THE annual report of the Director of the Mellon Institute for the year March 1, 1937, to March 1, 1938, refers to the interest aroused in hydroxy-ethylapocupreine, a contribution of the Institute's department of research in pure chemistry. Semi-plant scale operations have been undertaken to provide material for more extensive clinical trials, and other new drugs prepared in the Institute have received clinical trials in cases of pneumonia and pneumococcic empyema. Research on alkyl, hydroxyalkyl and other derivatives of apocupreine is being actively pursued with the object of finding more efficient antipneumococcic drugs. Studies in the treatment of strepto-coccal and pneumococcal infections have been continued, and research on the variability of the tubercle bacillus has reached a point where it appears to be of some importance in diagnosing anomalous aspects of lung tuberculosis in the benign stages, an advance which may make it possible to use preventive and hygienic measures in time to stop development into the classical and more fatal forms. Seventy-two applied science programmes or fellowships were in operation in 1937-38, new fellowships on amines, anthracite industries, chemical hygiene, cotton, dielectrics, proteins and tar properties commencing operation in the year. Valuable contributions to the improvement of industrial health have been made by the attention given to the medical, engineering and legal aspects of the problems involved. A multiple fellowship on commodity standards has a programme directed to establishing standards for nearly 300 items of staple merchandise so as to provide known values for the consumer. The Cotton Research Foundation is investigating the chemical and physical properties and uses of the whole cotton plant. A new blue print paper has been developed, and a new resin, “Raolin,” is also under development. A multiple fellowship on organic synthesis has been concerned with the preparation, properties and uses of a wide range of amines, solvents, intermediates and resins, including various alkylene alkylol and heterocyclic amines, propylene glycol derivatives, silicon and titanium esters of higher alcohols and vinyl resins for protective coatings.