UMASS/AMHERST
ANNUAL REPORT
OF THE
GOVERNOR OF
THE VIRGIN
ISLANDS
TO THE SECRETARY OF
THE INTERIOR
FOR THE FISCAL YEAR ENDED
JUNE 30
1938
OF THE
GOVERNOR OF THE
VIRGIN ISLANDS
TO THE SECRETARY OF
THE INTERIOR
FOR THE FISCAL YEAR ENDED JUNE
30
1938
UNITED STATES GOVERNMENT PRINTING OFFICE
WASHINGTON
: 1938
STACK
UNITED STATES DEPARTMENT OF THE INTERIOR
Harold
L. Ickes, Secretary
TERRITORY OF THE VIRGIN ISLANDS
Lawrence W. Cramer, Governor
For sale by the
Superintendent oF Documents, Washington, D. C.
Price
1
cents
CONTENTS
Page
Economic situation
1
The sugar business
1
The cattle business
.
3
The shipping business
3
Tourist trade
4
Congressional legislation
5
The Sugar Act of 1937
.
5
St. Thomas Harbor improvement
5
Other legislation
5
Local legislation
6
Fiscal
9
Municipality of St. Thomas and St. John
9
Municipality of St. Croix
9
Cost of the municipal governments
9
Reduction of Federal deficit contributions
9
The St. Thomas Harbor Board
10
The Federal appropriation
10
Work Relief Program accomplishments
11
Bluebeard Castle Hotel
11
Roads
,
11
Sanitary improvements
11
Street surfacing and drainage
12
Women's projects
12
Protestant Cay residence, St. Croix
12
Homesteads
12
Low-cost housing
13
Federal buildings
14
The Virgin Islands cooperative
15
Agricultural station and vocational school
16
Municipal government activities
16
Education
16
Health and sanitation
17
Welfare
17
Public works
18
Harbor
18
Public libraries
18
Police and prison
18
Administration of United States immigration laws
18
Civilian Conservation Corps
19
Conclusion
20
III
Digitized by the Internet Archive
in 2009 with funding from
Boston Library Consortium IVIember Libraries
http://www.archive.org/details/annualreportofgo1938virg
ANNUAL REPORT OF
THE GOVERNOR OF THE VIRGIN ISLANDS
Lawrence W. Cramer, Governor
CHARLOTTE, AMALIE, ST. THOMAS
A^igust 30, 1038
The Honorable the Secretary of the Interior,
Washington, D. C.
Sir: Pursuant to section 20 of the Organic Act of the Virgin Is-
lands 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,
1938.
ECONOMIC SITUATION
Definite improvements in the economic rehabilitation of the Virgin
Islands were recorded
in
previous annual
reports.
This improve-
ment continued
to be apparent
in both
municipalities during the
present fiscal year until a prolonged and severe drought in the island
of St. Croix seriously affected the situation there.
The sugar business and the cattle business, which are the two basic
industries of that
island, upon the former of which much
of the
rehabilitation program is based, were struck staggering blows by the
drought at a time w^hen sugar and cattle prices were at unprofitable
levels.
The sugar
business.—The
effects of the drought can be
assessed
by comparing the relative returns for the year 1937 with those of the
past year of 298 homesteaders in the island of
St. Croix who
are
being assisted by the government to acquire and develop small farms.
In 1937 these small farmers produced 16,117 tons of cane valued at
$53,081
as compared with 6,121 tons valued
at only $15,274 in 1938.
Their gross return in 1938 was only 29 percent of their 1937 income.
Sugar production in the island declined from
8,211 tons to 4,362
tons, while at the same time the sugar price
fell more than 20 per-
cent—a loss of more than 47 percent in tonnage and approximately
60 percent in value.
Hundreds of acres of drought-stunted cane were
uncut and plowed under.
Plowing and planting costs that should
have been spread over
3 or 4 years of sugarcane production were
1
2
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
totally
lost.
Sugar
factories with heavy investments
in sugarcane
grown on
so-called
administration land were even more
seriously
affected than were small farmers whose chief investment is their own
and their family's labor.
It
is evident that thorough consideration must be given
to the
possibility of reorganizing the sugar business so that it may continue
to
furnish employment
in
the
island
of
St.
Croix.
Many
efforts
have been made during the Danish regime and subsequently to
di-
versify agriculture and to find other profitable crops to replace sugar-
cane.
These
efforts have
not been
successful, and no
agricultural
development which furnishes employment to so great a number of
agricultural laborers as does the sugar business has yet been found.
It would thus appear that different methods of organization other
than those now prevailing will need to be attempted if this important
industry is to be carried on with any degree of success in the Virgin
Islands.
The homestead plan inaugurated in 1932 by the government points
the way
to a
possible
solution of
the
problem.
Experience
indi-
cates that the
agricultural
laborers
in
St. Croix
are competent
to
take over small farms and to operate them if they are furnished ade-
quate supervision and cultivation aids.
In fact, it is evident that the
average small farm of approximately 7 acres is smaller than necessary
to meet the needs and
potentialities
of
the small
farmers.
Small
ownership and
large-scale mechanical operation under government
supervision have been notably successful during the years of adequate
rainfall and have left the small farmer better
off during and after
a drought than he would have been as an agricultural laborer.
It is
therefore recommended that steps be taken through the
assistance
of such agencies as the Rural Resettlement Administration and the
Farm Security Administration to develop as widely as possible the
possibilities of leasing or selling small farms to be operated under
conditions similar to those established on the homestead areas.
The owners of a sugar factory in the island of St. Croix are willing
to cooperate
in establishing such
a
plan.
There
is
the
possibility
of working out the subdivision of approximately 6,000 acres of land
in this way.
Unless this or another equally effective plan is carried
out, it is probable that this sugar company will discontinue
its op-
erations and thus add 800 people to the unemployment
rolls.
If small farms are developed, they should be of
sufficient
size to
permit balanced agriculture by the small farmers.
Their average size
should not be
less than 30
acres, which should
include sugarcane
land as well as cattle land, so that small farmers may produce a cash
crop, vegetables for their own use and
for local
sale, poultry, and
a few head
of
cattle.
With mechanical
cultivation
aids,
financial
assistance, and with farm management supplied by the government
REPORT OF THE GOVERNOR OF THE
VIRGIISr ISLANDS
S
through the agricultural station or agencies of the Department of
Agriculture,
it
is believed that small farmers can be established on
a sound basis and that their standard of living can be greatly im-
proved over their present standard as agricultural laborers.
The sugar grower in the Virgin Islands does not receive benefit
payments under the Sugar Act of 1937.
Indeed, he not only does not
receive these benefit payments, but by
act of Congress
is compelled
to pay a special export tax of $6 per ton on all sugar produced in the
Virgin Islands and exported therefrom.
This tax, which represents
10 percent or more of the gross return of the sugar grower at present
sugar prices,
is paid by the grower of sugarcane under the practice
of
local sugar
factories which pay
for sugarcane according to the
New York sugar price after deducting the tax.
If other sugar pro-
ducing areas which have the benefit of irrigation and ample rainfall
require
benefit payments, and drought and catastrophy
payments,
sugar growers in the Virgin Islands who
sell their product in the
same market require them
also.
Certainly, they cannot do without
them and, at the same time, pay an export tax of $6 per ton.
It is imperative that legislation be enacted to return to the Virgin
Islands sugar processing taxes levied in the United States and thus
to permit the repeal of this export tax.
The Wages and Hours Act
applies to the sugar industry of the Virgin Islands.
There
is, there-
fore, no basis
for continuing the export tax
if
the purpose
of
its
enactment was
to
equalize
sugar
production
costs
in
the
Virgin
Islands with those in continental United States.
The
cattle
business.—The
cattle business, which
is of second im-
portance in each of the municipalities of the Virgin Islands, requires
reorganization in order to meet new conditions imposed in the only
available market.
Due to the vigorous prosecution of a tick eradi-
cation program in Puerto Rico conducted with Federal relief funds,
that important market for Virgin Islands'
cattle will no longer be
available unless a similar program is carried on in the Virgin Islands,
or arrangements are made to ship meat to market rather than live
animals.
Work bulls may no longer be shipped to Puerto Rico and
animals
for
slaughter must,
therefore,
be produced
in
the Virgin
Islands if the cattle business
is to survive as an important industry.
A careful survey by an expert has been made during the past year
as a result of which numerous recommendations for the improvement
of this industry were made.
The shipping business.—The shipping industry in the port of
St.
Thomas
continued
its improvement with
resulting
benefits
to
the
community at large.
During the
fiscal year 814 ships with a total
tonnage of 3,239,975 called at the port of
St. Thomas, as compared
with 777 ships with a tonnage of
3,084,173 in
1937, and 647 ships
with a tonnage of 3,017,682 in 1936.
There was inaugurated during
4
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
the year, for a trial period, an arrangement for the transhipment of
bauxite
at the
port of
St. Thomas from
small
vessels
of
shallow
draught which transport
it from British Guiana to the dock at St.
Thomas
to
ships
of
greater draught which
transport
it from
St.
Thomas to Canada.
This business increases the activity of the port
of
St. Thomas, furnishes increased employment, and signalizes the
advantages of the port of
St. Thomas over competing ports in the
Caribbean area.
The Army Engineer Corps has continued
its engineering surveys
of the harbor with a view to beginning authorized harbor improve-
ment work in the new
fiscal year.
The prosecution of
this project
is
of
first importance
to
St. Thomas whose
entire
economic
life
depends on shipping.
An interdepartmental committee appointed by
the
Secretary of
the Interior to study and report on the relative advantages of the
ports of St. Thomas and of San Juan, P. K., as a site for a graving
dock made a report on November
7, 1937, and found that if a grav-
ing dock were to be constructed in the Caribbean area
it should be
constructed in San Juan Harbor rather than in St. Thomas Harbor.
If a graving dock
is established in San Juan,
it will undoubtedly
have the effect of diverting shipping from the harbor of St. Thomas.
Since shipping
is the only commercial
activity of
this island, any
decrease in the number of ships calling here will immediately reflect
itself in an increase in the number of workmen in the community
who are without employment.
Therefore,
it will be a very serious
blow to St. Thomas to have a graving dock established in San Juan.
Tourist
trade.—The
development
of
the
tourist
trade
continues
to make steady progi'ess.
During the year 13 tourist ships called at
the port of St. Thomas with a total of 6,487 tourists aboard.
It is
interesting to note that two of these ships were not scheduled to call
at St. Thomas, but did so because rough seas prevented their calling
in San Juan Harbor.
Bluebeard Castle Hotel was taken over by a private operator under
a mutually satisfactory lease on December
1, 1937.
It continues to
attract a growing number of visitors to the Virgin Islands and has
contributed
substantially
to the development
of
St. Thomas
as a
winter resident center.
Extensive improvements in the sanitary
facilities of the town of
Charlotte Amalie, the surfacing of
streets,
the
reconstruction and
improvement of street drains, and the reconstruction and improve-
ment of highways during the year have greatly improved the oppor-
tunities for the development of St. Thomas as a tourist center.
Considerable demand
exists
for
residential
construction
both
to
meet local requirements and to increase the
possibilities
of winter
EEPORT OF THE GOVERNOR OF THE
VIRGUsT ISLANDS
5
resident development.
Plans are now under consideration to establish
Federal savings and loan associations through which the
financial
assistance of the Federal Home Loan Bank Board can be secured
for this purpose.
Vigorous measures are necessary to keep the sugar industry and
the cattle industry alive, to improve the
facilities of the harbor of
St. Thomas,
to
increase commercial shipping, and to
develop
the
tourist trade which, in
their sum, represent
all of the present im-
portant economic potentialities of the Virgin Islands.
CONGRESSIONAL LEGISLATION
The Sugar Act of 1937.—Under this act the sugar quota for the
Virgin Islands is fixed at 0.24 of 1 percent of the domestic allotment.
This
figure
represents an
increase from approximately
5,400
tons
under the Jones-Costigan Act to
9,200 tons in the Virgin Islands'
quota and permits a return to a normal sugar crop for the Virgin
Islands
based on
recent
years when
production was
not
greatly
reduced by
droughts.
Under the law no
refining operations may
be carried on in the Virgin Islands.
The Virgin Islands
are excluded from
the
benefit payments
of
title 3 of this act, and hold the unenviable position of being the oidy
sugar-producing area under the American flag which does not receive
these benefits.
Sugar processing taxes are collected on Virgin Islands'
sugar when shipped to the United
States and processed there, the
receipts from which are deposited in the United States Treasury.
Such
relief
as was
anticipated from the
increase of the Virgin
Islands sugar quota under this law has been
lost by reason of the
severe and prolonged drought which has reduced sugar production
by 50 percent, but for wdiich no benefit payments were made,
St. Thomas Harbor improvement.—Funds made
available, under
the War Department
civil
appropriation
bill, approved June
11,
1938,
for
river and harbor improvements,
will make
possible the
inauguration
of work on
the improvement
of
the
harbor
of
St.
Thomas which was authorized in the Rivers and Harbors Act of
1935.
Further
engineering
surveys have
been
carried
on
and
a
contract for the construction of a breakwater from the eastern end
of the harbor to Rupert's Rock will be let in the new fiscal year.
Other legislation.—Several
bills, including an amendment
to the
organic act of the Virgin Islands; a
bill to impose uniform excise
taxes in the Virgin Islands
; a bill to amend the Liquor Taxing Act,
and a
bill to authorize the appropriation to the Virgin Islands of
internal revenue taxes collected in the United States on Virgin
Is-
lands products, were introduced in the Seventy-fifth Congress, but
failed of enactment.
102262—38
2
6
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
LOCAL LEGISLATION
The most
important
ordinances
enacted by
the two
municipal
councils of the Virgin Islands were those providing for registration
and elections under that provision of the organic act which established
universal suffrage in the Virgin Islands beginning with January
1,
1938.
Comj)rehensive laws were enacted
in both municipalities
to
implement
this requirement
of
the
organic
act which marked an
important advance in the political organization of the Virgin Islands.
Registration under these laws is now taking place.
The municipality of St. Croix enacted legislation based on similar
laws in effect in Puerto Rico for the control and eradication of cattle
ticks.
Plans are in preparation for carrying on
a tick eradication
program in both of the municipalities of the Virgin Islands in the
new fiscal year with the assistance of W. P. A. funds and under the
technical
supervision
of
the Bureau
of Animal
Industry
of
the
Department of Agriculture.
In addition to much routine legislation there was enacted by the
Municipal Council of St. Croix an ordinance authorizing the execu-
tion of a contract granting a franchise to a private power company
to operate an electric light and power service in the municipality. A
slight reduction in rates will be put into effect at the end of 1 year
and provision is made for a further reduction of rates as the consump-
tion of electricity increases during the life of the contract.
Approximately 3,000 acres of land at the east end of the island of
St. Croix were purchased under an ordinance which authorized the
afforestation and development of the area by the Civilian Conservation
Corps.
The MunicijDal Council of St. Thomas and St. John enacted a num-
ber of important ordinances
in
addition
to the
electoral ordinance
referred to above.
Several ordinances were enacted which established
clearly defined rights-of-way for public roads and authorized a pro-
cedure
for securing additional rights-of-way
for roads whose con-
struction might be undertaken by Federal or municipal agencies.
This
action has permitted the widening of many roads which formerly were
too narrow^ for safety.
Property owners have cooperated in an excel-
lent manner in agreeing to donate land adjacent to roads so that this
work has been accomplished without cost to the government for the
acquisition of land.
Enabling legislation was enacted by the Municipal Council of St.
Thomas and St. John to provide for the operation of certain recrea-
tional facilities such as the municipal beach house and tennis courts,
and to provide for a method of operating them.
Unfortunately no
municipal funds have so far been made
available to conduct these
useful recreation centers.
They have been operated and improved
REPORT OF THE GOVERNOR OF THE
VIRGIN" ISLANDS
7
through the use of funds collected as
fees.
There
is great need for
development of additional
recreational
facilities
in the community,
and
it
is hoped that the recognition of this need by the legislature
will later result in the substantial extension of such facilities.
By ordinance of November
8,
193'7, there was created an
official
lottery in the municipalities of St. Thomas and St. John.
The ordi-
nance creating
it was based on
a
similar Puerto Rican
law.
The
ordinance provides that the proceeds from the lottery shall be made
available
for
hospitalization,
sanitation,
education,
and
poor
relief
in
the
municipality.
There
have
been
three
drawings
to
June 30, 1938.
The first drawing resulted in a loss of $64, the second
drawing in a surplus of $2,850, and the third drawing in a loss of
$104.
These
figures do not
include
administrative expenses which
have so far been paid out of a loan fund authorized by the ordinance.
It is too early to determine whether or not the lottery will be successful
in bringing in very much needed funds to the municipality for the
purposes for which it w^as created.
Authority was granted by resolution of the Municipal Council of
St. Thomas and
St. John to carry on reforestation work on estates
Calabashboom and Julia De Koning in the island of St. John,
These
estates, comprising an area of approximately 150 acres, have been in
the possession of the municipality for many years, but have not been
developed.
The Civilian Conservation Corps personnel is now under-
taking reforestation activities with a view to establishing a stand of
hardwood trees on it.
It is reported that logwood, sandalwood, ebony,
lignum vitae, and other valuable woods were once found in abundance
on the island of St. John.
If seeds or seedlings of these varieties can
be found, they will be propagated and planted.
Several important tax measures were enacted by
the Municipal
Council of St. Thomas and St. John during the year. A gasoline tax
imposing a tax at the rate of 4 cents a gallon was enacted on May 16,
1938.
Collections from this tax and from an automobile license tax,
which was amended to impose
license
fees
in accordance with the
weight of automobile vehicles to increase the revenue therefrom, are
to be segregated in a special road fund for use in maintaining the road
system of the municipality.
As a result of this action by the munici-
pality of St. Thomas and St. John, there
is now a uniform gasoline
tax of 4 cents a gallon in effect throughout the Virgin Islands.
Auto-
mobile license taxes in both municipalities are now at practically the
same level.
The enactment of this legislation is of special importance
because it makes available funds to maintain the increasing mileage of
roads in the municipality which have been improved through the
expenditure of Federal relief funds.
A trade and lamp tax which has been in effect in the municipality
since its enactment in 1855 was repealed and a new trade tax levying
8
EEPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
a tax of 1 percent of the business turnover of merchants engaged in
certain classes of business, and one-half of
1 percent on the annual
turnover of merchants engaged
in
certain* other
classes of business
was enacted by ordinance of May 16, 1938.
Under a companion ordi-
nance the suspension of ships' dues on vessels calling at the port of St.
Thomas for coal and oil bunkering was continued during the life of
the trade tax.
Appropriations were made by the Municipal Council of St. Thomas
and
St. John of funds necessary for the construction of a hospital
kitchen at the Municipal Hosj^ital
at Charlotte Amalie and for the
construction of a country school in the Mafolie district.
Both of tliese
structures w^ere urgently required for the proper functioning of mu-
nicipal medical and school
services.
Through the generosity of an
estate owner an excellent site was donated for the construction of the
school, wdiicli
is now under way.
Funds Mere
also appropriated to
pay a portion of the cost of the reconstruction of the Municipal Build-
ing' in Charlotte Amalie, which was purchased last year to house the
legislature, the public library, and other municipal offices.
In accordance with the provisions of section 7 of the Organic Act,
the Governor convened the first meeting of the newly created Legis-
lative Assembly of the Virgin Islands on November 22, 1937.
Num-
erous important items
of
legislation, which
were
included
in
the
message of the Governor calling the session of the legislative assem-
bly, were not considered by this body because of technical objections,
raised when the assembly met, against the introduction by the Gov-
ernor of bills for the consideration of that body.
This practice was
followed throughout the Danish regime, and has been continued so
far as meetings of the municipal councils of the Virgin Islands are
concerned by
specific
pro^-ision
of
the
organic
act.
Although
the
power to introduce measures in the legislative assembly is not granted
in specific words in the Organic Act, a reasonable interpretation of
its wording would justify the
practice.
The members of the
legis-
lative
assembly, however,
denied
the Governor
the opportunity
to
introduce measures, with the result that only one measure was held
to be properly before that body.
Because of the possibility of estab-
lishing a precedent which was clearly not intended to be established
by the Congress of the United States when
it enacted the Organic
Act. the Governor withdrew from the legislative assembly when the
ruling was
finally made that measures could not be introduced by
him.
The meeting of the legislative assembly was therefore without
result, and many important measures, including a uniform electoral
law for the Virgin Islands, were dismissed without consideration.
An amendment to the Organic Act specifically granting power to
the Governor to introduce legislation in the legislative assembly was
introduced in the Seventy-fifth Congress and was favorably rejjorted
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
9
in both the Senate and the House.
Unfortunately, the
bill
failed
of enactment in the closing days of the
session.
As a consequence
there
will
continue
to
exist
two
opposite
interpretations
of
the
Organic
Act
on
this
point
which may
temporarily
hinder
the
consideration of legislation needed for the Virgin Islands as a whole.
FISCAL
The revenues of the municipal governments again show substantial
increases over previous years.
In the case of St. Croix, however, col-
lections were greatly less than estimated at the beginning of the fiscal
year due to a considerable loss of sugar-export taxes and other taxes
falling on the sugar business.
It is feared that substantial decreases
in municipal revenues for the municipality of
St. Croix will result
in the fiscal year 1939 because of sugarcane crop losses in the years
1938 and 1939.
Municipality of St. Thomas amd St. John.—The actual revenues of
the municipality of St. Thomas and St. John were $213,981.94 which
represents an increase of 19 percent over the revenues of the preced-
ing
fiscal year.
Income-tax collections were $81,776, an increase of
130 percent over the preceding
fiscal year, and an increase of 461
percent over the
fiscal year ending June
30,
1935.
Receipts from
customs dues were $17,137, an increase of 17 percent over the
fiscal
year 1937.
Mimicipality of St. Croix.—The actual revenues of the municipal-
ity of
St. Croix were $191,816.03, an increase of 7 percent over the
preceding
year.
Income
tax
collections
were
$16,365,
an
increase
of
36
percent
over
the
fiscal
year
1937.
Export
dwiy
of
sugar
brought
in
$37,303, an
increase of 24.5 percent over the preceding
fiscal 3^ear.
Cost of the municipal governments.—The total expenditures of the
municipal government of
St. Thomas and
St. John were budgeted
at
$276,792.80.
The United
States contributed a
deficit appropria-
tion of $60,000, $10,000 less than the preceding year.
Expenditures
of
the
municipal
government
of
St.
Croix
were
budgeted
at
$264,032.53.
The United
States
contributed
a
deficit
appropriation of $50,000, $10,000 less than the preceding fiscal year.
Reduction
of Federal
deficit
contributions.—The
continuation
of
the policy of the Congress of the United States in reducing annually
the Federal contribution to the cost of operating the municipal gov-
ernments of the Virgin Islands has now proceeded to a point where
a relatively small appropriation
is being made.
In the
fiscal year
1938 the total
deficit contributions were $110,000.
In the 1939 Ap-
propriation Act this amount has been reduced to $75,000.
It is prob-
able that the municipality of
St. Thomas and
St. John
will not
re-
quire a
deficit contribution
for the
fiscal year
1940.
On
the other
10
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
hand,
St. Croix
will
require
assistance
in one form
or another
in
carrying the costs of
its municipal services for the next
fiscal year
because of serious
losses of revenue resulting from drought, whose
effects will be apparent in municipal revenues for at least 3 years.
The St. Thomas Harbor Board.—The revenues of the
St. Thomas
Harbor Board amounted
to $30,869, a decrease of
4.5 percent from
the preceding year.
Against these revenues were charged operating
expenses of $24,722, leaving an operating surplus of $6,147.
Collec-
tion of ships' dues in 1938 was $8,784, an increase of 2 per cent over
the preceding fiscal year.
Pilotage fees totalled $15,826, a decrease
of 5 percent from the preceding year.
THE FEDERAL APPROPRIATION
The appropriation, "Government of the Virgin Islands, 1938," was
as
follows:
Central
administration
$116, <X)0
Agriciiltnral experiment station and vocational school
85, 000
Deficit, mnnicipality
of
St. Thomas and
St. John
60,000
Deficit, municipality of
St. Croix
50,000
Total
261, 000
The Third Deficiency Appropriation Act, fiscal year 1937, appro-
priated $4,250 to provide for additional expenses of the government
of the Virgin Islands, primarily in connection with the enforcement
of the United States immigration laws.
After several months' delay at the beginning of the fiscal year, the
following work
relief
projects,
which
were
carried
on
as WPA
projects, were authorized,
all of which were completed by June
30,
1938:
Continuation
of
reconstruction and
renovation
of
tourist
hotel
and
Bluebeard
Castle
$29, 000
Improvement
to public highways,
St. Thomas and
St. John
92, 975
Improvement
to sewage disposal and sanitary water supply
systems,
and surface
drains,
St. Thomas
84, 525
Improvement to streets within the city limits of Charlotte Amalie,
St.
Thomas
.58,500
Mattress-making and sewing projects for women at Charlotte Amalie,
St. Thomas, and Christiansted and Frederiksted,
St. Croix
11, 300
Road
construction,
St.
Croix
61, 072
Installation
of
toilet
systems
at grammar
schools and
high
school.
repair and extension of water and sewer systems, and construction
of cisterns at municipal hospitals,
St. Croix
15, 521
Construction of concrete gutters at Christiansted and construction of
hard-surfaced streets at Christiansted and Frederiksted,
St. Croix__
14, 407
Construction work at Protestant Cay residence,
St. Croix
6, 000
Administrative
expenses
19. 500
Total
392. 800
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
H
WORK RELIEF PROGRAM ACCOMPLISHMENTS
Bluebeard Castle Hotel.—Numerous improvements were effected at
Bluebeard Castle which proved to be necessary after a preliminary
period of operation.
Special
attention was given
to water supply,
sanitary
installations,
electric
wiring,
kitchen
facilities and
other
service units of the hotel.
An attractive dining porch was erected
on the west elevation of the main building which has increased the
dining-room
space and which
greatly adds
to
the comfort
of
the
guests.
The temporary
operation
of
the
hotel by
the government
during the period of construction was concluded on November
30,
1937, when a private operator took over the operation of the hotel
under a lease.
The operation of the hotel by the government, paying
all costs of operation from income, ended wnth a slight profit wdiich
has been
deposited
in
the United
States Treasury.
The
hotel has
proved
to be
a
useful means
of
attracting
visitors
to
the
Virgin
Islands and has adequately
fulfilled the purposes for w^hich
it was
originally established.
Roads.—Further progress was made in improving the road system
of the Virgin Islands in accordance with
a master plan approved
by the local authorities. A total of 17 miles of road w^ere improved
during the fiscal year.
Of these
3i/^ miles were asphalt penetration
roads in St. Thomas and 11% miles were asphalt-surfaced roads on
a water-bound macadam base in
St. Croix.
The completion of the
program laid down for the present
fiscal year in spite of delays in
the allocation of funds and in spite of the difficulties of procurement
due to the great distance of the Virgin Islands from supply points,
represents a highly creditable achievement.
For different reasons the local authorities in each municipality are
especially
desirous
of
continuing
the
road-improvement
program
which has been a basic part of
all relief programs.
In
St. Thomas
this program
is intimately connected with the development of this
island as a tourist center.
Already the improvement of certain roads
has led to the purchase of land in hitherto inaccessible areas by those
who are interested in constructing residences for their own use or for
rental
to
winter
residents.
In
St.
Croix road improvement
is
of
especial importance to the sugar industry because sugarcane
is at the
present time brought
to weigh houses in animal-drawn carts or in
motor trucks, and from there is transported to the factories by motor-
truck.
Reduced transportation costs because of the improvement of
roads will benefit all classes of sugar growers.
Sanitary
irrhfrovements.—Much
progress can be reported
in the
improvement of sanitary facilities in the town of Charlotte Amalie.
Due to limitations of water supply, sanitation facilities, and sewage
disposal have historically constituted a serious problem in the towns
12
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
of the Virgin Islands.
In 1922
a beginning was made
in each of
the towns of the Virgin Islands in laying sewers and, in Charlotte
Amalie,
in
establishing
a
salt-water
snpply
system
for
sanitary
flushing purposes.
Substantial improvements to the salt-water sup-
ply system and sewer system in Charlotte Amalie were accomplished
in
the
fiscal
year
1937 with some
slight
extension
of
the
service
to
sections of the town which had previously not been
served.
In
the past fiscal year sewer and water mains were constructed to serv-
ice
all sections of the town.
Additional funds
are necessary
to in-
stall laterals and secondary sewer and water lines to make possible
the complete substitution of sanitary flushing systems for the primi-
tive arrangements which have previously been in use.
In
St. Croix
sanitary toilet facilities were installed in numerous nnmicipal school
buildings.
Street surfacing and drainage.—Much progress was made during
the year in surfacing streets and improving surface drains in each of
the
three towns
of
the Virgin
Islands.
This program
wdiich has
been prosecuted with successful
results over
a number of years has
added greatly to the cleanliness and attractiveness of the towns and
to the health and comfort of those living in them or visiting them.
Women''s projects.—A mattress-making project has been conducted
with success in St. Thomas and a sewing project has been conducted
in both
St. Thomas and in
St. Croix during the year.
These proj-
ects
are intended
to give employment to women and have
greatly
aided many persons who are without other means of support.
Ar-
ticles produced have been distributed to relief clients and have thus
served
the
double
purpose
of
furnishing employment
and
direct
relief.
Protestant Cay
residence.,
St.
Croix.—The
reconstruction
of
this
attractively located and interesting structure was completed except
for certain minor details and except for the reconstruction of adjacent
outbuildings.
This residence will be made available as quarters for
an officer of the government of the Virgin Islands.
HOMESTEADS
No
appropriation was
available
during
the
fiscal
year
for the
farther development of the homestead projects which have
consti-
tuted an
important element
of
the
rehabilitation program
of the
Virgin Islands.
After many
difficulties and delays a small admin-
istrative allotment was made
available
to pay
for the administra-
tive
costs of supervising 400 or more homesteaders who have been
established on the land and
to maintain
clerical records of
collec-
tions made from them.
The
local
authorities
in the municipality
of St. Croix cooperated wisely and effectively in advancing cultiva-
EEPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
13
tion loans to homesteaders from
tlie meager resources of the munic-
ipality.
The success of this program depends greatly on continuous
and
careful
supervision, and on
the
establishment
of
loan
funds
for
cultivation
aids.
The program was
established
on
a
20-year
rental-purchase basis and requires continuing administrative super-
vision during that time.
Partial provision
is made
to
carry
this
administrative expense in the appropriation for the government of
the Virgin Islands
for the
fiscal year
1939.
The program cannot
be
developed
to
its
fullest
potentialities
unless
additional
funds
are made available for administrative purposes on a relatively per-
manent basis and for cultivation aids.
Repayments in a total amount of $12,970 were made to the United
States Treasury by homesteaders and from homestead sources dur-
ing the year.
The excellent record established by the homesteaders
in previous yesirs in meeting their amortizing rentals and cultivation
loans when due
will, unfortunately, not be maintained during the
coming fiscal year.
As indicated elsewhere in this report, the great
majority of homesteaders, who are located in the island of St. Croix,
have received a gross return from
their cash crop of only 29
per-
cent
of
their income
for
the
preceding
fiscal
year
as
a
result
of
drought and low sugar prices.
At the same time,
it is reported that
of 298 homesteaders in
St. Croix not more than 15 will default en-
tirely in meeting rental payments or cultivation loan payments when
due.
The record established by homesteaders in previous years gives
ample evidence of the wisdom of establishing
field laborers in
St.
Croix on small farms.
This program should not only be fully sup-
ported
by making
permanent
provision
for
meeting
administra-
tive
costs and by establishing permanent arrangements
for
financ-
ing small
farms, but should
also be
greatly extended
so
that the
sugar business may continue
to furnish emploj-ment
to
agricultur-
ists
in
the island
of
St. Croix who would
otheriwse be
destitute.
LOW-COST HOUSBNG
By arrangement with the United
States Housing Authority, the
administration of the three low-cost housing projects erected in the
Virgin Islands bj^ the PWA Housing Division has been turned over
to the government
of
the Virgin
Islands.
This arrangement has
made
it unnecessary to
establish an expensive management organi-
zation and has therefore permitted the establishment and maintenance
of low rentals at these projects.
Both housing projects in St. Croix have been fully occupied almost
from the date when they were made available for occupancy.
Of
the 58 units in the Charlotte Amalie project there are as yet only 41
occupied.
The
organization
of
a community
club
at
this
project
14
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
has been instrumental in arousina-
o:reater
interest and understand-
ing on
the
part
of
prospective
tenants.
It
is
anticipated
that
all
of the units of the
St. Thomas project
will soon be occupied.
The followino; figures
set forth the status of rental collections:
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
15
be undertaken
in the new
fiscal year which
will preserve and im-
j)rove these structures whose condition has not been satisfactory in
the past.
The Treasury Procurement Division
has, during the
year, com-
pleted the Federal building
at Charlotte Amalie which houses the
post
office, the customs department, and the United
States Public
Health
Service.
This handsome
structure which
is
located
on
a.
commanding
site in Charlotte Amalie has won universal
praise.
THE VIRGIN ISLANDS COOPERATIVE
The steady progress of the cooperative has continued during the
fiscal year under review.
The organization has carried on entirely
on
its own
resources.
Despite
the
fact
that no
financial
aid has
been
received
from
any
Federal
agency,
it
has
been
possible
to
employ
a
greater
number
of
people
and
give
them
increased
employment.
During the
fiscal year 1937-38, 742 persons have worked for the
handcraft
division
of
the
cooperatives making
baskets,
hats,
and
other straw goods, sewing and embroidering linen, making dolls and
other novelties, making jams and preserves and a variety of other
hand-made
articles.
More
than
200
persons
are
steady
workers.
Nearly 100 have been on every weekly pay
roll.
The production
pay rolls for the year carried 8,287 persons for a total of $20,635.49,
as compared with 5,578 persons for a total of $14,386.78 for the fiscal
year 1936-37.
Individual production has increased during the fiscal
year
just
closed
over the average production
per worker
in
past
years.
As a result of this increase in production, the cooperative has been
in a position to take better advantage of the increased tourist trade
that was experienced this year.
The
export trade
fell
off
slightly
but
mail-order
business
im-
proved so that the aggregate of sales to the United States still shows
an increase.
In August 1936, the workers received a 3 j)ercent bonus on their
earnings
for
the
fiscal year
1935-36.
In December
1937
they
re-
ceived a 2 percent bonus on the earnings of 1936-37.
The decrease
in the percentage of bonus was due
to the
fact that since July
1,
1936, the organization has
received no
Federal
aid and
has been
carrying all its overhead expenses.
It is expected that the board of
directors will find it possible to authorize a larger bonus for 1937-38.
The cabinet-makers cooperative operating as a subsidiary unit of
the Virgin Islands Cooperative have been active throughout the year'
furnishing work for a number of young men and boys.
16
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
The rural division of the cooperative, known as the Rural Coop-
erative Association, has also
carried on
successfully.
This organi-
zation now
has
63
members
including
practically
all
the
small
farmers of any importance.
In order to encourage more and better production of poultry for
which there is a great demand in this market, the Rural Cooperative
has
established
a demonstration
poultry farm
at
the
agricultural
experiment
station
at Lindbergh Bay.
The farmer-members have
evinced much interest in the project and many of them are planning
to go in for poultry raising.
AGRICULTURAL STATION AND VOCATIONAL SCHOOL
Efforts have been concentrated in the. latter part of the fiscal year
in the direction of extension work.
In the past, extension work has
not been emphasized as forcibly as it might have been and a reorgan-
ization
is in process which should show definite and concrete results
in the improvement of agriculture in all its local phases. A definite
program of extension activities has been outlined for the new fiscal
year.
In
St. Thomas, bench-terracing
is being experimented with
in the hope
of inaugurating
a system
of
constructive
agriculture.
Although much has been accomplished by the vocational school in
formulating sound
principles and
practices,
there was under
con-
sideration at the end of the fiscal year a reorganization of vocational-
school activities on a cooperative basis with the municipal department
of education
to provide
for the carrying on of academic work
at
the
Christiansted High
School
for
the
vocational-school
students,
and
agricultural and
related
courses
at
the
vocational
school
for
the ninth, tenth and eleventh and twelfth grades of the high school.
This change
is planned for the beginning of the new school year.
MUNICIPAL GOVERNMENT ACTIVITIES
Education.—Unfortunately, nothing was accomplished during the
year on the two
vital needs of educational
activities, a revision of
the antiquated school law and preparation of new courses of study.
Marked interest has been disf)layed by the teachers in all facilities
for self-improvement
in
professional
training.
Many
teachers
at-
tended summer school
at the University of Puerto Rico, some
as-
sisted by funds appropriated by the municipal councils; and many
others pursued courses
for professional advancement
or secondary
credit in the Teachers Institute in Charlotte Amalie.
A Jeanes
teacher came
to
the municipality of
St. Thomas and
St. John during
the year through
the
interest of Dr. Arthur D.
Wright of the Southern Education Foundation.
The Jeanes
pro-
gram was extended to this municipality but was somewhat retarded
KEPOET OF THE GOVEKNOR OF THE VIRGIN ISLANDS
17
due
to the
fact that the Jeanes teacher was required to
supervise
elementary instruction. A rearrangement of personnel will eliminate
this factor in the new school year so that the Jeanes teacher may
direct her attention wholly to the education-in-living program which
has been highly successful in the municipality of
St. Croix.
Total
enrollment in
all public schools was
3,374
as compared with 3,249
in the previous year.
Health wrd sanitation.—T\\^ general health
of
the communities
has been good and there were no epidemics.
In St. Thomas nearly
1,500 school children were examined and treated for correction
of
conditions
other
than
malnutrition.
The
examination
showed
a
large percentage of malnutrition due to lack of proper and varied
diet.
There was a severe outbreak of whooping cough in St. Thomas
late in the fiscal year.
The insanitary night soil removal service continues to be a poten-
tial menace to the health of the islands.
The abandonment of the
service by compulsory
installation
of
sanitary
automatic
flushing
toilets would be a great aid in the prevention of infectious and con-
tagious diseases.
In St. Croix research work on elephantiasis was continued.
Oper-
ating and bandaging procedures were worked
out.
This work has
been so successful that the chief municipal physician was invited to
lecture on elephantiasis before the School of Tropical Medicine in
San Juan, P. R.
Inadequate
funds
have made
it
impossible,
particularly
in
St.
Croix, to further improve and strengthen the medical services and
to do needed public-health work.
There are needed in both munici-
palities new, modern hospital buildings, with up-to-date equipment,
designed to
fit the needs of the communities they serve.
The present
hospital
facilities, even though
greatly improved
in the past two
decades, have served their useful
lives and must be replaced with
new and modern structures as soon as possible.
'Welfare.—Tenant selections for the three housing projects of the
United States Housing Authority, viz., the 58-unit, 106-room, H. H.
Berg Homes
at
St. Thomas; the 38-unit, 70-room Bassin Triangle
at Christiansted, and the 30-unit, 54-room Marley Homes
at Fred-
erikstecl, greatly increased the volume of
activities of the welfare
departments.
Mattress-making and sewing projects for women were conducted
from W. P. A. funds.
The welfare departments also acted as em-
ployment
offices for the assignment of persons from the relief rolls
to w^ork projects.
In
St. Thomas,
recreational
activities have
been
sponsored
on
public
tennis
courts and
at
a public beach
house.
A community
chest was organized.
18
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
In St. Croix special emphasis was placed on public-health nursing
service in the schools and in the homes of the underprivileged.
Public works.—The routine activities of the municipal public works
departments were accomplished without interruption of the public
services within the limitations of appropriated funds and available
transportation
facilities.
Important public works
projects, such
as
improvements to public highways, street improvements, repairs and
extensions of water and sewer systems were carried on from WPA
funds under the supervision of the public-works departments.
These
are derailed elsewhere in this report.
Harhor.—814 ships with a gross tonnage of 3,239,975 entered the
harbor
of
St. Thomas.
Of
this number,
70,
with
a
tonnage
of
285,512, were Government ships and 744, with a tonnage of 2,954,463,
were merchant ships.
This was the best shipping year of the port
of St. Thomas for the past 20 years.
Public
lihraries.—The three public
libraries continued their con-
tribution
to
juvenile and adult improvement within the limitation
of the public appropriations for their support.
The
circulation
in
the Frederiksted Library increased due to the addition of a children's
room.
The
St. Thomas Public Library acquired through
a private
subscription of funds a valuable collection of books, manuscripts, and
woodcuts of the late Dr. Charles Edwin Taylor, author of Leaflets of
the D. W. I.
Police, and prison.—There has been
in progress a decided
effort
to improve law-enforcement
activities.
There were no unusual
oc-
currences, but the routine work of the departments has been increased
considerably as a result of new tax, automotive, and disease-control
legislation.
ADMINISTRATION OF UNITED STATES IMMIGRATION LAWS
Further studies of the immigration laws and of questions relating
to their application and enforcement in the Virgin Islands were made
by rejjresentatives of the State Department, the Labor Department,
and the Interior Department, due to the fact that deportation pro-
ceedings conducted in accordance with the findings of earlier studies
were found to be legally defective.
As a result of these studies,
it
was held that the Immigration Act of 1917
applies
to the Virgin
Islands and that the Labor Department is responsible for the admin-
istration of the LTnited States immigration laws in the Virgin Islands.
Procedures were worked
out
for
the
appointjnent
of
officers
of
the government of the Virgin Islands as immigration
officers who
will
administer
the immigration
laws under
the
direction
of
the
•'Secretary of Labor.
Many
difficult problems of
interpretation
of
KEPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
19
law and of
its application to individual
cases have
arisen.
Espe-
cially difficult are the cases of persons who entered the Virgin Islands
prior to June 1925, when
efforts were
first made by the
officers of
the government of the Virgin Islands
to
enforce the immigration
laws.
In many of these
cases there
is no record of entry because
of the inadequacy of records.
The new procedures for the administration of the immigration laws
became operative on July 1, 1938, and have thrown a great additional
burden of responsibility upon the
officers of the government of the
Virgin Islands.
Request has been made for further assistance from
the Department of Labor to secure a determination as to the status
of the many persons who appear at the present time to be "hardship
cases."
The requirement contained
in
recent
relief
acts debarring
aliens from employment on
relief projects has been rigorously en-
forced with the result that, in many cases, all possibility of employ-
ment has been denied to persons who were not even aware of the fact
that they had not acquired United States citizenship
as
a result of
various enactments by the Congress which accorded that status to
natives of the Virgin Islands.
CIVILIAN CONSERVATION CORPS
The outstanding achievement of the CCC was the completion of
drainage work at Frederiksted swamps, St. Croix.
This area, which
was a breeding place for malaria mosquitoes, because of its situation
immediately adjacent to the town of Frederiksted, constituted a per-
ennial menace and on several occasions was responsible for malaria
epidemics
of
considerable
proportions.
Since
the
completion
of
drainage work by the CCC, the malaria epidemic has subsided and
only a few sporadic cases developed during the year.
All low^-cost
housing
projects were graded and landscaped with
success.
Blue-
beard Castle Hill was likewise graded and landscaped.
A number
of
afforestation projects were begun during the year by the CCC
organization including the planting of hardwood trees at Calabash-
boom, St. John
; planting of cocoanut palms at Sandy Point, St. Croix
;
and the development of approximately 4,000
acres
at the
east end
of St. Croix as a mahogany forest.
The Civilian Conservation Corps likewise carried on a substantial
road program of which the St. Peters Mountain Road improvement
constitutes
the most important
achievement.
This
scenic
drive
is
being extended at the present time with a view to developing a cir-
cular
drive
in
an
area whose
scenic
attractions
are
outstanding.
Much progress has been made in developing a farm-to-market road
linking the northside estates on which TO families have been estab-
20
REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS
lished on
small farms with
the Bethlehem
Sugar Factory
in
St.
Croix.
Notable progress has been made in developing government
house gardens in St. Thomas.
At the request of
the
Secretary
of the
Interior, Mr. Frank H.
Knapp, of the Soil Conservation Service of the Department of Agri-
culture, made a study and report on the possibilities of water conser-
vation with special reference to conservation work which might be
carried on by
the
Civilian
Conservation Corps
organization.
Mr.
Knapp prepared an excellent report in which numerous helpful rec-
ommendations were made which will be used as a guide for the future
activities of the Civilian Conservation Corps.
During the year
a side camp was established in the island of
St.
John where there are now 26 persons enrolled in the senior camp.
The
senior camp
in
St. Thomas has maintained an enrollment of
approximately 75 persons, and the junior camps in St. Thomas and
St. Croix have maintained their authorized enrollment of 100 men
each.
In the next
fiscal year
it
is proposed to increase the
enroll-
ment of the St. Croix Camp from 100 to 150 men.
CONCLUSION
The unexpected and
unfortunately
prolonged
delay
in
securing
relief allotments after the conclusion of the 1937-38 work-relief pro-
gram on June
30,
1938, has
revealed
the great dependence of the
Virgin Islands on the aid given them from this source.
This is espe-
cially true in St. Croix where the program of economic rehabilitation
was dealt a severe blow by drought and low sugar prices.
The sugar business is in serious jeopardy and must be reorganized
if it
is to survive in the island of St. Croix.
Definite measures must
be taken promptly to relieve that business of the special disabilities
imposed on
it and to modify the basis on which
it has been organ-
ized in the past.
The cattle business must be assisted to prevent the loss of its only
market. A change in the type of animal produced must be effected,
a tick-eradication program must be carried through to a successful
conclusion, and better marketing
facilities must be developed if the
great potentialities of this business in the Virgin Islands are to be
fully realized.
The harbor of St. Thomas must be improved in order to maintain
its present outstanding position in the Caribbean
area.
Continued
emphasis must be given to the development of the tourist trade which
has proved to be an important factor in the economic rehabilitation
of the island of
St. Thomas.
Great fear has been expressed locally
that the enforcement of the immigration laws and the navigation
laws will hinder the shipping business of the island of St. Thomas.
REPORT OF THE GOVERXOR OF THE VIRGIN ISLANDS
21
It cannot be determined at this time whether or not this apprehen-
sion
is well-founded.
Some adjustments
will undoubtedly have to
be made and some loss of shipping business may finally result.
Although much progress can be recorded in the improvement of
the basic services in both the municipalities of the Virgin Islands,
there is, at the same time, obvious need for substantial improvements.
One of the outstanding needs of the municipalities
is the reconstruc-
tion and improvement of the municipal hospitals.
It
is imperative
that means be found in the very near future to carry through a pro-
gram of hospital construction so that the steady improvement of the
medical service in the Virgin Islands which has been characteristic
during the past generation may be continued.
Respectfully submitted.
Lawrence W. Cramer, Governor.
o
•''y,:i