Annual report of the Governor of the Virgin Islands
STACK * UMASS/AMHERST * :i Hill {|i|| iiiii iini iiii mil III jijll !|!|| ||!|| "HI ||||! ||!|| !||| ||!| 312066 0344 2012 7 Annual Report of the Governor of the Virgin Islands to the Secretary of the Interior V8\ 1951 ft M, ^ , .' Annual Report of the Governor of the Virgin Islands to the Secretary of the Interior Fiscal Year Ended June 30, 1951 STACK V ^ ! • UNITED STATES DEPARTMENT OF THE INTERIOR Oscar L. Chapman, Secretary TERRITORY OF THE VIRGIN ISLANDS Morris F. De Castro, Governor For sale by the Superintendent of Documents, U. S. Government Printing Oflfice Washington 25, D. C. …
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STACK * UMASS/AMHERST * :i Hill {|i|| iiiii iini iiii mil III jijll !|!|| ||!|| "HI ||||! ||!|| !||| ||!| 312066 0344 2012 7 Annual Report of the Governor of the Virgin Islands to the Secretary of the Interior V8\ 1951 ft M, ^ , .' Annual Report of the Governor of the Virgin Islands to the Secretary of the Interior Fiscal Year Ended June 30, 1951 STACK V ^ ! • UNITED STATES DEPARTMENT OF THE INTERIOR Oscar L. Chapman, Secretary TERRITORY OF THE VIRGIN ISLANDS Morris F. De Castro, Governor For sale by the Superintendent of Documents, U. S. Government Printing Oflfice Washington 25, D. C. - Price 20 cents Contents Page Federal Virgin Islands Public Works Program 5 Public Finance and Taxation 6 Real Property 8 Housing and Town Planning 9 Civil Defense 11 Selective Service Operations 12 Personnel Administration 13 Agriculture 14 Commerce and Shipping 18 Education 19 Health and Sanitation 21 Public Safety 26 Public Utilities 27 Public Works 28 Labor and Labor Relations 29 Social Welfare 30 Tourism 32 Virgin Islands Auditor 33 Virgin Islands Cooperative 33 Wildlife Conservation 34 Legislation 35 Advancements Toward Self-Government 36 Conclusion 37 in Digitized by the Internet Archive in 2009 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/annualreportofgo1951virg Annual Report of the Governor of the Virgin Islands Morris F. De Castro, Governor THE GOVERNMENT of the Virgin Islands seeks the attainment of economic progress and stability through ^ the execution of a planned program for developing the human and physical resources of the islands by : (a) long-term educational policies which will better serve the per- sonal, economic, and social needs of the people ; (b) increased food and sugar production through the development of sound agricultural practices; (c) an all-year tourist program ; (d) establishment of small industries; (e) strengthening and improvement of preventive and therapeutic services as a single integrated system of health care ; (/) elimination of substandard and other inadequate housing through the clearance of slums and blighted areas ; (g) pro\dding security for the aged and unemployable; (h) improvement of, economy in, unification, and simplification of the government structure. During the fiscal year ended June 30, 1951, determined efforts were made to approach if not to achieve some of these objectives. The administration has stressed the importance of greater self-support and self-dependence. Because the limited resources of the islands make this a truly difficult task and one which will take many years to achieve, the govermnent of the islands has again asked Congress to assist the Virgin Islands in the attainment of economic sufficiency by returning to their treasury the internal revenue taxes which Puerto Rico has enjoyed over a period of many years. The return of these taxes to the treasury of the islands would immediately eliminate the need for annual Federal deficit appropriations, finance a program of public works improvements and assist in defraying the cost of the 1 2 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS central government of the islands. It wonld make the determination of the financial destinies of the islands subject to the efforts and production abilities of their people. Realizing that Virgin Islanders must not ask for and expect these benefits without actively supporting local measures which would bring the islands closer to the goal of self-support, the administration has endeavored to find new sources of revenue as well as to reduce operat- ing expenses. To this end there has recently been made an expert study of the structure and administration of the revenues of the is- lands which will serve as a guidepost for action in the next and succeeding fiscal years. The United States has been cognizant of the needs of the people of the Virgin Islands and has been generous in providing funds and facilities to meet these needs. Under a 10-million dollar Federal ap- propriation, sewerage systems, potable water supply systems, roads, and an abattoir have been constructed; waterfront improvements, hospitals, and schools have been projected. Through the use of Fed- eral funds a vocational education program is now established in the Virgin Islands; free public employment offices are about to be in- augurated; a slum clearance and redevelopment program has been authorized; liberal contributions are made for public assistance, maternal and child health and crippled children's programs, as well as for venereal disease, tuberculosis, general health, mental health, and heart disease control programs. The old age and survivors in- surance benefits of the Federal social security act are in effect. The Federal Government pays the cost of the central government of the islands, the cost of operation of the agricultural stations, and the deficits in the operating expenses of the two municipal governments, all in substantial amounts. Through the Virgin Islands Corporation, a Federal instrumentality, funds are made available for the economic development of the islands and particularly for the continuation and expansion of the important sugar industry of St. Croix. Through the years since the adoption of the Virgin Islands Organic Act in 1936, important legislation has been enacted by the local legis- latures designed to improve the social and economic welfare of the people of the islands. Among the most significant of these are mini- mum wage and maximum hour laws, workmen's compensation laws; homestead acts; an antidiscrimination act; uniform sanitary code; housing and redevelopment laws; tourist development laws; merit system policies; municipal retirement acts, and labor relation laws. Unfortunately, however, the two-party system of political organiza- tion has not been developed in the islands. This has resulted in the lack of that balancing influence which is essential to sustain the effec- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 4 3 tive legislative processes of a democratic law-making body. The ab- sence of clearly defined political opposition within the legislative halls of the islands has been a distinct deterrent. Such a system should develop as a result of a constitutional change to a single legislature for the islands elected at large, at least in part, from all three islands. There is needed, too, more interest on the part of the people in their government which would impel a greater registration of voters and a larger number of votes to be cast in each general election. The policy of the present Governor, announced at the inception of his administra- tion and strictly adhered to since then, of drawing a clear line of demarcation between the function of the legislature to make laws and the function of the executive to execute them has not met with appro- bation. Much important and needed legislation has been stymied because of the insistence of the local municipal councils and legislative assembly on the inclusion of provisions which encroach into the sphere of executive functions, and the refusal of the Governor to approve any such bills no matter how worthy their purpose. The local legislatures which have been commendably alert in the enactment of the benefits of minimum wage and maximum hour laws, in the maintenance of free hospital service, and other free public benefits, have been reluctant to enact legislation to provide for the less privileged of the people of the Virgin Islands the decent sanitary facilities which are the very core of a healthy community and for which the United States Government has spent close to a million dol- lars to provide salt water and sewer mains. There has not yet ma- tured the wholehearted enthusiasm necessary for insistence upon the use of water-borne sewage facilities and an assured safe water supply. Appeals for legislation to enforce connections on the part of the house- holder or even the business place have met with cold reception on the grounds of hardship of costs. The utilization of these facilities will mean the difference between a backward undeveloped area with all the indices of poor sanitation and a progressive developed area compa- rable in living standards to similar regions on the mainland of the United States. The present Governor has taken the position that too many pallia- tives and too many free benefits serve only as diversionary to the main objectives of economic sufficiency, self-support and self-dependence. The administration continues to hold that from the islanders them- selves must come the enterprise, the incentive, the hard work, and the sacrifices which will ensure the success of a program to improve the economic stability of the Islands, with the government furnish- ing the stimulus through the wise and economical use of appropria- tions for governmental operations. Real progress cannot be attained, 4 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS however, until there has been a radical improvement in the political organization of the islands. This annual report reviewing, as it does, the work of the govern- ment of the Virgin Islands during a year of progress in some fields and frustration in others, will develop the details of the government's activities and the pattern which is being progressively adopted for the attainment of the objectives which have been set forth. Considerable interest was manifested in the islands through the visits of a number of members of Congress and high executive officials. A subcommittee of the House Committee on Education and Labor, headed by Congressman Augustine Kelley, came to the islands, visited the public schools and discussed the need for school facilities. Dur- ing March 1950, a subcommittee of the House Appropriations Com- mittee under the chairmanship of Hon. Michael J. Kirwan investi- gated conditions in the islands. Congressman Fred L. Crawford also made a visit to the islands to explain the bill introduced by Congress- man John R. Murdoch for the revision of the Organic Act of the Virgin Islands. The visits of these Congressmen have resulted in a better understanding of the Virgin Islands and their problems. The Secretary of the Interior made a special visit to the islands in October 1950, and returned in January 1951, to attend a meeting of the Board of Directors-of the Virgin Islands Corporation. The board meeting was also attended by the Secretary of Agriculture. Besides, the Director and Assistant Director and other officers of the Office of Territories made numerous visits to the Islands. A panel of judges from the Court of i^ppeals for the Third Circuit held a session of the court in the Virgin Islands. An outstanding achievement in inter-island relationship was at- tained when the Inter-Virgin Islands Conference was created by joint memorandum issued by the Government Secretary and the Commis- sioner of the British Virgin Islands. The purpose of the Conference, which is composed of delegates from the American and British Virgin Islands, is to discuss matters of mutual concern particularly trade and travel activities. The delegates will meet quarterly. This Con- ference was created as the result of a series of discussions between the Governor of the American Virgin Islands and the Governor of the Leeward Islands on trade and travel relationships. On the regional level, the Virgin Islands were represented by delegates and advisors at the Fo'irth West Indian Conference which was held under the spon- sorship of the Caribbean Commission at Curacao, Netherlands West Indies during the month of November 1950. The first radio broadcasting station in the Virgin Islands was es- tablished at Charlotte Amalie, St. Thomas, on August 1, 1950. The REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ D use of this broadcasting station for public informational programs has been generously donated by the owner and assisted greatly in dis- seminating information of a public nature in connection with gov- ernmental activities. In view of the national emergency which was declared by the Presi- dent, a temporary Office of Emergency Planning was created by Executive order to prepare plans for emergency measures dealing with food, household supplies, drugs, industrial supplies and equip- ment, fuels, transportation, and labor and manpow^er. Later in the fiscal year a territorial office of price stabilization, Economic Stabil- ization Agency, was established. As a contribution to the tourist development program, the St. Croix Museum Commission was created by law, comprised of seven mem- bers authorized to develop a suitable museum in St. Croix and to acquire the famous Folmer Andersen collection of Indian artifacts. Thus, St. Croix will possess one of the finest collections of Indian relics in the Caribbean area. Real progress was experienced in the develop- ment of the tourist trade during the year. A button factory was estab- lished on the experimental stage in St. Thomas under the tax exemp- tion and industrial subsidy program. This was made possible by Congress passing an amendment to the act of March 3, 1917, lifting the restriction on the importation into the Virgin Islands of raw ma- terial which is imported into continental United States free of cus- toms duty. Price and rent control continue to be of major importance in the Virgin Islands, particularly in the municipality of St. Thomas and St. John, where a local price- and rent-control law is enforced. This phase of community activities is under the administration of a com- mission comprised of private citizens. With the opening of territorial offices of the Office of Price Stabilization on the Federal level, the price- control activities of the commission have been eliminated. However, the control of rents in this area where adequate housing facilities are acutely limited, constitutes an important duty of the commission. Over 50 cases requiring hearings and adjustments were reviewed by the commission during the year. Despite repeated efforts of the adminis- tration, the municipality of St. Croix still does not have a rent-control law on its statute books. FEDERAL VIRGIN ISLANDS PUBLIC WORKS PROGRAM Considerable progress was made on important projects under the 10 million dollar Federal public works program for the Virgin Islands during the fiscal year. After preliminary studies had been made, archi- 980489—52 2 6 -f REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS tects and engineers were retained and plans and specifications prepared and approved for a 116-bed general hospital at Charlotte Amalie, a 60- bed general hospital at Christiansted, a 12-bed clinic and public health facility at Frederiksted and a 4-bed public health facility at Cruz Bay. Bids were solicited and will be open early in the next fiscal year. Actual work on these vital construction projects should be started shortly. The potable water-supply systems were completed and turned over to the local government for operation. The waterfront project in St. Thomas has been progressing slowly due to difficulties of the con- tractor in obtaining the necessary heavy equipment. Efforts will be made to accelerate this project during the next fiscal year. Contracts for telephone facilities in St. Thomas and St, Croix were awarded and work begun. It is expected that the facilities will be in operation before the close of the 1952 fiscal year. In St. John, a survey for a centerline road from Cruz Bay to Coral Bay was started. Plans were also prepared and approved and bids invited for the construction of a cistern and catchment area at Cruz Bay. Efforts are now being concentrated on the preparation of plans for school facilities for St. Thomas and St, Croix, including new high- school plants and elementary school buildings. It is expected that during 1952 the necessary plans and specifications will be prepared and approved and it is hoped that bids will be invited for the ncAv high schools in the spring of 1952. PUBLIC FINANCE AND TAXATION In the field of public finance the administration made determined efforts to pursue a course of strict economy in order to bring the budgets of the municipalities more in line with the revenues raised locally. Drastic action had to be taken to reduce the expenditures of the municipality of St. Thomas and St. John in particular. Here a reduction in force program was administratively instituted which re- sulted in a saving of about $50,000, with little curtailment of essential public services. At the same time business-license fees, corporation- license fees, and automobile-license fees were increased. Despite these efforts the municipality suffered a deficit due to an unprecedented de- cline in revenues from trade taxes and customs dues. A total of $927,434 was raised from local sources in the municipality of St. Thomas and St. John, which included an amount of $32,543 borrowed and transferred from special municipal funds. The policy of borrow- ing annually, without steady repayments, in order to meet recurring municipal deficits must soon be halted. An amount of $279,200 was contributed by the United States Government. Against these avail- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 7 able funds there were budgeted expenditures totaling $1,257,801. The municipality suffered a deficit of $51,367 which would have been con- siderably greater if the administrative reduction in force program had not been instituted. In the municipality of St. Croix the trend has been upward and more favorable. For the fiscal year 1951 a total of $431,777 was raised locally, as compared with $355,118 in the previous fiscal year. In addition, a United States contribution of $465,800 was received. Against these amounts the municipality had budgeted expenditures totaling $901,199. Despite the efforts made to improve the financial situation of the Government of the Virgin Islands it continues to be absolutely neces- sary to depend upon an annual contribution from the United States Government in order to meet municipal expenditures. This contri- bution, as in the previous year, was $745,000. More active enforce- ment in collection of local revenues now in process and tightening of penalty provisions in the local tax laws, now being given active con- sideration, should result in increasing the total revenues, but would not be sufficient for long range budgeting of the increasing needs of the local government to provide the necessary revenues to meet ex- penditures without the aid of Federal deficit contributions. This objective of balancing the local budgets will necessitate legislation in- creasing the yield from revenue sources, and also wherever possible achieving economies in government operations. In connection with this objective a study of the sources and yield of local revenues was begun late in the fiscal year by a tax expert, the Commissioner of Revenue of the State of Kentucky. His study will include a review of existing tax laws, the local economic conditions; and he will make a report with recommendations as to how to achieve the objective of balanced budgets for the local governments. An administrative study of financial operations Avas made during the year by a staff member of the United States Bureau of the Budget, at the request of the ad- ministration, with a view to their modernization and improvement. Strong emphasis must again be placed on the need for the return to the Virgin Islands of the internal revenue taxes collected on liquors exported from the Virgin Islands to continental United States. These revenues are not only due the Virgin Islands as a matter of simple justice and equal treatment for all American territories, but their return would result in a more favorable financial situation in the islands and definite improvement of their economic condition. In this way the islands would become an economic asset to the United States and not a liability. The achievement of economic freedom in the Virgin Islands should be an important contribution to the interna- 6 > REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS tional objective of the United States of helping dependent peoples all over the Avorld to help themselves. After making a survey of procurement procedures, accounting aiul financial reporting, the public auditor prepared and issued a JNIanual of Procedures for Property Control and Accounting. The manual provides a uniform method of accounting for nonexpendable property belonging to the municipalities. It represents the latest thought in property control methods for municipal governments and should prove of great assistance in maintaining this important phase of government in a proper and satisfactory manner. The format of the annual municipal budgets was also revised. The principal revision was the assignment of uniform accounting code numbers for similar activities and objects throughout the two municipalities, and the distribution and summarization of expenditures by functions of government and purposes of expenditures. This new arrangement should prove of value in providing a quick analysis of the respective budgets. A centralized system of maintaining allotment accounts was also introduced. REAL PROPERTY During the year 1050 there has been evidence of unusual activity in the transfer and improvement of real property. As a result of the growing emphasis on tourism, new hotels have been constructed in both St. Thomas and St. Croix. Several new homes were also built, especially in St. Croix and St. John, where a luimber of continental Americans have found the climate, landscape, and living conditions excellent for winter residences. In addition, there was considerable improvement of old properties both in business and residential sections. Indications are that certain sections of the country districts in St. Thomas are developing into residential areas. This has been evident through a lively trading in countiy properties. From this activity in the sale and improvement of land, it has been manifested that (1) property within the town limits is becoming more valuable by reason of its scarcity and improved condition, and (2) land in the country areas, heretofore assessed chiefly on the basis of its agricultural value, is now worth more as building sites, consequently assessed far below its actual value. In no single case in St. Thomas of land transfer in the country has the assessed value been more than one-half the sale price; while in many instances the assessed value has been as low as one-sixth or one-eighth of the sale price. For the calendar year 1950 the total assessed value of real property in the Virgin Islands was $13,611,639.07, an increase of $662,944.86 over the previous year. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 9 Even a cursory review of the real property tax picture in the Virgin Islands reveals the inequality that exists in the valuation of property. This is clue largely to the fact that a general reassessment of all prop- erty has not been made for many years and also because the emphasis has been on the demand for residences. Continuation of such a situ- ation can only result in an uneven spread of the tax burden and a substantial loss of public revenue. In order to correct this condition, a general reassessment program is planned for the ensuing year. A more scientific approach will be instituted in this reassessment pro- gram through the use of more facts and figures connected with each parcel of real estate and through an improved system of classification. Unfortunately, funds are not available for a thoroughly professional job of reassessment and equalization. In the absence of a strong and adequate planning law and zoning regulations, the city of Charlotte Amalie, in particular, is growing more according to the availability of land and buildings than in line with a carefully prepared plan. The obvious need for living space is spreading the resiclental areas westward and eastward as fast as con- struction can do so. As a result of this lack of a zoning plan, gi'eat difficulty is encountered in determining, for assessment purposes, whether property in certain areas should be classified as industrial, residential, or commercial. Revenues derived from real property taxation constitute a sub- stantial portion of the total revenues collected by the municipalities. In view of this fact, the Administration made a concerted effort during the year to have legislation enacted increasing the real property tax rate from the unusually low rate of 1% percent to the more reasonable rate of 2 percent. This moderate increase in the tax rate would result in additional revenues which are badly needed in order to attain the goal of self-support and self-dependence for the local government. This proposal was strongly opposed by the legislatures. HOUSING AND TOWN PLANNING The Federal housing jorogram for the Virgin Islands was very well advanced during the fiscal year. Through an act of the Legislative Assembly of the Virgin Islands, the Virgin Islands Housing and Redevelopment Authority was created as successor to the Virgin Islands Housing Authority, which was created in 1949. On the basis of an approved program reservation of 350 urban low-rent housing- units, 240 units were allocated for development in Charlotte Amalie on the island of St. Thomas, and 110 in Christiansted, on the island of St. Croix. Sites for the projects have been approved. In the case 10 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS of Charlotte Anialie, the town limits were extended by law to include the area for the low-rent housing project. The project in Charlotte Amalie will consist of some 30 buildings of two-story construction. The buildings will be constructed in such a manner as to preserve, in a modified form, some of the architectural detail which is found throughout the Islands. The facilities will in- clude an enclosed public area for use by the entire community. It is estimated that this project will cost about $3,000,000. Similar facili- ties will be provided at the Christiansted project. Due to decline in the population and according to standards of the Federal Housing Act, the town of Frederiksted was not considered eli- gible for urban low-rent housing. However, improved housing for this area will be provided under the program of rural nonfarm hous- ing. The insular housing authority has made application for a pro- gram reservation for rural nonfarm housing in the Virgin Islands covering the construction of 725 units as follows : 200 in St. Thomas, 125 in St. John, and 400 in St. Croix, and has requested a preliminary loan of $95,000 to finance the preparation of plans and surveys in connection with this program. Preliminary approval has been ob- tained for a program of some 600 units of rural nonfarm housing for the entire Virgin Islands. It is contemplated that 70 of these units will be allocated to Frederiksted. According to the provisions of existing law, and in order to carry through effectively a program of urban redevelopment and slum clear- ance, it is necessary for the Housing and Redevelopment Authority to work closely and coordinately with a Planning Board. A Virgin Islands Planning Board was created by legislation passed by the Legislative Assembly during its 1950 session. The members of the Board were appointed and the Board is now organized. It is neces- sary for the housing authority to obtain the recommendation of the Planning Board before any urban redevelopment plans may be sub- mitted for approval. Lack of adequate plans to guide the development of urban areas in the Virgin Islands has been one of the reasons for disorganized and chaotic growth. To correct these conditions and to guide new growth, an organized plan for the control of land use and for the develop- ment of normal public facilities is essential. If expenditures of pub- lic funds in land development and public facilities are to yield the greatest possible returns, they must be made systematically so that there will be a minimum of waste and a maximinn of benefit for all concerned. The starting point is logically a comprehensive plan which will provide the framework within which such an objective can be effectively achieved. Accordingly, the housing authority has en- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 11 gaged the services of a town planning consultant to develop master plans for the towns of Charlotte Amalie, Christiansted, and Fred- eriksted. The three towns under consideration present quite similar pictures : old world atmosphere, native charm and architectural distinction on the one hand, juxtaposed with poverty and dilapidation on the other. The chief problems to be solved are poor housing, lack of public facili- ties and services, and low-income levels. Urban planning in the Vir- gin Islands has two unique aspects not encountered in typical conti- nental American cities. They are : ( 1 ) the necessity for the preserva- tion and enhancement of a special atmosphere in which the tourist trade can be developed ; (2) the prospect of securing the much-needed public facilities through Federal aid indicates the need to plan them to the best advantage. In preparation of the proposed master plans a great deal of pertinent data has been gathered. It is expected that they will be completed during the next fiscal year. However, this entire program of urban planning is not progressing as it should due to the fact that the basic law is weak and inadequate. An effort will be made to have a revised planning law enacted during the next session of the Legislative Assembly. • CIVIL DEFENSE With keen awareness of the value and necessity of organizing civil defense activities in accordance with national policy, the Civil Defense Agency of the Virgin Islands was created by an act of the Legislative Assembly approved on September 19, 1950. Under this basic legisla- tion a Civil Defense Director and an Assistant Civil Defense Director were appointed. An Advisory Council was also established. In order to obtain first hand information in connection with this important program the Civil Defense Director attended the Con- ference of State Civil Defense Directors and the Staff College Confer- ence Course in Washington. A field representative of the Federal Civil Defense Administration also visited the Virgin Islands to observe and report on the insular civil defense activities. He has made important recommendations which will be implemented. Groups of volunteer workers have been organized for auxiliary fire- fighting, police, and rescue work. A training program in first aid and home nursing was started by the local chapter of the American Red Cross on the recommendation of the Civil Defense Agency. Token appropriations of local funds have been made to this program. During the next fiscal year efforts will be made to obtain a full-time Civil Defense Director, improve and expand the basic legislation, and 12 -f REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS work towards the establishment of a sound and practical civil defense progTam for the Virgin Islands. SELECTIVE SERVICE OPERATIONS The fiscal year 1951 was an active one for the Selective Service System in the Virgin Islands. Moving from a state of near inactivity other than routine records keeping, the personnel of the System, both compensated and noncompensated alike, as well as the people of the Virgin Islands, with a gathering momentum, moved again into the vital activity of manpower procurement for the Armed Forces, under the provisions of the Selective Service and Training Act of 194:8. The outbreak of hostilities in Korea in June 1950 was in effect the signal for renewed activity in Selective Service. As in other States and Territories, classifications were brought up to date. With the first calls placed on Selective Service by the Department of Defense, pre- induction physical examinations were already under way. In August 1950, a team from the Joint Examining and Induction Station in Puerto Eico came to the Virgin Islands to conduct pre- induction physical examinations. The number of acceptables ob- tained was more than enough to fill requiremei^ts for the succeeding 2 months, after which time registrants were regularly called and sent via commercial aircraft to Puerto Rico for subsequent examinations and inductions. During the year, a total of 487 received such examinations. The first induction group left the Virgin Islands for induction on September 14, 1950. Since that time, monthly quotas have been filled to the extent that the total inducted during the year slightly exceeded the total quota by approximately 20 percent. In addition to 173 inducted through June 30, 1951, an additional 28 registrants enlisted into the regular armed service, mostly by going to continental United States, since active recruiting was discontinued early in the year by the military establishments in the Caribbean area. Delinquency has constantly remained at a minimum, not rising above 1 percent of the total registrants. Only one case was filed with the district attorney for failure to register, and that involved an alien who feared deportation through Immigration if his name appeared on any Federal register. So diligently and sincerely have the local boards worked that not one appeal has been brought to the attention of the Selective Service Appeal Board for the Virgin Islands. In October 1950, the first special registration of doctors, dentists and veterinarians was conducted, followed by the completion in Jan- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 13 nary 1951 of the second part of such registration. A Medical Ad- visory Committee was appointed, whose function is to advise the local boards and the State director of the essentiality of these regis- trants to the community. The Committee for the Virgin Islands is comprised of three members from St. Thomas and St. Croix. A total of 12 doctors, 2 dentists and no veterinarians registered. None was determined available for service because of the shortage of such per- sonnel in the Virgin Islands, although one physician received a re- serve appointment in the Army. The objective of the Selective Service operation in the Virgin Is- lands is the manpower procurement from a population of approxi- mately 26,000 persons, of tliose males between the ages of 18 and 26. The classification status of registrants as of June 30, 1951 follows : Total living registrants 1, 962 Total living registrants under 19 years 187 Total classified registrants 1, 762 Class : I-A Available for service 701 I-C Inducted 173 I-C Enlisted 28 I-C Discharged 1 I-D (Reserve) 13 II-A (Student) 1 III-A Dependency 97 IV-A Veterans 47 IV-D Ministers 3 IV-F Physically, mentally, morally unfit 282 V-A Over age of liability for service 416. PERSONNEL ADMINISTRATION A branch office of the Division of Personnel was opened in Chris- tiansted, St. Croix, where specific attention is given to departmental interviews, consolidation of and continued attention to the central personnel records, administration of examinations, and information to applicants. There were 1,154 classified, and 1,078 unclassified and emergency em- ployees in the service of the insular government. Of the total num- ber of classified employees 698 were assigned to departments in the municipality of St. Thomas and St. John and 456 in the municipality of St. Croix. The largest number of employees, 359, were engaged in medical, public health and sanitation activities, 292 in public educa- tion and 196 in public works. The reduction in force program of the municipality of St. Thomas and St. John was handled by the personnel division. The employees laid off were given priority in filling vacancies for which they were 980489—52 3 14 -f REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS qualified. A distinct effort was made to improve the examination procedures. Due to the extension of the Old Age and Survivors Insurance Title of the Federal Social Security Act to the Virgin Islands there is a possibility that those municipal employees not now covered under the local retirement systems may be covered by Federal Social Security. At the close of the fiscal year the matter was being carefully studied. This may result in the necessary legislation being recommended for passage at the next session of the Legislative Assembly of the Virgin Jslands. Recruitment activities are now complicated by two important fac- tors : (1) manpower shortage due to the expanded military service and (2) the pay plan has not kept pace with cost of living due to lack of funds for pay increases. AGRICULTURE Efforts were continued during the fiscal year to secure the enact- ment by Congress of a bill to transfer the management of the agri- cultural program of the islands from the Department of the Interior to the Department of Agriculture. While these efforts resulted in the passage of the bill by the Senate, no action had been taken by the House of Representatives by the end of the fiscal year. However, considerable interest in the proposal was manifested. In March 1951, a group from the House Agriculture Committee, headed by Hon. W. R. Poage, of Texas, visited the islands. The Congressmen were well impressed with the necessity for the transfer. Subsequently the House Agriculture Committee submitted a favorable report on the bill. It is anticipated that the bill will be passed by the House of Representatives early in the next fiscal year. The agricultural program as conducted in St. Croix consists of three divisions including veterinary service, horticulture and plant quarantine, and extension service activities. At the present time limited Federal funds are available for the operation of the agricul- tural station. There are also two small municipal revolving funds used for livestock and horticulture development work. Nearly 4,000 ornamental plants were sold and distributed to families throughout the islands. Over 160,000 vegetable plants and 50 pounds of vege- table seeds were also sold and distributed to the farmers. Extension agents made 742 farm and home visits. As part of a dairy herd improvement program to increase the pro- duction of milk an artificial insemination project is being planned. Through the cooperation of the Extension Service of Puerto Rico a REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 15 series of educational meetings and demonstrations were held in St. Croix which were attended by a large number of dairymen and farm- ers. Two members of the Station's staff also took a short course in artificial insemination in Puerto Rico. Educational meetings were conducted throughout the island of St. Croix for the purpose of advocating improved pasture work including land clearing and seeding of guinea grass. All agricultural agencies, federal and municipal, conducted a joint series of meetings throughout the islands to acquaint farmers with the work of each and to emphasize the assistance each of them could offer. There were 416 boys and girls actively engaged in 4-H club work throughout the island of St. Croix during the fiscal year. Clubs were organized in 10 of the 12 schools on the island. In order to stimulate a progressive agricultural program emphasis must be placed on en- couraging rural youths in a future of agricultural activities. The 4r-H clubs are designed to give this encouragement. The work as conducted in the Virgin Islands gives the youth the same training and experience enjoyed by members of this institution in continental United States and in the other territories. As part of the activities the First Annual Farm and Home Achievement Day Program was held at the Agricultural Station, St. Croix, on February 12, 1951. All the 4r-H club members took an active part in exhibiting vegetables, live- stock, poultry, handicraft and home economic projects. Some 3,000 patrons attended the program. Two delegates along with a member of the staff were sent to the Regional 4-H Camp held during the month of August 1950 at Virginia State College, Petersburg, Va. This work is of particular importance as the average age of the St. Croix farmer is over 52 years. In view of the national emergency which was declared by the President of the United States, and in line with the policy of the administration to make the islands less dependent on the United States, an increased food production program has been outlined for the island of St. Croix. The program is based on a 5-year plan and consists of a number of production goals designed to raise sufficient vegetables, ground provisions, and livestock to feed the population of the island of St. Croix. Another objective of the program is to encourage each family on St. Croix which has adequate land and facilities to grow enough food to take care of its needs and to market the surplus wherever possible. The extension service encouraged farmers to increase their yield of sugar cane through the use of fertilizers. Some 50 farmers made use of commercial fertilizers this year for the first time. Experi- ments were conducted with varieties of corn, sea island cotton, and 16 -- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS other crops in order to provide additional cash crops. These tests will be continued. Extension poultry work was directed toward in- creasing the number of small pure bred laying flocks. A rat eradi- cation program was started because of the heavy damage to crops by these pests. In the Virgin Islands the average extension agent has to spend twice as much time influencing farmers to adopt im- proved practices as compared with the United States. In the field of veterinary work, the islands were fortunate in having had no serious disease conditions. The Government-owned abattoir in St. Croix was relicensed for operation under private lease. Closed since 1947, the reopening of the plant will stimulate improved cattle breeding and increased production with a view to creating an eco- nomically sound export market for St. Croix beef. Home demonstration work with women was directed toward the achievement of self-sustenance through home gardens, canning and preservation of vegetables, fruits and eggs, making of cakes and jellies, poultry and pig production, and sewing projects. In St. Thomas and St. John, as part of the agricultural extension service, over 400 visits were made to farms for the purpose of giving technical advice, controlling insect pests and diseases, and teaching new methods. Farmers made over 1,500 visits to the Agricultural Station to purchase seeds, seedlings, and ornamentals. A total of 168 meetings were held including 120 4-H club meetings. There were five active 4-H clubs with a total membership of 144. The making of straw hats and bags was one of the main 4-H club projects. Over 700,000 pounds of fruits and vegetables, imported principally from Tortola, British Virgin Islands, were inspected. The amount of produce condemned was negligible. Strict enforcement of the law has resulted in careful selection of goods at the port of origin so that the produce arriving at St. Thomas was markedly free from insect pests and disease. During the fiscal year a horticulturist was added to the staff paid from municipal funds. With the possible transfer of the agricultural activities in the Vir- gin Islands to the United States Department of Agriculture, it is necessary for long-range agricultural plans to be developed. Any plan for agricultural development in St. Thomas must take into con- sideration the farmers who are settled on the north central section of the island. These people are directly dependent upon the soil for a livelihood and carry on most of the local agriculture. They build terraces across the contour and by long hours of work with hand im- plements they produce crops of vegetables and ground provisions. The results are often disappointing because the land on which these crops are grown is mostly subsoil built up by manuring and intensive REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^f 17 cultivation. During the years the steep hillsides bared of vegetation have been washed of their topsoil. Crop failures resulting from im- proper land use, in adequate rainfall or high production costs discour- age the farmers to the point where many of them abandon the land. The younger people, realizing the hardships and profiting from the experiences of their parents, indicate very little interest in adopting farming as a vocation. The situation is made more complex by the fact that long-range plans for St. Croix contemplate large scale production of vegetables for possible shipment to St. Thomas. It has been the consensus of opinion of agricultural experts that St. Croix which is flat and fertile may be worked with machinery to supply economically the crop re- quirements of the entire Virgin Islands. Such a program, if and when fully established, may tend to place the St. Thomas farmer at a disadvantage. It is imperative, therefore, that plans be prepared to assist such farmers to develop a sound economy which will enable them to withstand the effects of large scale production in St. Croix. It has been conceded that an intensive program of fruit and fiber production can reliably supplement any diminishing production of vegetables. This program would encourage better land use because the trees would control erosion, withstand the effects of drought, and they can be cultivated without expensive terracing. The fruit trees contemplated include improved banana, plantain, mango, avocado, papaya and citrus. The fiber plants would include bull tyre and kenaf . These can be used for manufacture of straw goods and other articles for the local handcraft trade. On large estates pasture devel- opment would include improvement of the 3,000 acres already cleared for support of the dairy herds, and an additional 4,700 acres could be cleared to produce beef cattle, goats and sheep, which are imported for slaughter annually from the neighboring islands. Under the sponsorship of the Soil Conservation Service a survey of the forests in the Virgin Islands was made by an expert from the Tropical Section, Forest Service, United States Department of Agri- culture. In his preliminary report it is stated : The Virgin Islands need more and better trees. Trees put rainwater into the soil ; they enhance the environment for the tourist ; they provide cooking fuel ; they could support important furniture and novelty industries ; they pro- vide fruits needed in the local diet ; they yield bay rum, fibers, and other products of local value ; and as windbreaks they protect pastures and cultivated fields. The forest lands of the Virgin Islands are privately owned. Acquisition of those lands by the Government for forestry, as is being done in Puerto Rico, would be costly, and they are so scattered geographically that their efficient administration as public forests would be impossible. Clearly, better use of these lands is a matter for private initiative. The role of the Government should be that of a catalyst—to find out through research the best forestry practices, to 18 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS demonstrate these practices on small representative areas, to educate land- owners, and when necessary to offer special incentives for good management of forest land. Such a public program calls for the services such as are offered by the Soil Conservation Service, the Extension Service, the Experiment Station, and possibly other Government agencies. COMMERCE AND SHIPPING The production of sugar by the Virgin Islands Corporation for fiscal year 1951 dropped below the bumper crop of the previous year. In 1950 the corporation produced 10,750 tons 'of sugar, the largest crop in more than a quarter of a century. Over 13,000 tons were estimated for 1951, but actually only 7,400 tons of sugar were produced. One of the reasons for this sharp decline was the severe drought, lasting 5 months, which prevented 650 acres from being harvested. Another factor was the shortage of harvesting labor. The crop was processed at a loss of approximately $400,000. It has been estimated that not less than 150,000 tons of cane would be necessary each season to op- erate the sugar mill on a break-even basis. This would require a num- ber of years to accomplish considering the adverse factors of rainfall and shortage of labor. Paradoxically the islands must import labor for an expanded sugar industry in order to make the industry self- supporting. During April 1951 the Government-owned abattoir in St. Croix was reopened for operation under private lease. This abattoir had been closed since 1947. By the close of the fiscal year 60,094 pounds of dressed meat had been exported to continental United States and Puerto Rico. A total of 84,05-3 pounds of hides was exported from the Virgin Islands along with 1,276 head of livestock, of which over 1,000 head were cattle. The transportation of cargo by air express is fast becoming an eco- nomic factor, particularly in St. Thomas. Over 1,000,000 pounds of cargo were transported by air in and out of the islands during the fiscal year. It is anticipated that this type of activity will increase in the future. A total of 322 commercial ships with a gross tonnage of 1,419,825 called at the port of St. Thomas during the fiscal year, as compared with 335 ships with a gross tonnage of 1,794,697 in 1950. During the winter season a number of large tourist ships made visits to St. Thomas. The waterfront project began during the year and is moving along slowly. While the much-needed appropriation of $1,000,000 for the dredging of the St. Thomas harbor was made by Congress, the funds were frozen in the interest of national defense. It is believed that REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 19 when the present national emergency is passed that there should be no diflSculty in securing this appropriation as well as an appropriation for harbor improvements at Christiansted on the island of St. Croix. There has been an increase in the value of exports from the Virgin Islands. In 1950 goods valued at $3,106,498 were exported as com- pared with $2,501,056 in 1949 and $1,698,037 in 1948. At the same time the value of imports has slightly decreased from $9,967,225 to $9,357,711. The chief imports were foodstuffs and machinery, while sugar and alcoholic beverages remained the major exports. Over $40,000 worth of cattle and over $30,000 worth of perfumery and toilet waters were included in the total exports. Reducing the unfavorable trade balance is a long and difficult problem for the islands because of the limited natural resources, few industries, and small population. Nevertheless, a concerted and continuous effort is being made to reduce the value of imports and at the same time increase the value of exports. Progress along this line will result in economic stability. EDUCATION The fiscal year under review has been one of the most eventful in the history of education in the islands. With the extension of the provisions of the Vocational Education Act of 1946 to the Virgin Islands, culminating efforts extended over a period of 10 years, an initial grant of $33,000 Federal funds was made available, which was matched by local funds. Thus a vocational education program was established on an insular level. An insular Board for Vocational Education has been created and specially qualified supervisory per- sonnel for each of the major fields of operation has been employed. These fields are trade and industry, home economics and vocational guidance. In addition a program of vocational agriculture has been inaugurated in St. Croix. It is expected that during the next fiscal year the program will be extended to include diversified occupations which will give high-school students an opportunity to serve as ap- prentices under trained supervision in those trades which cannot be included in school shops and training laboratories. Upon the recommendation of the administration a group of educa- tional specialists from the United States Office of Education was as- signed to the Virgin Islands to assist in developing a long range and comprehensive educational survey. These specialists prepared a de- tailed prospective to serve as a manual and working guide for the Governor's Commission on Education which was created as a result of this initial survey. 20 -f REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS The purposes of this Commission are : 1. To determine how education can be made to serve better the personal, economic, and social needs of the people of the Virgin Islands. 2. To formulate long-term educational policies on the basis of the findings of the Educational Study Committee and its subcommittees. 3. To find ways and means of more effectively organizing and financing education in the Virgin Islands. 4. To consider and adopt other purposes as they emerge from time to time during the life of the Commission. The Commission is broadly representative of all aspects of living in the Virgin Islands, and is composed, therefore, of citizens recog- nized for their competencies in a variety of fields. Being so structured it is in a position to see education broadly as an investment in people designed to make the Virgin Islands a better place in which to live and in which to make a living. An Educational Study Group, comprised of teachers and other pro- fessional and technical advisors, was also created to deal with the problems on the technical and research level. These groups are now engaged in extensive studies and research. There should gradually evolve a series of recommendations and specific goals prepared by a representative group of Virgin Islanders with the consultative service of the United States Office of Education. Preliminary work was begun on school facilities planning through the assistance of the United States Office of Education. This is in coordination with the provisions of Public Law 510, Seventy-eighth Congress, which authorized the construction of new high school and elementary school facilities throughout the Virgin Islands. This preliminary study will serve as a valuable reference in the determina- tion of school plans and it is anticipated that final detailed plans as well as the selection and acquisition of sites for new high schools and elementary schools will be completed early in the next fiscal year. A total of 4,944 pupils was enrolled in the public schools in the Virgin Islands during the year, of whom 994 were in high schools in St. Thomas and 412 in the high schools in St. Croix. The total cost of public education was $520,285 of which the sum of $99,639 was made available by the Federal Government, primarily in support of the newly instituted vocational education program. A successful workshop in anthropology was conducted in the Is- lands by the New York University. About 60 students from conti- nental United States and many teachers and other interested persons in the Virgin Islands participated. It is expected that another work- shop will be conducted during the next summer. A summer session REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -- 21 was also held under the direction of the Polytechnic Institute of Puerto Rico. About 3,000 children participated daily in the school-lunch program in St. Thomas and St. John and approximately 500,000 meals were served at an average cash cost of 16 cents per meal. Contributions of foodstuffs were made by the United States Department of Agri- culture. The cost of education per pupil exclusive of the school lunch was $69.67 as compared with $74.66 the previous year. In St. Croix nearly 2,000 children took part in the school-lunch program. The cost of education per pupil exclusive of the school lunch was $70.89 as compared with $69.76 in 1950. There has been considerable interest in making scholarships available from private sources for advanced training. Organizations and individuals have made contributions for this purpose. In the field of public education lies the future success of the Virgin Islands communities. The prospects are good. With the definite assurance that modern and adequate facilities will be constructed under the Virgin Islands Public Works Program, an intensive study of educational policies and methods is in process and, with the in- centive to raise the level of professional training, it is certain that practical and effective results should accrue from the ground work now being laid. The objective of the administration is to get full return for every dollar expended in the better education of the younger generation as responsible citizens in a democracy, willing and able to work in all fields of endeavor. HEALTH AND SANITATION Upon the invitation of the local administration the American Public Health Association sent a survey team to the Virgin Islands to make a comprehensive study of the medical care and public health needs. An excellent report has been submitted with many practical recommendations which should be implemented. The surveyors stated that the medical care program has been converted into a well integrated preventive-therapeutic network of health service available to the entire population. They recommend that: "First priority should be given to reducing the high death rate among infants and preschool children, with special attention to diarrhea and enteritis, pneumonia, and prematurity, and that every effort should be made to improve the poor nutritional status of the population, which un- doubtedly represents one of the most serious obstacles of good health." The venereal disease section of the United States Public Health Service also made an extensive survey in the islands for discovering 22 -f REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS and treating syphilis. During the period April 30 to June 29, 1951 a total of 12,750 blood tests for syphilis were made on residents of the islands ; a total of 1,414 tests were returned as being either positive or weakly positive or 11.1 percent. With the exception of 193 cases these persons were all given a physical examination and a diagnosis was made as to the presence or absence of syphilis. Nearly three- fifths of the cases were previously untreated with 41 percent being returned to treatment for additional therapy. In addition to treating legal residents, 1,157 immigrants from surrounding islands were tested. The birth rate in the Virgin Islands was 33.5 per 1,000 in 1950 as compared with 30.4 in 1940 and 35.7 in 1949. The date rate in 1950 was 14.0 as against 22.2, 10 years ago. In 1940 the infant mortality rate was 136.2 and was reduced to 56.9 by 1950. This is the lowest infant mortality rate ever recorded in these islands. No major out- breaks of infection occurred during the year. There were a number of cases of whooping cough in St. Thomas. The islands were touched by the pandemic of influenza which followed the course of the eastern United States seaboard and the larger islands further north. No reliable figures can be given as to the number of cases involved since in most instances persons aJffected did not seek medical attention. No deaths occurred. Measles was sporadic in occurrence in St. Thomas. Three new cases of Armour-Hansen disease were reported during the year. After many years of persistent efforts the United States Public Health Service finally approved the proposal of sending Hansen dis- ease patients of the Virgin Islands to the Federal institute at Car- ville, La. With the cooperation of the United States Air Force 18 patients were transported to Carville for better institutional care. A total of $807,902.00 was expended in the Virgin Islands for medical care and public health needs. Funds for the health services were obtained chiefly from the Federal Grant-in-Aid programs and municipal appropriations. The grant-in-aid funds were expended for maternal and child health, crippled children, venereal disease con- trol, tuberculosis control, general health and mental health services, cancer control, heart disease control. Unfortunately most of the health services in the Virgin Islands are rendered free of charge. There is only a very limited return from the people who benefit from these services. In the absence of social service functioning only the persons who volunteer to pay or are obviously in good circumstances are required to pay for the services. Even then the fees are unrealis- tic and far out of line with the actual cost of the services rendered. Efforts have been made by the administration to have proper sched- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 23 ules of fees established by legislation, but the cooperation of the municipal councils was not forthcoming. The mass X-ray survey for tuberculosis continued during the year in St. Thomas. Emphasis was made on securing applicants for health certificates, health permits, drivers' licenses, antepartum cases, out- patient clinic cases, and students in the eleventh and twelfth grades of high school. This program was conducted in St. Croix during the previous year. Of 1,401 persons X-rayed 1 active case was discovered and 8 new cases from other sources. A BCG project under the aus- pices of the United States Public Health Service was begun in the islands during the year as an offshoot of the work being done in Puerto Rico. The response in St. Thomas was greater than that in St. Croix. No summary of the work has been released to date. Progress was made in reducing mass routine examinations of school children. During the year the excellent practice was adopted of having parents present at the time of examination. The school-lunch program is measurably important and is reflected in weight gains and general health. A beginning has been made in the development of a written policy and program which could be actively supported by both the departments of health and education. Experience has demonstrated that parents will be present at the examinations of their children in school or at the clinics. It has also been demonstrated that examina- tions without parents present are of limited value. A basic index is the number of children with significant remediable defects which are not corrected. Accurate statistical data are not available, but circum- stantial evidence and opinions indicate that there is a significant num- ber of defects, such as poor vision and poor teeth which are uncorrected. A high priority will be given to the care of children with remediable defects on the basis of the essentially preventive character of such service. In the field of maternal and child health considerable progress has been experienced. An obstetrician was added to the staff along with another pediatrician. A municipal physician added to the staff of the municipal hospital in St. Thomas is also a pediatrician. Another has a specialty in opthalmology. These additions have materially im- proved the quality of service which is offered. Early antepartum care to mothers is almost complete. Most women are aware that it is a statutory offense not to be examined by the fourth month of pregnancy^ More than 90 percent of all deliveries in St. Croix were in the hospital. Constant effort is being made to raise the 65 percent figure in St. Thomas to that level. Postpartum care to patients delivered out of hospital is given by a nurse-midwife for 9 days. 'A program of post- partum examination to all delivery patients after 6 weeks is gradually^ being enlarged. 24 -f REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Kegular well-baby and preschool clinics ranging in frequency from once a week in the towns to once a month in the country districts have met with very favorable response. The free distribution of nonfat milk and a poly-vitamin has contributed in part to the success of this activity. All children 2 months and older are vaccinated and at the same time they obtain diphtheria, pertussis, and toxoid inoculations. Parents are being encouraged to have defects encountered in the chil- dren corrected early. There are five clinics in the towns and nine in the country districts. In the country districts sick babies have also to be admitted. There are 151 children on the crippled-children register. Specialized services are organized under direct supervision of an orthopedic surgeon who visits the Virgin Islands weekly. Plastic surgery is done by contract in Puerto Rico. A trained physiotherapist and orthopedic nurse was added to the staff this year. An otolaryn- gologist who visits the islands bimonthly from Puerto Rico places special emphasis on hearing defects arising in children. Where prob- lems arise in children and a specialized service is not available, funds are sufficient in this program to obtain care either in Puerto Rico or in continental United States. On the request of the administration a nurse consultant was as- signed to the islands during the year by the United States Public Health Service. This has done much to alleviate the need for ade- quate leadership in this field. The quantity of work which is at- tempted through a generalized program of public-health nursing, where bedside care is also offered in the home, is prodigious. There are eight public-health nurses in St. Thomas and five in St. Croix. The two district nurses in St. John do public-health nursing and double as nurse-midwives. Other services which are offered are health education, a mental-health program, nutrition and social work. Un- fortunately the medical social worker who resigned in October 1950, was not replaced up to the close of the fiscal year. Thus this valuable service has had to be suspended temporarily. Improved sanitation remains one of the most challenging phases of public-health work. Unlike so many other areas in continental United States, the Virgin Islands are still fighting for the health of the individual at the level of his water, milk, and food. In the ab- sence of major outbreaks, progress is slow in arousing that aware- ness which should be achieved. Pipes have been laid in the three towns through the assistance of the Federal Government for water, salt water, and sewage. The nuniber of connections which have been made to date, however, are pitifully small. The municipal councils are cold to appeals for legislation to enforce connection on the part of the householder or even business places to the extended sewer REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 25 system on the grounds of the hardship of costs, although every provi- sion has been suggested to assist in cases of persons who are really in need of financial help. Unfortunately, too many have come to ac- cept diarrheas and dysenteries as inevitable and ignore the important role of the sanitary privy. A milk-control law in operation has served to eliminate the producer who refused to make any improvement in his method of milk handling. Those who continue are tolerant and in many instances responsive to the inspector who constantly prods for more improvement. A pasteurizing milk plant in St. Croix is a source of much pride to that island and is meeting with success. Every eifort is being made by the health department to have this producer serve as an agent to the raw-milk producers in getting them to accept the improved methods of making the local milk supply safe and sanitary. Certification of eating and drinking establislnnents under the regu- lations of the new sanitary code is a further means of ensuring the health of a large number of people in St. Thomas. Elementary safe- guards are being emphasized and enforced. However, the sanitary regulations are not enforced in St. Croix because the municipal coun- cil of that municipality has not as yet adopted them, despite repeated requests from the administration. In St. Croix the residual-spray program has continued to control filariasis and the elimination of the nuisance value of mosquitoes. It has also had considerable effect in reducing the fly population. Re- ports continue to emphasize the disappearance of the aedes aegypti mosquito on that island. A similar program should be instituted in St. Thomas. The health department has been very active in sending members of its staff for additional training. The assistant commissioner of health in St. Thomas took a refresher course in internal medicine at Harvard University. Four doctors who were added to the staff from foreign countries (2 from Estonia, 1 from Hungary and 1 from Mexico) will be given short periods of orientation and observation along public health lines in continental United States. The obstetrician, the first to go, left in the latter part of the fiscal year. An X-ray technician returned to St. Thomas after 1 year of training at Strong Memorial Hospital, Rochester, N. Y. The statistician took a course in public health at the University of Michigan. A sanitary engineer will soon join the staff, after being trained at the same institution under the auspices of the health department. A technician in St. Croix obtained 3 months of training in milk and water analysis with the New York City health department. A public-health nurse in St. Croix was granted 1 year's training in Durham, N. C. A number of heads of 26 -- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS divisions attended national conferences particularly that of the American Public Health Association. PUBLIC SAFETY Traffic control and pedestrian safety continued to be the principal police problem in the Virgin Islands. During fiscal year 1951 there were 855 motor vehicles in St. Thomas, of which 212 were taxicabs. In St. Croix 850 automobiles were registered. In order to deal with traffic and safety problems a safety education program was initiated by the St. Thomas Police Department. This program included a weekly broadcast over the local radio station WSTA, the showing of moving pictures and slides, and the delivery of lectures on safety to high school and parochial school children on the islands of St. Thomas and St. Croix. Through arrangements with the Police Commissioner of New York City, permission was obtained to send a member of the police force each year to take the regular 3-month course of training at the Police Academy without cost to the local government. A member of the St. Thomas Police Force took the training course during the fiscal year. In-service training was also given to the members of the force. In St. Thomas a total of 1,149 criminal complaints were filed in the courts, as compared with 974 cases in fiscal year 1950. Some 324 of these were traffic violations and 215 were for disorderly conduct. Convictions were secured in 681 cases. Of a total of 324 complaints of traffic violations, there were 268 convictions in the courts. The bureau of criminal investigation also had a good record of accom- plishment. A total of 137 cases were reported, of which the bureau solved 113. The juvenile-aid bureau, with a policewoman in charge, handled 173 cases involving youths under 21 years of age. Of these, 78 were adjusted by the bureau, 38 transferred to the Social Welfare Department, 54 transferred to the juvenile court, and 3 cases carried over to the next fiscal year. A youth center was also kept in operation by the Juvenile Aid Bureau. In St. Croix a total of 282 complaints were filed in the courts, as compared with 349 in 1950. Of these, 110 were for disturbance of the peace. Convictions were obtained in 227 cases. Only 31 cases of traffic violation were reported due to the fact that considerable atten- tion was given to the traffic problem because of the increase in motor vehicles. Under new direction, the St. Croix Police Department has instituted a number of changes which are producing a smoother func- tioning organization. The Department also initiated activities for the purpose of providing wholesome recreation for youth in order to REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 27 ;assist in controlling the tendency toward an increase in juvenile de- linquency. At the close of the fiscal year there were 59 prisoners in Hichmond Penitentiary as compared with 36 in 1950. A desirable goal for the Virgin Islands is the establishment of an Insular Department of Public Safety, to coordinate and improve the police services to the people. Unsuccessful attempts have been made by the Administration to have such a department created. The in- •creasing number of taxicabs is also creating a great concern. A pro- posal of the administration to the municipal council of St. Thomas and St. John to enact legislation classifying taxicabs as public car- riers subject to the control of the Public Utilities Commission was not acted upon. Other improvements required in the field of public safety include the installation of two-way radio in police cars, and the need to provide more parking space in the city of Charlotte Amalie. It is planned to alleviate the need for parking space when the new water- front highway now under construction is completed. PUBLIC UTILITIES All efforts to obtain funds from various sources for the expansion of the power-generating and distribution facilities on the island of St. Thomas were unsuccessful. A proposal was made to the municipal council to approve the transfer of power facilities to the Virgin Islands Corporation on condition that the corporation include a substantial amount in its 1952 budget for their proper development and expansion. While the municipal council at first refused to give approval to this proposal, it is believed that this policy will be accepted during the next fiscal year. It was not possible to make any improvements during the present fiscal year due to lack of capital. In the meantime the power generating plant is producing to full capacity, and it is impossible to add any more consumers although the need for more service is acute and continually increasing. In St. Croix the situation is more hopeful. There the municipal council approved a similar proposal, and it is expected that, during the 1952 fiscal year, funds will be made available by Congress for the Virgin Islands Corporation to acquire and expand the power facilities on that island. As a temporary measure, the Board of Directors of the Virgin Islands Corporation authorized a loan of $30,000 to the St. Croix Power Authority. Construction of modern telephone facilities in both St. Thomas and St. Croix was under way during the fiscal year. It is expected that these facilities will be completed and placed in operation next year. This improvement is included in the Virgin Islands Public Works Program financed with Federal funds. 28 -f REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS In St. Thomas a 10-year franchise for the operation of all busses was granted to a private operator. The service is closely supervised and regulated by the St. Thomas Public Utilities Commission. Al- ready improvements in the service rendered are in evidence. PUBLIC WORKS The potable water supply systems in St. Thomas and St. Croix were completed during the fiscal year and placed under the jurisdiction of the public works department for operation. In St. Thomas the sys- tem consists of a series of subterranean galleries and cisterns for stor- ing water caught from rainfall on the air-strip. The water is filtered and chlorinated and piped to town where an extensive distribution system has been installed. This project, including the surfacing of the airport runway as a catchment area, cost nearly 1 million dollars. In order to obtain expert advice on the efficient operation of this unique system, the cooperation of the Government of Puerto Rico was solicited in having the executive director of its aqueduct and sewer authority make a first-hand survey of the facilities and recommend methods of operation as well as a rate schedule for the sale of the potable water. A careful survey was made of the system, and a splen- did report with practical recommendations submitted by the water expert. Based on this report the administration suggested to the municipal council a draft of ordinance for the operation of the system and establishing a schedule of rates for the sale of water. Consider- able opposition was experienced to the proposals made by the admin- istration, which delayed the establishment of an efficient organization for the operation of the system. Up to the close of the fiscal year, the necessary legislation had not been enacted. However, it is hoped that the matter will be resolved shortly, so that the system may be operated smoothly. In the meantime the system was placed administratively under the public works department. Approximately 22,604 tons of water were furnished to private and public consumers from this system. In addi- tion during one of the severest droughts experienced in many years, a total of 1,436 tons of water was delivered by truck to private indi- viduals. At one time the United States Navy assisted by delivering about 400,000 gallons of water from the naval base in Puerto Rico. A total of 197 building permits were issued in St. Thomas for over $670,000 worth of private construction. Electrical-installation per- mits issued numbered 186, besides 88 sanitary-installation permits, 38 water-connection permits, and 50 sewer-connection permits were issued. The number of sewer connections made would have been REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 29 greatly increased if the necessary legislation for making it mandatory to connect premises to the new sewerage system had been enacted. The potable water supply systems in St. Croix were also completed during the fiscal year. In that island the systems consist of artesian wells and distributing lines. A survey of these systems was also made by the water expert from Puerto Rico, and a report with recom- mendations submitted. The matter of having the necessary legisla- tion enacted for the operation of these systems will be taken up early in the next fiscal year. At Frederiksted, St. Croix, an addition to the pier was constructed by the public works department, making a unit 140 feet long. Plans were prepared for and the construction of a building to house the new X-ray unit at Christiansted municipal hospital was supervised by the public works department. Several public buildings were repaired. Forty-four building permits for an estimated $322,000 worth of con- struction were issued, together with 78 electrical installation permits, 16 sewer-connection permits and 3 salt-water-connection permits. By special arrangement with the office of Territories of the Depart- ment of the Interior the road construction phase of the Federal Virgin Island Public Works Program was transferred to the local public works department for execution. LABOR AND LABOR RELATIONS By act of Congress the United States Employment Service was extended to the Virgin Islands, and funds were made available by the Federal Government for the establishment of free employment offices in the islands. In order to prepare the plan of operation and the budget, an expert from the United States Department of Labor was assigned to the area. By the close of the fiscal year the plans had been approved by the United States Department of Labor, and ar- rangements were being made for the opening of the first public em- ployment office in Charlotte Amalie. In the municipality of St. Thomas and St. John 86 cases were handled under the local workmen compensation law, and an aggre- gate of $5,401.Y8 was awarded. During the previous fiscal year 116 cases were handled with awards aggregating $12,772.70. A number of safety inspections were made throughout the year, which may account for the drop in the number of injury cases handled by the Commission. By amendments to the Workmen's Compensation Act the scope of compensatory injuries was broadened to include a list of occupational diseases and provide compensation for pluropneumonic injuries of a tubercular origin. In the administration of the local 30 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Avage-and-hour law about 50 wage complaints were heard and settled. The. Workmen's Compensation Commission, which also serves as a Labor Relations Board, disseminated advice and guidance in the. field of labor relations. There were no major disputes in the munici- pality during the year. The Compensation Commissioner of the municipality of St. Croix investigated 30 cases which resulted in awards totaling $1,157.16 as compared with 38 cases in 1950 with $2,001.66 in awards. Over 250 safety inspections were made, the results of which are reflected in the decline in the number of cases handled. A number of wage com- plaints under the St. Croix wage-and-hour law were also heard by the Wage Commissioner. During the year a Special Industry Committee under the Federal Fair Labor Standards Act held hearings in the Virgin Islands. As a result of these hearings increases were recommended in the minimum wage rates of almost all industries and their branches which are engaged in interstate commerce. Special provisions of the Fair Labor Standards Act permit lower wage rates in the Virgin Islands than the statutory minimum of 75 cents applicable in continental United States. The industry committee has recommended minimum wage rates rang- ing from 20 cents an hour to 50 cents an hour. The new wage rates were being processed by the United States Department of Labor at the close of the fiscal year. An over-all examination of local wage and hour law^s indicates that it would be more feasible and practical to abolish the present classifi- cation of labor into special categories and to provide instead minimum wage and maximum hour standards for industries and businesses according to classes. This new approach is being carefully studied before appropriate legislation is proposed to make make the changes. SOCIAL WELFARE One of the most significant events of the year was the extension of the Public Assistance Titles and the Old Age and Survivors Insurance Title of the Federal Social Security Act to the Virgin Islands. The people of the islands are now excluded only from the unemployment insurance provisions of the Social Security Act. The Public Assist- ance program became effective on October 1, 1950; enabling local legislation was enacted; expert assistance obtained, and a plan de- veloped and approved. The plan provides for handling of assistance on a thoroughly modern basis, on principles accepted nationally as sound and just, and applied uniformly throughout the Virgin Islands. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 31 With the aid of Federal funds pubhc assistance distribution in- creased from approximately $7,000 per month in 1950 to about $12,500 per month in 1951. At the close of the fiscal year the case load in St. Thomas and St. John had increased only from 622 to 684 ; but the average grant per month per person rose from $6.47 in 1950 to $8.17 in 1951. In St. Croix the number of cases handled increased from 626 in 1950 to 787 in 1951 ; and at the same time the average monthly grant per person rose from $5.27 to $8.91. Offices of Federal Social Security and Internal Eevenue have been opened in order to administer the provisions of the Old Age and Survivors Insurance Title. Employees and employers have complied willingly and the program is now in progress. The Queen Louise Home for the Aged functioned satisfactorily during the year with an average of 17 residents. The Corneiro Home furnished shelter to an average of 23 needy aged persons. The Mandahl School for Boys carried an enrollment of 36 (9 from St. Croix) during the year. While 19 boys were discharged 24 were enrolled. A system of merits and demerits, known as the "Mandahl Group Plan" was devised to develop good work habits. A total of 15 delegates from the Virgin Islands attended the Mid-Century White House Conference on Children and Youth. Extensive improvements were made to the home for indigents in Frederiksted, and it was renamed "Aldersville." The King's Hill Home operated at its full capacity of 150 patients. The supervised foster home was relocated and reorganized and a total of 24 children received care during the year. In order to fill the great need for recreation one of the child welfare workers organized, on a voluntary basis, a recreational program in Frederiksted. This program was so successful that a similar one was organized in Christiansted. Through the generous assistance of the United States Government a comprehensive program of social welfare services and public as- sistance is developing in the Virgin Islands. More aid to indigents is now available than ever before. While this program is highly appreciated by the people, it could be further developed if sufficient local funds were available for matching purposes. Under the public- assistance program, for example, the full amount of $160,000 per annum provided by the Federal Government is not utilized, because enough local funds are not available for matching. Only about $75,000 of this amount can be matched by local funds. Thus the pro- gram is extremely limited not only in number of persons who are assisted, but also in the amount of the individual grants. A limiting factor, too, is the fact that the matching formula which has been applied to the Virgin Islands is the old dollar-for-dollar formula 32 > REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS with which the program began in the United States 15 years before. For continental United States, Alaska, and Hawaii, the Federal Government now provides for public assistance three dollars for each State dollar. TOURISM The Tourist Development Board of the municipality of St. Thomas and St. John was superseded by the Virgin Islands Tourist Develop- ment Board which was created by an act of the Legislative Assembly. Accordingly the membership on the Board was increased to include representation from the municipality of St. Croix. The Board ap- proved a working plan for the year wdiich included promotional features, newspapers advertising, window displays, and local edu- cational programs. In order to meet the increasing demands for more tourist accommo- dations a large luxury hotel was opened in St. Thomas, and ad- ditions to other hotels were made. By the end of the fiscal year there were facilities to take care of nearly 1,000 persons, as compared with previous total accommodations for some 500 persons. In St. Croix facilities also increased from about 150 to 200 rooms. This increase was due to the opening of a small hotel on the outskirts of Frederik- sted and additions to existing hotels. Over 60,000 persons visited the islands as tourists during the fiscal year. Tourist expenditures spiraled over $3,000,000 as compared with $2,000,000 in the previous fiscal year. Only 7 large cruise ships visited St. Thomas, landing 3,124 pas- sengers during the winter cruise season as compared with 15 cruise ships landing 7,692 passengers the previous year. The increase in competition among the Caribbean islands for the tourist trade is con- sidered the prime factor in causing this decline. However, the next winter season is expected to be brighter due to the fact that 11 cruise ships are already scheduled to visit the islands. At the close of the fiscal year there was a possibility of 7 more being added, making a total of 18 ships. Arrangements have been made also for these ships to remain in port for a longer period of time. On the other hand over 35,000 passengers were brought to the islands by the two airlines Avhich operate regular passenger service to the Virgin Islands. Funds from various sources stimulated the activities of the Virgin Islands Tourist Development Board. The Virgin Islands Corpora- tion made $15,000 available, providing matching funds were con- tributed in a similar amount. A total of $13,950 in matching funds was subscribed as follows: $9,000 from the two municipalities and REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 33 $4,950 from the two chambers of commerce. Through these generous contributions to an important economic cause, a great deal of publicity material was prepared and distributed by the Board, including 40,000 full-color tourist folders, 2,000 travel agent's handbooks, and 5 win- dow exhibits which were displayed by over 100 prominent travel agents in the United States. The islands were also publicized in several newspapers and magazines. These promotional activities contributed to the increased number of visitors to the Virgin Islands during the past winter season. It is anticipated that the Virgin Islands Cor- poration will increase its cqntribution for tourist development during the next fiscal jesLV. In order to keep in constant contact with tourist development plans and activities on a regional basis the Virgin Islands has continued to be represented on the Caribbean Interim Tourism Committee created by the Caribbean Commission. In view of the increasing conscious- ness of the importance of the tourist trade to the economy of the Is- lands by business and public groups it is anticipated that a greater effort will be made during the next fiscal year to improve tourist facilities including recreational areas, and to attract more visitors to the islands. VIRGIN ISLANDS AUDITOR During the year an audit was made of the fiscal accounts and rec- ords of the Department of Finance, St. Thomas, covering the fiscal operations of that department for the fiscal year 1950. As a result of experience gained during the audit, it was clearly indicated that a change in the system of and maintenance of the fiscal accounts was mandatory. A similar audit planned for the Finance Department, St. Croix, was deferred to permit priority consideration to be given to work on the introduction and installation of the new accounting system. The audit of the fiscal accounts of the Finance Department, St. Croix, however, will be undertaken in the near future and the findings thereof together with those of the audit of the Finance De- partment, St. Thomas, will be submitted as one report. The Auditor issued a Manual of Procedures for Property Control and Account- ing and assisted in the revision of the format of the annual budgets. VIRGIN ISLANDS COOPERATIVE The Virgin Islands handcraft cooperative in St. Thomas is a basic industry which can be expanded into a very important economic as- set. From the large number of inquiries and orders received there are definite indications that a substantial market exists for locally 34 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS produced shoes or sandals of straw ; woven materials with native de- signs ; jellies and preserves of native fruits. There is still an urgent demand among tourists for inexpensive and distinctive native-made products and knickknacks. One of the chief drawbacks to further expansion is the scarcity of the palms used in the making of baskets and other articles. The reed obtained from the island of St. John for making novelty articles is also getting depleted. Nevertheless, the cooperative sold $47,345 worth of straw-work and needle-work during the fiscal year. A total of 414 workers received over $27,000 in wages. In addition 34 inde- pendent producers received about $2,400 for sale of articles placed with the cooperative on consignment. Nearly $2,000 in bonuses were distributed to the workers. The business enjoyed a small net profit from its operations. • In order to expand the handcraft business it is necessary to have more persons trained in this type of work. Raw materials at reason- able prices are also urgently needed. While the cooperative cannot finance the training program nor the production of raw materials, it can serve as a reliable retail outlet for all locally produced hand- craft and needle work. With the revitalization of the vocational edu- cation program in the high schools through contributions of Federal funds it is hoped that more persons trained in handcraft will be at- tracted into this lucrative home industry. WILDLIFE CONSERVATION With Federal funds made available under the Pittman-Robertson Wildlife Restoration Program, wildlife conservation activities were carried on in the Virgin Islands by a supervisor and a game commis- sion. The life history of the mongoose was closely studied with the competent assistance of a predator control expert. Several methods of extermination were tried and their effectiveness analyzed. The mongoose is a serious threat to game birds in the Virgin Islands. The life history of the zenaida dove, a most valuable game bird, was also studied. Certain cays and islets where seabirds propagate were declared wildlife refuges by the game commission. It is hoped that this move will help to preserve some of the rare species. Water Island was designated by the commission as a refuge for white-tailed deer. The banding of white-crowned pigeons continued in order to determine their annual flight movements. This specie is considered one of the most beautiful in the Caribbean area. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 35 LEGISLATION While Congress did not act favorably on all Virgin Islands legisla- tion before it for consideration, some beneficial legislation was enacted. The long-sought appropriation of 1 million dollars for dredging the harbor of St. Thomas was included in the Rivers and Harbors Appro- priation Bill. However, the funds were impounded in connection with the defense effort of the United States. This situation is completely understood and accepted by the loyal American citizens in the Virgin Islands. A bill (S. 2227) to permit the admission of alien mental patients who are legal resictents of the Virgin Islands into St. Eliza- beths Hospital was enacted. Congress also passed a bill (H. R. 6343) providing that foreign raw mxaterial which is admitted into the United States free of duty might likewise be admitted into these islands free of duty. This has already resulted in the establishment of a small button factory in St. Thomas. The United States Employment Serv- ice Act was extended to include the Virgin Islands by the enactment of bill S. 3546. During the fifteenth session of the Legislative Assembly of the Vir- gin Islands a number of important bills were passed which received executive approval. Included among them were a revised Anti-dis- crimination Law, an act creating a Virgin Island Tourist Development Board, an act to establish a Civil Defense Agency within the Virgin Islands, an act creating the Virgin Islands Planning, Urbanizing and Zoning Board, an act creating the Virgin Islands Housing and Re- development Authority and an act providing for the acceptance and use of Federal aid for vocational education in the Virgin Islands. Several bills passed by the Legislative Assembly were vetoed because they included provisions which represented a pattern of legislative encroachment into executive functions. These provisions required that routine administrative rules and regulations of administrative agences be sumbitted to legislative approval. The executive took the position that it was within the jurisdiction of the legislature to estab- lish by law the policies of administrative agencies, boards and commis- sions; but that it was not within the province of the legislature to approve these administrative rules and regulations, which obviously could not be in conflict with the basic law. In the past such legislative encroachment had been overlooked and it resulted in several important laws not being implemented or enforced because the legislature failed to approve or delayed in approving the administrative rules and regulations. 36 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ADVANCEMENTS TOWARD SELF-GOVERNMENT Efforts to attain more self-government for the people of the Virgin Islands were crystallized in 1951 when the Chairman of the House Committee on Interior and Insular Affairs, Hon. John E. Murdock, introduced a revised Organic Act for the Virgin Islands. This was the result of initiative taken by the administration and the coopera- tion of the Department of the Interior. At the 1950 session the Virgin Islands Legislative Assembly created an Organic Act Revision Com- mittee to study the present act and recommend significant changes. With the introduction of H. R. 2644, the bill to revise the Organic Act of the Virgin Islands, the Assembly held a special session early in 1951 to consider the report of its Organic Act Committee on amend- ments to be proposed to this bill. Subsequent to that session a com- mittee of the Legislative Assembly journeyed to continental United States to consult with members of Congress and Virgin Islands organ- izations in New York on the proposals for a new Organic Act. The Assembly's proposals include a single legislature, single treasury, a Resident Commissioner in the Nation's capital, the return to the insular treasury of the internal revenue taxes, and an elective governor. Congressman Fred L. Crawford visited the Virgin Islands prin- cipally to discuss the revisions of the Organic Act. At the request of the administration it has been assured that members of the House Committee on Interior and Insular Affairs will hold hearings in the islands during the next fiscal year on the proposed changes. It is anticipated that there will be conflicting views on some major points of the proposed amendments in the basic law of the Virgin Islands when the hearings are held, especially in the matter of the appointment or election of a governor. The administration has taken the stand, however, that without the return of the internal revenue taxes on articles produced in the islands and exported to continental United States progress in greater self-government and in unification of the legislative and executive machinery on an insular level will be practically impossible. The interest manifested by members of Congress in the political advancement of the Virgin Islands is gratifying. The people of these islands have been gradually advancing in the techniques and principles of American democracy, and there is a public consciousness of the rapid strides being made in the neighboring American territory of Puerto Rico. In the meantime the first native administration has been making a determined effort to demonstrate the ability of the people of the Virgin Islands to govern themseh'es. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 37 There is an essential to political advancement under the principles of American democracy which has not taken root in the Virgin Islands to date. The political aspirations of the people are not formalized into the two-party political system which is considered the foundation of political advancement in continental United States. There are two schools of thought as to how this may be achieved. One school argues that the unification of the local government through the necessary revisions of the Organic Act will result in the establish- ment of the two-party system on an insular basis. The other school believes that the establishment of the two-party system is a necessary prerequisite to further advancement in self-government. Regardless of the point of view taken on this matter, there should be no deterrent to the adoption of a revised Organic Act at the earliest opportunity. The Governor's recommendations are contained elsewhere in this report. It is hoped that the holding of hearings on H. R. 2644 in the islands will enable the people to express their views on this important matter of greater autonomy and thus consolidate the gains made since the enactment of the Organic Act in 1936 and provide for future orderly political progress. CONCLUSION The people of the Virgin Islands are well advanced in the applica- tion of the principles of democracy. In the process, however, the islands are experiencing severe "grawing pains." It should be em- phasized, however, that the process of converting a colonial people, accustomed to a paternalistic government, to a truly democratic foundation of self-government and self-dependence is a long and slow one. It should be remembered, too, that the pattern of self-govern- ment in the Virgin Islands has been developing only since 1936—15 years ago—when restrictive income and property qualifications for voting were replaced by universal suffrage. Under the jurisdiction of the United States the islands have ad- vanced considerably in educational standards and have made marked social and economic progress. Under the existing Organic Act the Virgin Islands have enjoyed a good measure of autonomy. With the exception of the right to elect their own Governor, to vote in national elections, and to be represented in Congress, they have all the benefits and the privileges of American citizens. They have a Bill of Rights which is roughly equivalent to the Bill of Rights in the Constitution of the United States, including freedom of speech, freedom of the press, and freedom of worship. They have universal franchise 38 > REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS through which they elect their own legislatures with very broacl legis- lative powers. A generous national government has helped to pro- mote a reasonable degree of freedom from w^ant. Because "wisdom in self-government develops slowly, with exer- cise," the wise course, in the opinion of the Governor, for effective de- velopment of self-government is to seek a composite of those measures Avhich will give the islands greater autonomy and, at the same time, which would require and assist in making the islands more self-sup- porting, more economical in their operation, and more effective and responsible in their relationships with the United States. The immediate goals should be (1) the return of the Federal in- ternal revenue taxes, (2) a Resident Commissioner, (3) a single legis- lature, with specified annual sessions, (4) representation by islands instead of by districts within islands, (5) an honorary board of com- missioners to pass upon purely local matters, (6) legislative confirma- tion of policy-making employees only, (7) a single treasury, and (8) ultimately but not immediately, the election of the Governor, when these islands shall have developed a responsive and responsible elec- tive system and shall have achieved the necessary political maturity to provide safely for a fully autonomous government. In addition to the foregoing, the Federal legislative program for the islands for 1952 should include (1) the transfer of the agricultural management of the islands from the Department of the Interior to the Department of Agriculture; (2) the extension of the National Guard Act to the islands ; (3) the extension of the Federal credit union system to the islands; (4) the revision of the matching formula for public assistance from the present dollar-for-dollar formula to the three- dollar-for-one-dollar formula which is in effect for the States ; and (5) the revision of the Federal public works program authorized in 1944: to provide sufficient funds for an acceptable school housing program, additional potable water supplies, and adequate power systems. Local legislative goals for 1952 should include (1) a revision of local tax laws and a tightening of tax enforcement procedures to assist in closing the gap between local revenues and expenditures; (2) reor- ganization of the cumbersome local government pattern to prevent duplication of effort, overlapping of authority, and unnecessary ex- penditure of money and of time-consuming energy; (3) a realinement of local agencies dealing with the economic advancement of the islands ; (4) an adequate civil defense law; (5) an adequate zoning and plan- ning law to include provisions for preservation of historic sites and architectural monuments so as to maintain the islands' old world charm and atmosphere as an economic asset; (6) a program to require, for the preservation of the health of the islands, the use of the Dublio REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 39 sewerage and potable water supply systems ; and (7) a revision of local wage and hour laws to provide for minimum wages and maximum hours to be fixed, after economic studies, by classes of industry rather than by work categories. The Virgin Islands have acquired a splendid reservoir of friendship and support in Washington. That friendship and support can be translated into effective practical action for long-range benefits if the islanders should continue to demonstrate, as they have done in the past, their willingness to assume the greater burdens and responsibili- ties of self-dependence and self-government. The Governor of the Virgin Islands closes this annual report by saluting those new residents of the Virgin Islands who are actively participating in enterprises which spell advancement not only for themselves but for the islands as well. The establishment by private enterprise of the luxurious Virgin Isle Hotel, the construction of other hotels and guest houses, and new homes, and the opening of broad- casting station WSTA, all by continental American residents of the islands, have exhibited a degree of faith and confidence in the future of the islands which is most encouraging. Rainfall in inches, 1950—51 ^ July 1950 August September October November December January 1951_ February March. 1 April May June Total 1950-51 average for Virgin Islands, 33.91 inches. St. Thomas 40 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Distribution of local Government REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Education statistics, 1950—1951 41 42 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Real property statistics REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS > 43 Comparative statement of actual revenues of the municipality of St. Thomas and St. John Revenues Piscal year 1930-31 Fiscal year 1940-41 Fiscal year 1950-51 Direct taxes: Real property tax - Income tax Personal property tax Road fund: (a) Gasoline tax (b) Automobile license fees Road fund balance from 1940 Indirect taxes: Net revenues from customs Taxes on inheritance Court fees ' Stamp dues Fees from steamer tickets Licenses and licenses fees Pilotage fees Trade tax Lamp tax Horse, carriage and boat tax Vendue fees and percentage Fees from burgiier briefs Internal revenue taxes Sundry revenues: Pay patients at municipal hospital Fees from customs house Corporation license fees Miscellaneous Returns from night soil removal service Passport fees Returns from telephone service Contribution from St. Thomas Harbor Board- Contribution from St. Thomas lottery Tax on amusement and entertainment Repayment by power authority Loan from homestead fund 785. 66 154. 12 462. 81 $50, 000. 00 138, 852. 45 $91, 939. 47 380, 767. 11 301.07 508. 88 969. 03 326. 95 997. 00 , 709. 00 , 915. 31 867. 46 99.19 , 375. 30 9, 981. 48 8, 005. 72 2, 744. 02 29, 614. 74 251. 74 6, 232. 41 3, 773. 60 1, 732. 00 7, 270. 54 11, 703. 04 27, 061. 37 27, 199. 55 23, 952. 33 23, 500. 00 3, 040. 02 14, 000. 18 4, 933. 63 20, 157. 80 33, 111. 42 26, 425. 75 195, 907. 47 571. 77 662. 21 598. 79 262. 64 125. 23 69.68 437. 24 278. 19 2, 107. 58 6, 790. 57 625. 82 2, 139. 87 7, 889. 20 3, 400. 65 313. 00 10, 055. 80 37, 524. 89 20,346.26 8, 710. 00 12, 952. 00 935. 55 10, 000. 00 1, 591. 00 Total- - 1 128,477.53 349, 162. 39 927, 434. 56 1 Less real and property tax $2,241.08 transferred to 1931-32. Comparative statement of actual revenues of the municipality of St. Croix Revenues Fiscal year 1930-31 Fiscal year 1940-41 Fiscal year 1950-51 Direct taxes: Ground and building tax and real property tax ' Horse, carriage, and boat tax Income tax Quarter percent tax Automobile tax _-- Gasoline tax Immigration tax Indirect taxes: Import duty Export duty Ships' dues Cranage and wharfage Stamp dues.- Vendue fees and percentage Tax on inheritances Court fees, and fees from police court • Fees from burgher briefs Internal revenue taxes: Excise duty Internal revenue Sundry revenues: Fines and confiscations Revenues from the prison Revenues from harbor and pilot From municipality of St. Thomas: Toward support of leper asylum Toward support of insane asylum Toward support of King's Hill Penal Farm. Toward support of penitentiary 18, 986. 19 2, 197. 50 3, 209. 90 2, 604. 63 5, 583. 51 $36, 898. 65 '"ii^i49."39' $70, 958. 25 li6,'523.'29 3, 701. 76 3, 006. 01 19,316.57 815. 81 1, 109. 44 2, 490. 17 105. 32 2, 307. 09 2, 745. 63 60.00 7, 783. 56 9, 727. 01 16, 496. 32 22, 911. 47 1,089.46 88.10 3, 107. 83 11,419.98 2, 872. 84 3, 804. 81 2, 886. 63 70.50 720. 65 4, 473. 10 2, 936. 99 9, 627. 39 8, 925. 20 1, 070. 55 800. 62 6, 177. 22 2, 044. 89 2, 502. 11 4, 134. 13 4, 670. 18 1,057.11 6, 839. 26 8, 245. 35 35, 776. 26 97,061.06 1,360.40 1,015.08 2, 060. 56 534. 45 973. 37 1,004.87 1,858.97 253. 69 594. 07 3, 383. 48 1 In 1931 this revenue source was known as ground and buildin property tax. g tax. 7, 541. 64 It was afterward changed to real 44 ^ REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Comparative statement of actual revenues of the municipality of St. Croix—Con. Sundry revenues—Continued From municipality of St. Thomas— Continued Returns from sanitation worli— Corporation fees Fees from customhouse Medical service fees Municipal rentals Passport fees Miscellaneous St. Croix telephone service Special tax on cattle Total. Fiscal year 1930-31 $3,011.82 433. 62 36.45 49.92 3,079.11 3,611.47 Fiscal year 1940-41 $1,858.45 1, 182. 19 109. 24 15.00 7, 289. 59 6, 098. 50 570. 80 Fiscal year 1950-51 $4,971.13 1,072.52 914. 01 5, 982. 09 2, 692. 00 2, 191. 98 12,271.63 431,777.78 Import and export statistics Imports from the United States Animals and animal products, edible Animals and animal products, inedible - Vegetable food products and beverages .- Vegetable products, inedible, except fiber and wood Textile fibers and manufactures Wood and paper Non-metallic minerals Metals and manufactures, except machinery and vehicles Machinery and vehicles Chemicals and related products Miscellaneous Total Total imports from foreign countries -__ Grand total. _ $787, 941 109, 326 1,821,112 501, 887 197, 885 291, 090 765, 584 822, 495 1, 002, 920 223, 271 1, 142, 428 $759, 221 123, 501 248, 239 B64, 602 196, 652 360, 250 796, 830 918, 539 1, 093, 221 313,616 2. 701, 374 7, 665, 939 1, 799, 623 8, 176, 045 1, 791, 180 9, 465, 562 9, 967, 225 115,240 1, 476, 474 805, 446 299, 464 479, 291 966, 300 963, 507 1, 368, 551 334, 625 1, 650, 125 9, 357, 711 1, 678, 571 11, 036, 282 Exports to United States and Puerto Rico Cattle Other animals, edible Beef, fresh, chilled or frozen Other animals, edible products Hides and skins Animals, inedible Coconuts in shell Cane sugar --- Gin Rum Whisky Cordials and liquers Wine Wood and manufactures Charcoal, wood Perfumery and toilet waters, including bay rum Containers -- Household and personal effects All other articles Total Total exports to foreign countries Grand total $71, 463 2,210 9,549 5,177 1,637 49, 717 270, 707 203, 832 46, 663 81, 197 1,590 376 23, 738 319, 135 7, 332 43, 840 $50, 292 2,096 175 6,045 2,572 1,465 500, 830 579, 823 3,080 14, 022 956 18, 412 390, 097 4,700 162, 959 1, 138, 163 559, 874 1, 734, 524 766, 532 1, 698, 037 2, 501, 056 $42, 890 1,564 8,108 400 557 1, 296, 373 619, 575 5,782 5,367 360 31, 940 396, 923 14, 194 2, 424, 039 682, 459 3, 106, 498 Exportation of alcoholic beverages by fiscal yean