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UMASS/AMHERST City Library, 'II 111! II!!! !!!!!!!!!! Ill 111 HI! !!!!! II 111! Ill Mil r« » t u„a« V n 1 2066 0344 1998 7 33* ^ ' UNITED STATES DEPARTMENT OF THE INTERIOR ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS FOR FISCAL YEAR ENDED JUNE 30, 1936 UNITED STATES DEPARTMENT OF THE INTERIOR HAROLD L. ICKES, Secretary THE VIRGIN ISLANDS LAWRENCE W. CRAMER, Governor ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS FOR THE FISCAL YEAR ENDED JUNE 30, 1936 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1936 For sale by the Superintendent of Documents, Washington, D. C. -------- Price 10 cents STACK Digitized by the Internet Archive in 2009 with funding from Boston Library Consortium Member Libraries http://www.archive.org/details/annualreportofgo1936virg TABLE OF CONTENTS Page Change in governorship 1 Economic improvement 1 Indices of upward trend 2 Development of natural resources 2 Government development 2 Private development 2 Congressional legislation 3 The Organic Act 3 Peal propei ty tax 3 Coastwise laws 4 FiscaL___ 4 Total revenues 4 Income taxes 4 Customs dues 5 Cost of municipal governments 5 Reduction of Federal deficit appropriations 5 St. Thomas Harbor board 5 Bunker coal and fuel-oil imports 6 Federal Emergency Relief 6 Works Progress Administration projects 6 Public Works Administration projects 7 The Virgin Islands Co 7 Objectives 7 The year's operations 8 Homesteading 8 Tourist and winter resident trade 10 Bluebeard Castle Hotel 10 Private operations 10 Treasury relief art project 10 Survey of Federal archives 11 Urban housing 11 Emergency Conservation work 11 Organization of Treasury accoun ting facilities 11 Non-Federal projects 12 Road program 12 Health and sanitation 13 Infant mortality 13 Death rate 13 Infantile paralysis 13 Malaria 13 Typhoid fever 13 General 13 Sanitation 14 Investigation 14 Hi IV TABLE OF CONTENTS Page Education 14 Public welfare 15 Agricultural experiment station and vocational school 15 St. Croix 15 Vocational school 16 St. Thomas 16 The Virgin. Islands cooperatives 16 Public Works department 17 Normal activities 17 St. John 17 Marine Corps air base 17 Inspection of water supply 18 Harbor improvements 18 Conclusion 18 ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Government House, St. Thomas, Virgin Islands of the United States, /September 1, 1936. The honorable the Secretary of the Interior, Washington, D. G. Sir: Pursuant to section 20 of the Organic Act of the Virgin Islands of the United States, approved June 22, 1936, I have the honor to submit the following annual report of the transactions of the Government of the Virgin Islands for the fiscal year ended June 30, 1936. CHANGE IN GOVERNORSHIP On August 31, 1935, Lawrence W. Cramer, who had been Lieu- tenant Governor of St. Croix since March 18, 1931, assumed duty as Governor of the Virgin Islands, vice Dr. Paul M. Pearson, resigned. ECONOMIC IMPROVEMENT The program of economic rehabilitation, developed and prose- cuted vigorously during the past 3 years, has resulted in marked economic improvement. The upward trend reported in the 2 previous fiscal years has continued during this year and has become increasingly apparent. In 3 short years a general attitude of despondency and uncertainty has changed to one of courage, hopefulness, and purposefulness. The rehabilitation program established by the Federal Government has been responsible to a very large degree for this change in attitude. This program of social, economic, and industrial improvement in- cludes homestead and housing projects, development of agriculture and of the sugar and rum industries, promotion of tourist and winter resident possibilities, the construction of roads and highways, improvement of sanitation and water supplies. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS INDEXES OF UPWARD TREND The following indexes reveal the upward trend : Acres in cane cultivation - Tons of sugar produced.. Gallons of rum produced Arrivals of ocean-going ships in St. Thomas: Number of ships - Tonnage Pilotage paid Value of bunker coal and oil imported Sale of native products by Virgin Islands cooperatives. Savings deposits Building permits in St. Thomas: . Number. Value REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS & view to similar development. A large tract of land is under option in St. Croix to an American capitalist interested in the agricultural development of that island. CONGKESSIONAL LEGISLATION THE ORGANIC ACT The most important legislative event in recent years was the enactment by the Congress of a new Organic Act for the Virgin Islands which became law upon its approval on June 22, 1936. For many years efforts had been made to secure an organic act to replace the act of March 3, 1917, which established what was known as the temporary government of the Virgin Islands. That act was hastily drawn and left many legal obscurities. The new act establishes a form of government on familiar Ameri- can lines, while retaining as much of the existing political arrange- ments as are compatible with American principles. The respective powers of the executive, legislative, and the judiciary departments are clearly defined, thus removing a previous source of friction. Wholly elected legislatures take the place of legislatures previously partly elected by the qualified voters and partly appointed by the Governor. The Governor's veto power is changed from an absolute veto to a suspensive veto which may be overruled by two-thirds vote of the legislatures. A legislative assembly is provided to enact legislation applicable to the Virgin Islands as a whole as distinguished from the local legislative powers of the municipal councils. Provision is made for the establishment of universal suffrage beginning in 1938 to replace the existing limited franchise based on income and property qualifications. In general, greater local autonomy and a more demo- cratic form of government are provided. The act has met with universal local approval. REAL PROPERTY TAX The enactment by the Congress of an act to establish an assessed valuation real property tax in the Virgin Islands, approved May 26, 1936, has removed a source of much dissatisfaction. Archaic and inequitable tax laws are replaced by a new tax, uniform in its appli- cation, equitable in its effects, and reasonable in its rate. By the same act the properties taken over by the Virgin Islands Co. or by the United States and used for business purposes have been made subject to local taxes, thus greatly improving the prospects for in- creased local revenues for the municipalities and removing another source of dissatisfaction. 4 REPORT OF THE GOVERNOR OF THE VIRGIN" ISLANDS COASTWISE LAWS By an amendment to section 21 of the Merchant Marine Act of 1920 approved April 16, 1936, a grave danger to the vitally im- portant bunkering business of the port of St. Thomas was mitigated. Under this amendment, the Virgin Islands are exempted from the application of the coastwise shipping laws until the President finds that there are adequate American shipping facilities available and by executive proclamation makes the law applicable to the Virgin Islands. By the enactment of this constructive legislation, the Congress has done much to assist the Virgin Islands and to make possible their improvement politically and economically. FISCAL The revenues of the municipality of St. Thomas and St. John dur- ing the fiscal year 1935-36 exceeded by 9.9T percent the revenues of the preceding fiscal year, while the revenues of the municipality of St. Croix were 6 percent less than in the previous fiscal year, due to the operations of the Virgin Islands Co. Total revenues REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Customs dues 6 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Bunker coal and fuel-oil imports REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 7 PUBLIC WORKS ADMINISTRATION PROJECTS New allotments to the Virgin Islands from Public Works funds totaled $1,072,264. Of this amount $1,000,000 was appropriated for continuation of rehabilitation of the sugar and rum industries in St. Croix, and the balance for Federal repair and reconstruction projects, including $48,100' for reconstruction of the Government house in St. Croix, the third floor of which was destroyed by fire. Allotments for non-Federal public-works projects were made as follows : Street and water supply, St. Thomas $20,000 Drains and sewers, St. Thomas 50, 000 Drains and water supply, St. Croix 41, 939 Total 111^939 The first grant represented 45 percent of the total estimated cost of the project, the remaining 55 percent having been appropriated by the municipality of St. Thomas and St. John. The other two grants were on the basis of 100 percent. THE VIRGIN ISLANDS CO. OBJECTIVES The outstanding activity in the Virgin Islands under the National Recovery program is the Virgin Islands Co., a Govemment-owned corporation, established in 1934 for the purpose of relieving perma- nently the widespread and chronic unemployment of a stranded com- munity without capital resources through the industrial development of the islands in general and through the rehabilitation of agricul- ture and of the sugar and rum industries of St. Croix in particular. The National Industrial Recovery funds, expended for the develop- ment of the Virgin Islands Co., are an investment in the major natural resources of the island of St. Croix, replacing Danish capital which withdrew from the sugar industry of St. Croix in 1930 leaving the island of St. Croix in a desperate economic situation. This investment of Federal funds was made only after years of unsuccessful efforts to interest private American capital in the re- habilitation of the sugar industry of St. Croix. While furnishing relief employment to the great majority of un- employed workers of the island, the company has accumulated large inventories of growing sugarcane and a large supply of rum of the finest quality. It has rehabilitated fields and factories. It is pro- viding adequate and comfortable housing for its laborers. It has increased labor wages by 50 percent since its inception. 8 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS It is confidently expected that when the Virgin Islands Co. markets its products it will be able to continue its operations with profit and without drain on the United States Treasury. Further, its operations will, in a relatively short time, make the island of St. Croix eco- nomically and fiscally self-supporting for the first time since it has come under the sovereignty of the United States. Also, congressional action Avill be sought to permit the use of the profits of the company to carry the costs of a social security program for the Virgin Islands (which are excluded from the benefits of the National Social Security Act) to pay profit-sharing bonuses to workers employed by the com- pany and to the 1,500 large and small private growers of sugarcane who sell their cane to the company for grinding in its mills. THE YEAR'S OPERATIONS Notable forward strides have been made during the past fiscal year. One thousand and twelve acres of land were recovered from bush, bringing the total of such recovered land to 2,938 acres. Seven hundred and eighty-nine additional acres were put into cultivation, bringing the total of new acreage put into cultivation by the Virgin Islands Co. to 1,604 acres. The island of St. Croix whose most fertile land had grown up in bush is again resuming its former claim to distinction as the Garden of the West Indies, due primarily to the activities of the Virgin Islands Co. An average employment of 1,116 persons has substantially met the problem of unemployment in St. Croix. A total of 239,033 gallons of rum were produced. An inventory of 465,966 gallons of rum is being aged preparatory to being marketed. An active program of housing construction for workers employed in the fields and factories of the company has been carried forward; 15 new village housing units accommodating 38 families and 8 single persons, and 2 village community houses have been completed. Twenty-four old village houses have been reconstructed to accommo- date 17 additional families. In various stages of completion are 28 additional units planned to accommodate 66 families and 32 single persons. The reconditioning of one sugar mill is nearly completed. A con- tract for the reconditioning of the Bethlehem sugar factory, the largest on the island, has recently been made. HOMESTEADING Next to the Virgin Islands Co., the most fundamental recovery project in the Virgin Islands is the homesteading program. In- REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 9 augurated in 1932, it is gradually transforming an unstable agri- cultural population of field laborers into a group of small holders. Under an easy amortization plan, these homesteaders are acquiring possession of plots of land averaging 6 acres each with comfortable small houses which have been constructed thereon. In many cases these small holders were renters of private land, paying from $5 to $12 per annum per acre which is in excess of the amount now paid annually as amortizing rental for homestead plots. Others were agricultural laborers earning from 30 to 60 cents a day when fortunate enough to secure employment. Since the summer of 1932, 3,639 acres of land have been purchased for homestead projects in the Virgin Islands. Of this area, 215 acres were transferred to the Navy Department or reserved for use of the United States Marine Corps for airports in St. Thomas and in St. Croix. Of the remaining 3,424 acres, 1,569 are contracted to 268 homesteaders, and approximately 1,165 acres, including 1,005 acres purchased during this year, are being cleared, surveyed, and put in readiness for allotment to approximately 105 additional homesteaders. The balance of the land includes roads, watershed areas, shore fronts, community reserves, and uncultivatable areas. There have been completed 64 new or reconstructed homestead houses of stone or concrete. Forty-seven additional houses are now under construction or in preparation for construction. The gross expenditures chargeable to the Virgin Islands homestead project from 1932 to 1936 are $270,015. Property valued at $13,280 was transferred for the use of the United States Marine Corps, leav- ing a net expenditure properly chargeable to homesteading of $256,- 735. Principal repayments have been made in the sum of $14,410. Interest and rental payments have been made in the sum of $8,937. Against the net chargeable cost of $242,325 (total chargeable cost of $256,735, less principal repayments of $14,410) there stands an inventory of $227,352. The operating loss of $14,973 covers 4 years' cost of administration and supervision, depreciation, and uncol- lectibles. This loss is offset by a credit of $8,937 for interest and rentals paid to the United States Treasury. The net loss of $6,036 may properly be said to be the total cost to the United States Govern- ment of establishing 268 homesteaders and assisting them for a period of 4 years. The success of the project is evidenced by the following factors : (1) Less than 15 percent of all homesteaders have abandoned their plots or have been evicted for failure to work or to pay installments. (2) The 268 homesteaders now on the land have paid 95 percent of all installments and interest due. 10 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS (3) Some homesteaders have paid installments for several years in advance. (4) Most of their land is now in cultivation. (5) All land, cultivation, and house payments this year have taken less than 35 percent of the homesteaders' gross income. (6) Their net land income has averaged about 50 percent more than they could have earned as laborers. Many homesteaders have had time and opportunity to earn out- side wages. The individual homesteaders have gained greatly by this program, the community has benefited, and the cost to the Federal Government has been negligible. TOURIST AND WINTER RESIDENT TRADE BLUEBEARD CASTLE HOTEL The program inaugurated by the Government in 1934 for the pro- motion of tourist and winter resident possibilities in St. Thomas by the construction and operation of the Bluebeard Castle Hotel has proved highly successful. This hotel has operated at capacity throughout the winter season, and over 100 prospective guests had to be turned away because of lack of space. Improvements and exten- sions now under construction will increase the capacity of this hotel by 60 percent. Privately operated hotels were filled to capacity during the winter season. The demand for accommodations, not only at hotels, but for residences and cottages, was greatly in excess of available space. The most imperative need is for the purchase of a tract of land, including one of the desirable beaches of the island, on which a series of low-cost cottages can be erected and completely furnished for occupancy by winter residents. Difficulties in connection with the purchase of suitable land have delayed the undertaking of this project by the Government. PRIVATE OPERATIONS A tourist development company has been organized and has pur- chased an 800-acre estate on the island of St. John with a view to con- structing cottages thereon. This company has inaugurated a daily boat service between St. Thomas and St. John to assist in the develop- ment of St. John. TREASURY RELIEF ART PROJECT Late in the fiscal year, the Treasury relief art project was extended to the Virgin Islands. Opportunity has been afforded five American artists to paint the almost unlimited number of attractive subjects KEPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 11 available in the Virgin Islands. The paintings will be exhibited in various galleries in the United States, and will undoubtedly be of great value in attracting visitors to the islands. SURVEY OF FEDERAL ARCHIVES Funds have been appropriated for an archives project with a view to making a survey of historical documents now scattered in the various Government offices, to preserve those of importance, and to prepare information of historical value and of general interest concerning the islands. URBAN HOUSING The Housing Division of the Federal Emergency Administration of Public Works is constructing three housing projects, one in each of the towns of the islands. In St. Thomas the program contemplates the construction of 30 buildings with 134 rooms, divided into 16 one-room, 47 two-room, and 8 three-room units. In Christiansted 15 buildings with 60 rooms divided into 30 two-room units are to be provided. In Frederiksted 20 buildings with a total of 80 rooms divided into 4 one-room, 32 two-room, and 4 three-room units are being constructed. EMERGENCY CONSERVATION WORK This program consists of two 100-man camps, one located in the island of St. Thomas and one in the island of St. Croix. Among the numerous and beneficial projects which have been carried on are the reconstruction of a scenic road in St. Thomas, the development of adequate recreation areas in and adjacent to the three towns of the islands, and reforestation, fire control, and soil-erosion control activities. ORGANIZATION OF TREASURY ACCOUNTING FACILITIES In November 1935, pursuant to Presidential Executive Order No. 7034, dated May 6, 1935, the Treasury Department of the United States undertook the work of purchasing, disbursing, and account- ing for projects under the Emergency Relief Appropriation Act of 1935. The Treasury Department's organization consists of an accountant-in-charge, a State procurement officer, a deputy State procurement officer, a disbursing clerk, and an assistant disbursing clerk. 12 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS NONFEDERAL PROJECTS The Federal Emergency Administration of Public Works has made available to the municipality of St. Thomas and St. John a grant of $20,000, representing 45 percent of the total cost of a project to repair, improve, and extend the salt-water flushing system in the city of St. Thomas and to widen and pave with bituminous macadam surfacing the streets within the city limits. To this allotment the municipality has added $24,444 from internal revenue tax receipts, the total estimated cost of the project being $44,444. Late in the fiscal year, 100 percent grants of Federal funds were allocated to the municipality of St. Thomas and St. John in amount of $50,000 for construction of surface drains and sewage-disposal sys- tem improvements, and to the municipality of St. Croix in amount of $41,939 for construction of water supply and surface drain im- provements. The St. Thomas project will consist of the improve- ment and enlargement of the present salt-water flushing and fire- protection systems. In St. Croix surface drains will be reconstructed and a salt-water service for fire protection and flushing will be installed. ROAD PROGRAM To provide scenic roadways which will add to the attractiveness of the islands to tourists and winter residents, to construct and re- construct economically important highways in a way to reduce fu- ture maintenance costs, and to increase employment, an appropriation of $192,000 was made available from Works Progress Administra- tion funds to improve, rebuild, and construct roads in the Virgin Islands. In the island of St. Thomas the project consists of rebuilding, re- grading, and paving with asphaltic macadam 4 miles of two-lane paved highway, and constructing 15 miles of new dirt road along the north mountain side. Four miles of dirt country roads will also be regraded, surfaced, and drained. In St. John the work consists of clearing of vegetation, construc- tion of culverts, opening of drains, and grading extended sections of trails which are the only roadways in that island. In the island of St. Croix, the centerline highway between the towns of Christiansted and Frederiksted is being improved for prac- tically its entire length of 15 miles by resurfacing with limestone macadam on the old foundation and then surface treating the entire distance with an asphaltic oil. This program will provide employment for an average of 350 persons through June 30, 1937. REPOET OF THE GOVEENOE OF THE VIEGIN ISLANDS 13 HEALTH AND SANITATION INFANT MORTALITY There has been a significant rise in infant mortality, due largely to intestinal complaints. The infant mortality rate of 170.5 per thousand children born alive during the calendar year 1935 is the highest on record since 1928 when the rate was 213.8. Corrective sanitation measures were instituted promptly, and it is encouraging to note that during the period January to June 1936 the tentative infant mortality rate was reduced to 96.4 per thousand. DEATH RATE The death rate for the calendar year 1935 of 22.4 per thousand population is the highest on record since 1928 when the rate was 25.1. This increase is attributed to the high infant mortality which in- fluenced the general mortality rate. INFANTILE PARALYSIS Two cases of infantile paralysis were reported in the island of St. Thomas. While it was not possible to establish the source of these eases, prompt precautionary measures were instituted, and all sus- picious persons were isolated. MALARIA Malaria continues to be under, complete control. In St. Croix 18 cases were reported, all infected off the island. Two cases were re- ported from St. John and none in St. Thomas. TYPHOID FEVER Eight cases of typhoid fever were reported in St. Croix, the first outbreak since 1933. All school children were again vaccinated, as well as hundreds of adults. The exact source of infection and its method of transmission have not been discovered, although thorough investigations were conducted of milk and water sources and fly breeding. GENERAL Outside the sporadic occurrence of these diseases, there have beer- no epidemics in the Virgin Islands during the year. 14 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS SANITATION The control of mosquito breeding places presented a problem when copious rains fell after a prolonged drought. Improvement of sani- tary conditions is expected upon completion of water supply, drainage, and sewage-disposal projects now under construction. INVESTIGATIONS Professor Francis W. O'Connor of the Columbia University Col- lege of Physicians and Surgeons, and Presbyterian Hospital, New York City, an outstanding authority on filariasis, spent a total of 6 months in the island of St. Croix undertaking special research work in this disease. He investigated the development of the microfilaria in wild and laboratory-reared mosquitoes and made observations on the transmission of the disease under natural conditions. Dr. Donald Augustine, helminthologist, of the School of Public Health, Harvard Medical School, Boston, accompanied Professor O'Connor on one of his visits, and undertook special helminthological work on a new filaria. Dr. John McMullen, medical director, United States Public Health Service, trachoma expert, investigated the incidence of trachoma in the Virgin Islands. He held several clinics, operated on several cases, and demonstrated methods of therapy. His conclusion is that trachoma does not exist in St. Thomas, but that it does exist in St. Croix. EDUCATION A comprehensive study of present educational facilities and achievement has been undertaken, and recommendations have been formulated for a reorganization of the educational system to provide educational training appropriate to the abilities and needs of the children. This study has included the gathering and preparation of detailed reports and summaries of equipment; individual case his- tories of training and experience of teachers; preparation of age- grade tables and summaries; tabulations of results of standard mental tests and achievement tests in all schools. Specific recom- mendations for reorganization have been embodied in a draft of a new school law which has been submitted to the municipal councils for action. There was an enrollment of 3,244 in the public schools as com- pared to 3,460 in the previous year. A program of adult education limited to courses in practical arts and occupations was conducted for a term of 20 weeks with the aid of funds granted by the Federal Emergency Relief Administration. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 15 PUBLIC WELFARE The department of public welfare continued its normal welfare activities including the administration of regular government aid in the form of pensions. The emergency work of this department under the national recov- ery program consisted of relief investigations, work assignments, di- rect relief, and work projects conducted by the department. Mat- tress making, sewing, and pillow-making projects were conducted successfully, affording relief employment to a number of women and providing for the distribution of the finished products to needy persons. AGRICULTURAL EXPERIMENT STATION AND VOCATIONAL SCHOOL ST. CROIX The agricultural experiment station in St. Croix has contributed administratively to homesteading and allied projects and has under- taken projects which have had direct relationship with the general agricultural program. Many current problems of plant and animal diseases, control of insect pests, improvement in soil cultivation, and conservation of moisture have been studied. Sugarcane seedling tests have been continued together with comparative propagation and production tests of miscellaneous sugarcane varieties. Experiments have been conducted with field crops of certain legumes to determine their value for green manure crops. These legumes have made good growth, but the results cannot be tabulated until they are matured. The eradication of the corn earworm, which has been a serious pest and in many instances has practically destroyed entire crops of field corn which serves as an important food crop for livestock, has been investigated in a 1-acre experiment. Best results were obtained by hand applications of poison dust consisting of a formula of hydrated lime, 60 pounds, and arsenate of lead, 40 pounds. New varieties of sweetpotatoes were tested and developed. Two strains of sea-island cotton and one lot of Egyptian (tree) cotton were planted in small plots in order that observations could be made as to the presence or absence of the pink bollworm which has been the most destructive cotton pest in the island. Routine examination of green bolls showed an average infestation of 17 percent. A small citrus grove was planted on a selected area. 16 KEPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS VOCATIONAL SCHOOL The curriculum of the vocational school was revised to provide for a course of study in applied agriculture. The students' average week consisted of 3 days classroom work, 2y2 days field work or work projects, five 2-hour evening periods of supervised study and three classes of band practice and supervised recreation. To improve student field activities and obtain maximum efficiency in laboratory and field studies, approximately 15 acres of agricultural station land was set aside as a school farm. All of the work on this farm has been done by students under supervision of the station and school staff. ST. THOMAS A major achievement in St. Thomas was the introduction, pro- pagation, and distribution of the bull tyre palm. The leaves of this palm are used in the manufacture of native hats, mats, baskets, and numerous other handcraft articles. In the past the entire supply of this fiber has been imported. A thorough study was made of this plant industry and a supply of seeds obtained. Approximately 8,000 young trees have been propagated for distribution. Fiber for the local market will not be produced before 4 or 5 years. It is planned to continue the propagation and distribution of the bull tyre palm to insure an adequate supply for local needs and, if pos- sible, a surplus for export. To provide for future inarching and grafting work, grafted mangoes of some of the best varieties were imported from Florida and set out on station grounds. An experiment is also being con- ducted with imported budded avocado trees in an effort to produce sufficient quantities for local demand as well as export. Experi- ments were also conducted in citrus planting to determine suitability of varieties to local conditions. THE VIRGIN ISLANDS COOPERATIVES The Virgin Islands Cooperatives have continued to progress stead- ily. This organization has furnished work to a considerable num- ber of persons and its operations have been profitable, enabling the workers to receive a 3-percent bonus on the amount of their earn- ings for the year. Classes were conducted to instruct the younger people in the weaving of baskets, plaiting of palm, and embroidering of linen. During the year 637 persons worked on production of merchandise for sale, earning $13,540. The mail-order business is being actively pushed. The tourist trade showed an increase of 46 percent. REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 17 PUBLIC WORKS DEPARTMENT Many important repair and reconstruction projects were under- taken and completed by the public works departments of the municipal governments with funds made available by the Federal Emergency Relief Administration and the Federal Emergency Administration of Public Works. In St. Thomas a 3,000-gallon capacity cistern was constructed at estate Lerkenlund for conserving the flow and storing spring water for use of the inhabitants in that vicinity. In St. Croix the restoration of Government House which was partly destroyed by fire was begun. The public works department has continued its regular maintenance work including upkeep of all government buildings, repairs of streets and roads, maintenance of public reservoirs, street cleaning and garbage collection, and maintenance of public parks and cemeteries. NORMAL ACTIVITIES In the public libraries, a steady increase in circulation and at- tendance is reported. The police and prison departments, the fire departments, the harbor department, and the courts have functioned normally during the year. ST. JOHN Twelve miles of roadway have been widened, graded, and drained from funds allotted under the Works Progress Administration pro- gram. A mosquito abatement campaign was inaugurated in conjunc- tion with the road project. Eight hundred and fourteen consultations and treatments were given by the commissioner, who is a medical doctor, to 586 patients. A radiotelephone has been installed to insure prompt communication with St. Thomas. A tourist development company has purchased an 800-acre estate in this island with a view to constructing cottages for the developing of the winter resident possibilities of that island. MARINE CORPS AIR BASE On September 23, 1935, a Marine Corps air base was established in St. Thomas with 6 land planes, 1 amphibian, 12 officers, and 67 men. This force has now been increased to 9 land planes, 2 amphi- bians, 16 officers, and 102 men. A Public Works Administration contract has been awarded by the Navy for the construction of 18 REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS aviation facilities at the Lindbergh Bay area which was transferred from the jurisdiction of the Interior Department to that of the Navy Department. The establishment of this Navy unit in St. Thomas has been of great benefit to the community from an economic stand- point. Through the courtesy of the Navy Department and with the splendid cooperation of the personnel of the marine air base, the officials of the local administration have been provided with rapid means of interisland communication. INSPECTION OF WATER SUPPLY Mr. A. F. Johnson, assistant engineer of the United States Bureau of Reclamation, was assigned to the Virgin Islands late in the fiscal year to investigate and report on the water supply of St. Thomas. His preliminary report indicates that the full use of existing roof catchment areas and the provision of adequate cistern facilities to store water gathered on roofs must be the first consideration in ob- taining a water supply for St. Thomas. For that portion of the population having insufficient roof area, a supplementary supply from concrete catchment areas with reservoirs and distribution sys- tems should be provided as an extension of the present system. HARBOR IMPROVEMENTS The River and Harbor Act of August 30, 1935, authorized a pre- liminary examination and survey of St. Thomas Harbor to consider the advisability of improving its facilities. A public hearing was held in St. Thomas by representatives of the Corps of Engineers, United States Army. Recommendations were submitted for extension of the existing anchorage and maneuvering area; for removal of Scorpion Rock; for construction of a breakwater and bulkhead and for establishment of a graving dock. A preliminary engineering survey of these recommendations has been authorized and is being conducted. CONCLUSION Politically and economically, the Virgin Islands are making steady forward strides. The outstanding political development of the year was the enactment of the new Organic Act, which provides an auton- omous and democratic form of government. Economically, the operation of the Virgin Islands Co. and the success of the home- steading program are the outstanding features. The National Recovery activities have been of material benefit to the Virgin Islands. Continued active development of the sugar REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 19 and rum industries of St. Croix, promotion of tourist and winter resident trade, and improvement of the harbor facilities of the port of St. Thomas will result in making the islands self-supporting. This is the objective of the rehabilitation program, which has been prosecuted during the past 3 years. Continued appropriation of funds for these fundamental improvements is strongly recommended. Respectfully, Lawrence W. Cramer, Governor. o