Desquamation of the epithelial lining is to be found in every size of bronchial tube where the infection has caused an acute inflammatory reaction. Throughout the pulmonary tissues where the lung is found in some stage of influenzal pneumonia the bronchial tubes, both large and small, are either entirely denuded of the mucosa or show only remnants attached to irregular areas. In the smaller passages dense clusters of desquamated cells are sometimes found within the lumen and indicate the accumulation of a desquamated epithelium obtained from portions of the tubular system in deeper portions of the lung. In the early stages, this desquamation is accompanied by a serous exudate and a certain amount of hemorrhage. Later we find masses of leucocytes which fill up the tube, and though appearing to arise from these structures have in fact largely come from the lung alveoli. Like the larger bronchial tubes the distant ramifications show relatively little cellular reaction in their walls in the early period. It is only when the neighboring lung tissues are extensively implicated in a purulent inflammation that we find a similar exudate occupying the tissues of the bronchioles. Polymorphonuclear leucocytes are equally distributed through the region of the basement membrane, submucosa, muscular coat and outer connective tissue layer. Some grades of degeneration may occupy the inner surface wherein the basement membrane first shows a homogeneous swelling and later a granular degeneration. In a few instances where the small bronchioles have communicated with regions with abscess formation an ulcerating surface occupied the inner boundary.