in the annual budget as predominantly revenue producing. The Corporation's annual budget program shall specifically set forth any loss sustained in excess of the grant previously made for the last completed fiscal year. Appropriations are hereby authorized for payment to the Corporation to cover such additional losses incurred. (b) Appropriations are also authorized for payment to the Corporation in the form of a grant, to be accounted for as general funds of the Corporation, in such amounts as may be necessary to meet expenses to be incurred for specific programs which are included in the annual budget as not predominanetly of a revenue-producing character: Provided, however, That (1) in the case of activities of a predominantly non-revenue-producing character the expenses shall not exceed the amounts of the grants for these activities, and that (2) the funds granted under this subsection shall be expended only upon certification by a duly authorized certifying officer designated by the Corporation, and the responsibilities and liabilities of such certifying officer shall be fixed in the same manner as those of certifying officers under the Act of December 29, 1941 (55 Stat. 875), as amended (31 U. S. C. 82b-g). (c) The Board of Directors shall have the power and duty to appraise at least annually its necessary working capital requirements and its reasonably foreseeable requirements for authorized plant replacement and expansion, and it shall pay into the Treasury of the United States any funds in excess thereof. Such payments shall be applied, first, to reduce the balance attributable to advances outstanding under section 6 (a) and, second, to the Government's investment represented by the value of the net assets transferred under section 10 of this Act and any subsequent similar investments by the Government in the Corporation. SEC. 9. The management of the Corporation shall be vested in a Board of Directors consisting of seven members, including the Secretary of the Interior, the Secretary of Agriculture, the Chairman of the Reconstruction Finance Corporation, the Governor of the Virgin Islands, and three experienced businessmen who shall be appointed by the President of the United States. The Board shall select its Chairman. The appointed directors shall serve for a period of six years, except that (1) any director appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed, shall be appointed for the remainder of such term, and (2) the terms of office of the directors first taking office after the date of enactment of this Act shall expire, as designated by the President at the time of appointment, one at the end of two years, one at the end of four years, and one at the end of six years, after the date of enactment of this Act. Qualifications of Board members shall include demonstrated ability, attachment to the public interest, impartiality, and diversified experience among its members. The Board shall be responsible for over-all policy making and general supervision. The Board shall meet at least quarterly, at least one of which meetings each year shall be held in the Virgin Islands. The Board of Directors shall act only by a majority vote of those present at a meeting attended by a quorum, and such quorum shall consist of four directors. Subject to the foregoing limitation, vacancies in the membership of the Board shall not affect its power to act. The directors shall receive no salary for their services on the Board, but under regulations and in amounts prescribed by the Board, with the approval of the President or his representative, may be paid by the Corporation reasonable per diem fees, and allowances in lieu of subsistence expenses, for attendance at meetings of the Board and for time spent on official service of the Corporation, and their necessary travel expenses to and from meetings or when upon such official service, without regard to the Travel Expense Act of 1949. The administrative functions shall be centered in a staff of full-time executive officers headed by a President appointed by the Board. The President shall be responsible to the Board for the execution of programs and policies adopted by the Board and for the day-to-day operations of the Corporation. Between meetings of the Board, the Chairman shall see that the Corporation faithfully executes the programs and policies adopted by the Board. SEC. 10. (a) There is hereby transferred to the Corporation the following property: (1) All property-real, personal, and mixed-now operated by the Virgin Islands Company on behalf of the United States, except the property now operated by that Company for the Department of the Interior which was conveyed to that Department by revocable permit from the Navy Department under agreement dated January 1, 1948. The value of the property so transferred shall be fixed at the depreciated cost as of June 30, 1947, shown in schedule 1 of the Comptroller General's report on the audit of the Virgin Islands Company for the fiscal year ended June 30, 1947, adjusted for all changes from that date to the date of transfer, including depreciation at the rates set forth in said schedule 1. (2) All the assets and property-real, personal and mixed, tangible and intangible-of the Virgin Islands Company. The value of the property so transferred shall be fixed at the value shown on the books of the Virgin Islands Company at the date of transfer, subject to any adjustment deemed necessary as a result of the audit required to be made by the Comptroller General under section 105 of the Government Corporation Control Act. (3) All of the interest of the United States in the property known as Bluebeard's Castle Hotel situated in the island of Saint Thomas in the Virgin Islands. The value of the property so transferred shall be fixed at a value approved by the Director of the Bureau of the Budget. (b) The Corporation shall assume and discharge all of the liabilities of the Virgin Islands Company: Provided, however, That such liabilities shall not be deemed to include the balances of relief grants held by the Virgin Islands Company which are invested in the assets and property embraced by paragraph (a) (2) of this section, and such balances shall become part of the investment of the United States in the Corporation. SEC. 11. The Secretary of the Interior, the Under Secretary of the Interior, and the Governor of the Virgin Islands, who are the stockholders of the Virgin Islands Company, a corporation created by ordinance of the Colonial Council for Saint Thomas and Saint John, Virgin Islands of the United States, are hereby authorized and directed to take such steps as may be appropriate to dissolve the said Virgin Islands Company. SEC. 12. Section 5 of the Act of May 26, 1936 (49 Stat. 1372, 1373; 48 U. S. C., 1946 edition, sec. 1401d), is hereby amended to read as follows: "The Virgin Islands Corporation shall pay annually into the municipal treasuries of the Virgin Islands in lieu of taxes an amount equal to the amount of taxes which would be payable on the real property in the Virgin Islands owned by the Virgin Islands Corporation, if such real property were in private ownership and taxable, but the valuation placed upon such property for taxation purposes by the local taxing authorities shall be reduced to a reasonable amount by the designee of the President of the United States as provided in section 1 of the Virgin Islands Corporation Act if, after investigation, he finds that such valuation is excessive and unreasonable, and any such reduction in valuation, together with the findings on which it is based, shall not be reviewable by any court. The Virgin Islands Corporation shall also pay into the municipal treasuries of the Virgin Islands amounts equal to the amounts of any taxes of general application which a private corporation similarly situated would be required to pay into the said treasuries. Similar payments shall be made with. respect to any property owned by the United States in the Virgin Islands which is used for oridinary business or commercial purposes, and the income derived from any property so used shall be available for making such payments: Provided, however, That the payments authorized by this section shall not include payments in lieu of income taxes, capital stock taxes, or franchise taxes." SEC. 13. Section 101 of the Government Corporation Control Act is hereby amended by striking out the words "The Virgin Islands Company" and inserting in lieu thereof the words "Virgin Islands Corporation". SEC. 14. This Act shall become effective on June 30, 1949. SEC. 15. This Act may be cited as the "Virgin Islands Corporation Act". Approved June 30, 1949. EXHIBIT E GOVERNMENT OF THE VIRGIN ISLANDS Mr. GOODRICH LINEWEAVER, OF THE UNITED STATES, Senate Committee on Interior and Insular Affairs, Senate Office Building, Washington, D. C. DEAR GOODRICH: I am enclosing herewith the water information which I requested from the Department of Public Works just prior ro your departure from the Virgin Islands. If there is any other information you desire, I shall be certainly happy to try to secure it for you. Very sincerely yours, Charlie, GOVERNMENT OF THE VIRGIN ISLANDS OF THE UNITED STATES, Charlotte Amalie, St. Thomas, October 9, 1956. Hon. CHARLES K. CLAUNCH, Government Secretary, Charlotte Amalie, St. Thomas, V. I. DEAR MR. CLAUNCH: This is in reply to your letter dated September 13, 1956, requesting information on the water situation for the Senate Committee on Interior and Insular Affairs. FOR ST. THOMAS ISLAND 1. The number of gallons caught during the last fiscal year by public catchments is estimated at 58.5 millions. This includes the water caught by the catchments in the town, the submarine base and Bourne Field and the water caught on the airstrip. 2. The number of gallons caught by roofs into cisterns during the last fiscal year is estimated at 73 million. 3. The cost of operating the potable water system for the last fiscal year was $33,400. 4. The income from the sale of potable water for the last fiscal year was $38,300. 5. The cost of operating the salt water system for the last fiscal year was $40,600. 6. The amount of water imported from Puerto Rico during the last fiscal year was 6,600,000 gallons, and the cost was $9,600 for commercial lifts and $756 for Navy lifts. Very truly yours, RUDOLPH B. GALIBER, Commissioner of Public Works. EXHIBIT F Excerpt from Organic Act of the Virgin Islands (68 Stat. 497), which might be reinstated with provision for transfer of funds to Virgin Islands Corporation as suggested in recommendation 5, page 10, is as follows: (ii) There shall also be transferred and paid over to the government of the Virgin Islands during each of the fiscal years ending June 30, 1955, and June 30, 1956, the sum of $1,000,000, or the balance of the internal revenue collections available under this subsection (c) after payments are made. under the preceding paragraph (i), whichever amount is greater. The moneys so transferred and paid over shall be deposited in the separate fund established by the preceding paragraph (i), but shall be obligated or expended for emergency purposes and essential public projects only, with the prior approval of the President or his designated representative. EXHIBIT G [From the Daily News of the Virgin Islands, January 14, 1957) "CARPEAKE" To Go ON ROUND-THE-CLOCK SCHEDULE The insular tugboat Carpeake and its water barge will do roundthe-clock service in wet and dry weather in the future in an effort to meet the perennial water shortage and to maintain water reservoir levels at maximum peaks, if possible, on a year-round basis. Currently, the water shortage is being keenly felt by hotels, guesthouses, and homeowners, and the United States Navy has agreed to aid in barging potable water supplies to St. Thomas. The Carpeake and its barge was purchased by the territorial government as a stopgap to provide the island with water during drought periods, and was never intended or calculated to be the final solution to the problems of many years' standing. Henceforth, the Carpeake will ply between Puerto Rico and St. Thomas on a year-round basis, and will attempt to keep the water level in the reservoirs at a maximum at all times. This may not be possible during prolonged periods of rainless days, but the facilities will be put into continuing use here, it was announced today. Hotelmen, merchants, and homeowners met Friday with high government officials relative to the current restrictions on water use in hotels, and apparent shortages at wells. The order to put the Carpeake into continuing service is one of the results of this top-level meet, it is reported. |