The presence of large amounts of exudate within the bronchi brought these structures into unusual prominence. This was particularly true in the purulent stage of the reaction when beads of sticky pus would well up from the cut bronchioles. We were tempted on a number of occasions to speak of this in terms of bronchiectasis but with the intense inflammatory reaction occupying the bronchial wall and modifying its contour on this account we avoided this diagnosis. In one instance, however, the lesion was unmistakable. This was a case of purulent pneumonia (764) dying on the ninth day of the disease. The distribution of his pulmonary lesions was distinctly lobular, apparently following the course of the bronchial distribution. The bronchi were followed longitudinally and irregular pouchings of the lumen were very apparent. The bronchi had suffered marked inflammatory reaction which had also infiltrated the muscular tissues of the tubes. Goodpasture and Burnett report finding two cases of acute bronchiectasis associated with abscess and ulceration of the bronchi. In our case the bronchiectasis was found bilateral but was more marked in the lower lobes than the upper. The lymphatic channels within the lung tissue are found active in establishing an internal drainage to the neighboring thoracic glands. The lymph vessels were often found filled with leucocytes and variable amounts of serum. During this late stage only a few of the endothelial leucocytes were observed wandering to or from the lung with a load of pigment or cell debris. These wandering endothelial cells, however, appeared to become loosened from their normal situations and in the vicinity of lymphatic nodes or communicating channels where these cells are prone to localize with their carbon pigment, again assumed their spherical form and took on migratory properties entering into the nearby tissues and scattering themselves in the looser structures. It is an interesting point to note that these pigment carrying cells, ordinarily assuming a latent existence when their cytoplasm has been crowded with foreign particles will assume all the activities of migrating cells when the œdema of the tissues alters the physical properties not conducive to a stationary existence. These cells will then be found to enter the lung alveoli, often appearing as cells which have only recently picked up their carbon load. When, however, the conditions of the experiment, that is, the production of an inflammatory œdema in the lung, are produced in the tissues of an individual with much anthracosis, he will, during the period of his pneumonia and for some time during convalescence, bring up a greater number of these cells in his sputum than are ever obtained during the times when the lung is not involved. We are convinced that inflammatory conditions of the lung tend to reduce the total number of latent pigment bearing cells present in the involved tissues, and in