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Similar issues were before the Board in the United-Western Acquisition Case, supra. In its decision in that proceeding the Board stated that United would not be permitted to include in its investment base for rate purposes any of the costs attributable to intangibles or to the cost of fixed assets in excess of the book value as carried on the records of Western. There is no reason to depart from that policy in this proceeding. Accordingly, if the agreement in issue is approved and consummated Eastern should be advised that for rate-making purposes the value of the assets acquired from Colonial to be included in its rate base should be limited to the book value of such assets as of the date of the acquisition.

There has been no contention that Colonial's stockholders would be adversely affected by the acquisition, and the record clearly demonstrates that such contention could not be justifiably advanced. As to Eastern's stockholders, they will retain a higher percentage of a surviving enterprise than they would have under the prior agreement under which the Board did not find that the acquisition would adversely affect Eastern's stockholders.  

Insofar as the public is concerned, there is no indication that it would be adversely affected by the acquisition. It is the established policy of the Board to allow in the acquiring carrier's rate