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Page number:263 
Remarks (internal):This species is undoubtedly identical with L. gracilis Hongo. The pendent aggregated hairs on the pileus margin, the rimose pileus and the very small and slender basidiocarp make this small Lactarius very distinctive (Hongo 1957). The rimose-areolate pileus may suggest North American L. rimosellus and areolatus, both taxa having isolated ornamentation not forming a reticulum and context with rosettes (Hesler and Smith 1979). It is very common in southern part of China and also occurs in northern Thailand.
Hongo (1957) reported L. gracilis under Shiia. In southwestern China this species is rather common in evergreen forest dominated by members of Fagaceae. It never occurs in coniferous forests.
Description type:Non-original description 
Description:Lactarius squamulosus Z.S. Bi & T.H. Li, Bulletin of Botanical Research 7(4): 83, fig. 1-5 (1987) Figs. 27-28
= Lactarius gracilis Hongo, Journ. Jap. Bot. 32: 144 (1957)
Holotype: - China. Guangdong Province: Shixing County, Zhangdongshui, Danxingkeng, 5-V-1985, Z.S. Bi & T.H. Li (GDGM 8541)
Type collection in good condition. Pileus 7-10 mm diam., plano-concave, concentrically cracked, unpolished, thin-fleshed, not shiny, grayish ochraceous (close to 4C5-5C5); margin with short aggregate hairs. Stipe 3-4 x 0.1 cm, cylindrical, equal, glabrous, hollow, slightly darker than pileus. Lamellae 1 mm broad, subcrowded, decurrent, concolorous or paler than the pileus.
Basidiospores (Fig. 27) 6.5-7.5 (-8) x (5.5-) 6-7 (-7.5) µm [Q = (1.08-) 1.10-1.17 (-1.21), Q =1.13 ± 0.03] (n=40), subglobose to broadly ellipsoid; ornamentation up to 0.8-1 (1.2) µm high, composed of ridges forming an almost complete reticulum with a few free ends of ridges; plage not or distally amyloid. Basidia 4-spored. Pseudocystidia 3-4 µm thick, some forking. Macrocystidia not found. Lamellar trama filamentous. Pileus trama composed of versiform hyphae, typical rosettes absent. Pileipellis uneven, some places covered with mounds of round and extremely swollen cells 15-25 µm diam, some places only composed of inflated hyphae, continuous layer of epithelium not found, some hyphae with brownish intracellular pigmentation. Stipitipellis a cutis, hyphae 3-10 µm thick, compactly arranged; cortex only a few sphaerocytes present.
The pileipellis structure is difficult to illustrate, since the round cells can only be recognized when the sectioned tissue is heavily crushed. Observation on several fresh basidiocarps of a collection (HKAS 51134) revealed that a continuous layer of round cells (epithelium to hymenoepithelium) formed in the early stage of the basidiocarps and then divided into mounds of round cells when mature (see Fig. 28). This is the reason why no typical epithelium could be found on the type and several other collections (HKAS 23078, 39248, 39353, 41783). The pleuromacrocystidia, if present at all, are extremely scarce as evidenced by my examination of other collections (HKAS 23078, 39248, 39353, 41783). The hairs on the pileus margin, very visible when young, often become shorter or sometimes gone by maturity.
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