FORM 10-Q


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

            QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
              OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1997

Commission File Number 2-5916

                    CHASE GENERAL CORPORATION
      (Exact name of registrant as specified in its Charter)

          Missouri                           36-2667734
State incorporation      I.R.S. Employer Identification Number

     3600 Leonard Road, St. Joseph, Missouri      64503
(Address of principal executive offices)       (Zip Code)

                          (816) 279-1625
       (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all
reports, required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such filing requirements for the past
90 days.

     Yes       X         No 


Number of shares outstanding of the issuer's Common Stock:

     Class                         Outstanding at April 30, 1997

Common Stock, $1 par value                   969,834





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                    CHASE GENERAL CORPORATION

                              INDEX


PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

     Consolidated Condensed Balance Sheets - 
          March 31, 1997 (Unaudited) and June 30, 1996          3

     Consolidated Condensed Statements of Operations -
          Nine months ended March 31, 1997 and 1996 
          (Unaudited)                                           4

     Consolidated Condensed Statements of Operations -
          Three months ended March 31, 1997 and 1996 
          (Unaudited)                                           5

     Consolidated Condensed Statements of Cash Flows -
          Nine months ended March 31, 1997 and 1996 
          (Unaudited)                                           6

     Notes to Consolidated Condensed Financial 
          Statements                                            7

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations                   8

Part II - Other Information

Item 3.  Defaults Upon Senior Securities                       10

Item 6.  Exhibits and Reports on Form 8-K                      10




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                  PART I.  FINANCIAL INFORMATION

             CHASE GENERAL CORPORATION AND SUBSIDIARY
              CONSOLIDATED CONDENSED BALANCE SHEETS
                 March 31, 1997 and June 30, 1996

                                                  March 31,     June 30, 
                                                     1997         1996        
                                                 (Unaudited)
CURRENT ASSETS
 Cash                                             $ 309,534    $ 236,316 
 Receivables, net of allowance                       68,596       74,754 
 Inventories:
    Finished goods                                   29,244       51,204 
    Goods in process                                  4,053        2,024 
    Raw materials                                   127,771       42,189 
    Packaging materials                             104,482      104,565 
 Prepaid expense                                     27,250       42,659 
    Total current assets                            670,930      553,711 

PROPERTY AND EQUIPMENT - AT COST                    956,313      942,011 
 Less accumulated depreciation                      703,427      679,768 
    Total property and equipment                    252,886      262,243 

TOTAL ASSETS                                      $ 923,816    $ 815,954 

               LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
 Accounts payable                                 $  70,441    $  46,943 
 Notes payable, Series B 
    current maturities                                9,676        9,676 
 Accrued expense                                     28,693       41,456 
 Estimated liability for 
    income taxes                                     31,892            -      
    Total current liabilities                       140,702       98,075 

LONG-TERM LIABILITIES
 Notes payable, Series B                            204,277      242,980 
    Total liabilities                               344,979      341,055 

STOCKHOLDERS' EQUITY
 Capital stock                                    3,331,274    3,331,274 
 Paid-in capital in excess of par                 3,134,722    3,134,722 
 Retained earnings (deficit)                     (5,887,159)  (5,991,097)
    Total stockholders' equity                      578,837      474,899 

TOTAL LIABILITIES AND STOCKHOLDERS' 
 EQUITY                                           $ 923,816    $ 815,954 

    See notes to consolidated condensed financial statements.

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             CHASE GENERAL CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                           (Unaudited)


                                                     Nine Months Ended     
                                                          March 31        
                                                    1997          1996   

NET SALES                                        $2,054,847   $1,992,396 

COST OF SALES                                     1,531,856    1,514,911 

 Gross profit on sales                              522,991      477,485 

OPERATING EXPENSES

 Selling expense                                    243,333      241,702 
 General and administrative expense                 119,489      124,158 

    Total operating expenses                        362,822      365,860 

      Net income from operations                    160,169      111,625 

OTHER INCOME (EXPENSE)                               (9,009)      (8,936)

      Net income before income taxes                151,160      102,689 

PROVISION FOR INCOME TAXES                           47,222       26,963 

NET INCOME                                       $  103,938    $  75,726 

EARNINGS (LOSS) PER SHARE                        $      .01    $    (.02)




    See notes to consolidated condensed financial statements.


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             CHASE GENERAL CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                           (Unaudited)


                                                    Three Months Ended   
                                                          March 31        
                                                     1997          1996  

NET SALES                                         $ 258,894    $ 282,300 

COST OF SALES                                       253,526      305,900 

 Gross profit (loss) on sales                         5,368      (23,600)

OPERATING EXPENSES

 Selling expense                                     43,525       57,412 
 General and administrative expense                  41,556       46,188 

    Total operating expenses                         85,081      103,600 

      Net loss from operations                      (79,713)    (127,200)

OTHER INCOME (EXPENSE)                               (2,812)      (2,394)

      Net loss before income taxes                  (82,525)    (129,594)

PROVISION FOR INCOME TAXES (REFUND)                 (34,748)     (54,418)

NET LOSS                                          $ (47,777)   $ (75,176)

LOSS PER SHARE                                    $    (.08)   $    (.11)



    See notes to consolidated condensed financial statements.

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             CHASE GENERAL CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

                           (Unaudited)

                                                      Nine Months Ended   
                                                          March 31        
                                                     1997         1996   

CASH FLOWS FROM OPERATING ACTIVITIES
 Net income                                        $103,938     $ 75,726 

 Adjustments to reconcile net 
   income to net cash provided by 
   operating activities:
   Depreciation and amortization                     39,658       42,405 
   Provision for bad debts                            4,815        7,200 
   Effects of changes in operating 
     assets and liabilities:
      Accounts receivables                            1,343      (23,920)
     Accounts payable                                23,498      (20,800)
     Inventories                                    (65,568)     (15,973)
     Prepaid expenses                                15,409       17,242 
     Accrued expense                                (12,763)     (21,323)
     Estimated liability for income 
      taxes                                          31,892       13,931 

      Net cash provided by operating 
       activities                                   142,222       74,488 

CASH FLOWS FROM INVESTING ACTIVITIES
 Purchases of property and equipment                (30,301)     (91,721)

CASH FLOWS FROM FINANCING ACTIVITIES
 Principal payments on long-term debt               (38,703)     (35,146)

NET INCREASE (DECREASE) IN CASH                      73,218      (52,379)

CASH, BEGINNING OF PERIOD                           236,316      300,570 

CASH, END OF PERIOD                                $309,534     $248,191 

SUPPLEMENTAL DISCLOSURES
 Interest paid                                     $ 16,214     $ 17,718 

 Income taxes paid                                 $ 17,494     $ 13,032 




    See notes to consolidated condensed financial statements.

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             CHASE GENERAL CORPORATION AND SUBSIDIARY
       NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

                           (Unaudited)


NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

In the opinion of management, the accompanying unaudited and
audited consolidated condensed financial statements contain all
adjustments necessary to present fairly Chase General
Corporation's financial position as of March 31, 1997 and June
30, 1996, the results of its operations for the nine months and
three months ended March 31, 1997 and 1996, and its cash flows
for the nine months ended March 31, 1997 and 1996.

While the Company believes that the disclosures presented are
adequate to make the information not misleading, it is suggested
that these consolidated condensed financial statements be read in
conjunction with the financial statements and the notes included
in the Company's annual report for June 30, 1996, Form 10-K.  All
adjustments made during the period ended March 31, 1997 were of a
normal recurring nature.


NOTE 2 - EARNINGS (LOSS) PER SHARE

The earnings (loss) per share was computed on the weighted
average of outstanding common shares during the years as follows:

                                  Nine Months Ended      Three Months Ended 
                                       March  31              March 31     
                                   1997      1996        1997           1996  

Net income (loss)               $103,938  $ 75,726   $ (47,777)     $ (75,176)

Preferred dividend 
 requirements:
  6% Prior Cumulative 
   Preferred, 
   $5 par value                   45,000    45,000      15,000         15,000 
 5% Convertible 
  Cumulative Preferred,
  $20 par value                   51,054    51,054      17,018         17,018 

  Total dividend 
   requirements                   96,054    96,054      32,018         32,018 

NET INCOME (LOSS) COMMON
 STOCKHOLDERS                   $  7,884 $ (20,328)  $ (79,795)     $(107,194)

WEIGHTED AVERAGE OF 
 OUTSTANDING COMMON 
 SHARES                          969,834   969,834     969,834        969,834 

EARNINGS (LOSS) PER 
 SHARE                          $    .01 $    (.02)  $    (.08)     $    (.11)


No computation was made on common stock equivalents outstanding
because earnings (loss) per share would be anti-dilutive.



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                              ITEM 2

             CHASE GENERAL CORPORATION AND SUBSIDIARY
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS

GENERAL

Chase General and its wholly-owned subsidiary are engaged in the
manufacture of confectionery products which are sold primarily to
wholesale houses, grocery accounts, vendors, and repackers.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 1997, the Company has a $12,940 commitment for
capitalized expenditures.  Cash increased $73,218 during the
current nine month period.  Working capital increased
approximately $75,000 as a result of a profitable busy season.

The officers of the Corporation and legal counsel continue to
discuss liquidity and capital resource options to resolve the $5
million cumulative preferred stock dividends in arrears.

RESULTS OF OPERATIONS

Nine Months ended March 31, 1997

The Company had no unusual transactions for the nine months ended
March 31, 1997.  The Company realized a gross profit percentage
of 25.45% and 23.97% for the nine months ended March 31, 1997 and
1996, respectively.  The gross profit increased as a result of
improved labor costs.  Net sales increased 3.13% over the same
period a year ago as a result of more regional sales activity.

Selling expenses are $1,600 higher than the same period a year
ago.  General and administrative expenses are $4,700 lower than
same period a year ago as a result of monitoring fixed overhead
costs and not outsourcing proxy costs.  Interest expense
continues to decrease from reduced debt outstanding.

Inventories at March 31, 1997 are $66,000 higher than at June 30,
1996 as a result of anticipated orders for spring product lines
and taking advantage of price savings on raw materials.

                           (Continued)
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                              ITEM 2

             CHASE GENERAL CORPORATION AND SUBSIDIARY
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS (CONTINUED)

Three months ended March 31, 1997

Net sales decreased $23,000 over the same period a year ago. 
However gross profit was a positive 2.07% as compared to a
negative 8.36% for the same period ended a year ago.  This three
month period is normally the Company's slowest season.  Sales are
usually weak and plant maintenance is performed in anticipation
of the next six months increased activity.

Selling expense decreased $14,000 over the same period a year ago
from reducing promotion and advertising costs.  General and
administrative expense also decreased by $4,600 over the same
period a year ago as a result of monitoring fixed overhead.

Accounts payable are $23,500 higher than at June 30, 1996 as a
result of increased inventory on hand at March 31, 1997.




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                   PART II.  OTHER INFORMATION

             CHASE GENERAL CORPORATION AND SUBSIDIARY


ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          a.   None
     
          b.   The total cumulative preferred stock dividends in
               arrears at March 31, 1997 is $5,483,420.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8.K.

          a.   Exhibits - None
     
          b.   Reports on Form 8-K:  There were no reports on
               Form 8-K filed by the Company during the quarter
               ended March 31, 1997.



                            SIGNATURES

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

                    CHASE GENERAL CORPORATION
                            Registrant



May 12, 1997                       /s/ Barry M. Yantis
Date                               Barry M. Yantis
                                   President and Chief Financial
                                   Officer