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factors, including a saving in subsidy requirements, were present to warrant approval of the acquisition agreement. The President, however, determined that the agreement should be disapproved because of Eastern's unlawful acquisition of control of Colonial. 3/ Accordingly, we entered an order disapproving the agreement. 4/

Shortly thereafter, the Board instituted a proceeding against Eastern requiring that carrier to show cause why it should not be directed to terminate its control of Colonial and why it should not be directed to cease and desist from acquiring any control of Colonial without prior approval of the Board in full compliance with the Act. 5/ Nation Airlines, Inc. (National) which had vigorously opposed approval of the acquisition agreement in the original acquisition case, was given leave to intervene in the show cause proceeding (sometimes referred to herein as the Control Case). Colonial was also permitted to intervene. After a dull public hearing, Examiner Edward T. Stodola, who in the original acquisition case had found that Eastern had acquired unlawful control of Colonial, found on the basis of the record developed in the Control Case that Eastern's control of Colonial had been terminated. Accordingly he recommended that the proceeding be

3/ Inasmuch as Colonial is the holder of several certificates for routes which involve service between points in the United States and in foreign countries, and since the Easter-Colonial acquisition agreement contemplated the transfer of such certificates to Eastern, the Board's order relating to the transfer of these certificates was subject to Presidential approval under Section 801 of the Act. 

The new acquisition agreement currently before us for approval also contemplates the transfer of these certificates. Accordingly, as required by Section 801, a copy of the joint application for approval of the acquisition agreement was submitted to the President of the United States prior to the commencement of the public hearings in this proceeding.

4/ Eastern-Colonial Acquisition Case, Order No. E-8136, adopted February 26, E-8446, adopted June 17, 1954.

5/ Order No. E-8160, adopted March 9, 1954.