Evening star., 1955-07-15
By DONALD B. HADLEY

Bellanca Aircraft Corp. has de.
cided to cancel a deal to acquire
National Electronics Laboratories
Inc. of Washington through ar
exchange of stock, President
Frank C. Mallinson of the latter
firm announced today.
Il have been informed by a tor
official of Bellanca that they dc
not intend to comply with terms
Of the contract, which was tc
have been completed on June 30
said Mr.. MallinSon.
1--WE have been given to under
stand they have decided to null
ify the contract and we are dis.
cussing with our attorney plans
to take legal action against
them"
Mr.. Mallinson said he has beer
told Bellanca decided not to go
through with the deal because il
necessitated the raising of work.
ing capital for operation and ex-
pansion Of the Washington firm
Working Capital Needed
He said the only reason the
Washington company was willing
to merge with the larger company
was to get working capital
needed to develop commercial
products for which most of the
engineering work already had
been completed. Around $780,
900 of capital needs were in
volved, it is understood.
The original announcement last
May % said National Electronics
would become a subsidiary OF
Bellanca and Mr.. Mallinson
would remain in charge.
With plant and offices at 1713
Kalorama road NV, National
Electronics manufactures COM
munications, radar and special
lied aviation test equipment.
While a large proportion of
its sales are to the Government.
its leading commercial product.
the VEIF mobile transmitter-
receiver called the "Utiliphone, !"
is known at airports from coast
to coast.
Loans at New Peak
Outstanding loans of IL re-
serve member banks here rose
to another new peak of $470.-
$4,000 on July 6. with gains of
20.3 per cent from a year earlier
and rs per cent from five years
earlier, the weekly report from
the Federal Reserve Bank of
Richmond disclosed today.
The latest total was SO ,578, 900
from $467 ,256,00 a week earlier
and compared with $3.50, ,654 900
on the like 1854 date and $267,-
100000 on the corresponding
1850 date.
Commercial loans of $685.
100000 also set new record,
with gains of 28.8 per cent in
the year and 88.5 per cent in five
years. They were up $2,906, 900
from $203 100000 a week earlier
and compared with $159,978, 900
on July 7 last year and $l08,-
772,000 on July S, 1850.
Real estate loans totaled $l33,-
100000, up $1,443,0 900 in the
week, 9 per cent above a year
ago and 40.6 per cent higher
than five years ago. Other loans,
mostly consumer loans, amounted
to 1922, Sol 900, down $1,766, ,00O
IN the week, but % per cent
higher in the year and 97.7 per
cent higher in five years.
ACF Plants of Area Busy
Employment at two division of
ACF Industries, Inc, in this
area has risen sharply as pro-
duction climbs, the company's
annual report said yesterday.
With more than SIT million
Of untitled orders, Engineering
& Research Corp. division at
Riverdale is working more than
1900 persons. More than 80
per cent of the orders are for
the Armed Forces.
ACF Electronics at Alex
andria. which started in 1854
with IS employees, now has more
than 800 and expects the total
to go above 500 by this years
end.
Company sales in the year
ended April 80 totaled $190,774,-
346. a drop of % per cent from
a year earlier. Net income of
$6,885, ,320 was down IL per cent
and was equal to $6.62 a share.
Independent Stores Gain
Sales of some 400 independent
retailers in the Washington Met
ropolitan area were 8 per cent
ahead of a year ago in the first
five months of this year. the
Census Bureau reported today