Summary1.Further studies on the effect of crown gall onFicus elasticashow that buds below the necrotized crown gall and stem developed into branches and leaves.2.The regularity of the development of the dormant buds suggests that axillary buds developed when inoculated with the crowngall organism are not due to the effect of bacteria, but to a localized mechanical stimulation similar to decapitation.3.The complete stimulative effect is inhibited by crown gall and only when complete necrosis of the crown gall and adjacent parts occurs is the mechanical stimulus allowed to act.