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

                                   FORM 10-Q


[X]   Quarterly Report Pursuant to Section 13 or 15(d) of the
      Securities Exchange Act of 1934.
[ ]   Transition Report Pursuant to Section 13 or 15(d) of the
      Securities Exchange Act of 1934.

For Quarter Ended March 31, 1998    
Commission File Number 0-11951


                                 JSCE, Inc.                                 
            (Exact name of registrant as specified in its charter)

           Delaware                                     37-1337160 
(State or other jurisdiction of             (IRS EmployerIdentification No.)
 ncorporation or organization)

               8182 Maryland,  St. Louis, Missouri          63105  
            (Address of principal executive offices)     (Zip Code)

                               (314) 746-1100                      
              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 (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:


      As of March 31, 1998, the registrant had outstanding 1,000
shares of common stock, $.01 par value per share.

                        PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

                                   JSCE, Inc.         
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (In millions)
                                  (Unaudited)

                                                       Three months ended
                                                             March 31,       
                                                         1998        1997 

Net sales                                               $ 844       $ 778

Costs and expenses
  Cost of goods sold                                      702         675
  Selling and administrative expenses                      71          64

    Income from operations                                 71          39

Interest expense, net                                     (50)        (47)


    Income (loss) before income taxes and
      extraordinary item                                   21          (8)

Provision for (benefit from) income taxes                  10          (1)

    Net income (loss) before extraordinary item            11          (7)

Extraordinary item:  
    Loss from early extinguishment of debt,
    net of income tax benefits                            (13)           

    Net loss                                            $  (2)      $  (7)



See notes to consolidated financial statements.
<TABLE>
<CAPTION>
                                      JSCE, Inc.         
                             CONSOLIDATED BALANCE SHEETS
                          (In millions, except share data)
                                                  
                                                          March 31,        December 31,  
                                                            1998              1997    
                                                        (unaudited)
<S>                                                      <C>                 <C>
Assets
Current assets
  Cash and cash equivalents                              $    11             $    12
  Receivables, less allowances of
    $10 in 1998 and 1997                                     306                 302
  Refundable income taxes                                       
  Inventories
    Work-in-process and finished goods                       104                  89
    Materials and supplies                                   155                 151
                                                             259                 240
  Deferred income taxes                                       31                  32
  Prepaid expenses and other current assets                   30                  16
    Total current assets                                     637                 602

Net property, plant and equipment                          1,515               1,523
         
Timberland, less timber depletion                            263                 265

Goodwill, less accumulated amortization of
  $60 in 1998 and $58 in 1997                                235                 237
Other assets                                                 132                 144
                                                         $ 2,782             $ 2,771

LIABILITIES AND STOCKHOLDER'S DEFICIT
Current liabilities                                             
  Current maturities of long-term debt                   $     7             $    15
  Accounts payable                                           292                 334
  Accrued compensation and payroll taxes                      81                  88
  Interest payable                                            49                  25
  Other accrued liabilities                                   78                  69
    Total current liabilities                                507                 531

Long-term debt, less current maturities                    2,064               2,025

Other long-term liabilities                                  226                 227

Deferred income taxes                                        361                 362

Stockholder's deficit                                           
  Common stock, par value $.01 per share;
    1,000 shares authorized and outstanding
  Additional paid-in capital                               1,102               1,102
  Retained earnings (deficit)                             (1,478)             (1,476)
    Total stockholder's deficit                             (376)               (374)
                                                         $ 2,782             $ 2,771
</TABLE>
See notes to consolidated financial statements.

                                        JSCE, Inc.         
                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      (In millions)
                                       (Unaudited)

                                                           Three months ended 
                                                               March 31,      
                                                            1998        1997  

Cash flows from operating activities                                        
  Net loss                                                  $  (2)    $   (7)
  Adjustments to reconcile net loss to 
  net cash provided by operating activities
    Extraordinary loss from early extinguishment of debt       22
    Depreciation, depletion and amortization                   33         31
    Amortization of deferred debt issuance costs                3          3
    Deferred income taxes                                      (1)         4
    Non-cash employee benefit expense                           2          2
    Change in current assets and liabilities,
      net of effects from acquisitions
        Receivables                                            (4)         6
        Inventories                                           (19)        (7)
        Prepaid expenses and other current assets             (12)        (2)
        Accounts payable and accrued liabilities              (41)        (8)
        Interest payable                                       24         23
        Income taxes payable                                   (1)        (9)
        Other, net                                             (3)          
  Net cash provided by operating activities                     1         36

Cash flows from investing activities
  Property additions                                          (21)       (32)
  Proceeds from property disposals                              2           
  Construction funds held in escrow                                        2
  Acquisition of businesses, net of cash acquired                         (9)
  Net cash used for investing activities                      (19)       (39)

Cash flows from financing activities
  Borrowings under bank credit facilities                     891
  Net repayments under Accounts Receivable
    Securitization Program                                     (5)        (3)
  Borrowings (repayments) of long-term debt                  (856)         9
  Deferred debt issuance costs                                (13)          
  Net cash provided by financing activities                    17          6

Increase (decrease) in cash and cash equivalents               (1)         3
Cash and cash equivalents
  Beginning of period                                          12         12
  End of period                                             $  11     $   15



See notes to consolidated financial statements.

                                   JSCE, Inc.         
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         (Tabular amounts in millions)
                                  (Unaudited)


1.  Basis of Presentation

The accompanying consolidated financial statements of JSCE, Inc.
have been prepared in accordance with the instructions to Form 10-Q
and reflect all adjustments which management believes necessary
(which include only normal recurring accruals) to present fairly
the financial position and results of operations.  These
statements, however, do not include all information and footnotes
necessary for a complete presentation of financial position,
results of operations and cash flows in conformity with generally
accepted accounting principles.  Interim results may not
necessarily be indicative of results which may be expected for any
other interim period or for the year as a whole.  For further
information refer to the consolidated financial statements and
footnotes included in the JSCE, Inc. Annual Report on Form 10-K for
the year ended December 31, 1997, filed on March 2, 1998 with the
Securities and Exchange Commission (the "JSCE 1996 10-K").

JSCE, Inc. is a wholly-owned subsidiary of Jefferson Smurfit
Corporation ("JSC").  JSCE, Inc. and where appropriate, its
consolidated subsidiaries, are hereinafter collectively referred to
as "JSCE" or the "Company".  JSC has no operations other than its
investment in the Company.  The Company owns a 100% equity interest
in Jefferson Smurfit Corporation (U.S.) ("JSC (U.S.)").  JSC (U.S.)
has extensive operations throughout the United States.


2. Long-Term Debt

In March 1998, JSC (U.S.) entered into a new credit facility (the
"1998 Credit Agreement") consisting of a $550 million revolving
credit facility, a $400 million seven-year Tranche A Term Loan, and
a $350 million eight-year Tranche B Term Loan.  The proceeds from
the 1998 Credit Agreement were used to fully prepay $878 million of
outstanding principal and accrued interest under the previous
credit facility (the "1994 Credit Agreement").  The 1998 Credit
Agreement will reduce the interest expense, extend debt maturities,
and improve the financial flexibility of the Company.  JSC (U.S.)
recorded an extraordinary loss of $13 million (net of income tax
benefits of $9 million) related to the early extinguishment of the
Company's bank debt.

Outstanding loans under the Tranche A Term Loan and the Revolving
Credit Facility bear interest at rates selected at the option of
JSC (U.S.) equal to the alternate base rate ("ABR") plus .50% per
annum or the adjusted LIBOR Rate plus 1.50% per annum (7.1875% at
March 31, 1998).  Interest on outstanding loans under the Tranche
B Term Loan is payable at a rate per annum selected at the option
of JSC (U.S.), equal to the alternate base rate plus 1% per annum
or the adjusted LIBOR Rate plus 2% per annum (7.6875% at March 31,
1998).  ABR is defined as the highest of Chase Manhattan Bank's
prime rate, 1% in excess of the base certificate of deposit rate or
1/2 of 1% in excess of the Federal Funds Rate.  The Tranche A and
B Term Loans and the Revolving Credit Facility may be prepaid at
any time, in whole or in part, at the option of JSC (U.S.).



3.  Subsequent Events

On May 10, 1998, the Company announced it had signed a merger
agreement with Stone Container Corporation ("Stone Container"). 
The merged company, to be named Smurfit-Stone Container
Corporation, will be a focused, integrated producer of corrugated
containers, folding cartons, industrial bags, containerboard and
recycled paperboard, with annual sales exceeding $8 billion, based
on 1997 results.  Under terms of the agreement, common shareholders
of Stone Container would receive .99 shares of Jefferson Smurfit
Corporation for each common share of Stone Container.  Shareholders
of JSC will continue to hold their existing JSC shares.  The
transaction is expected to be tax-free to the shareholders of both
companies and will be treated as a purchase for accounting
purposes.   The transaction is subject to certain conditions,
including the approval of JSC's and Stone Container's shareholders,
domestic and foreign regulatory clearances and other matters as
described in the Company's Form 8-K dated May 12, 1998.
 
In a separate transaction, a subsidiary of Jefferson Smurfit Group
plc has agreed to sell its containerboard machine located at the
Company's mill in Fernandina Beach, Florida to a subsidiary of the
Company for $175 million.  The transaction is expected to close by
January 1999.  In the event the merger is not consummated, the
Company will have an option to cancel or rescind the transaction. 

On or about May 12, 1998, two putative class action complaints were
filed against Stone Container and its individual directors and the
Company in Delaware Chancery Court alleging, among other things, 
that the directors of Stone Container violated the fiduciary duties
owed to Stone Container's public stockholders.  These complaints do
not include any specific allegations regarding the Company.  The
Company believes that these actions are without merit.

4.  Contingencies

JSC and Smurfit Newsprint Corporation ("SNC") have been served with
complaints alleging that Cladwood exterior siding, produced by SNC
and used in prefabricated or manufactured homes, deteriorates under
normal conditions and exposure.  The suits purport to be class
actions on behalf of persons who own or have purchased or used
Cladwood, a non-core product line of SNC.  The complaints allege
either negligence, unfair trade practices or breach of warranty, 
and seek unspecified amounts of damages and in one case declaratory
and injunctive relief.  On April 17, 1998, the court in one of these
cases denied the plantiff's motion seeking to certify a nationwide
class, but did certify a class of persons who own or have owned
buildings in Washington and Oregon with Cladwood siding.  Management
is unable to predict at this time the final outcome of these suits
or whether the resolution of the matters could materially affect
the Company's results of operations, cash flows or financial position.
The Company and SNC intend to defend the actions vigorously.

5.  Summarized Financial Information of JSC (U.S.)

The following summarized financial information is presented for JSC
(U.S.), a wholly-owned subsidiary of JSCE.  No separate financial
statements are presented for JSC (U.S.) because the financial
statements of JSC (U.S.) are identical to those of JSCE.  JSC
(U.S.) is the issuer of the 1994 Senior Notes and the 1993 Senior
Notes and is the borrower under the 1994 Credit Agreement, each as
defined in the JSCE 1997 10-K.  JSCE is the guarantor of the 1994
Senior Notes and the 1993 Senior Notes and is the guarantor under
the 1994 Credit Agreement.

5.  Summarized Financial Information of JSC (U.S.)


Condensed consolidated balance sheets:
                                                       March 31,    December 31,
                                                          1998           1997   

Current assets                                          $   637        $   602
Property, plant and equipment and timberlands, net        1,778          1,788
Goodwill                                                    235            237
Other assets                                                132            144
  Total assets                                          $ 2,782        $ 2,771

Current liabilities                                     $   507        $   531
Long-term debt                                            2,064          2,025
Other liabilities                                           587            589
Stockholder's deficit
  Common stock                                                                
  Additional paid-in capital                              1,102          1,102
  Retained earnings (deficit)                            (1,478)        (1,476)
    Total stockholder's deficit                            (376)          (374)
  Total liabilities and stockholder's deficit           $ 2,782        $ 2,771


Condensed consolidated statements of operations:

                                                             Three months ended
                                                                  March 31,    
                                                              1998         1997

Net sales                                                    $ 844        $ 778
Costs and expenses                                             773          739
Interest expense, net                                           50           47
Income (loss) before income taxes and extraordinary item        21           (8)
Provision for (benefit from) income taxes                       10           (1)

    Net income (loss) before extraordinary item                 11           (7)

Extraordinary item:  Loss from early extinguishment
  of debt, net of income tax benefits                          (13)            


  Net loss                                                   $  (2)       $  (7)

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

Results of Operations
                                        Three months ended March 31,      
(In millions)                           1998                  1997        
                                            Income                Income
                                   Net       from         Net      from
                                  sales    operations    sales   operations

Paperboard/Packaging Products      $ 764      $  60      $ 711     $  39
Newsprint                             80         11         67          
  Total                            $ 844      $  71      $ 778     $  39


Net sales for the Company for the three months ended March 31, 1998
were $844 million, an increase of 8% compared to the same period
last year.  Income from operations for the Company for the three
months ended March 31, 1998 was $71 million, an increase of 82%
compared to the same period last year.  The increases in net sales
and income from operations compared to last year were due primarily
to sales price and product mix and sales volume.  The impact of the
changes in sales price and product mix, shipment volumes and closed
or sold operations on net sales for each of the Company's segments
is shown in the chart below.
                                                       
(In millions)                     
                                        Paperboard/           
                                         Packaging 
Increase (decrease) in sales due to:     Products    Newsprint     Total

 Sales price and product mix                 $ 34       $ 14       $  48
 Sales volume                                  21         (1)         20
 Closed or sold facilities                     (2)                    (2)
   Total net sales increase                  $ 53       $ 13        $ 66

Paperboard/Packaging Products Segment
For the three months ended March 31, 1998 net sales of the
Paperboard/Packaging Products segment were $764 million, an
increase of $53 million, or 7%, compared to last year and income
from operations was $60 million, an increase of $21 million, or
54%, compared to last year.  The net sales increase was due
primarily to higher product prices, particularly for containerboard
and corrugated shipping containers.  Net sales also increased due
to higher sales volume for folding cartons and reclaimed fiber. 
The improvement in income from operations for this segment was due
primarily to the higher sales prices.  The major changes in net
sales price and shipments within the product groups of the
Paperboard/Packaging Products segment are discussed below.

The sales of containerboard and corrugated shipping containers for
the three months ended March 31, 1998 were $374 million, an
increase of $27 million compared to the same period last year. 
Market conditions were favorable during the first quarter of 1998
and corrugated shipping container prices continued to firm up. 
Linerboard prices, which increased during the fourth quarter of
1997, held steady through the first quarter of 1998.  On average,
prices of containerboard and corrugated shipping containers were
higher in the first quarter of 1998 by 17% and 8%, respectively,
compared to last year.  Shipments of corrugated shipping containers
during the first quarter of 1998 decreased approximately 6%
compared to last year, due in part to lower sales to agricultural
customers as a result of poor weather conditions.

Net sales of recycled boxboard, solid bleached sulfate ("SBS") and
folding cartons for the three months ended March 31, 1998 were $227
million, an increase of $14 million compared to last year. 
Industry demand for folding cartons was somewhat soft, but the
Company benefited from new business awarded in 1997.  On average,
recycled boxboard prices were higher by 4% compared to last year
and SBS prices were comparable to last year.  Folding carton prices
were lower than last year by 5% due primarily to product mix. 
Shipments of folding cartons during the first quarter of 1998 were
higher than last year by approximately 20%.

Net sales of reclaimed fiber and virgin wood fiber for the first
quarter were $95 million, an increase of $16 million, or 20%,
compared to last year.  Reclaimed fiber shipments increased
approximately 8% compared to last year and the sales price during
the quarter was 8% higher, on average, compared to last year. 
Virgin fiber prices were substantially higher than last year due to
tight supplies brought about by heavy rains, which restricted
access to woodlands in the southeast United States.

Net sales of the other products in this segment for the first
quarter were lower than last year by 6% overall, due primarily to
lower sales volume and plant closures.

Newsprint Segment
Net sales for the Newsprint segment for the three months ended
March 31, 1998 were $80 million, an increase of $13 million, or
19%, compared to last year and income from operations was $11
million, an increase of $11 million compared to last year. 
Domestic consumption was strong during the quarter.  The average
sales price during the quarter was higher than last year by
approximately $90 per metric ton, or 19%.  The improvement in
income from operations for the quarter was due primarily to higher
prices.  Sales volume was comparable to last year.

Costs and Expenses
The Company's cost of goods sold as a percent of net sales for the
three months ended March 31, 1998 decreased compared to last year,
due primarily to overall higher sales prices in 1998.  In the
Paperboard/Packaging Products segment the percentage decreased from
86% in 1997 to 83% in 1998 for the quarter.  For the Newsprint
segment, the first quarter percentage decreased from 97% in 1997 to
82% in 1998.

Selling and administrative expenses as a percent of net sales for
the three months ended March 31, 1998 increased slightly as
compared to 1997.  The increase in cost was due in part to a higher
level of employee benefits cost.

Interest expense for the three months ended March 31, 1998 was $3
million higher than last year due primarily to higher average debt
levels outstanding.  The average effective interest rate for the
Company's outstanding debt was slightly higher in 1998 compared to
1997.

The provision for income taxes for the three months ended March 31,
1998 was $10 million.  The effective tax rate for the stated period
differed from the Federal statutory tax rate due to several
factors, the most significant of which were state income taxes and
the effect of permanent differences from applying purchase
accounting.


Statistical Data

(In thousands of tons,                                  Three months ended
 except as noted)                                           March 31,      
                                                         1998        1997 
Mill production:                            
   Containerboard                                         495         479
   Recycled boxboard and
     solid bleached sulfate                               206         203
   Newsprint (metric)                                     142         141
Corrugated shipping containers
   sold (billion square feet)                             7.2         7.7
Folding cartons sold                                      133         111
Fiber reclaimed and brokered                            1,279       1,183

Liquidity and Capital Resources

Operating activities have historically been the major source of
cash to fund the Company's capital expenditures and debt payments. 
Net cash provided by operating activities for the three months
ended March 31, 1998 of $1 million and net borrowings of $17
million were used primarily to fund capital investments of $21
million. 

In March 1998, JSC (U.S.) entered into a new credit facility (the
"1998 Credit Agreement") consisting of a $550 million revolving
credit facility, a $400 million seven-year Tranche A Term Loan, and
a $350 million eight-year Tranche B Term Loan.  The proceeds from
the 1998 Credit Agreement were used to fully repay $878 million of
outstanding principal and accrued interest under the previous
credit facility (the "1994 Credit Agreement").  The 1998 Credit
Agreement will reduce the interest expense, extend debt maturities,
and improve the financial flexibility of the Company.  JSC (U.S.)
recorded an extraordinary loss of $13 million (net of income tax
benefits of $9 million) related to the early extinguishment of the
Company's bank debt. 

The 1998 Credit Agreement contains various business and financial
covenants including, among other things, maintenance of minimum
levels of consolidated earnings before depreciation, interest,
taxes and amortization and maintenance of minimum interest coverage
ratios.  The 1998 Credit Agreement also requires prepayments if
JSC(U.S.) has excess cash flows, as defined, or receives proceeds
from certain asset sales, insurance or the issuance of certain
indebtedness.  Such restrictions, together with the highly
leveraged position of the Company, could restrict corporate
activities, including the Company's ability to respond to market
conditions, to provide for unanticipated capital expenditures or to
take advantage of business opportunities.  

At March 31, 1998, the Company had $358 million of unused borrowing
capacity under its Credit Agreement and $110 million of unused
borrowing capacity under its $315 million accounts receivable
securitization program, subject to JSC(U.S.)'s level of eligible
accounts receivable.  The Company believes that cash provided by
operating activities and available financing sources will be
sufficient for the next several years to pay interest on the
Company's obligations, amortize its term loans and fund capital
expenditures.

On May 10, 1998, the Company announced it had signed a merger
agreement with Stone Container Corporation ("Stone Container"). 
The merged company, to be named Smurfit-Stone Container
Corporation, will be a focused, integrated producer of corrugated
containers, folding cartons, industrial bags, containerboard and
recycled paperboard, with annual sales exceeding $8 billion, based
on 1997 results.  Under terms of the agreement, common shareholders
of Stone Container would receive .99 shares of Jefferson Smurfit
Corporation for each common share of Stone Container.  Shareholders
of JSC will continue to hold their existing JSC shares.  The
transaction is expected to be tax-free to the shareholders of both
companies and will be treated as a purchase for accounting
purposes.   The transaction is subject to certain conditions,
including the approval of JSC's and Stone Container's shareholders,
domestic and foreign regulatory clearances and other matters as
described in the Company's Form 8-K dated May 12, 1998.
 
In a separate transaction, a subsidiary of Jefferson Smurfit Group
plc has agreed to sell its containerboard machine located at the
Company's mill in Fernandina Beach, Florida to a subsidiary of the
Company for $175 million.  The transaction is expected to close by
January 1999.  In the event the merger is not consummated, the
Company will have an option to cancel or rescind the transaction. 

As discussed in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1997 (the "1997 10-K"), the Company
established a plan to modify or replace certain portions of its
existing software and to review the systems that it is currently in
the process of installing in order to assure that these systems
will function properly with respect to dates in the year 2000 and
thereafter.  The Company is proceeding with its plan and, as stated
in the 1997 10-K, expects that its plan to modify or replace
software will address the Year 2000 issue on a timely basis.


                          PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         As previously reported, Jefferson Smurfit
         Corporation ("JSC") and Smurfit Newsprint
         Corporation, its wholly owned subsidiary ("SNC"),
         have been served in a purported class action
         entitled Carolyn Cave-Woods, et. ano. v. Jefferson
         Smurfit Corporation, et al, No. 97-2-19958-ISEA
         (Washington Superior Court) alleging unfair trade
         practices and breach of express warranty regarding
         SNC's Cladwood siding product.  On April 17, 1998,
         the Court in this case denied the plaintiff's
         motion seeking to certify a nationwide class, but
         did certify a class of all persons who own or have
         owned buildings in Washington and Oregon with
         Cladwood siding.  JSC and SNC intend to seek
         discretionary review of the Court's class
         certification ruling and to defend the action
         vigorously.

Item 2. Changes in Securities

         None

Item 3.  Defaults Upon Senior Securities

         None

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

         None

Item 5.  Other Information

         As reported in JSC's Current Report on Form 8-K dated May
         12, 1998, JSC announced on May 10, 1998, that it had signed
         a merger agreement with Stone Container Corporation.

Item 6.  Exhibits and Reports on Form 8-K

    a)     The following exhibits are included in this Form 10-Q.

      10.1 Amendment dated February 1, 1998 to Allocation Policies
           and Procedures for Fernandina Beach, Florida Mill under
           the Operating Agreement by and among Container Corporation
           of America ("CCA") n/k/a JSC(U.S.) and Smurfit Paperboard
           Inc. ("SPI") (incorporated by reference to Exhibit 10.1
           to JSC's quarterly report on Form 10-Q for the quarter
           ended March 31, 1998).
      10.2 Agreement dated as of May 11, 1994 to amend each of the
           Operating Agreement and the Rights Agreement by and
           between CCA, SPI, Smurfit International B.V. ("SIBV") and
           Bankers Trust Company, as collateral trustee, and Chemical
           Bank, as collateral agent (incorporated by reference to
           Exhibit 10.2 to JSC's quarterly report on Form 10-Q for
           the quarter ended March 31, 1998).
      10.3 Agreement dated as of March 24, 1998 to amend each of the
           Operating Agreement and the Rights Agreement by and
           between JSC(U.S.), CCA, SPI, SIBV and the Chase Manhattan
           Bank, as collateral agent (incorporated by reference to
           Exhibit 10.3 to JSC's quarterly report on Form 10-Q for
           the quarter ended March 31, 1998).
      10.4 Credit Agreement dated as of March 24, 1998, among JSC,
           JSC(U.S.), JSCE, Inc., the Lenders and Fronting Banks
           named herein, the Managing Agents named herein, Bankers
           Trust Company, as Senior Managing Agent and the Chase
           Manhattan Bank, as Administrative Agent and Senior
           Managing Agent (incorporated by reference to Exhibit 10.4
           to JSC's quarterly report on Form 10-Q for the quarter
           ended March 31, 1998).
      27.1 Financial Data Schedule

    b)     Reports on Form 8-K

      Form 8-K regarding a merger agreement between JSC and Stone
      Container Corporation was filed with the Securities and
      Exchange Commission on May 12, 1998.


                                  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.


                                                        JSCE, Inc.    
                                                       (Registrant)



Date  May 15, 1998                    /s/  Paul K. Kaufmann     
                                           Paul K. Kaufmann
                                        Corporate Controller
                                   (Principal Accounting Officer)