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                    U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                  FORM 10-QSB




(Mark One)
 [X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
      ACT OF 1934

For the quarterly period ended March 31, 2001

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

For the transition period from          to

                         Commission file number 04863

                   Southern Investors Service Company, Inc.
--------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

          Delaware                                    74-1223691
--------------------------------------------------------------------------------
(State or other jurisdiction of          (I.R.S. Employer Identification No.)
 incorporation or organization)

2727 North Loop West, Suite 200, Houston, Texas                   77008
--------------------------------------------------------------------------------
    (Address of principal executive offices)                    (Zip Code)


                                 (713) 869-7800
                                 --------------
                           Issuer's telephone number

             (Former name, former address and former fiscal year,
                         if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes [X]   No [_]

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.  Yes [_]   No [_]

                     APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 3,168,929 as of May 4, 2001, Common
Stock $1.00 Par Value

Transitional Small Business Disclosure Format (Check One):
 Yes [_]; No [X]
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                        PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

  The Consolidated Financial Statements included herein have been prepared by
Southern Investors Service Company, Inc., (the Company), without audit, pursuant
to the rules and regulations of the Securities and Exchange Commission.  Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading.  It is suggested that these
Consolidated Financial Statements be read in conjunction with the Consolidated
Financial Statements and notes thereto included in the Company's latest annual
report on Form 10-KSB.  In the opinion of the management of the Company, all
adjustments necessary to present a fair statement of the results for the interim
periods have been made.

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           SOUTHERN INVESTORS SERVICE COMPANY, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEET
                                MARCH 31, 2001
                            (Thousands of Dollars)
                                  (Unaudited)

ASSETS

 CASH                                                    $  2,349
 EQUITY IN REAL ESTATE JOINT VENTURES, NET                    286
 NOTES RECEIVABLE AND OTHER ASSETS                             79
                                                         --------
                                                         $  2,714
                                                         ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES:
 Notes payable                                           $  4,935
 Accounts payable and accrued expenses                      2,634
                                                         --------
   Total liabilities                                        7,569
                                                         --------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT:
 Preferred stock, $1 par, 1,000,000
  shares authorized, none issued                              --
 Common stock, $1 par, 10,000,000 shares authorized,
  3,281,331 shares issued                                   3,281
 Additional paid-in capital                                 3,031
 Retained deficit                                         (11,041)
 Less treasury stock, 112,402 shares, at cost                (126)
                                                         --------
  Total stockholders' deficit                              (4,855)
                                                         --------
                                                         $  2,714
                                                         ========

        The accompanying notes are an integral part of this statement.

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           SOUTHERN INVESTORS SERVICE COMPANY, INC. AND SUBSIDIARIES

                       CONSOLIDATED STATEMENTS OF (LOSS)

                            (Thousands of Dollars)
                                   (Unaudited)

                                Three months ended March 31,
                                ----------------------------
                                    2001          2000
                                    ----          ----

RESORT REVENUES                    $ ---         $  775

OTHER REVENUES                        28              9
                               ---------      ---------

                                      28            778
                               ---------      ---------

RESORT OPERATING EXPENSES            ---            710


OTHER OPERATING EXPENSES              30             54
                               ---------      ---------

                                      30            764
                               ---------      ---------

(LOSS) INCOME FROM OPERATIONS         (2)            14

INTEREST INCOME                       32              6

INTEREST EXPENSE                     (83)          (102)
                               ---------      ---------

NET (LOSS)                     $     (53)     $     (82)
                               =========      =========

(LOSS) PER COMMON SHARE        $    (.02)     $    (.03)
                               =========      =========
AVERAGE NUMBER OF
 SHARES OUTSTANDING            3,168,929      3,168,929
                               =========      =========

       The accompanying notes are an integral part of these statements.

                                       4
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           SOUTHERN INVESTORS SERVICE COMPANY, INC. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOWS

                            (Thousands of Dollars)
                                  (Unaudited)


                                                  Three Months
                                                 Ended March 31,
                                                -----------------
                                                  2001      2000
                                                -------    ------
Cash flows from operating activities:
  Net (loss)                                    $  (53)   $  (82)
  Adjustments to reconcile net income (loss)
   to net cash provided by operating activities:
  Depreciation and amortization                    ---        48
  Change in assets and liabilities:
    Investments in resort development              ---        (6)
    Decrease (increase) in notes receivable
     and other assets                               25      (127)
    Increase in accounts payable, accrued
      expenses and other                            43       160
                                                ------    ------
        Net cash provided by (used in)
         operating activities                       15        (7)
                                                ------    ------
Cash flows from financing activities:
  Borrowings on notes payable, net                 ---        93
                                                ------    ------
Net increase in cash                                15        86
Beginning cash                                   2,334        69
                                                ------    ------
Ending cash                                     $2,349    $  155
                                                ======    ======

       The accompanying notes are an integral part of these statements.

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           SOUTHERN INVESTORS SERVICE COMPANY, INC. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 (Unaudited)

(1)  HISTORICAL AND CURRENT BUSINESS CONDITIONS

     Southern Investors Service Company, Inc., (the Company) was incorporated
under the laws of the State of Delaware in 1972.  Prior to 1990, the Company was
engaged in the ownership and development of real estate primarily in the
Houston, Texas area.  The operations of the Company were significantly reduced
during 1990, as a result of various debt settlements with lenders and other
creditors.  These settlements resulted in the transfer of substantially all of
the Company's holdings to its creditors.  The Company's operations since 1990
have been primarily limited to attempts to settle or restructure the Company's
remaining liabilities.  During 1998 and prior years, the Company's operations
included the management of residential developments and two office buildings
owned by others.  During 1998, the majority of these residential projects were
sold by the owners and therefore the Company no longer is managing these
projects.  Effective January 1, 1999, the Company ceased all management activity
and all employees related to this activity were terminated.  Until May of 2000,
the Company's primary activity had been the operation of a resort property in
west Texas known as Lajitas located in the Big Bend region in Texas (Lajitas).

     Although there were sporadic efforts to sell Lajitas prior to 1999, only a
few potential buyers ever seriously examined the property or conducted any due
diligence. With debt of more than $4,780,000 that had matured and was currently
due, the Company determined in late 1999 that the sale of Lajitas, its sole
remaining operating asset, would facilitate the Company's ability to settle its
existing liabilities most favorably. The Company's decision to sell Lajitas at
that time was also influenced by its perception that a strong marketplace
favored sellers of specialty properties. After considering the efficacy of the
Company's past efforts and reviewing sales of other specialty properties, the
Company determined that the best alternative would be to sell the property
through an auction process. As a result, the Company retained the National
Auction Group, Inc., (National Auction) to conduct an auction of Lajitas. The
auction was conducted on February 24, 2000 and the sale of the Lajitas property
closed on May 2, 2000. During 2000, the Company realized a gain on the sale of
Lajitas of $755,000 and received net cash proceeds of approximately $2.4
million, after the payment of a mortgage note related to the property sold.

CONTINUED OPERATIONS

     The Company will attempt to use the net proceeds from the sale of Lajitas
to settle or restructure existing debt, of which approximately $4,819,000 has
matured and is currently due, and to realize the carrying amount of its
remaining noncash assets.  However, there can be no assurance the Company will
be able to settle or restructure existing debt and realize the carrying amount
of its remaining noncash assets.  Management is currently reviewing possible
options to settle the Company's

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existing liabilities with its available resources.  These options include, but
are not limited to, continued negotiations with various creditors to settle
their accounts for cash payments at substantially less than the amount due, the
settlement of liabilities through the transfer of assets to creditors in
satisfaction of their claims and a possible plan under the U.S. Bankruptcy Code
or possible liquidation of the Company.  The consolidated financial statements
do not include any adjustments, which could be significant, relating to the
recoverability of asset carrying amounts or the amount and classification of
liabilities that might be necessary if the Company is unable to continue as a
going concern.

(2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  The accompanying unaudited consolidated financial statements have been
prepared in accordance with the significant accounting policies included in the
notes to the Company's latest annual report on Form 10-KSB.  These consolidated
financial statements should be read in conjunction with those notes.

Item 2.   Management's Discussion and Analysis or Plan of Operation.

RESULTS OF OPERATIONS

  The net (loss) for the first three months of 2001 was ($53,000) or ($.02) per
share compared to a net (loss) of ($82,000) or ($.03) per share during the first
quarter of 2000.

  There were no resort revenues and expenses during 2001, due to the sale of the
property during May 2000.

  The increase in other revenues is due to the recognition of $28,000 of
previously deferred profit from the sales of residential lots.

  The decrease in other expenses is due to a decrease in legal and professional
fees.

  The increase in interest income is due to the investment of the cash proceeds
from the sale of Lajitas.

  The decrease in interest expense is due to the repayment of certain notes
payable in connection with the sale of Lajitas.

OPERATIONS, LIQUIDITY AND CAPITAL REVENUES AND UNCERTAINTIES

  The Company will attempt to use the net proceeds from the sale of Lajitas
to settle or restructure existing debt, of which approximately $4,819,000 has
matured and is currently due, and to realize the carrying amount of its
remaining assets.  However, there can be no assurance the Company will be able
to settle or restructure existing debt and realize the carrying amount of its
remaining noncash assets.  Management is currently reviewing possible options to
settle the Company's existing liabilities with its available resources.  These
options include, but are not limited to, continued negotiations with various
creditors to settle their accounts for cash payments at substantially less than

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the amount due, the settlement of liabilities through the transfer of assets to
creditors in satisfaction of their claims and a possible plan under the U.S.
Bankruptcy Code or possible liquidation of the Company.  The consolidated
financial statements do not include any adjustments, which could be significant,
relating to the recoverability of asset carrying amounts or the amount and
classification of liabilities that might be necessary if the Company is unable
to continue as a going concern.

FORWARD LOOKING STATEMENT

     This report contains "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.  All statements other than
statements of historical fact included in this section and elsewhere in this
report are forward looking statements and, although the Company believes that
the expectations reflected in such forward looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
The Company's business and financial results are subject to various risks and
uncertainties, including the Company's ability to settle or restructure its
remaining debt and other obligations and to generate positive cash flow to cover
its operating expenses, that may cause actual results to differ materially from
the Company's expectations.  The Company does not intend to provide updated
information other than as otherwise required by applicable law.  All subsequent
written and oral forward looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their entirety by the
cautionary statements contained in this paragraph and elsewhere in this report.

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                          PART II - OTHER INFORMATION



ITEM 1.   Legal Proceedings

None


ITEM 2.   Changes in Securities

None


ITEM 3.   Default upon Senior Securities

None


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

None


ITEM 5.   Other Information

None


ITEM 6.   Exhibits and Reports on Form 8-K

None

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                                   SIGNATURES

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



                         SOUTHERN INVESTORS SERVICE COMPANY, INC.



                          /s/ Walter M. Mischer, Jr.
                          ------------------------------------------
                          WALTER M. MISCHER, JR.
                          President - Principal Executive Officer





                          /s/ Eric Schumann
                          -------------------------------------------
                          ERIC SCHUMANN
                          Senior Vice President - Finance
                          Principal Financial and Accounting Officer



                          DATE:      May 11, 2001


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