Zone 5b, Indiana.

I believe that is silk oak (common name)

The tree looks like a Cupressus, I grew C. cashmeriana from seed and it has cones like that but without the funky orange stuff which looks like a fungus.

http://www.gapphotos.com/image...

http://www.flickriver.com/phot...

The fungus resembles Gymnosporangium clavariiforme ..

http://www.biopix.dk/koelle-ba...

http://www.treesforlife.org.uk...

We're on the same track, Janet.

I finally found something that's similar as well - Gymnosporangium speciosum

http://www.forestryimages.org/... commonly found on Junipers. So it's a fruiting body, but not of that tree. The tree is just the host plant.

Thanks for your help.