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, 1999

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 August 24,
1999.

Location in this filing where exhibit index is located :   32

Total number of pages included in this filing:   40
<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)  192 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, 1999, 1998, and
                         1997, this division accounted for 56%,
                         55%, and 54%, 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)  Coconut cubes
          (3)  Home Style Poe Fudge     (8)  Peanut clusters
          (4)  Peco Flake               (9)  Champion Creme Drops
          (5)  Peanut Squares           (10) Jelly Candies

                         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, 1999, 1998, and 1997, this
                         division accounted for 44%, 45%, and
                         46%, respectively, of the consolidated
                         revenue of Dye Candy Company.

                    (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 MashR" 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, 1999,
                         1998, and 1997, Associated Wholesale
                         Grocers, accounted for 19.64%, 18.87%
                         and 19.67% of gross  sales,
                         respectively.  For the year ending June
                         30, 1999, Wal-Mart and its affiliates
                         accounted for 12.06% of gross sales.
                         The loss of Associated Wholesale Grocers
                         would not have an adverse effect on the
                         Company as 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-seven
          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, 1999, 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, 1999.

<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 August 24, 1999, 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.

ITEM 6    SELECTED FINANCIAL DATA

     (a)  LAST FIVE YEARS
<TABLE>
<CAPTION>
                         06-30-99    06-30-98     06-30-97     06-30-96      06-30-95
<S>                      <C>         <C>          <C>          <C>           <C>
  (i) NET  SALES OR
      OPERATING REVENUE  $2,134,920  $2,113,777   $2,317,501   $2,316,031    $2,235,656

 (ii) INCOME (LOSS)
      FROM CONTINUING
      OPERATIONS         $   49,262   $ (33,502)  $    50,174  $   63,703    $   60,146

(iii) INCOME (LOSS)
      FROM CONTINUING
      OPERATIONS PER
      COMMON SHARE<F*>   $    (.09)  $     (.17)  $      (.08) $    (.07)    $    (.07)

 (iv) TOTAL ASSETS       $  798,961  $  770,998   $    837,871 $  815,954    $  797,909

  (v) LONG-TERM DEBT     $  162,672  $  185,305   $    207,659 $  242,980    $       --

 (vi) CASH DIVIDEND
      DECLARED PER
      COMMON SHARE       $       --  $       --   $         -- $   -- $           --

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

<FN>
<F*>
Refer to Note 6, "Notes to Financial Statements" for computation of income (loss) from
continuing operations per common share.
</FN>
</TABLE>
<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, 1999,
               1998, and 1997 in the amounts of $99,294, $93,720,
               and $8,940, 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, 1999, 1998, and 1997 the
               Company had $150,000, $100,000, and $90,000,
               respectively invested in short term certificates
               of deposit to meet the 1999, 1998, and 1997 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 material inventory
               decreased slightly when comparing 1998 to 1997.
               In late spring 1997, predicted weather conditions
               dictated a future increase in peanut costs.
               Therefore, the Company purchased additional peanut
               inventory for its 1997 fall production season.
               With stable weather conditions being predicted for
               1998, the additional purchase of peanut inventory
               was not necessary.  Purchase commitments for
               peanuts as of June 30, 1998 were comparable to
               those at June 30, 1997.  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 for
               chocolate, peanuts and coconut were $113,000 less
               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 is higher than the cost of the
               commitment.  Packaging inventory significantly
               decreased in 1998 compared to 1997 due to usage of
               existing supplies.  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.
               Finished goods inventory increased in 1997 over
               1996 and decreased in 1998 to a level comparable
               to 1996 due to timing of production to prepare for
               the fall sales.  The main component wich made up
               these fluctuations were the "Cherry Mash bars".
               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.  Expenditures of $5,113 were
               made during fiscal year ended June 30, 1997 to
               update existing equipment.  The Company spent an
               additional $59,783 during 1997 to update
               transportation equipment, add to leasehold
               improvements, and replace outdated equipment.  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, $21,087
               was used to add to transportation and office
               equipment.  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 eight years, the Company has not been
               indebted except for the series B notes.  Of the
               original $630,000 Series B notes payable, $162,672
               remain outstanding at June 30, 1999.  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.  The entire $162,672
               outstanding at June 30, 1999, is classified as
               long-term.  Realizing 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 three fiscal years.  It
               is anticipated that acceleration of principal
               payments will continue if cash is not required 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 has realized an operating loss.  Increased
               cost of sales and general and administrative
               expenses were the primary sources for the loss.

               In comparing 1998 to 1997, net sales decreased 9%
               while cost of sales only decreased 5%.  Company
               management realized sales were declining during
               the current 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 upcoming year.
<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 were decreased by 13%
               for the year.  This was accomplished by decreasing
               selling expenses by 12%, and general and
               administrative by 15%.

               During 1998 general and administrative expenses
               increased $18,745 compared to 1997.  While the
               majority of general and administrative expenses
               remain stable regardless of sales volume, the
               Company experienced an increase in legal fees
               regarding the dividend arrearage as well as an
               increase in the allowance for doubtful accounts
               for the year.

               Selling expenses were reduced by targeting
               advertising and promotion expenditures to their
               most profitable areas.  The decrease in these
               areas realized $16,500 less costs.  In addition,
               the Company decreased their allowance for doubtful
               accounts by a net amount of $19,300 for the year.
               A more aggressive collections effort was made
               during the year which reduced current year write
               offs and also realized the collections of some
               prior year write-offs.

               Under the leadership of the CEO and his sales
               staff, the Company has stabilized its customer
               base.  Certainly some customers were lost during
               1999, 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, run on
               SBT software, involves the payroll processing
               accounting function.  Company management is aware
               of the Year 2000 (Y2K) technology issue and is in
               the process of obtaining written confirmation from
               SBT, that their programs are Y2K compliant.
               Should it be necessary to change software for
               non-compliance, the cost is projected to be less than
               $1,000.  In addition, management will require that
               any future investment in technology will be Y2K
               compliant before purchasing.
<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, 1998.

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-four 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, 1999 and
1998 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, 1999.  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, 1999 and 1998, and the results of their operations and their
cash flows for each of the years in the three-year period ended
June 30, 1999, in conformity with generally accepted accounting
principles.




St. Joseph, Missouri
August 11, 1999

<PAGE>
            CHASE GENERAL CORPORATION AND SUBSIDIARY
                  CONSOLIDATED BALANCE SHEETS
                     JUNE 30, 1999 AND 1998

                             ASSETS

                                        1999           1998
CURRENT ASSETS
     Cash and cash equivalents     $    206,609   $    161,093
     Receivables:
          Trade, less allowance
          for doubtful accounts
          of $11,516 in 1999
          and $11,604 in 1998           138,959         94,514
          Income tax                      --            24,710
     Inventories:
          Finished goods                 73,106         47,397
          Goods in process                3,243          3,633
          Raw materials                  52,930         81,377
          Packaging materials            70,878         79,006
     Prepaid expense                     35,469         35,549
     Prepaid income taxes                 --             1,000

               Total current assets     581,194        528,279

PROPERTY AND EQUIPMENT
     Land                                35,000         35,000
     Buildings                           85,738         85,738
     Machinery and equipment            663,341        648,360
     Trucks and autos                    99,113        94,639
     Office equipment                    31,909        31,706
     Leasehold improvements             121,356        121,356
          Total, at cost              1,036,457      1,016,799
     Less accumulated depreciation      818,690        774,080

               Total property and
               equipment                217,767        242,719












TOTAL ASSETS                       $    798,961   $    770,998
<PAGE>
               LIABILITIES AND STOCKHOLDERS' EQUITY

                                        1999           1998
CURRENT LIABILITIES
  Accounts payable                 $    48,383    $    59,194
  Series B notes payable,
    related parties,
    current maturities                   2,305           --
  Series B notes payable,
    unrelated parties,
    current maturities                   3,761           --
  Accrued expense:
          Interest                      10,440         11,978
          Income taxes                   8,855           --
          Other                         27,778         22,950

               Total current
                 liabilities           101,522         94,122

LONG-TERM LIABILITIES
  Series B notes payable,
    related parties                     59,219         68,331
  Series B notes payable,
    unrelated parties                   97,387        116,974

               Total long-term
                 liabilities           156,606        185,305

               Total liabilities       258,128        279,427

STOCKHOLDERS' EQUITY
  Capital stock issued and outstanding:
          Prior cumulative preferred
            stock, $5 par value:
               Series A (liquidation
                 preference $1,215,000
                 and $1,185,000
                 respectively)         500,000        500,000
               Series B (liquidation
                 preference $1,170,000
                 and $1,140,000
                 respectively)         500,000        500,000
          Cumulative preferred stock,
            $20 par value:
               Series A (liquidation
                 preference $2,912,017
                 and $2,853,484
                 respectively)       1,170,660      1,170,660
               Series B (liquidation
                 preference $474,565
                 and $465,026
                 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               (5,925,163)     (5,974,425)

               Total stockholders'
                 equity                 540,833        491,571



TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY             $    798,961   $    770,998


     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, 1999, 1998 AND 1997


                           1999           1998           1997

NET SALES            $   2,134,920  $   2,113,777  $   2,317,501

COST OF SALES            1,677,258      1,696,845      1,787,350

  Gross profit             457,662        416,932        530,151

OPERATING EXPENSES
  Selling expenses         246,592        280,764        302,871
  General and
    administrative
    expenses               148,838        175,442        156,697

     Total operating
       expenses            395,430        456,206        459,568

       Income (loss)
         from
         operations         62,232        (39,274)        70,583

OTHER INCOME (EXPENSE)
  Interest income            6,498          5,896          7,388
  Miscellaneous income       1,758            691          1,272
  Interest expense         (10,571)       (12,077)       (13,998)

     Total other
     income (expense)       (2,315)        (5,490)        (5,338)

     Income (loss)
     before income taxes    59,917        (44,764)        65,245

PROVISION (CREDIT) FOR
  INCOME TAXES              10,655        (11,262)        15,071

NET INCOME (LOSS)        $  49,262  $     (33,502) $      50,174

(LOSS) PER SHARE OF
  COMMON STOCK           $    (.09) $       .(.17) $        (.08)









     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>
<TABLE>
                        CHASE GENERAL CORPORATION AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                        YEARS ENDED JUNE 30, 1999, 1998 AND 1997

<CAPTION>
                        PRIOR CUMULATIVE           CUMULATIVE
                         PREFERRED STOCK         PREFERRED STOCK
                     SERIES A    SERIES B    SERIES A        SERIES B
<S>                 <C>       <C>          <C>              <C>
BALANCE (DEFICIT),
  JUNE 30, 1996     $ 500,000 $ 500,000    $  1,170,660     $    190,780

     Net income            --        --              --               --

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
</TABLE>

<TABLE>
<CAPTION>
                      COMMON       PAID-IN     ACCUMULATED
                      STOCK        CAPITAL       DEFICIT        TOTAL
<S>                 <C>        <C>          <C>             <C>
BALANCE (DEFICIT),
  JUNE 30, 1996     $ 969,834  $ 3,134,722  $ (5,991,097)   $  474,899

  Net income               --            --       50,174        50,174

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











        These consolidated financial statements should be read only in connection
                 with the accompanying summary of significant accounting
                policies and notes to consolidated financial statements.
</TABLE>
<PAGE>
            CHASE GENERAL CORPORATION AND SUBSIDIARY
             CONSOLIDATED STATEMENTS OF CASH FLOWS
            YEARS ENDED JUNE 30, 1999, 1998 AND 1997


                              1999         1998         1997

CASH FLOWS FROM OPERATING
ACTIVITIES
  Collections from
    customers            $ 2,094,487  $  2,087,531  $  2,305,349
  Interest received            6,498         5,896         7,388
  Other income                 2,042         1,926         1,272
  Income tax refunds          24,710         2,384            --
  Cost of sales,
    selling, general
    and administrative
    expenses paid         (2,015,534)   (1,979,084)   (2,265,624)
  Interest paid              (12,109)      (14,097)      (16,214)
  Income tax paid               (800)      (10,836)      (23,231)

     Net cash provided
       by operating
       activities             99,294        93,720         8,940

CASH FLOWS FROM
INVESTING ACTIVITIES
  Purchases of property
    and equipment            (31,145)      (45,636)      (64,896)

     Net cash used in
       investing
       activities            (31,145)      (45,636)      (64,896)

CASH FLOWS FROM
FINANCING ACTIVITIES
  Principal payments
    on notes payable,
    Series B                 (22,633)      (28,648)      (38,703)

     Net cash used in
       financing
       activities            (22,633)      (28,648)      (38,703)

NET INCREASE (DECREASE)
  IN CASH AND CASH
  EQUIVALENTS                 45,516        19,436       (94,659)

CASH AND CASH EQUIVALENTS,
  BEGINNING OF YEAR          161,093      141,657        236,316

CASH AND CASH EQUIVALENTS,
  END OF YEAR              $ 206,609    $ 161,093      $ 141,657
<PAGE>
                               1999         1998           1997
RECONCILIATION OF
  NET INCOME TO NET
  CASH PROVIDED BY
  OPERATING ACTIVITIES

    Net income (loss)       $  49,262    $(33,502)    $  50,174

  Adjustments to reconcile
    net income (loss) to net
    cash provided by
    operating activities:
     Depreciation              55,813      66,019        62,802
     Loss on disposal of
       equipment                  284       1,235            --
     Provision for
       doubtful accounts       (4,012)     15,311         3,327
     Effects of changes
       in operating assets
       and liabilities:
       Trade accounts
          receivable          (40,433)    (26,246)      (12,152)
       Income tax
          receivable           24,710     (24,710)           --
       Inventories             11,256      90,098      (101,529)
       Prepaid expense             80       4,242         2,868
       Prepaid income taxes     1,000       4,996        (5,996)
       Accounts payable       (10,811)         32        12,219
       Income tax payable       8,855          --        (2,164)
       Accrued liabilities      3,290      (3,755)         (609)

NET CASH PROVIDED BY
  OPERATING ACTIVITIES     $  99,294     $ 93,720   $     8,940
















  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.  Therefore, 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.
Finished goods and goods in process include a provision for
manufacturing overhead.

INVENTORIES

Inventories are carried at the "lower of cost or market value,"
cost being determined on the "first-in, first-out" basis of
accounting.

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
















    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,
1999 and 1998,      $22,633 and $24,648 principal was paid on the
Series B notes, respectively.

As of June 30, 1999 and 1998, the outstanding Series B notes
total $162,672 and $185,305, respectively. Of these amounts
$61,524 and $68,331 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 and 1997, 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, 1999, 1998, and 1997.
<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:
                           1999          1998         1997
NET INCOME (LOSS)
  Chase General
    Corporation       $  (11,829)  $ (12,410)  $  (14,737)
  Dye Candy Company       61,091     (21,092)      64,911

     Consolidated
       net income
       (loss)             49,262     (33,502)      50,174

NON-ALLOWANCE
  EXPENSE DEDUCTION
  Interest on
    indebtedness          10,571      12,077       13,998

       Net income
        (loss) basis
        for "surplus
        net earnings"     59,833     (21,425)      64,172

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

          "Surplus net
            earnings"
            (loss)        34,833     (46,425)      39,172

INTEREST PAYMENT
  REQUIRED               10,571       12,077       13,998

EXCESS "SURPLUS NET
  EARNINGS" (LOSS) OVER
  INTEREST PAYMENT
  REQUIRED            $  24,262    $ (34,348)  $   25,174

SINKING FUND
  REQUIREMENT         $   6,066    $      --   $    6,294
<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, 1999, 1998 and 1997 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, 2000          $   35,460
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
Later years                            29,550

  Total                            $ 206,850


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, 1999, the Company had purchase commitments with
four vendors for approximately $161,324.
<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,
1999 and 1998 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, 1999
and 1998, totaled $5,771,582 and $5,643,510, respectively.  Total
dividends in arrears, on a per share basis, consist of the
following at June 30:
                                   1999              1998
6% Convertible
  Series A                         $12                $12
  Series B                          12                 11

5% Convertible
  Series A                          50                 49
  Series B                          50                 49
<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 (CREDIT) FOR INCOME TAXES

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

                         1999         1998         1997

Federal income tax    $  7,551     $ (8,817)   $  11,257
State income tax         3,104       (2,445)       3,814

  Total provision
  (credit) for
  income taxes $      10,655  $    (11,262)    $  15,071

The Company's provision (credit) 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:

                          1999         1998        1997

Net income (loss)     $  49,262    $ (33,502)  $  50,174

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 $  (78,810)  $ (161,574) $  (77,898)

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

       Loss per share $     (.09)  $     (.17) $     (.08)


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 years ending June 30, 1998 and June 30, 1997 one customer
accounted for 18.87%, and 19.67%, of the gross sales,
respectively.  For the year ending June 30, 1999, two customers
accounted for 31.70% of the gross sales.




     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

                              PERIODS OF SERVICE
     NAME           AGE          AS DIRECTOR            TERMS

W.A. Yantis, III    56   1980 to January 21, 1999        --
Barry M. Yantis     54   1980 to present               One year
Brian A. Yantis     53   07-16-86 to present           One year
Brett A. Yantis     31   January 21, 1999 to present   One year

               An insufficient number of proxies were returned by
               the shareholders for the January 21, 1999
               annual stockholder meeting.  Therefore, the
               Directors noted above are continuing for an
               additional one year term except for W.A. Yantis,
               III whose resignation was accepted by the
               Directors.  To fill the vacated position, Brett A.
               Yantis was elected for the remainder of the term.

               See Item 10(b) for offices held by Barry M. Yantis
               and Brian A. Yantis.  W.A. Yantis, III has never
               held an office with the Company.

          (b)  EXECUTIVE OFFICERS
                                        YEARS OF
                                        SERVICE AS
     NAME           AGE     POSITION    AN OFFICER     TERM

Barry M. Yantis     53   President and      19         Until
                         Treasurer                     successor
                                                       elected

Brian A. Yantis     50   Vice-President      8         Until
                         and Secretary                 successor
                                                       elected


          (c)  CERTAIN SIGNIFICANT EMPLOYEES

               There are no significant employees other than
               above.

          (d)  FAMILY RELATIONSHIPS

               W. A. Yantis, III, Barry M. Yantis, and Brian A.
               Yantis are brothers.

          (e)  BUSINESS EXPERIENCE

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

               Brian A. Yantis, vice-president and secretary has
               been an officer of the Company for seven years as
               vice-president and since May, 1992 as secretary.
               He has been associated with the insurance business
               for twenty-six years and has been a Vice-President
               of Aon Risk Services in Chicago, Illinois during
               the past eleven years.
<PAGE>
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
          (CONTINUED)

          (e)  BUSINESS EXPERIENCE (Continued)

               W.A. Yantis III, has served as a board member of
               Chase General Corporation for eighteen years.  He
               has held the position of account manager for
               Prudential Insurance Company Asset Management
               Group in Newark, New Jersey during the past three
               years and in Chicago, Illinois during the prior
               seven years.

               Brett A. Yantis was elected to the position of
               director for the remaining part of W.A. Yantis'
               term.  Brett has been associated with the Company
               for six 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>
                                     SUMMARY COMPENSATION TABLE
<CAPTION>
                                          ANNUAL COMPENSATION
                                                                   OTHER
     NAME AND          FISCAL                                      ANNUAL
PRINCIPAL POSITION    YEAR END         SALARY          BONUS     COMPENSATION
<S>                 <C>            <C>            <C>            <C>
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

BARRY M. YANTIS     1) 06-30-97    $    103,025   $    11,250    $    2,240
</TABLE>
<TABLE>
<CAPTION>
                                   LONG TERM COMPENSATION
                                        AWARDS              PAYOUTS
                                   RESTRICTED
NAME AND            FISCAL         STOCK     OPTION/         LTIP      ALL OTHER
PRINCIPAL POSITION  YEAR END       AWARD(S)  SARS (#)       PAYOUTS   COMPENSATION
<S>                 <C>            <C>       <C>            <C>       <C>
BARRY M. YANTIS     1) 06-30-99      --        --             --          --

BARRY M. YANTIS     1) 06-30-98      --        --             --          --

BARRY M. YANTIS     1) 06-30-97      --        --             --          --


     1)   CEO

     2)   NO OTHER COMPENSATION OTHER THAN THAT WHICH IS LISTED IN COMPENSATION TABLE.

     3)   NO OTHER OFFICERS ARE COMPENSATED FOR THEIR SERVICES THAN THOSE LISTED IN THIS
          COMPENSATION TABLE.
</TABLE>
<PAGE>
ITEM 11 - EXECUTIVE COMPENSATION (CONTINUED)

          (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

          (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 1999, $693, $74 and $-0- of
               travel expenses were reimbursed to board members,
               W.A. Yantis III, 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, W.A. Yantis
               III, Brian A. Yantis, and Barry M. Yantis, who are
               brothers, annually approve the compensation of
               Barry M. Yantis, CEO.  Brett A. Yantis, newly
               elected to the board is the son of Barry M.
               Yantis.

          (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.
<PAGE>
ITEM 11 - EXECUTIVE COMPENSATION (CONTINUED)

          (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.


ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT

                                             AMOUNTS
                                             AND
                                             NATURE
                                             OF BENE-
                                             FICIAL         % OF
     TITLE OF CLASS      NAME AND ADDRESS    OWNERSHIP      CLASS

(a) Security ownership
    of certain
    beneficial owners

    Common; par value
    $1 per share        Barry Yantis       194,385(1)     16.8%(2)
                        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  $5 par   and officers
    value:  Series B,   as a group
    6% convertible

    Cumulative          All directors        3,017         5.2%
    Preferred,          and officers
    $20 par value:      as a group
    Series A,
    $5 convertible
<PAGE>
ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT (CONTINUED)


                                           AMOUNTS
                                           AND
                                           NATURE
                                           OF BENE-
                                           FICIAL       % OF
    TITLE OF CLASS      NAME AND ADDRESS   OWNERSHIP   CLASS

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


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
<PAGE>
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
          (CONTINUED)

          (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, 1999 and 1998                     13 - 14
          Consolidated Statements of
            Operations for the years
            ended June 30, 1999, 1998,
            and 1997                                   15
          Consolidated Statements of
            Stockholders' Equity for
            the years ended June 30,
            1999, 1998, and 1997                       16
          Consolidated Statements of
            Cash Flows for the years
            ended June 30, 1999, 1998,
            and 1997                                   17 - 18
          Summary of Significant
            Accounting Policies                        19 - 20
          Notes to Consolidated
            Financial Statements                       21 - 26

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

          Independent Auditor's Report on
            Supplemental Schedules                     34

          Schedule I:   Condensed Financial
            Information of the Registrant              35 - 38

          Schedule II:  Valuation and
            Qualifying Accounts, June 30,
            1999, 1998, and 1997                       39


          (b)  REPORTS ON FORM 8-K

               No reports on Form 8-K were filed during the
               fourth quarter of the year ended June 30, 1999.
<PAGE>
ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
          ON FORM 8-K

          (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, 1999 annual meeting mailed to security
                    holders during the 1999 fiscal year.

               (2)  For the 1999 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 the financial position as set
forth therein, in conformity with generally accepted accounting
principles.




St. Joseph, Missouri
August 11, 1999
<PAGE>
                                                     SCHEDULE I

            CHASE GENERAL CORPORATION AND SUBSIDIARY
       CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

                   CHASE GENERAL CORPORATION
                       (REGISTRANT ONLY)
                    CONDENSED BALANCE SHEETS

                     JUNE 30, 1999 AND 1998

                             ASSETS

                                        1999           1998

Income tax refund receivable       $      --      $      4,392
Investment in subsidiary -
  at equity                             713,945        684,462

TOTAL ASSETS                       $    713,945   $    688,854

         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Series B notes payable and accrued
  interest, unrelated parties       $   107,693     $   124,578
Series B notes payable and accrued
  interest, related parties              65,419          72,705

     Total liabilities                  173,112         197,283

Capital stock                         3,331,274       3,331,274
Paid in capital in excess of par      3,134,722       3,134,722
Accumulated (deficit)                (5,925,163)     (5,974,425)

     Total stockholders' equity         540,833         491,571

TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY              $   713,945     $   688,854


(1)  The restricted assets of 100% consolidated subsidiary, Dye
     Candy Company,  are $798,961 and $770,998 as of June 30,
     1999 and 1998, 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, 1999, 1998 AND 1997

                               1999       1998          1997
REVENUE
  Equity in net income
  (loss) of subsidiary   $    61,091 $  (21,092)    $  64,911

     Total revenue            61,091    (21,092)       64,911

EXPENSE

  General and
    administrative             4,204      4,726          4,892
  Interest                    10,571     12,076         13,998

     Total expense            14,775     16,802         18,890

          Income (loss)
          before income
          taxes               46,316    (37,894)        46,021

PROVISION (CREDIT) FOR
  INCOME TAXES                 2,946     (4,392)        (4,153)

NET INCOME (LOSS)        $    49,262 $  (33,502)    $   50,174
<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, 1999, 1998 AND 1997


                          1999         1998           1997
CASH FLOWS FROM
  OPERATING ACTIVITIES

  General and
    administrative
    expenses paid     $  (4,204)   $  (4,726)     $  (4,892)
  Interest paid        (12,109)      (14,097)       (16,214)
  Income tax refund
    received             4,392         4,153          5,853

     Net cash used in
       operating
        activities     (11,921)      (14,670)       (15,253)

CASH FLOWS FROM INVESTING ACTIVITIES

  Advances received
   from wholly owned
   subsidiary           34,554        43,318         53,956

CASH FLOWS FROM FINANCING ACTIVITIES

  Principal payments on
    Series B notes
    payable            (22,633)      (28,648)       (38,703)

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, 1999, 1998 AND 1997


                              1999         1998         1997
RECONCILIATION OF
NET INCOME TO NET
CASH USED IN
OPERATING ACTIVITIES

  Net income (loss)     $    49,262     $ (33,502)   $  50,174
  Adjustments to
    reconcile net
    income (loss)to
    net cash used in
    operating activities:
     Net income (loss)
     from wholly owned
     subsidiary             (61,091)       21,092      (64,911)
     Effects of changes
       in operating assets
       and liabilities:
          Accrued interest    (1,538)     (2,021)       (2,216)
          Income tax
          refund receivable     1,446       (239)        1,700

NET CASH USED IN
OPERATING ACTIVITIES       $  (11,921)  $ (14,670)  $  (15,253)










  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, 1999, 1998, AND 1997


                          COLUMN C
COLUMN A     COLUMN B  ADDITIONS        COLUMN D        COLUMN E
             BALANCE AT  CHARGED TO                     BALANCE
             BEGINNING     COSTS                        AT END
DESCRIPTION  OF PERIOD   AND EXPENSES   DEDUCTIONS<F*>  OF PERIOD
Valuation
  accounts
  deducted
  from assets
  to which
  they apply
  for doubtful
  accounts
  receivable:

June 30, 1999  $ 11,604  $   (4,012)    $ 3,924    $  11,516
June 30, 1998    12,714      15,311       16,421      11,604
June 30, 1997    12,216       3,327        3,370      12,714


<F*>
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: September 28, 1999   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
 /s/ Barry M. Yantis    Accounting Officer) and Director  September 28, 1999
Barry M. Yantis                                           Date


                        Vice-President, Secretary
 /s/ Brian A. Yantis    and Director                      September 28, 1999
Brian A. Yantis                                            Date