The process of formation of secretory granules has been studied in the liver-cells of the slug, Anadenus altivagus, in fixed preparations. The following conclusions have been drawn.
1. The secretory granules, which are non-lipid in nature, are formed by direct transformation of the lipid granules. The lipid granules assume a duplex structure during this transformation.
2. The lipid granules, which are densely packed at the basal end of the cells, seem to arise from the tip-granules of the mitochondria.
3. The mitochondria are fibrillar and each of them shows one prominent granule at each tip. The mitochondria as well as their tip-granules are stainable with iron haematoxylin after Regaud, whereas the lipid granules are not.