Evening star., 1934-10-10
ICkeS to Decide Whether
P. w. A. or Capital Will
Pay Royalties.
RIGHTS OF COMPANY
PAYMENTS UPHELD
Activated Sludge, Inc, Decision
Against Milwaukee Is Sustained
by Refusal for Review.

Further delay in executing the Pub
lie Works Administration contract CIV
ing the District S8,000,000 with which
to build a sewage disposal plant was
foreSeen today as a result of ruling
by the United States Supreme Court
which upholds the right of Activated
Sludge, Inc, to collect millions in
royalties from municipalities using its
patented process Of sewage treatment.
This type of plant was decided upon
for the Districts proposed project at
Blue Plains. Patents held by Activated
Sludge. Inc, are believed to require
the payment Of more than $780, 900 in
royalties from the District if the plant
is completed within 20 months, before
the patent rights expire.
First Case to Arise.
Secretary IckeS must decide as a re-
suit of the Supreme Court ruling,
whether the royalty payments by the
District should be made from the
100000 P. w. A. allotment or
whether the payment shall be financed
independently by the District munich
pality. 1t is the first case to arise
within his jurisdiction since the Su-
preme Court handed down its ruling
last Monday.
The District Commissioners and
Corporation Counsel E. Barrett Pretty
man were studying the court ruling
today, as were officials of the P. w. A
to determine its effect upon the pend
ing sewage disposal contract. The
Commissioners. no doubt. will with
hold their signature from the contract
until Secretary Ickes decides on the
question Of payment. Ickes returned
to Washington today from a Western
trip and was expected to give the
issue his immediate attention.
The Public Works Administration
has allotted about Sl3O.OO0.000 for
similar sewage disposal plants in cities
throughout the country P w. A en-
gineers had recommended the Activat-
ed Sludge process as against a So
called chemical process in every in
stance. it was said. Millions of dollars
in royalties are involved under the
ruling of the Supreme Court. which
was made in connection with the City
of Milwaukee.
The Court of Appeals for the sew
enth circuit had handed down a de-
ciSion against the City of Milwaukee
which had built a sewage disposal
plant, requiring the payment OF royal
ties to Activated Sludge, Inc. Newton
D. Baker, former Secretary Of War
was one Of the counsel for the city
in petitioning the Supreme Court for
a writ of certiorari. The Supreme
Court. in denying the writ, refused to
review the decision Of the lower court
The effect of this ruling is the same
as affirming the decision of the ap-
pellate court against the Milwaukee
authorities The subject of the valid
ity and the scope of the patents in
volved is a matter of great public in
terest.
Other Cities Involved.
Activated Sludge. Inc, has brought
suit against municipalities or Sewage
Boards of Chicago, Cleveland, Indian
apolis and scores of others. 1t is es-
timated that over 125 public bodies
including the Federal Government
States, municipalities and public insti-
tutions throughout the country utilize
the Activated Sludge process for the
disposal of sewage
The patent rights involved in the
Districts proposed project at Blue
Plains have long been a bone of con-
tention inthe negotiations leading UP
to Secretary Ickes' action in signing q
new contract last Monday. He has
insisted that the project be completed
within 20 months or by July l, 1886
The Commissioners had not fully
determined how this speed up sched-
ule would affect the patent rights in
volved. Three representatives Of the
Guggenheim interests, which control
the chemical process, suggested as an
alternate, were in conference today
with Col. Daniel I. Sultan, District
Engineer Commissioner.