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 June 30, 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 8/7/98.
      







                                        
                                 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, 1997.




























                                 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    Nine Months Ended
                                          June 30,             June 30, 
                                      1998       1997      1998       1997  
                                      ----       ----      ----       ---- 
<S>                                 <C>        <C>       <C>        <C>
Utility Operating Revenues          $77,193    $84,191   $490,686   $542,087
                                    ------------------   -------------------
Utility Operating Expenses:
  Natural and propane gas            34,486     38,016    290,876    330,398
  Other operation expenses           20,239     21,217     65,999     65,464
  Maintenance                         4,636      4,607     14,091     13,632
  Depreciation and amortization       6,771      6,426     20,038     19,375
  Taxes, other than income taxes      8,636      8,956     37,143     39,667
  Income taxes (Note 3)              (1,100)       244     17,478     22,101 
                                    ------------------   ------------------- 
  Total Utility Operating Expenses   73,668     79,466    445,625    490,637 
                                    ------------------   -------------------
Utility Operating Income              3,525      4,725     45,061     51,450 
Miscellaneous Income and Income
  Deductions - Net (less 
  applicable income taxes) (Note 3)     561        602      2,150      1,458 
                                    ------------------   -------------------
Income Before Interest Charges        4,086      5,327     47,211     52,908 
                                    ------------------   -------------------
Interest Charges:
  Interest on long-term debt          3,648      3,543     11,450     10,627
  Other interest charges              1,344        972      4,664      3,857 
                                    ------------------   -------------------
    Total Interest Charges            4,992      4,515     16,114     14,484 
                                    ------------------   -------------------
Net Income (Loss)                      (906)       812     31,097     38,424 
Dividends on Preferred Stock             24         24         73         73 
                                    ------------------   -------------------
Earnings (Loss) Applicable to 
  Common Stock                      $  (930)   $   788   $ 31,024   $ 38,351 
                                    ==================   =================== 
Average Number of Common 
  Shares Outstanding                 17,611     17,558     17,587     17,558

Earnings (Loss) Per Share of 
  Common Stock                        $(.05)     $ .04      $1.76      $2.18 
Dividends Declared Per Share
  of Common Stock                      $.33      $.325       $.99      $.975 

<FN>
             See notes to unaudited consolidated financial statements.





</TABLE>

                                  Page 3<PAGE>
<PAGE>
<TABLE>
             LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                       CONSOLIDATED BALANCE SHEETS
<CAPTION>                         
                                                       June 30     Sept. 30
                                                         1998        1997
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                      (UNAUDITED)
                                 ASSETS
<S>                                                    <C>         <C>  
Utility Plant                                          $824,754    $792,661
   Less:  Accumulated depreciation and amortization     340,798     325,088
                                                       --------------------
   Net Utility Plant                                    483,956     467,573
                                                       --------------------
Other Property and Investments                           31,170      29,724
                                                       --------------------
Current Assets:
   Cash and cash equivalents                              4,342       4,508  
   Accounts receivable - net                             51,942      47,932
   Materials, supplies, and merchandise at avg cost       5,678       5,216
   Natural gas stored underground for current use 
      at LIFO cost                                       28,480      56,867
   Propane gas for current use at FIFO cost              12,839      12,917
   Prepayments                                            2,433       1,986
   Deferred income taxes                                  6,038       9,881
   Delayed customer billings                              9,546           -
                                                       --------------------
      Total Current Assets                              121,298     139,307 
                                                       --------------------
Deferred Charges                                         93,101      84,106
                                                       --------------------
Total Assets                                           $729,525    $720,710
                                                       ====================

                 
<FN>
             See notes to unaudited consolidated financial statements.











                                      







</TABLE>

                                 Page 4 <PAGE>
<PAGE>
<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                 CONSOLIDATED BALANCE SHEETS (Continued)
<CAPTION>
                                                       June 30     Sept. 30
                                                         1998        1997
                                                         ----        ----
                                                      (Thousands of Dollars) 
                                                       (UNAUDITED)
                    CAPITALIZATION AND LIABILITIES
<S>                                                  <C>         <C>
Capitalization:
   Common stock (Shares issued - 1998, 19,476,780; 
                 1997, 19,423,178)                    $ 19,477    $ 19,423
   Paid-in capital                                      62,566      61,205   
   Retained earnings                                   207,388     193,776 
   Treasury stock, at cost (1,865,638 shares held)     (24,017)    (24,017)  
                                                      -------------------- 
      Total common stock equity                        265,414     250,387   
   Redeemable preferred stock                            1,960       1,960
   Long-term debt (less sinking fund requirements)     179,217     154,413
                                                      --------------------   
         Total Capitalization                          446,591     406,760   
                                                      --------------------  
Current Liabilities:
   Notes payable                                        65,000      74,000   
   Accounts payable                                     23,666      29,628
   Refunds due customers                                 8,210         731   
   Advance customer billings                                 -      12,700   
   Current portion of long-term debt                         -      25,000 
   Taxes accrued                                        14,730       6,848
   Unamortized purchased gas adjustments                 2,041      13,022   
   Other                                                19,332      22,509 
                                                      --------------------   
     Total Current Liabilities                         132,979     184,438
                                                      --------------------  
Deferred Credits and Other Liabilities:
   Deferred income taxes                                81,846      85,013   
   Unamortized investment tax credits                    7,020       7,280   
   Other                                                61,089      37,219
                                                      --------------------
      Total Deferred Credits and Other Liabilities     149,955     129,512
                                                      --------------------
Total Capitalization and Liabilities                  $729,525    $720,710
                                                      ====================   
 

<FN>
             See notes to unaudited consolidated financial statements.










</TABLE>
                                 Page 5   <PAGE>
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<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                 STATEMENTS OF CONSOLIDATED CASH FLOWS
                              (UNAUDITED)
<CAPTION>
                                                         Nine Months Ended   
                                                              June 30,
                                                         1998        1997
                                                         ----        ----
                                                     (Thousands of Dollars)
<S>                                                   <C>         <C> 
Operating Activities:      
 Net Income                                           $ 31,097    $ 38,424
 Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization                       20,112      19,405   
    Deferred income taxes and investment tax credits     2,423       3,065   
    Other - net                                           (700)       (116)  
    Changes in assets and liabilities:
       Accounts receivable - net                        (4,010)    (11,089)  
       Unamortized purchased gas adjustments           (10,981)    (20,717)
       Deferred purchased gas costs                     22,694      21,015
       Delayed customer billings - net                 (22,246)    (14,695) 
       Accounts payable                                 (5,962)      8,643
       Refunds due customers                             7,479        (998)
       Taxes accrued                                     7,882       8,694
       Natural gas stored underground                   28,387      34,763
       Other assets and liabilities                    (14,009)    (13,889)  
                                                      --------------------
         Net cash provided by operating activities      62,166      72,505
                                                      --------------------
Investing Activities:                                                      
 Construction expenditures                             (35,920)    (31,491)  
 Investments - non-utility                              (1,344)     (1,708)
 Employee benefit trusts                                  (160)        478
 Other                                                      56       2,750   
                                                      --------------------
         Net cash used in investing activities         (37,368)    (29,971)  
                                                      --------------------
Financing Activities:
  Repayment of short-term debt - net                    (9,000)    (25,100) 
  Issuance of common stock                               1,415           -   
  Dividends paid                                       (17,379)    (17,016)  
  Issuance of first mortgage bonds                      25,000           -
  Retirement of first mortgage bonds                   (25,000)          -  
                                                      --------------------
         Net cash used in financing activities         (24,964)    (42,116)  
                                                      --------------------
Net Increase (Decrease) in Cash and Cash Equivalents      (166)        418
Cash and Cash Equivalents at Beginning of Period         4,508       4,360
                                                      -------------------- 
Cash and Cash Equivalents at End of Period            $  4,342    $  4,778   
                                                      ====================
Supplemental Disclosure of Cash Paid
 During the Period for:
  Interest                                             $18,669     $17,115   
  Income taxes                                           4,766       9,249   

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

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 the succeeding quarter of the fiscal year.

3.  Net provisions for income taxes were charged (credited) as follows       
    during the periods set forth below:
<TABLE>
<CAPTION>
                                Three Months Ended     Nine Months Ended     
                                     June 30,               June 30,
                                ------------------     ----------------- 
                                1998         1997      1998        1997 
                                ----         ----      ----        ----
                                           (Thousands of Dollars)
    <S>                         <C>       <C>         <C>      <C>
    Utility Operations
       Current:   
          Federal               $(7,772)  $(5,730)     $12,894  $16,276  
          State and local        (1,321)     (974)       2,253    2,742   

       Deferred:
          Federal                 6,774     5,875        1,826    2,445  
          State and local         1,219     1,073          505      638      
                                -----------------     -----------------
       Subtotal                 $(1,100)  $   244      $17,478  $22,101      
                                -----------------     -----------------
         
    Miscellaneous Income and
       Income Deductions
       Current:
          Federal               $  (234)   $   57      $   171  $   279      
          State and local            (2)       40           56       60  

       Deferred:
          Federal                    28       (50)          79      (16)     
          State and local             5        (7)          13       (2)     
                                -----------------     -----------------
       Subtotal                 $  (203)  $    40      $   319  $   321   
                                -----------------     ----------------- 
                  Total         $(1,302)  $   284      $17,798  $22,422   
                                =================     =================


 






</TABLE>
                                 Page 7 <PAGE>
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4.  The Company's Gas Supply Incentive Plan, which became effective October  
    1, 1996 for a three-year period as part of the settlement reached in the 
    Company's last 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 in certain gains and losses as measured  
    against benchmark levels of gas costs as related to the acquisition,     
    utilization and management of the Company's gas supply assets.  As part  
    of this Plan, the Company sells gas supply and pipeline capacity in      
    markets outside of its normal service territory.  Results of the Plan    
    are set forth below:
<TABLE>
<CAPTION>                          Three Months Ended      Nine Months Ended
                                        June 30,               June 30, 
                                  -------------------    -------------------
                                    1998       1997        1998       1997
                                    ----       ----        ----       ----
                                            (Thousands of Dollars)
    <S>                           <C>        <C>         <C>        <C>
    Incentive Plan Revenues       $ 6,877    $ 6,916     $24,504    $27,920
    Incentive Plan Gas Expense      5,424      5,229      19,662     22,634
                                  -------    -------     -------    -------
    Company Share - Pretax Income $ 1,453    $ 1,687     $ 4,842    $ 5,286
                                  =======    =======     =======    =======
</TABLE>
5.  As part of its annual review of the Company's gas costs, the Staff of    
    the Missouri Public Service Commission (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.     
    The Company will continue to vigorously oppose 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) on the question of 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), together with   
    an accompanying letter (collectively the "Submitted EE/CA Documents"),   
    in which the Company proposed to maintain various institutional controls 
    at this site, to stabilize the bank of a drainageway located at the edge 
    of the site, and to perform a limited removal of some contaminants       
    located in certain small areas of the site.  The EPA and the MoDNR have  
    proposed changes to the Submitted EE/CA Documents, to which Laclede has  
    responded.  At this time, given the lack of final agreement as to what   
    additional actions should be taken, the ultimate costs to be incurred    

                                 Page 8 <PAGE>
<PAGE>
    regarding the Shrewsbury Site remain unclear.  Assuming the              
    Company performs the limited actions described in the Submitted EE/CA    
    Documents and the actions included in the Company's response to the      
    EPA's and MoDNR's proposed changes to the submitted EE/CA Documents, the 
    Company estimates that the overall costs will be approximately $778,000. 
    As of June 30, 1998, $562,000 of such overall costs had been paid,       
    and an additional $216,000 was reserved by the Company.  If the Company  
    is required to take any additional actions with regard to the site, the  
    Company may have to incur additional costs, the extent of which cannot   
    practicably be estimated currently.  The Company has notified its        
    insurers that it intends to seek reimbursement from them of its          
    investigation, remediation, clean-up and defense costs.  The Company     
    intends to seek recovery, if practicable, from any other potentially     
    responsible parties.
    
    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.   
    MoDNR's preliminary tests conducted at the site reflect the presence of  
    coke and gas plant manufacturing wastes, as well as certain heavy metal  
    wastes.  The Company has also conducted an initial investigation,        
    consisting of soil sampling and the drilling of nine monitoring wells to 
    assess the condition of groundwater at this site.  The groundwater       
    monitoring portion of the initial investigation is scheduled to take one 
    year.  The Company currently estimates that the cost of its              
    investigation, MoDNR oversight costs and associated legal and            
    engineering consulting costs relative to such investigation of the site  
    would together approximate $145,000.  Currently, $112,000 has been paid  
    and an additional $33,000 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.

    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.
    
    Superior Oil Company and Union Pacific Railroad Company (the Plaintiffs) 
    named Laclede as an additional defendant in a lawsuit                    
    previously filed by the Plaintiffs against Allied Signal, Inc. and       
    Monsanto Company.  In this lawsuit the Plaintiffs are seeking            
    contribution from the defendants under the Comprehensive Environmental 
    Response, Compensation and Liability Act of 1980 (CERCLA) for response   
    costs which have been incurred, and which will be incurred, by the       
    Plaintiffs to remediate contamination at a site located in St. Louis,    
    Missouri which the Plaintiffs currently own and/or lease (the Superior   




                                 Page 9    <PAGE>
<PAGE>
    Oil Site).  The Plaintiffs contend that the three defendants should be   
    held jointly and severally liable for past and future response costs, in 
    Laclede's case, because:  (a) coal tar wastes allegedly are and have     
    been migrating onto the Superior Oil Site from an adjacent site, which   
    is the former location of one of Laclede's gas manufacturing plants; and 
    (b)  Laclede allegedly previously arranged for the disposal of coal 
    tar wastes at the Superior Oil Site through the operations of Barrett    
    Manufacturing Company (the predecessor in interest of Allied Signal,     
    Inc.).  The other parties to the lawsuit have filed an Engineering       
    Evaluation/Cost Analysis (EE/CA) with the EPA for the Superior Oil Site. 
    The EE/CA contains no apparent evidence that Laclede contributed         
    contaminants to the Superior Oil Site.  Laclede has commenced formal     
    discovery to determine what evidence, if any, exists which demonstrates  
    that Laclede contributed any contaminants to the Superior Oil Site. The  
    Superior Oil Site was also the subject of a separate CERCLA lawsuit      
    filed by the EPA against the Plaintiffs and several other potentially    
    responsible parties.  Laclede has been informed that the CERCLA lawsuit  
    filed by the EPA has been settled.  Laclede was not a party to the       
    lawsuit initiated by the EPA and has never been named by the EPA as a    
    responsible party at the Superior Oil Site.  Based upon the information  
    currently available to Laclede, Laclede believes that if Laclede is      
    found to have contributed at all to the contamination at the Superior    
    Oil Site, Laclede's share of the liability for response costs applicable 
    to the Superior Oil Site would be relatively small.  Accordingly, such   
    liability should have no material adverse impact on Laclede's financial  
    condition or results of operations.  Laclede intends to defend           
    vigorously the lawsuit in which it has been named a party. 
    
    The Missouri Public Service Commission approved, effective September 1,  
    1996, the continued use of a cost deferral mechanism, originally         
    approved as part of a 1994 rate case settlement, for the Company's use   
    in applying for appropriate rate recovery of various environmental costs 
    in connection with former manufactured gas plants.  Laclede has proposed 
    to continue this deferral mechanism in its rate case which is currently  
    pending before the Commission.  In any event, the recovery of costs thus 
    deferred may be challenged in the current or future rate proceedings.

7.  This Form 10-Q should be read in conjunction with the Notes to           
    Consolidated Financial Statements contained in the Company's 1997 Form   
    10-K.



















                                 Page 10<PAGE>
<PAGE>
                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS
Due to the seasonal nature of a business that primarily sells heating energy,
the Company normally experiences losses during the summer season, which
encompasses the third and fourth quarters of the fiscal year.  This year was
no different, and for the quarter ended June 30, 1998 the Company lost $.05 per
share.  However, during the third quarter of last year the weather was
significantly cooler.  This, coupled with the sale of the Company's remaining
exploration and development (E&D) properties during May 1997, produced positive
quarterly earnings of $.04 per share last year.  Thus, this year's decrease in
earnings primarily reflects reduced sales from weather that was warmer than
last year and the net proceeds of the sale of the Company's E&D properties.  

Utility operating revenues for the quarter ended June 30, 1998 were $77.2
million compared with $84.2 million for the quarter ended June 30, 1997.  The
$7.0 million, or 8.3%, decrease was principally due to lower gas sales volumes
arising from the warmer weather.  This decrease was slightly offset by higher
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 23.2 million therms, or 14.1%, below the quarter ended June 30,
1997.

Utility operating expenses for the quarter ended June 30, 1998 decreased by
$5.8 million, or 7.3%, below the same quarter last year.  Natural and propane
gas expense this quarter decreased $3.5 million, or 9.3%, below last year
mainly due to lower volumes purchased for sendout (resulting from the warmer
weather) partially offset by higher rates charged by the Company's 
suppliers.  Other operation and maintenance expenses decreased $.9 million, 
or 3.7%, due to decreased distribution charges and other decreases in the costs
of doing business.  Depreciation and amortization expense increased 5.4%
primarily due to additional property.  Taxes, other than income taxes,
decreased 3.6% mainly due to lower gross receipts taxes (reflecting decreased
revenues).  The $1.3 million decrease in income taxes is principally due to the
taxable loss experienced this quarter.

The slight decrease in miscellaneous income and income deductions reflects
gains recorded last year resulting from the sale of E&D properties, largely
offset by minor variations in several areas.  The 10.6% increase in interest
expense is mainly due to higher short-term borrowings and higher interest on
long-term debt resulting from the issuance of $25 million of 6-1/2% First
Mortgage Bonds in October 1997.

Earnings for the nine months ended June 30, 1998 were $1.76 per share compared
with $2.18 per share for the same period a year ago.  Lower sales resulting
from weather that was 11% warmer than last year and from reduced customer
consumption experienced this past heating season, as well as increases in the
costs of doing business, were largely responsible for the decreased earnings. 
 

Utility operating revenues for the first nine months of fiscal year 1998
decreased $51.4 million, or 9.5%, below the corresponding period of fiscal year
1997.  This decrease was principally due to the warmer weather conditions,
reduced customer consumption, and the effect of lower wholesale gas prices
(which are passed on to Laclede's customers under the Company's Purchased Gas
Adjustment Clause).  System therms sold and transported decreased by 62.2
million therms, or 6.3%, below the level experienced during the nine months
ended June 30, 1997.

                                 Page 11<PAGE>
<PAGE>
Utility operating expenses for the nine months ended June 30, 1998 decreased
by $45.0 million, or 9.2%, below last year.  Natural and propane gas expense
for the nine months ended June 30, 1998 decreased by $39.5 million, or 12.0%,
below last year primarily due to reduced volumes purchased for sendout
(resulting mainly from the warmer weather) and lower rates charged by our
suppliers.  Other operation and maintenance expenses increased $1.0 million,
or 1.3%, due to increased distribution charges, higher wage rates, and other
increases in the costs of doing business.  These increases were partially
offset by higher gains recognized on lump sum pension settlements. 
Depreciation and amortization expense increased 3.4% primarily due to
additional property.  Taxes, other than income taxes, decreased by 6.4%
principally due to lower gross receipts taxes (mainly reflecting decreased
revenues), partially offset by higher property taxes.  The $4.6 million
decrease in income taxes is mainly due to lower taxable income.

Miscellaneous income and income deductions for the nine months ended June 30,
1998 increased $.7 million above the same period last year primarily due to
improved subsidiary results and minor variations in several areas.  The 11.3%
increase in interest expense is mainly due to higher interest on long-term debt
resulting from the issuance of $25 million of 6-1/2% First Mortgage Bonds in
October 1997 and increased short-term borrowings.

On February 27, 1998, the Company filed a request with the Missouri Public
Service Commission for a general rate increase which would add $25.4 million
to operating revenues on an annual basis.  This increase is necessary to offset
generally higher operating costs as well as the added costs of operating,
maintaining, and financing the increased investment in new facilities the
Company has installed since the filing of its last general rate increase in
December 1995.  The Commission suspended the Company's proposed general rate
increase, pending formal hearings.  Such hearings are currently scheduled to
commence in October 1998.  Under Missouri law, the Commission has up to eleven
months before it must act on this 1998 request, but the Company is hopeful the
Commission will allow new rates to be implemented prior to January, 1999.

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 1998, the Company renewed its primary lines of bank credit under
which it may borrow up to $40 million prior to January 31, 1999, with renewal
of any loans outstanding on that date permitted to June 30, 1999.  This, along
with a previously obtained $70 million supplemental line of credit which runs
through August 30, 1998, provides a total line of credit of $110 million for
the 1997-1998 heating season.  During fiscal 1998 to date, the Company sold
commercial paper aggregating to a maximum of $110.0 million at any one time,
but did not borrow from the banks under the aforementioned agreements.  Short-
term borrowings amounted to $65.0 million at June 30, 1998.

The Company redeemed the $25 million of 9-5/8% Series First Mortgage Bonds due
May 15, 2013, on May 15, 1998 (the date at which such bonds were first
redeemable).  The funds for this purpose were supplied by short-term borrowing
agreements currently in place.  The Company currently has $25 million of First
Mortgage Bonds remaining unissued from a previously authorized shelf
registration.

                                 Page 12<PAGE>
<PAGE>
As part of its annual 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.  The 
Company will continue to vigorously oppose 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.  

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.  However, the Company has
reported certain environmental liabilities in connection with two manufactured
gas plants operated by the Company in the past which produced certain by-
products and residuals.  The Company has either already paid or reserved
overall costs of $923,000 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.  The Missouri Public Service Commission approved, effective
September 1, 1996, the continued use of a cost deferral mechanism, originally
approved as part of a 1994 rate case settlement, for the Company's use in
applying for appropriate rate recovery of various environmental costs in
connection with former manufactured gas plants.  Laclede has proposed to
continue this deferral mechanism in its rate case which is currently pending
before the Commission.  In any event, 
the recovery of costs thus deferred may be challenged in the current or future
rate proceedings.  Refer to Note 6 of the Unaudited Notes to Consolidated
Financial Statements on page 8 for additional information on the Company's
environmental matters.

Construction expenditures for the nine months ended June 30, 1998 were $35.9
million compared with $31.5 million for the same period last year.

Many of the Company's computer systems and applications will not recognize the
turn of the century and, thus, require programming modification or replacement. 
For more than two years, the Company, through the use of internal and external
resources, has been involved in the process of modifying and replacing
significant portions of its computer systems in order to make such systems
operational in the year 2000 and beyond, as well as to provide additional
benefits.  The costs associated with the replacement of certain computer
systems are being recorded as assets and will be amortized, while the costs of
modifying the remaining systems to fix the year 2000 problem are being charged
to expense.  Currently, the Company estimates that the costs remaining to be
incurred and ultimately charged to expense will not exceed $2 million.  Actual
costs, however, may differ materially from such estimate to the extent the
Company encounters unforeseen issues and/or problems during its ongoing year
2000 assessment.  

In March, the Company announced that it had reached an agreement with Williams
Gas Pipelines Central of Tulsa, Oklahoma under which Williams will provide
additional natural gas service to the Company's service area.  Under the
agreement, Williams will convert to natural gas service an existing 200-
mile petroleum products line that stretches eastward from Kansas City to St.
Louis.  Williams presently owns and operates the nation's largest interstate

                                 Page 13<PAGE>
<PAGE>
natural gas pipeline system in terms of volumes transported and is connected
to diverse and abundant natural gas reserves.  The new pipeline will provide
for the delivery of competitive, supplemental gas supplies that are needed by
the Company to ensure continued reliable service to the fast-growing St.
Charles, Missouri area.  Williams is expected to begin firm transportation
service to the Company through the new line in October 1998.

Capitalization at June 30, 1998 increased $39.8 million since September 30,
1997 and consisted of 59.5% common stock equity, .4% preferred stock equity and
40.1% long-term debt.

















































                                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
         
         On October 6, 1997, Energy Source, Inc. (Energy Source, Inc. and
         its affiliates are hereinafter referred to individually and         
         collectively as "ESI") filed an amended petition (Amended Petition)
         in the district court of Harris County, Texas, in which ESI has     
         named the Company as a party defendant to certain litigation        
         previously initiated among ESI, Panhandle Eastern Pipe Line Company 
         (PEPL) and PanEnergy Corporation (PanEnergy) (PEPL and PanEnergy
         are hereinafter referred to individually and collectively as 
         "Panhandle"). ESI previously supplied natural gas to the Company
         under an agreement which gas expired.  The Company selected a 
         different supplier to furnish gas beyond the expiration date of
         such agreement.  PEPL provided pipeline transportation services 
         under both the arrangement with ESI and the Company's new 
         arrangement with the Company's current supplier.  In its Amended
         Petition, ESI asserts, among other things, that the Company: 
         (a) allegedly conspired with Panhandle, in violation of the Texas   
         Business and Commerce Code, in Panhandle's alleged attempt to       
         monopolize certain gas transportation markets, through unlawful     
         tying arrangements and other anti-competitive means; and (b)
         interfered with ESI's contractual arrangements with Panhandle by    
         misrepresenting to ESI the status of the Company's then pending     
         negotiations with ESI, and other potential suppliers.  On July 29,  
         1998, ESI filed a Notice of Nonsuit indicating that it was          
         dismissing, without prejudice, all of its claims against the        
         Company in this litigation, effective immediately upon the filing   
         of the Notice.    
         
         For a discussion of environmental matters, see Note 6 of the        
         Unaudited Notes to Consolidated Financial Statements in Part I,     
         Financial Information.  
         
         During the quarter ended June 30, 1998, there were no new legal     
         proceedings required to be disclosed.  

Item 5.  Other Information
         
         In certain proceedings, the MoPSC has examined the operation of
         purchased gas adjustment clauses under which gas distribution
         utilities, such as the Company, pass through to customers increases
         and decreases in the wholesale cost of natural gas.  In January 
         1996, the MoPSC issued an order in which it rejected arguments that
         such clauses were unlawful and affirmed the legality of such a 
         clause utilized by another utility.  In December 1996, the Circuit
         Court of Cole County, Missouri upheld the MoPSC's order.  The
         Circuit Court's decision was subsequently appealed by several
         parties to the Missouri Court of Appeals, Western District.  On
         June 2, 1998, the Missouri Court of Appeals, Western District,
         issued its opinion wherein it also upheld the MoPSC's order.
         Certain parties continue to seek further review of the matter.
         The Company continues to participate in the appellate proceedings
         supporting the affirmation of the MoPSC's order.



                                 Page 16<PAGE>
         Effective September 1, 1998, the Company has appointed UMB Bank,
         National Association ("UMB") to serve as transfer agent, as well as
         in various other capacities with regard to shareholders' stock      
         interests in the Company.  UMB will succeed ChaseMellon Shareholder 
         Services, L.L.C. ("CMSS") and its affiliate, The Chase Manhattan    
         Bank, in these capacities.  As a result of such appointment, the    
         Company, effective September 1, 1998, is removing CMSS as Rights    
         Agent under the Company's Rights Agreement dated as of April 3,     
         1996, and UMB will be the successor Rights Agent.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  See Exhibit Index

         (b)  Reports on Form 8-K

              The Company filed no reports on Form 8-K during the            
              quarter ended June 30, 1998.









































                                 Page 17<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: August 7, 1998                                G. T. McNeive, Jr.
                                                   -------------------
                                                    G. T. McNeive, Jr.
                                              Sr. Vice President - Finance   
                                                  and General Counsel
                                               (Authorized Signatory and
                                               Chief Financial Officer) 





























                                 Page 18     <PAGE>
<PAGE>




                          Index to Exhibits


                                                                             
                                                                             
                                                               Sequentially
Exhibit                                                          Numbered
Number            Exhibit                                          Page
-------           -------                                      ------------  
                                  
    
10.01         Amendment (effective as of January 15, 1998) to 
              Laclede Gas Company Trust Agreement (dated as of 
              September 4, 1990) relating to the Laclede Gas 
              Company Supplemental Retirement Plan.                 20       
                     
10.02         Amendment (effective as of January 15, 1998) to 
              Laclede Gas Company Trust Agreement (dated as of
              December 7, 1989).                                    29

27            Financial Data Schedule UT                            38 






















                                 









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