Looks like crown gall. If that is what it is, tree should be removed and burnt or bagged up and placed in trash. Soil around it will also be liable to be infested by the bacteria causing crown gall.

If you are in the US nearest Cooperative Extension office may be able to help with diagnosis and treatment. For contact information type name of your state followed by the word extension into a search engine dialog box.

Thank you bboy.

I am actually in Ontario, Canada but purchased the tree from WalMart so I am not sure where the tree even came from. I searched "crown gall" and I think you are right from looking at other pictures. Is there anyway to save the tree at all. I have seen Galltrol???

If I can't get rid of the bacterium, back to WalMart it will go.

Thanks again for your help.

No. No way to save the tree.

If possible, return it for a clean, non-diseased tree or for your money back.