* UWIASS/AMHERST * !!!l III! nil! Hill nil! !!ll ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ment of the Government-owned Bluebeard Castle Hotel to which the new lessee is already legally committed. All hotels and guest houses were filled to capacity throughout the winter season and well on toward summer. Increasing awareness of the mild summer climate of the Virgin Islands is resulting in improved prospects for summer tourism. The amount of wholesome publicity which the Virgin Islands are receiving in mainland publications as an attractive all-year vacation place has contributed greatly to the influx of visitors. A much larger season is anticipated during 1949-50. Assurances have been obtained that tourist ships which bypassed the Virgin Islands last winter will call during the approaching season. In St. Croix, the building or re- modeling of a constantly increasing number of structures for private winter residences is a notable development. At the end of the year Congress recharted the Virgin Islands Com- pany as a public development corporation, thus providing an instru- mentality of great potential utility for planned agricultural development, as well as for the financing of small industry and enter- prises related to tourism.. Appropriations for 1950, part of an author- ized capitalization of about $9,000,000, will make possible the prompt beginning of a program of soil and water conservation, crop diversification and improved sugar cultivation and extraction. How- ever, Congress at the same time terminated the manufacture and sale of rum by this Government corporation, thereby cutting off a principal source of revenue for financing other aspects of a development pro- gram. It is very unlikely that the new corporation can operate with- out financial loss in view of the termination of its rum business. Although the Virgin Islands still have practically no industry, local legislation enacted in 1949 is designed both to encourage the establishment of new industries and to promote tourism. This legis- lation provides for designated tax exemptions and industrial sub- sidies for a period of 8 years to new industries which qualify with a minimum capital investment of $10,000, and to hotels and tourist cot- tage projects with a minimum investment of $100,000. At the same time, the newly chartered Virgin Islands Corporation is legally em- powered to make industrial loans, although Congress has not yet pro- vided capital for this purpose. These new incentives and opportunities for private enterprise should result in small scale but significant industrialization in 1950 and subsequent years. Throughout the year employment levels have been higher than at any time since the termination of hostilities. A large increase in private construction and the continuation of the program of essential public works under Public Law 510, Seventy-Eighth Congress, have ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 3 been major contributing factors. Expanding tourism has also pro- vided many new jobs. The demand for local needlework and other handcraft is exceeding current production. Only the continuing pros- tration of the rum industry and the decline of ships and shipping from countries unable to engage in dollar commerce have retarded the favorable trend in employment. In summary, the development of tourism is now and in prospect the largest factor in the improvement of the local economy. The ex- pansion and diversification of agriculture and the inducement of new industry continue to be important as additional aspects of a balanced economy. In all three directions there has been significant advance- ment this year. ORGANIZATION OF LOCAL GOVERNMENT Too many local governmental activities in the Virgin Islands pre- sent duplicating organizations for the two municipalities, the muni- cipality of St. Croix and the municipality of St. Thomas and St. John, rather than integration on an insular basis. Such essential public services as education, police protection, and public works are organized by municipalities rather than on a territorial basis. In contrast, the establishment of a single department of social welfare for the entire Virgin Islands a few years ago stands today as an entirely successful example of the type of integration that is needed. However, local legislative authorities have been very reluctant to take additional steps toward the unification of essential public serv- ices throughout the territory. Yet it seems clear that the limited area and small population of the Virgin Islands make the only ap- proach to orderly, progressive, and economical administration of pub- lic services through unification and integration. A comprehensive re- port on the organization of the local government by the nationally recognized and respected Public Administration Service of Chicago, made in 1947, points directly toward such action. The implemen- tation of that report is a continuing concern of the executive. In addition, there is need for precise definition and some con- siderable reallocation of functions of local departments, bureaus, and agencies. This need has become acute as a result of legislation over a considerable period assigning important administrative functions to boards and commissions whose membership is made up of citizens who volunteer occasional part-time service. However, the legis- lature has so far been unwilling to authorize the Governor to make any comprehensive reorganization of the executive branch. 4 ^ ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS PUBLIC FINANCE AND TAXATION Total budgeted expenditures of the Government of the Virgin Islands amounted to $1,708,580 as against $1,421,946 for the previous fiscal year. To meet these expenditures a total of $1,133,002 was raised from local taxation, and $520,200 contributed by Congress, leaving a deficit of approximately $53,000. This deficit resulted from the fact that actual collections of trade taxes, customs dues, and harbor fees were substantially less than the estimated yield from these sources. Reflected in this loss of revenue is the decline of commerce with foreign areas because of dollar shortages. During the fiscal year a total of $800,996 was raised through local taxation in the municipality of St. Thomas and St. John, as compared with $960,969 in 1948. The sum of $194,400 of the Federal deficit contribution was allocated to this municipality. Budgeted expendi- tures totaled $1,051,960. In the municipality of St. Croix a total of $328,007 was raised locally, as compared with $267,474 for the previous year. This was the second highest amount of revenue collected in one fiscal year in the recent history of St. Croix. The allocation of $325,800 of the Federal deficit contribution enabled the municipality to meet its total budgeted expenditures of $656,620. The local government has persisted in its efforts to raise more revenues through local taxation without imposing undue hardship. In this direction, in the municipality of St. Thomas and St. John, the tax on gasoline has been increased from 4 to 5 cents per gallon; an amusement and entertainment tax of 5 percent of the gross receipts has been imposed, and the pilotage tariff revised upward. These meas- ures become effective on July 1, 1949. On the other hand, a proposal for a uniform modern statute of business taxation for the entire Virgin Islands was rejected by the legislature. The real property tax in the islands, which at present is at the rate of 1^ percent of fair market valuation, could be increased appreciably without damage to the economy of the islands, but legislative approval has so far been withheld. The establishment of a modern system of postaudit of governmental accounts will be instituted during the next fiscal year by the newly created office of public auditor for the Virgin Islands. In addition the establishment of this new office is being attended by a restudy of procedures and practices in the local administration of finance with a view to such reorganization as may seem desirable. ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 5 PERSONNEL ADMINSTRATION Under the Merit System Law of the Virgin Islands a classification plan for personnel of the local government became effective July 1, 1948. A pay plan, adopted during this year, will become effective July 1, 1949. Prior to this date salaries were neither fixed originally nor increased according to any defined pattern. The pay of all positions in the classified service is now, for the first time, determined on an objective and schematic basis. An integrated insular civil service system, including classification of positions, ex- amination and qualification of personnel, and determination of salaries by an orderly pay plan, is now in full operation under the supervision and control of the division of personnel. This merit system is al- ready contributing to increased morale and efficiency in the public service. At the close of the fiscal year there were 1,022 classified and 1,05S unclassified employees—the latter group including casual and un- skilled labor—in the insular government service. A total of 626 persons sat for position examinations during the year, with 457 pass- ing. From this group the division of personnel established 72 posi- tion eligible lists and 15 promotion lists, from which employees for the government service were recruited. The director of personnel attended the annual conference of the Civil Service Assembly of the United States and Canada, and also pur- sued courses in personnel administration at the University of Chicago. The deputy director of personnel has been awarded a scholarship b}^ the Foresight Foundation, Inc., of which Mrs. Charles W. Taussig is president, for 1 year of study in public administration. There is every reason to anticipate that personnel administration in the local govern- ment will go forward on a high level of professional competence. AGRICULTURE Agricultural extension work was greatly handicapped this year by an unusual turnover of key personnel. However, the agricultural station in St. Croix rendered customary assistance to farmers in the form of technical advice and distribution of plants and seedlings. The local agricultural station supplied technical advice to vegetable growers who produced and shipped about 300,000 pounds of fresh vegetables, principally tomatoes, to the mainland for sale in the winter market. Benefiting by the experience of this first year of operation, these farmers are planning to continue and expand their enterprise next year, 863236—50 2 6 ^ ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Experiments carried on by the agricultural station revealed that the jojoba seed germinate very well in the plant sheds. Field experiments will be carried out shortly. The oil from this plant is used in the making of paint in the United States. Its profitable cultivation would be a valuable addition to the commercial plants of St. Croix. About 900,000 vegetable slips were propagated and distributed by the agricultural station in St. Croix, in comparison with 103,100 dis- tributed during the previous year. A total of 4,638 assorted orna- mentals were also distributed. Inspections of fruits, vegetables and plants imported into St. Croix accounted for a portion of the activities of the agricultural personnel. In St. Thomas, the production and marketing administration made subsidy payments for crop and pasture land improvement to about thirty farmers. An appropriation of $10,000 was made from local funds for the purchase of a bulldozer which will be operated under the supervision of the Soil Conservation Service for the purpose of build- ing terraces, check dams and roads for farmers. The agricultural sta- tion supplied farmers with water, seeds, slips, insecticides, as well as baby chicks, young pigs, and other livestock through the special re- volving fund for agricultural development. In addition to greatly assisting the farmers, these services resulted in a return of nearly $4,000 to the revolving fund. During the year over 1,000 inspections were made of imported fruit and vegetables. A basic reorganization of the program of governmental assistance to agriculture is in progress. For many years the Department of the Interior has administered this program. At the same time, the Virgin Islands have not received the benefit of extension, research, and other normal agricultural services of the National Government as admin- istered through its Department of Agriculture for mainland communi- ties. Upon recommendation of the Department of Interior, a field study of this situation has been conducted in the Virgin Islands by the Department of Agriculture. As a result of this study the two Depart- ments have recommended legislation to transfer all agi-icultural func- tions in these islands to the Department of Agriculture and to expand present limited activities so that the scope of the program will be comparable to that normally carried on by the Department of Agricul- ture on the mainland. COMMERCE AND SHIPPING During the calendar year 1948 goods valued at $9,465,562 were im- ported into the Virgin Islands as compared with $9,031,743 for 104T. ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS > 7 At the same time the vakie of exports decreased from $2,183,744 for 1947 to $1,698,037 for 1948. Some 386,915 proof gallons of alcoholic beverages were exported from St. Thomas as compared with 120,730 last year. The Govern- ment-owned Virgin Islands Company produced 4,579 tons of sugar, a very slight increase over last year's yield. Over 1,200 head of live- stock were exported from the Virgin Islands during the year, of which 1,000 were cattle. Approximately 75,000 pounds of dried hides and skins were also exported. Shipments were made chiefly from the island of St. Croix to the island of Puerto Eico. Lack of United States dollars in foreign areas continues adversely to affect shipping in the islands. However, the transshipment of bauxite at St. Thomas remained a substantial commercial activity. Through this activity alone, 29 ships called at St. Thomas, thus ac- counting for about one-tenth of the commercial shipping for the year. A total of 298 commercial ships with a gross tonnage of 1,603,374 entered the port of St. Thomas during the fiscal year, as compared with 417 ships and a gross tonnage of 2,435,760 in 1948. The Alcoa Line provided most of the space for transporting cargo to and from the islands. Three luxury liners of the Delta Line called regularly on schedule at St. Thomas with passengers. With the world trend toward the use of larger ships for commercial purposes, it is imperative that the harbor of St. Thomas be improved in order to maintain its present position as a Caribbean bunkering and refueling station. It is hoped that funds will be made available early in the next fiscal year for the much-needed and long-awaited project of dredging the harbor, as authorized by Congress 12 j^ears ago. EDUCATION Vocational courses were added to the veterans' education program in the Virgin Islands at the beginning of the school year. In St. Thomas the courses included automobile mechanics, electricity, wood- working, plumbing and pipefitting. In St. Croix courses were offered in masonry, carpentry, mechanical drawing, mathematics and other related sciences. These vocational courses proved to be so attractive and beneficial that nearly half of the veterans who had registered for academic courses in the previous year switched to the vocational divi- sion. Enrollment in the veterans' education program remained at approximately 300, the same as last year. In the municipality of St. Thomas and St. John a total of $1,207 was expended in providing transportation for ten veterans to or from continental United States 8 -f ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS for the purpose of enrolling in educational institutions or returning to the island upon the completion of educational training. A total of $431,570 was expended for public education in the Virgin Islands. Of this amount over $100,000 were made available by the Federal Government, chiefly for the purpose of supporting the vet- erans' education program. Enrollment in the public schools in the Virgin Islands totaled 4,401 with 2,752 students enrolled in the public schools in St. Thomas and St. John and 1,649 in the public schools of St. Croix. The average cost of education per pupil in the public schools was $82.97. This included the daily school lunch service. The average salary per teacher in St. Thomas was $105.79; in St. Croix, $81.24. It is expected that these averages will be increased considerably under the new pay plan to become effective during the next fiscal year. The lack of adequate school facilities and equipment makes the accommodation of an increasing enrollment a greater prob- lem every year. Enrollment in the public schools has increased over 30 percent in the last 10 years, but no additional accommodations have been provided. Kindergartens have become an integral part of the public education sj'stem. They are an outgrowth of the nursery school program orig- inally inaugurated as a work-relief program by the WPA under the sponsorship of the local government. During the school year, 8 public kindergartens with a total enrollment of 249 were operated in St. Thomas under the full-time guidance and direction of a specially trained supervisor. The value of this preschool training is grad- ually being appreciated through the progress made by beginners in tlie first grade who have been disciplined in the kindergartens. The school lunch program has developed into an accepted service of the public education system. With 22 schools being served in St. Thomas and St. John, including the Charlotte Amalie High School, an average of 2,290 children participated daily. An aggregate of 409,973 lunches were served during the year at an average cost of 24 cents per meal. The over-all cash cost was $73,274.82, exclusive of contributions of food items from the United States Department of Agriculture. A well-balanced, high-caloried meal is served. In a community where malnutrition is one of the principal ailments among growing children, the school lunch program is a welcome boon. Some 16 students were assisted by loans during the year. Of this number, 13 received loans from the municipal scholarship fund and 3 from the Robert Morss Lovett fund. Last year, through the process of administrative reorganization^ the public librarj^ in St. Thomas was placed under the administrative jurisdiction of the department of education. The public library in ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS > 9 St. Thomas has developed during the years into an essential public service in the field of education. It has been evaluated among the best public libraries in the entire Caribbean area. Its book collec- tion includes 22,228 volumes. In all, 604 volumes were added during the year, and 315 discarded. There were 82 new adult and 439 new juvenile registrants. About 300 adults and 1,500 juveniles are now actively engaged in borrowing books from the public library. They represent approximately 16 percent of the total population of the island of St. Thomas. Many valuable items were added to the Virgin Islands collection, which is fast growing into an important local source of information on the islands' history and development. For the celebration of a century of freedom from human slavery last year, photostatic copies of historical documents were obtained from Denmark. An assistant superintendent was added to the staff of the Depart- ment of Education in St. Croix, and assigned to supervision of ele- mentary education and the school-lunch program. Courses in agriculture and electricity were added to the vocational program of the high school. The school-lunch program has been expanded considerably. Approximately 1,400 children are now participating daily. The sum of $3,056.46 was contributed by the children them- selves to the program. An abundance of fresh vegetables raised in the rural school gardens helped to provide a well-balanced and nutritious meal. Scholarship loans were approved for eight new students, while renewals were made for four who are already attending colleges in continental United States and Puerto Rico. The need for unification of the educational system in the Virgin Islands is becoming increasingly urgent. Eather than the present system of two separate and independent departments, it is considered that a single territorial department would better serve the educational objective of the Virgin Islands. The educational development of future citizens can be improved greatly through the establishment of uniform policies, curricula, courses of study, and a coordination of methods. HEALTH AND SANITATION A much-needed program of improved local nurse training was in- itiated during the year. Several nurses were sent for training to hospitals in the continental United States. Local public health serv- ices were expanded by the addition of a psychologist, a medical so- cial worker and a nutritionist to the public-hospital staff. A pedi- atrician has been added to the medical staff. The part-time services of a psychiatrist have also been secured. This expansion in services 10 -f ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS and ill nurse training was made possible chiefly through Federal grant-in-aid funds. A minor outbreak of chickenpox occurred during the year. How- ever, no deaths were reported. No case of diphtheria or scarlet fever occurred. All children are vaccinated against smallpox at the age of two. They are also immunized against diphtheria, whooping cough and tetanus. Innoculations for typhoid fever are provided periodically for the entire population between the ages of 2 and 60 years. The only case of typhoid fever which occurred in St. Thomas during the year was contracted elsewhere. Due to improvements in the treatment and control of leprosy, only one new case occurred in 1948. Cases are not being found among children, a definite indication of the decline of the disease. All active cases are hospitalized and the number of cases is declining steadily. The program of tuberculosis control continues. All open cases in the islands are hospitalized in St. Thomas. A mass X-ray survey was conducted in St. Thomas this year. It is planned to initiate a similar mass X-ray survey in St. Croix during the next year. Two important circumstances promise a considerable improvement in the manner of producing and handling local meat and meat pro- ducts in the near future. A modern sanitary code enacted by the local legislative assembly provides proper legal controls for the slaugh- tering of animals and the processing and retailing of meat in the local community. A modern abattoir has been completed in St. Thomas and will be placed in operation during the next fiscal year. In St. Croix a volunteer blood donors organization was created with about 40 volunteers. A volunteer nurses' aid group was also organ- ized to help in the care of hospital patients. The United States Pub- lic Health Service discontinued its local mosquito-control program for the elimination of filariasis, principally because of the striking reduc- tion in the infection rate wliich followed an experiment in the use of the new drug Hetrazan. However, the spraying program was con- tinued with local funds. While there was only a slight increase in hospital admissions this year, the number of operations performed increased about 60 per- cent over the previous year. Numerous clinics were held in all sec- tions of the island of St. Croix with the assistance of the public-health nursing division. Physical examinations of all school children in the Virgin Islands revealed that cases of defective teeth headed the list of physical defects. A research study into the incidence of caries in children was made by a team of dental experts. A fluoride program will be conducted next year. ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS > 11 The Government faces a demand for hosi)ital and public-health serv- ices which has increased about 40 percent since the war. The lack of adequate facilities creates a critical problem in both St. Thomas and St. Croix. POLICE AND PRISON ADMINISTRATION Members of the police force in St. Thomas and St. Croix received the benefit of instruction in a 3-month in-service police training school conducted by the directors of police with valuable assistance and co- operation from agents of the Federal Bureau of Investigation, in- structors from the insular police of Puerto Rico and other experts. The results of the training school were highly satisfactory. All mem- bers of the police force gained in technical, legal and professional knowledge requisite for the efficient performance of police duties. In the St. Thomas police department a traffic bureau was organ- ized and a "Safe driving and traffic education campaign" initiated. A total of 146 complaints of traffic violations were filed in the courts and conviction secured in 117 cases. There were 242 vehicular high- way accidents during the year as compared with 219 in 1948. A total of 75 persons were injured, but none killed. The local bureau of identification and investigation handled 90 cases as compared with 67 during the previous year. Of these cases, 79 resulted in arrests, and 11 were pending at the close of the fiscal year. In all, 969 criminal cases Avere filed in the courts, as compared with 1,033 in 1948. Con- victions resulted in 663 cases. A police athletic league, newly organ- ized under the supervision of the juvenile bureau, provided construc- tive recreation for the youth of the island throughout the year. With substantial contributions from public-spirited citizens residing in the islands and on the mainland, the police athletic league conducted a suc- cessful Christmas party for about 2,400 children on December 23. In addition to the other activities of the department, mental hygiene and psychiatric treatment for prisoners have been initiated. Only 22 cases of traffic violation were referred to the courts by the police department in St. Croix during the fiscal year 1949. Through traffic accidents, 11 persons were injured and 1 killed. In all of the traffic complaints convictions were secured. Disturbance of the peace continued to be the chief offense in St. Croix. Of 130 arrests made, 66 were for disturbance of the peace. There were 1,695 calls made for police assistance, which were responded to within an average of 15 minutes in each case. There were 17 long-term prisoners at Rich- mond at the close of the fiscal year. 12 -f ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Legislation was again recommended by the administration to in- tegrate all police and fire protection activities in the Virgin Islands through the establishment of a territorial department of the public safety. However, this proposal was rejected by the local legislative assembly. SOCIAL WELFARE \] Concerted efforts were made during the year to have additional benefits of the Social Security Act extended to the Virgin Islands. These benefits would include aid to the aged and blind and to dependent children. Presently only title V of the act is applicable to the Virgin Islands, and grants derived from this source have been used for the establishment of a child welfare division in the department of social Avelfare. It is hoped that the measure to extend to the Virgin Islands the additional benefits of the act, which is now being considered by the United States Congress, will receive favorable action. A training program for Virgin Islanders in professional social work is now under way, sponsored by the child welfare division. A total of $46,500 was distributed for public assistance to needy persons in St. Thomas during the fiscal year, as compared with $38,881 in 1948. This increase in expenditures for public assistance was made possible through Federal funds made available in the deficit appropriation for the local government. After careful screening, about 40 needy persons were added to the list for public assistance, bringing the total to about 600. However, the average monthly cash grant per case remained at $6.67. Through a special municipal ap- propriation, Christmas cash grants of $4 each were distributed to 600 needy persons and gifts of $3 each were sent to the 80 Virgin Islands patients at St. Elizabeths Hospital, Washington, D. C. As employment increased on private and public projects, the num- ber of persons actively seeking work relief through the Social Wel- fare Department dwindled, until only 200 were registered at the close of the fiscal year. A total of 836 work relief assignments were made during the year for which over $10,000 of municipal funds were expended. There is no unemployment insurance in the Virgin Islands. The Queen Louise Home for the Aged celebrated its fifth anni- versary in January 1949. With an average of 18 patients, the Home functioned smoothly throughout the year. The Corneiro Home, which was bequeathed to the municipality under a trusteeship, was opened during the year and 23 indigent persons were housed. Under the child welfare division, a girls home was opened in December 1948. Very limited in its capacity, this Home provides shelter for ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 13 only six girls. Manual training and elementary school courses were continued at the Mandahl Juvenile School for Boys. Boys of high school grades were permitted to attend the Charlotte Amalie High School. The enrollment remained at approximately 44 throughout the year, 13 new boys enrolled and 5 released. The public assistance program in St. Croix was considerably ex- panded through the aid of Federal funds made available from the United States contribution to the local government. While in 1948 a total of 469 needy received monthly cash grants averaging $2.50 each, in 1949 about 460 cases were handled and received average monthly assistance in the amount of $6.70. Although the monthly cash grant of $6.70 is grossly inadequate, it is a great deal more than the average monthly grant of $1.73 received 10 years ago. There was a marked increase in the number of children under the care and supervision of the child welfare division in St. Croix. The number increased from 206 in 1948 to 449 in 1949. Of this amount 397 were at home with their jparents, 44 in foster homes, and 8 in public institutions. A law recently enacted by the local legislative assembly providing for reciprocal measures against legally responsible relatives who re- move from the jurisdiction leaving dependents behind in the Virgin Islands should help considerably in providing support for dependents of persons who have moved to the continental United States. A new law conferring upon illegitimate children the right of inheritance in their fathers' estates should also assist in protecting such children from becoming public charges. A modern program of social welfare under suitable legislation is gradually developing in the Virgin Islands. If all the benefits of the Social Security Act are extended to the islands, progress will be accelerated. PUBLIC UTILITIES Throughout the island of St. Thomas conversion of the electrical system from direct current to alternating current is substantially com- pleted. However, funds are urgently needed to extend the system to cover several rural districts, including potential tourist hotel sites. At the present time alternating current is provided for the use of the community by the San Jose project, a chemical warfare unit of the United States Army located at the former naval submarine base. Power is supplied to the St. Thomas Power Authority on a formal contract at production cost for distribution and sale to consumers. Studies and observations made by electrical engineers indicate that in the near future the capacity of the military power plant will be 14 -f ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS insuiRcient to supply both the San Jose project and the local com- munity with adequate current. At the close of the fiscal year efforts were being made to obtain transfer of military surplus power units to St. Thomas, either to supplement the present power plant or to be set up as a separate source of power for the use of the local community. In St. Croix the conversion from direct current to alternating current is substantially comjjleted in Frederiksted and more than half completed in Christiansted. The telephone systems in tlie Virgin Islands are grossly inadequate to satisfy the ever-increasing demands of the community for com- munication service. They are antiquated and of small capacity. Federal funds have been made available under the 10-million-dollar Virgin Islands public works program for the installation of modern telephone systems in St. Thomas and St. Croix, and to provide lim- ited communication service for St. John. Studies of the telephone problem were made during the year, under the supervision of the Federal Works Agency. The installation of modern telephone sys- tems should begin during the next fiscal year. DEVELOPMENT PROGRAMS The St. Thomas Development Authority, which was created to manage and operate the deactivated United States Navy property located in St. Thomas, has been successful in leasing several of the buildings for hotel and other purposes. The former Navy low-cost housing, the Lindbergh Beach area, and recreation hall at Bourne Field continue to be operated by the development authority as public housing and recreational facilities. A new 4,200-foot air strip is nearing completion at the airport. This air strip will greatly facili- tate the daily airplane traffic of the island and at the same time serve as a catchment area for potable water. A nine-hole golf course is under construction by the development authority in the Bourne Field area as an additional recreational facility, both for local residents and visitors. All efforts are being made to develop the properties and facilities of the area on a self-sustaining basis for commercial and recreational purposes. The municipality of St. Croix acquired by quitclaim deed from the United States the Army air base known as Benedict Field. This area was renamed the Alexander Hamilton Field in honor of the great American patriot and statesman who lived in St. Croix as a boy, and is operated as a municipal airport. New terminal facilities were pro- vided and a new airplane ramp constructed. About 1,500 acres of ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS -f 15 the area not needed for present operations were leased to private persons, while surplus buildings were remodeled and rented as living quarters for airport personnel. Office space was also provided for the activities of the Civil Aeronautics Administration and the United States Weather Bureau. The Virgin Islands became an active member of the Caribbean tourist interim committee created under the auspices of the Caribbean commission. A representative of the Virgin Islands will attend the organization meeting of this committee scheduled to convene in Trini- dad, British West Indies, in August. This Caribbean tourist interim committee was established to serve as a central organization to co- ordinate all tourist activities in the Caribbean area. A unique picture book of the Virgin Islands was published as a project of the St. Thomas tourist development board. This book, when widely distributed, should add considerably to the favorable publicity of the islands. During the next fiscal year the activities of the local tourist board should be accelerated with the authorized appointment of a full-time director. LEGISLATION Several bills of importance to the Virgin Islands were considered by the Eighty-first Congress early in its first session. A bill to extend to the islands the benefits of titles I, IV, and X of the Social Security Act has been favorably reported by the House Ways and Means Com- mittee. At the close of the fiscal year a bill to recharter the Virgin Islands Company was enacted and a capitalization of $9,000,000 au- thorized. An appropriation for harbor improvements in St. Thomas was still to be acted upon by conferees of both Houses at the close of the fiscal year. A bill to authorize the Virgin Islands to be repre- sented in Congress by a nonvoting resident commissioner received more consideration in the Eighty-first Congress than it did last year. Last year this measure failed to receive even committee approval. However, by the end of the fiscal year 1949, the measure had received approval of the House Public Lands Committee. It is doubtful, however, whether it will gain a favorable ruling from the rules committee. The local legislative assembly enacted a body of progressive legisla- tion. Among the items were: (1) A law to establish the office of Virgin Islands auditor, (2) a law to create a public body corporate and politic to be known as the Virgin Islands housing authority, (3) a law to provide a uniform sanitary code, (4) a law establishing the apprenticeship board of the Virgin Islands, (5) a law creating a youth 16 ^ ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS planning commission, and (6) a banking act for the Virgin Islands. The creation of a Virgin Islands housing authority will enable the islands to set up the appropriate local administrative machinery in order to be eligible for Federal funds for low-cost housing projects and slum clearance under the recent Federal Housing Act. Consider- able improvement in the sanitary conditions of restaurants and public eating places, meat stores, and in the handling of perishable foods is anticipated through the enforcement of the Uniform Sanitary Code. In November 1948, for the first time in the history of the Virgin Islands, a referendum was held. The purpose was to determine the views of the electorate on questions of basic importance in any re- visions which Congress might make in the present Organic Act or Constitution of the Virgin Islands. This referendum revealed that an overwhelming majority of the voters were in favor of the Virgin Islands having direct representation in the Congress of the United States through a locally elected Resident Commissioner. They did not approve of the plan to unify the quasi-independent political dis- tricts of St. Croix and St. Thomas and St. John, nor were they favor- ably disposed toward the proposal for popular election of the Governor. However, it is significant to note that more than 40 percent of the voters who took part in the general elections did not cast referendum ballots, OTHER ACTIVITIES A biologist was appointed to head the wildlife program in the Virgin Islands, financed by annual allotments made under the Pittman-Robertson Act. TTnder his direction a general survey of the Virgin Islands is in progress to ascertain wildlife species now present, their relative numbers and distribution, what can be done to increase the numbers of resident species and to extend their present range, and the possibilities of introducing new game species. A survey of the possibilities of developing oyster culture in the Virgin Islands was made, upon request of local authorities, by experts from the United States Fish and Wildlife Service. This survey revealed that conditions favorable for the production of oysters in any great commercial quantities were not present in the waters of the islands. There is a good possibility, however, that with proper utiliza- tion of a few favorable areas there could be developed an industry that would adequately supply the local market. Over 1,500 males between the ages of 18 and 26 have been registered by the selective-service organization in the Virgin Islands since its establishment in August 1948. Of this number 1,355 have been classi- ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS 17 fied by the local boards. No inductions have occurred. However, all is in readiness to process any call upon notice. CONCLUSION Current developments indicate that economic progress in the Virgin Islands is possible chiefly through increased local food production, establishment of an all-year tourist program, and the establishment of small but significant new industries. Such an economic program is developing with the support of the local government. With the rechartering of the Virgin Islands Company, the establishment of tax exemptions and industrial subsidies for new industries and tourist accommodations, the prospective transferring of the local agricultural program to the United States Department of Agriculture, and the development of other commercial and industrial activities, the econ- omy of the islands should show marked improvement in the near future. The issues of political advancement, self-government, and improved public administration will be crystallized with the development of a well-informed public opinion. A growing consciousness of the civic and political responsibility of citizens is prerequisite to the advance- ment of local self-government. At the same time favorable action on the part of the United States Congress in providing for direct repre- sentation of the Virgin Islands on the congressional level would greatly stimulate the local sense of civic and political responsibility. Rainfall in inches, 1948-49 ^ July 1948 August September October November December January 1949. St. Thomas 3.86 2.71 7.92 8.48 5.S6 1.90 1.06 St. Croix 3.19 3.65 2.74 3.61 4.10 3.53 2.57 February-. March April May June Total St. Thomas 1.52 5.36 1.50 2.18 3.86 46.31 St. Croix 1.17 7.34 1.12 2.13 2.76 37.91 1948-49 average for Virgin Islands, 42.11 inches. 10-year rainfall record Year 18 -f ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Education statistics, 1948-40 ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS > 19 Institutional statistics, department of health, 1948-49 Christian- sted Frederik- sted Leper asyl-oin Kings HOI Home Charlotte Amalie Beds Bassinets Average occupancy Peak occupancy Minimum occupancy Number of physicians Number of sraduato nurses Average salary Average number of student nurses Average salary of student nurses Number of student nurses graduated. Other employees Total salaries Equipment Subsistence Maintenance Health project Average ration rate per day Total budget (municipal) Cost per patient per day Receipts (bills sent) Actual cash receipts Births in hospital Births out of hospital Deaths in hospital Admissions to hospital Sick days Ln hospital Admissions to clinic Dispensary treatments 73 12 42 64 21 3 13 $897. 60 5 458. 40 1 26 $27, 626. 00 7, 350. 00 15, 900. 00 11, 332. 39 61 10 36 52 21 2 12 $961. 80 7 461. 14 2 22 $29. 891. 00 3, 550. 00 14, 944. 92 9, 600. 50 92 150 28 33 27 (1) 1 1, 750. 50 137 144 130 (1) 5 $1, 019. 52 10 $4, 155. 60 490. 00 9, 969. 87 4, 793. 00 24 $14, 488. 00 875. 00 24, 894. 36 4, 582. 02 .506 61,821.00 3.81 4, 660. 70 2, 005. 05 102 102 .56 1,599 15, 333 1,249 3,484 .57 58, 041. 50 4.38 2, 308. 65 1, 225. 50 102 30 53 925 11, 884 541 5,798 .697 19, 449. 60 1.96 . 415 45, 004. 00 .92 1 3 10,227 20 46 46,140 111 20 107 125 84 7 12 $1, 200. 00 8 720. 00 82 $82, 252. 44 5, 900. 00 34, 900. 00 27, 800. 00 5, 694. 45 .61 169, 546. 89 3.67 11, 178. 50 7, 822. 70 291 199 99 2,422 39, 158 9,290 30, 301 1 Part time. Niimder of deaths and death rate from all causes {exclusive of stillbirths) per 1,000 population in the Virgin Islands of the United States and each island 20 > ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Number of deaths and death rate from all causes {exclusive of stillbirths) per 1,000 population in the Virgin Islands of the United States and each island—Con. ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 21 Number of of Hrths and Mrth rate (exclusive of stillbirths) per 1,000 population in the Virgin Islands of the United States and each island 22 -f ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Police department statistics Type of complaint Virgin Islands ANNUAL liEPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS ^ 23 Import and export statistics—Continued 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 Whiskey Cordials, liqueurs Wine 1 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 . 1946 $33, 245 2,762 64, 140 5,904 8,674 2,110 374, 224 , 435, 320 107, 775 4,311 371, 175 302, 778 2,742 952, 856 3, 668, 016 458, 075 4, 126, 091 1947 $30, 132 704 46, 600 1,625 11, 435 1,612 70, 198 312, 395 1,010 343, 424 34, 376 144, 170 5,377 3,098 1,649 304, 446 1,641 17, 473 1, 331, 365 852, 379 2, 183, 744 1948 $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 1, 138, 163 559, 874 1, 698, 037 Distribution of local govermnent employees according to occupation Occupation St. Thomas St. John St. Croix Virgin Islands Clerical Administrative Supervisory Professional ._ Subprofessional Public safety Inspectional Equipment operators. Trades and labor Housekeeping Food service Engineering Unclassified, regular.. Total Unclassified, casual labor. 109 6 28 157 33 53 6 36 117 47 46 3 38 51 4 12 108 23 30 3 27 51 57 15 20 160 10 40 265 56 83 9 63 168 104 61 3 58 679 401 1,080 995 Grand total, Virgin Islands. 2.075 Summary statement of Federal appropriations and grants-in-aid administered by govermnent of the Virgin Islands Title 1948 1949 Annual appropriations: Central administration Agricultural station. Virgin Islands,. Deficit appropriation. Virgin Islands Grants-in-aid to States and Territories: Tuberculosis control fund Venereal disease control fund General health control fund Maternal and child health services.. Crippled children Child welfare C ancer control fund Rapid treatment Mental health control fund ' Hospital construction ' Industrial hygiene Total $216, 100 24 -f ANNUAL REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS Comparative statement of revenues of the municipality of St. Croix for the fiscal year 1939 and 1949 Revenue item 1939 1949 Real property tax Income tax Auto tax Gasoline tax... Import duty Export duty Ship dues Wharfage Stamp dues .-. Vendue fees Taxes on inheritance Fees from court, fines, etc Excise duty Internal revenues Revenues from prison. Contiibutions for public institutions Returns from sanitary work Corporation fees Fees from customhouse Passport fees Telephone service.. Fees from burgher briefs Miscellaneous Total $48, 574. 38