Evening star., 1935-09-20
BY ]. RUSSELL YOUNG,

HYDE PARK, N. Y, September 90
President Roosevelt announced here
today that Joseph P. Kennedy has
resigned as chairman Of the Securities
and Exchange Commission to become
effective next Monday.
In making this announcement. the
President said he had agreed some
time ago to Kennedy's request to be
permitted to retire. The President
said Kennedy had an understanding
when he first accepted the chairman
ship of the S. E. C. that he could
get out in about year.
Kennedy, who proposes returning to
the brokerage business, visited the
President here personally about 10
days ago. and it is understood he
then obtained the Presidents consent
to his proposed resignation. Since
then Kennedy has written formal
letter of resignation to the President.
which, along with one to be written
by the President later today formally
accepting it, will be made public
tomorrow.
Will Sail Next Tuesday.
According to the Presidents advice
Kennedy will sail from New Yor.-
next Tuesday for vacation in Europt
before returning to Wall Street.
While the President accepted Ken
nedy's resignation. it is known that hc
was especially anxious to keep this
young official of the New Deal at the
head of the Securities Exchange Com
mission. The loss of Kennedy is
looked upon as a real blow to the
Presidents plans, particularly so. in
asmuch as he was counting on Ken
nedy to put into successful operation
the holding companies act. which was
passed at the last session Of Congress
and which was turned over to the
S. E. c. to administer. When asked
today if he had any one in mind as
Kennedy's successor. the President
said he Gid not.
There is every reason to expect that
the President, in his letter of accept
ance to Kennedy. to be made public
tomorrow. will express pride in Ken
nedy's work.
Business Feared Act.
When the securities exchange act
was passed business was fearful of the
consequences. 1t was regarded with
diStruSt and as a possible menace.
There was unmistakable animosity to
it and to those intrusted with its ad-
ministration.
Much concern was felt. too, in finan-
cial circles when the President selected
Kennedy. youthful but highly success
full stock market operator, to head the
S. E. c. But, during the little over
year the S. E. c. has been in operation,
virtually all the fears and diStrust
have passed. and instead of animoSity
toward Kennedy there has developed
a genuine feeling of confidence and
respect
Mr.. Kennedys resignation had been
expected for some time. 1t has been
known for many months that Kennedy
was anxious to get back to the broker
age business. The understanding is
that when he returns from Europe he
will become a partner in brokerage.
or bond selling house.
With only a short time remaining
before leaving for Washington, the
President knuckled down to full day
of labor in hopes of clearing his desk
and being ready to depart Sunday
night. Especially anxious TO whip into
shape his work-relief program, he had
among his numerous callers today the
Governors of three States. as we'll as
the works progress administrator of
New York State.
McNutt Among Callers.
The Governors with whom the Pres
ident conferred today are Theodore
Green. Rhode Island; Louis Brann,
The other work relief conferee on
the Presidents list is Lester w. Her
zog of New York.
In the absence of any indication
from the Summer White House re-
lating to the visit of this group, 1t IS
expected that the three Governors, at
least, had journeyeG to Hyde Park
with one common opjective-to get
share of the S1,225,OO0O00 relief
money known to be still in hand and
unallocated.
Among the Presidents other callers
today are Judge Irving Lehman,
brother of New York'S Governor and
close friend of the President; John
Studebaker. Federal commissioner of
(See KENNEDY, Page 81