<PAGE> 1
EXHIBIT 99.1
DISTRIBUTION REPORT
FOR
PUBLIC STEERS(R) SERIES 1998 H-Z3 TRUST
DISTRIBUTION DATE
AUGUST 1, 2000
CUSIP NUMBER 744593AF1
(i) the amounts received by the Trustee as of the last such statement in
respect of principal, interest and premium on the Harcourt General,
Inc. 7.30% Debentures due August 1, 2097 (the "Underlying
Securities"):
<TABLE>
<S> <C>
Interest: $985,500.00
Principal: 0.00
Premium: 0.00
</TABLE>
(ii) the amounts of compensation received by the Trustee, for the period
relating to such Distribution Date:
<TABLE>
<S> <C>
Paid by the Trust: $ 0.00
Paid by the Depositor: $1,000.00
</TABLE>
(iii) the amount of distribution on such Distribution Date to Holders
allocable to principal of and premium, if any, and interest on the
Certificates of each such Class and the amount of aggregate unpaid
interest accrued as of such Distribution Date:
<TABLE>
<S> <C>
Class A:
Interest: $704,681.79
Principal: $280,000.00
Unpaid Interest Accrued: $ 0.00
</TABLE>
(iv) the aggregate stated principal amount and, if applicable, notional
amount of the Underlying Securities related to such Series, the
current interest rate or rates thereon at the close of business on
such Distribution Date, and the current rating assigned to the
Certificates.
<TABLE>
<S> <C>
Principal Amount: $27,000,000
Interest Rate: 7.30%
Rating:
Moody's Investor Service BAA2
Standard & Poor's Rating Service BBB
</TABLE>
<PAGE> 2
(v) the aggregate Certificate Principal Balance (or Notional Amount, if
applicable) of each Class of such Series at the close of business on
such Distribution Date.
<TABLE>
<S> <C>
Class A:
Initial Principal Balance: $21,427,000
Reduction: ($ 1,311,000)
------------
Principal Balance 8/1/00: $20,116,000
</TABLE>
