There appears to be a relation between the development of these fatty streaks and the altered cholesterin metabolism, brought about by pathological change in the blood, adrenal cortex and it may be in the liver. It is under these conditions where these tissues are altered particularly by bacterial toxins in a process of marked cloudy swelling that these intimal fatty streaks arise. Analyses in other diseases have shown that such organic changes lead to a diminution in the cholesterin content of the blood, while at the same time there is neither an increased intake nor an excessive output. It would appear that certain types of tissues and cells are stimulated into activity to become depots for the cholesterin which is not being properly handled by the adrenal and other organs. These cells in the intima which become active in taking up cholesterin-esters are types of endothelial cells whose origin is not entirely clear. In these lesions it is observed that the most superficial cells of the intima do not show an overloading with the fatty compound, but that the cells active in absorption lie at a level slightly beneath the endothelial lining and form colonies as if arising through active division of cells which are present in these parts. Active migration on the part of these cells is not to be observed. They do not appear to wander far from the location where they are found during the acute process. The plaque may enlarge by proliferation and thus enlarge the extent of the involved area. We have failed to find, however, that these cells migrate into the lowermost portion of the intima or into the media. The possibility that these cells do arise from the endothelium lining the blood vessels has, up to the present, not been excluded. If such is the case, the cells appear to adopt a function which is not commonly observed in normal arteries nor present in the endothelial cells lying immediately above the fatty plaque. We have searched various arterial systems in the cases of acute epidemic influenza for inflammatory lesions lying in the adventitia and media. These, up to the present, we have not discovered. Some years ago a number of French authors reported the development of acute non-suppurative influenza lesions in the outer coats of arteries which at times had aneurysm as the outcome. These cases, however, occurred during non-epidemic periods, when the type of influenza of which the patient suffered was quite different from that seen in pandemics. As far as we know none of the reported cases of arteritis and aneurysm occurring under these conditions has shown the presence of the influenza bacilli in the arterial lesion. It is possible that sporadic influenza has complicating secondary infections which are of importance in localizing in the arterial wall.