SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                            FORM 10-Q

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



For the quarterly period ended December 31, 1996

Commission File Number 2-5916

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

        Missouri                        36-2667734
(State of 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)


                          NOT APPLICABLE
(Former name, former address and former fiscal year, if changed
since last report.)


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 January 31, 1997

Common Stock, $1 par value                   969,834


<PAGE>





                    CHASE GENERAL CORPORATION

                              Index


PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

  Consolidated Condensed Balance Sheets - December 31, 1996
     (Unaudited) and June 30, 1996 . . . . . . . . . . . . . . .3

  Consolidated Condensed Statements of Operations
     Six months ended December 31, 1996 and 1995 (Unaudited) . .4

   Consolidated Condensed Statements of Operations
     Three months ended December 31, 1996 and 1995 (Unaudited) .5

   Consolidated Condensed Statements of Cash Flows
     Six months ended December 30, 1996 and 1995 (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



<PAGE>







                  PART I.  FINANCIAL INFORMATION

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

                                              December 31,       June 30,
                                                   1996            1996  
CURRENT ASSETS                                 (Unaudited)

 Cash                                          $   375,073    $  236,316 
 Receivables, net of allowance                     130,936        74,754 
 Inventories: 
   Finished goods                                   23,007        51,204 
   Goods in process                                  5,251         2,024 
   Raw materials                                   106,824        42,189 
   Packaging materials                             126,778       104,565 
 Prepaid expense                                     2,445        42,659 
   Total current assets                            770,314       553,711 
 
PROPERTY AND EQUIPMENT - AT COST                   948,405       942,011 
 Less accumulated depreciation                     692,900       679,768 
   Total property and equipment                    255,505       262,243 
 
TOTAL ASSETS                                    $1,025,819    $  815,954 

               LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
 Accounts payable                                $  95,931    $   46,943 
 Notes payable, Series B current 
   maturities                                        9,676         9,676 
 Accrued expense                                    12,901        41,456 
 Estimated liability for income 
    taxes                                           71,750           -  
   Total current liabilities                       190,258        98,075 

LONG-TERM LIABILITIES
 Notes payable, Series B, less 
   current maturities above                        208,947       242,980 
   Total liabilities                               399,205       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)                   (5,839,382)    (5,991,097)
   Total stockholders' equity                      626,614       474,899 

TOTAL LIABILITIES AND STOCKHOLDERS' 
 EQUITY                                       $  1,025,819    $  815,954 


    See notes to consolidated condensed financial statements.



<PAGE>




             CHASE GENERAL CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                           (UNAUDITED)


                                                  Six Months Ended     
                                                     December 31        
                                                  1996           1995    

NET SALES                                      $1,795,953     $1,710,096 

COST OF SALES                                   1,278,330      1,209,011 

 Gross profit                                     517,623        501,085 

OPERATING EXPENSES

 Selling expense                                  199,808        184,290 
 General and administrative expense                77,933         77,970 
   Total operating expenses                       277,741        262,260 

      Income from operations                      239,882        238,825 

OTHER INCOME (EXPENSE)                             (6,197)        (6,542)

       Income before income taxes                 239,882        232,283 

PROVISION FOR INCOME TAXES                         81,970         81,381 

NET INCOME                                      $ 151,715      $ 150,902 

EARNINGS PER SHARE                              $     .09      $     .09 





    See notes to consolidated condensed financial statements.



<PAGE>




             CHASE GENERAL CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                           (UNAUDITED)

                                                    Three Months Ended   
                                                       December 31       
                                                    1996          1995   

NET SALES                                       $1,263,690    $1,241,402 

COST OF SALES                                      877,935       851,157 

 Gross profit                                      385,755       390,245 

OPERATING EXPENSES

 Selling expense                                   140,010       123,352 
 General and administrative expense                 41,080        43,346 

   Total operating expenses                        181,090       166,698 

      Income from operations                       204,665       223,547 

OTHER INCOME (EXPENSE)                             (3,253)        (3,678)

      Income before income taxes                   201,412       219,869 

PROVISION FOR INCOME TAXES                          75,535        78,906 

NET INCOME                                       $ 125,877     $ 140,963 

EARNINGS PER SHARE                                $    .09     $     .ll 





    See notes to consolidated condensed financial statements.



<PAGE>





             CHASE GENERAL CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

                           (UNAUDITED)
                                                     Six Months Ended
                                                       December 31    
                                                     1996        1995    

CASH FLOWS FROM OPERATING ACTIVITIES

 Net income                                       $151,715      $150,902 

 Adjustments to reconcile net income 
   to net cash provided by operating 
     activities:
   Depreciation and amortization                    25,753        20,046 
   Provision for doubtful accounts                   3,210         4,800 
   Changes in operating assets and 
     liabilities:
     Net increase in accounts 
        receivable                                (59,392)       (68,409)
     Net increase in inventory                    (61,878)        (1,967)
     Net decrease in prepaid expenses               40,214        38,305 
     Net increase (decrease) in 
       accounts payable                             48,988       (21,474)
     Net increase in accrued expense 
        and estimated liability for 
        income taxes                                43,195        37,409 

        Net cash provided by 
          operating activities                     191,805       159,612 

CASH FLOWS FROM INVESTING ACTIVITIES

 Purchases of property and equipment              (19,015)       (59,705)

        Net cash used in investing 
         activities                               (19,015)       (59,705)

CASH FLOWS FROM FINANCING ACTIVITIES

 Principal payments on long-term debt             (34,033)       (30,905)

        Net cash used in financing 
          activities                              (34,033)       (30,905)

NET INCREASE IN CASH AND CASH 
 EQUIVALENTS                                       138,757        69,002 

CASH AND CASH EQUIVALENTS, 
 BEGINNING OF PERIOD                               236,316       300,570 

CASH AND CASH EQUIVALENTS, END OF 
 PERIOD                                           $375,073      $369,572 



    See notes to consolidated condensed financial statements.


<PAGE>




             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 condensed consolidated condensed financial statements
contain all adjustments necessary to present fairly Chase General
Corporation's financial position as of December 31, 1996 and June
30, 1996 the results of its operations for the six months and
three months ended December 31, 1996 and 1995, and its cash flows
for the six months ended December 31, 1996 and 1995.

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 December 31, 1996 were
of a normal recurring nature.


NOTE 2 - EARNINGS PER SHARE

The earnings per share was computed on the weighted average of
outstanding common shares as follows:

<TABLE>


                                      Six Months Ended                  Three Months Ended
                                          December 31                       December 31   
                                     1996               1995            1996          1995 
<CAPTION>

<S>                                <C>                 <C>            <C>            <C>
Net income                         $151,715            $150,902       $125,877       $140,963

Preferred dividend requirements:
 6% Prior Cumulative 
   Preferred, $5 par 
   value                             30,000              30,000         15,000        15,000
 5% Convertible 
   Cumulative Preferred,
   $20 par value                     34,036              34,036         17,018        17,018

   Total dividend 
     requirements                    64,036              64,036        32,018         32,018

     Net income common 
        shareholders               $ 87,679            $ 86,866       $ 93,859      $108,945

   Weighted average 
     of outstanding
     common shares                  969,834             969,834        969,834       969,834

     Earnings per 
       share                       $    .09             $   .09        $   .09       $   .ll

</TABLE>


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


<PAGE>



                              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 December 31, 1996, the Company has no commitments for
capitalized expenditures.  Cash increased $138,757 during the
current six month period as a result of a profitable busy season
and controlling overhead.  Working capital increased
approximately $124,000 for the six month period.

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

Six Months ended December 31, 1996 and 1995

The Company had no unusual transactions for the six months ended
December 31, 1996.  The Company realized a gross profit margin of
28.82% for the six months ended December 31, 1996 as compared to
29.3% for the same period ended a year ago.  Net sales increased
$86,000 over the same period a year ago as a result of more
brokerage activity.

Selling expenses are $15,500 higher than the same period a year
ago as a result of more aggressive brokerage activity.  General
and administrative expenses remained consistent compared with the
same period a year ago.  Interest expense continues to decrease
because of debt retirement.  

Inventories at December 31, 1996 were $62,000 higher than at June
30, 1996 due to increased raw materials and packaging materials
on hand.  Inventory was increased to take advantage of current
pricing rates than will be available in early spring.

Three Months ended December 31, 1996 and 1995

The Company realized a gross profit margin of 30.52% and 31.44%
for the three months ended December 31, 1996 and 1995,
respectively.  Net sales decreased $22,000 over the same period a
year ago.  No major customers were lost during this period.

                           (Continued)


<PAGE>




                              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 December 31, 1996 and 1995 (Continued)

An aggressive brokerage activity for three months ended
December 31, 1996 resulted in selling expenses increasing
$17,000.  General and administrative expenses remained consistent
compared with the same period a year ago.

Accounts payable are higher than at June 30, 1995 as a result of
increased inventory on hand at December 31, 1996.



<PAGE>





                   PART II.  OTHER INFORMATION

             CHASE GENERAL CORPORATION AND SUBSIDIARY


Item 3.   DEFAULTS UPON SENIOR SECURITIES

          a.   None

          b.   The total cumulative preferred stock dividend in
               arrears at December 31, 1996 is $5,451,402.


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 during October, November, December,
               1996.



                            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, thereunder duly authorized.

                    CHASE GENERAL CORPORATION
                            Registrant




     February 13, 1997                /s/  Barry M. Yantis
Date                                    Barry M. Yantis
                                        President and Chief
                                        Financial Officer