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, 1998 
                                                                             
                                     OR

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

For the Transition Period from  ________ to ________

Commission File Number 1-1822


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

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


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

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

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

     Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.                  
          
17,611,142 shares, Common Stock, par value $1 per share at 5/1/98.
      







                                        
                                 Page 1<PAGE>
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               LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES 











                                  PART I

                          FINANCIAL INFORMATION

    




The interim financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission.  These financial statements should be
read in conjunction with the financial statements and the notes thereto
included in the Company's Form 10-K for the year ended September 30, 1997.




























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

(In Thousands, Except Per Share Amounts)                         
<CAPTION>
                                    Three Months Ended    Six Months Ended
                                         March 31,            March 31, 
                                      1998       1997      1998       1997  
                                      ----       ----      ----       ---- 
<S>                                 <C>        <C>       <C>        <C>
Utility Operating Revenues          $213,826   $264,031  $413,493   $457,896
                                    -------------------  -------------------
Utility Operating Expenses:
  Natural and propane gas            130,081    172,134   256,390    292,382
  Other operation expenses            23,101     22,958    45,760     44,247
  Maintenance                          4,513      4,518     9,455      9,025 
  Depreciation and amortization        6,666      6,480    13,267     12,949 
  Taxes, other than income taxes      15,765     19,295    28,507     30,711
  Income taxes (Note 3)               10,425     12,464    18,578     21,857 
                                    -------------------  ------------------- 
Total Utility Operating Expenses     190,551    237,849   371,957    411,171 
                                    -------------------  -------------------
Utility Operating Income              23,275     26,182    41,536     46,725 
Miscellaneous Income and Income
  Deductions - Net (less 
  applicable income taxes) (Note 3)      722        325     1,589        856 
                                    -------------------  -------------------
Income Before Interest Charges        23,997     26,507    43,125     47,581 
                                    -------------------  -------------------
Interest Charges:
  Interest on long-term debt           3,949      3,542     7,802      7,084 
   Other interest charges              1,678      1,459     3,320      2,885 
                                    -------------------  -------------------
    Total Interest Charges             5,627      5,001    11,122      9,969 
                                    -------------------  -------------------
Net Income                            18,370     21,506    32,003     37,612 
Dividends on Preferred Stock              25         25        49         49 
                                    -------------------  -------------------
Earnings Applicable to Common Stock $ 18,345   $ 21,481  $ 31,954   $ 37,563 
                                    ===================  =================== 
Average Number of Common 
  Shares Outstanding                  17,594     17,558    17,575     17,558

Earnings Per Share of Common Stock     $1.04      $1.22     $1.82      $2.14

Dividends Declared Per Share
  of Common Stock                       $.33      $.325      $.66       $.65 

<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
                                                         1998        1997
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                     (UNAUDITED)
                                  ASSETS
<S>                                                    <C>         <C>      
Utility Plant                                          $812,685    $792,661
   Less:  Accumulated depreciation and amortization     335,864     325,088
                                                       --------------------
   Net Utility Plant                                    476,821     467,573
                                                       --------------------
Other Property and Investments                           30,562      29,724
                                                       --------------------
Current Assets:
   Cash and cash equivalents                              5,928       4,508
   Accounts receivable - net                             87,696      47,932
   Materials, supplies, and merchandise at avg cost       5,441       5,216
   Natural gas stored underground for current use 
      at LIFO cost                                       21,343      56,867
   Propane gas for current use at FIFO cost              12,840      12,917  
   Prepayments                                            2,871       1,986
   Deferred income taxes                                  9,606       9,881
   Delayed customer billings                             23,630           -
                                                       --------------------
      Total Current Assets                              169,355     139,307
                                                       --------------------
Deferred Charges                                         87,955      84,106
                                                       --------------------
Total Assets                                           $764,693    $720,710
                                                       ====================

                 
<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
                                                         1998        1997
                                                         ----        ----
                                                     (Thousands of Dollars)  
                                                     (UNAUDITED)
                    CAPITALIZATION AND LIABILITIES
<S>                                                   <C>         <C>
Capitalization:
   Common stock (19,459,396 shares issued)            $ 19,459    $ 19,423
   Paid-in capital                                      62,147      61,205   
   Retained earnings                                   214,129     193,776
   Treasury stock, at cost (1,865,638 shares held)     (24,017)    (24,017)  
                                                      -------------------- 
      Total common stock equity                        271,718     250,387
   Redeemable preferred stock                            1,960       1,960 
   Long-term debt (less sinking fund requirements)     179,128     154,413
                                                      --------------------   
         Total Capitalization                          452,806     406,760   
                                                      --------------------  
Current Liabilities:
   Notes payable                                        34,500      74,000   
   Accounts payable                                     37,981      29,628
   Refunds due customers                                 8,940         731   
   Advance customer billings                                 -      12,700   
   Current portion of long-term debt                    25,000      25,000 
   Taxes accrued                                        23,542       6,848
   Unamortized purchased gas adjustments                 5,863      13,022   
   Other                                                24,180      22,509 
                                                      --------------------   
     Total Current Liabilities                         160,006     184,438
                                                      --------------------  
Deferred Credits and Other Liabilities:
   Deferred income taxes                                74,525      85,013   
   Unamortized investment tax credits                    7,106       7,280   
   Other                                                70,250      37,219
                                                      --------------------
      Total Deferred Credits and Other Liabilities     151,881     129,512
                                                      --------------------
Total Capitalization and Liabilities                  $764,693    $720,710
                                                      ====================   
 

<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,
                                                         1998        1997
                                                         ----        ----
                                                     (Thousands of Dollars)
<S>                                                   <C>         <C>
Operating Activities:      
 Net Income                                           $ 32,003    $ 37,612
 Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization                       13,316      12,970   
    Deferred income taxes and investment tax credits    (5,603)     (3,826)  
    Other - net                                           (646)         87
    Changes in assets and liabilities:
       Accounts receivable - net                       (39,764)    (50,252)
       Unamortized purchased gas adjustments            (7,159)    (17,071)  
       Deferred purchased gas costs                     30,883      31,527
       Delayed customer billings - net                 (36,330)    (36,166)
       Accounts payable                                  8,353      11,086
       Refunds due customers                             8,209        (930)  
       Taxes accrued                                    16,694      14,574   
       Natural gas stored underground                   35,524      41,455
       Other assets and liabilities                     (6,069)     (3,449)  
                                                      --------------------
         Net cash provided by operating activities    $ 49,411    $ 37,617
                                                      --------------------
Investing Activities:                                                      
 Construction expenditures                             (22,054)    (19,432)
 Investments - non-utility                              (1,011)     (1,427)  
 Employee benefit trusts                                   267         171
 Other                                                    (122)       (111)
                                                      --------------------
         Net cash used in investing activities        $(22,920)   $(20,799)  
                                                      --------------------
Financing Activities:
  Repayment of short-term debt                         (39,500)     (3,600)  
  Issuance of common stock                                 978           -   
  Dividends paid                                       (11,549)    (11,285)  
  Issuance of first mortgage bonds                      25,000           -   
                                                      --------------------
         Net cash used in financing activities        $(25,071)  $ (14,885)  
                                                     ---------------------
Net Increase in Cash and Cash Equivalents             $  1,420   $   1,933
Cash and Cash Equivalents at Beginning of Period         4,508       4,360
                                                      -------------------- 
Cash and Cash Equivalents at End of Period            $  5,928    $  6,293   
                                                      ====================
Supplemental Disclosure of Cash Paid
 During the Period for:
  Interest                                             $ 9,572     $ 9,250   
  Income taxes                                           4,435       8,285
<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      Six Months Ended     
                                    March 31,             March 31,
                                ------------------     ----------------- 
                                1998         1997      1998        1997 
                                ----         ----      ----        ----
                                           (Thousands of Dollars)
    <S>                         <C>       <C>         <C>       <C>     
    Utility Operations
       Current:   
          Federal               $14,146   $15,589     $20,666   $22,006  
          State and local         2,475     2,635       3,574     3,716   

       Deferred:
          Federal                (5,348)   (4,991)     (4,948)   (3,430)  
          State and local          (848)     (769)       (714)     (435)     
                                -----------------     -----------------
       Subtotal                 $10,425   $12,464     $18,578   $21,857      
                                -----------------     -----------------
         
    Miscellaneous Income and
       Income Deductions
       Current:
          Federal               $   305   $   164     $   405   $   222      
          State and local            42        17          58        20

       Deferred:
          Federal                    33        20          51        33  
          State and local             5         3           8         6 
                                -----------------     -----------------
       Subtotal                 $   385   $   204     $   522   $   281  
                                -----------------     ----------------- 
                  Total         $10,810   $12,668     $19,100   $22,138   
                                =================     =================


 






</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     Six Months Ended
                                      March 31,             March 31, 
                                -------------------    -------------------
                                  1998       1997        1998       1997
                                  ----       ----        ----       ----
                                          (Thousands of Dollars)
    <S>                         <C>        <C>         <C>        <C>
    Incentive Plan Revenues     $11,094    $12,469     $17,627    $21,004
    Incentive Plan Gas Expense    9,796     10,493      14,238     17,405
                                -------    -------     -------    -------
    Income Before Income Taxes  $ 1,298    $ 1,976     $ 3,389    $ 3,599
                                =======    =======     =======    =======
</TABLE>
5.  As part of its annual review of the Company's gas costs, the Staff of    
    the Missouri Public Service Commission (MoPSC) has recommended an        
    adjustment which, if approved by the MoPSC and upheld by the courts,     
    would require the Company to refund to its customers approximately $3.6  
    million of gains realized by the Company from various sales made outside 
    of Missouri between November 1995 and March 1996.  The Company will      
    continue to vigorously oppose the Staff's recommended adjustment before  
    the MoPSC on the grounds that such adjustment violates Missouri law, is  
    impermissible under the Company's MoPSC-approved tariffs, and is         
    otherwise unlawful and unreasonable.  The Company believes that the      
    outcome of this matter is unlikely to have a material adverse impact on  
    the Company. 

6.  The Company is subject to various laws and regulations relating to the   
    environment, which thus far have not had a material effect on the 
    Company's financial position and results of operations.
    
    In the past, the Company operated various manufactured gas plants which  
    produced certain by-products and residuals.  At the request of the       
    United States Environmental Protection Agency (EPA), Laclede performed   
    an investigation of one of the Company's former manufactured gas plant   
    sites located in Shrewsbury, Missouri (the Shrewsbury Site).  As         
    previously reported by the Company, the Company has had lengthy          
    discussions with the EPA and the Missouri Department of Natural          
    Resources (MoDNR) on the question of what additional actions are         
    required for the site.  On October 17, 1997, the Company submitted to    
    the EPA an Engineering Evaluation/Cost Analysis (EE/CA), together with   
    an accompanying letter (collectively the "Submitted EE/CA Documents"),   
    in which the Company proposed to maintain various institutional controls 
    at this site, to stabilize the bank of a drainageway located at the edge 
    of the site, and to perform a limited removal of some contaminants       
    located in certain small areas of the site.  The EPA and the MoDNR have  
    proposed changes to the Submitted EE/CA Documents, to which Laclede has  
    responded.  At this time, given the lack of final agreement as to what   
    additional actions should be taken, the ultimate costs to be             
    incurred regarding the Shrewsbury Site remain unclear.  Assuming the     
    Company performs the limited actions described in the Submitted EE/CA    
    
                                 Page 8<PAGE>
<PAGE>
    Documents and the actions included in the Company's response to the     
    EPA's and MoDNR's proposed changes to the submitted EE/CA Documents, the 
    Company estimates that the overall costs will be approximately $778,000. 
    As of March 31, 1998, $541,000 of such overall costs had been paid,      
    and an additional $237,000 was reserved by the Company.  If the Company  
    is required to take any additional actions with regard to the site, the  
    Company may have to incur additional costs, the extent of which cannot   
    practicably be estimated currently.  The Company has notified its        
    insurers that it intends to seek reimbursement from them of its          
    investigation, remediation, clean-up and defense costs.  The Company     
    intends to seek recovery, if practicable, from any other potentially     
    responsible parties.
    
    In a separate matter, MoDNR has accepted the Company's application to    
    place the site of a different former manufactured gas plant located in   
    the City of St. Louis, Missouri (which site was also used by subsequent  
    owners as the site of a coke manufacturing facility) in the Missouri     
    Voluntary Cleanup Program, for the purpose of characterizing the site.   
    MoDNR's preliminary tests conducted at the site reflect the presence of  
    coke and gas plant manufacturing wastes, as well as certain heavy metal  
    wastes.  The Company has also conducted an initial investigation,        
    consisting of soil sampling and the drilling of nine monitoring wells to 
    assess the condition of groundwater at this site.  The Company currently 
    estimates that the cost of such investigation, MoDNR oversight costs and 
    associated legal and engineering consulting costs relative to such       
    investigation of the site would together approximate $145,000.           
    Currently, $36,000 has been paid and an additional $109,000 has been     
    reserved on the Company's books.  The City of St. Louis, the current     
    owner of the site, received proposals from several different groups to   
    develop this site.  Various portions of the development proposals dealt  
    with the issue of the environmental condition of the site, and the       
    impact of such condition on possible development plans.  Unless and      
    until any 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.

    The Missouri Public Service Commission approved, effective September 1,  
    1996, the continued use of a cost deferral mechanism, originally         
    approved as part of a 1994 rate case settlement, for the Company's use   
    in applying for appropriate rate recovery of various environmental costs 
    in connection with former manufactured gas plants.  Laclede has proposed 
    to continue this deferral mechanism in its rate case which is currently  
    pending before the Commission.  In any event, the recovery of costs thus 
    deferred may be challenged in the current or future rate proceedings.

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

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

RESULTS OF OPERATIONS

Earnings for the quarter ended March 31, 1998 were $1.04 per share compared
with $1.22 per share for the comparable quarter last year.  The weather for
the quarter was 11% warmer than the same period last year.  The decrease in
earnings was primarily attributable to lower gas sales volumes (resulting
from the warmer weather) and higher costs of doing business.

Utility operating revenues for the quarter ended March 31, 1998 were $213.8
million compared with $264.0 million for the quarter ended March 31, 1997. 
The $50.2 million, or 19.0%, 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) and lower gas sales volumes arising from
the warmer weather.  System therms sold and transported decreased by 34.8
million therms, or 7.6%, below the quarter ended March 31, 1997.

Utility operating expenses for the quarter ended March 31, 1998 decreased by
$47.3 million, or 19.9%, below the same quarter last year.  Natural and
propane gas expense this quarter decreased $42.1 million, or 24.4%, below
last year mainly due to decreased rates charged by the Company's suppliers
and lower volumes purchased for sendout (resulting from the warmer weather). 
Other operation and maintenance expenses increased slightly due to higher
wage rates, increased distribution charges and other increases in the costs
of doing business.  These increases were largely offset mainly by higher
gains recognized on lump sum pension settlements.  Depreciation and
amortization expense increased 2.9% primarily due to additional property. 
Taxes, other than income taxes, decreased 18.3% mainly due to lower gross
receipts taxes (reflecting decreased revenues).  The $2.0 million decrease
in income taxes is principally due to lower taxable income.

Miscellaneous income and income deductions increased $.4 million primarily
due to improved subsidiary results and minor variations in several areas. 
The 12.5% increase in interest expense is mainly due to higher interest on
long-term debt resulting from the issuance of $25 million of 6-1/2% First
Mortgage Bonds in October 1997 and increased short-term interest charges.

Earnings for the six months ended March 31, 1998 were $1.82 per share
compared with $2.14 per share for the comparable period last year.  The
weather was 7% warmer than last year.  The decrease in earnings was
primarily due to lower gas sales volumes (arising from the warmer weather) 
and higher costs of doing business.  Due to the seasonal nature of its
business, the Company's earnings are concentrated during the first six
months of the fiscal year, which covers most of the heating season.  As
sales volumes decline during the summer, the Company experiences losses in
the second half of the fiscal year.

Utility operating revenues for the first six months of fiscal year 1998
decreased $44.4 million, or 9.7%, below the corresponding period of fiscal
year 1997.  This decrease was primarily due to lower gas sales volumes
(arising from the warmer weather) and lower wholesale gas costs (which are
passed on to Laclede's customers under the Company's Purchased Gas
Adjustment Clause).  System therms sold and transported decreased by 39.0
million therms, or 4.7%, below the level experienced during the six months
ended March 31, 1997.



                                 Page 10<PAGE>
<PAGE>
Utility operating expenses for the six months ended March 31, 1998 decreased
by $39.2 million, or 9.5%, below last year.  Natural and propane gas expense
during the first six months of fiscal year 1998 decreased by $36.0 million,
or 12.3%, below last year mainly due to reduced volumes purchased for
sendout (resulting from the warmer weather) and lower rates charged by our
suppliers.  Other operation and maintenance expenses increased $1.9 million,
or 3.6%, due to increased distribution and maintenance charges, higher wage
rates and other increases in the costs of doing business.  These increases
were partially offset by higher gains recognized on lump sum pension
settlements and lower net pension costs.  Depreciation and amortization
expense increased 2.5% primarily due to additional property.  Taxes, other
than income taxes, decreased by 7.2% principally due to lower gross receipts
taxes (mainly reflecting decreased revenues).  The $3.3 million decrease in
income taxes is mainly due to lower taxable income.

Miscellaneous income and income deductions for the first six months of
fiscal 1998 increased $.7 million above the same period last year primarily
due to improved subsidiary results and minor variations in several areas. 
The 11.6% increase in interest expense is mainly due to higher interest on
long-term debt resulting from the issuance of $25 million of 6-1/2% First
Mortgage Bonds in October 1997 and increased short-term interest charges.

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


LIQUIDITY AND CAPITAL RESOURCES

The Company's short-term borrowing requirements typically peak during colder
months, principally because of required payments for natural gas made in
advance of the receipt of cash from the Company's customers for the sale of
that gas.  Such short-term cash requirements have traditionally been met
through the sale of commercial paper supported by lines of credit with
banks.  In January 1998, the Company renewed its primary lines of bank
credit under which it may borrow up to $40 million prior to January 31,
1999, with renewal of any loans outstanding on that date permitted to June
30, 1999.  This, along with a previously obtained $70 million supplemental
line of credit which runs through August 30, 1998, provides a total line of
credit of $110 million for the 1997-1998 heating season.  During fiscal 1998
to date, the Company sold commercial paper aggregating to a maximum of
$110.0 million at any one time, but did not borrow from the banks under the
aforementioned agreements.  Short-term borrowings amounted to $34.5 million
at March 31, 1998.

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

As part of its annual review of the Company's gas costs, the Staff of the
MoPSC has recommended an adjustment which, if approved by the MoPSC and 

                                 Page 11<PAGE>
<PAGE>
upheld by the courts, would require the Company to refund to its customers
approximately $3.6 million of gains realized by the Company from various
sales made outside of Missouri between November 1995 and March 1996.  The 
Company will continue to vigorously oppose the Staff's recommended
adjustment before the MoPSC on the grounds that such adjustment violates
Missouri law, is impermissible under the Company's MoPSC-approved tariffs,
and is otherwise unlawful and unreasonable.  The Company believes that the
outcome of this matter is unlikely to have a material adverse impact on the
Company.

The Company is subject to various laws and regulations relating to the
environment, which thus far have not had a material effect on the Company's
financial position and results of operations.  However, the Company has
reported certain environmental liabilities in connection with two
manufactured gas plants operated by the Company in the past which produced
certain by-products and residuals.  The Company has either already paid or
reserved overall costs of $923,000 which are estimated to cover the
performance of certain limited actions at these locations.  At this time,
the ultimate costs to be incurred remain unclear, as does the amount of any
recovery which the Company may be able to obtain from other responsible
parties and/or the Company's insurers.  The Missouri Public Service
Commission approved, effective September 1, 1996, the continued use of a
cost deferral mechanism, originally approved as part of a 1994 rate case
settlement, for the Company's use in applying for appropriate rate recovery
of various environmental costs in connection with former manufactured gas
plants.  Laclede has proposed to continue this deferral mechanism in its
rate case which is currently pending before the Commission.  In any event,
the recovery of costs thus deferred may be challenged in the current or
future rate proceedings.  Refer to Note 6 of Notes to Consolidated Financial
Statements on page 8 for additional information on the Company's
environmental matters.

Construction expenditures for the six months ended March 31, 1998 were $22.1
million compared with $19.4 million for the same period last year.

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

In March, the Company announced that it had reached an agreement with
Williams Gas Pipelines Central of Tulsa, Oklahoma under which Williams will
provide additional natural gas service to the Company's service area.  Under
the agreement, Williams will convert to natural gas service an existing 200-
mile petroleum products line that stretches eastward from Kansas City to St.
Louis.  Williams presently owns and operates the nation's largest interstate
natural gas pipeline system in terms of volumes transported and is connected
to diverse and abundant natural gas reserves.  The new pipeline will provide
for the delivery of competitive, supplemental gas supplies that are needed 


                                 Page 12<PAGE>
<PAGE>
by the Company to ensure continued reliable service to the fast-growing St.
Charles area.  Williams is expected to begin firm transportation service to
the Company through the new line in October 1998.

Capitalization at March 31, 1998 increased $46.0 million since September 30,
1997 and consisted of 60.0% common stock equity, .4% preferred stock equity
and 39.6% long-term debt.

The seasonal effect of the Company's financial position affects the
comparison of certain balance sheet items at March 31, 1998 and at September
30, 1997 such as Accounts Receivable - Net, Natural Gas Stored Underground
for Current Use, Delayed and Advanced Customer Billings, and Accounts
Payable.














































                                 Page 13<PAGE>
<PAGE>

                                 
              LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES












                                Part II


                           OTHER INFORMATION








































                                 Page 14<PAGE>
<PAGE>
         LACLEDE GAS COMPANY AND SUBSIDIARY COMPANIES

Item 1.  Legal Proceedings
         
         For a discussion of environmental matters, see Note 6 of the Notes  
         to Consolidated Financial Statements in Part I, Financial           
         Information.  
         
         During the quarter ended March 31, 1998, there were no new legal    
         proceedings required to be disclosed.  

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

         The Annual Meeting of Shareholders of Laclede Gas Company was       
         held on January 22, 1998 for the purpose of electing four           
         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              Shares
            Director Nominee                Voted For        Voted Withheld
            ----------------                ---------        --------------
            Dr. Henry Givens, Jr.          13,985,556            220,306
            Mary Ann Krey                  13,990,286            215,576
            H. Edwin Trusheim              13,954,384            251,478
            Douglas H. Yaeger              13,991,336            214,526


         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, 1998 was passed    
         upon the following vote:

             Shares Voted:
             ------------
             For the proposal                13,750,871  
             Against the proposal               101,503  
             Abstain regarding the proposal     189,090


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 March 31, 1998.







                                 Page 15<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:  May 1, 1998                                  G. T. McNeive, Jr.
                                                   --------------------
                                                    G. T. McNeive, Jr.
                                              Sr. Vice President - Finance   
                                                  and General Counsel
                                               (Authorized Signatory and
                                               Chief Financial Officer) 






























                                 Page 16     <PAGE>
<PAGE>




                          Index to Exhibits


                                                                             
                                                                             
                                                               Sequentially
Exhibit                                                          Numbered
Number            Exhibit                                          Page
-------           -------                                      ------------  
                                  
    
10.01         Line of Credit Agreement dated January 16, 1998 
              with NationsBank, N.A.                                18
                        
10.02         Line of Credit Agreement dated January 16, 1998
              with Mercantile Bank National Association.            19

10.03         Line of Credit Agreement dated January 9, 1998
              with Commerce Bank.                                   21 

10.04         Line of Credit Agreement dated January 13, 1998
              with The Chase Manhattan Bank.                        23

27            Financial Data Schedule UT                            25 






















                                 






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