/usr/lib/ruby/1.8/generators/templates/full/stubs/app/controllers/application.rb is in libmerb-slices-ruby1.8 1.0.12+dfsg-4fakesync1.
This file is owned by root:root, with mode 0o644.
The actual contents of the file can be viewed below.
1 2 | class <%= module_name %>::Application < Merb::Controller
end
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