UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C. 20549
                            FORM 10-K

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


For the fiscal year ended June 30, 2000

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)

Registrants' telephone number, including area code:(816)279-1625

Securities registered pursuant to Section 12(b) of the Act: NONE

Securities registered pursuant to Section 12(g) of the Act: NONE

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.
                                        X    Yes         No

Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K.  X

State the aggregate market value of the voting stock held by non-
affiliates of registrant:  Voting stock not actively traded.
Therefore, market value of stock unknown as of 60 days prior to
the date of this filing.

Indicate the number of shares outstanding of each of the
registrants' classes of common stock as of the latest practicable
date:  969,834 (one class with $1 par value) as of September 5,
2000.

Location in this filing where exhibit index is located :   31

Total number of pages included in this filing:   39

<PAGE>


PART I

ITEM 1    BUSINESS

      (a) GENERAL DEVELOPMENT OF BUSINESS

          (1)  NARRATIVE HISTORY OF BUSINESS

             Chase General Corporation was incorporated November
             6, 1944 for the purpose of manufacturing
             confectionery products.  In 1970 Chase General
             Corporation acquired a 100% interest in its wholly-
             owned subsidiary, Dye Candy Company.  (Chase
             General Corporation and Dye Candy Company are
             sometimes referred herein as "the Company"). This
             subsidiary is the main operating company for the
             reporting entity. There were no material
             acquisitions, dispositions, new developments, or
             changes in conducting business during the past five
             fiscal years.  However, as of June 30, 1987, the
             working capital of the Company became impaired due
             to the maturity of $696,000 of notes payable.
             During the fiscal year end 1991 a portion of the
             notes were paid in full and the remaining notes
             were extended to December 20, 1994.  Negotiation of
             a second extension of the notes began during fiscal
             year ended 1995.  An extension to December 20, 2002
             was unanimously accepted December 20, 1995 with the
             agreement that this will be the final extension.
             Refer to "Management's Discussion and Analysis of
             Financial Condition and Results of Operations"
             contained in Part II of this filing for further
             information.

          (2)  Not applicable.

      (b) FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS

          The subsidiary, Dye Candy Company, operates two
          divisions, Chase Candy Company and Poe Candy Company.
          Operations in Chase Candy Company involve production
          and sale of a candy bar marketed under the trade name
          "Cherry Mash".  Operations in Poe Candy Company involve
          production and sale of coconut, peanut, chocolate, and
          fudge confectioneries.  Division products are sold to
          the same type of customers in the same geographical
          areas.  In addition, both divisions share a common
          labor force and utilize the same basic equipment and
          raw materials.  Due to the similarities in the products
          manufactured, segment reporting for the two divisions
          is not maintained by Management and, accordingly, is
          not available for inclusion in this filing.

      (c) NARRATIVE DESCRIPTION OF BUSINESSES

          (1)  DESCRIPTION OF BUSINESS DONE AND INTENDED TO BE
               DONE BY DOMINANT SINGLE INDUSTRY

             (i)    The principal products produced and methods
                    of distribution are as follows:


<PAGE>


ITEM 1    BUSINESS (CONTINUED)

          CHASE CANDY DIVISION OF DYE CANDY COMPANY produces a
          candy bar under the trade name of "Cherry Mash".  The
          bar is distributed in four case sizes:

          (1)  60 count pack
          (2)  12 boxes of 24 bars per box
          (3)  200 count shipper box
          (4)  96 count shipper box

          In addition to the regular size bar, a "mini-mash" is
          distributed in four case sizes:

          (1)  24 - 12 oz. bags
          (2)  6 jars - 60 bars per jar
          (3)  23 # wrapped bars
          (4)  22 # unwrapped bars

          The bars are sold primarily to wholesale candy and
          tobacco jobbing houses, grocery accounts, and vendors.
          "Cherry Mash" bars are marketed in the Midwest region
          of the United States.  For the years ended June 30,
          2000, 1999, and 1998, this division accounted for 61%,
          56%, and 55%, respectively, of the consolidated
          revenue of Dye Candy Company.

          POE CANDY DIVISION OF DYE CANDY COMPANY produces
          coconut, peanut, chocolate, and fudge confectioneries.
          These products are distributed in bulk or packaged.
          Principal products include:

          (1)  Coconut Bon-Bons     (6) Peanut brittle
          (2)  Coconut Stacks       (7) Peanut clusters
          (3)  Home Style Poe Fudge (8) Champion Creme Drops
          (4)  Peco Flake           (9) Jelly Candies
          (5)  Peanut Squares      (10) Coconut Cubes

          The Poe line is sold primarily on a Midwest regional
          basis to national syndicate accounts, repackers, and
          grocery accounts.  For the years ended June 30, 2000,
          1999, and 1998, this division accounted for 39%, 44%,
          and 45%, respectively, of the consolidated revenue of
          Dye Candy Company.  The Company discontinued the
          coconut cubes during the year ended June 30, 2000.

          (ii) Not applicable.

          (iii)Raw materials and packaging materials are produced
               on a national basis with products coming from most
               of the states of the United States.  Raw materials
               and packaging materials are generally widely
               available, depending, of course, on common market
               influences.

<PAGE>


ITEM 1    BUSINESS (CONTINUED)

          (iv) The largest single revenue producing product, the
               "Cherry Mash" bar, is protected by a trademark
               registered with the United States Government
               Patents Office.  Management considers this
               trademark very important to the Company. The
               trademark was renewed during the fiscal year ended
               June 30, 1985.  This trademark expires in the year
               2002.  Management and its legal representatives do
               not expect any impediment to renewing this
               trademark prior to its expiration.

          (v)  The Company is a seasonal business whereby the
               largest volume of sales occur in the spring and
               fall of each year.  The net income per quarter of
               the Company varies in direct proportion to the
               seasonal sales volume.

          (vi) Due to the seasonal nature of the business, there
               is a heavier demand on working capital in the
               summer and winter months of the year when the
               Company is building its inventories in
               anticipation of fall and spring sales.  The
               fluctuation of demand on working capital due to
               the seasonal nature of the business is common to
               the confectionery industry.  If necessary, the
               Company has the ability to borrow short term funds
               in early fall to finance operations prior to
               receiving cash collections from fall sales.  The
               Company occasionally offers extended payment terms
               of up to sixty days.  Since this practice is
               infrequent, the effect on working capital is
               minimal.

          (vii)For the years ending June 30, 2000, 1999, and
               1998, Associated Wholesale Grocers, accounted for
               20.01%, 19.64% and 18.87% of gross sales,
               respectively.  For the years ending June 30, 2000
               and June 30, 1999, Wal-Mart and its affiliates
               accounted for 20.08% and 12.06% of gross sales,
               respectively.  The loss of Associated Wholesale
               Grocers would not have an adverse effect on the
               Company as the customer purchases and distributes
               to retail outlets and these outlets would continue
               to demand products offered by Dye Candy Company.
               However, due to the affiliation certain outlets
               have with Wal-Mart, a loss of this customer would
               reduce gross sales.  The Company continues to seek
               additional markets for its products.

          (viii)Prompt, efficient service are traits demanded in
               the confectionery industry, which results in a
               continual low volume of back-orders.  Therefore,
               at no time during the year does the Company have a
               significant amount of back-orders.

          (ix) Not applicable.


<PAGE>


ITEM 1    BUSINESS (CONTINUED)

          (x)  The confectionery market for the type of product
               produced by the divisions of Dye Candy Company is
               very competitive and quality minded.  The
               confectionery (candy) industry in which the
               divisions operate is highly competitive with many
               small companies and, within certain specialized
               areas, a few competitors dominate.  In the United
               States, the dominant competitors in the coconut
               candy industry are Bradley Candy Company, Crown
               Candy Company, Vermico Candy Company, and the Poe
               Division of Dye Candy Company with approximately
               70% of the market share among them.  In the United
               States, Sophie Mae and Old Dominion have
               approximately 80% of the market share of the
               peanut candy business in which the Poe Division
               operates.  Dye Candy Company sells approximately
               90% of its products in the Midwest region with
               seasonal orders being shipped to the Southern and
               Eastern regions of the United States.  Except for
               the coconut candy industry, Dye Candy Company is
               not a dominant competitor in any of the candy
               industries in which it competes.  Dye Candy
               Company's Shares in the coconut industry
               approximates 15% to 20% annually.  This does not
               vary significantly from year to year.  Principal
               methods of  competition the Company uses include
               quality of product, price, reduced transportation
               costs due to central location, and service.  The
               Company's competitive position is positively
               influenced by labor costs being lower than
               industry average.  Chase General Corporation is
               firmly established in the confectionery market and
               through its operating divisions has many years'
               experience associated with its name.

          (xi) Not applicable.

          (xii) To the best of management's knowledge, the
               Company is presently in compliance with all
               environmental laws and regulations and does not
               anticipate any future expenditures in this regard.

          (xiii) The Company employs approximately 25 full
               time personnel year round.  This expands to
               approximately 50 full time personnel during the
               two busy production seasons in spring and fall.

      (d) FOREIGN AND DOMESTIC OPERATIONS AND EXPORT SALES

          The Company has no foreign operations or export sales.
          In addition, all domestic sales are primarily in the
          Midwest region of the United States.


<PAGE>

ITEM 2    PROPERTIES

      The registrant operates out of two buildings consisting of
the following:

      CHASE AND POE WAREHOUSE - This building located in St.
      Joseph, Missouri is owned by Dye Candy Company, a wholly-
      owned subsidiary of the registrant.  The facilities are
      currently devoted entirely to the storage of supplies, and
      the warehousing and shipping of candy products.  This
      warehouse consists of a sixty-eight year old building
      which is in fair condition and is adequate to meet present
      requirements.  The warehouse has approximately 15,000
      square feet and it is not encumbered.

      CHASE GENERAL OFFICE AND DYE CANDY COMPANY OPERATING PLANT
      - The building housing the office and plant is located in
      St. Joseph, Missouri, and was originally owned by Chase
      Building Corporation, a wholly-owned subsidiary of Dye
      Candy Company.  In March, 1975, the subsidiary was
      liquidated by Dye Candy Company.  Subsequently, the
      Company sold this facility.  The property was leased from
      the purchaser in March, 1975.  Refer to Note 3, "Notes to
      Financial Statements," for terms of the lease.  The
      building contains the general offices of Chase General
      Corporation, Dye Candy Company, and its divisions.  The
      production plant of Dye Candy Company occupies the
      remainder of the building.  The building was acquired new
      in 1964 and was specifically designed for the type of
      operations conducted by the registrant.  The facility is
      adequate to meet present requirements.  The operating
      plant is approximately 20,000 square feet and the office
      is approximately 2,000 square feet.  The Company
      renegotiated the original lease on this building which
      expired March 31, 1995.  The terms of the new lease began
      April 1, 1995 and continues for ten years.

ITEM 3    LEGAL PROCEEDINGS

      The Company is not, and has not been, a party in any
      material pending legal proceedings, other than ordinary
      litigation incidental to its business, during the fiscal
      year ended June 30, 2000, nor are any such proceedings
      contemplated.

ITEM 4    RESULTS OF VOTES OF SECURITY HOLDERS

      No matters were submitted to a vote of security holders of
      the registrant during the fourth quarter of the fiscal
      year ended June 30, 2000.


<PAGE>


PART II

ITEM 5    MARKET FOR THE REGISTRANT'S COMMON STOCK
          AND RELATED STOCKHOLDER MATTERS

      (a) MARKET INFORMATION

          There is no established public trading market for the
          common stock (par value $1 per share) of the Company.

      (b) APPROXIMATE NUMBER OF SECURITY HOLDERS

          As of September 5, 2000, the latest practicable date,
          the approximate number of record holders of common
          stock was 1,439, including individual participants in
          security listings.

      (c) DIVIDENDS

          (1)  DIVIDEND HISTORY AND RESTRICTIONS

             No dividends have been paid during the past three
             fiscal years.  Refer to Note 1, "Notes to Financial
             Statements" for dividend restrictions.

          (2)  DIVIDEND POLICY

             There is no set policy on the payment of dividends
             due to the financial condition of the Company and
             other factors.  It is not anticipated that cash
             dividends will be paid in the foreseeable future.

<TABLE>
<CAPTION>

ITEM 6    SELECTED FINANCIAL DATA

     (a)  Last five years

<S>                      <C>                   <C>             <C>         <C>        <C>
                         06-30-2000            06-30-99        06-30-98    06-30-97   06-30-96

(i)  Net sales or
     operating revenue   $2,129,785          $2,134,920      $2,113,777    $2,317,501     $2,316,031

(ii) Income (loss)
     from continuing
     operations          $   42,284         $    49,262      $  (33,502)    $  50,174     $   63,703

(iii)Income (loss)
     from continuing
     operations
     per common share *  $    (.09)          $   (.09)      $      (.17)    $    (.08)    $    (.07)

(iv) Total assets        $  800,691          $  798,961     $   770,998     $ 837,871     $  815,954

(v)  Long-term debt      $  127,672          $  162,672     $   185,305     $ 207,659     $  242,980

(vi) Cash dividend declared
     per common share    $    --             $      --      $      --       $     --      $    --

</TABLE>


(b)   No additional years are necessary to keep the summary from being
      misleading.


* Refer to Note 6, "Notes to Financial Statements" for computation of income
(loss) from continuing operations per common share.
sf
<PAGE>



ITEM 7    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS

      (a & b)  LIQUIDITY AND CAPITAL RESOURCES

          Positive cash flows from operating activities were
          generated for fiscal years ended June 30, 2000, 1999,
          and 1998 in the amounts of $28,797, $99,294, and
          $93,720, respectively.

          At various times during the years, and in anticipation
          of heavier cash demands due to seasonal production,
          plant improvements, and/or major promotional programs,
          it is the Company's practice to invest in short term
          U.S. Treasury obligations or financial institution
          certificates of deposit.  At June 30, 2000, 1999, and
          1998 the Company had $100,000, $150,000, and $100,000,
          respectively invested in short term certificates of
          deposit to meet the 2000, 1999, and 1998 fall
          production season.

          The Company continually monitors raw material pricing,
          and when a price increase/decrease is anticipated
          adjustments to inventory levels are made accordingly.
          Raw materials at June 30, 2000 were comparable to prior
          year.  Raw materials decreased approximately $28,000
          from June 30, 1998 to June 30, 1999.  The Company had
          approximately $23,000 less chocolate, peanuts and
          coconut in inventory than at June 30, 1998.  Purchase
          commitments at June 30, 2000 were approximately
          $125,000 higher than at June 30, 1999.  This increase
          was due to $26,000 in peanut contracts over prior year
          and approximately $102,000 additional purchase
          commitments of chocolate over prior year.  The
          Company's contracts for these products has been
          fulfilled and new contracts established.  Purchase
          commitments for chocolate, peanuts and coconut were
          $113,000 less at June 30, 1999 than at June 30, 1998.
          The Company watches markets for these commodities and
          purchases are made accordingly.  There were $198,900 in
          purchase commitments for peanuts at June 30, 1998 and
          of this total, there still remained a commitment to
          purchase peanuts in the amount of approximately
          $80,000.  The market price at June 30, 1998 for this
          product was higher than the cost of the commitment.

          Packaging materials are purchased in large volumes and
          carried for several years due to the high cost from
          suppliers to cut dies and print materials.  Therefore,
          when supplier pricing remains consistent over the years
          and is not predicted to increase, the Company utilizes
          its present inventory supply without making additional
          purchases necessary to lock in pricing.  Package
          inventory at June 30, 1999 was comparable to inventory
          at June 30, 1998.  Packaging materials inventory
          increased $53,000 from June 30, 1999 to June 30, 2000.
          These inventory items were purchased during the year
          ending June 30, 2000 to replenish inventory used in the
          current and prior years production.  These items were
          purchased in quantities large enough to fulfill the
          Company's packaging needs for several seasons.

          Finished goods inventory did not significantly change
          from June 30, 1999 to June 30, 2000.  The slight
          increase as due to timing of customer purchases of the
          Cherry Mash products.  Finished goods increased from
          June 30, 1998 from June 30, 1999 due to an increase in
          the Champion Creme Drops and Jelly Candies.  The items
          are purchased by the Company in large lots and resold
          to customers under the Poe name.  Purchases are
          normally made closer to the peak selling season,
          however, the Company believed that the price was right
          for getting the product into their inventory.  Finished
          goods are produced when it is most advantageous from a
          labor stand point and stored in the warehouse.  Goods
          in process remained comparable to prior years.


<PAGE>


ITEM 7    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

          The Company continues to write off equipment that is no
          longer useful to the operations of the Company.  These
          write offs have been immaterial over the past three
          years.  The Company also continues to replace old
          equipment on a yearly basis in order to streamline
          operations.  However, due to cash flow needs in other
          areas, the Company has not been able to update the
          equipment at any significant level.  The Company spent
          $23,921 during 1998 to make major improvements to
          existing equipment. In addition, $21,715 was expended
          on buildings and transportation equipment.  During the
          year ending June 30, 1999, $16,041 was spent to upgrade
          production equipment.  Also, during 1999, $15,104 was
          used to add to transportation and office equipment.
          Expenditures of $13,574 were made to upgrade existing
          production equipment, in addition, $40,053 was made to
          update transportation and office equipment during the
          year ending June 30, 2000.  Depending on results of
          operations and cash flows, the Company is hoping to
          replace their antiquated brittle cookers in the next
          several years with no set target date.

          For the past nine years, the Company has not been
          indebted except for the series B notes.  Of the
          original $630,000 Series B notes payable, $127,672
          remain outstanding at June 30, 2000.  On December 20,
          1995, the Company received approval to extend the notes
          to December 20, 2002 at the current 6% rate of
          interest, with the agreement that this was the final
          note extension.  Of the outstanding amount at June 30,
          2000, $123,351 is classified long-term and $4,321 is
          classified as current.  Realizing that the minimum
          yearly principal payment required by the note indenture
          will not satisfy the notes on December 20, 2002, the
          Company has accelerated the principal payments on the
          notes during the past four fiscal years.  It is
          anticipated that acceleration of principal payments
          will continue as cash flow has been adequate for
          operations and equipment replacement.

          The Company's lease on its manufacturing facility
          expired March 31, 1995.  The lease was renewed
          effective April 1, 1995 for a period of 10 years at
          $2,955 per month.

      (c) RESULTS OF OPERATIONS

          1998 was the first year in over ten years that the
          Company realized an operating loss.  Increased cost of
          sales and general and administrative expenses were the
          primary sources for the loss.  Company management
          realized sales were declining during the year due to
          broker turnover.  However, in anticipation of future
          increased sales, management decided to retain their
          current labor force during the slower productive times.
          This decision was made due to the excellent quality of
          the current labor force as well as the tight job
          market.  Management redirected certain job functions to
          concentrate more on internal improvements of the plant;
          however, the overall production per hour declined for
          those whose job functions could not be redirected.  It
          was the intention of the Company to re-evaluate the
          quantity of the labor force as well as their
          efficiencies for the year ending June 30, 1999.



<PAGE>

ITEM 7    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

          The company realized success due to this evaluation,
          and for the year ending June 30, 1999 net sales
          increased by 1% and the cost of sales decreased by 1%.
          Operating expenses were closely monitored during 1999
          and decreased by 13% for the year.  This was
          accomplished by decreasing selling expenses by 12%, and
          general and administrative by 15%.  During the year
          ending June 30, 2000, net sales and the cost of sales
          remained comparable to prior year.

          Operating expenses increased by 2.9% from June 30, 1999
          through June 30, 2000.  This increase was due to
          increased general and administration expenses.  While
          most general and administration expenses remained
          constant, insurance expense increased by $9,981 and bad
          debt expense increased by $24,615.  Insurance increased
          as rates for general and liability insurance continue
          to go up.  During the year ending June 30, 2000 the
          Company had several large customer accounts which had
          to be written off.  Of the current year write off of
          $20,813, $9,240 was from one customer that purchased
          product and immediately declared bankruptcy.  During
          the year ending June 30, 1999 the Company netted $4,012
          more from collections of prior write-off than were
          ultimately written off.  The Company continues a very
          aggressive collection effort.  The aging of accounts
          receivable is reviewed on a regular basis and accounts
          which become overdue are pursued for collection.

          Selling expenses decreased by $30,381 during the year
          ending June 30, 2000.  This decrease was due to the
          Company change in policy on brokers fees or commissions
          to customers.  The Company discontinued allowing these
          fees as a reduction of selling price.

          Under the leadership of the CEO and his sales staff,
          the Company has stabilized its customer base.
          Certainly some customers were lost during 2000, but
          those have been replaced.  The Company continues to
          look for new markets but only when the addition of a
          new market is profitable.

          In order to maintain funds to finance operations and
          meet debt obligations, it is the intention of
          management to continue its efforts to expand the
          present market area and increase sales to its
          customers. Management also intends to continue tight
          control on all expenditures.

               There has been no material impact from inflation
          and changing prices on net sales and revenues or on
          income from continuing operations for the last three
          fiscal years. The Company does not feel that any
          accounting changes, as proposed by the Financial
          Accounting Standards Board, with effective dates after
          the date of this report, will have a material effect on
          future financial statements of the Company.

          The Company's only computer application, SBT software,
          involves the payroll processing accounting function.



<PAGE>


ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
        RISK

          Not applicable.  Refer to Note 7, "Notes to Financial
          Statements" for fair value of financial instruments as
          of June 30, 2000.

ITEM 8    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

      Financial statements meeting the requirements of
      Regulation S-X are contained on pages 12 through 26 of the
      filing.

      (a) SELECTED QUARTERLY FINANCIAL DATA

          Exempt from requirements per second major condition for
          smaller companies.

      (b) INFORMATION ABOUT OIL AND GAS PRODUCING ACTIVITIES

          Registrant is not engaged in any oil and gas producing
          activities.

ITEM 9    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
          ON ACCOUNTING AND FINANCIAL DISCLOSURE

      Not applicable.  There has been no change in accountants
      for approximately twenty-five years and no disagreements
      on accounting or financial disclosure.

<PAGE>




                  INDEPENDENT AUDITOR'S REPORT

Board of Directors
Chase General Corporation
St. Joseph, Missouri

We have audited the accompanying consolidated balance sheets of
Chase General Corporation and Subsidiary as of June 30, 2000 and
1999 and the related consolidated statements of operations,
stockholders' equity, and cash flows for each of the years in the
three-year period ended June 30, 2000.  These consolidated
financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial
position of Chase General Corporation and Subsidiary as of June
30, 2000 and 1999, and the results of their operations and their
cash flows for each of the years in the three-year period ended
June 30, 2000, in conformity with generally accepted accounting
principles.

Clifton Gunderson L.L.C.
St. Joseph, Missouri
August 17, 2000



<PAGE>


            CHASE GENERAL CORPORATION AND SUBSIDIARY
                   CONSOLIDATED BALANCE SHEETS
                     JUNE 30, 2000 AND 1999

                             ASSETS

                                           2000           1999
CURRENT ASSETS
  Cash and cash equivalents             $  146,779  $   206,609
  Receivables:
     Trade, less allowance for doubtful
     accounts of $11,393 in 2000 and
     $11,516 in 1999                       129,018      138,959
     Other receivables                       3,239           --
  Inventories:
     Finished goods                         85,147       73,106
     Goods in process                        4,872        3,243
     Raw materials                          53,232       52,930
     Packaging materials                   123,938       70,878
  Prepaid expense                           34,960       35,469
  Prepaid income taxes                       1,158           --

       Total current assets                582,343      581,194

PROPERTY AND EQUIPMENT
  Land                                      35,000       35,000
  Buildings                                 85,738       85,738
  Machinery and equipment                  676,914      663,341
  Trucks and autos                         104,513       99,113
  Office equipment                          49,123       31,909
  Leasehold improvements                   121,356      121,356
     Total, at cost                      1,072,644    1,036,457
  Less accumulated depreciation            854,296      818,690

       Total property and equipment        218,348      217,767












TOTAL ASSETS                            $  800,691  $   798,961


<PAGE>

                 LIABILITIES AND STOCKHOLDERS' EQUITY

                                              2000         1999
CURRENT LIABILITIES
  Accounts payable                      $   54,718  $    48,383
  Series B notes payable, related
    parties, current maturities              1,642        2,305
  Series B notes payable, unrelated
    parties, current maturities              2,679        3,761
  Accrued expense:
     Interest                                8,711       10,440
     Income taxes                               --        8,855
     Other                                  26,473       27,778

       Total current liabilities            94,223      101,522

LONG-TERM LIABILITIES
  Series B notes payable,
    related parties                         46,644       59,219
  Series B notes payable,
    unrelated parties                       76,707       97,387

       Total long-term liabilities         123,351      156,606

       Total liabilities                   217,574      258,128

STOCKHOLDERS' EQUITY
  Capital stock issued and outstanding:
     Prior cumulative preferred stock,
       $5 par value:
       Series A (liquidation
         preference $1,245,000
         and $1,215,000 respectively)      500,000      500,000
       Series B (liquidation
         preference $1,200,000
         and $1,170,000 respectively)      500,000      500,000
     Cumulative preferred stock,
       $20 par value:
       Series A (liquidation
         preference $2,970,550
         and $2,912,017 respectively)    1,170,660    1,170,660
       Series B (liquidation
         preference $484,104
         and $474,565 respectively)        190,780      190,780
     Common stock, $1 par value            969,834      969,834
  Paid-in capital in excess of par       3,134,722    3,134,722
  Accumulated deficit                   (5,882,879)  (5,925,163)

       Total stockholders' equity          583,117      540,833



TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                  $  800,691  $   798,961


 These consolidated financial statements should be read only in
     connection with the accompanying summary of significant
     accounting policies and notes to consolidated financial
                           statements.

<PAGE>



            CHASE GENERAL CORPORATION AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF OPERATIONS
            YEARS ENDED JUNE 30, 2000, 1999 AND 1998


                         2000           1999           1998

NET SALES           $2,129,785     $2,134,920     $2,113,777

COST OF SALES        1,665,882      1,677,258      1,696,845

     Gross profit      463,903        457,662        416,932

OPERATING EXPENSES
  Selling expenses     218,211        246,592        280,764
  General and
    administrative
    expenses           188,660        148,838        175,442

     Total operating
       expenses        406,871        395,430        456,206

       Income
        (loss)
        from
        operations      57,032         62,232        (39,274)

OTHER INCOME (EXPENSE)
  Interest income        6,323          6,498          5,896
  Miscellaneous income     347          1,758            691
  Interest expense      (8,842)       (10,571)       (12,077)
  Other expense           (173)          --              --

     Total other
      income
      (expense)         (2,345)        (2,315)        (5,490)

       Income
        (loss)
        before
        income
        taxes           54,687         59,917        (44,764)

PROVISION (CREDIT)
  FOR INCOME TAXES      12,403         10,655        (11,262)

NET INCOME (LOSS)   $   42,284     $   49,262     $  (33,502)

(LOSS) PER SHARE
  OF COMMON STOCK   $     (.09)    $     (.09)     $    (.17)








 These consolidated financial statements should be read only in
     connection with the accompanying summary of significant
     accounting policies and notes to consolidated financial
                           statements.


<PAGE>


                    CHASE GENERAL CORPORATION AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                    YEARS ENDED JUNE 30, 2000, 1999 AND 1998


                                         PRIOR CUMULATIVE          CUMULATIVE
                                          PREFERRED STOCK       PREFERRED STOCK
                                        SERIES A  SERIES B   SERIES A  SERIES B


BALANCE (DEFICIT), JUNE 30, 1997        $500,000  $500,000  $1,170,660 $190,780

     Net loss                                --        --        --       --

BALANCE (DEFICIT), JUNE 30, 1998         500,000   500,000   1,170,660  190,780

     Net income                              --        --        --        --

BALANCE (DEFICIT), JUNE 30, 1999         500,000   500,000   1,170,660  190,780

     Net income                              --        --        --        --

BALANCE (DEFICIT), JUNE 30, 2000        $500,000  $500,000  $1,170,660 $190,780


                    CHASE GENERAL CORPORATION AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                    YEARS ENDED JUNE 30, 2000, 1999 AND 1998
                                   (CONTINUED)


                                   COMMON     PAID-IN    ACCUMULATED
                                   STOCK      CAPITAL      DEFICIT     TOTAL


BALANCE (DEFICIT), JUNE 30, 1997   $969,834  $3,134,722  $(5,940,923) $525,073

     Net loss                           --        --         (33,502)  (33,502)

BALANCE (DEFICIT), JUNE 30, 1998    969,834   3,134,722   (5,974,425)  491,571

     Net income                         --        --          49,262    49,262

BALANCE (DEFICIT), JUNE 30, 1999    969,834   3,134,722   (5,925,163)  540,833

     Net income                         --        --          42,284    42,284

BALANCE (DEFICIT), JUNE 30, 2000   $969,834  $3,134,722  $(5,882,879) $583,117



 These consolidated financial statements should be read only in connection with
    the accompanying summary of significant accounting policies and notes to
                       consolidated financial statements.

<PAGE>







            CHASE GENERAL CORPORATION AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF CASH FLOWS
            YEARS ENDED JUNE 30, 2000, 1999 AND 1998


                                 2000        1999       1998

CASH FLOWS FROM OPERATING ACTIVITIES
  Collections from customers $2,119,123  $2,094,487   $2,087,531
  Interest received               6,323       6,498        5,896
  Other income                    1,182       2,042        1,926
  Income tax refunds               --        24,710        2,384
  Cost of sales, selling,
     general and administrative
     expenses paid           (2,075,152) (2,015,534)  (1,979,084)
  Interest paid                 (10,571)    (12,109)     (14,097)
  Income tax paid               (12,108)       (800)     (10,836)

     Net cash provided by
       operating activities      28,797      99,294       93,720

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of property and
     equipment                  (53,627)    (31,145)     (45,636)

     Net cash used in investing
     activities                 (53,627)    (31,145)     (45,636)

CASH FLOWS FROM FINANCING ACTIVITIES
  Principal payments on notes
     payable, Series B          (35,000)    (22,633)     (28,648)

     Net cash used in financing
       activities               (35,000)    (22,633)     (28,648)

NET INCREASE (DECREASE) IN CASH
  AND CASH EQUIVALENTS          (59,830)     45,516       19,436

CASH AND CASH EQUIVALENTS,
  BEGINNING OF YEAR             206,609     161,093      141,657

CASH AND CASH EQUIVALENTS,
  END OF YEAR                  $146,779    $206,609     $161,093


<PAGE>




                                          2000       1999      1998
RECONCILIATION OF NET INCOME TO NET
  CASH PROVIDED BY OPERATING ACTIVITIES

  Net income (loss)                   $ 42,284  $ 49,262   $(33,502)

  Adjustments to reconcile net income
     (loss) to net cash provided by
     operating activities:
     Depreciation                       52,211    55,813     66,019
     Loss on disposal of equipment         835       284      1,235
     Provision for doubtful accounts    20,603    (4,012)    15,311
     Effects of changes in operating
     assets and liabilities:
       Trade accounts receivable       (10,662)  (40,433)   (26,246)
       Other receivables                (3,239)      --       --
       Income tax receivable                --    24,710    (24,710)
       Inventories                     (67,032)   11,256     90,098
       Prepaid expense                     509        80      4,242
       Prepaid income taxes             (1,158)    1,000      4,996
       Accounts payable                  6,335   (10,811)        32
       Income tax payable               (8,855)    8,855         --
       Accrued liabilities              (3,034)    3,290     (3,755)

NET CASH PROVIDED BY
  OPERATING ACTIVITIES                $ 28,797  $ 99,294   $ 93,720


 These consolidated financial statements should be read only in
     connection with the accompanying summary of significant
     accounting policies and notes to consolidated financial
                           statements.


<PAGE>


            CHASE GENERAL CORPORATION AND SUBSIDIARY
           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Chase General Corporation was incorporated on November 6, 1944 in
the State of Missouri for the purpose of manufacturing
confectionery products. The Company grants credit terms to
substantially all customers, consisting of repackers, grocery
accounts, and national syndicate accounts, who are primarily
located in the Midwest region of the United States.  The
Company's fiscal year ends June 30.  Significant accounting
policies followed by the Company are presented below:

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiary, Dye Candy Company.  All
intercompany transactions and balances have been eliminated in
consolidation.

ACCOUNTING METHOD

The Company and its subsidiary use the accrual method of
accounting.  Under this method, revenue is recognized when earned
and expense is recognized when the obligation is incurred.

SEGMENT REPORTING OF THE BUSINESS

The subsidiary, Dye Candy Company, operates two divisions, Chase
Candy Company and Poe Candy Company.  Operations in Chase Candy
Company involve production and sale of a candy bar marketed under
the trade name "Cherry Mash".  Operations in Poe Candy Company
involve production and sale of coconut, peanut, chocolate, and
fudge confectioneries.  Division products are sold to the same
type of customers in the same geographical areas.  In addition,
both divisions share a common labor force and utilize the same
basic equipment and raw materials.  Due to the similarities in
the products manufactured, segment reporting for the two
divisions has not been disclosed in these financial statements.

USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS

The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from those estimates.



<PAGE>



            CHASE GENERAL CORPORATION AND SUBSIDIARY
           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


CASH AND CASH EQUIVALENTS

The Company considers all liquid investments with a maturity of
three months or less when purchased to be cash equivalents.

INVENTORIES

Inventories are carried at the "lower of cost or market value,"
cost being determined on the "first-in, first-out" basis of
accounting.  Finished goods and goods in process include a
provision for manufacturing overhead.


PROPERTY AND EQUIPMENT

Depreciation is computed by the straight-line method for
additions prior to 1981, and by the declining balance methods for
assets acquired after 1980.

The Company's property and equipment are being depreciated on
straight-line and accelerated methods over the following
estimated useful lives:

          Buildings                             25   years
          Machinery and equipment          3 -  10   years
          Trucks and autos                 3  -  5   years
          Office equipment                 5 -  10   years
          Leasehold improvements           8 - 31.5  years


INCOME TAXES

The Company has no significant timing differences that would give
rise to deferred tax items.


    This information is an integral part of the accompanying
               consolidated financial statements.



<PAGE>


            CHASE GENERAL CORPORATION AND SUBSIDIARY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - NOTES PAYABLE, SERIES B

On December 1, 1967, the Company issued Collateral Sinking Fund
6% Income Registered Notes in the amount of $680,000.  These
notes were issued to extend and consolidate notes and
certificates of indebtedness then held by F. S. Yantis & Co.,
Inc. (Yantis & Co.), aggregating approximately $569,000 together
with unpaid accrued interest of $111,000.  Interest is payable
from "surplus net earnings" on the 20th day of December following
the fiscal year end.

Pursuant to a supplemental indenture, dated April 1, 1968 and
executed in compliance with a request by Yantis & Co. in
furtherance of the winding-up of its affairs, the original notes
aggregating $680,000 were reissued in two series designated as A
and B, respectively.  The Series A notes aggregating $50,000 had
priority and were retired during the year ended June 30, 1984.
The Series B notes totaling $630,000 are held by the former
shareholders of Yantis & Co.  During the years ended June 30,
2000 and 1999, $35,000 and $22,633 principal was paid on the
Series B notes, respectively.

As of June 30, 2000 and 1999, the outstanding Series B notes
total $127,672 and $162,672, respectively. Of these amounts
$48,286 and $61,524 are owed to officers and directors of the
Company.

The Company has agreed to secure the payment of principal and
interest on the notes by the pledge of the capital stock of Dye
Candy Company under an indenture dated December 1, 1967, and
supplemental indenture dated June 30, 1970.

The indenture provides for a sinking fund deposit to be made by
the Company each year of not less than one-fourth of the
Company's fiscal year "surplus net earnings," which exceeds the
amount of interest required to be paid on the outstanding notes.
If at any time the sinking fund deposits aggregate $10,000 or
more, the same will be applied to prepayment of the notes
outstanding.  At June 30, 1998, all sinking fund deposits had
been disbursed to the noteholders.  The "surplus net earnings" is
the amount by which the consolidated net income, after adding
back the current year's interest on the outstanding notes,
exceeds a $25,000 working capital reserve.

See Note 2 for computation of "surplus net earnings" and sinking
fund requirements for years ended June 30, 2000, 1999, and 1998.


<PAGE>



            CHASE GENERAL CORPORATION AND SUBSIDIARY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - NOTES PAYABLE, SERIES B (CONTINUED)

Principal payments are made by the trustee under terms of the
indenture and may be prepaid at the option of the Company.
During the year ended June 30, 1991, the notes were extended to
December 20, 1994.  Effective December 20, 1995, the notes were
extended to December 20, 2002 at the same 6% interest rate and
with the agreement that this will be the final note extension.
Due to the nature of sinking fund requirements, it is not
practicable to include a schedule of future principal payments.

Dividends, other than stock dividends, may not be paid on capital
stock at any time interest on the notes is not current.


NOTE 2 - "SURPLUS NET EARNINGS" AND SINKING FUND REQUIREMENTS

The following is an analysis of the computation of the "surplus
net earnings" and sinking fund requirements for years ended June
30:
                                                2000     1999       1998
NET INCOME (LOSS)
  Chase General Corporation                  $(10,798)  $(11,829) $(12,410)
  Dye Candy Company                            53,082     61,091   (21,092)

     Consolidated net income (loss)            42,284     49,262   (33,502)

NON-ALLOWANCE EXPENSE DEDUCTION
  Interest on indebtedness                      8,842     10,571    12,077

       Net income (loss) basis
        for "surplus net earnings"             51,126     59,833   (21,425)

DEDUCTIONS FROM INCOME BASIS
  Set aside as reserve for
    accumulation of working capital            25,000    25,000     25,000

          "Surplus net earnings"
            (loss)                             26,126    34,833    (46,425)

INTEREST PAYMENT REQUIRED                       8,842    10,571     12,077

EXCESS "SURPLUS NET EARNINGS" (LOSS)
  OVER INTEREST PAYMENT REQUIRED             $ 17,284  $ 24,262   $(58,502)

SINKING FUND REQUIREMENT                     $  4,321  $  6,066   $    --





<PAGE>


            CHASE GENERAL CORPORATION AND SUBSIDIARY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 3 - COMMITMENTS

Dye Candy Company leases its manufacturing facilities located at
3600 Leonard Road, St. Joseph, Missouri.  The period of the lease
is from April 1, 1995 through March 31, 2005, and requires
payments of $2,955 per month.  Rental expense for the years ended
June 30, 2000, 1999 and 1998 totaled $35,460, $35,460 and
$35,460, respectively, and is included in cost of sales.

Future minimum lease payments under this lease are as follows:

Year ending June 30, 2001                            $  35,460
Year ending June 30, 2002                               35,460
Year ending June 30, 2003                               35,460
Year ending June 30, 2004                               35,460
Year ending June 30, 2005                               29,550

  Total                                              $ 171,390


The manufacturing facilities referred to above were owned by Dye
Candy Company prior to March 31, 1975.  When the building was
sold on March 31, 1975, the gain on the sale of the building was
included in the income of Dye Candy Company in the year of sale.
Financial Accounting Standards Board Statement 13, Accounting for
leases, calls for the amortization of any profit or loss on a
sale-leaseback transaction to be amortized in proportion to the
amortization of the leased asset.  However, the effective date of
FASB 13 was for transactions entered into after January 1, 1977.

As of June 30, 2000, the Company had raw materials purchase
commitments with four vendors totaling $286,289.



<PAGE>


            CHASE GENERAL CORPORATION AND SUBSIDIARY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 4 - CAPITAL STOCK

Capital stock authorized, issued and outstanding as of June 30,
2000 and 1999 is as follows:

                                                  SHARES
                                                      ISSUED AND
                                        AUTHORIZED   OUTSTANDING

Prior Cumulative Preferred Stock,
     $5 par value:
          6% Convertible                  240,000
               Series A                                100,000
               Series B                                100,000

Cumulative Preferred Stock,
     $20 par value:
          5% Convertible                  150,000
               Series A                                 58,533
               Series B                                  9,539

Common Stock, $1 par value
     Reserved for conversion of
          Preferred Stock -
               1,033,333 shares         2,000,000      969,834

Cumulative Preferred Stock dividends in arrears at June 30, 2000
and 1999, totaled $5,899,654 and $5,771,582, respectively.  Total
dividends in arrears, on a per share basis, consist of the
following at June 30:

                                             2000      1999
6% Convertible
     Series A                                $12       $12
     Series B                                 12        12

5% Convertible
     Series A                                 51        50
     Series B                                 51        50




<PAGE>

            CHASE GENERAL CORPORATION AND SUBSIDIARY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 4 - CAPITAL STOCK (CONTINUED)

Six percent convertible prior cumulative preferred stock may,
upon thirty days prior notice, be redeemed by the Corporation at
$5.25 a share plus unpaid accrued dividends to date of
redemption.  In the event of voluntary liquidation, holders of
this stock are entitled to receive $5.25 per share plus accrued
dividends.  It may be exchanged for common stock at the option of
the shareholders in the ratio of four common shares for one share
of Series A and 3.75 common shares for one share of Series B.

The Company has the privilege of redemption of 5% convertible
cumulative preferred stock at $21.00 a share plus unpaid accrued
dividends.  In the event of voluntary or involuntary liquidation,
holders of this stock are entitled to receive $20.00 a share plus
unpaid accrued dividends.  It may be exchanged for common stock
at the option of the shareholders, in the ratio of 3.795 common
shares for one of preferred.


NOTE 5 - PROVISION FOR INCOME TAXES

The provision for income taxes consists of the following as of
June 30:

                                    2000      1999      1998

Federal income tax                 $ 9,213   $ 7,551    $(8,817)
State income tax                     3,190     3,104     (2,445)

     Total provision for
          income taxes             $12,403   $10,655   $(11,262)

The Company's provision for income taxes differs from the tax
that would result from applying statutory federal and state
income tax rates primarily because of nondeductible expenses.




<PAGE>


            CHASE GENERAL CORPORATION AND SUBSIDIARY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 6 - (LOSS) PER SHARE OF COMMON STOCK

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



                                          2000     1999        1998

Net income (loss)                       $ 42,284  $ 49,262  $ (33,502)

Preferred dividend requirements:
     6% Prior Cumulative Preferred,
          $5 par value                    60,000    60,000     60,000
     5% Convertible Cumulative
          Preferred, $20 par value        68,072    68,072     68,072

          Total dividend requirements    128,072   128,072    128,072

               Net loss -
                 common stockholders    $(85,788) $(78,810) $(161,574)

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

               Loss per share           $   (.09) $   (.09)  $   (.17)


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

NOTE 7 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's financial instruments consist principally of cash
and cash equivalents, trade receivables and payables, and notes
payable.  There are no significant differences between the
carrying value and fair value of any of these financial
instruments.

NOTE 8 - CONCENTRATION OF CREDIT RISK

For the year ending June 30, 1998 one customer accounted for
18.87% of the gross sales.  For the years ending June 30, 2000
and 1999, two customers accounted for 40.09% and 31.70%,
respectively, of the gross sales.

For the year ending June 30, 2000, two customers accounted for
53.01% of accounts receivable and for the year ending June 30,
1999 one customer accounted for 32.79% of accounts receivable.
For the year ending June 30, 1998, four customers accounted for
47.58% of accounts receivable.


    This information is an integral part of the accompanying
               consolidated financial statements.

<PAGE>


PART III

ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

        (a)    DIRECTORS

     Name           Age  Periods of Service as Director     Terms

     Barry M. Yantis     55   1980 to present              One year
     Brian A. Yantis     54   July 16, 1986                One year
     Brett A. Yantis     32   January 21, 1999 to present  One year

           An insufficient number of proxies were returned by
           the shareholders for the January 21, 2000 annual
           stockholder meeting.  Therefore, the Directors noted
           above are continuing for an additional one year term.

           See Item 10(b) for offices held by Barry M. Yantis
           and Brian A. Yantis.

        (b)    EXECUTIVE OFFICERS

                                            Years of
                                           Service as
Name               Age       Position      an Officer         Term

Barry M. Yantis     55        President and  20     Until successor elected
                              Treasurer

Brian A. Yantis     54        Vice-President  9     Until successor elected
                              and Secretary

        (c)    CERTAIN SIGNIFICANT EMPLOYEES

           There are no significant employees other than above.

        (d)    FAMILY RELATIONSHIPS

           Barry M. Yantis, and Brian A. Yantis are brothers.
           Brett A. Yantis is the Son of Barry M. Yantis.

        (e)    BUSINESS EXPERIENCE

           (1) Barry M. Yantis, president and treasurer has
           been an officer of the Company for twenty-two
           years, fourteen years as vice-president and eight
           years as president.  He has been on the board of
           directors for twenty-two years and has been
           associated with the candy business for twenty-six
           years.

           Brian A. Yantis, vice-president and secretary has
           been an officer of the Company for eight years as
           vice-president and since May, 1992 as secretary.  He
           has been associated with the insurance business for
           twenty-seven years and has been a vice-president of
           Aon Risk Services in Chicago, Illinois during the
           past twelve years.


<PAGE>

ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
          (CONTINUED)

               Brett A. Yantis was elected to the position of
               director during the year ending June 30, 1999.
               Brett has been associated with the Company for
               seven years.

           (2) The directors and executive officers listed above
               are also the directors and executive officers of
               Dye Candy Company.

        (f)    INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

           Not applicable

        (g)    PROMOTERS AND CONTROL PERSONS

           Not applicable


ITEM 11 - EXECUTIVE COMPENSATION

        (a)    GENERAL

           Executive officers are compensated for their services
           as set forth in the Summary Compensation Table.
           These salaries are approved yearly by the Board of
           Directors.

        (b)

<TABLE>
<CAPTION>

                           SUMMARY COMPENSATION TABLE

<S>                  <C>           <C>      <C>        <C>        <C>         <C>      <C>        <C>
                                                                     LONG TERM COMPENSATION
                                    ANNUAL COMPENSATION                    AWARDS      PAYOUTS
                                                         OTHER    RESTRICTED
NAME AND              FISCAL                             ANNUAL     STOCK     OPTION/   LTIP       ALL OTHER
PRINCIPAL POSITION   YEAR END       SALARY    BONUS   COMPENSATION  AWARD(S)  SARS(#)  PAYOUTS   COMPENSATION

Barry M. Yantis     /1/ 06-30-00   $112,800  $10,000     $2,240       --        --        --           --


Barry M. Yantis     /1/ 06-30-99   $112,950  $ 8,000     $2,240       --        --        --           --

Barry M. Yantis     /1/ 06-30-98   $100,000  $15,750     $2,240       --        --        --           --


/1/  CEO

/2/  No other compensation than that which is listed in compensation table.

/3/  No other officers are compensated for their services besides those listed in this compensation table.


</TABLE>

        (c)    OPTION/SAR GRANTS TABLE

           Not applicable

        (d)    AGGREGATED OPTION/SAR EXERCISES AND FISCAL YEAR-
               END OPTION/SAR VALUE TABLE

           Not applicable

        (e)    LONG-TERM INCENTIVE AWARDS TABLE

           Not applicable


<PAGE>

ITEM 11 - EXECUTIVE COMPENSATION (CONTINUED)

        (f)    DEFINED BENEFIT OR ACTUARIAL PLAN DISCLOSURE

           Not applicable

        (g)    COMPENSATION OF DIRECTORS

           Directors are not compensated for services on the
           board.  The directors are reimbursed for travel
           expenses incurred in attending board meetings.
           During the fiscal year 2000, $120 of travel expenses
           were reimbursed to board members, Brian A. Yantis,
           and Barry M. Yantis, respectively.

        (h)    EMPLOYMENT CONTRACTS AND TERMINATION OF
               EMPLOYMENT AND CHANGE IN CONTROL ARRANGEMENTS

           No employment contracts exist with any executive
           officers.  In addition, there are no contracts
           currently in place regarding termination of
           employment or change in control arrangements.

        (i)    REPORT ON REPRICING OF OPTION/SARS

           Not applicable

        (j)    ADDITIONAL INFORMATION WITH RESPECT TO
               COMPENSATION COMMITTEE INTERLOCKS AND INSIDER
               PARTICIPATION IN COMPENSATION DECISIONS

           The registrant has no formal compensation committee.
           The board of directors, Brian A. Yantis, Barry M.
           Yantis, and Brett A. Yantis annually approve the
           compensation of Barry M. Yantis, CEO.

        (k)    BOARD COMPENSATION COMMITTEE REPORT ON EXECUTIVE
               COMPENSATION

           The board bases the annual salary of the CEO on
           the Company's prior year performance.  The criteria
           is based upon, but is not limited to, market area
           expansion, gross profit improvement, control of
           operating expenses, generation of positive cash flow,
           and hours devoted to the business during the previous
           fiscal year.

        (l)    PERFORMANCE GRAPH

           Not applicable as there are no dividends available to
           distribute to common stockholders after preferred
           dividends are met.  In addition, there is no market
           value price for the common stock (par value $1 per
           share) as there is no public trading market for the
           Company's stock.


<PAGE>


ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
        MANAGEMENT

                                             AMOUNTS
                                             AND
                                             NATURE
                                             OF
                                             BENEFICIAL
TITLE OF CLASS        NAME AND ADDRESS       OWNERSHIP      % OF CLASS

(a)  Security ownership of certain beneficial owners

  Common; par value      Barry Yantis        194,385/1/      16.8% /2/
  $1 per share           5605 Osage Drive
                         St. Joseph, Mo.
                         64503

                         Brian Yantis        97,192/1/      8.4% /2/
                         1210 E. Clarendon
                         Arlington Heights, IL.
                         60004

(b) Security ownership of management

  Common; par value      All directors       110,856        11.4%
  $1 per share           and officers
                         as a group

  Prior Cumulative       All directors       21,533         21.5%
  Preferred,             and officers
  $5 par value:          as a group
  Series A,
  6% convertible

  Prior Cumulative       All directors       21,533         21.5%
  Preferred              and officers
  $5 par value:          as a group
  Series B,
  6% convertible

  Cumulative             All directors        3,017         5.2%
  Preferred,             and officers
  $20 par                as a group
  value:
  Series A,
  $5 convertible

                                   AMOUNTS
                                   AND
                                   NATURE
                                   OF
                                   BENEFICIAL
TITLE OF CLASS  NAME AND ADDRESS   OWNERSHIP           % OF CLASS

  Cumulative   All directors            630            6.6%
  Preferred,   and officers
  $20 par      as a group
  value:
  Series B,
  $5 convertible

 /1/  Includes 180,721 shares which could be received
      within 30 days upon conversion of preferred stock.

/2/   Reflects the percentage 291,577 shares would
      represent if the 180,721 shares above were converted to
      common stock.

(c)   No known change of control is anticipated.


<PAGE>


ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

        (a)   TRANSACTIONS WITH MANAGEMENT AND OTHERS

           No reportable transactions with management and others,
           to which the registrant or its subsidiary was a party,
           have occurred since the registrant's last fiscal year.
           In addition, there are no such currently proposed
           transactions.

        (b)   CERTAIN BUSINESS RELATIONSHIPS

           Not applicable

        (c)   INDEBTEDNESS OF MANAGEMENT

           Not applicable

        (d)   TRANSACTIONS WITH PROMOTERS

           Not applicable

                             PART IV

ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
        ON FORM 8-K

        (a)   DOCUMENTS FILED AS PART OF THE FORM 10-K

              (1)  The following are included in Part II of
                   this report:
                                                               Page Number

          Independent Auditor's Report                           12
          Consolidated Balance Sheets - June 30, 2000 and 1999   13 - 14
          Consolidated Statements of Operations for the years
            ended June 30, 2000, 1999, and 1998                  15
          Consolidated Statements of Stockholders' Equity for
            the years ended June 30, 2000, 1999, and 1998        16
          Consolidated Statements of Cash Flows for the years
            ended June 30, 2000, 1999, and 1998                  17 - 18
          Summary of Significant Accounting Policies             19 - 20
          Notes to Consolidated Financial Statements             21 - 26


<PAGE>

ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
        ON FORM 8-K (CONTINUED)

           (2)  The following are included in Part IV of this
           report:

                                                              Page Number

        Independent Auditor's Report on Supplemental Schedules     33

        Schedule   I:  Condensed Financial Information of
          the Registrant                                           34 - 37

        Schedule  II:  Valuation and Qualifying Accounts,
           June 30, 2000, 1999, and 1998                           38


        (b)   REPORTS ON FORM 8-K

             No reports on Form 8-K were filed during the fourth
           quarter of the year ended June 30, 2000.

        (c)   EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-K

             The following have been previously filed and are
             incorporated by reference to prior years' Forms 10-
             K filed by the Registrant:

           (3) Articles of Incorporation and By-Laws

                The following explanations are included in
           "Notes to Financial Statements" in Part II of this
           report:

                    (4)  Rights of security holders including
               indentures - Refer to Notes 1 and 4.
                    (11)Computation of per share earnings - Refer
               to Note 6.
                    (21)Subsidiaries of registrant - Refer to
               "Summary of Significant Accounting Policies".

           (d)  FINANCIAL STATEMENT SCHEDULES REQUIRED BY
           REGULATION S-X

           Schedules required by Regulation S-X contained on page
           34 through 38 have been excluded from the annual
           report to the shareholders.

           SUPPLEMENTAL INFORMATION TO BE FURNISHED, FILED
           PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
           ACT OF 1934, BY REGISTRANTS WHICH HAVE NOT REGISTERED
           SECURITIES PURSUANT TO SECTION 12 OF THE SECURITIES
           EXCHANGE ACT OF 1934.

        (1) With this filing, the Registrant is furnishing to
            the Commission four (4) copies of the Proxy
            Statement regarding the January 21, 2000 annual
            meeting mailed to security holders during the 2000
            fiscal year.

        (2) For the 2000 fiscal year, the Registrant will
            furnish a copy of the annual report and any Proxy
            information to the Commission at time the
            aforementioned are mailed to security holders.

<PAGE>


     INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTAL SCHEDULES


In connection with the audit of the consolidated financial
statements of Chase General Corporation and Subsidiary, we have
also audited supplemental schedules I and II.  In our opinion,
these schedules present fairly, in all material respects, in
relation to the consolidated financial statements taken as a
whole, the information required to be stated therein.




Clifton Gunderson L.L.C.
St. Joseph, Missouri
August 17,  2000


<PAGE>




                                                                   SCHEDULE I

            CHASE GENERAL CORPORATION AND SUBSIDIARY
        CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

                    CHASE GENERAL CORPORATION
                        (REGISTRANT ONLY)
                    CONDENSED BALANCE SHEETS

                     JUNE 30, 2000 AND 1999

                             ASSETS

                                                 2000          1999

Investment in subsidiary - at equity         $   719,500    $   713,945

TOTAL ASSETS                                 $   719,500    $   713,945

               LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Series B notes payable and accrued interest,
     unrelated parties                       $     84,802   $   107,693
Series B notes payable and accrued interest,
     related parties                               51,581        65,419

     Total liabilities                            136,383       173,112

Capital stock                                   3,331,274     3,331,274
Paid in capital in excess of par                3,134,722     3,134,722
Accumulated (deficit)                          (5,882,879)   (5,925,163)

     Total stockholders' equity                   583,117       540,833

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $    719,500   $   713,945


(1)The restricted assets of 100% consolidated subsidiary, Dye
   Candy Company, are $800,691 and $798,961 as of June 30, 2000
   and 1999, respectively.  See "Notes to Financial Statements"
   in Part II of this report for restrictions.

(2)No cash dividends have been paid by the registrants' wholly-
   owned subsidiary, Dye Candy Company, during the past three
   fiscal years.


<PAGE>

                                                                    SCHEDULE I
                                                                    (Continued)


            CHASE GENERAL CORPORATION AND SUBSIDIARY
        CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT


                    CHASE GENERAL CORPORATION
                        (REGISTRANT ONLY)
               CONDENSED STATEMENTS OF OPERATIONS
            YEARS ENDED JUNE 30, 2000, 1999 AND 1998

                                                 2000      1999      1998
REVENUE

  Equity in net income (loss) of subsidiary   $  53,082  $  61,091  $ (21,092)

     Total revenue                               53,082     61,091    (21,092)

EXPENSE

  General and administrative                      4,645      4,204      4,726
  Interest                                        8,842     10,571     12,076

     Total expense                               13,487     14,775     16,802

       Income (loss) before income taxes         39,595     46,316    (37,894)

PROVISION (CREDIT) FOR
  INCOME TAXES                                    2,689      2,946     (4,392)

NET INCOME (LOSS)                              $ 42,284  $  49,262  $ (33,502)




<PAGE>


                                                                    SCHEDULE I
                                                                    (Continued)


            CHASE GENERAL CORPORATION AND SUBSIDIARY
        CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT


                    CHASE GENERAL CORPORATION
                        (REGISTRANT ONLY)
               CONDENSED STATEMENTS OF CASH FLOWS
            YEARS ENDED JUNE 30, 2000, 1999 AND 1998


                                            2000     1999     1998
CASH FLOWS FROM OPERATING ACTIVITIES

  General and administrative expenses paid $(4,645) $(4,204) $(4,726)
  Interest paid                            (10,571) (12,109) (14,097)
  Income tax refund received                 2,946   4,392     4,153

     Net cash used in operating activities (12,270) (11,921) (14,670)

CASH FLOWS FROM INVESTING ACTIVITIES

  Advances received from wholly owned
    subsidiary                              47,270   34,554   43,318

CASH FLOWS FROM FINANCING ACTIVITIES

  Principal payments on Series B notes
     payable                               (35,000) (22,633) (28,648)

NET DECREASE IN CASH AND
  CASH EQUIVALENTS                             --      --       --

CASH AND CASH EQUIVALENTS,
  BEGINNING OF YEAR                            --      --       --

CASH AND CASH EQUIVALENTS,
  END OF YEAR                              $   --   $  --   $   --




<PAGE>



                                                                    SCHEDULE I
                                                                    (Continued)

            CHASE GENERAL CORPORATION AND SUBSIDIARY
        CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT


                    CHASE GENERAL CORPORATION
                        (REGISTRANT ONLY)
               CONDENSED STATEMENTS OF CASH FLOWS
            YEARS ENDED JUNE 30, 2000, 1999 AND 1998


                                            2000     1999     1998
RECONCILIATION OF NET INCOME TO NET
  CASH USED IN OPERATING ACTIVITIES

  Net income (loss)                        $42,284  $ 49,262  $(33,502)
  Adjustments to reconcile net income
     (loss)to net cash used in operating
     activities:
     Net income (loss) from wholly owned
       subsidiary                          (53,082)  (61,091)   21,092
     Effects of changes in operating assets
       and liabilities:
       Accrued interest                     (1,729)   (1,538)   (2,021)
       Income tax refund receivable            257     1,446      (239)

NET CASH USED IN OPERATING ACTIVITIES     $(12,270) $(11,921) $(14,670)

   This information should be read only in connection with the
    accompanying independent auditor's report on supplemental
                           schedules.

<PAGE>


                                                                 SCHEDULE II




          CHASE GENERAL CORPORATION AND ITS SUBSIDIARY
                VALUATION AND QUALIFYING ACCOUNTS
                  JUNE 30, 2000, 1999, AND 1998



COLUMN A       COLUMN B  COLUMN C ADDITIONS  COLUMN D    COLUMN E
              BALANCE AT      CHARGED TO                 BALANCE
              BEGINNING        COSTS                      AT END
DESCRIPTION   OF PERIOD     AND EXPENSES     DEDUCTIONS* OF PERIOD

Valuation accounts
deducted from assets
to which they apply for
doubtful accounts
receivable:

June 30, 2000  $11,516        $20,603        $20,726     $11,393
June 30, 1999   11,604         (4,012)         3,924      11,516
June 30, 1998   12,714         15,311         16,421      11,604


* Represents accounts written off, net of (recoveries), for the
  respective years.


   This information should be read only in connection with the
    accompanying independent auditor's report on supplemental
                           schedules.



<PAGE>


                           SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) 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)


Date:                           By: /s/ Barry M. Yantis
                                Barry M. Yantis, President


Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of the Registrant and in the capacities and on the
dates indicated below.

                     President, Treasurer (Principal Executive
                     Officer and Chief Financial and Accounting
/s/ Barry M. Yantis  Officer) and Director                   9/25/2000
Barry M. Yantis                                              Date


/s/ Brian A. Yantis  Vice-President, Secretary and Director  9/25/2000
Brian A. Yantis                                              Date

<PAGE>