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, 1997   
                                                                             
                                     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.                  
          
     17,557,540 shares, Common Stock, par value $1 per share at 7/31/97.
      







                                       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, 1996.




























                                 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, 
                                      1997      1996      1997       1996  
                                      ----      ----      ----       ---- 
<S>                                 <C>       <C>       <C>       <C>
Utility Operating Revenues          $84,191   $86,022   $542,087  $499,240
                                    -----------------   ------------------ 
Utility Operating Expenses:
  Natural and propane gas            38,016    43,241    330,398   293,762
  Other operation expenses           21,217    20,301     65,464    63,502
  Maintenance                         4,607     4,366     13,632    13,799   
  Depreciation and amortization       6,426     6,223     19,375    18,434   
  Taxes, other than income taxes      8,956     9,620     39,667    37,515
  Income taxes (Note 3)                 244      (823)    22,101    22,227   
                                    -----------------   ------------------
  Total Utility Operating Expenses   79,466    82,928    490,637   449,239   
                                    -----------------   ------------------
Utility Operating Income              4,725     3,094     51,450    50,001 
Miscellaneous Income and Income
  Deductions - Net (less 
  applicable income taxes) (Note 3)     602       621      1,458     2,996   
                                    -----------------   ------------------
Income Before Interest Charges        5,327     3,715     52,908    52,997   
                                    -----------------   ------------------
Interest Charges:
  Interest on long-term debt          3,543     3,542     10,627    10,396   
  Other interest charges                972       572      3,857     3,221   
                                    -----------------   ------------------
    Total Interest Charges            4,515     4,114     14,484    13,617   
                                    -----------------   ------------------
Net Income (Loss)                       812      (399)    38,424    39,380 
Dividends on Preferred Stock             24        24         73        73   
                                    -----------------   ------------------
Earnings Applicable to Common Stock $   788   $  (423)  $ 38,351  $ 39,307   
                                    ==================  ================== 
Average Number of Common 
  Shares Outstanding                 17,558    17,558     17,558    17,512 

Earnings Per Share of Common Stock    $ .04     $(.02)     $2.18     $2.24 

Dividends Declared Per Share
  of Common Stock                     $.325     $.315      $.975     $.945   

<FN>
             See notes to consolidated financial statements.






</TABLE>
                                  Page 3<PAGE>
<PAGE>
<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                       CONSOLIDATED BALANCE SHEET
<CAPTION>                                 
                                                       June 30     Sept. 30
                                                         1997        1996
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                           (UNAUDITED)
                                  ASSETS
<S>                                                    <C>         <C>       
Utility Plant                                          $782,845    $780,001
   Less:  Accumulated depreciation and amortization     320,494     327,836
                                                       --------------------
   Net Utility Plant                                    462,351     452,165
                                                       --------------------
Other Property and Investments                           25,647      24,265
                                                       --------------------
Current Assets:
   Cash and cash equivalents                              4,778       4,360
   Accounts receivable - net                             56,667      45,578
   Materials, supplies, and merchandise at avg cost       5,408       5,634
   Natural gas stored underground for current use 
      at LIFO cost                                       24,006      58,769
   Propane gas for current use at FIFO cost              12,463      12,655  
   Prepayments                                            2,604       1,910
   Deferred income taxes                                  8,010       4,477
   Delayed customer billings                              8,464           -
                                                       --------------------
      Total Current Assets                              122,400     133,383
                                                       --------------------
Deferred Charges                                         97,373      79,582
                                                       --------------------
Total Assets                                           $707,771    $689,395
                                                       ====================

                 
<FN>
             See notes to consolidated financial statements.











                                      







</TABLE>
                                 Page 4 <PAGE>
<PAGE>
<TABLE>
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES
                 CONSOLIDATED BALANCE SHEET (Continued)
<CAPTION>
                                                       June 30     Sept. 30
                                                         1997        1996
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                           (UNAUDITED)
                    CAPITALIZATION AND LIABILITIES
<S>                                                   <C>         <C>
Capitalization:
   Common stock (19,423,178 shares issued)            $ 19,423    $ 19,423
   Paid-in capital                                      61,205      61,205   
   Retained earnings                                   205,464     184,232
   Treasury stock, at cost (1,865,638 shares held)     (24,017)    (24,017)  
                                                      -------------------- 
      Total common stock equity                        262,075     240,843
   Redeemable preferred stock                            1,960       1,960 
   Long-term debt (less sinking fund requirements)     179,397     179,346
                                                      --------------------   
         Total Capitalization                          443,432     422,149   
                                                      --------------------  
Current Liabilities:
   Notes payable                                        34,500      59,600   
   Accounts payable                                     29,280      20,637
   Refunds due customers                                   250       1,248
   Advance customer billings                                 -       6,231   
   Taxes accrued                                        18,906      10,212
   Unamortized purchased gas adjustments                 6,027      26,744   
   Other                                                18,837      21,776 
                                                      --------------------   
     Total Current Liabilities                         107,800     146,448
                                                      --------------------  
Deferred Credits and Other Liabilities:
   Deferred income taxes                                92,463      78,149   
   Unamortized investment tax credits                    7,367       7,669   
   Other                                                56,709      34,980
                                                      --------------------
      Total Deferred Credits and Other Liabilities     156,539     120,798
                                                      --------------------
Total Capitalization and Liabilities                  $707,771    $689,395
                                                      ====================   
 

<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>
                                                         Nine Months Ended   
                                                             June 30,
                                                         1997        1996
                                                         ----        ----
                                                     (Thousands of Dollars)
<S>                                                   <C>         <C>    
Operating Activities:      
 Net Income                                           $ 38,424    $ 39,380
 Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization                       19,405      18,475   
    Deferred income taxes and investment tax credits     3,065     (12,748)  
    Other - net                                           (116)         55
    Changes in assets and liabilities:
       Accounts receivable - net                       (11,089)    (13,271)
       Unamortized purchased gas adjustments           (20,717)      9,557   
       Deferred purchased gas costs                     21,015      33,149
       Delayed customer billings - net                 (14,695)    (26,671)
       Accounts payable                                  8,643       3,622
       Refunds due customers                              (998)     (2,763)  
       Taxes accrued                                     8,694      13,595   
       Natural gas stored underground                   34,763      18,433
       Other assets and liabilities                    (13,889)     (8,322)  
                                                      --------------------
         Net cash provided by operating activities    $ 72,505    $ 72,491
                                                      --------------------
Investing Activities:                                                      
 Construction expenditures                             (31,491)    (32,231)
 Investments - non-utility                              (1,708)        104   
 Employee benefit trusts                                   478           -
 Other                                                   2,750        (462)
                                                      --------------------
         Net cash used in investing activities        $(29,971)   $(32,589)  
                                                      --------------------
Financing Activities:
  Repayment of short-term debt                         (25,100)    (47,500)  
  Issuance of common stock                                   -       2,972   
  Dividends paid                                       (17,016)    (16,491)  
  Issuance of first mortgage bonds                           -      25,000   
  Other                                                      -        (201)
                                                      --------------------
         Net cash used in financing activities        $(42,116)  $ (36,220)  
                                                     ---------------------
Net Increase in Cash and Cash Equivalents             $    418   $   3,682
Cash and Cash Equivalents at Beginning of Period         4,360       1,555
                                                      -------------------- 
Cash and Cash Equivalents at End of Period            $  4,778    $  5,237   
                                                      ====================
Supplemental Disclosure of Cash Paid
 During the Period for:
  Interest                                             $17,115     $15,669   
  Income taxes                                           9,249      19,399

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

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

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

3.  Net provisions for income taxes were charged (credited) as follows       
    during the periods set forth below:

<TABLE>
<CAPTION>
                                Three Months Ended     Nine Months Ended     
                                     June 30,              June 30,
                                ------------------     ----------------- 
                                1997         1996      1997        1996 
                                ----         ----      ----        ----
                                           (Thousands of Dollars)
<S>                             <C>       <C>         <C>       <C>
Utility Operations
       Current:   
          Federal               $(5,730)  $  (880)    $16,276   $29,763     
          State and local          (974)     (159)      2,742     4,992   

       Deferred:
          Federal                 5,875       136       2,445   (10,834)  
          State and local         1,073        80         638    (1,694)     
                                -----------------     -----------------
       Subtotal                 $   244   $  (823)    $22,101   $22,227      
                                -----------------     -----------------
         
    Miscellaneous Income and
       Income Deductions
       Current:
          Federal               $    57   $  (207)    $   279   $   503      
          State and local            40       (17)         60        74

       Deferred:
          Federal                   (50)     (122)        (16)     (191) 
          State and local            (7)      (18)         (2)      (29)
                                -----------------     -----------------
       Subtotal                 $    40  $   (364)    $   321   $   357  
                                -----------------     ----------------- 
                  Total         $   284  $ (1,187)    $22,422   $22,584   
                                =================     =================








</TABLE>
                                 Page 7<PAGE>
<PAGE>
4.  The Company's Gas Supply Incentive Plan, which became effective October  
    1, 1996 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 1997           June 1997
                                    ------------------   -----------------
                                            (Thousands of Dollars)
    <S>                                  <C>                  <C>
    Incentive Plan Revenues              $6,916               $27,920 
    Incentive Plan Gas Expense            5,229                22,634
                                         ------               -------
    Income Before Income Taxes           $1,687               $ 5,286
                                         ======               ======= 
</TABLE>

5.  In the past, the Company operated various manufactured gas plants which  
    produced certain by-products and residuals.  After performing, at the    
    request of the United States Environmental Protection Agency (EPA), an   
    investigation of one of the Company's former manufactured gas plant      
    sites located in Shrewsbury, Missouri (the Shrewsbury Site) and          
    reviewing the results of this investigation, the Company agreed to       
    perform a limited removal of some contaminants on small areas of the     
    site.  As previously reported by the Company, the Company has been     
    discussing with the EPA and the Missouri Department of Natural Resources 
    (MoDNR) what additional actions are required for the site.  At this      
    time, given the lack of final agreement as to what additional actions    
    should be taken, the ultimate costs to be incurred regarding the         
    Shrewsbury Site remain unclear.  Assuming the Company performs the       
    limited removal actions agreed to with the EPA and those of the          
    additional actions proposed by the EPA and MoDNR to which the Company    
    has no objection, the Company estimates that the overall costs will be   
    approximately $740,000.  Currently, $540,000 of such overall costs have  
    been paid, and an additional $200,000 has been reserved by the           
    Company.  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.
 











                                 Page 8    <PAGE>
<PAGE>
    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     
    environmental remediation program.  MoDNR's preliminary tests at the     
    site reflect the presence of coke and gas plant manufacturing wastes, as 
    well as certain heavy metal wastes.  The Company and MoDNR have agreed   
    upon the parameters of the Company's initial investigation.  The Company 
    currently estimates that the cost of such investigation, MoDNR oversight 
    costs and associated legal and engineering consulting costs relative to  
    the site would together approximate $75,000.  Currently, $36,000 has     
    been paid and an additional $39,000 has been reserved on the Company's   
    books.  The City of St. Louis, the current owner of the site, has        
    recently received proposals from several different groups to develop     
    this site, and is in the process of evaluating such proposals.  Various  
    portions of the development proposals deal with the issue of the         
    environmental condition of the site, and the impact of such condition on 
    possible development plans.  Until a development proposal is selected,   
    the Company is unable to determine the impact, if any, that any proposed 
    development will have on actions to be taken regarding the site, and the 
    cost of any such actions.  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.

    In the Company's most recent rate case, 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.  This authorization will be null and void if    
    the Company does not file to further adjust its rates by September 1,    
    1998; and, in any event, the recovery of costs thus deferred may be      
    challenged in future rate proceedings.

6.  Certain prior-period amounts have been reclassified to conform to        
    current-period presentation.

7.  This Form 10-Q should be read in conjunction with the Notes to           
    Consolidated Financial Statements contained in the Company's 1996 Form   
    10-K.










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

RESULTS OF OPERATIONS

For the quarter ended June 30, 1997, the Company recorded a positive
earnings level of $.04 per share compared with a loss of $.02 per share for
the same quarter last year.  The $.06 per share increase was directly
attributable to earnings produced by the Gas Supply Incentive Plan, which
became effective October 1, 1996, and includes the sale of gas and pipeline
capacity to non-traditional markets.  The benefit of higher general rate
levels (placed in effect September 1, 1996) was essentially offset by higher
operating expenses.

Utility operating revenues for the quarter ended June 30, 1997 were $84.2
million compared with $86.0 million for the quarter ended June 30, 1996. 
The $1.8 million, or 2.1%, decrease was principally due to lower wholesale
gas costs (which are passed on to Laclede's customers under the Company's
Purchased Gas Adjustment Clause), largely offset by revenues related to the
aforementioned Incentive Plan and higher general rate levels (placed in
effect September 1, 1996).  System therms sold and transported decreased by
4.3 million therms, or 2.6%, below the quarter ended June 30, 1996.

Utility operating expenses for the quarter ended June 30, 1997 decreased by
$3.5 million, or 4.2%, below the same quarter last year.  Natural and
propane gas expense this quarter decreased $5.2 million, or 12.1%, below
last year mainly due to decreased rates charged by the Company's suppliers
and slightly lower volumes purchased for sendout, partially offset by gas
expense related to the aforementioned Incentive Plan.  Other operation and
maintenance expenses increased $1.2 million, or 4.7%, principally due to
lower gains applicable to lump-sum pension settlements, higher wage rates,
increased distribution charges and other increases in the cost of doing
business.  These factors were partially offset by lower net pension costs. 
Depreciation and amortization expense increased 3.3% primarily due to
additional property.  Taxes, other than income taxes, decreased 6.9% mainly
due to lower gross receipts taxes (reflecting decreased revenues), partially
offset by higher real estate and personal property taxes this quarter.  The
$1.1 million increase in income taxes is principally due to higher taxable
income.   

Miscellaneous income and income deductions was essentially the same as the
corresponding period last year.  In May 1997, Laclede completed the sale of
certain oil and gas properties for $3.3 million, resulting in the
recognition of a modest gain on such sale.  Most of the properties sold were
assets which had originally been acquired during the 1970s to provide a
source of gas for the Company during an era of gas shortages and
curtailments.  Laclede has not been active in oil and gas exploration and
development for a number of years.  The benefit of the gain was mostly
offset by reduced subsidiary income.  The 9.7% increase in interest expense
is mainly due to increased short-term interest expense reflecting higher
borrowings.



                               




                                 Page 10<PAGE>
<PAGE>
Earnings for the nine months ended June 30, 1997 were $2.18 per share
compared with $2.24 per share for the corresponding period last year.  The
$.06 per share decrease in earnings was primarily due to lower consumption
by the Company's heating customers in response to sharply higher gas prices
which were in effect for the first part of the winter, the effect of income
from off system sales recorded during the same period last year and
increased operating expenses.  These decreases were only partially offset by
the benefits of the Incentive Plan and last year's rate settlement (which
resulted in higher general rate levels effective September 1, 1996).  The
Incentive Plan, which became effective October 1, 1996 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, Laclede and its customers share in certain gains and losses,
as measured against benchmark levels of gas costs, 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.  Such activity has been
significant.  For instance, gas purchases made for sales outside of the
Company's service territory during March 1997 exceeded the amount of gas
purchases made by the Company for consumption in its own service territory. 
To date, the Company has achieved overall gas cost savings of about $24.2
million, resulting in savings to Laclede's customers of $18.9 million and
contributing about $5.3 million pre-tax income to the Company.  

Utility operating revenues for the first nine months of fiscal year 1997
increased $42.8 million, or 8.6%, above the corresponding period of fiscal
year 1996.  This increase was primarily due to higher wholesale gas costs
(which are passed on to Laclede's customers under the Company's Purchased
Gas Adjustment Clause), Incentive Plan revenues and the September 1, 1996
general rate increase.  These increases were partially offset by lower gas
sales volumes (arising mainly from lower customer consumption patterns). 
System therms sold and transported decreased by 54.2 million therms, or
5.2%, below the level experienced during the nine months ended June 30,
1996.

Utility operating expenses for the nine months ended June 30, 1997 increased
by $41.4 million, or 9.2%, above last year.  Natural and propane gas expense
during the first nine months of fiscal year 1997 increased $36.6 million, or
12.5%, above last year mainly due to higher rates charged by our suppliers
and gas expense associated with the aforementioned Incentive Plan.  These
increases were partially offset by reduced volumes purchased for sendout
(resulting from lower customer consumption patterns).  Other operation and
maintenance expenses increased $1.8 million, or 2.3%, principally due to
lower gains applicable to lump-sum pension settlements, higher wage rates
and other increases in the costs of doing business.  These increases were
partially offset by lower net pension costs, a lower provision for
uncollectible accounts and reduced maintenance charges.  Depreciation and
amortization expense increased 5.1% primarily due to additional property. 
Taxes, other than income taxes, increased 5.7% principally due to higher
real estate and personal property taxes and higher gross receipts taxes
(mainly reflecting increased revenues).      




                    

                                 

                                 Page 11<PAGE>
<PAGE>
Miscellaneous income and income deductions for the first nine months of
fiscal 1997 decreased $1.5 million below the same period last year primarily
due to reduced subsidiary income (mainly lower non-utility gas marketing
income recognized by the Company's wholly-owned subsidiary, Laclede Energy
Resources, Inc.).  The 6.4% increase in interest expense is mainly due to
higher short-term interest expense reflecting increased borrowings and
higher interest on long-term debt resulting from the issuance of $25 million
of 6-1/2% First Mortgage Bonds in November 1995. 

On June 25, 1997, the Company and Union representatives reached a new three-
year labor agreement replacing the prior agreement which was to expire July
31, 1997.  The new contract extends through July 31, 2000.  The settlement
resulted in wage increases of 2.5% in all three years, along with lump sum
payment provisions and other benefit improvements.


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 1997, the Company renewed its primary lines of bank
credit under which it may borrow up to $40 million prior to January 31,
1998, with renewal of any loans outstanding on that date permitted to 
June 30, 1998.  This, along with a previously obtained $90 million
supplemental line of credit which ran through March 1, 1997, provided a
total line of credit of $130 million for the 1996-1997 heating season. 
Since seasonal cash needs typically decline at the end of the heating
season, the Company reduced the supplemental line of credit to $40 million
from March 1, 1997 through April 1, 1997 (the supplemental line was
increased to $45 million for March 1, 1997 through March 3, 1997).  The
Company further reduced the supplemental line of credit to $25 million from
April 2, 1997 through April 14, 1997 and to $15 million from April 15, 1997
through July 31, 1997.  Such line was increased to $25 million on August 1,
1997 and extends through August 31, 1997.  Our basic credit line of $40
million along with a supplemental credit line of $25 million will be
sufficient to meet the Company's cash needs through the period ended August
31, 1997.  During fiscal 1997 to date, the Company sold commercial paper
aggregating to a maximum of $104.0 million at any one time, but did not
borrow from the banks under the aforementioned agreements.  Short-term
borrowings amounted to $34.5 million at June 30, 1997.

The Missouri Public Service Commission approved the Company's application
seeking a two year extension, to April 21, 1999, of its previously granted
authority to sell up to $50 million of additional First Mortgage Bonds.  The
original authorization was for $100 million of First Mortgage Bonds of which
$50 million have already been issued and sold.  The amount and timing of any
issuance will be subject to management's evaluation of need, financial
market conditions, and other factors.








                              Page 12<PAGE>
<PAGE>
In the past, the Company operated various manufactured gas plants which
produced certain by-products and residuals.  After performing, at the
request of the United States Environmental Protection Agency (EPA), an
investigation of one of the Company's former manufactured gas plant sites
located in Shrewsbury, Missouri (the Shrewsbury Site) and reviewing the
results of this investigation, the Company agreed to perform a limited
removal of some contaminants on small areas of the site.  As previously
reported by the Company, the Company has been discussing with the EPA and
the Missouri Department of Natural Resources (MoDNR) what additional actions
are required for the site.  See the "OTHER PERTINENT MATTERS" Section of the
Company's most recent Form 10-K.  At this time, given the lack of final
agreement as to what additional actions should be taken, the ultimate costs
to be incurred regarding the Shrewsbury Site remain unclear.  Assuming the
Company performs the limited removal actions agreed to with the EPA and
those of the additional actions proposed by the EPA and MoDNR to which the
Company has no objection, the Company estimates that the overall costs will
be approximately $740,000.  Currently, $540,000 of such overall costs have
been paid, and an additional $200,000 has been reserved by the Company.  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  environmental
remediation program.  MoDNR's preliminary tests at the site reflect the
presence of coke and gas plant manufacturing wastes, as well as certain
heavy metal wastes.  The Company and MoDNR have agreed upon the parameters
of the Company's initial investigation.  The Company currently estimates
that the cost of such investigation, MoDNR oversight costs and associated 
legal and engineering consulting costs relative to the site would together
approximate $75,000.  Currently, $36,000 has been paid and an additional
$39,000 has been reserved on the Company's books. 

The City of St. Louis, the current owner of the site, has recently received
proposals from several different groups to develop this site, and is in the
process of evaluating such proposals.  Various portions of the development
proposals deal with the issue of the environmental condition of the site,
and the impact of such condition on possible development plans.  Until a
development proposal is selected, the Company is unable to determine the
impact, if any, that any proposed development will have on actions to be
taken regarding the site, and the cost of any such actions.  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.




                              Page 13<PAGE>
<PAGE>
In the Company's most recent rate case, the Missouri Public Service
Commission (MoPSC) 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.  This authorization will be null and void if the
Company does not file to further adjust its rates by September 1, 1998; and,
in any event, the recovery of costs thus deferred may be challenged in
future rate proceedings.

The Company's Purchased Gas Adjustment (PGA) Clause provides for changes in
the prices of wholesale gas costs to be passed on to the Company's
customers.  Under new procedures approved by the Missouri Public Service
Commission (MoPSC) in July 1997, the Company will make only two scheduled
PGA filings each year, one for the winter period and one for the summer.  In
addition, the Company may make one unscheduled adjustment during the winter
if significant, unforeseen increases or decreases in gas costs occur.  The
new procedures also authorize the Company to purchase financial instruments
that should protect the Company and its customers from any unusually large
winter period gas price increases.  The cost of purchasing these instruments
will be recoverable by the Company through the operation of the PGA Clause. 
These new procedures will provide better gas price stability for the
Company's customers.

Construction expenditures for the nine months ended June 30, 1997 were
$31.5 million compared with $32.2 million for the same period last year.

Capitalization at June 30, 1997 increased $21.3 million since September 
30, 1996 and consisted of 59.1% common stock equity, .4% preferred stock 
equity and 40.5% 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
         
         For a discussion of environmental matters, see Note 5 of the Notes  
         to Consolidated Financial Statements in Part I, Financial           
         Information.  
         
         During the quarter ended June 30, 1997, there were no new legal     
         proceedings required to be disclosed.  

Item 5.  Other Information

         On May 22, 1997 the Board of Directors of Laclede Gas Company       
         selected ChaseMellon Shareholder Services, L.L.C. ("CMSS") to       
         serve, effective August 1, 1997, as transfer agent, as well as in   
         various other capacities including rights agent, with regard to     
         shareholders' stock interests in the Company.  CMSS will succeed    
         Boatmen's Trust Company ("Boatmen's") in these capacities.  This    
         change was necessitated by the fact that Boatmen's will no longer   
         be providing these types of services.

         On July 24, 1997, the Company's Board of Directors amended the      
         Company's By-laws, effective at the close of business on July 24,   
         1997, by adding to Article III thereof a new Section 8, relating to 
         the nomination by shareholders of persons to stand for election as  
         directors, and a new Section 9, relating to proposals by            
         shareholders.  Under these By-law provisions, notice of shareholder 
         proposals or nominations for annual meetings must, among other      
         things, normally be submitted in writing to the Corporate Secretary 
         not less than sixty (60) nor more than ninety (90) days prior to    
         the anniversary date of the prior year's annual meeting of          
         shareholders, and must contain certain specified items of pertinent 
         information.  The amendments are included as Exhibit 3 to this      
         Report and are incorporated herein by reference.  The foregoing     
         description of the By-Law amendments is qualified in its entirety   
         by reference to said Exhibit 3.

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, 1997.













                                 Page 16<PAGE>
<PAGE>        



              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES


                               SIGNATURES 


  

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





                                                  LACLEDE GAS COMPANY


Date:  July 31, 1997                                
                                                 /s/ G. T. McNeive, Jr. 
                                                ------------------------
                                                   G. T. McNeive, Jr.
                                              Sr. Vice President - Finance   
                                              (Authorized Signatory and
                                               Chief Financial Officer) 






























                                 Page 17     <PAGE>
<PAGE>



                          Index to Exhibits


                                                                             
                                                                             
                                                               Sequentially
Exhibit                                                          Numbered
Number            Exhibit                                          Page
-------           -------                                      ------------  
                                  
    
  3.0         Amendments to the Company's By-Laws, effective        19
              at the close of business on July 24, 1997,  
              adopted by the Company's Board of Directors on                 
              July 24, 1997.
                          
  4.1         Amendments to the Laclede Gas Company Salary          22
              Deferral Savings Plan adopted April 21, 1997. 

  4.2         Amendments to the Laclede Gas Company Wage            27
              Deferral Savings Plan adopted April 21, 1997.                  
                       
  4.3         Amendments to the Missouri Natural Gas Division       31
              of Laclede Gas Company Dual Savings Plan adopted
              April 21, 1997. 

  10.1        April 1, 1997 supplemental line of credit             36
              agreement with The Chase Manhattan Bank.

  10.2        April 15, 1997 supplemental line of credit            38       
              agreement with the Chase Manhattan Bank.                       
 
  10.3        April 30, 1997 supplemental line of credit            40
              agreement with The Chase Manhattan Bank.

  10.4        July 1, 1997 supplemental line of credit agreement    42       
              with the Chase Manhattan Bank.                         

  27          Financial Data Schedule UT                            44















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