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Editorial
May 20, 1957
The Home Journal
Charlotte Amalie, Saint Thomas County, Virgin Islands
What is this article about?
Editorial criticizes the Governor of the Virgin Islands for proposing to sell the government-owned telephone system to private interests influenced by Washington, citing inefficiency claims, past mistakes with electric facilities, subsidies, and a legislative code that would empower rate-setting to force the sale.
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EDITORIAL
The day after that his loyal majority in the legislature attempted to pull a 'fast' one and 'adopt' the Virgin Islands Code, the Governor brought forth his proposal to sell the islands' telephone system to a private firm.
He expects the same cooperation and performance from his rubber-stamps.
The Governor contends that the telephone system is costing the government too much money to operate; that its operation is wasteful and inefficient, and that the money that the government is spending to subsidize the system may be used to better advantage on another project.
Orders to sell the system came straight from Washington. Businessmen who are close to Washington officials see a good thing in the telephone system. Naturally, they do not want to take over the telephone system for their health or out of any love for the people here. They simply want to make a handsome profit.
We made a terrible mistake some years ago when we yielded to pressure from Washington and sold the electric facilities owned by the local people to the Virgin Islands Corporation. Now that federal agency is realizing a tremendous profit from the operation of the electric system. Are we going to make the same mistake with the telephone system?
The telephone operations in St. Thomas is carrying its own weight, but there is need to heavily subsidize the operations in St. Croix. In the meantime, appropriations made for extending the system have been frozen by the Department of Interior as part of a squeeze play to force the islands to dispose of the facilities.
If the code that the Governor's majority tried to pass, is permitted to stand the Governor would have a powerful weapon to use in his efforts to force a sale of the telephone system. The code gives the Governor the power to fix the telephone rates, without approval by the Public Utilities Commission. He may set it so high that people may start clamoring for private enterprise.
The day after that his loyal majority in the legislature attempted to pull a 'fast' one and 'adopt' the Virgin Islands Code, the Governor brought forth his proposal to sell the islands' telephone system to a private firm.
He expects the same cooperation and performance from his rubber-stamps.
The Governor contends that the telephone system is costing the government too much money to operate; that its operation is wasteful and inefficient, and that the money that the government is spending to subsidize the system may be used to better advantage on another project.
Orders to sell the system came straight from Washington. Businessmen who are close to Washington officials see a good thing in the telephone system. Naturally, they do not want to take over the telephone system for their health or out of any love for the people here. They simply want to make a handsome profit.
We made a terrible mistake some years ago when we yielded to pressure from Washington and sold the electric facilities owned by the local people to the Virgin Islands Corporation. Now that federal agency is realizing a tremendous profit from the operation of the electric system. Are we going to make the same mistake with the telephone system?
The telephone operations in St. Thomas is carrying its own weight, but there is need to heavily subsidize the operations in St. Croix. In the meantime, appropriations made for extending the system have been frozen by the Department of Interior as part of a squeeze play to force the islands to dispose of the facilities.
If the code that the Governor's majority tried to pass, is permitted to stand the Governor would have a powerful weapon to use in his efforts to force a sale of the telephone system. The code gives the Governor the power to fix the telephone rates, without approval by the Public Utilities Commission. He may set it so high that people may start clamoring for private enterprise.
What sub-type of article is it?
Economic Policy
Partisan Politics
Infrastructure
What keywords are associated?
Virgin Islands
Telephone System
Privatization
Governor Proposal
Washington Pressure
Economic Subsidy
Legislative Code
What entities or persons were involved?
Governor
Washington Officials
Businessmen
Virgin Islands Corporation
Department Of Interior
Public Utilities Commission
Editorial Details
Primary Topic
Opposition To Selling Virgin Islands Telephone System
Stance / Tone
Strongly Critical Of Governor And Washington Influence
Key Figures
Governor
Washington Officials
Businessmen
Virgin Islands Corporation
Department Of Interior
Public Utilities Commission
Key Arguments
Telephone System Costs Government Too Much And Is Inefficient, Per Governor.
Sale Orders From Washington To Benefit Private Businessmen Profits.
Past Mistake Selling Electric Facilities To Virgin Islands Corporation, Now Profiting Federally.
St. Thomas Operations Self Sustaining, St. Croix Subsidized; Extensions Frozen By Interior To Force Sale.
Virgin Islands Code Would Give Governor Unchecked Rate Setting Power To Push Privatization.