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Mr. CRAMER. I would like to have that also. But the tourist business as a transient business is very important, because we estimate they spend $10 a head.

Mr. GRUENING. The maximum amount of importations would not have to be considered. Not everybody would take it. Perhaps 25 or 30 out of 600 people would buy $100 worth of liquor. But the others would buy handicraft work and spend money on other things while. they are there.

Mr. RICH. If we have to develop the liquor business to get the people to go to the Virgin Islands we might as well give the business to somebody else.

Mr. CRAMER. It would increase our tourist trade by leaps and bounds. That is what I have in mind.

Mr. RICH. You ought to start developing your islands.

Mr. CRAMER. And I think, you can help us in doing it.

Mr. O'NEAL. The danger would be in letting the ships go in just to buy the liquor, so a man could go there and get it and then ship it back, to this country without paying any duty.

Mr. RICH. You would have folk making a trip down there just to buy the rum and then ship it in here.

Mr. CRAMER. All you are doing is giving a small additional advantage. What I have in mind is in connection with goods for personal consumption and getting tourists to come to the islands.

Mr. GRUENING. As these cruises are made out there is not a great deal of difference as between the islands. They have some 25 or 30 ports to choose from Barbados, the Bahamas, and so on; and Cuba and Puerto Rico have the monuments of the ancient Spanish civilization to attract tourists. While we deem the Virgin Islands to be very beautiful there is nothing there that is particularly different to warrant cruise ships stopping there. If we can give them this advantage of this exemption, that would be a factor in connection with practi cally every cruise company. They would say that "here is a port where you can buy something that you cannot buy at any other port on the Carribean."

Mr. RICH. They would run their ships over there and advertise the fact that you could go there and get $100 worth of liquor, and then people would go there and buy the liquor and sell it without paying

any tax.

Mr. CRAMER. But it would have to be for personal use only.

Mr. RICH. If you come in with $100 worth of liquor you personal friends would get the personal use out of it.

Mr. CRAMER. And, of course, Bermuda made a great deal of money out of it last year. And right now one can bring in 1 gallon under the law.

Mr. GRUENING. I think it can be argued that hundreds of people would buy only 1 gallon in Bermuda, Barbados, Havana, and at other places; but they would not buy it there if they could buy a slightly larger quantity in the Virgin Islands and bring it in duty free. So I am not at all sure that you would be injuring the liquor business in the United States, even to the extent that you suggest.

Mr. SCRUGHAM. Are there any further questions to ask of Governor Cramer?

Mr. RICH. I have no other questions. I think he gave us a lot of information which is very vital. And I want to congratulate him on the manner in which he gave us the data from his memory. If he

has given it correctly we congratulate him. If he has not done so, then it is too bad.

Mr. CRAMER. Well, I think it is correct.

AGRICULTURAL EXPERIMENT STATION AND VOCATIONAL SCHOOL

Mr. SCRUGHAM. One more subject in connection with the Virgin Islands the salaries and expenses of the agricultural experiment station and the vocational school. What do you accomplish in these schools? Just give us a very condensed statement. For instance, what crops are being raised? Are they being marketed successfully by virtue of the guidance from the agricultural experiment schools?

Mr. CRAMER. The agricultural experiment station has been established for many years. Previously it was under the Department of Agriculture, but 3 or 4 years ago it was transferred to the Interior Department intact. Since that time it has been under the Interior Department.

The Agricultural Station staff teaches at this vocational school. There are about 24 students there who live in it and practically all of their education is of an agricultural nature.

One of the things the United States Government has attempted to do down there is to attempt to diversify agriculture. It has been a onecrop country, and whenever sugar went down the islands just about had the bottom drop out. We tried to grow tomatoes, with some success, although not with as much success as we would like to have had. We are now attempting to grow garlic and other things that will grow in that area. And especially we are trying to get our homesteaders and our small farmers in the community to raise vegetables which they themselves use for their own subsistence. We import a great deal of that sort of thing, vegetables and fruits, from the British islands surrounding us. We feel that if we can get the local people to raise their own vegetables and fruits, that is that much of the question settled. The agricultural station is constantly working on things of that sort. Just recently I asked them to look into the possible development of the cola nut. Possibly some of you who are southerners know what the cola nut is. You know Coca Cola, and probably all of the essence which goes into that beverage comes in from Trinidad and Jamaica and the British West Indies. We feel that we can grow it. The agricultural school now is simply an adjunct of the station. I think it has had a very beneficial effect in teaching the people new methods of agriculture.

SUGAR PRODUCTION IN HAWAIIAN ISLANDS IN 1936

Mr. RICH. Before the gentleman from Hawaii leaves the room I would like to ask this question. How much sugar did you grow in the islands last year, in 1936?

Mr. KLEINDIENST. I do not pretend to be a specialist on it. I think it was about eight-hundred-and-some-thousand.

Mr. GRUENING. It was 900,000.

Mr. RICH. What allotment did you have to come into this country? Do you know what that was?

Mr. KLEINDIENST. I think their quota was practically the same. Mr. GRUENING. It was 974,000.

Mr. RICH. You say you produced 900,000?

Mr. KLEINDIENST. It was restricted. They are on a quota now. Mr. RICH. How much are we paying from the Department of Agriculture to the people who raise the sugar in Hawaii to keep them from raising sugar?

Mr. KLEINDIENST. This is a subject upon which I am not sufficiently informed at the moment to be able to answer.

Mr. RICH. How much is paid in benefits to keep you from raising sugar?

Mr. KLEINDIENST. I cannot answer that question exactly.

Mr. RICH. I wish you would put it into the record here; also if you were permitted to raise all of the sugar you wanted to raise, whether you would be self-supporting.

Mr. KLEINDIENST. There is no question about that. Hawaii is a very prosperous Territory.

Mr. RICH. What I am trying to get at is why we should not permit the sugar to be raised in Hawaii and in our own islands and try to restrict it from other islands. That is what I want to do-let our own country furnish the material to our own people. I am about fed up on trying to do everything to satisfy the foreign countries when they would stick the harpoon into us at any opportunity. I think we should raise all the things in our own islands that we can produce instead of paying for letting the land lie idle; also how much money you have gotten from the P. W. A. over there the past year.

Mr. KLEINDIENST. Those are figures we would have to obtain. I do not have those figures now.

Mr. RICH. I wish you would put that information into the record. I would like to have those data.

Mr. KLEINDIENST. The W. P. A. has its own representative in Hawaii, Mr. Frank Locey, I understand.

Mr. RICH. I want to find out how much it is costing us to support any projects on those islands when you fellows could be raising your own sugar and come in here and be self-supporting. If you can build up anything to substantiate it I would like to have it in the record. Mr. KLEINDIENST. We will be very glad to do that. (The statement requested is as follows:)

During the calendar year 1936 the Territory of Hawaii produced 1,089,000 tons raw sugar value and shipped 1,033,294 tons to other parts of the United States. The Territory consumed approximately 30,000 tons and 26,000 tons could not be shipped on account of the maritime strike. The benefit payments to the sugar growers of the Territory for the period 1934-35 amounted to $13,323,861.

The Territory of Hawaii could have produced and shipped to the United States an additional 175,000 tons during 1936 had it not been for the quota restriction; also, there were 26,000 tons which could not be shipped on account of the maritime strike, a total of 201,000 tons of sugar removed from the market in continental United States.

During the calendar year 1936 the following grants were made to the Territory of Hawaii by the Federal Emergency Administration of Public Works:

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DEFRAYING DEFICITS IN TREASURIES OF MUNICIPAL GOVERNMENTS IN VIRGIN ISLANDS

Mr. SCRUGHAM. Governor Cramer, there is one more item to be added to the testimony. On page 516, "For defraying the deficits in the treasuries in the municipal governments because of the excess of current expenses over current revenues, for the fiscal year 1938." There is new language in that item, as follows: "To be paid to the said treasuries in monthly installments." What is the reason for this new method of procedure?

Mr. CRAMER. I do not recall what the basis of that is.

Mr. BURLEW. As I recall it, it is so that they can make payments on the expenses in advance of collecting the revenues. Heretofore they have had to wait until the revenues were in and the deficits actually incurred. This permits the municipalities to pay as they go.

PUERTO RICAN HURRICANE RELIEF

Mr. SCRUGHAM. You desire to make a statement on the Puerto Rican hurricane relief?

Mr. GRUENING. Our committee has been operating since the special appropriation of $5,000,000 in 1928 for the relief of the agricultural victims of the devastating hurricane in that year. Unfortunately, another hurricane of almost equal intensity swept the island in 1932. In the previous history of Puerto Rico such severe hurricanes had generally come about 11 years apart. But from 1899, the year after we moved into the islands, until 1928 there had been no such severe hurricanes. There had been minor hurricanes but none of great magnitude. This hurricane in 1928 was probably the most severe that ever struck the island and it destroyed the coffee agriculture, which is one of the three important forms of agriculture in Puerto Rico, and occupies largely the upland region.

Coffee trees take about 4 or 5 years to come into bearing. Congress appropriated this money to be expended in the form of loans to farmers. Unfortunately, as they got their trees planted and they were beginning to bear, the second hurricane largely destroyed the second planting. The result is that not a great deal of money has been collected. We are now in the process of studying in the Department how this Hurricane Relief Commission shall work in with out reconstruction program. This asks for no new money but is simply the expenditure of an unobligated balance which was appropriated.

HURRICANE RELIEF COMMISSION TO MAKE ADJUSTMENTS TO

COMPOSITIONS OF LOANS

Mr. SCRUGHAM. There is some new language in there, "and to make compositions and adjustments in any loans heretofore made, as authorized by Public Resolution 59", and so on.

Mr. GRUENING. The new language is due to the new statute which permits the Hurricane Relief Commission to make adjustments and compositions of these loans because it is obvious that some farmers will not be able to pay them in full. It is for that reason, because of the additional work involved, that additional personnel has been asked. It consists of one additional collector at $1,800 a year. Mr. SCRUGHAM. Is there any question on this hurricane relief?

PRODUCTION OF COFFEE IN PUERTO RICO

Mr. RICH. You brought up a question about coffee. How much coffee can you produce over there?

Mr. GRUENING. The largest amount produced in the history of the island was about 50,000,000 pounds. This year the crop is about 20,000,000 pounds. The diminution has been due to the hurricane damage and also to the loss of markets following that.

Mr. SCRUGHAM. Is there anything further on the Puerto Rica Hurricane Commission?

EQUATORIAL AND SOUTH SEA ISLANDS

We have just one more item. The final item for consideration this afternoon is the appropriation of $30,000 asked for the Equatorial and South Sea Islands.

You partly covered that in your previous statement. Is there anything further to be presented?

Mr. RICH. That is the island that nobody lives on, is it?

Mr. SCRUGHAM. Yes; that is right.

Mr. RICH. Are they the islands that Kincheloe went to?

Mr. BURLEW. No, sir. He went to the Galapagos Island, off the coast of Ecuador.

THURSDAY, APRIL 1, 1937.

ST. ELIZABETHS HOSPITAL

STATEMENTS OF DR. ROSCOE W. HALL, ACTING SUPERINTENDENT, AND MONIE SANGER, ADMINISTRATIVE ASSISTANT TO THE SUPERINTENDENT

Mr. LAMBERTSON. We will take up now the item on St. Elizabeths Hospital, found on page 529 of the subcommittee print, for the support, clothing, and treatment of insane persons, and so forth.

Dr. Hall, do you have any general statement that you wish to make? Dr. HALL. No. I have none, other than the justification, which is as follows:

JUSTIFICATIONS OF ESTIMATES FOR ST. ELIZABETHS HOSPITAL

The appropriation for St. Elizabeths Hospital for the fiscal year 1937 was $1,185,840. This was for 1,805 patients, at $1.80 per day, or $657 per annum, less $45 in order to even up the total. The estimate for 1938 is for 1,750 patients. at $1.80 per day, or $657 per annum, amounting to $1,149,750, or a deduction of $36,090.

The total expenditures during the fiscal year 1936 was $3,461,789. Of this amount there was received from the District of Columbia, $2,183,665; United States Veterans' Administration, $75,556; United States Public Health Service, $85,651; United States Soldiers Home, $24,491; Bureau of Indian Affairs, $44,707; and miscellaneous sources, $51,382. There was transferred to the Department of Agriculture, for examination and testing of food purchases, $640. There was

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