In sugar fermentations, the rate of fermentation begins to decrease when the maximal number of cells has been reached. The rate of gelatin digestion, measured by formol titration, continued to increase for several days after the number of cells began to decrease. The endo-enzymes of sugar fermentations are dependent upon the vitality of the cell while the secreted proteolytic enzymes are independent of the cell which secreted them, and continue to accumulate in the medium. Cells grown in presence of glucose do not secrete a proteolytic enzyme. Cells grown without glucose continue to secrete proteolytic enzyme when sugar is added, though the proteolytic activity is retarded by an increase in acidity from the partial oxidation of the sugar. Bacillus subtilis can change into a rough strain with a red pigment which has different physiological properties.