The structure of the electronic energy bands and Brillouin zones for graphite is developed using the "tight binding" approximation. Graphite is found to be a semi-conductor with zero activation energy, i.e., there are no free electrons at zero temperature, but they are created at higher temperatures by excitation to a band contiguous to the highest one which is normally filled. The electrical conductivity is treated with assumptions about the mean free path. It is found to be about 100 times as great parallel to as across crystal planes. A large and anisotropic diamagnetic susceptibility is predicted for the conduction electrons; this is greatest for fields across the layers. The volume optical absorption is accounted for.