which are lacking in the natural, and apparently in human resources also, to support such a standard? In the 1950 report I stated: FUNDAMENTAL ECONOMIC PROBLEM In addition to the basically similar problem in our Atlantic and Pacific dependent areas as to what type of civil governmental structure is best suited to the needs and desires of the peoples who live in them, the fundamental economic problem is likewise the same. Stated simply, that problem seems to me to be the almost philosophical one of to what extent is the American taxpayer obligated to provide an American standard of living in terms of consumers' goods, health and education services, and social security for areas remote from continental United States which are too poor in natural and in human resources in their present state of development, at least, to attain and maintain such a standard without continual help in one form or another from the Federal Treasury. Furthermore, from the point of view of the native populations of the areas also, the question arises whether the burdens and complications of the type of democracy and economy we have evolved for ourselves over the years on the mainland of the United States are suited to and in the best interests of the economically backward and politically immature inhabitants of areas to whom such responsibilities are by nature foreign. I regret to have to admit that I have not as yet found the answer. Nor has anyone else of whom I know found the answer. UNIFICATION OF LEGISLATURE The next major point in the revision of the governmental structure of the Virgin Islands is that of elimination of the expensive and cumbersome old system of three separate legislatures, and much overall duplication of the executive departments. Everyone, including the Virgin Islands Legislature, appears to agree that consolidation and streamlining are necessary, and there is general agreement, except on the part of the St. Croix Chamber of Commerce, as to how this should be done, namely, by creation of a single, islandswide legislature, a single treasury, and islandswide executive departments. Also, there seems to be general agreement on freeing the executive from the petty control of the legislature in the way of having to obtain legislative approval for each and every appointment in any executive department, regardless of either how technical and skilled, or how petty and menial are the duties to be performed. The hands of the new Governor, particularly, should not be tied in this way. COMPENSATION AND LENGTH OF SESSIONS OF THE LEGISLATURE There is, however, a point of difference as to the sessions of the legislature and the compensation of its members. From a primarily honorary post, the local legislatures have successively increased their own pay and the length of the sessions until now the 16 legislators of the 2 municipalities, representing 25,000 persons with an electorate of 6,384, draw annual salaries ranging up to $2,300 plus quite generous expense allowances. As pointed out in the excellent material submitted at my request by Governor de Castro, found in part IV of this report on page 99, in the fiscal year 1929-30, the cost of the Virgin Islands Legislature was $6,627.20, whereas according to the House appropriation hearings, part I, page 640, the cost of the legislative branch in the Virgin Islands was $99,010.07 for the fiscal year 1952-53. For convenient reference, I will insert the "Summary of expenditures, Virgin Islands," set forth in the House committee hearings at this point in my report. Thus, the costs of the legislative branch was more than 13 times greater last year than 24 years ago. I will state candidly that I do not think this approximately 1,300 percent rise in legislative costs is at all justified, either by the contribution the three local legislatures have made to the progress and welfare of the Virgin Islands, or by increases in the cost of living. Such openhanded dipping into the public treasury, at a time when the islands have been operating under deficit-financing from the Federal taxpayers, is not an indication of responsible self-government. In the majority of the States, the sessions of the State legislature are limited, by law or by the State constitution, and in a number the legislators are paid $10 a day or less. In the case of Guam, under the most recent organic act the Congress has enacted, the system of 60-day regular sessions, with per diem compensation, which seems to have worked very well. Therefore, I am recommending that the new Virgin Islands Organic Act follow the precedent which has worked so well in Guam, with an even larger population, and thus limit the length of session and the compensation of the members of the Virgin Islands Legislature. LANGUAGE QUALIFICATIONS FOR VOTERS The question of a language requirement revolves on the issue of whether the several thousand Puerto Rican residents in the Virgin Islands should be allowed to vote in Virgin Islands elections. Under 1936 Organic Act, this industrious and thrifty group in the Virgin Islands population is effectively disenfranchised by the requirement that voters must be able to read and write the English language. I have received reports that this test is enforced with a higher degree of severity and exactitude in permitting a Puerto Rican to register than when it comes to registering a native Virgin Islander. However, I have no evidence of the truth of this charge-no Puerto Rican has been willing to make a statement to me to that effect, for example. The Department of Interior's proposed bill contains a suggested provision prohibiting the Virgin Islands Legislature from imposing a language qualification. The legislative assembly and the chamber of commerce measures, on the other hand, are silent on the subject, thus in effect giving the Virgin Islands legislature discretion in the matter. A large number of the States of the United States do require that their voters be able to read and write the English language. There is no provision in the Federal Constitution prohibiting them from passing such laws. As far as I have been able to ascertain, Congress has never in an enabling act prohibited a State from enacting such legislation. Therefore, I am inclined to go along with the legislative assembly and the chamber of commerce and leave out of the new organic act any restraint upon the new legislature in this respect. I earnestly urge, however, that the citizens of the Virgin Islands seriously consider the desirability of having such an important and industrious segment of their population as the Puerto Ricans constitute participate in the political life of the islands. And I earnestly urge that the Puerto Ricans learn to read and write English. Elective Governor The idea of an elective Governor appeals to me strongly, as is shown by my sponsorship of the measure in the 80th Congress by which Puerto Rico was given the right to elect her own Governor. Also, in previous Congresses I have sponsored an elective Governor bill for Alaska. However, I do not believe that the Virgin Islands are ready yet for such political responsibility. The firmest yardstick of political maturity is the industry, self-reliance, and determination of a people to work out their economic destiny. Furthermore, Puerto Rico has been American for more than half a century. But the Virgin Islands came under the American flag in 1917-only 37 years ago. Puerto Rico is the only offshore American area that elects its Governor. I believe that we should wait and see how the people of the Virgin Islands handle the new, greater political responsibilities which they are attaining under the new organic Act. I pledge that I will be among the first to sponsor a bill for an elective Governor when the time comes. The Virgin Islands Resident Commissioner All three proposed bills-Interior, the chamber of commerce, and the legislative assembly-call for the creation of an office of Resident Commissioner of the Virgin Islands in Washington. Under the 1952 census estimate, there are 24,000 persons in the Virgin Islands. The office of Resident Commissioner would cost nearly $47,000 a year, the Comptroller General informs me. I cannot see what functions a Resident Commissioner of the Virgin Islands could possibly perform for 24,000 people that would begin to justify an additional expenditure of $47,000 of Federal funds. I cannot but believe that there are better ways of spending $47,000 and therefore recommend against inclusion of such a provision in the organic act. The Comptroller General's letter is as follows: Hon. HUGH BUTLER, COMPTROLLER GENERAL OF THE UNITED STATES, Chairman, Committee on Interior and Insular Affairs, United States Senate. MY DEAR MR. CHAIRMAN: Further reference is made to your letter of July 8, 1953, requesting an estimate of the overall cost of an office of Resident Commis sioner from the Virgin Islands, which would be provided for by S. 2321, S. 2322, and S. 2323, 83d Congress. Estimate of the overall annual cost of an office of Resident Commissioner from The allowance of $500 is specified in 2 of the bills introduced and is the same as allowed the Resident Commissioner from Puerto Rico (2 U. S. C. 45). If the bill as passed does not stipulate a fixed amount, the allowance would be at the rate of 20 cents per mile as provided in 2 U. S. C. 43, or approximately $700. 2 The allowance for clerk hire to each Resident Commissioner is fixed by law (2 U. S. C. 60g) at the basic rate of $12,500 per annum. The Resident Commissioner may arrange the schedule of salaries of clerks in his office at basic rates in multiples of $5, but no salary shall be fixed at a basic rate higher than $5,000 per annum. Appointments of clerks are limited to 6. To the basic salary rates as thus established there are applicable salary increases as provided by the acts of June 30, 1945, 59 Stat. 301; May 24, 1946, 60 Stat. 217; May 3, 1948, 62 Stat. 1267; October 28, 1949, 63 Stat. 974; and October 24, 1951, 65 Stat. 613. The estimate of $23,500 is the approximate maximum gross salary for 6 clerks, at basic salaries plus applicable salary increases. 3 The estimates of cost for long-distance telephone calls allowed, not to exceed 1,800 minutes per year, is based on an average of 360 calls of 5-minute duration, between Washington, D. C., and the Virgin Islands, at the published rate of $6 for the first 3 minutes and $2 for each additional minute. 4 The estimate of cost for telegrams allowed, not to exceed 12,000 words per year, is based on the use of the total allowance at the published ordinary rate of 19 cents per word from Washington, D. C., to St. Thomas, V. I. If letter telegrams are used the rate per word is one-half the ordinary rate. In addition there are other recurring and nonrecurring items for which no estimates are included, such as 1. Cost of outfitting an office, including the furnishing of electrical or mechanical office equipment not to exceed $2,500 as provided by House Joint Resolution 206, 83d Congress, approved March 25, 1953. 2. Current maintenance expenses of an office. 3. Franking privilege. 4. The customary allowance to the widow or heirs of a Resident Commissioner who may die during his term of office. I hope that the above information will serve the purpose of your inquiry. E. L. FISHER, Acting Comptroller General of the United States. CONCLUSIONS AND RECOMMENDATIONS I have been offering conclusions and making recommendations respecting the Virgin Islands for some years now, and I am aware that my efforts have not as yet had much effect on combating the weakness that has resulted from a pampered economy. The islands have less land under cultivation, produce and an even smaller proportion of the food they eat, and, judging by the need for importation of foreign laborers, are performing a decreasing share of the work necessary to keep the economic machine going. In these respects I invite attention to the reports of the Department of Agriculture and the Department of Commerce set forth in part IV. The rise in business activity has been completely offset by the rise in governmental costs, as I have shown at perhaps too great length in this report. The educational system still does not teach the people to live and work in their environment, and to make the most of what they have, nor have the people themselves learned it. There must be a tre mendously increased emphasis on vocational training and on the basic dignity of agricultural labor. However, the immediate situation does give some basis for hope. First and foremost, a new Governor has been appointed and confirmed. I have great respect for Governor de Castro. He has served the people of the Virgin Islands for 35 years in various capacities with intelligence, ability, and a faithfulness "over and beyond the call of duty." But the very length of his service and his very intimate acquaintance with the personalities and factions in the islands might have proved something of a detriment in much needed change and new approach to the problems. I believe that Governor Alexander has the personality, the strength of character, and the background and experience to bring a new, fresh approach to the basic problems that so far have defied solution. I can assure him of the complete backing and full cooperation of the committee and, I believe, of the great majority of the Members of the Senate. One of his first and most important jobs will be to try to bring the educational system into line with the realities of the situation. I am convinced that Governor Alexander will have the initiative to make the needed changes in emphasis and, if need be, in personnel. ORGANIC ACT As to the proposed new organic act, I wish to repeat that the mere passage of another law by Congress is not going to solve the problems of the Virgin Islands. The personality and character, and background and training of the new heads of the government will have far more to do with changing the fundamental attitude of the people toward working on the land they have. However, we can make the job of Governor and his staff more likely of success, and at the same time cut the costs of government in the Virgin Islands to the mainland taxpayer, by changing the present cumbersome archaic basic law. Our primary legislative goals should be economy and efficiency in government, and help for attainment by the people of self-sufficiency with all of the increased political and economic rewards that such attainment will bring. Therefore, I recommend enactment of a new organic act to provide― (1) For a unicameral legislature and consolidation of the present overlapping and duplicating executive departments. This legislature would pass on department heads and policymaking appointments only, leaving the Governor free to make other appointments on a merit, "workability" basis. The earmarking of incentive funds (2) A matching grant, on a permanent basis, out of the internal revenue taxes paid in the mainland by mainland taxpayers on Virgin Islands products consumed on the mainland. Such a grant would be on a dollar-for-dollar basis of funds raised by local taxation (but including Federal income taxes). A Federal comptroller would be appointed by the Secretary of Interior to audit and keep track of the expenditures of those funds for the time being. (3) The Governor to continue to be appointed by the President until the electorate of the Virgin Islands gives proof of its political |