The Birmingham age-herald., 1914-01-04
James Mitchell Is Inclined
to Be a Little Pes
simistic
MR.. WASHBURN TO
REMAIN AT POST
Rumor That He VIII Resign I'm
founded, Says Mitchell--No New
Investments Until Some Re-
turn Is Received

The construction in this state of the
plants of the Alabama Power company
cost nearly double what was estimated
and on that account there is some pes
simism in the ranks of that concern. For
the first time in Is months during which
time he has been a very frequent visitor
to this city. James Mitchell. from Sper-
ling & Co, of London, who financed the
power company here. was found to be
pessimistic The fact that such a large
sum of money was tied up at Lock T.
in transmission lines in property bought,
in franchises, and in the Gadsden plant
without any very great earning capacity
not to mention the street railway proper
yesterday to appear somewhat fretfu.
over the situation. Not that he was of
the opinion that general business condi-
tions were unfavorable, but he frankly
stated that he was very much surprised
over the huge cost of the work and said
that the money already spent was about
twice the amount originally calculated.
Has Been Here Week
Mr. Mitchell did not attribute the ex
cessive costs to any one reason. but sim
ply stated that fact as such. Mr.. Mitchell
has been here nearly week. He has
been almost constantly at Ocampo or
at the local offices. He has studied the
from every angle and it is be-
lieved that the English visitor will carry
back to London definite facts about the
Ocampo situation. He announced with
bo
obstruction here until the capital invest
ed in Alabama was earning some money
and a showing could be given those who
furnished the funds for the construction
at Ocampo.
Mr.. Mitchell in a conversation with an
A Age-Herald reporter said that the rumor
10 the effect that Frank Washburn, the
newly elected president, was to resign and
ieturn to Nashville, was baseless. That
report originated when w. Winans Free
nan departed, it being understood among
a few of those close to Mr.. Washburn
and members of his staff that the admin
stration of Mr.. Washburn was under
taken only as a temporary matter and
would cease January 1, 1914.
Mr.. Washburn, l am glad to say, viii
stand by u.s. said Mr.. Mitchell yester-
day. "He will remain and assist in work.
ing out this proposition. We will not be
able to bring electricity here until per-
haps May /. The electrical engineers say
it will be earlier, but some special ma
is being made which will delay
us that long, l think. We will be ready in
March to serve patrons over 14f of the
lines. Those cities will in
clude Alexander City, Pell City, and such
places. We have practically all of our
transmission work completed. There are
a few small stretches that are yet to be
filed in by reason of delays incident to
proceedings. We hope to
serve all those who attach to our lines
by March l at the latest, although / am
not sure when the power will be avail
able. There are usual delays after ones
experts announce certain day.
Surprised at Cost
'At this time affairs are moving alone
well. However. am very much surprised
that the cost of our work here has been
so heavy. The dam at Ocampo and the
other work has cost us about twice al
much as we calculated upon. Many prop
ositions, [ suppose, contribute to that
overlapping OF costs. I am not so very
hopeful over the situation, and am in
clined to be cautious until our huge In
lOCdllN DeSl1lS TO earn SOME
money. That will be some time in the
summer.
LAS to the contract between our COM
pany and the Birmingham Railway Light
and Power company, that is all arranged.
| have not been told whether Mr.. Wash
burn has signed the actual contract or
not. 1t may be that he has. or 1t may be
that the actual contract has not been
signed. Be that as 1t may, the two COM
paries are going to serve one another
and the contract is certain. l have no
doubts about our serving this company.
We cannot go into the retail business and
must serve our patrons through distribut-
ing companies. In the first place, we have
no staff for such detail work as retailing,
and again we have no time for taking up
that work.
"Our company has no further plans here
at this time. When the investment we
have here starts to earning money we will
perhaps take up other problems, but at
this time we have nothing in view l
have very little fear about the future of
business generally"
Mr.. Mitchell will leave for New York
tonight.