a college education possible. Another such activity is the college's cooperation with the Peace Corps training programs on St. Thomas and St. Croix in an eflfort to aid in regional development. Continuing Education The division of continuing education has grown in significance as well as in size. This program allows many adults who previously had no opportunity for higher education to develop their skills and interests by formal education and training. It also has great appeal for the increasing numbers of people who retire and come to live in the U.S. Virgin Islands. Building Program The building plans reported on last fiscal year have been realized with con- struction underway on women's resi- dence halls, a library, and faculty quarters. A nursing building will be the next unit constructed under the college's master building plan. Activities on St. Croix and St. John During this past fiscal year the col- lege assumed full responsibility for the U.S. Department of Agriculture Fed- eral Extension Service. A new director has been recruited, and the service is carrying out livestock, crop, youth, and home economics programs aimed at serving the needs of the U.S. Virgin Islands. The college acquired a long-term lease of property within the Virgin Islands National Park on St. John. A fisheries laboratory is being constructed on this site with Federal and local matching funds under the Federal Accelerated Public Works program. This laboratory will become the prop- erty of the Virgin Islands government and will be operated by the college as a part of its Virgin Islands ecologi- cal research station. Through this medium and through the Caribbean Research Institute, the college mani- fests its interest in the fields of ocean- ography, marine biology, and related sciences. 63 Department of Health Personnel: 804 The state of health and medical care in the Virgin Islands continued to be excellent during the fiscal year. There have been no epidemics or outbreaks of serious illnesses, although two cases of malaria were found in servicemen who has recently returned from Viet- nam. There was a rise in the number of vehicular accidents. A bureau of health insurance and medical assistance was organized Feb- Operating Appropriation: $7,612,764 ruary 1, 1966, to implement the program known as medicare. The Knud-Hansen and Charles Harwood Memorial Hospitals, plus the Ingeborg Nesbitt Clinic were certified as pro- viders. An estimated 29,048 persons have indicated eligibility for medicare, representing 60 percent of the total population. Its augmentation now in- volves a good majority of the popula- tion in medical care programs. Pediatric nurses and aides at the Knud Hansen Memorial Hospital in St. Thomas join their young patients during the recreational period in one of the children's wards. 64 A children and youth program to provide comprehensive health care for the children of the islands, particularly those of low-income families, was in- augurated this year. Unprecedented demand for fast and accurate information has placed new burdens upon the managerial staff. Urgently necessary is the establishment of new administrative techniques to handle additional workloads. More and better trained medical and office personnel has been recruited al- though the department's requirements have not been fully met due to the scarcity of qualified professional men and women. New and appropriate steps have been taken to safeguard our communi- ties from the impending hazards of water and air pollution. New Health Centers Construction of two new medical and public health facilities, one for St. Thomas and one for St. Croix, is to commence in early 1968. Planning is proceeding on schedule and is now in the final stages. Cost of drawings, spec- ifications, and sites thus far amount to $2,068,649.21. Bureau of Vital Records and Statistical Services In accordance with the provisions of the vital statistics law, this bureau per- formed the usual routine services of registration of vital events, the verifi- cation and certification of records, and the collection of reports of baptism, paternity acknowledgments, marriages, divorces, and adoption records. In ad- dition, the bureau conducted a variety of studies for various individuals, agen- cies, and organizations. In contrast to previous years which showed a steady increase in the birth rate, the past fiscal year revealed a de- cline. There were 1,956 live births as opposed to 1,999 in 1965. Of these, 49 percent were born to mothers from the British West Indies. There were 388 deaths, a decline of 29 reported in 1965. Due to the decrease in deaths and the increase in population, the death rate per 1,000 population is now 7.6 per- cent. As in previous years, heart dis- ease is the leading cause of death, totaling 132. The following tables show deaths by age distribution and lead- ing causes : AGE DISTRIBUTION OF DEATHS Years Number Percent Under 1 . . . . 1 to 4 5 to 14 15 to 24 25 to 44 45 to 64 ... . 65 to 74 75 to 84 85 and over . Unknown. . Total. 60 LEADING CAUSES OF INFANT DEATHS [Rate per 1,000 live births] Causes Number Rate Percent of all deaths 1. Prematurity 2. Asphyxia and atelectasis . 3. Ill-defined diseases i 4. Pneumonia (all types) i . All other causes 24 CM * CTi —' CO eo CO —<iOI^COOCNTJ-CO to CT> CO CO •'^ — O O — CO cv to s — .o CO t^ (O LO 05 O O O CO 2 o- Q 1 ^ "ea I— I c3 < OS Q I < B Q « 5 § 3 ! 2 a l-Ho g (^ CO CO l^ CO (O CM CT> t>; t>>' CO CO" O CM r}J CO CO CM -< CO ^ o-^co«ooeot^o !0 CO CM —< CM CM O^ lO <0 t^ — CO CO CO COCOOCTiO—' — CO m CO to tj< t^ tji CT) Oi CO to CM Th to CO t^ CO CM CO — t>^ *'•*' o m' CM to 1^' CO CM •* — — -HCOt^OOCOtO CT) o CO CM in CO t^ O CM CO — < «3 o o i •—I It H 2 l-H O. 1-1 Q O — CO (O to t^ CO eoOOtoocMt^eo ID O CM — CM in t^ CO CM CM CM"*! o in o o o Oir^omocMinCTi „-H tOrf r^ Oi-* oi * in CM CT) u fS U U « t) —H -^ C3 W . C t« 2 V bo S ^ I 'c 1 15 « ^ -I 67 Division of Hospitals and Medical Services From the first of the fiscal year the Knud-Hansen Memorial Hospital con- centrated a major effort toward im- plementing the medicare program. The hospital provided the necessary office space, equipment, and initial clerical assistance to set up the medical assist- ance eligibility unit located in the in- stitution. Impediments in the smooth operation of that program, plus in other areas, have been encountered. One of these lies in the lack of sufficient space. Additionally, because of this primary lack, it is difficult to recruit all the necessary qualified staff. Through renovation, conversion, or elimination of certain functions, pro- visions were made for an admitting office, medical assistance office, pedi- atrics examination room, eye clinic, urology and surgical clinics, the last by relocation. There were 5,647 admissions, 5,612 discharges, and 45,659 total days of care to inpatients. These were all in- creases. Overall deaths of 136 equalled last year's figure, but of this number newborn deaths were reduced from 34 in 1966 to 24 in 1967. There were 1,250 surgical operations of which 609 were major and 641 minor cases. Lab- oratory examinations totaled 74,372. X-ray examinations numbered 13,626. Emergency room visits of 22,959 and hospital outpatient clinic visits (exclud- ing those of public health held in the hospital) of 21,688 also reflected the growth and utilization of facilities and services. Important strides were made in the Charles Harwood Memorial Hospital in St. Croix. A new appointee was named to fill the position of director of health services for St. Croix, with responsibilities to consist of organizing the professional staff, making a survey of equipment needs, and setting up standard procedures. Accordingly, the medical staff was reorganized into serv- ices of surgery, medicine, obstetrics, and pediatrics and a chief of each service plus staff assigned. Committees required by the Joint Commission on Accreditation of Hos- pitals were made fully functional. All necessary steps have been taken to ful- fill requirements for accreditation, and formal request for inspection by the joint commission has been made. A 32-bed addition commenced on May 1, 1967. This will greatly alleviate congestion and provide space for ancillary services such as a modem physiotherapy department and medi- cal library. Due to better diagnostic procedures, an increasing number of tumors have been detected, leading to the formation of a tumor board under the aegis of the American College of Surgeons. Plans have been drawn and are awaiting provision of extra funds for the much needed expansion of the emergency room; approximately 1,000 patients per month are processed therein. A survey was made of equip- ment needs and special funds obtained from the Virgin Islands Legislature to purchase up-to-date equipment. Mod- ern X-ray diagnostic machinery is in the process of being installed. The workload of the hospitals in St. Croix continued to increase in all areas. Charles Harwood Memorial Hospital handled 2,706 admissions, 698 births, 13,275 outpatient clinic visits, and 16,625 emergency room visits. The Ingeborg Nesbitt Clinic handled 771 admissions, 199 births, 6,658 out- patient clinic visits, and 6,414 emer- gency room visits. Division of Public Health The budget of this division increased $1,595,823. Local funds were $806,282. Federal grants increased to $490,869. The matching funds, $298,672. 68 Of major importance was the divi- publication and distribution of "Hori- sion's designation as the Virgin Islands zons in Family Planning." The last is agency for comprehensive health plan- significant evidence of the views held ning, and certification of its home care by the Virgin Islands Department of program to participate in medicare and Health that family planning is an medicaid benefits. important facet of public concern. Among the many highlights of The division's bureau of envi- progress were: The creation of a ronmental sanitation continues to bureau of finance and a bureau of vigorously pursue its program of physical medicine and rehabilitation; eliminating the Aedes aegypti mos- the awards of two public health project quito. The index has been markedly grants consisting of tuberculosis con- reduced, almost to zero, in St. Thomas trol program and comprehensive and St. Croix. It is expected that this immunization project; the develop- disease-carrying insect will be eradi- ment of a cytological examination pro- cated within the year, as it is already gram and the revival of the veneral on St. John. The bureau performed a disease control project. Additionally, major role in the passage of the Vir- activities included the administration gin Islands Water and Air Pollution of a total of 22,696 immunizations of Control Acts and established a pro- DPT, polio, DT, smallpox, and gram for determining water quality measles; demonstration among ap- standards for the coastal waters of the proximately 1 ,000 schoolchildren of islands. Following receipt of a compre- tropical fluoridation by the division's hensive plan for sewerage and its dis- bureau of dental health services with posal in St. Thomas and St. Croix, for cooperation of consultants from the which a contract was let during the Universities of Indiana and Puerto previous fiscal year, it filed applica- Rico; the offering of courses, in con- tions with the Federal Department of junction with the National Communi- Housing and Urban Renewal for cable Disease Center, in community grants for engineering plans. The fol- epidemiology and community action; lowing tables show the type of sewer- the application of procedures for the age used in each of the three towns of control of food-borne diseases; the the Virgin Islands: Charlotte Amalie: Total properties with dwellings 2, 410 Percentage with pits 6. 7 Percentage with nightsoil 22.9 Percentage with septic tanks 3.4 Percentage connected to sewer 65. 5 Percentage using public toilets or with no facilities 2. 4 Percentage with pit or sewer and nightsoil and sewer .9 Christiansted : Total properties with dwellings 736 Percentage with pits 4. 8 Percentage with nightsoil 18. 9 Percentage with septic tanks 3. 4 Percentage connected to sewer 77. 8 Percentage with pit and sewer or nightsoil and sewer 4. 9 Percentage using public toilets or with no facilities Frederiksted : Total properties with dwellings 342 Percentage with pits 8.8 Percentage with septic tanks Percentage with nightsoil .6 Percentage connected to sewer 93. Percentage with pit and sewer or nightsoil and sewer 2. 4 Percentage using public toilets or with no facilities 69 Division of Maternal and Child Health and Crippled Children's Services This division is the agency within the Department of Health that is re- sponsible for planning, promoting, implementing, coordinating, and su- pervising services for maternity pa- tients and children from birth to 21 years. The former involves organiza- tion and/or improvement of prenatal and postnatal clinics; improvement of the standards of obstetrical personnel and facilities; payment for certain aspects of maternity care such as clinical services, as well as hospital services for eligible patients. The latter involves the promotion of health services ; prevention of diseases through health supervision, immunization, guidance and counseling; diagnostic and treatment services including medi- cal, surgical, and rehabilitative needs. The number of visits totaled 18,498. These consisted of 5,996 well child clinics, 5,499 prenatal clinics, 5,859 crippled children clinics, 780 allergy followup, 208 specialized pediatric clinics and 156 medical followup. A measure of success was achieved in the recruitment of personnel. Two pediatricians and two nurses were added to the staff. However, shortage of professional staff still remains acute. In particular, the clinical services of two rural clinics of St. Croix were ad- versely afTected. The problem has been somewhat alleviated by diverting a physician from St. Thomas to St. Croix. Difficulties caused by lack of field nurses to service schools is being abated by the Department of Education which is hiring nursing personnel. Also, with the advent of the comprehensive care program for children and youth, ad- ditional nursing services are being made available. After a long vacancy, the position of chief social worker was filled. Demonstrations were held in well child conferences and group meeting on proper nutrition, the lack of which constitutes a major health problem. Special emphasis was placed on juvenile obesity, diabetes in pregnant women and anemia, which is frequent in Virgin Islands maternity patients. The scope of the speech and hearing clinics maintained by the division was enlarged by the addition of a hearing aid clinic. Potential hearing aid users are evaluated, ear mod impressions made and aids selected, fitted, and maintained. An instructor of pediatric nursing from the University of California was invited to the Virgin Islands to conduct a workshop in pediatric nursing for a 2-week period in St. Thomas and 2 weeks in St. Croix. Changes resulting from these workshops proved the in- vestment to have been worthwhile. Eminent pediatrician. Dr. William Thurman, professor and chairman of the University of Virginia and head of the Children's Rehabilitation Center in Charlottesville, was invited to con- duct clinics in the Virgin Islands. He saw children who may benefit from a rehabilitation program, as offered in most centers, and has offered the facili- ties of Charlottesville's center to chil- dren of the islands. Plans to accommo- date eligible youngsters are in progress. Major achievement of this division was effected when it made applica- tion—and complied with require- ments—for funds available under Pub- lic Law 89-97 for improvement of maternal and child health services. The division developed two projects the maternal and infant care project and the children and youth project. Both were approved by the Children's Bureau of the U.S. Department of Health, Education, and Welfare on March 1, 1967, although only the lat- ter could be funded. The project was 70 allotted $1 million in Federal funds which amounts to 75 percent of the es- timated cost of operations for the first 15 months, to June 30, 1968; the re- maining 25 percent to be matched by the local government. The children and youth project will provide coordinated and comprehen- sive health care to approximately 20,000 Virgin islanders, plus aliens, up to 21 years of age. It will involve a com- bination of health promotion, dental and medical care including casefind- ings, preventive health, diagnostic and treatment services, correction of de- fects and followup. The services will be designed to assure completeness and continuity in the health supervision of each child and will be provided either directly or through coordination with local health, education, and welfare agencies. Project funds will make it possible to employ much needed addi- tional medical, dental and paramedical personnel, and supporting staff to supplement existing facilities, as well as to develop new and adequately equipped facilities including the use of mobile units. It is estimated that while actively supervising the health of these chil- dren and youth, the project can expect to provide additional treatment to 4,000 or 5,000 of these individuals. It will eventually be staflFed with approxi- mately 100 personnel, of which 25 will constitute headquarters staff, the re- maining 75 being almost equally di- vided into district staffs for St. Thomas and St. Croix. Rental space, to be ren- ovated, has been acquired in St. Thomas. In St. Croix land and build- ing structures, donated to the local government for health or education purposes, has been assigned for this project. A manual of proposed program plans for the project has ben written and is now being revised. Steps con- cerning administrational activities are being taken, involving such matters as recruitment, establishing personnel records, payrolling, fiscal management, and staff orientation. Division of Mental Health The division expanded services and therapy techniques, particularly in re- gard to children and youth. A compre- hensive Diagnostic-Evaluation, Train- ing, and Activity Center for mentally retarded children was established, in which 21 youngsters were admitted. A special training program in which art therapy plays a major role was de- veloped. Achievements of this program were particularly dramatic, especially pertaining to children who had been nonverbal or who had had limited vocabularies. Workshops were conducted and psy- chological consultation services were provided for VISTA volunteers as- signed to work with preschool children. Similar assistance was offered to teach- ers of nongraded classes through a series of bimonthly workshops. Mental health personnel also participated in training of public library staff in spe- cial library services to slow learners and mentally retarded children. A psychologist was assigned to the Insular Training School in St. Croix, who conducted psychological evalua- tions in addition to consultation. In the absence of a psychiatrist for the NP ward, clinical staff contributed con- sultative services to the unit on a reg- ular basis. The division assigned to the ministerial association, upon its request, a psychologist to conduct weekly semi- nars at which the churchmen present "problem cases." The seminars also in- clude lectures and discussions on psy- chopathology. A mental health education materials specialist was added to the staff, who 71 composed five booklets and several scripts for radio-TV programs on social adjustment and mental health. Against this background of special- ized programs and activities, the divi- sion continued to handle an ever- increasing workload in clinical services, to include social, psychological, and psychiatric evaluation; individual psy- chotherapy; group psychotherapy for both inpatients and outpatients; fol- lowup and supportive therapy for alcoholics. Arrangements were made with Mc- Gill University for a psychiatrist to spend 9 months in the Virgin Islands collecting data for a report on "The Epidemiology of Mental Illness in the Virgin Islands." A preliminary chapter on the incidence of schizophrenia in the islands has already been submitted to this division. GENERAL COMPARATIVE STATISTICS OF HOSPITALS AND MEDICAL FA- CILITIES OF THE U.S. VIRGIN ISLANDS, FISCAL YEARS 1961 AND 1967 1961 1967 Number of beds 197 231 Number of bassinets 39 41 Total admission 5, 984 10, 014 Total days of care 56, 506 77, 457 Births in hospital 1, 138 2, 087 Deaths in hospital 198 313 Stillbirths in hospital 51 55 Surgical cases 519 1, 722 Emergency room and outpatient visit 46, 680 87, 619 X-ray examination 10, 826 26, 822 Laboratory examination 78, 322 146, 163 Operating expenses MGH/CC programs $276, 877 $660, 897 Operating expenses children and youth project (for 18 months) $1, 500, 000 Planning for new health centers through bid documents $2, 068, 649 Hospital staff: Physicians 29 52 Specialists (included above) 14 25 Nurses 104 156 Practical nurses 42 78 Orderlies 12 35 Dentists 3 8 Pharmacist 2 4 Public health physicians 1 23 Public health nurses 25 72 Bureau of Business Management Major improvement has been evi- dent in the accounting procedures this year. With the assistance of the Depart- ment of Finance, it was possible to maintain subsidiary ledgers for the sev- eral programs of community health operating with Federal grants and local matching funds. The use of program codes for all accounts, other than the health revolving fund, was instituted on July 1, 1966. During the coming year, it is to be expected that efforts at further im- provement will continue. However, the need for additional accounting staff is critical. Recruitment is becoming in- creasing difficult. Because of inade- quate space the staff in St. Thomas is located in widely separated offices. It is hoped that this situation will be erased when new quarters for the the MCH&CC staff becomes available. During the year, some improvement in the procurement of supplies and 72 equipment was evidenced. This was due to the increased use of term con- tracts, the acquisition of additional oxygen tanks, closer check on drugs and medicines with expiration dates, and use of GSA contracts. Because of the continuous problem of getting scheduled deliveries, there is an increas- ing need for adequate storage facilities on both islands, 5,000 square feet in St. Thomas and at least 4,000 square feet in St. Croix. Present demands of the hospitals can justify the employ- ment of a procurement clerk at each hospital to provide the administrators the assistance needed in processing re- quisitions, receiving reports, and all procurement documents. A personnel technician for St. Croix was added to the staff. Along with the personnel technician on St. Thomas, efforts were initiated to co- ordinate all personnel matters in each district through the personnel tech- nicians. The effective development of this program in St. Thomas is hindered by the distant location of the activity away from the records, files, and activity of the Bureau of Business Management. Two major efforts ahead of this activity are the develop- ment of a manual of procedures for the information and guidance of di- vision heads, bureau directors, and employees generally, and the establish- ment and maintenance of a perpetual inventory of employees. This latter project must be programed for elec- tronic data processing. The need for prompt and accurate management information is critical. This need can- not be met with manual tabulation of the employees of the department in- cluding, in addition to the hospitals, community health and administrative staff, the employees of federally sup- ported projects such as Aedes aegypti control, the children and youth project and the Neighborhood Youth Corps program. The provision of operating quarters for the motor pool on St. Croix with a hydraulic hoist became a reality during the year. The supervision of this activ- ity has been greatly improved and some former problems and difficulties have been resolved. Eight new vehicles were acquired during the year. Two vehicles were replaced on St. John. The absence of maintenance service on St. John requires continued service of the vehicles by the mechanics from St. Thomas. Boards and Commissions The Board of Medical Examiners met four times during the fiscal year. Nine candidates took local State board examinations. Five passed and licenses were issued accordingly, and four failed. All funds presently collected from examinations are deposited in the general treasury. This amounts to sev- eral thousands of dollars annually, none of which can be used for dis- charging the responsibilities of the board. It is evident that there is need for direct appropriations enabling the board to transact its business without exacting personal sacrifices from mem- bers and secretarial help. The Board of Nurses Registration and Nursing Education, consisting of five members, conducted four meet- ings. It established minimum require- ments for the associate degree nursing program; surveyed nursing programs in both major islands and revised ap- plication blanks and temporary per- mits. Two licensing examinations were given; 55 licenses were issued to regis- tered nurses, 19 to practical nurses. Ninety-five applications were proc- essed. There were 197 renewal regis- trations; 162 in St. Thomas, 105 in 73 St. Croix, and 52 out of State. Fees for licenses and renewals totaled $1,385. The Board of Dental Examiners held four meetings. It agreed to recom- mend an addition to its bylaws and to waive the written portion of the board examination to any applicant who had successfully received national board certification during the current 2-year period in which he was seeking admis- sion to the board in the Virgin Islands. It entered into an agreement with the Council of the National Board of Dental Examiners to supply the exam- inations and correct them. Services involving applicants performed in con- nection with the operations of the board totaled 89. The Board of Pharmacy met six times. Fitness testing examinations were given to nine candidates, three of whom passed and were subsequently registered. Results on the balance have not yet been determined. In accord- ance with provisions of the Virgin Islands Code, temporary licenses were issued to 10 pharmacists formerly from the mainland and Puerto Rico. Eight candidates for the license of assistant pharmacist were examined and passed, and issued licenses. Two candidates upon application were issued licenses as interns. The board members in- spected personnel, equipment, and overall conditions of four new drug- stores, one in St. Croix, the balance in St. Thomas. Discrepancies were noted and brought to the attention of the proprietors for immediate correction. The Pharmacy Service for region III of the U.S. Department of Health, Education, and Welfare commended the Virgin Islands Board of Pharmacy for its past actions which have brought high-quality legislation and pharma- ceutical practices to the islands. 74 Department of Social Welfare Personnel: 296 General In fiscal year 1967, the department moved toward completion of a number of projects already underway, and con- tinued its efforts to improve existing services and initiate new programs to meet changing and growing needs throughout the islands. Construction of new cottages at the insular training schools for boys and girls in St. Croix was completed, and the new buildings were dedicated on May 10, 1967. This addition includes a complete living and training complex for boys 16-21 years of age and similar facilities for girls. The first modern day-care center was completed on the Islands of St. John in November. It is staffed and operated by the department and is providing care for 35 children. A new home for the aged to replace the old Queen Louise Home on St. Thomas is under construction, with completion expected late in 1967. This facility will house 60 persons, twice the number that can be accommodated in the present home. A complete land- scaping project is underway at the Her- bert H. Grigg Home for the Aged in St. Croix. Public assistance grants were in- creased for most recipients during the year. Certification of all eligible persons under title XIX (medicaid) has been Operating Appropriation: $2,222,445 completed, and the program which was begun in July 1966 is now fully operative. The department's programs of sum- mer employment for Virgin Islands stu- dents interested in careers in social work, and scholarship grants for gradu- ate training in social work for regular employees have aided greatly in recruit- ment and retention of casework and supervisory staff. Special efforts have been continued by the administration, the legislature, and the department to secure removal of the present unfavorable matching formula and ceiling limitation for Fed- eral participation in the Virgin Islands public assistance program. Division of Family Services During the past year, major empha- sis has been given to: (1) the imple- mentation of title XIX (medicaid) ; (2) the simplification of methods and procedures affecting determination of need and assessment of income and re- sources; (3) improving the level of public assistance grants; (4) develop- ing a project on homemaker and home aide services, a greatly needed service in the community; and (5) revision of the Public Assistance Manual, New rates for public assistance grants were put into effect as of March 1, 1967. Grant increases re- 75 suited for approximately 43 percent of age monthly increase was $31.51 in persons receiving assistance. Cases re- such cases. Reinterpretation of existing ceiving the greatest grant increase were policies has resulted in a more liberal in the Aid to Families with Dependent determination of eligibility for assist- Children (AFDC) category. The aver- ance in all cases. 76 COMPARISON OF CASELOADS AND EXPENDITURES Category Q < c« l-H O <: ai >< Q < H CO o > O O > R u ^lO In all categories of public assistance, 227 cases were closed during the year and 237 opened. The number of per- sons aided during the year increased by 436, and expenditures increased by $72,146.17 to a total of $692,724.55, most of this in the aid to families with dependent children category. Division of Child Welfare Child welfare services are provided to children in their own homes, in fos- ter homes, adoptive homes and institu- tions. During the past year, services have been expanded and improved in all areas, including increased day care facilities; approval of family day care homes; cooperative services to the juvenile and domestic relations courts, and improved and enlarged facilities at the insular training schools for boys and girls. Additions to the supervisory staff have resulted in a higher standard of casework services. Services were provided to 1,741 children during the year (St. Croix, 896; St. Thomas, 845) as compared with 1,492 last year and 1,419 the pre- vious year. CASELOAD DISTRIBUTION BY DISTRICT OFFICE St. Croix St. Thomas Total Children receiving assistance July 1 , 1 966 Children accepted for service during year Children discharged during year Children receiving service June 30, 1967 Total number of children receiving service during year 419 formal orientation and in-service train- ing program for day care personnel proved an asset to the program. Health, educational, and social serv- ices were expanded and improved. Virgin Islands Commission on Youth.—At the 1967 first special ses- sion of the legislature, the title and membership of the commission were changed, and its functions and duties redefined. The commission now con- sists of 17 members. Its major project during the year was the joint Puerto Rico-Virgin Islands Youth Commis- sions Conference held in St. Croix on May 18 and 19. Youth participation highlighted the program. Division of Aging and Special Programs Approximately 5,000 Virgin Island- ers are 65 years of age or older. They represent nearly 10 percent of the total population. During the past year, the division has placed major emphasis on enriching the daily lives of those older persons receiving services through the department. Social services have been expanded and, through the addition of a group worker to the staff, an ex- panded recreational program has been undertaken. Civic organizations and local business concerns have partici- pated in a number of community proj- ects for the aged initiated by this division. Hom.es for the Aged.—St. Thomas the Queen Louise home, with a capac- ity of 29, was filled during the entire year. The new Queen Louise Home, with a capacity of 60 beds, is nearing completion and occupancy is expected by December 1967. The Corneiro Home, a shelter-care home, provided housing for 29 residents. A program of medical and personal care, and so- cial and recreational activities, was organized for residents of this facility. Considerable improvements were made to buildings and grounds. St. Croix—Herbert Grigg Home.— This multifunction institution (home for the aged, nursing home, and home for crippled and disabled) provided care for 123 residents. In-service train- ing for all staff" and employment of a full-time physician have greatly up- graded services. Exterior and interioi* painting of all buildings was com- pleted, and an extensive landscaping program was undertaken. Aldershville.—This home, consisting of 31 units, provided shelter care for 29 persons. Extensive repairs were made to each unit. Special Programs Surplus Foods Program.—This pro- gram is operated in accordance with the agreement entered into with the U.S. Department of Agriculture. The division was again highly commended CASELOAD DISTRIBUTION IN HOMES FOR AGED Queen Corneiro Herbert Louise Home Grigg Home Home Aldershville Residents 7/1/66 Added during year Closed during year Residents 6/30/67 Total receiving services during year. 25 by the regional office in Atlanta, Ga., for its op>eration during the year. The nutritional value and the uses of surplus commodities were brought into focus by a booklet, "A Guide to Nutrition Education for Recipients of Government Donated Commodities." This booklet was prepared by the stafT's nutritionist and distributed to all recipients of surplus commodities. The program cooperated with the division of family services, title V pro- gram and the Department of Edu- cation in giving demonstrations on the preparation and use of federally donated foods. Distribution of commodities to in- stitutions and needy families was made from nine centers (St. Croix 6, St. Thomas 1, and St. John 2) . At the end of the fiscal year the caseload was 1,286 families which represent 3,914 persons. The following chart shows the amount of commodities distributed during 1966-67: Amount distributed Commodities by pound Beef 2, 441 Beans, dry 35, 443 Butter, creamery 4, 908 Butter, peanut 24, 440 Cheese 270 Flour, wheat 82, 685 Margarine 48, 438 Meal, corn 73, 670 Meat, chopped 62, 289 Milk, nonfat dried 139, 581 Oats, rolled 16, 128 Juice, orange 2, 640 Peas, split 19, 274 Raisins 28, 847 Shortening/lard 60, 744 Wheat, rolled 33, 138 Rice 144,684 Cancer Care.—Virgin Islands patients continue to receive services at the Dr. I. Gonzalez Martinez Oncologic Hospital. The following table shows the activities of the cancer program during the year : 82 3O u^ -^ i^ us Burials.—Burial services for indi- gents continud to be provided by con- tract with funeral homes in St. Thomas and St. Croix. There were 71 requests and 51 were approved for service (St. Croix, 36; St. Thomas, 15). Services to Mentally III-—The divi- sion continues to act as liaison for Vir- gin Islands patients at St. Elizabeths Hospital in Washington, D.C., and their relatives in the Virgin Islands. Five patients returned home during the year. Services to the Blind.—Talking books and machines are being used by the blind at the various institutions and in their homes. Sewing Projects.—With the em- ployment of a supervisor for the St. John district office, the project is pro- ducing greatly improved garments for which there has been an increasing demand. Numerous articles of clothing were made, especially for the homes for the aged. School uniforms were made for children of indigent families known to the Division of Child Wel- fare and Family Services. During the coming year, the depart- ment expects to activate fully staffed juvenile court and probation units within the Division of Child Welfare. Further expansion of day care centers is expected. The Division of Family Services and Child Welfare will accel- erate planning for early implementa- tion of the homemaker program. Plans are already underway to expand and strengthen the department's personnel services and research and statistics op- erations. Appointment of members to the Advisory Commission on Aging was recently completed, and every effort will be made toward establishment of new programs for the aged under the Older Americans Act. 84 Department of Commerce Personnel: 111 The Department of Commerce, through the operation of its principal divisions of trade and industry, marine activities, and the visitors bureau, con- tinued to serve as the government's principal tool for the fostering of eco- nomic development. Also contributing to the total picture of the islands' rising prosperity are a number of important operations within the Department of Commerce which have not as yet reached division pro- portions. These include the Virgin Islands rum council, on-islands public relations, fishing and water sports pro- motion, the beautification council, the industrial incentive board, and three off-island information centers. Tourist expenditures stood at $75,- 035,860 for the year, as compared with $59,456,245 in fiscal year 1966. Bank- ing activity maintained a steady growth, and external trade set new rec- ords as imports increased 21 percent over the previous year. Visitors Bureau For the third consecutive year, more than a half a million visitors came to the Virgin Islands, with the number of cruise ships reaching another record high. A total of 296 cruise ships called at St. Thomas, with 28 visiting St. Croix. Total cruise ship passengers for Operating Appropriation: $1,513,212 the year numbered 133,357, as com- pared with 117,659 in fiscal year 1966. Due to popularity and demand, the islands' primary guide to the trade, the "Travel Agent's Handbook," was revised and updated, and continues to be the most informative publication of this nature. Inquiries at both the New York and Washington offices of the visitors bu- reau were ahead of the previous year. In New York, mail, telephone, and visitor inquiries totaled 81,053 for the year, compared with 75,640 inquiries during the previous fiscal year. Individ- ual, agent, and bulk literature distribu- tion totaled 341,587 pieces, compared to 199,160 for fiscal 1966. Diversified special projects involv- ing members of the Washington and New York staff's included preparations for the annual cruise ship company solicitations and the staffing of the Virgin Islands mobile travel show. The department's San Juan office during the year gave priority to serving the most active hotels and travel agents in that city from whom much of the traffic into the Islands is generated. This office has been represented at all conventions of 250 persons or more meeting in the San Juan area, and servicing 16 such gatherings that saw a total of 13,385 persons in attendance. The following tables reflect the growth of tourism over the past 5 years : 85 TOTAL TOURIST EXPENDITURES 1962-63 $41, 070, 000 1963-64 48, 158, 074 1964-65 54, 014, 852 1965-66 59, 456, 245 1966-67 75, 035, 860 AIR TRAFFIC 1962-63 215,809 1963-64 285,610 1964-65 356,371 1965-66 436,775 1966-67 516,295 CRUISE SHIP TRAFFIC stepped up and there was closer super- vision of all government-owned piers, docks and bulkheads in the islands. The division also instituted strict en- forcement of the antilitter law as it re- lates to these marine installations. With a $300,000 appropriation from the legislature, repairs and improve- ments were affected at the Frederiksted deepwater pier. Also during the year a 260-foot section was added to the King's Wharf marginal wharf in Christiansted. An increased interest in boating in the Virgin Islands was reflected in the growing number of motorboat registra- tions. An additional 189 motorboats were registered in St. Thomas during the year, bringing the total number to 886. On St. Croix this number in- creased from 771 in fiscal year 1966 to 838 for fiscal 1967. Total gross income from all marine activities in the islands increased from $427,456.98 in fiscal 1966 to $467,421.52 in fiscal year 1967. Harbor Statistics St. Thomas-St. John : Number of commercial arrivals 2, 599 Number of cruise ships .... 268 Tourist passengers on cruise ships 125,058 Gross tonnage of commer- cial arrivals 6, 843, 414 Number of motor boats registered 189 Total motorboat registra- tion 866 Navy vessel arrivals 115 St. Croix: Number of commercial arrivals 1, 499 Number of cruise ships .... 20 Tourist passengers on cruise ships 7, 934 Gross tonnage of commer- cial arrivals 1, 836, 680 Num,ber of motorboats registered 67 Total motorboat registra- tion 438 Navy vessel arrivals (Frederiksted) 32 REVENtTES St. Thomas-St. John: Wharfage fees $56, 704. 30 Tonnage dues 131, 878. 17 Pilotage fees 60, 397. 50 Mooring fees 10, 753. 49 Motorboat registration fees. 4, 330. 00 Total gross income 264, 063. 46 St. Croix: Wharfage fees 126, 860. 61 Tonnage dues 34, 671. 95 Pilotage fees 24, 043. 80 Mooring fees 16, 856. 70 Motorboat registration fees. 925. 00 Total gross income 203, 358. 06 Rum Council The mainland rum market in general continued in a trend that will assure a doubling of sales every 10 years. The total apparent consump- tion of rum in the United States rose to 2,709,049 cases in calander year 1966, or a gain of 9.4 percent over the 2,476,400 cases in 1965. The current prospect is that in 1968 total rum volume will rise above the 3 million case mark. On this basis, rum sales for the decade 1958-68 will show an increase of 13.7 percent. Rum in- creased its share of the entire liquor market from 2.2 percent in 1965 to 2.3 in 1966, providing the Virgin Islands an excellent product for promotion. The Virgin Islands rum industry in- creased from 1,225,865 proof-gallons of rum shipped to the United States in fiscal year 1966 to 1,296,040 in fiscal year 1967, or a 5-percent rise in such exports. During 11 months of fiscal 1967, the collections of excise taxes on importa- tions of rum into the United States from the Virgin Islands exceeded the total of fiscal 1966 by $54,001. Esti- mating the excise tax return for the last month of the fiscal year at a conser- vative $850,000, the returns to the Vir- gin Islands government should be over $12 million for fiscal 1967. 87 Virgin Islands Beautification Council The council coordinated with the Department of Public Works and the Department of Public Safety in tagging and removing abandoned vehicles throughout the islands on a continuing basis. New committees were established within the council for such projects as plant propagation, neighborhood beautification, community action, and educational efforts on behalf of beautification. The council retained a supervising foreman and consultant landscaper who will supervise and develop a plant nursery for the islands' beautification programs. The landscaper will oversee the designs to enhance public buildings and town areas for all islands. The council instituted an intensive clean- up-paint-up campaign and interested the College of the Virgin Islands in instituting a course in horticulture. Division of Trade and Industry As over the past 5 years, such economic indicators as tourism, manu- facturing, power generation, bank deposits, and government revenues, reflected substantial gains during the year. New records were attained in ex- ternal trade activity. Combined im- ports from the mainland and foreign countries totaled $137,720,755, repre- senting an increase of 21.14 percent over the previous year. Total exports were valued at $56,144,017, a 52.6-per- cent increase over fiscal year 1966. With the opening of two additional banks during the year, a total of 17 branches were operative in the islands. Bank deposits totaled over $100 mil- lion, representing a figure 30 percent higher than the 1966 yearend figure. The division participated with Puerto Rico in a trade mission to Curacao in June of 1967, and in the course of the year issued two publica- tions—a 1965 comprehensive business directory, and a revised "Facts About Doing Business in the U.S. Virgin Islands." Industrial Incentive Board At the end of fiscal 1967, there were 80 tax-exempt operations functioning in the islands, of which 38 represented hotels, guest houses, or motels, and 42 represented small businesses. These op- erations employed an estimated 3,227 persons with an annual combined pay- roll of $11 million. Subsidy payments to tax-exempt businesses increased during the year. Other increases registered were in cus- tom duty payments which rose $126,753.96 over the previous year; dividend claims by $5,000 ; and income tax refunds by $251,607.40. Subsidy re- bates were extended to all tax-exempt manufacturing businesses on excise taxes paid on raw materials in the amount of $696,173.04. The board held eight public hearings and eight executive sessions during the year. Forty-seven applications were heard, with 1 1 firms being recom- mended for tax exemption. Four firms were granted conditional documents; three granted extensions of conditional documents ; and two granted extensions of permanent certificates. Three certi- ficates were transferred; six applica- tions held for further study; and eight firms denied tax exemption. Twenty firms were granted permission to ex- ceed alien ceilings, and one certificate was amended. A current compilation of all tax exempt firms, indicating the period of exemption, and each specific subsidy and exemptions granted to each in- dividual firm, was undertaken and will be distributed to all agencies directly connected with this program. This will aid in establishing a more uniformly coordinated handling of all grants. 88 Department of Agriculture Personnel: 234 Operating Appropriation: $1,486,126 This is the second year that the Department of Agriculture has been separated from the Department of Labor. The development of a sound and constructive relationship between the farmers and their government may be considered to be among the most significant accomplishments of this department during the past fiscal year. This confidence has been manifested through the development of custom- ized service programs made available to the farmers and the communities. Agriculture Recognizing the need for more ef- fective agricultural practices in the islands, the administration has co- operated by appropriating funds to implement these practices. Accepting the challenge of a diminishing agri- cultural industry, the Department of Agriculture has been strengthened by increases in the following areas: Fa- cilities for transporting heavy equip- ment, land preparation machinery, machinery for maintenance programs, forage harvesting and transporting machinery, and highly qualified personnel to conduct the different services. During the second half of this fiscal year, the islands suffered from another severe drought. The administration and the Department of Agriculture cooperated to meet the emergency. Using funds appropriated for emer- gency drought relief, 347 tons of special formula cattle feed were distributed to 446 full- or part-time farmers. This feed was made available to them at 50 percent of the market price. In addi- tion, the forage harvesting machinery of the department protected against economic disaster to the livestock industry of the island. With their pastures almost completely ruined by the drought, the livestock farmers were able to secure loads of feed from trail- ers on a daily basis. No animal deaths during this period can be attributed to starvation. The food production program assisted farmers and other citizens en- gaged in the production of food crops and animals. Through this program, almost 100,000 pounds of vegetables were produced and marketed for eight farmers of St. Croix. They were as- sisted by the agriculture department in land preparation, mechanical plant- ing, spraying for pests, harvesting and marketing. As a result of this program, many market outlets are now available for more of St. Croix's produce. The land preparation service pro- vides one of the most important serv- ices available to the farming population. The inventory of farming equipment has been increased, but additional units and operators are still 89 needed for land preparation. During this period 103 full- or part-time farm- ers on over 300 acres received this service. The fee charged is about one- third of the commercial price, and without the service many farmers would be forced out of the farming business. A service initiated during this fiscal year provides for the extermination of the Nasutitermes costalis, a termite commonly known as the woodlice. It will save thousands of trees from death, restore their beauty, or bring them back into production. At the close of this reporting period, 1,691 nests had been exterminated. St. Croix Abattoir A total of 3,704 animals was slaugh- tered at the St. Croix abattoir. This figure represents an increase of 318 animals over last year's operation. Sig- nificant repairs to this plant were accomplished by the maintenance per- sonnel of this department. Soil and Water Conservation Service The following soil and water con- servation practices were accomplished under the unified agricultural conser- vation program for the Virgin Islands : Brush control 1,600 acres. Chiseling and subsoiling 356 acres. Farm ponds (dams) 5,500,000 gallons. Pipelines for water (livestock and irrigation) 9,605 feet. Land clearing 704 acres. Pond or dam sealing or lining 3 each. Rock barriers 504 feet. Recreation area land grading and shaping 235 acres. Troughs or tanks 7 each. Wells (livestock and irrigation) 14 each. Beautification The construction of a new plant propagation shed was begun near the end of this fiscal year. The propagation center will accommodate the recently developed forestry program and will be used for future highway beautifica- tion. Extensive propagation of native fruit trees will begin in the near future. Division of Recreation, Parks and Beaches Positive results were noted during the year in the division's efforts to de- velop wide-range programs in recrea- tion that would reach all levels in the communities. Athletic standards were upgraded, and the Virgin Islands athlete is now being trained to com- pete in international sports competi- tion. During the year, extensive renova- tions were made to the Lionel Roberts Stadium in St. Thomas and the Paul E. Joseph Stadium in Frederiksted, St. Croix. These two facilities now meet certification standards of the American Baseball League. As a result, two ma- jor league teams played exhibition games at both stadiums during semi- centennial observances in March. Following surveys undertaken by the Puerto Rico Park Commission, other recreational sites in the islands were renovated and improved. The Caren- age ball park in St. Thomas was lighted for night recreational activities, and major improvements effected at the Smith Bay and Nadir sites on that island. Recreational centers throughout the islands expanded their services during the year, providing programs in arts 90 and crafts, dancing, table games, and other indoor recreational activities. Over 100 youths participated in the summer daycamp program, and 300 in the Little League and Pony League baseball games. Several hundred adults participated in the men and women Softball leagues. In the area of beach development, the Stony Ground Coral Resort in the Frederiksted district of St. Croix was put into operation during the year. The accommodations at this resort, which include a large outdoor swimming pool, are used extensively by all age groups. The requirements of the Virgin Is- lands semicentennial observance stim- ulated the remodeling and upgrading of all parks. New bandstands were con- structed in the parks of Charlotte Amalie and Frederiksted. The latter facility was further improved with the addition of new concrete walks and benches. In the period covered by this report, the Virgin Islands State plan for out- door recreation was completed and thereafter received Federal approval. Federal funds available under this pro- gram will be matched with local ap- propriations for the further develop- ment of recreational facilties and areas throughout the islands. Preliminary plans place emphasis on the development of the Altona Lagoon Beach in St. Croix and the John Brew- ers and Mandahl Beaches on St. Thomas. 91 Department of Labor Personnel: 58 In its operations during the first full fiscal year of its existence, the depart- ment, created as a separate agency Oc- tober 1, 1965, concentrated on organi- zation. There has been a consistent effort to upgrade the professional qual- ity and performance of the staff in order to implement the government's policy of promoting the welfare and employment opportunities of workers. Techniques have been refined to main- tain stable labor-management relations and to insure a climate in which the economy can move forward with vigor. The department encompasses six di- visions with activities ranging from veterans affairs to unfair labor prac- tices. Such a diversified program pre- sents obligations which require a highly trained staff. To recruit such a staff and to assure prudent progress, the department turned to the New York State School of Industrial and Labor Relations at Cor- nell University for the type of profes- sional guidance which only such an institution could provide. As a first step, the school assigned the task to the New York City Center. Conferences have been held with qualified authori- ties. A preliminary survey already has been made, the end product of which will be the presentation of a master blueprint for the department. In the meantime, in-service training programs are being planned and con- ducted for the staff. Operating Appropriation: $421,660.89 The department has been success- ful in reducing work stoppages which last year deprived the economy of a total of 22,000 man-hours. By contrast, there was only one strike this year: that involving porters at the Harry S. Truman Airport in St. Thomas. After only 2 days and the loss of only 160 man-hours, the strike was resolved fol- lowing the intervention of the labor department. Division of Labor Expansion of industry and increased union activity has brought about sharpened sophistication resulting in more exacting demands on the depart- ment in all phases of labor-manage- ment relations under the Fair Labor Standards Act (ch. 3, title 24, Virgin Island Code) . A significant improve- ment in payroll inspections has been the development and refinement of statistics which now permit the depart- ment to assess more effectively the value of payroll inspection as one ba- rometer of the economic progress of the Virgin Islands. During fiscal 1966-67, 1,636 payroll inspections were conducted in 836 business enterprises, showing a total of 10,721 employees. These inspections revealed that $11,471.83 was due em- ployees who were underpaid during this period (an increase of $3,513.27 or 44.12 percent over fiscal 1965-66). 92 Three hundred and twenty-nine com- plaints were filed by individual em- ployees, resulting in the payment by employers of $13,642.19 in back wages. Representation Cases During 1966-67, the department is- sued nine certifications to the Virgin Islands Labor Union, AFL-CIO as bargaining representative of employees. Unfair Labor Practice Cases Only six unfair labor practice charges were filed with the department during the year. Fewer cases were filed because the department resolved many problems in their initial stages. Where charges were filed, every ef- fort was made to effect a settlement through mediation. Another factor in the reduced number of charges has been the growing awareness that more is to be gained by peaceful resolution than by work stoppages. The number of complaints filed un- der local residence preference statutes also was lower than in fiscal 1965-66. This, again, was due in large measure to the efforts of the department to set- tle the question of alien employment where occupationally qualified resi- dents were available. In fiscal 1966-67, the department issued 10,600 alien certifications. Under local statute, the department's responsibility is to deter- mine and certify the extent to which the alien is necessary to the work force. Applications for Employment Ever since the establishment of the department, residents in increasing numbers have come seeking employ- ment in practically all classifications and types of industries. This has been due, in part, to the responsibility of the department for the implementation of residence preference provisions of the statute, a fact not lost on the job- seekers. Duplication and evident cross- purposes in this area and others point up the ever-increasing necessity to uni- fy the programs and functions of em- ployment security into the Department of Labor, as is the case in 43 of the 50 states. Division of Apprenticeship and Training The year showed a sharp increase in the number of apprentices in training. A total of 97 registered, 48 under the Federally subsidized on-the-job train- ing program. In addition to the 97 full- time trainees, four high school students have entered part-time training pro- grams in clerical work, radio and television engineering, architectural drafting, and air conditioning and re- frigeration. These programs are carried out with the cooperation of 27 employ- ers in St. Thomas and St. Croix. Eight students also are receiving ad- vanced training through the off-island institutional training program for Vir- gin Islands trainees in technical schools in Humacao, Gayey, Mayaguez, Are- cibo, and Ponce, Puerto Rico. During the last week in June 1967, three trainees in St. Croix and four in St. Thomas received certificates indi- cating a rating of journeyman as radio and television repairman, automotive mechanic, electrician, electrical and control technician. A significant forward step in the ap- prenticeship program was the execu- tion of an agreement between the Vir- gin Islands and the U.S. Department of Labor, pursuant to the Manpower and Training Act of 1962, which pro- vides for the reimbursement of the Virgin Islands government for the de- velopment, installation and servicing of all Manpower Development and Training Act and on-the-job training 2i82-a48 O—6-8- 93 contracts negotiated within this terri- tory. The increased demand for trained personnel in the trades is being recog- nized, as indicated by the rise in the number of trainees, and in the number of business establishments with which contracts for the training of students have been entered into. Division of Veterans Affairs The Division of Veterans AflFairs had one of its most active fiscal years since its establishment. During 1966-67, the division made 4,397 personal contacts and responded to more than 2,000 in- quiries from veterans in person, by mail, and by telephone. As a result of the legislation passed this year, veterans received transporta- tion expenses in excess of $1,000 in connection with their study on the mainland. Studies are now being con- ducted to determine the feasibility of a veterans hospital in the Virgin Is- lands. When these studies are com- pleted, application will be made to proper officials. Also during the period, the division explored the possibilities of extension of all benefits of the GI bill to Virgin Islands veterans, with encour- aging results. Workmen's Compensation Workmen's compensation costs total- ing $319,139.77 reflected a sharp rise over the previous year total cost of $274,182.57. This was due to three cases involving unusually serious and extensive injuries, for which large awards had to be made, and to in- creased medical costs generally. For the first time in the history of the Virgin Islands, compensation benefits were awarded for "traumatic cancer." Oc- cupational safety in the public as well as the private sector continued as an important phase of this division, which conducted 3,800 inspections through- out the year. The broad bases of work- men's compensation have been and will continue to be cash compensations, high-quality medical care, medical rehabilitation, and accident prevention. Construction continues to present the highest number of accident cases : 754 in 1966-67, for which awards totaling $172,003.60 were made. Virgin Islands Wage Board The Virgin Islands Wage Board met on a number of occasions duxing the fiscal year, to consider a minimum wage for resident employees. Certain difficulties, among which were func- tional differences between the Depart- ment of Labor and the Employment Security Agency, have prevented final resolution of this study and the board decided to table, for the present, any detailed discussion of local minimum wage revision. Virgin Islands Com-mission on the Status of Women The Virgin Islands Commission on the Status of Women, created by the legislature in 1966, composed of 11 members, appointed by the Governor, met monthly until May 1967. One member resigned in 1967. The commission is organized into nine main committees as follows: Legal status and legislation, minoiity women, political and social action, home and community, education, la- bor, health and recreation, consumer education and protection, and moral development. One hundred and ten citizens have been invited to serve as committee members. The commission is the Virgin Islands government's clos- est link with the U.S. Department of Labor, Bureau of Women. 94 Members attended the 1967 Na- tional Conference of Commission on the Status of Women from 49 states and joined in their recommendations to the Secretary of Labor and the Sec- retary of Health, Education, and Wel- fare on policy matters relating to the welfare of women in the Federal level. The commission held a public hear- ing on the high cost of food in the Virgin Islands and recommended the encouragement of competition by in- ducing large food chains to establish businesses in the islands. The commit- tee of labor of the commission held a hearing on the question of ability of the working women with children to absorb the new minimum wage for domestics. The commission recom- mended to the Governor that a statis- tical study of the women of the islands be made since none now exists. It rec- commends to the legislature that a training program for unskilled work- ers be initiated, and the establishment of more day-care centers for the islands. The commission is currently study- ing the following with a view toward recommending legislation : 1. The relationship between educa- tion and labor and the areas of defi- ciency as they affect women. 2. The feasibility of a consumer edu- cation program for the islands. 3. The political potential of women in the islands and ways to encourage their active participation. 4. The question of sex discrimina- tion in employment and the promotion of women workers in the Virgin Is- lands and the need for an equal pay act. 5. The need for extension of the na- tional household training program to the Virgin Islands to improve the qual- ity of domestic service. 6. The need for a homemaking serv- ice for retired and aged persons. 7. The need to extend the govern- ment's recreation program to include women who work as a health measure, and the need for female staff in the government's program. 8. The need to protect the consumer by regulation of credit and lending agencies, and by regulation of the qual- ity of food sold. 9. The problems of minority women workers. Division of Recruitment During fiscal 1966-67, 53 Virgin islanders were recruited and now are established in positions in government and private industry. The magnitude of this task becomes apparent when it is considered that recruitment, of ne- cessity, encompasses every phase of the returnee's life—housing, family, edu- cation, and employment. In every case, the contact is but the preliminary step. By the time the applicant arrives in the Virgin Islands, he not only has been placed in a position, but also all other factors have been fully explored. Continuing effort goes into all unre- solved matters. Another equally significant achieve- ment of this year was the development of the internal procedures necessary for the effective processing of loans and grants under applicable statutes. In this connection, the office of the attor- ney general provided valuable guidance and much help toward the preparation of standardized legal documents. In addition, the division, in cooperation with the finance department, com- pleted details of the collection proce- dures, a necessary step in the process- ing of loans. Housing continues to pose the most difficult of the problems to which the recruitment program must address it- self. Second in importance is the differ- ence in the salary scale between those on the mainland and the Virgin Is- 95 lands. One example is found in the program progresses, a number of solu- salary of a nurse's aide, which is $5,000 tions to the problems will be recom- per year in New York and ranges from mended. Given effect, these will a beginning salary of $3,324 to $4,644 strengthen the program and widen its after 5 years here. As the recruitment scope of effectiveness. 96 Virgin Islands Employment Security Agency Personnel: 59 Employment Service The Virgin Islands Employment Security Agency continues to serve a constantly expanding labor force which stood at approximately 26,000 at the end of fiscal year 1967, an increase of about 10 percent over fiscal year 1966. A reports and analysis division added to the agency now handles internal re- porting and the dissemination of cer- tain employment security data to other government agencies and to the public. The employment service continued to function as the territory's primary manpower agency during fiscal year 1967. In addition to serving in its job placement function, matching workers to existing job openings, the agency worked to increase the employability of disenfranchised groups by develop- ing their skills to full potential. This was achieved through intensive occu- pational testing, job development, Operating Appropriation: $499,134 counseling, and by reference to such training programs as manpower devel- opment and training. Neighborhood Youth Corps, Job Corps, apprentice- ships and training, and army graduate specialist program. Nonagricultural placements for the year totaled 1,567, down 318 from fis- cal 1966. However, the decline in this activity was more than offset by an in- crease in alien certifications which totaled 20,879, up 14,089 from fiscal 1966. In addition, during the last month of the fiscal year, some 600 tem- porary positions filled by alien workers were made permanent under new Fed- eral procedures. The joint areas of counseling and testing registered sharp increases over levels of the last fiscal year, a direct result of the agency's ef- forts to increase applicant employ- ability by developing human resources. A comparison between fiscal years 1966 and 1967 follows: Fiscal year 1966 Fiscal year 1967 Counseling interviews. GATE'S Special aptitude tests. Proficiency tests Total labor force Total employment. . . . Placements Alien certifications . . . 402 Unemployment Insurance Service The unemployment insurance serv- ice paid the largest amount in benefits and received the most from employers since the program began in 1962. In- terstate agreements were signed with California and New Jersey, the home States of two major Virgin Islands industries. After working under an unwritten interstate understanding formed in 1952, the Virgin Islands and Puerto Rico signed a formal interstate agreement. Towards the end of the year, the number of resident aliens filing and collecting benefits steadily increased. Bonded aliens are rapidly acquiring residential status under the new lib- eralized policy, and they presently con- stitute approximately 20 percent of the unemployment insurance active file. Expansion in the personnel and office space requirements is expected when the potential increase of claims from veterans and resident aliens is realized. Towards the end of the first half of the fiscal year, a central ac- counting unit, handling all accounting functions, came into operation. Wage and contribution offices now deal ex- clusively with employers, collecting and contacting delinquents. Prepara- tion is complete for launching an on- going audit program. Veteran Benefits The enactment of the Veterans Re- adjustment Assistant Act of 1966 re- flected the concern of the Congress for the number of veterans due to return from the Vietnam conflict. Local offices updated their records to meet this new emphasis on ex-servicemen and their benefits and rights. During fiscal 1967, new applications for vet- erans showed a 30-percent increase over fiscal 1966. Manpower Development and Training Act Under the liberalized MDTA law, nine young men from the Virgin Islands were trained in Puerto Rico, four as diesel mechanics and five as business machine servicemen. Upon the completion of the courses, all ob- tained jobs in the Virgin Islands related to their training, with the ex- ception of those entering military service. This off'shore payment of MDTA trainees started in fiscal year 1966 and continued on a larger scale in 1967. The unemployment insurance service paid their allowances as fast as the claims were received, allowing them to continue their studies without concern for monetary problems. fiscal Summary (a) Wage contribution : Number of employers. ... 1, 732 Number of new employers 205 Total collected $1, 020, 492. 18 (b) Total claims filed all programs 866 Total collected bv claimants ' $120, 378. 00 (c) MDTA: Trainees 53 Training and allowances payments S26, 158. 05 98 Department of Public Works Personnel: Permanent: 446 Per Diem: 1,202 During the fiscal year, the Depart- ment of Public Works substantially increased its activities in providing basic services of street and road con- struction and maintenance, provision of water, maintenance of water and sewer systems, construction and repair of governmental buildings, and opera- tion of the public cemeteries. A total of $6,297,227.20 was obligated for these functions as compared with $4,998,000 in the previous fiscal year. A total of $4,124,317.75 was ex- pended by the department on capital improvement projects under the matching funds program. Road and Street Improvement On St. Thomas, 9 miles of roads and streets were reconstructed and paved in concrete and 2 miles in asphalt. On St. Croix, 6 miles of Centerline Road were reconstructed, widened, and paved. Four miles of roads and streets were reconstructed and paved elsewhere on the island. An additional mile of Centerline Road on the Island of St. John was recon- structed and paved, together with ex- tensive concrete paving of streets and secondary roads in Cruz Bay, John's Folly, and Coral Bay. The islandswide program also in- cluded widening, upgrading, and re- Operating Appropriation: Special Projects: Matching Funds: $6,297,227.20 $2,591,621.97 $4,124,317.75 paving of roads and streets necessary to accommodate heavier traffic loads. The department is following the policy of utilizing concrete for the surfacing of all roads and streets constructed in areas of steep terrain, particularly on St. Thomas, and in areas where un- usually heavy maintenance costs have been experienced. Street Cleaning and Garbage Removal Service Garbage and trash collection in- creased steadily on the three islands during the year, and this increase is expected to continue. Plans have been completed for the construction of an incinerator on St. John, and with the activation of a small temporary incin- erator, open-pit burning of refuse has been eliminated. An engineering firm has been contracted to design an in- cinerator for St. Thomas that open-pit burning of refuse be eliminated at the Harry S. Truman Airport. Water Supply Extensions have been made to the fresh water distribution systems on St. Thomas and St. Croix, resulting in in- creased consumption. To cite an ex- ample^ the demand on the St. Thomas distribution system has increased 450,- 000 gallons per day over the course of 99 Fiscal year 1967 saw continued progress in efforts to upgrade and maintain streets and roads throughout the islands. Here the Red Hook Road on St. Thomas is being widened and resurfaced by the Department of Public Works personnel. the fiscal year, and further increases are foreseen. The combined output of the St. Thomas desalination plants averaged 1 million gallons per day. However, in making allowances for periodical shut- downs of the plants, together with the steady increase in consumption, con- tinued barging of water from Puerto Rico has been a necessity. That water reserve be extended from a 10- to 30- day supply, two 10 J/2 -million-gallon water tanks are being constructed on St. Thomas and one of like capacity on St. Croix. On St. Croix, a 4 J/2 -mile waterline was constructed from the Adventure wells to Frederiksted, and in addition, a 2.3-mile waterline connecting the Fairplain and airport wells to the Bar- ren Spot pumping station. This has re- sulted in connecting the Adventure, Fairplain, and Barren Spot wells to a pipeline which serves Frederiksted and Christiansted simultaneously. Along with extensions to the urban water distribution systems on St. Thomas and St. Croix, parallel exten- sions to the sewerage and salt water systems have been made. Engineering and Design Along with all other activities of the Department of Public Works, engineer- ing and design functions continued to increase. A total of 1,501 building per- mits was processed. Design and con- struction projects undertaken by the department included the Queen Louise Home, the Tax Division Annex, and an addition to the Office of the Governor. In St. Croix, building construction in- cluded the Insular Training School at Anna's Hope, the salt water pumping station near Christiansted, a new de- partmental shop for public works at Anna's Hope, reconstruction projects at the Alexander Hamilton Airport, and rehabilitation projects along the Christiansted waterfront. 100 Department of Finance Personnel: 314 Operating Appropriation: $1,846,254 The Department of Finance, in its role as the disbursing and chief fiscal agency for the government of the Virgin Islands, with the broad and specific powers granted to it under the laws of the government of the Virgin Islands, is affected by every fiscal activity undertaken by our govern- ment and every economic tremor felt in our islands. In fiscal year 1967, the trend in gov- ernmental operations showed steady and substantial increases in revenues and in expenditures, to levels never before experienced by the Virgin Islands in their history. This trend was the result of the continuing increase in economic activity throughout the islands reflecting and requiring in- creased governmental services. Revenues collected in all funds involved in the operations of the gov- ernment reached a total of $61,504,- 681.33, recorded by fund groupings, as follows: Amount Percent General fund $35, 682, 1 15. 99 Matching fund and essential projects fund 11, 264, 058. 81 Special and other funds 14, 558, 506. 53 Total 61, 504, 681. 33 58.02 18.31 23.67 100. 00 Collections into the general fund which is the major operating fund of the government were as follows: Taxes $31, 557, 911. 82 Government operating income 577,784.18 Other revenues 3, 546, 419. 99 Total 35,682,115.99 Collections into the matching fund and the essential projects fund which are the recipient funds for Federal internal revenue taxes collected in the United States on imports from the Virgin Islands, were as follows : Internal Revenue returns . . Refunds Interest on bank balances . $11,073,732.26 3, 097. 28 187, 229. 27 Total 11,264,058.81 Collections into the special and other funds (most of the trust and deposit funds and certain enterprise and revolving funds: e.g. the Virgin Islands lottery fund and the Govern- ment insurance fund, are excluded 101 because they have no direct bearing on the operations of the government as such) presented the following: Taxes i $5, 632, 675. 77 Government operating income 687, 861. 98 Federal grants-in-aid 5, 737, 651. 71 Other revenues 2, 500, 317. 07 Total 14,558,506.53 1 This item includes $5,100,216.82 of taxes held in escrow, a portion of which will consequently be transferred to the general fund to be available for appropria- tions. The rest will be available for subsidies. Bond anticipation notes sold by the government of the Virgin Islands in fiscal year 1967 amounted to $4,455,000. As of June 30, 1967, the government had borrowed, by this means, over the last 3 years a total of $12,115,000.00 for the follow- ing purposes: Schools $4, 700, 000 Hospitals 2, 000, 000 Water systems 1, 755, 000 Virgin Island water and power authority $3, 660, 000 Total 12, 115, 000 The ceiling on such borrowings has been set by the U.S. Congress (Public Law 88-180) at 10 percent of the aggregate assessed valuation of taxable real property in the Virgin Islands. This valuation amounted to $158, 729,- 323 as of December 31, 1966. The following information shows a comparision of the ceiling with local authorizations and actual borrowings: Ceiling (10 percent of $158,729,323) $15, 872, 932 Authorizations (local statutes) 13, 015, 000 Actual borrowings 12, 1 15, 000 Balance of authorizations 900, 000 Total expenditures, excluding inter- and intra-fund transfers, for all funds connected with the operations of the government amounted to $61 , 1 97,858.- 58. These are shown by fund group- ings as follows: Amount Percent General Matching fund Essential projects fund . . Special and other funds . Total. $33,878,229.18 7,566,840.84 652,915.20 19,099,873.36 61, 197,858.58 55.36 12.36 1.07 31.21 100.00 Total expenditures detailed by vari- ous departments and agencies of the government during fiscal year 1967, are as follows : Amount Percent Legislature, electoral boards, and municipal courts of the Virgin Islands $990, 076. 84 Health 8, 350, 704. 23 Education 9, 984, 648. 63 Social welfare 2, 614, 083. 58 Public safety 1, 893, 433. 67 Public works 13, 889, 226. 18 Agriculture and recreation 1 , 404, 745. 50 Labor 325, 270. 76 Housing and Urban Renewal 1, 533, 743. 40 Commerce 1, 873, 126. 78 Executive and administrative departments and agencies 18, 338, 799. 01 Total 61, 197, 858. 58 1.62 13.65 16.31 4.27 3.09 22.70 2.29 .53 2.51 3.06 29.97 100. 00 102 Additional details relating to rev- enues and expenditures are shown in exhibits I and II. A 5-year comparison of total collec- tions recorded in the general fund, the matching fund, and the essential projects fund is shown in exhibit III, and for the same period, and for the same three major funds, a comparison of expenses or obligations (expendi- tures against the current year's appro- priations plus outstanding encum- brances) is shown in exhibit IV. Supplementing the information pre- sented in this report are two compara- tive statements of revenues and expenditures for all funds for fiscal years 1960 through 1967 (exhibits V and VI). The revenue statement (exhibit V) shows revenues collected over an 8- year period (by categories) for all funds and the major fund groupings in which the deposits were made. This diflPers from exhibit III which shows total collections into three major fund groupings. The expenditure statement (exhibit VI ) shows total expenditures made by departments in the fiscal years desig- nated, and the major fund groupings from which the amounts were ex- pended. This also difTers from exhibit IV which shows obligations (expendi- tures plus outstanding encumbrances) against appropriations for the partic- ular fiscal years. 103 EXHIBIT I GOVERNMENT OF THE VIRGIN ISLANDS ALL FUNDS STATEMENT OF STANDARD GOVERNMENT OPERATING REVENUES JULY 1, 1966, TO JUNE 30, 1967 Source of revenue EXHIBIT II GOVERNMENT OF THE VIRGIN ISLANDS ALL FUNDS STATEMENT OF STANDARD GOVERNMENT OPERATING EXPENDITURES JULY 1, 1966, TO JUNE 30, 1967 Type of expenditure Total General fund Matching fund Essential Special and projects fund other funds Legislative: Legislature of the Virgin Islands: Operating $564, 448. 57 C apital improvements . 61, 337. 87 Other 15,639.10 641, 425. 54 Electoral boards: St. Thomas 24,827.84 St. Croix 26,556.03 St. John 8,748.43 Office of the supervisor of elections 40, 877. 30 101, 009. 60 Total legislative 742, 435. 14 Judicial: Municipal courts of the Virgin Islands 247, 641. 70 Executive offices and functions: Office of the Governor: Operating 287, 758. 73 Capital improvements . 61, 198. 01 Claims against the gov- ernment 1,773.63 Governor's contingent fund 89, 854. 58 Promotion of agricul- tural products 2, 377. 44 Teacher training and development 200,000.00 Grants and contribu- tions 3,002.68 Other 1,538.00 Office of the director of the budget 82,559.40 Office of the division of personnel 108, 029. 70 Retirement administration: Operating 23,932.14 Pension payments 136, 728. 90 Grants and contribu- tions 392,675.00 Office of the probation officer 57, 251. 57 Virgin Islands planning board 137,757.87 Office of the administrative assistant—St. Croix 132, 984. 70 Office of the administrative assistant—St. John: Operating 66, 025. 86 Other 8,584.00 Operation of news bureau . . 174, 688. 72 Governor's antipoverty program 22, 764. 10 VISTA program 70, Oil. 79 2, 061, 396. 82 Office of the government secretary: Operating 320, 421. 08 Other 3,435.00 323, 856. 08 Department of Law $264, 617. 41 $541, 844. 73 $61, 337. 87 15, 639. 10 557, 483. 83 61, 337. 87 24, 827. 84 26, 299. 93 8, 748. 43 38, 630. 02 98, 506. 22 655, 990. 05 61, 337. 87 243, 300. 61 265, 024. 11 37, 395. 51 23, 802. 50 1, 773. 63 89, 854. 58 2, 377. 44 200, 000. 00 3, 002. 68 1,538.00 79. 905. 13 105, 265. 24 23. 932. 14 392, 575. 00 56, 590. 12 134, 791. 78 127, 236. 58 64, 502. 55 8, 584. 00 170, 240. 57 2, 764. 10 68, 754. 51 1, 856, 107. 67 23, 802. 50 312, 031. 24 3, 435. 00 315, 466. 24 $258, 009. 58 $22, 603. 84 22, 603. 84 256.16 2, 247. 28 2, 503. 38 25, 107. 22 4, 341. 09 22, 734. 62 2, 654. 27 2, 764. 46 'i36,'728.'96 661. 45 2, 966. 09 5, 748. 12 1, 523. 31 "4,' 448.' is 1, 257. 28 181, 486. 65 8,389.84 S, 607. 83 105 GOVERNMENT OF THE VIRGIN ISLANDS ALL FUNDS STATEMENT OF STANDARD GOVERNMENT OPERATING EXPENDITURES JULY 1, 1966, TO JUNE 30, 1967 Type of expenditure Total General fund Matching fund Essential Special and projects fund other funds Department of Finance: Operating $1,703,964.34 $1,671,610.26 $32,354.08 Capital improvements 633,400.00 $350,000.00 $43,400.00 240,000.00 Refund of taxes, fees, and licenses 272,862.95 272,862.95 Internal Revenue stamp tax refunds 166.26 166.26 ; Unliquidated encumbrances 3,247.75 3,247.75 Bonding of government officials and employees. . . 6,465.80 6,465.80 Payment of interfund loans and interest 179,510.00 179,510.00 Claims against the Virgin Islands government 24,615.49 15,405.55 9,209.94 Repair and maintenance of finance buildings 16,022.32 16,022.32 Income tax refunds 737,745.39 737,745.39 Law library fund purchases 1,368.50 1,368.50 Sugar cane subsidy 16,327.49 16,327.49 Molasses subsidy 30,303.74 30,303.74 Tax exemption subsidy. .. . 3,264,419.27 3,264,419.27 Interest payments and redemption of serial bonds 501,906.64 501,906.64 Fish and wildlife program . 31,462.73 31,462.73 Semicentennial and Governors' conference . . . 440, 103. 51 440, 103. 51 Grants and contributions . . 2, 505, 303. 00 1, 465, 303. 00 1, 020, 000. 00 20, 000. 00 Other 5, 219. 65 5, 055. 50 164. 15 10,374,414.83 4,373,394.78 1,370,000.00 43,400.00 4,587,620.05 Department of Property and Procurement: Operating 610,160.68 597,545.92 12,614.76 Capital improvements 415, 972. 29 2, 779. 00 3, 398. 00 44, 920. 00 364, 875. 29 Purchase of equipment and advertising for other departments 1,208,524.29 1,144,406.99 64,117.30 Grants and contributions. . 110,000.00 110,000.00 2,344,657.26 1,854,731.91 3,398.00 44,920.00 441,607.35 Department of Health: Operating 5,668,179.63 5,550,546.86 117,632.77 Capital improvements 406,026.22 35,833,42 370,192.80 Public health service 1,764,222.61 1,764,222.61 Implementation of medicare 53, 186. 60 53, 186. 60 Practical nurses training scholarship 39, 894. 73 39, 894. 73 Neighborhood Youth Corps—out-of-school project 372,481.64 372,481.64 Grants and contributions. . 33,261,10 33,261.10 Other 13,451.70 13,451.70 8,350,704.23 5,690,340.99 35,833.42 2,624,529.82 Department of Education: Operating 5,231,927.06 5,134,411.97 97,515.09 Capital improvements 2, 435, 384. 43 42, 493. 98 45, 413. 94 2, 347, 476. 51 New York University project 11,150.00 11,150.00 Peace Corps program 3, 775. 75 3, 775. 75 Vocational rehabilitation... 170,127.93 170,127.93 School lunch program 196,292.62 196,292.62 National defense education. 232,502.69 232,502.69 Special Federal grant to education 45, 440. 35 45, 440. 35 Manpower development andtraining 28,312.67 28,312.67 Rural libraries extension. . . 64,687.88 64,687.88 Vocational education 479,315.65 479,315.65 Headstart program 147,322.25 147,322.25 Adult basic education 42,810.89 42,810.89 106 GOVERNMENT OF THE VIRGIN ISLANDS ALL FUNDS STATEMENT OF STANDARD GOVERNMENT OPERATING EXPENDITURES JULY 1, 1966, TO JUNE 30, 1967 Type of expenditure GOVERNMENT OF THE VIRGIN ISLANDS ALL FUNDS STATEMENT OF STANDARD GOVERNMENT OPERATING EXPENDITURES JULY 1, 1966, TO JUNE 30, 1967 Type of expenditure Total General fund Matching fund Essential Special and projects fund other funds Department of Agriculture and Recreation: Operating $1, 135, 241. 28 Capital improvements 99, 210. 34 Emergency drought relief. . 23, 355. 55 Special conservation activities 29, 974. 41 Sports, fisheries, and wildlife program .10, 523. 06 Grants and contributions. . 76, 470. 19 Other 29, 970. 67 1, 404, 745. 50 Employment Security Agency: Operating 265, 475. 39 Manpower development and training .. - 26,344.65 291,820.04 Unemployment Compensation Administration: Operating 159, 857. 60 Virgin Islands airport and Industrial Resources Agency: Operating 993, 985. 27 Capital improvements 1, 417, 061. 42 2,411,046.69 Virgin Islands Boards of Public Accountancy 182. 28 Commission on human services: Grants to Catholic social center 106,950.00 Total executive and other 60,197,781.74 Total operating expenditures 61, 197, 858. 58 $1, 113, 122. 74 H I— I XXm H PhO H >Oo Q ID HU tfl ai PL, < P < Q O I— I XoH< Q < O t/5h u Q < til a CO > ^ fa a! o < fa H >< Z fa fa <H fa> H< < PL, oo fa fM» 0305 ^^ «0 CO O CC O^ O CD O^ OS^ *^ C^ 0-* OCC CD C^ CD coc^ :?: I u o si >>CO ^CD 03^ ^<o 0352 OS Oi 00 »H f-t O 00 10 10 Oi ^ 00 o t^ »o CD 00 CO CD t^ r- CD OS CO t-^ ^ C^ O t^ Oi 00 OS 10 r^ T-i OS cc »rt t~» t^ OS OS r* 00 O C^ 00 CO CO i:^ CC t^ 00 o -^ CD'-i'i ST-H,-HTPC^TtlCOCOI>> .^ 00 10 -*** O CD r-( 1-1 rt< t-. 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C^ 00 i-H rH CO CO -^ ^ C^ C^ -^ GO OS 00 CO o cT co'^coco oTco w^ 10 ^ ^H CJ 00 «*< (N (N CO CO CO t^ 0» OS CX) CO CO ^io»HcO'^r*cs)co lOfiOi-HiOOiOt^ CO ^ CO id Tli CO *-I t^ ci r>-. <M oir^ T-< (M o "tfl 10 OS O O i-H GO C^ t-- co TjHcoqdcoocoooo 00 CO »0 CD lO 00 1—* OS b* t^ O b- CO C^ O •-< OS CO T-T GO ^c^coodo oTo ^H ^ CO O (>) 1^ CO u3 00 CO (N CO 00 04 O t^ CO 1-H (N CO CO CO ^H »-s ® C05S5S os^oo CO«^OiOO^OS ^ CO ^ ^ ^ CO 0-1 :2S •OOtD ^00 O COt^ D TjJi-i a oogj 03 O 03 = *-• Q^ O -J ti to ia ® a> „, w d «« 5 o S'OpHKHajtrl 111 Q < > o H< PL,O o H< I—I ^^ H c/3 ^< Oh >h ^ /- ^^ HO ccQ CO H O H >Oo (M i-H 1-1 Oi b- cN oTCO .-Tc^" r* CM Tt< CO t> o 1-i t^ lO 00 O CO < OOCD CO^t^-*CO(MCM(M^ O ^ CO -* CO 1-H lO Tj< (M lO «*< i-H O O 00 O: 00 Oi i-H t^ CN 0: lO Oi t^aS'^ lo c4~CO oTooTt-To CO 00CO*O t^ CO O CO GO CO »-H O r-f > H n X < c/7 Office of the Director of the Budget Personnel: 11 At the conclusion of fiscal year 1967, a total of $40,149,215 had been au- thorized in appropriations for operat- ing and special purposes for that fiscal period. General fund receipts applica- ble to fiscal year 1967, including a con- tribution of $5 million from the inter- nal revenue matching fund, totaled $40,792,103. A budgetary reserve of 10 percent was required as a control measure to Operating Appropriation: $90,966 insure that spending would remain within the limits of available funds and to encourage improved fiscal control among individual operating agencies. In the case of certain special appro- priations, allotments were made only as specifically needed. Revenue, appropriation, and allot- ment data for the year are summarized as follows : Revenues and carried forward surplus : Surplus cash balance July 1, 1966 $1, 063, 603 Revenues collected 35, 682, 116 Contribution from matching fund 5, 000, 000 Total 41, 745, 719 Appropriations : Operating and special appropriations 40, 149, 215 Appropriations available until expended (including prior year's appropria- tions) 2, 565, 095 Reappropriation of certain projects 136, 024 Total 42, 850, 334 Allotments : Allotments issued against authorized appropriations 39, 705, 300 Unallotted appropriations 3, 145, 034 Total 42, 850, 334 The Governor's budget document for the fiscal year 1968 submitted to the legislature in January 1967, recommended a total of $43,978,486 for operating appropriations, as com- pared with $47,226,388 requested by the various departments and agencies. When passed by the legislature in April 1967, the operating budget total was $43,193,318, of which the Gov- ernor disapproved items totaling $81,100 and approved $43,112,218. This budget was later increased by $955,647 by act of the legislature and 114 approved in June 1967 by the Gov- ernor. The new total of the 1 968 fiscal year operating budget is $44,067,865. The capital budget recommended by the Governor and passed by the legislature from matching funds totaled $11,999,357 with a contribution of $4,900,000 towards the operating budget as a contribution to the operat- ing budget of the Department of Education. Totals of major revenue increases between 1963 and 1967 are as follows: 1963 1967 Increase (percent) Total revenues $12, 099, 977 $35, 682, 116 194. 90 Income taxes 7, 582, 577 22, 927, 643 202. 37 Real property taxes 589, 553 1, 096, 052 85. 91 Trade and excise taxes 1,084,101 2,396,043 121.02 Gross receipts taxes 832,930 3,926,143 371.37 Gross customs dues 648, 770 2, 499, 471 285. 28 Totals of major operating appropriations for the same period are: Education. . . Public works . Health Welfare Safety Commerce. . 1963 OPERATING AND SPECIAL APPROPRIATIONS Act. No. Departments or agencies Appropriated Allotted Unallotted 1646/1834/1888/1963. 1940 1983. 1738/1992/T 1642 1738/1803 1803/1888 1830 1830 1934 1738/1803/1888/T.. 1738/1803/1888/T.... 1963 1738/1803/1888/1963/ 1983/T. 1738/1803/T 1738/1803/T (') 1738/1803 1738/1803/T 1910 1738/1803/1992 1738/1803 1963 1738/1803 1738/1803/1963/1983/ 1992/1993/T. 1556 The Legislature Study for pay increases for various de- partments. Expenses of reapportionment commis- sion. Office of the Governor Compensation to Magdalene Lynch Antipoverty program VISTA program Christmas cleanup campaign Employment of high school students. . . Purchase price for estate Honduras Governor's contingent fund (To include expenses for Governor's conference.) Operation of public relations and informa- tion office. Office of civil defense Office of the director of the budget Office of the director of personnel Retirement administration Grants and contributions OfiBce of the probation officer Office of the Virgin Islands Planning Board . Study of Christiansted entrance Administrative assistant for St. Croix office . Administrative assistant for St. John office. . For St. John Fourth of July celebration. Office of the government secretary Department of Education 1738. 1738.' 1738. 1738. 1738. 1738. 1738. 1738. 1738. 1738. 1738/1857. 1738 1738. 1738. 1738. 1738/1803/1843. 1738. 1775. 1803. 1803. 1989/1803/T. 1803 1803 1932. Council of arts Grants and contributions: Boy Scouts Sea Scouts Girl Scouts St. Croix museums Virgin Islands museums Community bands Wilmot Blyden scholarship fund- . . St. John scholarship fund, including grants to residents of St. John at- tending College of the Virgin Is- lands Training program Grants for purchase of athletic equipment (Charlotte Amalie High School, Christiansted High School, St. Croix Central High, and Julius Sprauve School) Territorial scholarship fund Teacher training. College of the Virgin Islands. Teacher's award fund Vocational education Manpower Development and Train- ing Act. Scholarship grants for medicine, law, and engineering, 10 at $3,000 each. 2 Vocational rehabilitation Claim of Adina L. Mardenborough and Harry Mardenborough. National Defense Education Act program. Library Services Act of 1964 pro- gram: Title I services, $14,321 Title II construction, .$13,000 School lunch program Adult basic education program In school neighborhood youth train- ing program. Virgin Islands District of the Ameri- can Legion. Grant to Inter-American, San Ger- man, Puerto Rico. $573,000 500 15, 000 309, 724 1,708 22, 756 69, 830 20, 000 20, 000 25, 000 186, 000 176,773 $573,000 103, 232 3,000 296, 224 1,708 22, 456 67, 198 801 25, 000 186, 000 176, 773 5,933 .. 86,257 OPERATING AND SPECIAL APPROPRIATIONS—Continued Act. No. Departments or agencies Appropriated Allotted Unallotted 1963 Improvement to playground, land- $61, 000 scaping and fencing at Charlotte Amalie High School. 1963 Drainage and retaining wall at 4,200 Christiansted High School. 1963 Fencing Christiansted High School . 25, 000 1963 Hardsurfacing playground at Lin- 5,000 coin Elementary School. 1963 Fencing George Washington School . 6, 000 1963 Construction of additional rooms at 100, 000 Tuitt (3), Dober (2), and Herrick (2) Schools. 1963 Construction of additional class- 25,000 rooms at Coral Bay. 1963 Enlarging storage space for school 5,000 lu ch program, St. Croix. 1963 Educational trip for senior classes. . 20, 000 Department of Pubhc Works: 1738/1803/1888/1992 . St. Thomas and St. John activities 4, 051, 841 1830 Health hazard in Frenchtown area. . 10,000 1856 Funds for Sugar Estate Race Track . 2, 500 1888 Improvements of roads, waUs, and 45, 000 extension of sewer lines. 1980 Paving of parking lot in front of 2,500 ' Scout Center. 1963 Repair of damage to the Quay wall 15, 000 fender system. 1738/1803/1888/1963/ St. Croix activities 2, 100, 821. 33 1992. 1790 Funds for Mannings Bay Race Track, 12, 000 St. Croix. 1738/1803/1888/T .... Department of Finance 1, 809, 382 1570 Special temporary sugarcane fund 40,000 1738/1888 Income tax, other tax and license re- 275,000 funds. 1738 Industrial incentive program contribu- 40, 000 tion. 1738 Internal revenue stamp tax refunds .... 500 1738/T Bonding of government officials and 11,000 employees. 1738/1888 Claim fund contribution 9,000 1738 Account for unliquidated encum- 15, 000 brances. 1738/1992 Contribution to unemployment com- 84,746 pensation Administration. 1738 Repair and maintenance of finance 14,000 buildings. 1660/1886/1959 College of the Virgin Islands 1, 054, 477 1741 Grant for instruction in stenotype 7, 000 1759 State Technical Services Act of 1965.... 23,310 1963 Funds to be matched for commercial 6, 833 fishcriGS. 1963 Title I of the Higher Educational Act 8, 683 of 1965. 1825 Contribution to St. Croix aviation fund. 85,000 1930 Contribution to St. Thomas carnival 5,000 1967. 1944 Funds for clearing of debris of Creque 10, 000 Dam. 1738/1803/1888/T Department of Property and Procurement . 681, 715 1738/1963 Contribution to transportation revolv- 80, 000 ing fimd. 1738/T Contribution to surplus property re- 30, 000 volviug fund. 1738/1803/T Promotion and advertisiag fund 122, 400 1830 Purchase of Estate Demerara 28, 400 1830 Purchase of Estate Honduras 30, 000 1894 Purchase of land on King's Hill 47,000 1284 Installation payment for purchase of 5, 000 Estate White Lady. 1738/1803/1888/ Equipment fund 1, 273, 272 1963/T. 1913 Rental of office space for legislature 3, 600 1983 Construction of building for Red Cross 42, 000 office and office space for Department of Property and Procurement. 1738/1803/1888/1963. . Department of Public Safety 1, 939, 692 1738/1803/1888 Department of Agriculture and Recreation. 1, 456, 366 1613 Public television services 2, 000 1738 Funds for track, field, and other sports 20,000 instructions. 1803 Funds for cattle artificial insemination . 7, 500 1803 Additional lights (ball park F'sted) ... 1, 000 1803 All expenses of Board of Supervisors, 5,600 soil conservation program. $61, 000 4, 200 25, 000 5, 000 6, 000 100, 000 25, 000 5, 000 20, 000 4, 051, 840 10, 000 2, 500 45, 000 2, 500 15, 000 2, 084, 613 $16, 208. 33 12, 000 1, 798, 989 10, 393 20, 000 20, 000 275, 000 36, 000 4, 000 450 50 11,000 9, 000 13, 500 1, 500 84, 746 14, 000 1, 054, 477 7, 000 23,310 6, 833 8, 683 85, 000 5, 000 10, 000 675, 325 6, 390 80, 000 30, 000 114, 550 7, 850 28, 400 30, 000 47,000 5, 000 1,252,549 2,000 20, 723 1,600 42, 000 1, 931, 131 8, 561 1,454,866 1,500 2,000 20, 000 7, 500 1, 000 5, 040 560 117 OPERATING AND SPECIAL APPROPRIATIONS—Continued Act. No. Departments or agencies Appropriated Allotted Unallotted 1738 All expenses for roadside tree improve- ment. 1833 Expenses for New York Yankees and Boston Red Sox. 1833 Improvement of recreational site, estate profit. 1888 Improvement of recreational park, Grove Place, including lighting of basketball court. 1888 Installation of lighting facilities at base- ball park, St. Croix. 1922 Funds for farmers and fishermen 1922 Funds for agricultural revolving fund . . 1963 Construction of bridge over pond at Magens Bay. 1963 Fresh water wells with pumps 1963 Additional salt water pumps 1963 Replacement of old or wornout equip- ment. 1992 All expenses for erection of steel building. 1922 Matchable contribution for outdoor recreation project. 1738/1803/1888/1963/ Department of Labor 1988. 1738/1803/1833/ Department of Commerce 1854/1888/T. 1738 St. Thomas Golf Association 1738 Caribbean Tourist Association 1738/T Promotion of fishing and water sports. . 1738/T Virgin Islands Community Action Council. 1854 Contribution to St. Croix Christmas festival. 1738/1803/1888/1983. . Department of Social Welfare 1929 Day Care Center and subsidy program . 1992 Expenses for Commission on Aging .... 1738/1803/1888/T .... Department of Health 1717 Television services to all hospitals 1738/T Insular contributions to formula grants . 1738 Contributions to health scholarship fund. 1738 Implementation of medicare program (Transferred to the operating account.) 1738/1803 Repairs and maintenance of hospitals and health buildings. 1790 Implementation of medicare programs . 1961/1962 Purchase and construction of prefabri- cated building. 1963 Matchable contribution for maternity and infant care. 1738/1790/1803/1888. . Department of Law 1738/1803/1962/T Department of Housing and Community Renewal. 1803 Grant to Virgin Islands Housing Au- thority. 1803 Grant to emergency housing revolving fund. 1803 Grant to Peter's farm revolving fund. . 1803 Grant to Virgin Islands Urban Renewal Board. 1888 Grant to homestead and home loan fund. 1931 PoUyberg community development .... 1738/1803/1888 Municipal Court of the Virgin Islands 1738 Office of the Supervisor of Elections 1738/1803 Board of elections—St. Thomas. 1738/1803 Board of elections—St. Croix 1738/1803 Board of elections—St. John Miscellaneous: 1738 Installment payments on land pur- chased or to be purchased under exist- ing legislature authorities. 1738 Repayments of principal and payments of interest on intergovernment funds loans. 1738/T Summer employment 1738 Teacher development and training 1803 Reduce "installment payments on land purchased or to be purchased under existing legislature authorities" by. 1738/1803 Change language of "salary increases (lower grades)" to read "for salary increases authorized by Act No. 1609 and sec. 3 of this Act, and increase by. 1888 Commission on the Status of Women . . . $15, 000 $15, 000 20, 000 20, 000 5, 000 2, 000 100, 000 20, 000 50, 000 20, 000 5,000 550 5,000 50, 000 35, 786 355, 251 1, 501, 617 6,000 15, 000 38, 500 13, 050 5,000 2, 150, 908 50, 000 15, 000 5, 716. 488 2,000 494, 539 40, 000 30, 000 100, 000 10, 000 275, 249 300, 956 342, 457 10, 500 10, 000 10, 000 25, 000 50, 000 150, 000 272, 103 47, 982 30, 600 33, 260 10,115 128, 400 256, 090 200, 000 -67, 000 1,365,000 350, 467 1, 455, 485 179,510 197, 644. 20 200, 000 470, 650 $5, 000 2,000 100, 000 20, 000 50, 000 20, 000 5,000 550 5,000 50, 000 35, 786 4,784 46, 132 6, 000 15, 000 38, 500 13, 050 5, 000 2, 091, 234 59, 674 50, 000 15, 000 5, 716, 488 2, 000 494, 539 40, 000 30, 000 77, 527 22, 473 10, 000 150, 000 125, 249 297, 028 3, 928 341,707 750 10, 500 10, 000 10, 000 25, 000 50,000 150, 000 269, 383 2, 720 47, 002 980 30, 063 537 32, 593 657 9,953 162 128, 400 58, 445. 80 "-67,000 894, 350 5,000 5,000 Totals 40,149,215.33 38,391,172.20 1,758,043.13 118 APPROPRIATIONS AVAILABLE UNTIL EXPENDED—Continued Act. No. Departments or agencies Appropriated Allotted Unallotted The legislature 1698 Special committee to study pay plan . . . 1850 Expenses for reappropriation of the legis- lature. 1853 Expenses for the Virgin Islands Home Rule Committee. 1938 Vu-gin Islands D ay in continental United States. 2026 Virgin Islands Citizenship Day Com- mittee. Ofllce of the Governor 1503 50th anniversary of the transfer of the Virgin Islands. 1257 Airport study 1589 Veterans assistant for education 1728 Acquisition of land at Estate Bovoni for horseracing track. 1733 Caribbean Economic Development Corp. 1587 Flood and soil erosion control study 1887 Virgin Islands march 1907 Survey and analysis of personnel system (Available Until December 1967). Department of Public Works 973 Purchase of land at Brewers' Beach— 977 Potable water at Grove Place 1172 Construction of wing at Carenage Clinic. 1257 New airport study and acquisition of land. 1375 Hardsurfacing of St. Peter Mountain Road to Hull. 1377 Public improvement, St. John. 1379 Purchase of land for PWD, St. John (post office) . 1382 Concrete paving of Altona Well AUey _ . 1719 Public comfort station. 1718 Naming of all unnamed streets 1722 Extension of street lights and power Unes. 1725 Construction of a concrete wall along the municipal cemetery. 1727 Construction of bus shelters 1914 Study of modern lighting for the Virgin Islands. 1926 Repairs and improvements to Old Diamond School for the Boy Scouts. 1926 Construction of sewerage treatment unit. 1009 Fishmarket at French Town Department of Property and Procurement 858 Acquisition of land for pubUc scenic highway. 912/1170 Funds for property acquisition (Estate La Grange, $80,000) (Ross Estate, $5,000) 1924 15 percent differential in purchases or contracts. 1973 Purchase of land at Estate Thomas 2017 Purchase of land at Estate La Grange. . Department of Social Welfare 1704 Sewing project for St. John Department of Education 1753 Study leave for Dr. Melvin Evans 1993 Summer employees and repairs to edu- cational building, St. Croix. 1993 Summer employees and repairs to edu- cational building, St. Thomas and St. John. Department of Health: 1073 Temporary health insurance 1575/1753 Educational program for retarded children. 1871/2015 Emergency needs for Charles Harwood Memorial Hospital. 1935 Practical nursing training program 1786 Practical nursing training scholarship program. Department of Finance: 1467 Unliquidated encumbrances 1821/2008 Funds for the Semicentennial and Governor's Conference (until Mar. 31, 1968). 1927 Moderate income housing program 1810 Assistance to livestock raisers (emer- gency drought relief) . $5, 000 35, 000 $30, 000 20, 000 20, 000 5, 000 5, 000 3, 000 12, 296 12, 296 10, 000 10, 000 10, 000 2, 000 5, 000 5, 000 15, 000 40, 000 50, 000 15, 000 300, 000 21, 000 25, 000 40, 000 10, 000 30, 000 15, 000 1, 000 15, 000 20, 000 30, 000 5, 000 20, 000 20, 000 40, 000 25, 000 25, 000 100, 000 74, 832 69, 832 20, 000 10, 000 34, 000 10, 000 10, 000 3, 000 3, 000 50, 000 50, 000 1, 000 6, 667 $5, 000 5,000 182, 500 35, 000 35, 000 5,000 654, 000 100, 000 25, 000 5,000 5,000 3,000 10, 000 2,000 5,000 5,000 15, 000 40, 000 50, 000 15, 000 300, 000 21, 000 26, 000 40, 000 10, 000 15, 000 1,000 15, 000 20, 000 30, 000 5,000 40, 000 100, 000 6,000 20, 000 10, 000 34, 000 50, 000 50,000 1,000 6,667 32, 500 150, 000 35, 000 35, 000 5,000 654, 000 100, 000 25, 000 119 APPRAPRIATIONS AVAILABLE UNTIL EXPENDED—Continued Act. No. Departments or agencies Appropriated Allotted Unallotted 1944 Funds for emergency drought relief Department of Housing and Community renewal: 955 Transfer of land at Estate Profit 1712 Subdivision of Estate Bordeaux 1716 Housing for Virgin Islands veterans Department of Agriculture and Recreation: 1410/1586 Public Beach at Fort Louise Augusta. . 1214 Development of land for baseball and Softball field. 1946 Improvement of John Brewers' Bay 2009 Emergency drought relief fund Department of Public Safety 1733 Protective Clothing and Equipment . . . 1942 Employment of Women as School Crossing Guards. Supervisor of electio ^s 1988 Checkups of each registered elector Totals $10, 000 $10, 000 15, 000 44, 800 20, 000 100, 000 50, 000 75, 000 3, 000 50, 000 30, 000 2, 000 10, 000 10, 000 2, 565, 095 1, 294, 128 $15, 000 24,800 50, 000 75,000 3,000 50, 000 30, 000 2,000 10, 000 10, 000 1,270,967 REAPPROPRIATIONS OF CERTAIN PROJECTS Act No. Departments or agencies Appropriated Allotted Unallotted Department of Labor 1394 Memorial to Virgin Island war veterans. Department of Public Works St. Thomas and St. John activities. 1403/1764/1939 Headquarters for Girl Scouts 1422/1483/1764 Substation for fire division. Grove Place. 1422/1483/1764 Paving road to clinic and substation . 1422/1483/1764 Paving road to Estate Profit 1422/1483/1764 Construction of building for USO . . Department of Health 1417/1764/T Health clinic at Estate Profit Department of Social Welfare 1417/1764 Day Care Center at Estate Profit, St. Croix. Totals. $5, 000 60, 000 1,024.04 15, 000 25, 000 20, 000 5,000 5,000 136, 024. 04 $20, 000 20, 000 $5, 000 60, 000 1, 024. 04 15, 000 15, 000 5,000 5,000 116, 024. 04 Grand totals 42,850,334.37 39,705,300.20 3,145,034.1 T= Transfer of funds. The following is a 5-year compara- Revenue tive statement of gross U.S. Internal imports: taxes on Virgin Islands 1963 Fiscal year 1964 1965 1966 1967 July $442, 536 August 641,487 September 818,766 October 762, 835 November 700,863 December 585, 889 January 605, 587 February 480, 814 March 538,444 April 606,805 May 721,067 June 716,191 Totals 7,601,284 $686, 251 871,291 713,410 829, 433 654, 639 764, 968 549, 120 604, 461 596, 306 621, 743 692, 878 817,391 $806, 558 903, 044 747, 812 928, 579 804, 967 1, 144, 119 882,571 577, 393 945, 323 711,065 1,011,696 1,051,229 $1,017, 106 994, 581 943, 490 1, 004, 206 934, 991 1,267,740 902, 184 713,688 775, 470 939, 362 788, 776 914, 333 $814, 306 1, 183,844 983, 688 1,065,091 1, 070, 471 840, 007 1,631, 199 862, 455 899,451 787,711 1, 247, 709 1, 142, 049 8,401,891 10,514,356 11,195,928 12,491,981 120 The following is a summary of Internal Revenue matching fund appropriations : Exhibit B MATCHING FUND PROJECTS REPORT FISCAL YEAR 1967 AUGUST 8, 1967 Act No. 1737 (bill No. 2727) $11, 925, 000 Act No. 1800 (bill No. 3011) Act No. 1851 (bill No. 3168) Act No. 1860 (bill No. 3178) '.'.'.'.'.'.'.'.'.'.'.'. 11, 925, 000 Appropriated by the legislature 11, 925, 000 Available from U.S. excise taxes and released by the office of territories 11, 073, 732 Overappropriated 851, 268 The following projects or part of projects remain unreleased and have been frozen: 1. Bond principal and interest 189, 968 2. U.S. geological survey 12, 500 3. Demerara 50, 000 4. Urban renewal, St. Thomas 39] 300 5. Golf course 80, 000 6. John Brewer's Bay 50, 000 7. Urban renewal, St. Croix 94, 500 8. Frederiksted fort 50, 000 9. Government house, St. Croix 10, 000 10. Beach north of Frederiksted 50, 000 11. Clinic, St. John 100, 000 12. Repairs to old post office, St. John 25, 000 13. Water distribution, St. Thomas 100, 000 Total 851, 268 Project No. Account No. Project description Appropri- ated Released and allotted Unallotted VI-29-7. VI-30-7 VI-31-7 Project No. Account No. Project description Appropri- ated Released and Unallotted allotted ST-193-7. 1737 Project Department of Housing and Community Renewal Personnel: 49 Housing has been referred to fre- quently as the Virgin Islands number one problem. Hundreds of Virgin Islands families still live in substandard dwellings because of a shortage of standard housing at rental or purchase prices they can afford. Although the government's efforts over the past 6 years have produced major advances in housing, limited funds have prevented the operation of a bigger and more dynamic program to meet the increasing demands of resi- dents for better living conditions. The recent introduction of large low- cost developments by private develop- ers, however, is expected to alleviate the conditions to a great extent. Emergency Housing Program During the fiscal year 1966-67, 239 emergency housing applications were filed on St. Thomas. In St. Croix, a total of 420 applications, representing 1,565 persons, filed during the same period. At the end of the fiscal year, 1,627 applications were on file. Of this total, 830 applications representing 3,521 persons, were filed in St. Thomas and 797 applications, representing 2,691 persons, were filed in St. Croix. Operating Appropriation: $342,457 Homestead and Home Loan Program^ The homestead and home loan pro- gram is comprised of the following five subprograms: Homestead, home loan, cistern loan, veterans loan, and sale of emergency housing single-family units. Hom.estead Program^ During this reporting period, 54 plots were allocated throughout several homestead areas. Forty-eight contracts have been executed and six are pend- ing. These 54 plots consist of a total of approximately 25.235 acres, and the sales value of land allocated amounted to $46,472.15. Twenty deeds of conveyance were issued during the year, with a sales value of $16,364.02. Eighteen waivers were executed which permitted home- steaders to mortgage their land in order to receive construction loans or to transfer title to other persons for the purpose of constructing homes thereon. As of June 30, 1967, there were 788 applications on file for homestead land. Of that number, 139 applications were filed during the fiscal year. 124 The Virgin Islands Housing Authority oversees the construction, maintenance, and management of the islands' federally assisted public housing projects such as this one under construction in St. Croix. Home Loan Program Six construction loans were ap- proved during this reporting period, totaling $57,000. Payment was com- pleted on two loans and the mortgages were canceled. A total of $19,166 was recovered representing interest income. There were 28 applications on file for home construction and improvement loans at the end of the year for an amount of $246,300. Cistern Loan There were three open accounts for loans granted under this program with an outstanding balance of $1,242.52. As of the end of the report- ing period, five applications were in process for the sum of $5,000. Veterans Loan Frogram Rules and regulations governing this program were approved on March 16, 1967. As of June 30, 1967, there were 16 applications filed for assistance in construction of homes. Sale of Emergency Housing Single-Family Units Act No. 986, approved March 26, 1963, grants occupants of single-family units in emergency housing projects a first priority to purchase housing units which they occupy, and rules and regu- lations pertaining to this act were approved on April 10, 1967. Staff workers are preparing the necessary documents, gathering information and securing appraisals on the first 13 282-343 O - 68 125 houses to be sold under this program. It is expected that the first certificates will be issued in the very near future. Community Developm^ent Projects During the year, the two remaining houses in the Altona community de- velopment were released by the De- partment of Public Works. The re- maining 20 parcels were allocated, and 19 contracts were executed. Of a total of 31 superficiary houses which were purchased in Altona, nine were ac- quired during the fiscal year, and 20 were demolished during this reporting period. A comprehensive development plan for estate profit was completed during the year. Also, the community center is now completed and is being used for Headstart, VISTA programs and for other governmental purposes. Land in the Demerara-Honduras areas is being purchased by the local government, and an orderly develop- ment plan for the areas will be acti- vated within the next fiscal year. A preliminary subdivision plan for the first 45 acres at Estate Bordeaux was completed during the year by the firm of McClintock & Thun. This land will be retained for the next major housing development, and other par- cels in this area will be subdivided for homestead land distribution. Rent Control Agency In the fiscal year 1966—67, 74 peti- tions were filed with the Rent Control Agency. Of this number, 63 petitions were filed in St. Thomas, and 11 in St. Croix. Six were filed by landlords who sought to have established maximum monthly rentals for their properties. Formal inspections and hearings were conducted, and appropriate or- ders issued in all these cases except four on St. Croix that remained on the calendar pending additional informa- tion pursuant to the requirements of the rent control law. Below is a table of comparison showing the activities during fiscal years 1963 to 1967: ^h:^- A one-family dwelling on St. Thomas, typical of those being constructed in the islands through a cooperative program between the government and private business. 126 63 the situation since it requires employers of bonded servants to provide the nec- essary relocation facilities. The conservation workload remains heavy (54 structures) since the major- ity of the property owners are of lim- ited financial means and the condition of the structure is such that rehabilita- tion expenses are high, ranging from $10,000 to $40,000 per structure. In many instances, it is more feasible to construct than to renovate. The Board hopes to provide some relief in this sit- uation by taking advantage of the re- habilitation loans of $10,000 per dwell- ing unit being made available by the Federal Government over a period of 20 years at 3-percent interest. One im- portant contribution to the conserva- tion effort was the construction of a 50-room hotel and the contemplated expansion of this development in 1967. Lagoon Street, Frederiksted, St. Croix This is a total clearance program en- compassing 3 acres. During the year the Board relocated the three remaining families in the area and scheduled all structures for demolition. It was origi- nally decided to subdivide the land into plots for sale to former property owners for the construction of individual homes. Plans are being revised, how- ever, so that one section will be devel- oped for commercial purposes and another section for 65 units of middle- income housing under the 221(d) 3 program. It is expected that actual construction in the area will begin by the early part of 1968. Taaneberg-Ross, St. Thomas Part I, application for loan and grant was filed with the Federal Gov- ernment in June, 1967. If approved this plan will reserve $2 million in capi- tal grants and will provide for the ac- quisition of a large tract of land on which many superficiary homes now stand. This land will be subdivided and sold to the owners and occupants of superficiary homes in the area in order to encourage individual home owner- ship. The plan also will allow for the conservation and rehabilitation of all substantial structures in the area. The preparation of the application involved considerable work, such as engineering surveys, property appraisals, house-to- house surveys, cost estimates, and finan- cial plans. It constituted a major part of the urban renewal efTort during the year. Housing Authority The John F. Kennedy project, a 200- unit complex on St. Croix, was com- pleted in June and fully occupied dur- ing July. Construction was started on 60 additional units at Marley Homes in St. Croix and, as of this writing, the project is 42 percent completed. Bids were opened for a project con- sisting of 138 units to be located at Lindberg Bay in St. Thomas. The proj- ect was successfully negotiated in May 1967, and forwarded to the Depart- ment of Housing and Urban Develop- ment in Washington for approval. It is expected that approval will be granted and construction will begin in the near future. Bids were received for a 24-unit ad- dition at Berg's Homes in St. Thomas. The bids were too high, and the project is being negotiated. Promotional efforts for turnkey projects which were started in April 1966, bore fruit during the year. West Indies Enterprises submitted a proposal to construct 300 units in St. Thomas and 300 units in St. Croix, and King's Hill Corp. submitted a proposal to construct 36 units in St. Croix. The proposal submitted by West Indies En- 128 terprises was approved, and construc- tion is scheduled for the fall of 1967. Drawings for a project consisting of 100 units to be located at King's Hill, St. Croix, have been completed. Management During the year the Authority had 1,294 units under management. One unit in St. Thomas and another in St. Croix were used by the Department of Health as clinics. The services of VISTA volunteers were obtained, and children of tenants were organized into groups of 15 for prekindergarten learning experiences. A Scout pack has been formed in the Oswald Harris Court project and efforts are being made to establish others in other projects. An attempt is being made to reacti- vate a recreation program, initiated in 1965 and suspended in the fall of 1966. It was supervised by the Department of Recreation. Gov. Ralph M. Paiewonsky, visits a VISTA volunteer project site on St. Croix. Here and at similar centers on St. Thomas and St. John, volunteers in serv- ice to America are providing guidance and training for the social and educational de- velopment of island children. 129 Department of Property and Procurement Personnel: Permanent: 79 Temporary: 16 Continuing growth of the Depart- ment of Property and Procurement and expansion of its responsibilities and functions marked the fiscal year 1967. Personnel in the accounting di- vision increased by approximately 20 percent over the previous fiscal year, and another section of the department was required to accommodate its grow- ing staff. In addition to administering the op- eration appropriation accounts for the Department of Property and Procure- ment, the accounting division also was responsible for handling the equipment accounts for the various departments and agencies of the government of the Virgin Islands. The allotments issued to the equipment accounts amounted to $1,383,017. Approximately 1,300 requisitions were issued during the fiscal year against these accounts, totaling approximately $1,325,000. Expenditures from the accounts for various departments and agencies of the government for advertising and promotion, also administered by the department, were in excess of $70,000. Allotments came to $114,550. Here again, the accounting division was di- rectly responsible for the preparation and processing of requisitions and other documents against these accounts. Operating Appropriation: $810,224 The activities of the Virgin Islands Board of Tax Review, transferred from the Office of the Government Secre- tary to the Department of Property and Procurement, were performed in accordance with act No. 1630, ap- proved March 31, 1966. The board handled approximately 1,700 cases relative to real property assessments for fiscal year 1965. The board issued a determination that no appellant should pay more than 33^3 percent over his fiscal year 1964 assessment. The engineering staff participated in a number of professional activities, some in conjunction with the public works engineering division and others independently. Projects on which staff personnel worked included: Improve- ments to the Harry S. Truman Airport, Contant housing, hospital ground housing, new bandstand, mental health building, Mandahl Road, and addition to Government House. Total allotments for all activities of the department amounted to $675,325.00 and operating expenses were $590,296.73. These figures do not include amounts entrusted to the de- partment for promotion, advertising, and equipment for other departments and agencies. 130 Division of Procurement and Supply The division of procurement anu supply processed an unprecedented number of purchase orders, reflecting the continued growth and expansion of the local economy during fiscal year 1967. The bulk of purchases made were normal, routine transactions. The num- ber of purchase orders processed dur- ing the fiscal year amounted to 15,948, with a dollar value of $14,065,551.52. This compared to 13,718 purchase orders in fiscal year 1966, with a dollar value of $13,757,796.59. Included in this year's total were 2,008 supply con- tracts amounting to $4,136,971.60, which included several term contracts : 40 construction contracts amounting to $3,654,311.44 and 14 professional contracts amounting to $154,799.62. There were also 307 miscellaneous contracts totaling $1,217,673.26, of which 250 were purchases made under existing contracts of the General Services Administration, totaling $317,761.50. There were 13,329 direct open market purchases amounting to $4,584,334.10. The number of pur- chase orders issued does not cover requisitions for over-the-counter pur- chases under $50. The largest contract awarded dur- ing the fiscal year was to Chicago Bridge & Iron Co., in the amount of $855,000, for the erection of three 10-million-gallon water tanks. Two tanks are to be installed on St. Thomas and one is to be on St. Croix. Central Warehouse sales amounted to $93,841.02, an increase of $16,- 613.50 over fiscal year 1966. The department is trying to acquire more warehouse space which is urgently needed. Most of the items purchased by the warehouse were from General Services Administration . Plans are being finalized to use the Puerto Rico store of General Services Administration, which will undoubt- edly result in freight savings and a faster turnover of stock items. Division of Property, Weights and Measures During the fiscal year, several par- cels of land were acquired by the gov- ernment. The largest purchase was made from the United States, repre- sented by the administrator of General Services Administration. In this trans- action, the submarine base was ac- quired for a sum of $3,540,600. A purchase also was made from the United States through which 1.719 acres at Estate Ross was turned over to the Virgin Islands Housing Author- ity for the construction of a home for the elderly. Also, 3.25 acres at Estate Honduras were purchased for $155,000 for housing purposes. A quitclaim deed and access road easement were negotiated between Harvey Alumina, Inc., and the government of the Vir- gin Islands involving 25 acres of land on St. Croix. The printing section of the depart- ment operated at capacity in meeting the demands of various departments and agencies. Among the outstanding jobs were the Governor's annual budg- et, booklets and calendars for the Department of Health, and annual reports for various departments. The weights and measures program has proven to be very eff"ective. Throughout the year, weights and other equipment were obtained to verify large-capacity scales throughout the islands. Constant checks now are made of all grocery stores, supermar- kets, gasoline stations and other busi- nesses to insure that they are complying with the law. 131 Surplus Property During the 12-month period, $130,- 129.06 worth of surplus property was received by the Virgin Islands State Agency. Among the items were trucks, lathes, jeeps, refrigerators, beds and mat- tresses, and office and electronic equip- ment. In addition to surplus property activities, the Puerto Rico office has been helping various departments and agencies to solve their purchase prob- lems. The Office has been of great as- sistance to the Department of Finance in connection with outstanding transac- tions and related credit problems. Division of Transportation During the fiscal year, 94 motor ve- hicles were assigned to the division of transportation, an increase of 24 ve- hicles over fiscal year 1966. In addition. 21 other vehicles of General Services Administration, U.S. Comptroller's Of- fice, and U.S. Immigration and Nat- uralization Service are being serviced and repaired by the division. Along with the duties of providing the departments and agencies with reg- ular daily transportation, the division transported many dignitaries and other visitors during the semicentennial cele- brations and on other occasions. Eight trainees of the neighborhood youth program were accepted by the division with excellent resutls. Four of them have left the island to continue training in the United States, and two others were employed as mechanic helpers by the division. The operation of the motor pool in St. Thomas has proven to be satisfac- tory, and steps will be taken during the next fiscal year to start a similar opera- tion on St. Croix. Funds for this pur- pose have been appropriated. 132 Department of Law Personnel: 29 During the period July 1, 1966, to June 30, 1967, the function of the De- partment of Law as the legal arm of the government reflected the general increase and expansion of governmen- tal activities in all areas. The increase in cases before the municipal courts has added- consider- ably to the workload of the depart- ment. More than 7,000 matters were handled by the four divisions of that court. In the district court, the depart- ment represented the government in 19 cases, including income tax and con- demnation matters. Before the third circuit court of appeals, the govern- ment argued the appeal from the judg- ment of the district court of the Virgin Islands declaring the watch production tax invalid. No decision has as yet been rendered by the appellate court. In October, the court did reverse the judg- Operating Appropriation: $300,956 ment of $550,000 in damages awarded by the district court against the govern- ment in a personal injury case and re- manded the matter to the lower court for a jury trial. Apart from the routine preparation of contracts, leases, and regulations, the department provided special services in the fields of labor relations, housing and urban renewal projects, industrial in- centives, taxation, and bond and note financing. The department's activities also included the handling of an in- creased number of reciprocal support cases as well as claims against the government. Over 200 legislative items were drafted, and approximately 150 attor- ney general opinions were written at the request of the Governor, the legis- lature, and various departments and agencies of the government. 133 Department of Public Safety Personnel: 329 The Department of Public Safety exerted considerable efforts during the year to increase departmental effi- ciency. Through inservice training programs, such efforts have shown appreciable results. With additional funds, the depart- ment was able to increase the staffs of various divisions and subdivisions. Ad- ditional personnel were added to the accounting, police, fire, and detective divisions, enabling the department to meet the increasing demands for safety services more effectively. Police Division With an accelerated recruitment drive most vacant positions within this division were successfully filled during the year. In compliance with Bill No. 2799, passed by the legislature on March 1, 1966, a basic training course was estab- lished for all new appointees to the police division. From April 1966 to June 1967, a total of 28 men and women recruits received 120 hours of training each. During the period covered by this report, 46 men and women were given in-service training on St. Thomas, 45 men and women on St. Croix, and nine men and women on St. John. Within the department, police train- ing programs now operate on a divi- sional level, with activities housed at Operating Appropriation: $2,042,652 the former submarine base on St. Thomas. The division occupies the second floor of a building there, utiliz- ing a 1,000-square-foot area that pro- vides classroom and office space. On the third floor the division has the use of another large room which serves as a dormitory for men enrolled in various training programs from St. Croix and St. John. In cooperation with the College of the Virgin Islands, plans are currently underway to establish a police science program that is to eventually lead to a fully developed, degree-awarding course of study. With a view towards long-range planning, the department established a police cadet corps designed to serve as the primary source of manpower for the police division. In cooperation with the Department of Health, a medical self-help training course was offered to members of the police division. Inservice training ef- forts further saw the Federal Bureau of Investigation conducting classes for supervisory members of the force. Se- lected personnel from the Insular Investigation Bureau attended classes in criminal investigation at the New York City Police Academy, with one detective enrolled in a narcotics analy- sis course in New York. The addition of new patrol cars in the patrol bureau and unmarked cars 134 for the detective section, resulted in Bureau of Criminal Investigation greater departmental efficiency as well as improved police protection for all . ^^^ number of available positions residents. ^^ ^^^^ Bureau was increased. As an Rules and regulations of the police incentive to improve the calibre of de- division were implemented during the tectives, the following grades were year which will serve as useful tools to instituted: Third grade (corporal's enhance the disciplinary machinery of salary), second grade (sergeant's sal- the department. ^^)' ^nd first grade (Heutenant's Mounting traffic problems through- salary) . out the islands occasioned a traffic sur- ^ ^^^^^ ^^ 2,160 criminal cases was vey, conducted in April 1967. Two handled by the bureau during the year, traffic experts from New York City ?^ addition, 77 juvemle cases were 1 , , handled, were employed under contract to con- t^i • i -r- • . ^ J ^ / J J. ^ . . . , -I ne identihcation unit fingerprinted duct a study oi traffic situations m the , 7nn j ioa r • • . , , ^, , , - l,7yy persons and 134 cases of missing islands. The study covers proposals for ^^^/^^ ^^^^^^ p^^^^^^ ^^^^ .^^^^^._ the location of public parking and off- g^ted. A total of 1,104 firearms were street parking areas ; recommendations registered or rereo-istered for the improvement or widening of The following charts summarize the existing streets; and recommendations types of cases handled by the bureau for the establishment of new streets and give a 5-year comparison of total and ofTstreet loading areas. cases investigated : NUMBER OF CRIMINAL CASES HANDLED—FISCAL YEAR 1967 Types St. Thomas, St. Croix Total St. John Criminal homicide Manslaughter Manslaughter by negligence Rape Robbery Aggravated assault and battery Assault 1st degree Burglary Petit larceny Grand larceny Extortion Other assaults Mayhem Forgery Embezzlement and fraud Weapon possession Prostitution and commercialized vice Sex offenses (sodomy) Offenses against family Narcotic drug 1 aws Vagrancy Gambling and vagrancy Disorderly conduct Gambling Stolen property All other offenses Auto theft Total 135 2 5-year comparison—Total number of crimi- nal cases handled: 1963 1,427 1964 1,078 1965 1,680 1966 2, 105 1967 3,676 Highway Patrol Bureau An additional 27 men and women were employed to fill vacant and new positions within the bureau, thereby assuring greater coverage of school areas by the patrol section. The bureau administered 4,170 written drivers ex- aminations and 1,248 roadtests. Due to the increased requests for drivers' writ- ten tests during the year, these exami- nations were scheduled twice weekly. In the 12 months covered by this re- port, there were 2,574 traffic accidents, 717 persons injured, and 15 persons killed. The number of stolen vehicles numbered 254, of which 149 were re- covered. The following chart shows the con- tinuing upward trend in the registra- tion and licensing of motor vehicles in the Virgin Islands over the past 5 years : 136 MOO'^OiCDOC (MOS OOSOS tJ* OS <© i-H •^ O OS t^ CO CC (M t>- CO CO (N i^OO-^iO i-H >- Tf< O O CC lO T-H < lO lO oo t^ t^iC (M ^ CO CO 1-1 lO CO CO O lO 05 GO N OS W to Oi lO CO O tH CD lO t^ CO CO t- 1—I 1—I T-H Tt< i-H CO CO OS 00 OO'^C^^OSi—li—(COCO Oi|>^^ CO(NTf< {^ COCO"-"^ (M i-< <>» i>-co r^co CO CO O Tj4 <M 00 CO OS co" ^"co" OlOTHTt<r-lTj<t^Tt<CO^CD COOOCOCOOSt^iOCO'^'S^CO CO CO Tj< rj< CM CO 2 CO i-Tco't-^co'oTc^T COCO'^t-^'^Ir^COOCOOSOS lOC^lCC^-* -._.—-_! !>-COCO ^^ lO (M 00 -^ '^ 1-H CO CO "-I jTj >-< c^) o o CM ":> CO i-i ^'CO CO 1-H _, _ _ CM ":>co— I C3 '-' O CO 00 CO OS o T-T co"CO cm" co" iTi" COCOiOCMt-^OCM-^COCOCO OI>-OSOOcOi—lOSOCOOJ"-! OCO OS i-l CM CM CO w^ '^ CC "^ O'i Oi tr^ lO CO CO CO O CO CO ,-1 O Tt< Tf< t- io CM cT i-h" cm" ^jTj_r c^"00 OOOSl^^COOSi-C^COC^f Tt<coo^ cMoioo f;r OSi-HOS^ »-H CSI CO locM-i-r O CO 00 i-( tH OS CM OS t> !-; o CO ^ Tt< CO O OS OS O Tj< -^ oT i-Ti-Tco"CO TjT i>r COCMCMCOr^COOS^HCMrJi COi-HOCOCMiO^CO^TjH T-H CO tr! CO CD CO OS t^ OS O »-i O CM -^ oo" cm^co'cooTcm" §5-3 i , M 03 ri 3 g-So S.-S o o Oo '•cSBaSo^^: O S S •!- S Si-san 137 Law Enforcement The following chart shows a com- ties of the police division for the past parison of the law enforcement activi- 5 fiscal years: COMPARISON BY FISCAL YEARS, ACTIVITIES OF POLICE DIVISION 1963 1964 1965 1966 1967 Criminal cases reported—all Virgin Islands: (a) Handled by foot patrol Bureau: St. Thomas and St. John 306 2, 122 2, 192 2, 337 i 480 St. Croix 432 581 334 584 1, 036 (b) Handled by Bureau of Criminal Investi- gation 1, 427 1, 078 1, 346 2, 105 2, 160 (c) Traffic violations brought to court: St. Thomas and St. John 1, 952 2, 721 2, 928 3, 947 4, 521 St. Croix 1, 274 1, 521 1, 728 1, 238 10, 137 1 Patrol bureau handled less cases than last fiscal year period, Bureau of Investigation took over more cases. Money Money Money not reported recovered recovered stolen St. Thomas and St. John $144,510 $22,424 $122,086 St. Croix 47,276 9,095 38,182 Total 191,786 31,519 160,268 Office of the Marshal the large number of documents that The 16 employees appointed to this must be processed by the Marshal's section enable the effective handling of office. DOCUMENTS SERVED BY U.S. MARSHAL St. Thomas St. Croix Total Civil subpenas Criminal subpenas Civil summons Criminal summons Warrants of arrest Conciliations Orders to show cause Writs of restitution Writs of execution Writs of attachments Automobile liens All others (citations, etc.) Total Properties sold for nonpayment of real property taxes Amount collected for above sale 138 413 Business Inspection Office License enforcement officers in- spected 736 locations for which appli- cations for licenses were made. These officers also regularly inspected 916 es- tablishments for the posting of licenses and for their compliances with the Civil Rights Act. Fire Division During the fiscal year, the fire divi- sion responded to 483 fire calls. The total estimated dollar value loss was $1,495,175. Of this amount $500,000 represented the loss suffered by the Alexander Hamilton Building in Chris- tiansted, St. Croix. The comparative figures below show the number of fires and dollar value loss for each year beginning with fiscal year 1963: Fiscal year Number of fires Losses 1962-63 warded to Guadeloupe. In addition, drugs and miscellaneous cooking equip- ment were also purchased and de- livered. In May 1967, a civil defense adult education program was instituted in the islands. Working in collaboration with the Insular Department of Edu- cation, and the Department of Health, Education, and Welfare, a State plan was developed under which the latter Federal agency is to provide funds for the training of volunteers in radiologi- cal monitoring and in personal and family survival. The development of plans and spe- cifications in connection with the con- struction of a modified protected Emergency Operations Center at Fort Christian, St. Thomas, progressed at an accelerated pace during the year. A phase I, project application was sub- mitted to, and approved by the Office of Civil Defense, region I. Agreements covering the design of the facility were approved by the Department of Law and the Department of Property and Procurement. These preliminary plans were forwarded to the Office of Civil Defense, region I for review and ap- proval. A project application requesting Federal matching funds in the amount of $17,043.00 was submitted and ap- proved. Preliminary cost estimates, which were used for the requested Fed- eral matching funds that would cover the local government share represent- ing one-half the total cost, had been reworked and will now require an ad- ditional local appropriation of some $8,000. This, together with the Federal share will bring the construction cost estimates to a figure roughly between $34,000 and $36,000. The Federal con- tribution has been allocated in antici- pation of the local one-half being ap- propriated. Bidding in connection with construction, is scheduled for the first quarter of fiscal 1968, with a tentative completion date set for December 1967. Under the surplus property dona- tion program, surplus property with an original acquisition cost of approxi- mately $8,700 was received. A request for one 50-kilowatt generator, deter- mined excess to the needs of the Peace Corps in St. Croix, was being processed at the year's end. The development of capabilities to utilize resources under emergency conditions in order to facilitate the survival, recovery, and rehabilitation of the territory and its population following nuclear attack continued. The preparation and devel- opment of plans affecting the emer- gency management of all local re- sources was completed under contract with the Office of Emergency Planning prior to the close of the fiscal year. The recruitment of volunteers for the territory's Radio Amateur Civil Emergency Service (RACES) con- tinued to show results. Amateur opera- tors operating on predetermined fre- quencies are located on all islands to provide a communication capability both within the Virgin Islands complex and beyond. Communications The fiscal year saw increased capa- bilities of communications within the Department of Public Safety by the close adherence to guidelines estab- lished to expand such services in keep- ing with public need in all districts. The programs of preventative mainte- nance on communication equipment has been effective and facilitates 24- hour service without any appreciable loss in operating time. Within the St. Thomas District, police communications operated a total of 8,633 hours during the year, with 140 fire communications operating a total of 8,628 hours. On St. Croix, police communications saw a total of 8,462 hours operation and fire communications 8,436 hours. On St. John police communications absorbed 8,532 hours during the year, with fire communications totaling 8,616 hours. The number of mobile communica- tion units have been increased in St. Thomas and St. Croix and six inband portable radios were added to the de- partment for use on special occasions by the motorcycle patrol. A monitor- radio had been installed in the St. Croix Investigation Bureau, thus keep- ing this unit directly in touch with all traffic throughout the public safety radio network. Virgin Islands Home Guard The Virgin Islands Home Guard saw almost continuous service during the 12 months covered by this report. This service covered assignments such as beach patrols at Magens Bay, St. Thomas, and as police auxiliaries on the Island of St. Croix. In addition, various details were undertaken on a nonrecurrent basis. Manpower was provided for racetrack and ballpark service, and for the packaging of clothing and foodstuffs in connection with Operation Guadeloupe. The home guard also saw extensive service as an active participating con- tingent during the semicentennial observances in the islands. A new issue of regulation unifomis was purchased in the islands for units on St. Thomas and St. Croix. At the end of the year, the long sought for headquarters for the home guard was made possible by the legislature with the appropriation of funds that led to the acquisition of a facility at the former submarine base. Parole Board Activities Over the course of the fiscal year, the parole board met three times. A total of 35 applications for parole was considered, of which 14 were approved. Substantial personal contacts by parole officers and correspondence in connec- tion with parole matters were carried out. Richmond Penitentiary As in the previous year, the drought kept production low in the peniten- tiary's farm program. The food crops obtained were used for inmate con- sumption only in the light of the low yield. A women's dormitory and recrea- tion area was constructed as was a workshop for use by the matron. Flush toilets were installed in the cellblock and yard. The institution, further, has been rewired, providing improved lighting, both indoors and out. With recreation being vital to reha- bilitation, sports participation has been encouraged with softball and basket- ball teams made up of inmates com- peting with athletic groups from the Department of Public Safety and the St. Croix Junior Chambers of Commerce. Adult education classes have con- tinued and the inmates interest increased considerably. Enrollment saw five men pursuing courses in English, eight in Spanish, and three in French. The Catholic Social Center has pro- vided instructors, textbooks, and other teaching materials. Assistance has been sought from the St. Croix Society of Cultural Arts that art and music courses be introduced for the inmates. 282-348 O - 68 - 10 141 Police and Fire Commission commission concluded no evidence was Four meetings were held to consider submitted to substantiate the charges. charges of misconduct against six A new chairman was elected and new policemen and one prison guard. The members appointed to the commission. 142 The Municipal Court of the Virgin Islands Personnel: 32 The total cost of operating the Municipal Court of the Virgin Islands, which succeeded the two municipal courts of the territory on March 1, 1965, amounted to $259,414.28. The number of cases disposed of in the division of St. Thomas-St. John increased over that of the previous year despite the decreases shown in the civil division, small claims division and juvenile and domestic relations divi- sion. The increase was largely attrib- uted to the 420 additional cases han- dled in the criminal division. In con- trast, the number of cases handled in the criminal division of St. Croix de- creased by 107. The procedure instituted the pre- vious fiscal year of permitting police officers to serve traffic subpenas upon witnesses, both for the government and for the defendant at the scenes of ac- cidents, has considerably lessened the work of the marshal's office. In the early months of the fiscal year, the Department of Public Safety was supplied with "litter tickets," as approved by the district court on Operating Appropriation: $274,783 April 18, 1966, thereby enabling law enforcement officials to serve trans- gressors at the scene of the misdemea- nor. Two cases appeared before the court in St. Thomas and six in St. Croix. Lack of space continued to be a major problem of the municipal court. Part I of the court in St. Thomas ac- quired additional rooms but these did not satisfy requirements. In Part II, the court is too small to accommodate litigants, witnesses, spectators, attor- neys, and court attaches. In Christian- sted, the municipal court is without a courtroom and must use that of the district court by courtesy of the judge of the court, a situation which has caused this department difficulty in keeping its docket current. Division of St. Thomas-St. John During the fiscal year 7,832 cases, in- cluding preliminary hearings, were handled. The following table shows comparative figures covering a 5-year period : 143 GASES DISPOSED OF 1963 1964 1965 1966 1967 Criminal division 2, 547 Civil division 233 Small claims division 663 Juvenile and domestic relations division .... 258 Conciliation division 393 Total 4,094 2,939 Division of St. Croix A total of 6,383 cases, including pre- liminary hearings, was disposed of in the fiscal year, 746 more than in the preceding year. They are as follows : CASES DISPOSED OF 1963 1964 1965 1966 1967 Preliminary hearings 50 Criminal division 463 Civil division 333 Small claims division 271 Traffic division 1, 159 Juvenile and domestic relations division .... 207 Conciliation division 317 Total 2,800 65 Office of Probation and Parole Personnel: 8 Operating Appropriation: $70,686 As a consequence of an agreement women in the Job Corps program in with the municipal court, domestic re- an effort to further their development lations division, all contempt cases as useful citizens of the community, in child support matters were referred At the beginning of fiscal year to the probation office for reports 1966-67, a total of 145 persons was during fiscal year 1966—67. Under the under supervision. During the year, agreement, the Office of Probation and 269 cases were referred to the Office Parole was required to supervise the for supervision, and at the end of the principals in these cases, determine the year the number was 150. Cases re- extent of their compliance with the ferred during the year were classified court order, and direct payments to ^^ follows- the proper agencies so that the sup- port might be provided to the desig- Municipal court, adults 70 ^ J Municipal court, juveniles 84 nated person. District court 60 During the fiscal year, this pro- Contempt cases 55 cedure was followed, but on a limited rp , ~I7I scale since most of the people involved were chronic contempt cases. A statistical report on other activities The office placed 19 young men and of the office during the year follows: Interviews, an average of 1 visit per week per probationer 11, 128 Investigations, average of 6 persons interviewed per report 2, 965 Reports on inmates at Richmond Penitentiary, bimonthly visits 150 Presentence reports for district court 130 Presentence reports for municipal court (adults) 57 Presentence reports and postsentence reports for the municipal court (juveniles) .... 84 Reports on contempt cases 55 Reports on Parole Board applications 35 Reports for other States on investigations conducted in the Virgin Islands 24- Letters of inquirv soliciting information for reports 15 During the year, the responsibilities One chief probation officer, one of the office required the services of deputy chief probation officer, two eight staflf members as compared to deputy probation officers, one admin- the probation officer and clerk who istrative officer, two clerk-stenogra- served when the office was established phers, and one janitor-messenger, in 1958. Present personnel include: 146 Virgin Islands Planning Board Personnel: 15 Operating Appropriation: $159,624 The Virgin Islands Planning Board began the fiscal year with 14 authorized employees and an operating appropri- ation of $159,624. At the end of the fiscal year 15 positions were filled and actual expenditures by the board amounting to $147,192.31. The planning board is responsible for long-range comprehensive plan- ning, subdivision, and zoning adminis- tration for all of the U.S. Virgin Is- lands. It functions as an advisory body to the Governor and is composed of 1 3 lay citizens appointed by the Governor and confirmed by the legislature for staggered terms of office. In October of 1966 the board insti- tuted a system of insular committees, whereby members from the respective islands met, discussed, and took pre- liminary action on applications pertain- ing to their particular island. Applica- tions approved by the insular commit- tees are referred to the full board each month for final ratification. In February, the planning office moved to its new location in submarine base. The new office, located in former UDT facilities, offers adequate draft- ing space, display areas, and a com- bined conference-library room. Public hearings, previously held in the Senate Building, are now conducted at the planning board's office. Zoning Administration The land use controls section, re- sponsible for zoning and subdivision, received 123 applications for special exception, 23 applications for vari- ances, and 1 1 applications for develop- ments within certain zoning districts, G-2, C-3, 1-l, and in the Christiansted historic district. The number of approvals and disap- provals given during the year are indi- cated on the chart tabluations of plan- ning board activities. Significant approvals included a commercial facility within the historic zone of Christiansted, a concrete block plant at Estate Hogensborg, St. Croix, an auto sales and showroom at Estate Concordia, and a watch assembly plant in the C-1 zone of Christiansted. Significant special exceptions granted in St. Thomas included approval of six cottages for a proposed resort hotel at Estate Smith Bay, and approval to con- struct additional guest cottages at Sap- phire Bay resort. During the year, 83 preliminary plat subdivisions totaling 3,417 lots received approval. These proposed lots comprise a total of 1,707.99 acres. Of the pro- posed lots approved, 2,215 or 64.8 per- cent were on St. Croix, and 1,100 or 32.1 percent were on St. Thomas. Approval was granted for 704 final lots. Of this total, 619 lots or 87.9 per- 147 cent were on St. Croix, with 79 lots or 11.2 percent on St. Thomas. Two large-scale subdivisions received preliminary approval. These included a subdivision of 324 lots at Estate Anna's retreat, St. Thomas, and a subdivision of 388 acres at Estate William's delight, St. Croix. Design Activities During the year, the planning staff worked on several design projects in collaboration with operating agencies. The most significant projects were Emancipation Garden renewal, con- sisting of a new bandstand and the re- designing of the landscaped area; the design of recreational facilities at Long Bay, St. Thomas; recreational and athletic facilities design for Charlotte Amalie High School; and recreational facilities design for Altona Lagoon in Christiansted. Planning Studies Early in January an application was submitted to the Department of Hous- ing and Urban Development for an urban planning grant to assist in fi- nancing a planning study for the gen- eral development of central St. Croix. In March, the board's director was advised by HUD that a $43,734 urban planning grant had been allocated for this purpose. This grant is to be sup- plemented by $14,579 in local funds and services for the following studies: Land use and valuation, physiographic, quality resources, community facilities, and general development plan and re- port. Drawings and sketches for the first three studies have been completed. A third party contract with the con- sulting firm of Nash-Vigier, Inc. of Cambridge, Mass., has been drawn and execution is expected shortly. The con- sultants will conduct studies and pre- pare reports concerning the impact of industries in central St. Croix, popula- tion characteristics, economic, cultural, social, and political implications of urbanization, housing, and recreational needs, and various effects of cost-reve- nue relationships. The study is expected to be completed in 12 months. An air transportation study began in May 1966 with 95 percent of the work completed at the end of the fiscal year. Through the legislature, the Board was authorized to conduct a feasibility study into the question of providing an alternate western entrance to Chris- tiansted, St. Croix. In June an aerial survey was made of the area in ques- tion, as a means of determining traffic volume. Further studies involving traf- fic counts and land valuation will be conducted early in the coming fiscal year. During the year considerable work was done in reviewing and coordinat- ing projects of the various executive departments. The Board reviewed and approved the construction of additional class- rooms to the Nisky School in St. Thomas; made studies and recommen- dations with regards to the acquisition of additional land for the expansion of the Wayne N. Aspinall Junior High School in St. Thomas; and reviewed various projects undertaken by the Department of Housing and Com- munity Renewal. In cooperation with the College of the Virgin Islands, the Planning Board staff reviewed the overall site develop- ment plan for the college, including construction of a 60-unit women's dormitory, faculty housing, and a library. 148 Summary of planning activity data: 1. Regular meetings 15 2. Committee meetings 12 3. Special meetings 3 4. Total items discussed 471 a. Regular 328 b. Committee 127 c. Special 16 5. Public hearings 27 a. St. Thomas 12 b. St. John 4 c. St. Croix 11 6. Total items handled at public hearings 126 a. St. Thomas 45 b. St. John 5 c. St. Croix 76 APPLICATION PROCESSED BY ISLAND, FISCAL YEAR 1966-67 St. Thomas St. John St. Croix Total Special exceptions: Received Granted Denied Variances : Received Granted Denied Approvals : Historical district: Received. . . Granted. . . C-2 zone: Received. . . Granted. . . C-3 zone: Received. . Granted. . . I-l zone: Received. . Granted. . , 37 Division of Personnel Personnel: 17 The division of personnel, under the Office of the Governor, performs all phases of personnel administration: Recruiting qualified employees for government service, testing certified candidates, recording and checking changes of status, administering the re- tirement system for government em- ployees, and cooperating with other departments in expanding programs of employee training and development. Recruitment and Retention Training There has been a marked improve- ment in the number of highly trained applicants for social work, accounting, and public administration. Recruit- ment of medical and paramedical per- sonnel remains difficult, while recruit- ment in the clerical and secretarial fields continually improves as more students from the high schools and the College of the Virgin Islands enroll in classes dealing with commercial subjects. The Neighborhood Youth Corps program has proven successful by increasing the number of eligible recruits through its training and vari- ous job programs. Plans are presently underway to en- large the St. Croix office and to build additional quarters for the St. Thomas main office. A certification section has been added to the St. Croix office in an effort to expedite recruitment and placement. Operating Appropriation: $142,789 Officials of the Department of Inte- rior visited the personnel division and conducted a preliminary survey to de- termine the areas to be dealt with in an intensive study of the personnel merit system planned for the immediate fu- ture. The legislature of the Virgin Is- lands appropriated $50,000 for the study. Act No. 2013 provided for cover- age of unclassified employees into the classified service, and now only those positions of major supervision and of a confidential nature will remain un- classified. Retirement System- The employee retirement system covers all permanently appointed em- ployees of the executive departments of the government, the municipal couft and the legislature (including legisla- tors who elect coverage) employees of the Water and Power Authority, the College of the Virgin Islands, the Vir- gin Islands Public Housing Authority and the Urban Renewal Board. The system provides all its members with retirement annuities, disability benefits and death benefits. Loans are available to active employees for per- sonal expenses and for home building or improvements. At the end of the current fiscal year, 171 persons were receiving monthly benefits totaling $15,725.68. In addition, 111 persons were receiving pensions awarded by 150 special legislation amounting to $11,- 384.50. During the year two important legis- lative acts affecting the system were passed. The first act authorized the sys- tem to make loans as high as $2 million to the government for the purpose of providing moderate-income housing. The second act made changes in the conditions requisite for retirement, al- lowing for earlier retirement with in- creased benefits, particularly in the case of policemen and firemen. It further provided for mandatory retirement at the age of 65 for employees other ^than policemen and firemen who must re- tire at the age of 55. Employer contributions from the ex- ecutive departments of the government continue to be made at the rate of less than 17.63 percent of covered salaries, as recommended by the consultant for the system. 151 Selective Service Personnel: Compensated 5 Uncompensated 31 With a constant rate of input of manpower into the Armed Forces to supply the manpower requirement of the Vietnam conflict established in the previous year, fiscal year 1967 brought little change in the operation. Induction quotas ran approximately the same. There were few changes in the regulations. The operating procedures of the system continued the registration of young men as they attained age 18, maintained current information and classification on all registrants within the age of liability, deferred for edu- cation, essential employment, hard- ship, and other essential activities those found eligible, and selected for physical examination and subsequent induction those found qualified in such numbers to satisfy the induction quota awarded the Virgin Islands. Induction authority under the Uni- versal Military Training and Service Act expired on June 30, 1967. During the year, legislative action was neces- sary for such authority to continue. Prior to legislative proposals, the President early in the year established the National Advisory Committee on Selective Service, which preceded by a short time the establishment of a Civilian Advisory Panel In Military Manpower Procurement by the House Armed Services Committee, whose Operating Appropriation: $1,513,212 prime missions were to thoroughly study the Selective Service law and make proposals for changes deemed necessary. It was not until June 30, 1967, that the Military Selective Serv- ice Act of 1967 effectively revised the old existing law. The outgrowth of the Military Selective Service Act of 1967 in the closing hours of the year served to set the stage for continuing the act into the new fiscal year just beginning. Highlighted among the changes were : ( 1 ) Critical skills for occupational deferments would be more clearly identified rather than left to random choice. (2) College students would be gen- erally deferred until age 24; and that graduate students would generally be allowed 1 year beyond college gradu- ation. (3) Registrants deferred as students would not subsequently be deferred as fathers. (4) Extension of the liability to age 35 of all physicians, dentists, and allied specialists. Several changes affecting induction were experienced. In October, the mental standards were reduced by low- ering acceptability test scores; these were further reduced in December and significantly reflected in examination results quoted below. 152 Registrants were permitted delayed recruiting appointments up to 120 days beyond their scheduled induction dates if a valid date were fixed for their enlistment by the recruiting service. College qualification tests which were offered in November, March, and April were discontinued in view of the provisions of the revised Selective Service law. Most important to the registrant was the extension to 30 days during which time he might file an appeal from a classification; previously 10 days was the limit. Referral of cases to the justice department for interview was discon- tinued in the case of registrants claim- ing conscientious objection. The total registration in the two local boards reached 8,147, covering registrations from 1948. This repre- sents a sizeable annual increase of 771 above the 7,436 recorded at the close of the previous fiscal year. Over the last 5 years the increase has been almost consistent: 629 new registra- tions in 1966, 515 in 1965, 528 in 1964, and 435 new registrations in 1963. It is noteworthy that the above fig- ures reflect the rapidly expanding resident alien population, especially during the last fiscal year as a result of the immigration and labor depart- ments' joint effort to resolve the labor market problem in the islands. Al- though the military obligation of resi- dent alien and citizen are alike in every respect, this noted influx will not materially affect inductions, since most of the newly admitted male resi- dents are above 26 years, or above the age of current selection for military service. Over 2,100 classification actions were taken by the boards; the boards numbering five members each meet once each month to consider informa- tion gathered on registrants to classify each registrant according to his indi- vidual status. While class 1-A, avail- able for military service, was the most active class, as men were initially clas- sified or reclassified, all classes were active. Deferments for education, both high school and college, numbering slightly below the norm, showed no appreciable change from last year's average. To assist local boards in deter- mining a student's deferability, both the college qualification test and the student's class standing were con- sidered. The appeal board met only once to consider four appeals from classifica- tions rendered by local boards. It was unusual that three cases involved regis- trants residing in the islands who were under the jurisdiction of local boards of other States. Preinduction physical examinations to determine the registrant's accepta- bility for service is a responsibility of the Armed Forces, carried by the Armed Forces examining and en- trance station in San Juan, P.R. As the need arises, registrants in class 1-A are selected, transportation furnished, and an examination effected. Results have ranged from 42 to 27 percent acceptable over the. last 5 years. The aforementioned reductions in mental requirements served to produce 251 acceptable registrants, or 59 percent out of 428 examined compared with 35 percent found acceptable last year. The comparative table follows : 153 Years 1963 1964 1965 1966 1967 Examined 121 429 378 642 428 Percent Percent Percent Percent Percent Accepted 50-41 114-27 121-32 224-35 251-59 Rejected 71-59 315-73 257-68 418-65 117-41 Mental 64-53 257-60 218-58 355-55 143-33 Physical 4-3 34-8 21-5 44-7 18-4 Combination and/or other 3-3 24-5 18-5 19-5 16-4 The total induction quota for the year of 149 was easily met and over- subscribed by 12. This compares with a quota of 147 the previous year. Of the 161 inductees 72 were volunteers, all of whom entered the Army of the United States. Additionally, 62 regis- trants enlisted directly into the various branches of the service for an input of 223 as compared with 140 separations reported by all services. Registrants separated from less than 6 years of active military service are screened to the Standby Reserve to complete their military obligation. These reservists are recallable in time of war or national emergency as deter- mined by local boards. Of the 119 cur- rently listed, 61 have been identified to the armed forces as available. 154 Conclusion During the 6 years of the present administration, the Virgin Islands has enjoyed a period of uninterrupted and unprecedented economic growth. In the fiscal year 1966-67, this expansion again set new records in both the pri- vate and governmental sectors. Much of the impetus for progress has come from the government's eflForts in promoting tourism and industrial and commercial activity. Tourism con- tinues to be the islands' number one industry and its continued growth has been enhanced by the introduction of nonstop jet flights from the mainland, inproved tourist accommodations and a highly successful advertising and public relations program. Industrial in- centives continue to bring new business and the trend toward diversification is apparent in the number and types of new firms established. The general business prosperity, cre- ating in turn, improved wages and job opportunities, has enabled the adminis- tration to increase social service and meet the needs for expanded edu- cational programs, health and hous- ing needs, and public works projects. On the occasion of its 50th anniver- sary as a U.S. territory, the people of the Virgin Islands continue to look to the Congress and the Department of the Interior for assistance, guidance and cooperation in carrying out neces- sary programs. At the same time, the economic progress and political ma- turity achieved in the past few years offers substantial proof of the Virgin Islands peoples' right to additional self- government. The Congress, recognizing this, this year authorized an increase in the size of the legislature from 11 senators to 15 and granted the legislature the right to set its own salaries. It also raised the ceiling on the issuance of revenue bonds. This in turn, has made it possible for the local government to proceed with water and power ex- pansion plans and additional school construction. It now remains for the Congress to consider the bill before it giving the Virgin Islands the right to elect its own Governor. At the close of the fiscal year, widespread support for such a bill both in the islands and on the main- land, lent confidence to the belief that the measure would be enacted in the coming year. 155 U.S. GOVERNMENT PRINTING OFFICE: 1968 O—282-348