-69TH CONGRESS t HOUSE OF REPRESENTATIVES 5 
REPORT
2e1 Session f 
t No. 2095
AMENDMENT TO THE ACT PROVIDING A TEMPORARY
GOVERNMENT FOR THE VIRGIN ISLANDS
FEBRUARY 15, 1927.—Referred to the House Calendar and ordered to be printed
Mr. KIESS, from the Committee on Insular Affairs, submitted the
following
REPORT
[To accompany H. R. 17142]
The Committee on Insular Affairs, to whom was referred the bill
(H. R. 17142) to amend section 4 of the act to provide a temporary
government for the Virgin Islands, and for other purposes, approved
March 3, 1917, having considered the same, report favorably thereon
with the recommendation that the bill do pass.
This bill reduces the export tax on sugar from $8 per ton to $5
per ton. This export tax was established by the organic act of
March 3, 1917, which provided for the government by the United
States of the Virgin Islands. It was originally imposed in order
to provide revenue for the islands. Its effect has been to work
a great hardship on the sugar growers of the islands, who are placed
at a great disadvantage to the sugar growers of Porto Rico. The
entire amount collected under this tax averages under $50,000 a year,
but nevertheless it is becoming increasingly evident that unless some
relief is given to the sugar growers that they will be forced to dis-
cwitinue. Should this happen it would cause great hardship in the
islands, as the sugar growers provide practically the only employ-
ment available. Your committee feels that the entire sugar export
duty should eventually be removed. The levy of such a duty is
repugnant to our principles of government and directly contrary in
spirit, at least, to the clause in the Constitution that "no tax or duty
shall be laid on articles exported from any State." While your
committee feels that this export duty can not be eliminated entirely
at once because of the loss of revenue to the islands, it does recom-
mend its reduction from $8 per ton to $5 per ton at this time, as a
means of temporary relief to the sugar industry of the islands.
Your committee has held extensive hearings during both sessions
of this Congress, and inhabitants from the Virgin Islands, repre-
senting various factions and officials of the Navy Department were
heard at length. It is felt that this bill meets their approval.
0
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