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Positions of the Parties - Eastern contends that the terms of the Colonial-Eastern agreement are consistent with the public interest and that the agreement must therefore be approved. In support thereof it is maintained that the consideration provided is fair and reasonable to the user, to the stockholders of both carriers and to the investors in airlines' securities generally; that the agreement was reached as a result of the arms-length bargaining and will not result in a waste of Eastern's corporate assets, increase Eastern's corporate debt or harm Eastern's credit position.

With respect to the question of Eastern's prior control of Colonial, it is Eastern's position that the question of prior control should be recognized only in cases of knowing and willful violations where such violations are continuing at the time of decision.

Finally Eastern maintains that in view of the fact that all employees of Colonial will be retained by Eastern, there is no need for protective labor provisions. However, it does not oppose the imposition of such provisions as have been imposed by the Board in previous cases. Eastern, however, does oppose the imposition of any novel conditions that differ substantially from those heretofore imposed in acquisition cases.