UNITED STATES SECURITIES AND EXCHANGE COMMISSION    
                          Washington, D.C.  20549        
                                 FORM 10-Q





(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      
     EXCHANGE ACT OF 1934                         
                                                                             
For the Quarterly Period ended December 31, 1998 
                                                                             
                                     OR

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

For the Transition Period from  ________ to ________

Commission File Number 1-1822


                             LACLEDE GAS COMPANY  
           (Exact name of registrant as specified in its charter) 

        Missouri                                43-0368139
 (State of Incorporation)                    (I.R.S. Employer
                                           Identification Number)


 720 Olive Street, St. Louis, Missouri                             63101
(Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code             314-342-0500
 

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes (X)   No ( )        

     Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.                  
          
17,627,987 shares, Common Stock, par value $1 per share at 2/11/99.
      







                                        
                                 Page 1<PAGE>
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               LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES 











                                  PART I

                          FINANCIAL INFORMATION

    




The interim financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission.  These financial statements should be
read in conjunction with the financial statements and the notes thereto
included in the Company's Form 10-K for the year ended September 30, 1998.




























                                 Page 2<PAGE>
<PAGE>
<TABLE>                               
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                    STATEMENTS OF CONSOLIDATED INCOME               
                               (UNAUDITED)

(In Thousands, Except Per Share Amounts)                         
<CAPTION>
                                                        Three Months Ended
                                                           December 31,
                                                         1998        1997
                                                         ----        ----
<S>                                                    <C>         <C>
Utility Operating Revenues                             $149,696    $199,667
                                                       -------------------- 
Utility Operating Expenses:
   Natural and propane gas                               86,648     126,309
   Other operation expenses                              23,649      22,659
   Maintenance                                            5,057       4,942
   Depreciation and amortization                          5,285       6,601
   Taxes, other than income taxes                        10,517      12,742
   Income taxes (Note 3)                                  5,064       8,153
                                                       --------------------
      Total Utility Operating Expenses                  136,220     181,406
                                                       --------------------
Utility Operating Income                                 13,476      18,261
Miscellaneous Income and Income Deductions
   (less applicable income taxes) (Note 3)                1,535         867
                                                       --------------------
Income Before Interest Charges                           15,011      19,128  
                                                       --------------------
Interest Charges:
   Interest on long-term debt                             3,347       3,853
   Other interest charges                                 1,957       1,642
                                                       --------------------
      Total Interest Charges                              5,304       5,495
                                                       --------------------
Net Income                                                9,707      13,633 
Dividends on Preferred Stock                                 24          24
                                                       -------------------- 
Earnings Applicable to Common Stock                    $  9,683    $ 13,609
                                                       ==================== 

Average Number of Common Shares Outstanding              17,628      17,558

Earnings Per Share of Common Stock                        $ .55       $ .78

Dividends Declared Per Share of Common Stock              $.335       $.330

<FN>


             See notes to consolidated financial statements.





</TABLE>

                                 Page 3<PAGE>
<PAGE>
<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                       CONSOLIDATED BALANCE SHEET
<CAPTION>                                  
                                                       Dec. 31     Sept. 30
                                                         1998        1998
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                     (UNAUDITED)
                                  ASSETS
<S>                                                    <C>         <C>       
                                                                
Utility Plant                                          $843,185    $833,685
   Less:  Accumulated depreciation and amortization     346,219     343,100
                                                       --------------------
   Net Utility Plant                                    496,966     490,585
                                                       --------------------
Other Property and Investments                           35,238      33,834
                                                       --------------------
Current Assets:
   Cash and cash equivalents                              5,651       3,718
   Accounts receivable - net                             99,204      46,055  
   Materials, supplies, and merchandise at avg cost       5,720       5,591
   Natural gas stored underground for current use 
      at LIFO cost                                       50,933      54,973
   Propane gas for current use at FIFO cost              12,698      12,840  
   Prepayments and other                                  3,399       2,927
   Deferred income taxes                                  8,062       9,933
                                                       --------------------
      Total Current Assets                              185,667     136,037
                                                       --------------------
Deferred Charges                                        110,639     110,691
                                                       --------------------
Total Assets                                           $828,510    $771,147
                                                       ====================

<FN>                 

             See notes to consolidated financial statements.











                                      







</TABLE>

                                 Page 4 <PAGE>
<PAGE>
<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                 CONSOLIDATED BALANCE SHEET (Continued)
<CAPTION>
                                                       Dec. 31     Sept. 30
                                                         1998        1998
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                     (UNAUDITED)
                    CAPITALIZATION AND LIABILITIES
<S>                                                   <C>         <C>
Capitalization:
   Common stock (19,493,625 shares issued)            $ 19,494    $ 19,494
   Paid-in capital                                      62,966      62,966   
   Retained earnings                                   202,119     198,342
   Treasury stock, at cost (1,865,638 shares held)     (24,017)    (24,017)  
                                                      -------------------- 
      Total common stock equity                        260,562     256,785
   Redeemable preferred stock                            1,960       1,960 
   Long-term debt (less sinking fund requirements)     179,256     179,238
                                                      --------------------   
         Total Capitalization                          441,778     437,983   
                                                      --------------------  
Current Liabilities:
   Notes payable                                       136,157      98,500   
   Accounts payable                                     33,897      20,692
   Refunds due customers                                 5,538       7,589
   Advance customer billings                             8,912       8,936   
   Taxes accrued                                         5,571       8,690
   Unamortized purchased gas adjustments                11,572      15,815   
   Other                                                20,608      23,429 
                                                      --------------------   
     Total Current Liabilities                         222,255     183,651
                                                      --------------------  
Deferred Credits and Other Liabilities:
   Deferred income taxes                               103,208     102,856   
   Unamortized investment tax credits                    6,846       6,933   
   Other                                                54,423      39,724
                                                      --------------------
      Total Deferred Credits and Other Liabilities     164,477     149,513
                                                      --------------------
Total Capitalization and Liabilities                  $828,510    $771,147
                                                      ====================   
 
<FN>

             See notes to consolidated financial statements.










</TABLE>

                                 Page 5   <PAGE>
<PAGE>
<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                 STATEMENTS OF CONSOLIDATED CASH FLOWS
                              (UNAUDITED)
<CAPTION>
                                                        Three Months Ended   
                                                          December 31,
                                                         1998        1997
                                                         ----        ----
                                                     (Thousands of Dollars)
<S>                                                   <C>         <C>        
               Operating Activities:      
 Net Income                                           $  9,707    $ 13,633
 Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation and amortization                       5,317       6,625
     Deferred income taxes and investment tax credits    2,518         556   
     Other - net                                        (1,868)       (557)
     Changes in assets and liabilities:
       Accounts receivable - net                       (53,149)    (70,253)
       Unamortized purchased gas adjustments            (4,243)     (7,148)  
       Deferred purchased gas costs                     14,990      13,242
       Advance customer billings - net                     (24)    (12,025)
       Accounts payable                                 13,205      12,816
       Refunds due customers                            (2,051)      8,152   
       Taxes accrued                                    (3,119)      3,208   
       Natural gas stored underground                    4,040       2,101
       Other assets and liabilities                     (4,075)     (5,748)  
                                                      --------------------
              Net cash used in operating activities   $(18,752)   $(35,398)
                                                      --------------------
Investing Activities:                                                      
 Construction expenditures                             (11,249)    (11,082)
 Investments - non-utility                                 967        (416)  
 Employee benefit trusts                                  (540)        (34)  
 Other                                                    (308)         15
                                                      --------------------
              Net cash used in investing activities   $(11,130)   $(11,517)  
                                                      --------------------
Financing Activities:
 Issuance of short-term debt - net                      37,657      28,500   
 Dividends paid                                         (5,842)     (5,731)  
 Issuance of first mortgage bonds                          -        25,000   
                                                      ---------------------
          Net cash provided by financing activities   $ 31,815    $ 47,769   
                                                     ---------------------
Net Increase in Cash and Cash Equivalents             $  1,933    $    854
Cash and Cash Equivalents at Beg of Period               3,718       4,508
                                                      -------------------- 
Cash and Cash Equivalents at End of Period            $  5,651    $  5,362   
                                                      ====================
Supplemental Disclosure of Cash Paid/(Refunded)
 During the Period for:
  Interest                                              $8,396      $8,407   
  Income taxes                                             (15)       (148)

<FN>
             See notes to consolidated financial statements.
</TABLE>
                                 Page 6<PAGE>
<PAGE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  In the opinion of management, this interim report includes all           
    adjustments (consisting only of normal recurring accruals) necessary     
    for the fair presentation of the results of the periods covered.

2.  The registrant is a natural gas distribution utility having a material   
    seasonal cycle; therefore, this interim statement of consolidated        
    income is not necessarily indicative of annual results nor               
    representative of succeeding quarters of the fiscal year.

3.  Net provisions for income taxes were charged as follows during the      
    periods set forth below:
<TABLE>
<CAPTION>
                                                   Three Months Ended      
                                                      December 31,
                                                   ------------------   
                                                    1998         1997
                                                    ----         ----
                                                 (Thousands of Dollars)
    <S>                                           <C>           <C>          
                                                     
    Utility Operations
       Current:   
          Federal                                  $ 2,529      $ 6,520
          State and local                              421        1,099

       Deferred:                                     
          Federal                                    1,771          400
          State and local                              343          134
                                                   --------------------
       Subtotal                                    $ 5,064      $ 8,153
                                                   --------------------
              
    Miscellaneous Income and
       Income Deductions
       Current:
          Federal                                  $    86      $   100      
          State and local                               11           16      
                                     
       Deferred:
          Federal                                      349           18
          State and local                               55            3
                                                   --------------------
       Subtotal                                    $   501      $   137 
                                                   --------------------
                  Total                            $ 5,565      $ 8,290
                                                   ====================








</TABLE>

                                 Page 7<PAGE>
<PAGE>
4.  The Company's Gas Supply Incentive Plan, which became effective October
    1, 1996 for a three-year period ending September 30, 1999 as part of a   
    settlement reached in the Company's 1996 rate case, continues to provide 
    significant benefits for both the Company's share owners and customers.  
    Under the Plan, the Company and its customers share the income from off-
    system sales and also in certain gains and losses related to the  
    acquisition of the Company's gas supply assets, as measured against 
    benchmark levels.  As part of this Plan, the Company sells available gas 
    supply and pipeline capacity in markets outside of its normal service 
    territory.  Results of the Plan are set forth below.  Such results may 
    not be representitive of future periods due to the volatile and seasonal 
    nature of these efforts.
<TABLE>    
<CAPTION>                                     Three Months Ended 
                                                 December 31,
                                            ----------------------
                                              1998          1997
                                              ----          ----
                                            (Thousands of Dollars)   
    <S>                                      <C>           <C>
    Incentive Plan Revenues                  $6,098        $6,533
    Incentive Plan Gas Expense                4,885         4,442
                                             ------        ------
    Company Share - Pretax Income            $1,213        $2,091
                                             ======        ======
</TABLE>
    On January 14, 1999, the Company filed with the Missouri Public Service  
    Commission (MoPSC) modifications to its Gas Supply Incentive Plan and    
    requested that the program be approved for another three-year period.

5.  As part of its review of the Company's gas costs, the Staff of           
    the MoPSC has recommended an adjustment which, if approved by the MoPSC  
    and upheld by the courts, would require the Company to refund to its     
    customers approximately $3.6 million of gains realized by the Company    
    from various sales made outside of Missouri between November 1995 and    
    March 1996 (prior to the approval of the Incentive Plan).  A hearing was 
    held before the MoPSC in this matter on October 6, 1998.  The Company    
    vigorously opposed the Staff's recommended adjustment before the MoPSC   
    on the grounds that such adjustment violates Missouri law, is            
    impermissible under the Company's MoPSC-approved tariffs, and is         
    otherwise unlawful and unreasonable.  The Company believes that the      
    outcome of this matter is unlikely to have a material adverse impact on  
    the Company. 

6.  The Company is subject to various laws and regulations relating to the   
    environment, which thus far have not had a material effect on the 
    Company's financial position and results of operations.
    
    In the past, the Company operated various manufactured gas plants which  
    produced certain by-products and residuals.  At the request of the       
    United States Environmental Protection Agency (EPA), Laclede performed   
    an investigation of one of the Company's former manufactured gas plant   
    sites located in Shrewsbury, Missouri (the Shrewsbury Site).  As         
    previously reported by the Company, the Company has had lengthy          
    discussions with the EPA and the Missouri Department of Natural          
    Resources (MoDNR) as to what additional actions are required for the     
    site.  On October 17, 1997, the Company submitted to the EPA an          
    Engineering Evaluation/Cost Analysis (EE/CA) relative to the site.  The  
    EPA, the MoDNR and the Company subsequently agreed on several changes to 
    the EE/CA.  The EPA on September 25, 1998 issued its approval of the     
    revised EE/CA, conditional only on receipt of public comment regarding   
    the EE/CA.  The EPA received no adverse public comments regarding the   
                                 Page 8<PAGE>
    <PAGE>
    EE/CA during the public comment period.  Assuming the EE/CA is finally  
    approved with no additional changes, the Company estimates that the 
    overall costs to remediate the Shrewsbury Site will be approximately   
    $1,135,000.  As of December 31, 1998, $627,000 of such overall costs had 
    been paid, and an additional $508,000 was reserved by the Company.  Any  
    additional actions with regard to the site will incur additional costs.  
    The Company has notified its insurers that it intends to seek      
    reimbursement from them of its investigation, remediation, clean-up and  
    defense costs.         
    
    In a separate matter, MoDNR has accepted the Company's application to    
    place the site of a different former manufactured gas plant located in   
    the City of St. Louis, Missouri (which site was also used by subsequent  
    owners as the site of a coke manufacturing facility) in the Missouri     
    Voluntary Cleanup Program, for the purpose of characterizing the site.   
    As required by MoDNR, the Company submitted its sampling plan on         
    November 16, 1998 and has begun implementation of the plan.  The Company 
    currently estimates that the cost of its investigation, MoDNR oversight  
    costs and associated legal and engineering consulting costs relative to  
    such site would together approximate $534,000.  Currently, $144,000 has  
    been paid and an additional $390,000 has been reserved on the Company's  
    books.  The Company has notified its insurers that the Company intends   
    to seek reimbursement from them for investigation, remediation, clean-up 
    and defense costs.  The Company has also requested that other former     
    site owners and/or operators participate in the cost of any site         
    investigation, but none has yet agreed to do so.  The Company plans to   
    seek proportionate reimbursement of all costs incurred with respect to   
    this site from such parties and/or any other potentially responsible     
    parties, to the extent practicable.  Recently, one of the potentially    
    responsible parties filed for bankruptcy.  The Company intends to take   
    such actions as necessary and appropriate to preserve any claims
    it may have against the party.

    The Company is presently unable to evaluate or quantify further the      
    scope or cost of any environmental response activity with regard to the  
    above two former manufactured gas plant sites.

    In the Company's previously concluded rate case, the MoPSC approved the  
    continued use of a cost deferral mechanism for the Company's use in      
    applying appropriate rate recovery of various environmental costs in     
    connection with former manufactured gas plants.  In any event, the       
    recovery of costs thus deferred may be challenged in rate                
    proceedings.


7.  This Form 10-Q should be read in conjunction with the Notes to           
    Consolidated Financial Statements contained in the Company's 1998 Form   
    10-K.


    










                                 Page 9<PAGE>
<PAGE>
                                                           
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

Weather has a significant impact on the use of heating energy, the sale of
which is Laclede's primary business.  Not only did warmer-than-normal
temperatures adversely impact Laclede's earnings during the first quarter of
this fiscal year, but the colder-than-normal temperatures during the same
quarter last year magnify the period-to-period comparison.  During the
quarter ended December 31, 1998, a period when temperatures in Laclede's
service area were 14% warmer than normal and 20% warmer than last year,
earnings were $.55 per share, compared with $.78 per share for the same
period last year.  This decrease in earnings was largely due to weather-
related lower gas sales and customer consumption.

Utility operating revenues for the quarter ended December 31, 1998 were 
$149.7 million compared with $199.7 million for the quarter ended December 
31, 1997.  The $50.0 million, or 25.0%, decrease was principally due to 
lower gas sales volumes arising from the warmer weather and lower wholesale
gas costs (which are passed on to Laclede's customers under the Company's
Purchased Gas Adjustment Clause).  System therms sold and transported
decreased by 61.4 million therms, or 17.2%, below the quarter ended December
31, 1997.

Utility operating expenses for the quarter ended December 31, 1998 decreased
by $45.2 million, or 24.9%, below the same quarter last year.  Natural and 
propane gas expense this quarter decreased $39.7 million, or 31.4%, below 
last year mainly due to reduced volumes purchased for sendout (resulting
from the warmer weather) and lower rates charged by the Company's suppliers. 
Other operation and maintenance expenses increased $1.1 million, or 4.0%,
principally due to lower gains recognized this quarter on lump sum pension
settlements, a higher provision for uncollectible accounts, higher wage
rates and other increases in the costs of doing business.  These increases
were partially offset by lower net pension costs and decreased group
insurance charges. Depreciation and amortization expense decreased 19.9%
primarily due to lower depreciation rates (as authorized in Case No. GR-98-
374 and instituted July 1, 1998) partially offset by additional depreciable
property.  Taxes, other than income taxes, decreased 17.5% mainly due to
lower gross receipts taxes (reflecting decreased revenues) slightly offset
by higher real estate and personal property taxes this quarter.  The $3.1
million decrease in income taxes is principally due to lower taxable income.

Miscellaneous income and income deductions increased $.7 million primarily
due to a pre-tax gain of approximately $1.9 million recognized by the
Company's wholly owned subsidiary, Laclede Development Company, on the sale
of undeveloped property known as Centre Park 40.  Laclede Development owned
its interest in Centre Park 40 through a real estate investment partnership. 
This gain was partially offset by lower subsidiary income and minor
variations in several areas.  The 3.5% decrease in interest expense is
mainly due to lower interest on long-term debt resulting from the redemption
in May 1998 of a 9 5/8% First Mortgage Bond issue.  This decrease was
largely offset by increased short-term interest expense due to higher
average borrowings.



                                 Page 10<PAGE>
<PAGE>
On January 26, 1999, Laclede filed a request with the Missouri Public
Service Commission (MoPSC) for a general rate increase, to take effect later
this year, to offset cost and investment return requirements related to its
gas distribution system.  Laclede does not anticipate that its request will
result in higher rate levels during the current heating season because the
Commission generally suspends the implementation of general rate increases
until the Company's filing has been thoroughly audited and reviewed.

Laclede's request is for a rate adjustment that, if approved as filed, would
increase its annual revenues by $30.5 million.  The proposed new rates would
increase a typical residential heating customer's bill by 5.8%, an average
of $3.37 a month.

On January 14, 1999, the Company filed with the MoPSC modifications to its
Gas Supply Incentive Plan and requested that the program be approved for
another three-year period.  The current program, which is scheduled to
expire on September 30, 1999, has provided significant benefits to Laclede's
share owners and customers.  It allows Laclede and its customers to share in
income from off-system sales and also in certain gains and losses related to
the acquisition of the Company's gas supply assets, as measured against
benchmark levels.  Since the Company began operating under the Incentive
Plan in October 1996, Laclede has achieved overall gas cost savings of
nearly $73 million.  During calendar 1998 alone, the Company's Incentive
Plan operations resulted in gas cost savings of $24.0 million to its
customers and $5.5 million in pretax income to its share owners.


LIQUIDITY AND CAPITAL RESOURCES

The Company's short-term borrowing requirements typically peak during colder
months, principally because of required payments for natural gas made in 
advance of the receipt of cash from the Company's customers for the sale of 
that gas.  Such short-term cash requirements have traditionally been met 
through the sale of commercial paper supported by lines of credit with 
banks.  In January 1999, the Company renewed three primary lines of bank 
credit under which it may borrow up to an aggregate of $30 million prior to
January 31, 2000, with renewal of any loans outstanding on that date
permitted up to June 30, 2000.  An additional $10 million primary line of
credit was renewed through March 31, 1999.  This, along with a previously
obtained $100 million supplemental line of credit extending through
August 30, 1999, and an additional $20 million supplemental line of credit
obtained for the period of January 1999 through March 20, 1999, provides 
total lines of credit of $160 million for the 1998-1999 heating season.  

During fiscal 1999 to date, the Company sold commercial paper aggregating to
a maximum of $142.5 million at any one time, but did not borrow from the
banks under the aforementioned agreements.  Short-term borrowings amounted
to $137.5 million at January 31, 1999.

Construction expenditures for the quarter were $11.2 million compared with
$11.1 million for the same period last year.

Capitalization at December 31, 1998 increased $3.8 million since September 
30, 1998 and consisted of 59.0% common stock equity, .4% preferred stock 
equity and 40.6% long-term debt.

The seasonal effect on the Company's financial position affects the 
comparison of certain balance sheet items at December 31, 1998 and at 
September 30, 1998 such as Accounts Receivable - Net, Notes Payable, 
Accounts Payable and Advance Customer Billings.

                                 Page 11<PAGE>
<PAGE>
ENVIRONMENTAL MATTERS

The Company is subject to various environmental laws and regulations, which
thus far have not had a material effect on the Company's financial position
and results of operations.  The Company has, however, reported certain
environmental liabilities in connection with two manufactured gas plants
previously operated by the Company which produced certain by-products and
residuals.  The Company has either already paid or reserved overall costs of
$1,669,000 which are estimated to cover the performance of certain limited
actions at these locations.  At this time, the ultimate costs to be incurred
remain unclear, as does the amount of any recovery which the Company may be
able to obtain from other responsible parties and/or the Company's insurers. 
In the Company's 1998 rate case, the MoPSC approved the continued use of a
cost deferral mechanism for the appropriate rate recovery of various
environmental costs.  In any event, the recovery of costs thus deferred may
be challenged in rate proceedings.  For additional information on the
Company's environmental matters, see Note 6 of Notes to Consolidated
Financial Statements, on page 8.


YEAR 2000 ISSUE

The Company has undertaken a comprehensive Year 2000 upgrade, conversion and
replacement program, pursuant to which the Company is upgrading and
replacing its mainframe computer hardware and attendant operating system
software along with its key mainframe systems and applications, such as the
customer records and billing system and the accounting system.  The
conversion and upgrade of a majority of the Company's systems and
applications have been completed, and the Company is currently in the
process of testing these systems and applications.  Integrated testing with
third parties with whom the Company exchanges information is scheduled to
occur in the coming months.  Also well underway is a comprehensive personal
computer hardware and software replacement/upgrade that is part of the
aformentioned program.

Additionally, the Company has undertaken a company-wide program to
inventory, evaluate, remediate and test all of the other equipment,
products, services and supplies used within the Company. An inventory of all
such equipment, products, services and supplies was completed in August,
1998, and an evaluation of the criticality of each item in the inventory was
completed during September, 1998.  The Company's Year 2000 readiness plan
provides that each piece of equipment and product in the inventory, critical
and noncritical, will be tested and, to the extent problems are discovered,
the problems will be remediated and the piece of equipment or product
retested, or the piece of equipment or product will be replaced.  

The Company has developed or is developing comprehensive contingency plans
to address unforeseen critical system or equipment failures, including, but
not limited to electrical and communication losses. The Company has
developed contingency plans for two possible worst case scenarios:  the
failure of the ability to remotely operate a small number of pressure
regulator stations or the possible failure of its third-party provided
communication capabilities.  With regard to the pressure regulator stations,
the Company will have employees located at each of its remotely controlled
pressure regulator stations starting December 31, 1999 to make any needed
manual overrides of the control system.  With regard to communications, the
Company is developing an in-house radio relay system using its current
equipment to maintain communications among the Company's system control and
dispatch personnel and its employees in the field.


                                 Page 12 <PAGE>
<PAGE>
The Company has engaged in conversations with, and received correspondence
from, many of the vendors of both critical and noncritical equipment,
products, services and supplies used within the company regarding the Year
2000 capability of such equipment, products, services and supplies. 
Notwithstanding the written assurances that the Company has received from
many of these vendors, the Company is making such further inquiries as
deemed necessary on a case-by-case basis to verify independently the ability
of the vendors to continue to supply services and supplies to the Company on
and after January 1, 2000, and the Year 2000 readiness of such vendors'
equipment and products.  The Company has also received written assurances 
from natural gas suppliers and pipelines that they will be able to supply   
natural gas to Laclede after 1999 without interruption.  Here as well, the
Company will, on a case-by-case basis, be making further inquiries and
conducting such additional investigations as are deemed necessary to verify
such written assurances.  As of this date, the Company has not verified the
contents of the written assurances received from the above-described vendors
and/or natural gas suppliers and pipelines.  

To date, the Company has incurred total costs of approximately $11.9 million
related to replacements and modifications of various computer systems.  Of
this amount, $10.4 million has been capitalized and $1.5 million has been
charged to expense.  The Company currently estimates that costs remaining to
be incurred during fiscal 1999 will amount to approximately $3.0 million. 
In the Company's previously concluded rate case, No. GR-98-374, the MoPSC
authorized the Company to capitalize the costs incurred in connection with
making its information systems ready for year 2000 operations.  In addition,
the MoPSC also authorized the Company to defer any interim property tax,
depreciation or carrying cost expenses that may be incurred by the Company
in connection with these capitalized items.  The Company may apply for
recovery of these interim expenses in rate proceedings.


OTHER MATTERS

As part of its review of the Company's gas costs, the Staff of the MoPSC has
recommended an adjustment which, if approved by the MoPSC and upheld by the
courts, would require the Company to refund to its customers   
approximately $3.6 million of gains realized by the Company from various    
sales made outside of Missouri between November 1995 and March 1996          
(prior to the approval of the Incentive Plan).  A hearing was held           
before the MoPSC on this matter on October 6, 1998.  The Company             
vigorously opposed the Staff's recommended adjustment before the MoPSC       
on the grounds that such adjustment violates Missouri law, is                
impermissible under the Company's MoPSC-approved tariffs, and is             
otherwise unlawful and unreasonable.  The Company believes that the          
outcome of this matter is unlikely to have a material adverse impact on      
the Company. 


FORWARD-LOOKING STATEMENTS

Certain statements in this report are forward-looking statements based on
management's beliefs using current assumptions.  These forward-looking
statements may be identified by the use of such terms as "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "seek" and similiar
expressions.  In addition to any assumptions and other factors specifically
referenced with such forward-looking statements, factors that may cause the 


                                 Page 13  <PAGE>
<PAGE>
Company's actual results to differ materially from those contemplated in any
forward-looking statements include, but are not limited to, weather
conditions, changes in transportation and gas supply costs or availability,
the effects of competition and industry restructuring, economic factors such
as changes in the conditions of capital markets and inflation, effects of
employee work force issues, regulatory and statutory changes, changes in
accounting standards, and the effectiveness of Year 2000 remediation by
third parties.




















































                                 Page 14<PAGE>
<PAGE>



















                             

               LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES












                                Part II


                           OTHER INFORMATION





















                                 Page 15<PAGE>
<PAGE>                        
         LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES

Item 1.  Legal Proceedings
         
         For a discussion of environmental matters, see Note 6 of the Notes  
         to Consolidated Financial Statements in Part I, Financial           
         Information.  

         During the quarter ended December 31, 1998, there were no new       
         legal proceedings required to be disclosed.  

Item 6.  Exhibits and Reports on Form 8-K

         (a)  See Exhibit Index

         (b)  Reports on Form 8-K

              The Company filed a Form 8-K during the quarter ended 
         December 31, 1998.  

         Item reported:
         
         On October 29, 1998 the Company issued its news release announcing  
         its financial results as of September 30, 1998.  The news release   
         was attached as Exhibit 1 to the Form 8-K.
         
         Date of Report (Date of Earliest Event Reported):
           October 29, 1998

         





























                                 Page 16<PAGE>
<PAGE>        




              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES


                               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.





                                                  LACLEDE GAS COMPANY


Date:  February 11, 1999                            G. T. McNeive, Jr.
                                                   -------------------
                                                    G. T. McNeive, Jr.
                                              Sr. Vice President - Finance
                                                  and General Counsel        
                                               (Authorized Signatory and
                                                Chief Financial Officer) 





























                                 Page 17<PAGE>
<PAGE>




                          Index to Exhibits


                                                                             
                                                                             
                                                               Sequentially
Exhibit                                                          Numbered
Number            Exhibit                                          Page
-------           -------                                      ------------  
                                  
    
  4           Amendments to the Company's Wage Deferral Savings
              Plan adopted October 5, 1998.                          19 
 
 10           Amendments to the Company's Salary Deferral 
              Savings Plan adopted October 5, 1998.                  30      
               
 27           Financial Data Schedule UT                             40






















                                 













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