<PAGE> 1

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549


                                 FORM 10-Q
(Mark One)

( 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 2-67676

                                 C.M. CORP.
           (Exact name of registrant as specified in its charter)

            Delaware                                     59-1995931
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                      Identification Number)


       311 Park Place Boulevard, Suite 500, Clearwater, Florida 33759
        (Address of principal executive offices, including zip code)

                               (813) 791-2111
                             (Telephone Number)

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

Number of shares  outstanding of the registrant's  common stock as of April
30, 1998:

              Class                    Outstanding as of April 30, 1997
------------------------------         --------------------------------
 Common Stock, $1 par value                     1,000 shares

                                Page 1 of 16
                      Exhibit Index Located on Page 14


<PAGE> 2

                                 C.M. CORP.
                                 ----------

                                   INDEX

                                                              Page Number
                                                              -----------
Part I -    Financial Information

            Item 1.  Financial Statements

                Condensed Balance Sheets -
                     March 31, 1998 and December 31, 1997           3

                Condensed Statements of Operations - Three
                     Months Ended March 31, 1998 and 1997           4

                Condensed Statements of Cash Flows - Three
                     Months Ended March 31, 1998 and 1997           5

                Notes to Condensed Financial Statements             6

            Item 2.  Management's Discussion and Analysis
                of the Results of Operations and Financial
                Condition                                          11

            Item 3.  Defaults Upon Senior Securities               12


Part II -   Other Information

            Item 6.  Exhibits and Reports on Form 8-K              13



<PAGE> 3


                                 C.M. CORP.
                          CONDENSED BALANCE SHEETS
                                (Unaudited)


                                                        (Dollars in Thousands)
                                                     March 31,    December 31,
                                                       1998            1997
                                                    ----------    ------------
<TABLE>
<CAPTION>

                                  ASSETS

<S>                                                   <C>           <C>    
RESTRICTED CASH ..................................    $    43       $    43

REAL ESTATE OWNED ................................          7             7
                                                      -------       -------

                                                      $    50       $    50
                                                      =======       =======

   LIABILITIES AND STOCKHOLDER'S EQUITY

LIABILITIES:
Payable to U.S. Home Mortgage Corporation ........    $ 1,584       $ 1,584
Long-term debt, in default .......................        525           525
                                                      -------       -------

            Total liabilities ....................      2,109         2,109
                                                      -------       -------


STOCKHOLDER'S EQUITY:


Common stock, $1 par value .......................          1             1
Capital in excess of par value ...................      1,718         1,718
Retained deficit .................................     (3,778)       (3,778)
                                                      -------       -------
            Total stockholder's equity ...........     (2,059)       (2,059)
                                                      -------       -------
                                                      $    50       $    50
                                                      =======       =======
</TABLE>
      The accompanying notes are an integral part of these balance sheets.
<PAGE> 4


                                 C.M. CORP.
                     CONDENSED STATEMENTS OF OPERATIONS
                           (Dollars in Thousands)
                                (Unaudited)

                                                        Three Months Ended
                                                             March 31,
                                                       1998             1997
                                                     ---------        --------
<TABLE>
<CAPTION>
REVENUES:

<S>                                                       <C>           <C>
    Interest ..................................           $--           $30
    Gain on sale of loans .....................            --            65
                                                          ---           ---
                                                           --            95
                                                          ---           ---

EXPENSES:
    Interest ..................................            --            83
    Other .....................................            --             1
                                                          ---           ---
                                                           --            84
                                                          ---           ---

NET INCOME ....................................           $--           $11
                                                          ===           ===
</TABLE>
    The accompanying notes are an integral part of these statements.

<PAGE> 5


                                 C.M. CORP.
                     CONDENSED STATEMENTS OF CASH FLOWS
                           (Dollars in Thousands)
                                (Unaudited)

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                              March 31,
                                                        ---------------------
                                                         1998           1997
                                                         ----        --------
<S>                                                      <C>         <C>     
Net Cash Used By Operating Activities ..........         $--         $   (11)
                                                         -----       -------

Cash Flows From Investing Activities:
       Proceeds from investments in
         residential mortgage loans ............          --           2,374
       Decrease in restricted cash .............          --             508
                                                         -----       -------
       Net cash provided by investing
         activities ............................          --           2,882
                                                         -----       -------

Cash Flows From Financing Activities:
       Repayment of long-term debt .............          --          (2,871)
                                                         -----       -------
       Net cash used by financing
         activities ............................          --          (2,871)
                                                         -----       -------

Net Change In Cash .............................          --            --

Cash At Beginning of Period ....................          --            --
                                                         -----       -------

Cash At End of Period ..........................         $--         $  --
                                                         =====       =======

Supplemental Disclosure:
       Interest Paid ...........................         $--         $   129
                                                         =====       =======

</TABLE>



       The accompanying notes are an integral part of these statements.


<PAGE> 6
                                 C.M. CORP.
                                 ----------
                  NOTES TO CONDENSED FINANCIAL STATEMENTS
                  ---------------------------------------
                           (Dollars in Thousands)
                               (Unaudited)

(1)      BASIS OF PRESENTATION:

         The accompanying  unaudited  condensed  financial  statements have
         been  prepared  pursuant  to  the  rules  and  regulations  of the
         Securities and Exchange  Commission.  Certain information and note
         disclosures  normally  included  in  annual  financial  statements
         prepared  in  accordance   with  generally   accepted   accounting
         principles have been condensed or omitted  pursuant to those rules
         and regulations. Although C.M. Corp. ("Company") believes that the
         disclosures  made are adequate to make the  information  presented
         not  misleading,  it is suggested that these  condensed  financial
         statements be read in  conjunction  with the  unaudited  financial
         statements  and notes  thereto  included in the  Company's  latest
         annual  report on Form  10-K.  The  Company  did not have the cash
         funds to pay the costs  and  expenses  of an audit by  independent
         certified public accountants of its financial  statements included
         in such  annual  report and,  accordingly,  those  statements  are
         unaudited.

         The accompanying  unaudited  condensed  financial  statements have
         been prepared in accordance  with  generally  accepted  accounting
         principles applicable to a going concern, which contemplate, among
         other things,  realization of assets and payment of liabilities in
         the normal course of business.  However,  during the first quarter
         of 1997, the Company sold  substantially all of its mortgage loans
         and paid off a significant portion of its long-term debt and plans
         to cease operations in 1998 (See Notes 2, 4 and 5).

         In the opinion of the Company,  subject to the matter discussed in
         the preceding  paragraph,  the  accompanying  condensed  financial
         statements  contain all adjustments  (all of which were normal and
         recurring)  necessary to present fairly the financial  position as
         of March 31,  1998 and  December  31,  1997,  and its  results  of
         operations  and the  statements of cash flows for the  three-month
         periods ended March 31, 1998 and 1997.

(2)      INVESTMENT IN RESIDENTIAL MORTGAGE LOANS:

         On February 7, 1997,  the Company  sold  substantially  all of its
         remaining mortgage loans with an outstanding  principal balance of
         $2,366 on the date of purchase for an above par purchase  price to
         an  unaffiliated  investor and realized a gain on such sale of $65
         (See Note 5).
<PAGE> 7

(3)      VALUATION RESERVES:

         The  following   summarizes   valuation  reserves  for  losses  on
         investment in residential mortgage loans and real estate owned for
         the three months ended March 31, 1998 and 1997.
<TABLE>
<CAPTION>

                                                                Real Estate
                                                Investments        Owned
                                                -----------     ------------

               <S>                               <C>               <C>  
               Balance at December 31, 1996      $    22           $   -
                                                 -------           -----
               Balance at September 30, 1997     $    22           $   -
                                                 =======           =====

               Balance at December 31, 1997      $   -             $   -
                                                 -------           -----
               Balance at March 31, 1998         $   -             $   -
                                                 =======           =====
</TABLE>

(4)      LONG-TERM DEBT:

         In accordance with the terms of an indenture ("Indenture"),  dated
         as of July 15,  1980,  between the Company and The First  National
         Bank of Chicago  ("Trustee"),  as amended  and  supplemented,  the
         Company  issued,  in 1980 and 1981,  conventional  mortgage-backed
         bonds with original principal balances of $100,000 ("Bonds"). As a
         result of the sale on February 7, 1997 of substantially all of the
         mortgage  loans  pledged  to secure the Bonds,  the  Trustee  paid
         principal  on the Bonds in the  amount of $2,871  during the first
         quarter of 1997 (See Note 5).

         The Company  secured  the Bonds  pursuant  to an  investment  in a
         significant number of conventional residential mortgage loans with
         high   loan-to-value   ratios  that  were  located   primarily  in
         energy-related  areas which in the mid 1980's  experienced a sharp
         decline in real estate values and high foreclosure rates. In 1987,
         the costs and losses associated with the repossession, maintenance
         and resale of  foreclosed  properties  increased  due to depressed
         resale values in these areas which,  in turn,  accelerated  claims
         against  available  blanket mortgage  insurance  coverage.  During
         1988,  the  Company  exhausted  the  blanket  mortgage   insurance
         coverage to cover foreclosure losses on the conventional  mortgage
         loan pools  securing the Bonds.  As a result of the  exhaustion of
         the blanket  mortgage  insurance  coverage for the mortgage pools,
         losses  have  been  and  may  be  incurred  by  the  Company  that
         previously were reimbursed by the mortgage insurer.


<PAGE> 8
         Under the terms of the  Indenture,  the Company  agreed to provide
         the Trustee with the periodic  reports  filed with the  Securities
         and Exchange Commission ("SEC") and to provide an annual statement
         to the  bondholders.  The Company does not have, nor did it expect
         to have,  the cash funds to pay for the costs and  expenses of (a)
         the  annual  audit  of its  financial  statements  required  to be
         included in the annual report filed with the SEC or (b) the annual
         statement  to be provided  to the  bondholders.  Accordingly,  the
         financial  statements  included  in the  Company's  latest  annual
         report and those  included in the Company's  annual  reports filed
         with the SEC since 1991 are  unaudited and the Company did not and
         no longer intends to provide annual  statements to the bondholders
         which  resulted  in  non-compliance  with  a  covenant  under  the
         Indenture,  permitting  the Trustee or holders of 25% of the Bonds
         to accelerate their maturity.

         On May 28, 1992, the Trustee notified the Company that an Event of
         Default (as defined in the  Indenture) and a default have occurred
         under Section 6.01(4) and Section  6.01(2),  respectively,  of the
         Indenture.  The Trustee declared the outstanding principal balance
         of  all  of  the  remaining   Bonds  issued  under  the  Indenture
         (consisting  of the Series A and Series B Bonds) to be immediately
         due and payable. Accordingly,  pursuant to Section 12.02(a) of the
         Indenture,  the  Company  ceased  the  redemption  of  any  of the
         remaining Bonds.

         From 1992 through 1996, the Trustee issued various  reports to the
         bondholders,  from time to time, summarizing,  among other things,
         the remedies  available  under the Indenture and the actions taken
         and proposed to be taken by the Trustee  relating to the Events of
         Default.  The Trustee  informed the bondholders in a report issued
         to the  bondholders  in  1994  that  the  unaffiliated  collateral
         evaluation  service  retained by the Trustee to review and analyze
         the  collateral   securing  the  Bonds   concluded   there  was  a
         significant  depreciation in the value of the properties  securing
         the mortgage  loans and such  depreciation  in value was likely to
         have a significant affect on the bondholders' ultimate recovery of
         their  investment  in the Bonds.  The Trustee  also stated in that
         report  their  intent to hold the  collateral  for the present and
         this decision was reconfirmed in subsequent  reports issued to the
         bondholders in 1995 and 1996.

         The Trustee requested  reimbursement from the Company for costs of
         legal counsel and the collateral  evaluation  service  relating to
         the Events of Default and for trust administration services of the
         Trustee.  The Company  does not have,  nor does it expect to have,
         the cash funds to reimburse the Trustee for these costs. Under the
         terms of the  Indenture,  the Trustee  may, in certain  instances,
         apply  moneys  from  the  reserve  funds  or from  the sale of the
         pledged  collateral  to  the  payment  of  expenses  incurred  and
         advances  made by the Trustee.  As of March 31, 1998,  the Trustee
         withdrew on a cumulative  basis $109 from the reserve fund for the
         Series A Bonds and the same amount of $109 from the  reserve  fund
         for the Series B Bonds for these costs.
<PAGE> 9

         Prior to and  including  the payment made on March 28, 1997 to the
         Series B bondholders  from the sale of the mortgage  securing such
         series,   the  Company  had  made  timely   payments  due  to  the
         bondholders under the terms of the Indenture. However, the Company
         believed  that the  exhaustion of the blanket  mortgage  insurance
         coverage  for the Bonds  issued by the  Company,  the  anticipated
         withdrawal by the Trustee for additional expenses and advances for
         its trust  administration  services  and for expenses and costs of
         the Events of Default, a continuation of the high costs and losses
         associated with  foreclosures on pledged loans and the application
         by the  Company  under  the  terms  of the  Indenture  of  certain
         proceeds  from  insurance   claims,   principal   prepayments  and
         foreclosures  to payment of interest  on the Bonds  rather than to
         redemptions  or prepayments of principal on the Bonds would in the
         future cause a deficiency in cash flows available for the payments
         due on the related  Bonds and the  eventual  depletion of the cash
         reserve  funds.  In addition,  at the end of 1996, the Bonds had a
         stated maturity within the next 4 years in the year 2000 and there
         was a significant  shortfall in the principal balance and weighted
         average  interest rate earned on the pledged loans compared to the
         corresponding  interest rates paid on the Bonds. Such events would
         cause the  Company  at some  future  date to be unable to meet its
         debt service requirements under the Indenture and holders of Bonds
         would receive less than the principal amounts due on their Bonds.

         At the end of 1996,  substantially  all of the remaining  mortgage
         loans were current and had good recent payment histories. In order
         to minimize the eventual losses to the  bondholders,  and based on
         the highest bid the Company  obtained from an investor to purchase
         these loans at an above par  purchase  price,  the Trustee  agreed
         with  the  Company  that  it  was  in  the  best  interest  of the
         bondholders  to sell  the  loans  and  distribute  the  liquidated
         collateral to them.

         U.S. Home Mortgage Corporation ("Mortgage"),  as servicer, was not
         obligated  to  advance  delinquent  payments  due on  the  pledged
         mortgage  loans unless it  reasonably  believed that such advances
         would ultimately be recoverable from mortgage insurance  proceeds.
         During 1991,  Mortgage,  as servicer,  advised the Company that it
         would not advance  delinquent  mortgage  loan  payments due to the
         uncertainty of the  recoverability of such advances.  As a result,
         the Trustee  withdrew  once each in 1991 and 1992 a portion of the
         reserve funds to make the required interest payments on the Series
         B Bonds and to make such  payments  on the Series A Bonds in 1996.
         In  addition  to the  withdrawals  from the  reserve  funds by the
         Trustee  for  bond   administration   costs  and   expenses,   the
         anticipated  cash flow  deficiencies  to meet future debt  service
         requirements would have also resulted in further  withdrawals from
         each of the  reserve  funds for both  series of Bonds  until these
         funds were  eventually  exhausted.  The cash reserve funds for the
         Series A and Series B Bonds were  substantially  depleted from the
         principal payments paid on these Bonds during the first quarter of
         1997.  At March  31,  1998,  funds on  deposit  with the  Trustee,
         including the remaining cash reserve funds, totaled $43.
<PAGE> 10
(5)      LOAN SALE AND BOND PREPAYMENT:

         At the end of 1996,  the Company  obtained bids from  unaffiliated
         investors/brokers  to  purchase  the  remaining  loans  pledged to
         secure the Bonds  since most of these  loans were  current and had
         good recent payment  histories.  The Company requested the consent
         of the Trustee to sell the loans to the investor  with the highest
         bid of 102.75%  offering to  purchase  all of the loans which were
         not in foreclosure.

         As part of the Special  Reports  the Trustee  sent to the Series A
         bondholders  (dated  February  28,  1997)  and  to  the  Series  B
         bondholders  (dated March 28, 1997),  the Trustee  stated in those
         reports  that prior to  granting  their  consent to this  proposed
         sale,  the  Trustee  requested  its  mortgage  banking  affiliate,
         experienced in the sale of residential  mortgage  loans, to review
         the process by which the Company obtained the bids to determine if
         it  was  likely  to  have  resulted  in  receipt  of  bids  fairly
         reflecting  the market for such loans and assess the  fairness  of
         the bid.  The  Trustee  also  stated  in these  reports  that this
         affiliate concluded that the bid solicitation  process employed by
         the Company was  appropriate  and that the  accepted bid was fair.
         Accordingly,  the Trustee  exercised its rights under Section 6.04
         of the Indenture and consented to the sale.

         On February 7, 1997, the Company sold,  without  recourse,  all of
         its mortgage loans to this investor except for one loan pledged to
         secure the Series B Bonds which was in the process of foreclosure.
         During  February  and March,  1997,  the Trustee used the proceeds
         from this sale  together  with  payments  collected on these loans
         prior to the sale and funds from the respective cash reserve funds
         to pay  the  Series  A  Bonds  in  full  and to  make a  principal
         prepayment of $1,642 on the Series B Bonds. At March 31, 1998, the
         outstanding principal balance of the Series B Bonds was $525.

         The  Company  does  not  have,  nor  expect  to have,  any  assets
         available  to make  further  payments  on the Series B Bonds other
         than the remaining  cash funds on deposit with the Trustee and the
         one  remaining   foreclosed   mortgage  loan  in  the  process  of
         liquidation  with  an  outstanding  principal  balance  of $36 and
         estimated net  realizable  value of $7. The Trustee  stated in the
         Special  Report  (dated  March  28,  1997)  sent to the  Series  B
         bondholders that the Trustee expects,  and the Company agrees, the
         proceeds from the  liquidation of this loan will not be sufficient
         to repay the  remaining  principal  of the Series B Bonds in full.
         The  Trustee  further  stated  in this  report  that,  due to such
         insufficiency,  there will be no further  payments  of interest on
         the Series B Bonds.  Based on this  statement by the Trustee,  the
         Company  ceased   accruing   interest   expense   payable  on  the
         outstanding  Series B Bonds.  Therefore,  at March 31,  1998,  the
         outstanding bond principal  balance of $525 and interest  accruing
         on the  Series B Bonds is  substantially  not  recoverable  and is
         expected to result in a loss to the holders of the Series B Bonds.
<PAGE> 11

Item 2.     Management's Discussion and Analysis of Financial Condition and
            Results of Operations

            Results of Operations -

            Interest revenues and expenses decreased during the three month
            period ended March 31, 1998 compared to the same period in 1997
            due,  primarily,  to a reduction in the  outstanding  principal
            balances of the mortgage loans and long-term debt from the sale
            of  substantially  all of the mortgage  loans and the principal
            prepayment  of a significant  portion of the related  long-term
            debt from such sale proceeds  during the first quarter of 1997.
            In addition, the Company realized a gain from the sale of these
            loans.

            As of March 31, 1998,  the Company's  only earning asset is the
            cash  reserve  funds on deposit in a  short-term  money  market
            account with the Trustee.

            Financial Condition and Liquidity -

            At March 31, 1998,  the Company had  outstanding  approximately
            $525,300 of mortgage-backed  bonds ("Bonds") remaining from the
            issuance, under the terms of an indenture ("Indenture"), of its
            Series B Bonds. On May 28, 1992, as a result of  non-compliance
            with a covenant under the Indenture,  the Trustee for the Bonds
            (consisting  of the Series A and Series B Bonds)  notified  the
            Company  that an Event of Default had occurred and declared the
            outstanding  principal  balance of the Bonds  issued  under the
            Indenture to be immediately due and payable.

            On February 7, 1997, the Company sold,  without  recourse,  and
            with the consent of the Trustee,  all of its mortgage  loans at
            an above par purchase price to an unaffiliated  investor except
            for one loan in  default  and  pledged  to secure  the Series B
            Bonds which has been  subsequently  foreclosed  and is awaiting
            liquidation.  During February and March, 1997, the Trustee used
            the proceeds from this sale together with payments collected on
            these  loans  prior to the sale and funds  from the  respective
            cash  reserve  funds  to pay the  Series A Bonds in full and to
            make a  principal  prepayment  of  $1,642,200  on the  Series B
            Bonds.


<PAGE> 12

            The  Company  does not have,  nor  expect to have,  any  assets
            available to make further  payments on the Series B Bonds other
            than the  remaining  cash funds on deposit  with the Trustee of
            $43,300 and the one remaining  foreclosed  mortgage loan in the
            process of liquidation with an outstanding principal balance of
            $36,100 and an estimated net  realizable  value of $7,000.  The
            Trustee expects, and the Company agrees, that the proceeds from
            the  liquidation  of this loan will not be  sufficient to repay
            the  remaining  principal  of the  Series B Bonds in full.  The
            Trustee also  informed the Series B  bondholders  that,  due to
            such  insufficiency,  there  will  be no  further  payments  of
            interest on the Series B Bonds.  Therefore,  at March 31, 1998,
            the outstanding bond principal balance of $525,300 and interest
            accruing on the Series B Bonds is substantially not recoverable
            and is  expected  to  result  in a loss to the  holders  of the
            Series B Bonds.

            In  addition,  the Company  does not have the funds to repay the
            payable of  $1,584,000  to U.S.  Home Mortgage Corporation.

            For additional information, see "Notes 2, 4 and 5 of Notes to
            Condensed Financial Statements."
Item 3.     Defaults Upon Senior Securities.

            On May 28, 1992, the Trustee notified the Company that an Event
            of Default  (as  defined in the  Indenture)  had  occurred  and
            declared  the  outstanding  principal  balance  of  all  of the
            remaining  Bonds issued under the  Indenture to be  immediately
            due and payable.

            For additional information, see "Notes 2, 4 and 5 of Notes to
            Condensed Financial Statements."
<PAGE> 13


PART II - OTHER INFORMATION

Item 6.     Exhibits and Reports on Form 8-K

            (a)  Exhibits

                 Exhibit 11 - Computation of Income  Per Common Share.

                 Exhibit 27 - Financial Data Schedule.

            (b)  Reports on Form 8-K

                 No  Current  Report on Form 8-K was  filed by the  Company
                 during the three months ended March 31, 1998.



                                 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.


                                           C.M. CORP.
                                           (Registrant)


Date:   May 13, 1998                       /s/ James R. Petty
                                           ------------------------------
                                           (James R. Petty)
                                           President and Chief Executive
                                           Officer (principal executive
                                           officer)


Date:   May 13, 1998                       /s/ Ronald C. McCabe
                                           ---------------------
                                           (Ronald C. McCabe)
                                           Senior Vice President and
                                           Chief Accounting Officer
                                           (principal accounting officer)


<PAGE> 14


                             INDEX OF EXHIBITS




 Exhibit                                                           Page
 Number                                                           Number
--------                                                          ------
     11          Computation of Income Per Common Share             15

     27          Financial Data Schedule                            16