The mechanism by which acetate and related compounds are oxidized by fungi has been a subject of discussion for many years (Foster, 1949; Chain, 1956). In 1919 Raistrick and Clark suggested that citrate might be synthesized by a condensation of oxalacetate and acetate. Subsequently, various organic acids were shown to accumulate when two-carbon compounds are metabolized by washed fungal cells; for example, Chrzaszcz et al. (1932) indicated that acetate, glycolate, malate, succinate, fumarate, citrate, and oxalate were produced when ethanol was added to washed mycelial pads of various species of the genus Penicillium. For years some of these organic acids were thought to be intermediates in the oxidation of carbohydrates to C02 and water. After studies with animal tissues had revealed the importance of the tricarboxylic acid (TCA) cycle as a mechanism for terminal oxidation (Krebs, 1940), attention again was focused on the role of this pathway in the fungi. Chain (1956) offers a comprehensive review of work in this field. Most of the data mentioned in Chain's review show that citrate is formed via a C2 plus 04 condensation, most likely as is visualized by the 1 Supported by the U. S. Atomic Energy Commission, Eli Lilly and Company, and the Purdue Research Foundation.