Evidence that erythrocytes are phagocytized and dismantled by hepatic parenchymal cells in the newborn rabbit is presented. It is concluded that in these cells iron is recovered from disintegrating erythrocytes, synthesized into ferritin and released into the hepatic cell cytoplasm and into the biliary passages. These conclusions are based upon observations on the distribution of material giving the Prussian blue reaction in sections of liver as revealed by the light microscope and upon electron microscopic images of particles displaying the size, density and configuration of the ferritin molecule.

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