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would bs to have merchant constructed abroad, as suggested by | Mr. Kennedy in hia letter to Mr. Roosevelt yesterday. But on this point the President said he had talked with members of Congress to obtain their reaction, and that while they agreed that this was the practical solution of the problem, | none could afford to vote for such: c: Proposition, lathan nF ienati we In his letter of resignation Mr. Kennedy said that the Un ited States would have to take ‘‘some exceed- ingly strenuous measures" if it was to preserve « merchant marine fleet of anything like its present propor- tions in either foreign or domestic | trade, Mr. Kennedy told Mr. Roosevelt that ‘“‘the employer-employe rela-! tionship must be stabilized if Amer- | ‘lean shipping is to survive’ and! that the marine labor question was “one of the most disturbing prob-; lems with which the commission has been confronted.”' Second only to the Jabor problem in Sts effect on the difficulty of nbintaining an adequate mercNant niarine was the high cost of biild- f ships in this country as refct- by bids recently submitted, gaid Mr. Kennedy. Recent increases inj re costes had presented the ifec, tay with a real dilemma, he added, bet said the Maritime Commisgion wadoubtedly would work ouf a’ sqution in the near future. | «quwdiustize Reed Gives the Oath _d Mr. Kennedy was received by the President immediately after the press conference and the oath as Ambassador was administered to Mr. Kennedy by Supreme Court Justice Reed. In a letter accepting Mr. Ken- nedy’s resignation as maritime chairman the President expressed appreciation of Mr, Kennedy's serv- ices. The President's letter, addressed to bees Aane Tan '* maneds my Gtar soe, TeaG: “Ht is with real regret that IT ac- cept your resignation as chairman of the United States Maritime Com- mission, This. is tempered by the fact that you are staying in the. family and taking over a new as-| aignment. | “T want to take this occasion to express my appreciation, so gener- ally shared, for the fine work you have done. In both of your im- portant government assignments you have maintained your justhy earned reputation of being a two-| flated, hard-hitting axercutive, 28tlo, SSPa-Mitiing SASCutt “It may gratify you to know that ig going to your new post yeu carry with you our confidence agd! ch wishes.” “af a