UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           FORM 10-QSB

[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

             For the Quarter Ended September 30, 1999

                                OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

     For the transition period from            to

                  Commission File Number 0-24633

                         RAKO CORPORATION
(Exact name of small business issuer as specified in its charter)

            Idaho                           91-0853320
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)          Identification No.)

               3256 Agate Court, Boise, Idaho 83705
             (Address of principal executive offices)

Registrant's telephone no., including area code:  (208) 336-3036

     Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes   X   No

               APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.

           Class               Outstanding as of September 30, 1999

Common Stock, $.001 par value              1,025,030



                        TABLE OF CONTENTS

Heading                                                                   Page
                  PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements . . . . . . . . . . . . . . . . . .          3

          Balance Sheets -- September 30, 1999 and
            December 31, 1998. . . . . . . . . . . . . . . . . . .          4

          Statements of Operations -- three and nine
            months ended September 30, 1999 and 1998 . . . . . . .          5

          Statements of Stockholders' Equity . . . . . . . . . . .          6

          Statements of Cash Flows -- three and nine
            months ended September 30, 1999 and 1998 . . . . . . .          8

          Notes to Financial Statements  . . . . . . . . . . . . .         10

Item 2.   Management's Discussion and Analysis or
            Plan of Operations . . . . . . . . . . . . . . . . . .         11

                    PART II. OTHER INFORMATION

Item 1.   Legal Proceedings. . . . . . . . . . . . . . . . . . . .         13

Item 2.   Changes In Securities. . . . . . . . . . . . . . . . . .         13

Item 3.   Defaults Upon Senior Securities. . . . . . . . . . . . .         13

Item 4.   Submission of Matters to a Vote of
            Securities Holders . . . . . . . . . . . . . . . . . .         13

Item 5.   Other Information. . . . . . . . . . . . . . . . . . . .         13

Item 6.   Exhibits and Reports on Form 8-K . . . . . . . . . . . .         13

          SIGNATURES . . . . . . . . . . . . . . . . . . . . . . .         14



                              PART I

Item 1.   Financial Statements

     The following unaudited Financial Statements for the period
ended September 30, 1999, have been prepared by the Company.















                         RAKO CORPORATION


                       FINANCIAL STATEMENTS

             September 30, 1999 and December 31, 1998











                        RAKO CORPORATION
                 (A Development Stage Company)
                         Balance Sheets

                             ASSETS

                                        September 30,    December 31,
                                             1999           1998
                                         (Unaudited)

CURRENT ASSETS

 Cash                                    $     -         $     -

  Total Current Assets                         -               -

  TOTAL ASSETS                           $     -         $     -


         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

 Accounts payable                        $    2,750      $     -

  Total Current Liabilities                   2,750            -

STOCKHOLDERS' EQUITY (DEFICIT)

 Common stock at $0.001 par value; authorized
  50,000,000 common shares and 20,000,000
  preferred shares; 1,025,030 common shares
  issued and outstanding                      1,025           1,025
 Additional paid-in capital                  95,861          93,646
 Deficit accumulated during the
  development stage                         (99,636)        (94,671)

  Total Stockholders' Equity (Deficit)       (2,750)           -

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY (DEFICIT)        $     -         $     -








The accompanying notes are an integral part of these financial statements.



                        RAKO CORPORATION
                 (A Development Stage Company)
                    Statements of Operations
                          (Unaudited)

                                                                       From
                                                                   Inception on
                               For the               For the        October 9,
                         Three Months Ended     Nine Months Ended  1968 Through
                            September 30,          September 30,   September 30,
                           1999       1998       1999        1998       1999

REVENUE                 $   -      $   -      $   -       $   -      $   -

EXPENSES                     250        793      4,965       1,312     99,636

NET LOSS FROM
 OPERATIONS             $   (250)  $   (793)  $ (4,965)   $ (1,312)  $(99,636)

BASIC LOSS PER SHARE    $  (0.00)  $  (0.00)  $  (0.00)   $  (0.00)





























The accompanying notes are an integral part of these financial statements.


                         RAKO CORPORATION
                  (A Development Stage Company)
           Statements of Stockholders' Equity (Deficit)
   From Inception on October 9, 1968 Through September 30, 1999

                                                                       Deficit
                                                                     Accumulated
                                                          Additional  During the
                                       Common Stock        Paid-in   Development
                                    Shares      Amount     Capital      Stage

Inception on October 9, 1968           -       $   -      $    -       $   -

Common stock issued for mining
 claims recorded at predecessor
 cost of $0.00 per share            400,000         400        (400)       -

Common stock issued for services
 at $0.15 per share                 400,000         400      59,600        -

Common stock issued for cash
 at $0.45 per share                  14,734          15       6,615        -

Costs associated with stock offering   -           -           (994)       -

Common stock issued for mining
 claims recorded at predecessor
 cost of $0.075 per share           333,334         333      24,667        -

Net loss for the period ended
 December 31, 1995                     -           -           -        (90,636)

Balance, December 31, 1995        1,148,068       1,148      89,488     (90,636)

Cancellation of common stock       (123,024)       (123)        123        -

Fractional shares adjustment            (14)       -           -           -

Capital contributed for payment of
 expenses                              -           -          2,461        -

Net loss for the year ended
 December 31, 1996                     -           -           -         (2,461)

Balance, December 31, 1996        1,025,030       1,025      92,072     (93,097)

Net loss for the year ended
 December 31, 1997                     -           -           -           -

Balance, December 31, 1997        1,025,030       1,025      92,072     (93,097)

Capital contributed for payment
 of expenses                           -           -          1,574        -

Net loss for the year ended
 December 31, 1998                     -           -           -         (1,574)

Balance, December 31, 1998        1,025,030   $   1,025   $  93,646    $ 94,671)





The accompanying notes are an integral part of these financial statements.



                         RAKO CORPORATION
                  (A Development Stage Company)
     Statements of Stockholders' Equity (Deficit) (Continued)
     From Inception on October 9, 1968 Through June 30, 1999


                                                                      Deficit
                                                                     Accumulated
                                                        Additional    During the
                                         Common Stock     Paid-in    Development
                                      Shares     Amount   Capital      Stage

Balance, December 31, 1998          1,025,030   $ 1,025   $ 93,646    $ (94,671)

Capital contributed by shareholder
 (unaudited)                             -         -         2,215         -

Net loss for the nine months
 ended September 30, 1999 (unaudited)    -         -          -          (4,965)

Balance, September 30, 1999
  (unaudited)                       1,025,030   $ 1,025   $ 95,861    $ (99,636)






























The accompanying notes are an integral part of these financial statements.



                           RAKO CORPORATION
                    (A Development Stage Company)
                       Statements of Cash Flows
                             (Unaudited)
                                                                       From
                                                                    Inception on
                                      For the           For the     December 31,
                               Three Months Ended Nine Months Ended 1985 Through
                                   September 30,     September 30, September 30,
                                   1999     1998     1999      1998      1999

CASH FLOWS FROM
 OPERATING ACTIVITIES

 Income (loss) from operations   $ (250)  $ (793) $ (4,965) $ (1,312)  $(99,386)
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
   Stock issued for services       -        -         -         -        60,000
   Increase (decrease) in accounts
    payable                         250     -        2,750      -        27,500

    Net Cash Used by Operating
     Activities                    -        (793)   (2,215)   (1,312)   (11,886)

CASH FLOWS FROM
 INVESTING ACTIVITIES              -        -         -         -          -

CASH FLOWS FROM
 FINANCING ACTIVITIES

 Issuance of common stock for cash -        -         -         -         5,636
 Expenses paid on Company's
  behalf                           -         793     2,215     1,312      6,250

    Net Cash Provided by
     Financing Activities          -         793     2,215     1,312     11,886

INCREASE (DECREASE) IN CASH
 AND CASH EQUIVALENTS              -        -         -         -          -

CASH AND CASH EQUIVALENTS
 AT BEGINNING OF PERIOD            -        -         -         -          -

CASH AND CASH EQUIVALENTS
 AT END OF PERIOD               $  -     $  -      $  -      $  -      $   -






 The accompanying notes are an integral part of these financial statements.



                             RAKO CORPORATION
                      (A Development Stage Company)
                   Statements of Cash Flows (Continued)
                               (Unaudited)

                                                                       From
                                                                    Inception on
                                     For the            For the     December 31,
                               Three Months Ended Nine Months Ended 1985 Through
                                   September 30,     September 30, September 30,
                                   1999    1998       1999    1998       1999


Cash Paid For:

 Interest                        $   -     $  -     $   -    $   -     $   -
 Income taxes                    $   -     $  -     $   -    $   -     $   -

SUPPLEMENTAL SCHEDULE OF
NON-CASH FINANCING ACTIVITIES

 Stock issued for services       $   -     $  -     $   -    $   -     $ 60,000
 Stock issued for mining claims  $   -     $  -     $   -    $   -     $ 25,000
 Expenses paid on the Company's
   behalf by a shareholder       $  2,215  $   793  $  2,215 $  1,312  $  6,250

























 The accompanying notes are an integral part of these financial statements.



                        RAKO CORPORATION
                 (A Development Stage Company)
               Notes to the Financial Statements
            September 30, 1999 and December 31, 1998

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

       The accompanying financial statements have been prepared by
       the Company without audit.  In the opinion of management,
       all adjustments (which include only normal recurring
       adjustments) necessary to present fairly the financial
       position, results of operations and cash flows at September
       30, 1999 and 1998 and for all periods presented have been
       made.

       Certain information and footnote disclosures normally
       included in financial statements prepared in accordance
       with generally accepted accounting principles have been
       condensed or omitted.  It is suggested that these condensed
       financial statements be read in conjunction with the
       financial statements and notes thereto included in the
       Company's December 31, 1998 audited financial statements.
       The results of operations for the periods ended September
       30, 1999 and 1998 are not necessarily indicative of the
       operating results for the full years.




Item 2.   Management's Discussion and Analysis or Plan
          of Operations

     The following information should be read in conjunction with
the financial statements and notes thereto appearing elsewhere in
this Form 10-QSB.

     Rako Corporation (the "Company") is considered a development
stage company with no assets or capital and with no significant
operations or income since approximately 1986.  It is anticipated
that the Company will require only nominal capital to maintain the
corporate viability of the Company and necessary funds, including
funds to cover expenses associated with being a public company,
will most likely be provided by the Company's officers and
directors in the immediate future.  However, unless the Company is
able to facilitate an acquisition of or merger with an operating
business or is able to obtain significant outside financing, there
is substantial doubt about its ability to continue as a going
concern.  Accordingly, the Company's independent accountants have
included in the Company's financial statements a going concern
qualification footnote.

Plan of Operation

    During the next 12 months, the Company will actively seek out
and investigate possible business opportunities with the intent to
acquire or merge with one or more business ventures.  Because the
Company lacks funds, it may be necessary for the officers and
directors to either advance funds to the Company or to accrue
expenses until such time as a successful business consolidation can
be made.  Management intends to hold expenses to a minimum and to
obtain services on a contingency basis when possible.  Further, the
Company's directors will defer any compensation until such time as
an acquisition or merger can be accomplished and will strive to
have the business opportunity provide their remuneration.  However,
if the Company engages outside advisors or consultants in its
search for business opportunities, it may be necessary for the
Company to attempt to raise additional funds.

    As of the date hereof, the Company has not made any
arrangements or definitive agreements to use outside advisors or
consultants or to raise any capital.  In the event the Company does
need to raise capital, most likely the only method available to the
Company would be the private sale of its securities.  Because of
the nature of the Company as a development stage company, it is
unlikely that it could make a public sale of securities or be able
to borrow any significant sum from either a commercial or private
lender.  There can be no assurance that the Company will be able to
obtain additional funding when and if needed, or that such funding,
if available, can be obtained on terms acceptable to the Company.

    The Company does not intend to use any employees, with the
possible exception of part-time clerical assistance on an as-needed
basis.  Outside advisors or consultants will be used only if they
can be obtained for minimal cost or on a deferred payment basis.
Management is confident that it will be able to operate in this
manner and to continue its search for business opportunities during
the next twelve months.

Net Operating Loss

    The Company has accumulated approximately $4,000 of net
operating loss carryforwards as of December 31, 1998, which may be
offset against taxable income and income taxes in future years.
The use of these losses to reduce future income taxes will depend
on the generation of sufficient taxable income prior to the
expiration of the net operating loss carryforwards.  The
carry-forwards expire in the year 2014.  In the event of certain
changes in control of the Company, there will be an annual
limitation on the amount of net operating loss carryforwards which
can be used.  No tax benefit has been reported in the financial
statements for the year ended December 31, 1998 or the nine month
period ended September 30, 1999 because there is a 50% or greater
chance that the carryforward will not be used.  Accordingly, the
potential tax benefit of the loss carryforward is offset by a
valuation allowance of the same amount.

Inflation

    In the opinion of management, inflation has not and will not
have a material effect on the operations of the Company until such
time as the Company successfully completes an acquisition
or merger.  At that time, management will evaluate the possible
effects of inflation on the Company related to it business and
operations following a successful acquisition or merger.

Year 2000

    Year 2000 issues may arise if computer programs have been
written using two digits (rather than four) to define the
applicable year.  In such case, programs that have time-sensitive
logic may recognize a date using "00" as the year 1900 rather than
the year 2000, which could result in miscalculations or system
failures.

    Because the Company currently does not have any operations
except for its search for viable business opportunities, it does
not own or use any computer equipment.  The Company does not
anticipate doing a full assessment of the potential Year 2000 issue
until it has made an acquisition of or merged with an operating
entity.  The Company does not believe that the cost of addressing
the issue will have a material adverse impact on its financial
position.  Further, the Company believes that no third parties with
whom it may have a material relationships will be materially
affected by the Year 2000 issues.

Risk Factors and Cautionary Statements

    This report contains certain  forward-looking statements.  The
Company wishes to advise readers that actual results may differ
substantially from such forward-looking statements.  Forward-
looking statements involve risks and uncertainties that could cause
actual results to differ materially from those expressed in or
implied by the statements, including, but not limited to, the
following: the ability of the Company search for appropriate
business opportunities and subsequently acquire or merge with such
entity, to meet its cash and working capital needs, the ability of
the Company to maintain its existence as a viable entity, and other
risks detailed in the Company's periodic report filings with the
Securities and Exchange Commission.

                             PART II

Item 1.  Legal Proceedings

    There are presently no other material pending legal
proceedings to which the Company or any of its subsidiaries is a
party or to which any of its property is subject and, to the best
of its knowledge, no such actions against the Company are
contemplated or threatened.

Item 2.  Changes In Securities

    This Item is not applicable to the Company.

Item 3.  Defaults Upon Senior Securities

    This Item is not applicable to the Company.

Item 4.  Submission of Matters to a Vote of Security Holders

    This Item is not applicable to the Company.

Item 5.  Other Information

    This Item is not applicable to the Company.

Item 6.  Exhibits and Reports on Form 8-K

    (a)  Exhibit 27 - Financial Data Schedules

    (b)  Reports on Form 8-K

             No report on Form 8-K was filed by the Company during the
    three month period ended September 30, 1999.




                            SIGNATURES


    In accordance with the requirements of the Securities Exchange
Act of 1934, the Registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                            RAKO CORPORATION



Date:  November 19, 1999               By:  /S/ Kenneth D. Montee
                                            KENNETH D. MONTEE
                                            C.E.O., C.F.O., President
                                            and Director



Date: November 19, 1999                By:  /S/ Ray Montee
                                            RAY MONTEE
                                            Secretary/Treasurer,  and
                                            Director
                                           (Principal Accounting Officer)