It has been well established that fatty substances are produced by various microorganisms, notably by certain yeasts and filamentous fungi as well as by the tubercle bacilli and a species of Azotobacter. The tubercle bacilli and other acid-fast bacteria contain from 20 to 40 per cent lipid on the dry-weight basis (Anderson, 1939). Even some of the common non-acid-fast bacteria may contain considerable amounts of lipid. Escherichia coli, Staphylococcus albus, and Bacillus megatherium were found to contain from 8 to 40 per cent lipid when grown on certain media (Larson and Larson, 1922). More commonly, however, the lipid content of bacteria has been reported to be below 10 per cent. The results of Gorbach and Sablatnog (1934a, 1934b) may be cited in this connection. They found that whereas the lipid content of Pseudomonas aeruginosa was 0.6 per cent when grown on meat extract agar at pH 7.0, there was as much as 3.9 per cent lipid when the organism was cultivated on mannitol. Anderson (1939) reported 2 to 6 per cent lipid in cells of Phytpmonas tumefaciens and 7 per cent in Lactobacillus acidophilus. Among the bacteria, Azotobacter indicum is unique in lipid production (Starkey and De, 1939). The cells of this bacterium commonly contain two large fat globules, one at each end of the rod-shaped cells, and as much as 50 per cent of the cell volume is occupied by the fat globules. The lipid content of filamentous fungi ranges between 1 and 40 per cent, and differs with the various cultures and the conditions under which they are grown.