STATE FARM MUTUAL AUTOMOBILE INSURANCE CO
13F-E, 1994-08-11
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                       SECURITIES AND EXCHANGE COMMISSION                                                                         
                                   FORM 13F-E                                                                                     
                                                                                                                                  
                                                                                                                                  
Report for the Calendar Year or Quarter Ended:    06/30/94                                                                        
                                                                                                                                  
                                                                                                                                  
Institutional Investment Manager:                                                                                                 
                                                                                                                                  
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY                                                                                    
ONE STATE FARM PLAZA                                                                                                              
BLOOMINGTON                                       IL            61710                                                             
                                                                                                                                  
                                                                                                                                  
  I REPRESENT THAT I AM AUTHORIZED TO SUBMIT THIS FORM AND THAT ALL INFORMATION                                                   
  IN THIS FORM AND THE ATTACHMENTS TO IT IS TRUE, CORRECT AND COMPLETE, AND I                                                     
  UNDERSTAND THAT ALL REQUIRED ITEMS, STATEMENTS AND SCHEDULES ARE INTEGRAL                                                       
  PARTS OF THIS FORM AND THAT THE SUBMISSION OF ANY AMENDMENT REPRESENTS THAT                                                     
  ALL UNAMENDED ITEMS, STATEMENTS AND SCHEDULES REMAIN TRUE, CORRECT AND                                                          
  COMPLETE AS PREVIOUSLY SUBMITTED.                                                                                               
  I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE ACT OF 1934.                                                    
                                                                                                                                  
                                                                                                                                  
Name, Title and Telephone Number of Person Submitting Report:                                                                     
                                                                                                                                  
    WILLIAM J. HESS                SR. ASST. INVEST. COUNSEL    309-766-2302                                                      
                                                                                                                                  
                                                                                                                                  
Signature, Place and Date of Signing:                                                                                             
                                                                                                                                  
/s/ WILLIAM J. HESS                BLOOMINGTON                  IL    08/11/94                                                    
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   2                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
A D C TELECOMMUNICATIONS       COM              000886101   132575  3293774 SH       SOLE                3293774                  
AT&T CORP                      COM              001957109   379049  6970995 SH       SOLE                6970995                  
ABBOTT LABS                    COM              002824100   171494  5913600 SH       SOLE                5913600                  
ADVANCED TECHNOLOGIES LABS INC COM              00755N106     1503   235728 SH       SOLE                 235728                  
AFFYMAX N V                    COM              008267106     4720   377635 SH       SOLE                 377635                  
AGOURON PHARMACEUTICALS INC    COM              008488108     4500   400000 SH       SOLE                 400000                  
AHMANSON H F & CO              COM              008677106    53475  2833100 SH       SOLE                2833100                  
AIR PRODS & CHEMS INC          COM              009158106   317254  7486800 SH       SOLE                7486800                  
AIRTOUCH COMMUNICATIONS INC    COM              00949T100   130561  5526348 SH       SOLE                5526348                  
ALLERGAN INC                   COM              018490102    97005  4485700 SH       SOLE                4485700                  
AMERITECH CORP NEW             COM              030954101   181856  4760020 SH       SOLE                4760020                  
AMP INC                        COM              031897101    66958   970400 SH       SOLE                 970400                  
AMOCO CORP                     COM              031905102   162192  2851728 SH       SOLE                2851728                  
AMSOUTH BANCORPORATION         COM              032165102    50690  1615600 SH       SOLE                1615600                  
APPLE COMPUTER INC             COM              037833100    37365  1410000 SH       SOLE                1410000                  
APTARGROUP INC                 COM              038336103    12694   557966 SH       SOLE                 557966                  
ARCHER DANIELS MIDLAND CO      COM              039483102   543467 23262160 SH       SOLE               23262160                  
ATLANTIC RICHFIELD CO          COM              048825103   104092  1018000 SH       SOLE                1018000                  
BRE PROPERTIES INC             CL A             05564E106    73790  2409479 SH       SOLE                2409479                  
BALLARD MED PRODS              COM              058566100     6123   604751 SH       SOLE                 604751                  
BANC ONE CORP                  COM              059438101    58924  1720412 SH       SOLE                1720412                  
BANCORP HAWAII INC             COM              059685107    69476  2179639 SH       SOLE                2179639                  
BANPONCE CORP NEW              COM              066704107    54026  1731421 SH       SOLE                1731421                  
BATTLE MTN GOLD CO             COM              071593107    30394  2965350 SH       SOLE                2965350                  
BATTLE MTN GOLD CO             PFD CONV $3.25   071593305     3063    50000 SH       SOLE                  50000                  
BAXTER INTL INC                COM              071813109   167027  6362897 SH       SOLE                6362897                  
BELL ATLANTIC CORP             COM              077853109   159600  2850000 SH       SOLE                2850000                  
BELLSOUTH CORP                 COM              079860102    22971   372000 SH       SOLE                 372000                  
BETZ LABS INC                  COM              087779104    10594   250000 SH       SOLE                 250000                  
BIOMET INC                     COM              090613100    65590  6322000 SH       SOLE                6322000                  
BIOTECHNICA INTL INC           COM              090915109      511  1818182 SH       SOLE                1818182                  
BOISE CASCADE CORP             COM              097383103    10509   475000 SH       SOLE                 475000                  
BROOKTREE CORP                 COM              114577109    12252  3500508 SH       SOLE                3500508                  
BROWN TOM INC                  COM NEW          115660201    32745  2220000 SH       SOLE                2220000                  
CBI INDS INC                   COM              124800103    12869   459600 SH       SOLE                 459600                  
CIPSCO INC                     COM              125539106     2634   103315 SH       SOLE                 103315                  
CABLE & WIRELESS PUB LTD CO    SPONSORED ADR    126830207    13317   715000 SH       SOLE                 715000                  
CAMPBELL SOUP CO               COM              134429109    85765  2495000 SH       SOLE                2495000                  
CAPITAL CITIES ABC INC         COM              139859102   598944  8421000 SH       SOLE                8421000                  
CAROLINA PWR & LT CO           COM              144141108    46338  2003800 SH       SOLE                2003800                  
CATERPILLAR INC DEL            COM              149123101   143000  1430000 SH       SOLE                1430000                  
CENTRAL & SOUTH WEST CORP      COM              152357109    74312  3497000 SH       SOLE                3497000                  
CENTRAL LA ELEC INC            COM NEW          153897608    22551   959600 SH       SOLE                 959600                  
CHASE MANHATTAN CORP           COM              161610100    32580   851760 SH       SOLE                 851760                  
CHECKPOINT SYS INC             COM              162825103     5063   300000 SH       SOLE                 300000                  
CHEMEX PHARMACEUTICALS INC NIB WT EXP 033195    163610181        6    66660 SH       SOLE                  66660                  
CHEMEX PHARMACEUTICALS INC     COM PAR $0.04    163610306       88   100000 SH       SOLE                 100000                  
CHEVRON CORPORATION            COM              166751107   301743  7205800 SH       SOLE                7205800                  
CHIRON CORP                    COM              170040109    53984   986000 SH       SOLE                 986000                  
CLINTRIALS RESEARCH INC        COM              188767107     1575   200000 SH       SOLE                 200000                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   3                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
COCA COLA CO                   COM              191216100   101156  2490000 SH       SOLE                2490000                  
CODENOLL TECHNOLOGY CORP       COM              191900109      403   460600 SH       SOLE                 460600                  
COEUR D ALENE MINES CORP IDAHO COM              192108108     4564   245070 SH       SOLE                 245070                  
CONSOLIDATED PAPERS INC        COM              209759109     8750   200000 SH       SOLE                 200000                  
COOPER INDS INC                COM              216669101    33377  1467100 SH       SOLE                1467100                  
CORNING INC                    COM              219350105   327526 10039100 SH       SOLE               10039100                  
CYPRUS AMAX MINERALS CO        COM              232809103     3350   112628 SH       SOLE                 112628                  
DEP CORP                       CL A             233202209      280   106750 SH       SOLE                 106750                  
DEP CORP                       CL B             233202308      294   106750 SH       SOLE                 106750                  
DELTA & PINE LD CO             COM              247357106     2820   160000 SH       SOLE                 160000                  
DELTA AIR LINES INC DEL        COM              247361108    49775  1100000 SH       SOLE                1100000                  
DEXTER CORP                    COM              252165105    30964  1276873 SH       SOLE                1276873                  
DISNEY WALT CO DEL             COM              254687106   114885  2760000 SH       SOLE                2760000                  
DONALDSON INC                  COM              257651109    16932   756750 SH       SOLE                 756750                  
DONNELLEY R R & SONS CO        COM              257867101    48141  1734800 SH       SOLE                1734800                  
DOW CHEM CO                    COM              260543103   122251  1870000 SH       SOLE                1870000                  
DUKE POWER CO                  COM              264399106   146933  4110000 SH       SOLE                4110000                  
DYNAMICS CORP AMER             COM              268039104      401    28662 SH       SOLE                  28662                  
ELCOR CORP                     COM              284443108    12250   500000 SH       SOLE                 500000                  
EMERSON ELEC CO                COM              291011104    56330   990410 SH       SOLE                 990410                  
ENGELHARD CORP                 COM              292845104   162793  6447262 SH       SOLE                6447262                  
ENVIROTEST SYS CORP            CL A             29409W105      520    42420 SH       SOLE                  42420                  
EQUITABLE GAS CO               SUB DB CV 9.5%06 294497AJ1     3720  1200000 PRN      SOLE                1200000                  
EQUITABLE RES INC              COM              294549100    46474  1351968 SH       SOLE                1351968                  
ERICSSON L M TEL CO            ADR CL B SEK10   294821400    55014  1110000 SH       SOLE                1110000                  
EXXON CORP                     COM              302290101   327021  5762500 SH       SOLE                5762500                  
FASTENAL CO                    COM              311900104     3375   100000 SH       SOLE                 100000                  
FIBREBOARD CORP NEW            COM              315712109     1947    77883 SH       SOLE                  77883                  
FIFTH THIRD BANCORP            COM              316773100     4964    95000 SH       SOLE                  95000                  
FIRST EMPIRE ST CORP           COM              320076102    46950   300000 SH       SOLE                 300000                  
FIRST SEC CORP DEL             COM              336294103    12432   425000 SH       SOLE                 425000                  
FIRST VA BANKS INC             COM              337477103    19076   517300 SH       SOLE                 517300                  
GATX CORP                      COM              361448103   128499  3172800 SH       SOLE                3172800                  
GTE CORP                       COM              362320103    51770  1670000 SH       SOLE                1670000                  
GANTOS INC                     COM              364735100      719   250000 SH       SOLE                 250000                  
GENERAL ELEC CO                COM              369604103   156306  3352384 SH       SOLE                3352384                  
GILLETTE CO                    COM              375766102    68056  1045000 SH       SOLE                1045000                  
GOLDEN WEST FINL CORP DEL      COM              381317106    74766  1935700 SH       SOLE                1935700                  
GREAT LAKES CHEM CORP          COM              390568103   245852  4542300 SH       SOLE                4542300                  
HAWAIIAN ELEC INDUSTRIES       COM              419870100    15717   507000 SH       SOLE                 507000                  
HEILIG MEYERS CO               COM              422893107    61506  2267493 SH       SOLE                2267493                  
HELMERICH & PAYNE INC          COM              423452101    54704  2064300 SH       SOLE                2064300                  
HEWLETT PACKARD CO             COM              428236103   352171  4680000 SH       SOLE                4680000                  
HON INDS INC                   COM              438092108    79299  2883600 SH       SOLE                2883600                  
HUNTINGDON INTL HLDG PLC       ADR              445891203     4617   803000 SH       SOLE                 803000                  
IDAHO POWER CO                 COM              451380109    32050  1408800 SH       SOLE                1408800                  
ILLINOIS TOOL WKS INC          COM              452308109   186841  4790800 SH       SOLE                4790800                  
IMMUNE RESPONSE CORP DEL       COM              45252T106    11286  1128572 SH       SOLE                1128572                  
IMPERIAL HOLLY CORP            COM              452835101      646    77127 SH       SOLE                  77127                  
INDUSTRIAL TECHNOLOGIES INC    COM              456360106      172   137975 SH       SOLE                 137975                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   4                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
INGERSOLL RAND CO              COM              456866102    12297   350100 SH       SOLE                 350100                  
INTEL CORP                     COM              458140100   271733  4645000 SH       SOLE                4645000                  
INTERNATIONAL BUSINESS MACHS   COM              459200101   235247  4004198 SH       SOLE                4004198                  
INTERNATIONAL FLAVORS&FRAGRANC COM              459506101   243777  6230700 SH       SOLE                6230700                  
INTUIT                         COM              461202103     3325   100000 SH       SOLE                 100000                  
IPALCO ENTERPRISES INC         COM              462613100    30012  1039400 SH       SOLE                1039400                  
JOHNSON & JOHNSON              COM              478160104   365543  8525800 SH       SOLE                8525800                  
JOSLYN CORP                    COM              481070100     8404   329550 SH       SOLE                 329550                  
JOSTENS INC                    COM              481088102    35176  2181398 SH       SOLE                2181398                  
KN ENERGY INC                  COM              482620101    31705  1424965 SH       SOLE                1424965                  
KELLOGG CO                     COM              487836108   252028  4635000 SH       SOLE                4635000                  
KIMBERLY CLARK CORP            COM              494368103    31726   600000 SH       SOLE                 600000                  
KOPIN CORP                     COM              500600101     2679   214285 SH       SOLE                 214285                  
KUBOTA CORP                    ADR              501173207     3364    23200 SH       SOLE                  23200                  
LTV CORP NEW                   COM              501921100     1176    76461 SH       SOLE                  76461                  
LTV CORP NEW                   WT A EX 062898   501921126        4     1012 SH       SOLE                   1012                  
LATTICE SEMICONDUCTOR CORP     COM              518415104    24445  2625000 SH       SOLE                2625000                  
LECHTERS CORP                  COM              523238103     5700   400000 SH       SOLE                 400000                  
LEE ENTERPRISES INC            COM              523768109     3590   112200 SH       SOLE                 112200                  
LIBERTY BANCORP INC OKLA       COM              530175108    20323   645161 SH       SOLE                 645161                  
LIBERTY NATL BANCORP INC       COM              530792100    21390   690000 SH       SOLE                 690000                  
LIFE TECHNOLOGIES INC          COM              532177201     3634   196407 SH       SOLE                 196407                  
LILLY ELI & CO                 COM              532457108   261444  4596800 SH       SOLE                4596800                  
LINEAR TECHNOLOGY CORP         COM              535678106    76261  1733200 SH       SOLE                1733200                  
LONE STAR INDS INC             WT EXP 123100    542290119      614    89323 SH       SOLE                  89323                  
LONE STAR INDS INC             COM NEW          542290408      263    17519 SH       SOLE                  17519                  
LOUISIANA PAC CORP             COM              546347105    71262  2336454 SH       SOLE                2336454                  
MBNA CORP                      COM              55262L100    61425  2730000 SH       SOLE                2730000                  
MCI COMMUNICATIONS CORP        COM              552673105   152398  6888000 SH       SOLE                6888000                  
MAGAININ PHARMACEUTICALS INC   COM              559036108       10     2657 SH       SOLE                   2657                  
MANPOWER INC                   COM              56418H100   139860  6660000 SH       SOLE                6660000                  
MARCAM CORP                    COM              566140109     3432   305026 SH       SOLE                 305026                  
MCCORMICK & CO INC             COM NON VTG      579780206    82215  4060000 SH       SOLE                4060000                  
MEDAPHIS CORP                  COM              584028104    16088   585000 SH       SOLE                 585000                  
MEDTRONIC INC                  COM              585055106    16025   200000 SH       SOLE                 200000                  
MERCK & CO INC                 COM              589331107   200813  6750000 SH       SOLE                6750000                  
MINE SAFETY APPLIANCES CO      COM              602720104     8181   205800 SH       SOLE                 205800                  
MINERALS TECHNOLOGIES INC      COM              603158106     5800   200000 SH       SOLE                 200000                  
MINNESOTA MNG & MFG CO         COM              604059105   217656  4386000 SH       SOLE                4386000                  
MOLECULAR BIOSYSTEMS INC       COM              608513107     7150   650000 SH       SOLE                 650000                  
MOMENTUM CORP                  COM              608780102      230    31140 SH       SOLE                  31140                  
MORGAN J P & CO INC            COM              616880100   106553  1718600 SH       SOLE                1718600                  
MOTOROLA INC                   COM              620076109   178898  4010000 SH       SOLE                4010000                  
NBB BANCORP INC                COM              62872P109    18800   400000 SH       SOLE                 400000                  
NBD BANCORP INC                COM              628900102   101020  3194301 SH       SOLE                3194301                  
NESTLE S A                 NIB COM              641069406    41456   990000 SH       SOLE                 990000                  
NEWHALL LAND & FARMING CO CAL  DEPOSITARY REC   651426108    52074  3500758 SH       SOLE                3500758                  
NEWMONT MNG CORP               COM              651639106    82156  2041141 SH       SOLE                2041141                  
NORDSTROM INC                  COM              655664100    10625   250000 SH       SOLE                 250000                  
NORTHERN TELECOM LTD           COM              665815106    54643  1978042 SH       SOLE                1978042                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   5                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
NORWEST CORP                   COM              669380107   153584  5878800 SH       SOLE                5878800                  
NUCOR CORP                     COM              670346105   462320  6749200 SH       SOLE                6749200                  
OSMONICS INC                   COM              688350107    15108   966937 SH       SOLE                 966937                  
OSTEOTECH INC                  COM              688582105      700   200000 SH       SOLE                 200000                  
PNC BK CORP                    COM              693475105    88501  3065000 SH       SOLE                3065000                  
PACIFIC TELESIS GROUP          COM              694890104   119199  3876348 SH       SOLE                3876348                  
PACIFICORP                     COM              695114108    45966  2723908 SH       SOLE                2723908                  
PALL CORP                      COM              696429307    71831  4788700 SH       SOLE                4788700                  
PENWEST LTD                    COM              709752109     1742    77850 SH       SOLE                  77850                  
PENNZOIL CO                    COM              709903108   189901  3705372 SH       SOLE                3705372                  
PFIZER INC                     COM              717081103   393156  6228200 SH       SOLE                6228200                  
PIONEER HI BRED INTL INC       COM              723686101    94772  2893800 SH       SOLE                2893800                  
PITTWAY CORP DEL               COM              725790109     1375    38200 SH       SOLE                  38200                  
PITTWAY CORP DEL               CL A             725790208    18062   519766 SH       SOLE                 519766                  
PLAINS PETE CO                 COM              726529100    15207   711410 SH       SOLE                 711410                  
PLANAR SYS INC                 COM              726900103     8578   836920 SH       SOLE                 836920                  
POGO PRODUCING CO              COM              730448107   134081  5798077 SH       SOLE                5798077                  
POLAROID CORP                  COM              731095105    53275  1671362 SH       SOLE                1671362                  
PRECISION CASTPARTS CORP       COM              740189105    40875  1287400 SH       SOLE                1287400                  
PROXIMA CORP                   COM              744287103     7037   731146 SH       SOLE                 731146                  
RS FINL CORP                   COM              749721106     3338   150000 SH       SOLE                 150000                  
RTZ PLC                        SPONSORED ADR    74974K706    46979   903455 SH       SOLE                 903455                  
RAYCHEM CORP DEL               COM              754603108    94194  2616500 SH       SOLE                2616500                  
READERS DIGEST ASSN INC        CL B             755267200     6825   175000 SH       SOLE                 175000                  
REUTERS HOLDING PLC            ADR B            761324201    90480  2320000 SH       SOLE                2320000                  
RHEOMETRICS INC                COM              762073104      359   239048 SH       SOLE                 239048                  
RHONE POULENC RORER INC        COM              76242T104   115578  3789448 SH       SOLE                3789448                  
RICHTON INTL CORP              COM              765516109       48    22507 SH       SOLE                  22507                  
RIO ALGOM LTD                  COM              766889109    28957  1741800 SH       SOLE                1741800                  
ROGERS CORP                    COM              775133101     6625   200000 SH       SOLE                 200000                  
ROTO ROOTER INC                COM              778786103    11577   463066 SH       SOLE                 463066                  
RUBBERMAID INC                 COM              781088109   222894  8491200 SH       SOLE                8491200                  
RYKOFF-SEXTON INC              COM              783759103    24321  1297128 SH       SOLE                1297128                  
SAINT JOE PAPER CO             COM              790161103    87172  1752200 SH       SOLE                1752200                  
SANTA CRUZ OPERATION INC       COM              801833104     4471   812895 SH       SOLE                 812895                  
SARA LEE CORP                  COM              803111103    51515  2424200 SH       SOLE                2424200                  
SCI MED LIFE SYS INC           COM              808614101     8387   322584 SH       SOLE                 322584                  
SEQUENT COMPUTER SYS INC       COM              817338106    30310  2224625 SH       SOLE                2224625                  
SEQUENT COMPUTER SER A     NIB CV PFD           817338999      336    24625 SH       SOLE                  24625                  
SIGMA ALDRICH CORP             COM              826552101   136282  3407040 SH       SOLE                3407040                  
SMITHKLINE BEECHAM PLC         ADR REP EQT UT   832378400    28125  1000000 SH       SOLE                1000000                  
SOUTHERN CO                    COM              842587107    37501  2000000 SH       SOLE                2000000                  
SOUTHTRUST CORP                COM              844730101    63450  3114125 SH       SOLE                3114125                  
SOUTHWALL TECHNOLOGIES INC     COM              844909101     1254   340000 SH       SOLE                 340000                  
SOUTHWESTERN BELL CORP         COM              845333103   162038  3725000 SH       SOLE                3725000                  
SOUTHWESTERN ENERGY CO         COM              845467109    20369  1180800 SH       SOLE                1180800                  
SPRINT CORP                    COM              852061100    52313  1500000 SH       SOLE                1500000                  
STAR TECHNOLOGIES INC          COM              855193108      222  1015734 SH       SOLE                1015734                  
SUNTRUST BKS INC               COM              867914103   142697  2949800 SH       SOLE                2949800                  
TECO ENERGY INC                COM              872375100    69284  3622700 SH       SOLE                3622700                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   6                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
TMBR/SHARP DRILLING INC        COM              87257P101     1900   400000 SH       SOLE                 400000                  
TECUMSEH PRODS CO              CL B             878895101     5318   105300 SH       SOLE                 105300                  
TECUMSUH PRODS CO              CL A             878895200    14689   315900 SH       SOLE                 315900                  
TELEFONOS DE MEXICO S A        SP ADR REP ORD   879403780    15924   285000 SH       SOLE                 285000                  
TEMPLE INLAND INC              COM              879868107    50879  1068316 SH       SOLE                1068316                  
TENNANT CO                     COM              880345103     8778   209000 SH       SOLE                 209000                  
TEXAS UTILS CO                 COM              882848104   226919  7258166 SH       SOLE                7258166                  
TOWN & CTRY TR                 SH BEN INT       892081100    16425   900000 SH       SOLE                 900000                  
UNIVAR CORP                    COM              913353108     1038   103800 SH       SOLE                 103800                  
UPJOHN CO                      COM              915302103    34950  1200000 SH       SOLE                1200000                  
VLSI TECHNOLOGY INC            SUB DEB CNV 7%12 918270AA7    15026 16200000 PRN      SOLE               16200000                  
VWR CORP                       COM              918435108     1038   103800 SH       SOLE                 103800                  
VIKING OFFICE PRODS            COM              926913104    18227   729086 SH       SOLE                 729086                  
VULCAN MATLS CO                COM              929160109   150360  3277600 SH       SOLE                3277600                  
WACHOVIA CORP                  COM              929771103   179507  5419032 SH       SOLE                5419032                  
WAL MART STORES INC            COM              931142103    49373  2036000 SH       SOLE                2036000                  
WASHINGTON FED S&L ASN SEATTLE COM              938828100     9680   440000 SH       SOLE                 440000                  
WASHINGTON POST CO             CL B             939640108    17344    75000 SH       SOLE                  75000                  
WELLS FARGO & CO DEL           COM              949740104   253415  1685224 SH       SOLE                1685224                  
WESTCORP INC                   COM              957907108    10045   968205 SH       SOLE                 968205                  
WESTVACO CORP                  COM              961548104    34572  1124300 SH       SOLE                1124300                  
WILMINGTON TRUST CORP          COM              971807102     6669   247000 SH       SOLE                 247000                  
WISCONSIN ENERGY CORP          COM              976657106    43584  1825500 SH       SOLE                1825500                  
REPORT SUMMARY                223 DATA RECORDS            16117920            0 OTHER MANAGERS ON WHOSE BEHALF REPORT IS FILED    
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