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 March 31, 1999 
                                                                             
                                     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 4/22/99.
      







                                        
                                 Page 1<PAGE>
<PAGE>





               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    Six Months Ended
                                         March 31,            March 31, 
                                      1999       1998      1999       1998  
                                      ----       ----      ----       ---- 
<S>                                 <C>        <C>       <C>        <C>
Utility Operating Revenues          $206,956   $213,826  $356,652   $413,493
                                    -------------------  -------------------
Utility Operating Expenses:
  Natural and propane gas            121,060    130,081   207,708    256,390
  Other operation expenses            22,276     23,101    45,925     45,760
  Maintenance                          4,738      4,513     9,795      9,455 
  Depreciation and amortization        5,342      6,666    10,627     13,267 
  Taxes, other than income taxes      16,256     15,765    26,773     28,507
  Income taxes (Note 3)               12,281     10,425    17,345     18,578 
                                    -------------------  ------------------- 
Total Utility Operating Expenses     181,953    190,551   318,173    371,957 
                                    -------------------  -------------------
Utility Operating Income              25,003     23,275    38,479     41,536 
Miscellaneous Income and Income
  Deductions - Net (less 
  applicable income taxes) (Note 3)      643        722     2,178      1,589 
                                    -------------------  -------------------
Income Before Interest Charges        25,646     23,997    40,657     43,125 
                                    -------------------  -------------------
Interest Charges:
  Interest on long-term debt           3,347      3,949     6,694      7,802 
  Other interest charges               2,161      1,678     4,118      3,320 
                                    -------------------  -------------------
    Total Interest Charges             5,508      5,627    10,812     11,122 
                                    -------------------  -------------------
Net Income                            20,138     18,370    29,845     32,003 
Dividends on Preferred Stock              25         25        49         49 
                                    -------------------  -------------------
Earnings Applicable to Common Stock $ 20,113   $ 18,345  $ 29,796   $ 31,954 
                                    ===================  =================== 
Average Number of Common 
  Shares Outstanding                  17,628     17,594    17,628     17,575

Earnings Per Share of Common Stock     $1.14      $1.04     $1.69      $1.82

Dividends Declared Per Share
  of Common Stock                      $.335       $.33      $.67       $.66 

<FN>
             See notes to consolidated financial statements.







</TABLE>

                                  Page 3<PAGE>
<PAGE>
<TABLE>
             LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                       CONSOLIDATED BALANCE SHEETS
<CAPTION>                         
                                                       Mar. 31     Sept. 30
                                                         1999        1998
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                     (UNAUDITED)
                                  ASSETS
<S>                                                    <C>         <C>  
Utility Plant                                          $853,370    $833,685
   Less:  Accumulated depreciation and amortization     349,702     343,100
                                                       --------------------
   Net Utility Plant                                    503,668     490,585
                                                       --------------------
Other Property and Investments                           28,680      33,834
                                                       --------------------
Current Assets:
   Cash and cash equivalents                              9,621       3,718
   Accounts receivable - net                             83,608      46,055
   Materials, supplies, and merchandise at avg cost       5,489       5,591
   Natural gas stored underground for current use 
      at LIFO cost                                       18,263      54,973
   Propane gas for current use at FIFO cost              11,699      12,840  
   Prepayments                                            3,485       2,927
   Delayed customer billings                             12,545           -
   Deferred income taxes                                  6,632       9,933
                                                       --------------------
      Total Current Assets                              151,342     136,037
                                                       --------------------
Deferred Charges                                        116,477     110,691
                                                       --------------------
Total Assets                                           $800,167    $771,147
                                                       ====================

<FN>             

             See notes to consolidated financial statements.









</TABLE>

                                      









                                 Page 4 <PAGE>
<PAGE>
<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                 CONSOLIDATED BALANCE SHEETS (Continued)
<CAPTION>
                                                       Mar. 31     Sept. 30
                                                         1999        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                                   216,328     198,342
   Treasury stock, at cost (1,865,638 shares held)     (24,017)    (24,017)  
                                                      -------------------- 
      Total common stock equity                        274,771     256,785
   Redeemable preferred stock                            1,960       1,960 
   Long-term debt (less sinking fund requirements)     179,280     179,238
                                                      --------------------   
         Total Capitalization                          456,011     437,983   
                                                      --------------------  
Current Liabilities:
   Notes payable                                        86,000      98,500   
   Accounts payable                                     26,341      20,692
   Refunds due customers                                 1,232       7,589   
   Advance customer billings                                 -       8,936   
   Taxes accrued                                        24,440       8,690
   Unamortized purchased gas adjustments                 6,092      15,815   
   Other                                                24,595      23,429 
                                                      --------------------   
     Total Current Liabilities                         168,700     183,651
                                                      --------------------  
Deferred Credits and Other Liabilities:
   Deferred income taxes                                91,510     102,856   
   Unamortized investment tax credits                    6,760       6,933   
   Other                                                77,186      39,724
                                                      --------------------
      Total Deferred Credits and Other Liabilities     175,456     149,513
                                                      --------------------
Total Capitalization and Liabilities                  $800,167    $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>
                                                         Six Months Ended    
                                                             March 31,
                                                         1999        1998
                                                         ----        ----
                                                     (Thousands of Dollars)
<S>                                                   <C>         <C> 
Operating Activities:      
 Net Income                                           $ 29,845    $ 32,003
 Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization                       10,690      13,316   
    Deferred income taxes and investment tax credits    (5,887)     (5,603)  
    Other - net                                         (1,926)       (646)
    Changes in assets and liabilities:
       Accounts receivable - net                       (37,553)    (39,764)
       Unamortized purchased gas adjustments            (9,723)     (7,159)  
       Deferred purchased gas costs                     39,708      30,883
       Delayed customer billings - net                 (21,481)    (36,330)
       Accounts payable                                  5,649       8,353
       Refunds due customers                            (6,357)      8,209   
       Taxes accrued                                    15,750      16,694   
       Natural gas stored underground                   36,710      35,524
       Other assets and liabilities                     (8,770)     (6,069)  
                                                      --------------------
         Net cash provided by operating activities      46,655      49,411
                                                      --------------------
Investing Activities:                                                      
 Construction expenditures                             (22,952)    (22,054)
 Investments - non-utility                               2,837      (1,011)  
 Employee benefit trusts                                 4,126         267
 Other                                                    (492)       (122)
                                                      --------------------
         Net cash used in investing activities         (16,481)    (22,920)  
                                                      --------------------
Financing Activities:
  Repayment of short-term debt                         (12,500)    (39,500)  
  Issuance of common stock                                   -         978   
  Dividends paid                                       (11,771)    (11,549)  
  Issuance of first mortgage bonds                           -      25,000   
                                                      --------------------
         Net cash used in financing activities         (24,271)    (25,071)  
                                                      ---------------------
Net Increase in Cash and Cash Equivalents                5,903       1,420
Cash and Cash Equivalents at Beginning of Period         3,718       4,508
                                                      -------------------- 
Cash and Cash Equivalents at End of Period            $  9,621   $   5,928   
                                                      ====================
Supplemental Disclosure of Cash Paid
 During the Period for:
  Interest                                             $10,099     $ 9,572   
  Income taxes                                           5,055       4,435

<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 management's opinion, 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.  Laclede Gas Company is a natural gas distribution utility having a       
    material seasonal cycle. As a result, this interim statement of          
    consolidated income is not necessarily indicative of annual results nor  
    representative of succeeding quarters of the fiscal year.  Due to the    
    seasonal nature of the Company's business, earnings are typically        
    concentrated in the first six months of the fiscal year, which generally 
    corresponds with the heating season.  Fiscal year earnings will likely   
    be lower than earnings during the first six months of the fiscal year,   
    reflecting typically lower summer sales volumes, partially offset by     
    lower operating expenses.

3.  Net provisions for income taxes were charged (credited) as follows       
    during the periods set forth below:
<TABLE>
<CAPTION>                       Three Months Ended      Six Months Ended     
                                    March 31,             March 31,
                                ------------------     ----------------- 
                                1999         1998      1999        1998 
                                ----         ----      ----        ----
                                           (Thousands of Dollars)
    <S>                        <C>       <C>         <C>       <C>
    Utility Operations
       Current:   
          Federal               $17,712   $14,146     $20,241   $20,666  
          State and local         2,991     2,475       3,412     3,574   

       Deferred:
          Federal                (7,149)   (5,348)     (5,378)   (4,948)  
          State and local        (1,273)     (848)       (930)     (714)     
                                -----------------     -----------------
       Subtotal                 $12,281   $10,425     $17,345   $18,578      
                                -----------------     -----------------
         
    Miscellaneous Income and
       Income Deductions
       Current:
          Federal               $   232   $   305     $   318   $   405      
          State and local            33        42          44        58

       Deferred:
          Federal                    15        33         364        51  
          State and local             2         5          57         8 
                                -----------------     -----------------
       Subtotal                 $   282   $   385     $   783   $   522  
                                -----------------     ----------------- 
                  Total         $12,563   $10,810     $18,128   $19,100   
                                =================     =================

 </TABLE>



                                 Page 7 <PAGE>
<PAGE>
4.  The Company's Gas Supply Incentive Plan 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.  This plan continues 
    to provide significant benefits for both the Company's shareholders and  
    customers.  Under this plan, the Company and its customers share as      
    follows:
      -  sales of gas outside of the Company's traditional service area, of  
         which 70% of the income is allocated to Laclede's customers and the 
         balance to the Company's shareholders
      -  releases of pipeline capacity, of which 70% to 90% of the revenues  
         are allocated to Laclede's customers and the balance is allocated   
         to its shareholders
      -  savings from discounts off of maximum pipeline transportation       
         rates, of which 80% to 90% of the savings is allocated to Laclede's 
         customers and the balance to its shareholders, and
      -  gains and losses as measured against a benchmark level of gas       
         cost, of which the Company is allocated 50%. 

    Results of the plan are set forth below.  These results may not be       
    representative of results in future periods due to the volatile and      
    seasonal nature of these efforts.
<TABLE>
<CAPTION>                        Three Months Ended     Six Months Ended
                                      March 31,             March 31, 
                                -------------------    -------------------
                                  1999       1998        1999       1998
                                  ----       ----        ----       ----
                                          (Thousands of Dollars)
    <S>                         <C>        <C>         <C>        <C>
    Net Benefits to Customers   
      and Shareholders          $ 5,553    $ 6,904     $12,349    $15,628 
    ---------------------------------------------------------------------

    Shareholder Benefits
    Incentive Plan Revenues     $ 5,046    $11,094     $11,144    $17,627
    Incentive Plan Gas Expense    4,283      9,796       9,168     14,238
                                -------    -------     -------    -------
    Company Share - 
         Pretax Income          $   763    $ 1,298     $ 1,976    $ 3,389
                                =======    =======     =======    =======
    </TABLE>
    The incentive plan revenues are included in the utility operating        
    revenues line in the Company's financial statements.  Expenses related   
    to the incentive plan are included in the natural and propane gas        
    expense line in the financial statements.

    On January 14, 1999, the Company filed tariff sheets with the Missouri   
    Public Service Commission to implement a modified incentive plan for     
    another three-year term commencing upon the expiration of the current    
    incentive plan.  The modified incentive plan proposal is scheduled to be 
    heard in July 1999.

5.  In September 1997, the staff of the Missouri Public Service Commission   
    (MoPSC) recommended that Laclede refund $3.6 million to its ratepayers   
    in connection with its sale of gas outside of Missouri during fiscal     
    1996, which was prior to the approval of the incentive plan.  Laclede    
    believes it had full authority to enter into these transactions in part  
    under the implementation of the Federal Energy Regulatory Commission's   
    Order No. 636.  Laclede filed testimony opposing the recommendation made 
   by the Staff of the MoPSC.     

                                 Page 8<PAGE>
<PAGE>
    Formal hearings were held on this issue in October 1998.  On April 20,   
    1999, the MoPSC issued its order rejecting the proposal of its staff.
    This order will become effective on April 30, 1999.  Any request for 
    rehearing of the order must be filed by April 30, 1999. 

6.  The Company is subject to various environmental laws and regulations.    
    To date they have not materially affected 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, Laclede performed         
    an investigation of one of the Company's former manufactured gas plant   
    sites located in Shrewsbury, Missouri.  Subsequently, the Company and    
    the state and federal environmental regulatory agencies agreed upon the  
    actions needed at this site.  The Company currently estimates the        
    overall costs of these actions will be approximately $1,135,000.  As of  
    March 31, 1999, the Company has paid $638,000 and reserved $497,000 for  
    these actions.  If the regulatory agencies require any additional        
    actions, Laclede will incur additional costs.   

    The Company also applied to place the site of a different former         
    manufactured gas plant in the City of St. Louis, Missouri in the         
    Missouri Voluntary Cleanup Program.  Laclede ceased its operations at    
    and sold this site in 1950.  Subsequent owners of this site used it as a 
    coke manufacturing facility.  The Missouri Department of Natural         
    Resources accepted the Company's application.  Acceptance provides       
    opportunities to minimize costs of remediation and maximize              
    possibilities of site development.  Laclede submitted a sampling plan to 
    the Missouri Department of Natural Resources on November 16, 1998.  The  
    Company is completing the sampling plan.  Laclede currently estimates    
    that the cost of the investigation, oversight costs and legal and        
    engineering consulting costs for this site may be approximately          
    $534,000.  Currently, the Company has paid $263,000 and reserved an      
    additional $271,000.  The Company has requested that other former site   
    owners 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 relative to this site from      
    those parties or any other potentially responsible parties if            
    practicable.

    While the scope or costs relative to the site in Shrewsbury will not     
    be material, the scope or costs relative to the City of St. Louis site   
    are unknown and may be material.  The Company has notified its insurers  
    that it intends to seek reimbursement from them of its costs at both     
    these sites.  None of the Company's insurers have agreed that its        
    insurance covers the costs for which the Company intends to seek         
    reimbursement.  The majority of the insurers have sent Laclede letters   
    reserving their rights with respect to the manufactured gas plant issues 
    addressed in the Company's notices to them.  While some of the insurers  
    have denied coverage with respect to these issues, the Company continues 
    to seek reimbursement from them.  With regard to the Shrewsbury site,    
    the denial of coverage will not have any material impact on the Company. 
    With regard to the City of St. Louis site, since the scope or costs      
    relative to this site are unknown and may be material, the denial of     
    coverage may have a material impact on the Company.

    In the Company's 1998 rate case, the MoPSC approved the Company's        
    continued use of a cost deferral mechanism for these costs.  Through     

                                 Page 9<PAGE>
<PAGE>    
    this, the Company may apply for appropriate rate recovery of these       
    costs.  The recovery of these costs, however, may be challenged in       
    future rate proceedings.

7.  Laclede Pipeline Company, Laclede Gas Company's wholly-owned subsidiary, 
    owns and operates a propane pipeline which connects Laclede Gas          
    Company's 800,000-barrel, or approximately 33 million gallons, propane   
    storage facilities in St. Louis County, Missouri, to propane supply      
    terminal facilities located at Wood River and Cahokia, Illinois.         
    Laclede Pipeline Company transports liquid propane through this pipeline 
    to Laclede Gas Company for storage.  Laclede Gas Company ultimately      
    vaporizes and uses the propane to supplement its natural gas supply to   
    meet the peak demands on the distribution system.  Laclede Pipeline      
    Company's contract with Phillips Petroleum Company, which provided for   
    delivery of up to 35 million gallons of propane annually, expired on     
    March 31, 1999.  Laclede Gas Company will not be adversely affected by   
    this termination, as Laclede Pipeline Company will either purchase the   
    pipeline from Phillips for about $1.5 million or build a new pipeline    
    for about $3.0 million before the next heating season.      

8.  On October 30, 1998, the Missouri Public Service Commission (MoPSC)      
    issued an order opening a docket addressing the adequacy of              
    Laclede's copper service line replacement program.  Under this           
    docket, the staff must advise the MoPSC of the status of its             
    investigation by April 30, 1999.  The Company currently faces one        
    lawsuit and two claims relative to incidents where gas has               
    apparently leaked from direct buried copper service lines.  Laclede      
    is unable to predict at this time what action, if any, the MoPSC         
    may take in this docket or the outcome of this lawsuit or any of         
    these claims.  

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


























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

RESULTS OF OPERATIONS

Quarter Ended March 31, 1999
----------------------------

Earnings were $1.14 per share compared with $1.04 per share for the
comparable quarter last year.  While the weather this quarter was 7% colder
than during the same period last year, it was 8% warmer than normal. 
Earnings increased due to expense reductions and higher gas sales, offset
partially by higher costs of doing business.  The expense reductions
resulted from regulatory accounting changes instituted July 1, 1998 as part
of the Company's 1998 rate case settlement.  

Utility operating revenues were $207.0 million compared with $213.8 million
for the quarter ended March 31, 1998.  The $6.8 million, or 3.2%, decrease
resulted primarily from lower gas costs and lower incentive plan revenue,
offset partially by higher gas sales.  Laclede's gas costs impact its
revenues since those costs are passed on to its customers under its
purchased gas adjustment clause.  The colder weather led to the higher gas
sales.  System therms sold and transported increased by 25.7 million therms,
or 6.0%, above the quarter ended March 31, 1998.

Utility operating expenses decreased by $8.6 million, or 4.5%, below these
expenses in the same quarter last year.  Natural and propane gas expense in
this quarter decreased $9.0 million, or 6.9%, below the expense for last
year's second quarter.  This decrease reflects lower rates to the Company
for natural and propane gas and lower incentive plan expense, which were
partially offset by an increase in gas purchases for the colder weather. 
Other operation and maintenance expenses decreased $.6 million from last
year.  This decrease was due to lower net pension costs and distribution
expenses, which were largely offset by four items:  lower gains on lump sum
pension settlements, a higher provision for uncollectible accounts, higher
wage rates and other increases in the costs of doing business.  Depreciation
and amortization expense decreased 19.9% from the amount for the same period
last year primarily due to lower depreciation rates which were partially
offset by additional depreciable property.  The Company instituted the lower
depreciation rates on July 1, 1998 as authorized in its 1998 rate case
settlement.  Taxes, other than income taxes, increased 3.1% over the amount
for last year mainly due to higher real estate and personal property taxes
in this fiscal year.  The $1.9 million increase in income taxes is
principally due to higher pre-tax income.

Miscellaneous income and income deductions decreased slightly due to minor
variations in several areas.  Interest expense dropped by 2.1% due mainly to
the redemption in May 1998 of a 9 5/8% first mortgage bond issue.  This
decrease in long term interest was largely offset by increased short-term
interest expense due to higher average borrowings.  









                                 Page 11<PAGE>
<PAGE>
Six Months Ended March 31, 1999
-------------------------------

Due to the seasonal nature of the Company's business, earnings are typically 
concentrated in the first six months of the fiscal year, which generally    
corresponds with the heating season.  Fiscal year 1999 earnings will likely  
be lower than earnings during the first six months of this fiscal year,      
reflecting typically lower summer sales volumes, partially offset by
anticipated lower operating expenses.  Earnings were $1.69 per share
compared with $1.82 per share for the comparable period last year.  The
weather was 11% warmer than normal and 6% warmer than last year.  The
decrease in earnings was primarily due to lower gas sales, lower
incentive plan income, and higher costs of doing business.  These decreases
were partially offset by expense reductions resulting from the regulatory
accounting changes instituted July 1, 1998 as part of the settlement of the
Company's 1998 rate case.  

Utility operating revenues decreased $56.8 million, or 13.7% below the
corresponding period of fiscal year 1998.  This decrease was primarily due
to lower wholesale gas costs, lower gas sales volumes arising from the
warmer weather and lower incentive plan revenue.  System therms sold and
transported decreased by 35.6 million therms, or 4.6% below the level
experienced during the six months ended March 31, 1998.

Utility operating expenses decreased by $53.8 million, or 14.4% below last
year.  Natural and propane gas expense decreased by $48.7 million, or 19.0%,
below last year mainly due to lower rates charged by our suppliers, reduced
gas purchases resulting from the warmer weather and lower incentive plan
expense.  Other operation and maintenance expenses increased slightly due to
a higher provision for uncollectible accounts, lower gains recognized this
fiscal year on lump sum pension settlements, higher wage rates and other
increases in the costs of doing business.  These increases were largely
offset by lower net pension costs and reduced distribution expenses. 
Depreciation and amortization expense decreased 19.9% primarily due to lower
depreciation rates, partially offset by additional depreciable property. 
Taxes, other than income taxes, decreased by 6.1% principally due to lower
gross receipts taxes, mainly reflecting decreased revenues.  The $1.2
million decrease in income taxes is mainly due to lower pre-tax income.

Miscellaneous income and income deductions increased $.6 million above the
same period last year 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 partnership.  The gain was partially offset by lower subsidiary
income and minor variations in several areas.  The 2.8% decrease in interest
expense is mainly due to 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 12         <PAGE>
<PAGE>
Updated Regulatory Matters
--------------------------

On January 26, 1999, Laclede filed a request with the Missouri Public
Service Commission (MoPSC) for a general rate increase to recover costs
related to the operation of its gas distribution system.  Laclede does not
anticipate higher rate levels during the current fiscal year, because the
MoPSC generally suspends a general rate increase request until it has
reviewed and audited the filing, held hearings and reached its determination
whether and to what extent the rate increase request should be granted.  By
statute, the MoPSC process may take no longer than eleven months.  Laclede's
request is for a rate adjustment that would increase its annual revenues by
$30.5 million and increase a typical residential heating customer's bill by
about 5.8%, or $3.37 a month.  The MoPSC has set August 9, 1999 as the date
to begin hearings on the request.  Historically, the MoPSC has not granted
Laclede's rate increase requests in full.

The Company's gas supply incentive plan 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.  This plan continues to provide
significant benefits for both the Company's shareholders and customers. 
Under this plan, the Company and its customers share in benefits from:
sales of gas outside of the Company's traditional service area, releases of
pipeline capacity, savings from discounts off of maximum pipeline
transportation rates, and gains and losses as measured against a benchmark
level of gas cost.  For additional information on the incentive plan, see
Note 4 of Notes to Consolidated Financial Statements, on page 8. 

On January 14, 1999, the Company filed tariff sheets with the Missouri
Public Service Commission to implement a modified incentive plan for another
three-year term commencing upon the expiration of the current incentive
plan.  The modified incentive plan proposal is scheduled to be heard in July
1999.

Since the Company began operating under the incentive plan in October 1996,
Laclede has achieved overall net benefits of $78.4 million for its
shareholders and customers.  During the six months ended March 31, 1999, the
incentive plan operations resulted in gas cost savings of $10.3 million to
its customers and $2.0 million in pretax income to its shareholders.


LIQUIDITY AND CAPITAL RESOURCES

The Company's short-term borrowing requirements typically peak during colder
months when the Company borrows money to cover the gap between when the
Company purchases its natural gas and when the Company's customers pay the
Company for that gas.  These 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, provided total lines
of credit of $160 million for the majority of the 1998-1999 heating season.




                                 Page 13<PAGE>
<PAGE>
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 $86.0 million at March 31, 1999.

In January 1999, the Missouri Public Service Commission (MoPSC) authorized
the Company to issue and sell up to 1,250,000 shares of its common stock.  
The Company filed a registration statement with the Securities and Exchange
Commission for the registration of these shares of common stock on March 15,
1999, which was amended on April 15, 1999.  This registration statement is
not yet effective.  The Company plans, subject to financial market
conditions and other factors, to sell these shares in the near future
through an underwriting group led by Merrill Lynch & Co. and A.G. Edwards &
Sons, Inc.  The net proceeds will be used to repay short-term debt.
                                 
On April 8, 1999, the MoPSC approved the Company's request for a two-year
extension, to April 21, 2001, of its authority to sell up to $25 million of
additional first mortgage bonds.  The MoPSC originally authorized the
issuance and sale of $100 million of first mortgage bonds, of which $75
million has already been issued and sold.  The amount and timing of any
future issuance will be subject to management's evaluation of need,
financial market conditions, and other factors.

Laclede Pipeline Company, Laclede Gas Company's wholly-owned subsidiary,     
owns and operates a propane pipeline which connects Laclede Gas              
Company's 800,000-barrel, or approximately 33 million gallons, propane       
storage facilities in St. Louis County, Missouri, to propane supply          
terminal facilities located at Wood River and Cahokia, Illinois.             
Laclede Pipeline Company transports liquid propane through this pipeline     
to Laclede Gas Company for storage.  Laclede Gas Company ultimately          
vaporizes and uses the propane to supplement its natural gas supply to       
meet the peak demands on the distribution system.  Laclede Pipeline          
Company's contract with Phillips Petroleum Company, which provided for       
delivery of up to 35 million gallons of propane annually, expired on         
March 31, 1999.  Laclede Gas Company will not be adversely affected by       
this termination, as Laclede Pipeline Company will either purchase the       
pipeline from Phillips for about $1.5 million or build a new pipeline        
for about $3.0 million before the next heating season.      

Construction expenditures for the six months ended March 31, 1999 were $23.0
million compared with $22.1 million for the same period last year.
Capitalization at March 31, 1999 increased $18.0 million from September 30,
1998 and consisted of 60.3% common stock equity, .4% preferred stock equity,
and 39.3% long-term debt.

The seasonality of the Company's business impacts some balance sheet items
such as Accounts Receivable - Net, Natural Gas Stored Underground, Delayed 
and Advance Customer Billings and Accounts Payable.











                                 Page 14<PAGE>
<PAGE>
ENVIRONMENTAL MATTERS

The Company is subject to various environmental laws and regulations.        
To date they have not materially affected 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, Laclede performed             
an investigation of one of the Company's former manufactured gas plant       
sites located in Shrewsbury, Missouri.  Subsequently, the Company and        
the state and federal environmental regulatory agencies agreed upon the      
actions needed at this site.  The Company currently estimates the            
overall costs of these actions will be approximately $1,135,000.  As of      
March 31, 1999, the Company has paid $638,000 and reserved $497,000 for      
these actions.  If the regulatory agencies require any additional            
actions, Laclede will incur additional costs.   

The Company also applied to place the site of a different former             
manufactured gas plant in the City of St. Louis, Missouri in the             
Missouri Voluntary Cleanup Program.  Laclede ceased its operations at        
and sold this site in 1950.  Subsequent owners of this site used it as a     
coke manufacturing facility.  The Missouri Department of Natural             
Resources accepted the Company's application.  Acceptance provides           
opportunities to minimize costs of remediation and maximize                  
possibilities of site development.  Laclede submitted a sampling plan to     
the Missouri Department of Natural Resources on November 16, 1998.  The      
Company is completing the sampling plan.  Laclede currently estimates        
that the cost of the investigation, oversight costs and legal and            
engineering consulting costs for this site may be approximately              
$534,000.  Currently, the Company has paid $263,000 and reserved an          
additional $271,000.  The Company has requested that other former site       
owners 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 relative to this site from          
those parties or any other potentially responsible parties if                
practicable.

While the scope or costs relative to the site in Shrewsbury will not         
be material, the scope or costs relative to the City of St. Louis site       
are unknown and may be material.  The Company has notified its insurers      
that it intends to seek reimbursement from them of its costs at both         
these sites.  None of the Company's insurers have agreed that its            
insurance covers the costs for which the Company intends to seek             
reimbursement.  The majority of the insurers have sent Laclede letters       
reserving their rights with respect to the manufactured gas plant issues     
addressed in the Company's notices to them.  While some of the insurers      
have denied coverage with respect to these issues, the Company continues     
to seek reimbursement from them.  With regard to the Shrewsbury site,        
the denial of coverage will not have any material impact on the Company.     
With regard to the City of St. Louis site, since the scope or costs          
relative to this site are unknown and may be material, the denial of         
coverage may have a material impact on the Company.

In the Company's 1998 rate case, the MoPSC approved the Company's            
continued use of a cost deferral mechanism for these costs.  Through      
this, the Company may apply for appropriate rate recovery of these           
costs.  The recovery of these costs, however, may be challenged in           
future rate proceedings.

                                 Page 15<PAGE>
<PAGE>
YEAR 2000 ISSUE

Under the mainframe portion of the Company's year 2000 readiness plan, it is
upgrading, converting and replacing:
    - mainframe computer hardware
    - attendant operating system software and
    - key mainframe systems and applications.

The majority of these systems and applications have been completely
converted and upgraded as well as tested on an initial basis.  These systems
include customer records, billing and accounting systems.  Laclede's
critical conversions, upgrades and testing, on an in-house basis as well as
with third parties on an integrated basis, will be complete in July 1999.  
With regard to the few personal computer applications which may be
important, their replacements/upgrades will also be complete in July 1999.

Additionally, Laclede has conducted a company-wide program to inventory,
evaluate, remediate and test significant equipment, products, services and
supplies that it uses.  Laclede completed the inventory of these items and
services in August 1998, and the evaluation of their importance in September
1998.  Under the Company's year 2000 readiness plan, it will test and, to
the extent problems are discovered, fix those problems or replace the item. 
To date, the Company has discovered a minor number of problems which have
been addressed.  The remediation and testing of those relatively few
important items with problems will be complete in July 1999.

The Company has developed and continues to refine its contingency plans for
unforeseen critical system or equipment failures.  With regard to a
temporary loss of electrical and/or communication services, it would at most
impair Laclede's ability remotely to operate a small number of pressure
regulator stations.  Laclede will place trained employees at each of the
remotely controlled pressure regulator stations to make any adjustments
needed on a manual basis.  In addition, the Company will use an in-house
radio relay system to maintain any needed communications with its employees
in the field.  With regard to any temporary natural gas supply
interruptions, Laclede operates a large, local natural gas underground
storage facility as well as a local propane storage facility which it would
use if needed.  Any remaining refinement of critical contingency plans will
be completed in July 1999.  

The Company has directly contacted and received assurances from many of its
vendors.  This group of vendors includes the natural gas suppliers and
transporting pipelines who have assured Laclede that they will be able to
supply natural gas to us after 1999 without interruption.  We continue to
actively pursue on a case-by-case basis any necessary verification of the
vendors' ability to continue to supply the items and services to Laclede in
the year 2000.  The Company has included the natural gas suppliers and
pipelines in the group needing further verification.  Laclede plans to
complete this verification process in July 1999.  If the Company does not
believe a vendor will be able to provide a needed item or service in the
year 2000, it will use alternate vendors and develop contingency plans for
any prospective unavailability of the needed item or service.

As of March 31, 1999, the Company has incurred total costs of approximately
$14.6 million for replacements and modifications of various computer
systems.  Of this amount, Laclede capitalized $13.1 million and charged $1.5
million to expense.  The Company has used funds from internally generated
cash flows and short-term borrowings to pay these costs.  The Company
currently estimates that costs remaining to be incurred during fiscal 1999 

                                 Page 16<PAGE>
<PAGE>
will amount to approximately $4 million.  In the 1998 rate case, the
Missouri Public Service Commission authorized Laclede to capitalize the
costs incurred in connection with making its information systems ready for
year 2000 operations.  The MoPSC also authorized Laclede to defer any
interim property tax, depreciation or carrying cost expenses that it may
incur in connection with these capitalized items.  Laclede may apply for
recovery of these interim expenses in rate proceedings.


OTHER MATTERS

In September 1997, the staff of the Missouri Public Service Commission
(MoPSC) recommended that Laclede refund $3.6 million to its ratepayers in
connection with its sale of gas outside of Missouri during fiscal 1996,
prior to the approval of the incentive plan.  Laclede believes it had full
authority to enter into these transactions in part under the implementation
of the Federal Energy Regulatory Commission's Order No. 636.  Laclede filed
testimony opposing the recommendation made by the Staff of the MoPSC. 
Formal hearings were held on this issue in October 1998.  On April 20, 1999
the MoPSC issued its order rejecting the proposal of its staff.  This order
will become effective on April 30, 1999.  Any request for rehearing of the
order must be filed by April 30, 1999.

At the federal level, the Federal Energy Regulatory Commission (FERC) this
year undertook several initiatives to consider changes in the regulation of
interstate pipeline transportation service that could affect the Company's
future costs and, ultimately, the rates its customers pay.  These
initiatives include a proposed requirement that pipelines auction their
short-term capacity and that they be permitted to negotiate rates and terms
of service on an individual basis with their customers.  The Company is
monitoring these developments closely and will intervene when necessary so
that the best interests of both the Company and its customers are addressed
in changes that may eventually be approved by the FERC.

On April 6, 1999, voters in Wentzville, Missouri, in western St. Charles
County, granted Laclede, by a 3-to-1 margin, a 20 year non-exclusive
franchise to provide natural gas service to much of the city south of
Interstate 70, west of Lake St. Louis.  This is an important strategic
accomplishment that paves the way for Laclede to continue its westward
expansion throughout St. Charles County in areas where the Company
anticipates significant growth to occur during the next few years.  Missouri
Public Service Commission authority also is necessary, and the Company is
awaiting the Commission's approval for it to serve specifically this portion
of Wentzville, as well as currently unincorporated adjacent areas.  


FORWARD-LOOKING STATEMENTS

Certain statements in this 10-Q are forward-looking statements made based
upon the Company's expectations and beliefs concerning future developments
and their potential effect on Laclede.  These statements, however, do not
include  financial statements and other statements of historical fact.  The
forward-looking statements may be identified by the use of such terms as
"anticipate," "believe," "estimate,"  "expect," "intend," "plan," "seek" and
similar expressions.  Future developments may not be in accordance with the
Company's expectations or beliefs and the effect of future developments on
Laclede may not be those anticipated.  Among the factors that may cause
actual results to differ materially from those contemplated in any forward-
looking statements are:
    -  weather conditions and catastrophic events

                                 Page 17<PAGE>
<PAGE>    
    -  changes in transportation and gas supply costs or availability
    -  regulatory actions and initiatives of federal and state regulatory    
       agencies, some of which could be retroactive, including those         
       affecting:
        --  financings                        
        --  allowed rates of return           
        --  incentive regulation                                             
        --  industry and rate structure
        --  purchase gas adjustment provisions
        --  franchise renewal
        --  environmental or safety requirements
    -  the effects of any industry or corporate restructuring
    -  conservation efforts of our customers
    -  economic factors such as changes in the conditions of capital         
       markets, interest rates and rates of inflation
    -  inability to retain existing customers or to attract new customers
    -  ability to obtain funds from operations or the sale of debt or        
       equity to finance necessary capital expenditures and other            
       investments
    -  employee work force issues
    -  statutory or tax changes
    -  changes in accounting standards and
    -  the effectiveness of Year 2000 computer system remediation efforts by 
       third parties and unknown Year 2000 related problems

The Company does not, by including this statement, assume any obligation to
review or revise any particular forward-looking statement referenced herein
in light of future events.































                                 Page 18<PAGE>
<PAGE>












                                 
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES












                                Part II


                           OTHER INFORMATION





























                                 Page 19<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.  
         
         On October 30, 1998, the Missouri Public Service Commission (MoPSC) 
         issued an order opening a docket addressing the adequacy of         
         Laclede's copper service line replacement program.  Under this      
         docket, the staff must advise the MoPSC of the status of its        
         investigation by April 30, 1999.  The Company currently faces one   
         lawsuit and two claims relative to incidents where gas has          
         apparently leaked from direct buried copper service lines.  Laclede 
         is unable to predict at this time what action, if any, the MoPSC    
         may take in this docket or the outcome of this lawsuit or any of    
         these claims.  

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

         The Annual Meeting of Shareholders of Laclede Gas Company was       
         held on January 28, 1999 for the purpose of electing three          
         directors to the Board of Directors and ratifying the appointment   
         of independent auditors.  Proxies for the meeting were solicited    
         pursuant to Section 14(a) of the Exchange Act of 1934.

         All of management's nominees for directors listed in the proxy      
         statement were unopposed and were elected upon the following        
         votes:

                Name of                      Shares             
            Director Nominee                Voted For        Voted Withheld
            ----------------               ----------        --------------
            Richard E. Beumer              13,944,838            141,830
            Robert C. Jaudes               13,479,943            141,830
            Robert P. Stupp                13,902,772            141,830
            

         The proposal to ratify the appointment of Deloitte & Touche LLP,    
         Certified Public Accountants, to audit the accounts of the          
         Company for the fiscal year ending September 30, 1999 was passed    
         upon the following vote:

             Shares Voted:
             ------------
             For the proposal                13,720,556  
             Against the proposal                93,835  
             Abstain regarding the proposal     103,289

Item 5.  Other Information

         Effective April 1, 1999 Richard E. Beumer, Chairman and CEO of      
         Sverdrup Corporation, resigned from Laclede's Board of Directors.
         Recently, Sverdrup merged with Jacobs Engineering Group Inc.  Mr.   
         Beumer was elected to the additional position of Vice Chairman of   
         Jacobs, which has a board meeting schedule that directly coincides  
         and conflicts with those of Laclede Gas.

                                 Page 20<PAGE>
<PAGE>
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          
              March 31, 1999.

         Item Reported:

         On January 28, 1999 the Company issued its news release announcing  
         financial results as of December 31, 1998.  The news release was    
         attached as Exhibit 1 to the Form 8-K.

         Date of Report (Date of Earliest Event Reported):
           January 28, 1999.   











































                                 Page 21<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: April 23, 1999                                G. T. McNeive, Jr.
              
                                                  -------------------
                                                    G. T. McNeive, Jr.
                                              Sr. Vice President - Finance   
                                                  and General Counsel
                                               (Authorized Signatory and
                                               Chief Financial Officer) 





























                                 Page 22     <PAGE>
<PAGE>




                          Index to Exhibits


                                                                             
                                                                             
                                                               Sequentially
Exhibit                                                          Numbered
Number            Exhibit                                          Page
-------           -------                                      ------------  
                                  
    
10.1          Line of Credit Agreement dated January 22, 1999 
              with Mercantile Bank.                                 24
                        
10.2          Line of Credit Agreement dated January 15, 1999
              with Commerce Bank.                                   26

10.3          Line of Credit Agreement dated January 31, 1999
              with NationsBank, N.A.                                28

27            Financial Data Schedule UT                            30 






















                                 











                                 Page 23