The perishable nature of the nuts of the Chinese chestnut has probably been the greatest drawback to an earlier acceptance of this crop as an adjunct to the horticulture of the Southeast. It has been only in the past few years that enough has been learned about the harvesting and storage requirements to permit the storing of these chestnuts so that they can be marketed in an orderly manner either for eating or for seed purposes. Storage losses through periods up to six months have been held to less than 10% for a mixture of nuts from all the trees at Philema. Storage tests of nuts from individual trees have shown a range in keeping quality from no loss after six months' storage to nearly 100% loss. By culling out the trees producing nuts with a high rate of spoilage under the best storage conditions it should be possible to reduce storage losses to a minimum. Every grower of seedling trees should follow this same process of culling out or topworking trees producing nuts of poor keeping quality if the industry is to grow and prosper, since otherwise the offering of spoiled nuts for sale to the consumer will soon destroy the demand for the nuts. There is no question but that the Chinese chestnut tree is very well adapted to the Southeast. It has proven to be healthy, vigorous, and productive. Yield records at Philema show actual yields of more than 1,000 pounds per acre and potential average annual yields of 1,500 or more pounds per acre are not out of reason. In 1947, in the Brown tract at Philema, if all the trees that bore nuts had been collected into a solid block the yield per acre would have been nearly 2,500 pounds. Crowding of the trees in the Brown tract is becoming serious at 11 years of age with a 25 x 25 foot spacing. Alternate-year bearing is becoming apparent and the stand of trees must be thinned immediately. Because of such potential yields and because rather extended storage of nuts of varied keeping quality is now economically possible the future of the chestnut industry in the Southeast is very promising. The selection and propagation of selected seedlings is desirable as a means of advancing the industry at a more rapid rate. The propagation of selected seedlings offers a problem because of lack of compatibility between some stocks and scions. Since the chestnut is almost completely cross-pollinated it may be necessary to develop special plantings of two or three selections as a source of seed nuts for the production of stocks. Such plantings might possibly produce seedlings of quite uniform and desirable characteristics, but this prospect, is not very promising. Certainly, the evidence points to the conclusion that scion selections must be worked on stocks of the same strains if incompatibility is to be held at a minimum.