(1) Chicks fed a diet containing torula yeast developed exudative diathesis which could be prevented by either vit. E or a non-fat soluble substance in casein and in a number of pork tissues. (2) This factor could be made water soluble by acid hydrolysis. It was adsorbed on both anion and cation exchange resins and thus behaved as an ampholyte. (3) An alkaline ash but not an acid ash of pork kidney was effective in preventing exudative diathesis. (4) Selenium as selenite prevented exudative diathesis at 0.3 ppm. Tellurium as tellurite was ineffective at 3 ppm. Anionic arsenic at 10 ppm was inactive.