STATE FARM MUTUAL AUTOMOBILE INSURANCE CO
13F-E, 1996-08-12
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<PAGE>      PAGE   1                                                                                                              
                                                                                                                                  
                       SECURITIES AND EXCHANGE COMMISSION                                                                         
                                   FORM 13F-E                                                                                     
                                                                                                                                  
                                                                                                                                  
Report for the Calendar Year or Quarter Ended:    06/30/96                                                                        
                                                                                                                                  
                                                                                                                                  
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    07/10/96                                                    
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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
                                                                                                                                  
SCANDINAVIAN BROADCASTING SYS  ORD              L8137H108    21793   889500 SH       SOLE                 889500                  
A D C TELECOMMUNICATIONS       COM              000886101   278440  6187548 SH       SOLE                6187548                  
AT&T CORP                      COM              001957109   472998  7628995 SH       SOLE                7628995                  
ABB AB                         SPONSORED ADR    00256Q103    33270   316100 SH       SOLE                 316100                  
ABBOTT LABS                    COM              002824100   257242  5913600 SH       SOLE                5913600                  
ADVANCED TECHNOLOGIES LABS INC COM              00755N106    10433   335935 SH       SOLE                 335935                  
AGOURON PHARMACEUTICALS INC    COM              008488108    11700   300000 SH       SOLE                 300000                  
AIR PRODS & CHEMS INC          COM              009158106   431536  7486800 SH       SOLE                7486800                  
AIRTOUCH COMMUNICATIONS INC    COM              00949T100   156120  5526348 SH       SOLE                5526348                  
ALLERGAN INC                   COM              018490102   173208  4386200 SH       SOLE                4386200                  
AMERITECH CORP NEW             COM              030954101   254067  4279020 SH       SOLE                4279020                  
AMP INC                        COM              031897101    88106  2195800 SH       SOLE                2195800                  
AMOCO CORP                     COM              031905102   205681  2851728 SH       SOLE                2851728                  
AMSOUTH BANCORPORATION         COM              032165102    58364  1615600 SH       SOLE                1615600                  
APTARGROUP INC                 COM              038336103    21068   696466 SH       SOLE                 696466                  
ARCHER DANIELS MIDLAND CO      COM              039483102   735735 38469786 SH       SOLE               38469786                  
ATLANTIC RICHFIELD CO          COM              048825103   120380  1018000 SH       SOLE                1018000                  
BRE PROPERTIES INC             CL A             05564E106    93970  4818958 SH       SOLE                4818958                  
BALLARD MED PRODS              COM              058566100    21129  1104751 SH       SOLE                1104751                  
BANC ONE CORP                  COM              059438101   132470  3896183 SH       SOLE                3896183                  
BANCORP HAWAII INC             COM              059685107    82503  2291739 SH       SOLE                2291739                  
BANPONCE CORP NEW              COM              066704107    79561  1768021 SH       SOLE                1768021                  
BARRETT RES CORP               COM PAR $0.01    068480201    54676  1837833 SH       SOLE                1837833                  
BATTLE MTN GOLD CO             COM              071593107    21499  2965350 SH       SOLE                2965350                  
BATTLE MTN GOLD CO             PFD CONV $3.25   071593305     2450    50000 SH       SOLE                  50000                  
BAXTER INTL INC                COM              071813109   300646  6362897 SH       SOLE                6362897                  
BELL ATLANTIC CORP             COM              077853109   181688  2850000 SH       SOLE                2850000                  
BELLSOUTH CORP                 COM              079860102    31248   744000 SH       SOLE                 744000                  
BETZ LABS INC                  COM              087779104    21938   500000 SH       SOLE                 500000                  
BIOMET INC                     COM              090613100    90878  6322000 SH       SOLE                6322000                  
BIOTECHNICA INTL INC           COM              090915109     8493 11324051 SH       SOLE               11324051                  
BOSTON SCIENTIFIC CORP         COM              101137107    49576  1101688 SH       SOLE                1101688                  
BROADWAY STORES INC            WT EXP 100899    111572111        9    33600 SH       SOLE                  33600                  
BROKEN HILL PROPRIETARY LTD    SPONSORED ADR    112169602    53874  1932700 SH       SOLE                1932700                  
BROOKTREE CORP                 COM              114577109    18378  3500508 SH       SOLE                3500508                  
BROWN TOM INC                  COM NEW          115660201    38018  2220000 SH       SOLE                2220000                  
CABLE & WIRELESS PUB LTD CO    SPONSORED ADR    126830207    22179  1123000 SH       SOLE                1123000                  
CAMPBELL SOUP CO               COM              134429109   175898  2495000 SH       SOLE                2495000                  
CANWEST GLOBAL COMMUNICATIONS  SHS NON VTG      138906300    10900   400000 SH       SOLE                 400000                  
CATERPILLAR INC DEL            COM              149123101   215784  3185000 SH       SOLE                3185000                  
CENTRAL & SOUTH WEST CORP      COM              152357109   100976  3497000 SH       SOLE                3497000                  
CENTRAL LA ELEC INC            COM NEW          153897608    25549   959600 SH       SOLE                 959600                  
CHECKPOINT SYS INC             COM              162825103    20625   600000 SH       SOLE                 600000                  
CHEVRON CORPORATION            COM              166751107   425142  7205800 SH       SOLE                7205800                  
CHIRON CORP                    COM              170040109    59666   608832 SH       SOLE                 608832                  
CLINTRIALS RESEARCH INC        COM              188767107     8300   200000 SH       SOLE                 200000                  
COCA COLA CO                   COM              191216100   248408  5070000 SH       SOLE                5070000                  
COEUR D ALENE MINES CORP IDAHO COM              192108108     4503   245070 SH       SOLE                 245070                  
COMPAQ COMPUTER CORP           COM              204493100     7565   154000 SH       SOLE                 154000                  
CONSOLIDATED PAPERS INC        COM              209759109    10400   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
                                                                                                                                  
CORNING INC                    COM              219350105   385251 10039100 SH       SOLE               10039100                  
CYPRUS AMAX MINERALS CO        COM              232809103     2576   112628 SH       SOLE                 112628                  
DELTA & PINE LD CO             COM              247357106    13520   319999 SH       SOLE                 319999                  
DELTA AIR LINES INC DEL        COM              247361108    91300  1100000 SH       SOLE                1100000                  
DEXTER CORP                    COM              252165105    37987  1276873 SH       SOLE                1276873                  
DISNEY WALT CO                 COM              254687106   781383 12427561 SH       SOLE               12427561                  
DONALDSON INC                  COM              257651109    19486   756750 SH       SOLE                 756750                  
DONNELLEY R R & SONS CO        COM              257867101    81043  2323800 SH       SOLE                2323800                  
DOW CHEM CO                    COM              260543103   142120  1870000 SH       SOLE                1870000                  
DUKE POWER CO                  COM              264399106   215763  4210000 SH       SOLE                4210000                  
DYNAMICS CORP AMER             COM              268039104      763    28662 SH       SOLE                  28662                  
ELCOR CORP                     COM              284443108     9125   500000 SH       SOLE                 500000                  
EMERSON ELEC CO                COM              291011104   103065  1140410 SH       SOLE                1140410                  
ENGELHARD CORP                 COM              292845104   222430  9670893 SH       SOLE                9670893                  
ENVIROTEST SYS CORP            CL A             29409W105      117    42420 SH       SOLE                  42420                  
EQUITABLE RES INC              COM              294549100    60242  2132450 SH       SOLE                2132450                  
ERICSSON L M TEL CO            ADR CL B SEK10   294821400   115756  5384000 SH       SOLE                5384000                  
EXXON CORP                     COM              302290101   539626  6211500 SH       SOLE                6211500                  
FEI CO                         COM              30241L109     4208   333334 SH       SOLE                 333334                  
FASTENAL CO                    COM              311900104    10875   250000 SH       SOLE                 250000                  
FIFTH THIRD BANCORP            COM              316773100     7695   142500 SH       SOLE                 142500                  
FIRST CHICAGO NBD CORP         COM              31945A100   124978  3194301 SH       SOLE                3194301                  
FIRST EMPIRE ST CORP           COM              320076102    72300   300000 SH       SOLE                 300000                  
FIRST SEC CORP DEL             COM              336294103    17100   712500 SH       SOLE                 712500                  
FIRST VA BANKS INC             COM              337477103    27800   695000 SH       SOLE                 695000                  
GATX CORP                      COM              361448103   153088  3172800 SH       SOLE                3172800                  
GENERAL ELEC CO                COM              369604103   290819  3352384 SH       SOLE                3352384                  
GILLETTE CO                    COM              375766102   130364  2090000 SH       SOLE                2090000                  
GOLDEN WEST FINL CORP DEL      COM              381317106   108400  1935700 SH       SOLE                1935700                  
GRANITE BROADCASTING CORP      COM              387241102      221    17081 SH       SOLE                  17081                  
GREAT LAKES CHEM CORP          COM              390568103   286057  4595300 SH       SOLE                4595300                  
HAWAIIAN ELEC INDUSTRIES       COM              419870100    17999   507000 SH       SOLE                 507000                  
HEILIG MEYERS CO               COM              422893107    67140  2797493 SH       SOLE                2797493                  
HELMERICH & PAYNE INC          COM              423452101    75605  2064300 SH       SOLE                2064300                  
HEWLETT PACKARD CO             COM              428236103   932491  9360000 SH       SOLE                9360000                  
HON INDS INC                   COM              438092108    82182  2883600 SH       SOLE                2883600                  
HUMAN GENOME SCIENCES INC      COM              444903108     4401   119750 SH       SOLE                 119750                  
HUNTINGDON INTL HLDG PLC       ADR              445891203     4818   803000 SH       SOLE                 803000                  
IDAHO POWER CO                 COM              451380109    43849  1408800 SH       SOLE                1408800                  
ILLINOIS SUPERCONDUCTOR CORP   COM              452284102     6683   264655 SH       SOLE                 264655                  
ILLINOIS TOOL WKS INC          COM              452308109   323978  4790800 SH       SOLE                4790800                  
IMMUNE RESPONSE CORP DEL       COM              45252T106    12979  1128572 SH       SOLE                1128572                  
INDUSTRIAL TECHNOLOGIES INC    COM              456360106      190   304641 SH       SOLE                 304641                  
INGERSOLL RAND CO              COM              456866102    15317   350100 SH       SOLE                 350100                  
INTEL CORP                     COM              458140100   482485  6570000 SH       SOLE                6570000                  
INTERNATIONAL BUSINESS MACHS   COM              459200101   396416  4004198 SH       SOLE                4004198                  
INTERNATIONAL FLAVORS&FRAGRANC COM              459506101   299833  6295700 SH       SOLE                6295700                  
INTUIT                         COM              461202103    10754   227600 SH       SOLE                 227600                  
IPALCO ENTERPRISES INC         COM              462613100    40926  1559100 SH       SOLE                1559100                  
JOHNSON & JOHNSON              COM              478160104   844054 17051600 SH       SOLE               17051600                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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
                                                                                                                                  
JOSTENS INC                    COM              481088102    43082  2181398 SH       SOLE                2181398                  
KN ENERGY INC                  COM              482620101    53934  1609965 SH       SOLE                1609965                  
KELLOGG CO                     COM              487836108   339514  4635000 SH       SOLE                4635000                  
KIMBERLY CLARK CORP            COM              494368103    46350   600000 SH       SOLE                 600000                  
KIMCO REALTY CORP              COM              49446R109    12006   425000 SH       SOLE                 425000                  
KOPIN CORP                     COM              500600101     1875   214285 SH       SOLE                 214285                  
KUBOTA CORP                    ADR              501173207     3167    23200 SH       SOLE                  23200                  
LATTICE SEMICONDUCTOR CORP     COM              518415104    39203  1625000 SH       SOLE                1625000                  
LECHTERS CORP                  COM              523238103     2600   400000 SH       SOLE                 400000                  
LEE ENTERPRISES INC            COM              523768109     5301   224400 SH       SOLE                 224400                  
LEGGETT & PLATT INC            COM              524660107     5550   200000 SH       SOLE                 200000                  
LIBERTY BANCORP INC OKLA       COM              530175108    22903   645161 SH       SOLE                 645161                  
LIFE TECHNOLOGIES INC          COM              532177201     6187   196407 SH       SOLE                 196407                  
LILLY ELI & CO                 COM              532457108   597584  9193600 SH       SOLE                9193600                  
LINEAR TECHNOLOGY CORP         COM              535678106   103992  3466400 SH       SOLE                3466400                  
LONE STAR INDS INC             WT EXP 123100    542290119     1541    89323 SH       SOLE                  89323                  
LONE STAR INDS INC             COM NEW          542290408      589    17519 SH       SOLE                  17519                  
LOUISIANA PAC CORP             COM              546347105    51694  2336454 SH       SOLE                2336454                  
MBNA CORP                      COM              55262L100   116708  4095000 SH       SOLE                4095000                  
MCI COMMUNICATIONS CORP        COM              552673105   268524 10479000 SH       SOLE               10479000                  
MFS COMMUNICATIONS INC         COM              55272T101     5644   150000 SH       SOLE                 150000                  
MANPOWER INC                   COM              56418H100   241780  6160000 SH       SOLE                6160000                  
MARCAM CORP                    COM              566140109     3660   305026 SH       SOLE                 305026                  
MCCORMICK & CO INC             COM NON VTG      579780206    89828  4060000 SH       SOLE                4060000                  
MEDAPHIS CORP                  COM              584028104    38856   977500 SH       SOLE                 977500                  
MEDTRONIC INC                  COM              585055106    44800   800000 SH       SOLE                 800000                  
MERCK & CO INC                 COM              589331107   436219  6750000 SH       SOLE                6750000                  
MICROSOFT CORP                 COM              594918104    11772    98000 SH       SOLE                  98000                  
MICROFIELD GRAPHICS INC        COM              59506W104      898   410348 SH       SOLE                 410348                  
MINERALS TECHNOLOGIES INC      COM              603158106     6850   200000 SH       SOLE                 200000                  
MINNESOTA MNG & MFG CO         COM              604059105   320988  4652000 SH       SOLE                4652000                  
MOLECULAR BIOSYSTEMS INC       COM              608513107     3600   400000 SH       SOLE                 400000                  
MORGAN J P & CO INC            COM              616880100   164562  1944600 SH       SOLE                1944600                  
MOTOROLA INC                   COM              620076109   287006  4573000 SH       SOLE                4573000                  
NEWHALL LAND & FARMING CO CAL  DEPOSITARY REC   651426108    57763  3500758 SH       SOLE                3500758                  
NEWMONT MINING CORP            COM              651639106   100782  2041141 SH       SOLE                2041141                  
NORDSTROM INC                  COM              655664100    11125   250000 SH       SOLE                 250000                  
NORTHERN TELECOM LTD           COM              665815106   107556  1978042 SH       SOLE                1978042                  
NORWEST CORP                   COM              669380107   212416  6090800 SH       SOLE                6090800                  
NUCOR CORP                     COM              670346105   357753  7066700 SH       SOLE                7066700                  
OSMONICS INC                   COM              688350107    21756   966937 SH       SOLE                 966937                  
OSTEOTECH INC                  COM              688582105     1450   200000 SH       SOLE                 200000                  
PNC BK CORP                    COM              693475105   191889  6450000 SH       SOLE                6450000                  
PACIFIC TELESIS GROUP          COM              694890104   124347  3684348 SH       SOLE                3684348                  
PACIFICORP                     COM              695114108   103661  4658908 SH       SOLE                4658908                  
PALL CORP                      COM              696429307   115527  4788700 SH       SOLE                4788700                  
PENWEST LTD                    COM              709752109     1401    77850 SH       SOLE                  77850                  
PENNZOIL CO                    COM              709903108   171373  3705372 SH       SOLE                3705372                  
PHARMACIA & UPJOHN INC         COM              716941109    77213  1740000 SH       SOLE                1740000                  
PFIZER INC                     COM              717081103   889076 12456400 SH       SOLE               12456400                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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
                                                                                                                                  
PIONEER HI BRED INTL INC       COM              723686101   153010  2893800 SH       SOLE                2893800                  
PITTWAY CORP DEL               COM              725790109     2521    57300 SH       SOLE                  57300                  
PITTWAY CORP DEL               CL A             725790208    36254   779649 SH       SOLE                 779649                  
POGO PRODUCING CO              COM              730448107   210454  5520077 SH       SOLE                5520077                  
POLAROID CORP                  COM              731095105    66629  1460362 SH       SOLE                1460362                  
PRECISION CASTPARTS CORP       COM              740189105    64306  1531100 SH       SOLE                1531100                  
PRIMESOURCE CORP               COM              741593107      166    22109 SH       SOLE                  22109                  
RTZ PLC                        SPONSORED ADR    74974K706   110719  1837655 SH       SOLE                1837655                  
RAYCHEM CORP DEL               COM              754603108   188061  2616500 SH       SOLE                2616500                  
READERS DIGEST ASSN INC        CL B             755267200     6891   175000 SH       SOLE                 175000                  
REUTERS HOLDING PLC            ADR B            761324201   258209  3561500 SH       SOLE                3561500                  
RHEOMETRICS SCIENTIFIC INC     COM              762073104      418   239048 SH       SOLE                 239048                  
RHONE POULENC RORER INC        COM              76242T104   246260  3668690 SH       SOLE                3668690                  
RIO ALGOM LTD                  COM              766889109    33530  1741800 SH       SOLE                1741800                  
ROGERS CORP                    COM              775133101     9950   400000 SH       SOLE                 400000                  
ROTO ROOTER INC                COM              778786103    15976   463066 SH       SOLE                 463066                  
RUBBERMAID INC                 COM              781088109   269514  9890400 SH       SOLE                9890400                  
RYKOFF-SEXTON INC              COM              783759103    19489  1355785 SH       SOLE                1355785                  
SBC COMMUNICATIONS INC         COM              78387G103   212317  4311000 SH       SOLE                4311000                  
ST JOE CORP                    COM              790148100   113017  1752200 SH       SOLE                1752200                  
SANTA CRUZ OPERATION INC       COM              801833104     5893   812895 SH       SOLE                 812895                  
SARA LEE CORP                  COM              803111103    78787  2424200 SH       SOLE                2424200                  
SCHWEITZER-MAUDUIT INTL INC    COM              808541106     1688    60000 SH       SOLE                  60000                  
SEQUENT COMPUTER SYS INC       COM              817338106    30365  2249250 SH       SOLE                2249250                  
SIGMA ALDRICH CORP             COM              826552101   187515  3504940 SH       SOLE                3504940                  
SILICON GRAPHICS INC           COM              827056102     5472   228000 SH       SOLE                 228000                  
SMITHKLINE BEECHAM PLC         ADR REP ORD      832378301    54250  1000000 SH       SOLE                1000000                  
SOUTHERN CO                    COM              842587107    52944  2150000 SH       SOLE                2150000                  
SOUTHTRUST CORP                COM              844730101   107806  3833125 SH       SOLE                3833125                  
SOUTHWESTERN ENERGY CO         COM              845467109    20210  1430800 SH       SOLE                1430800                  
SPRINT CORP                    COM              852061100    63000  1500000 SH       SOLE                1500000                  
STAR TECHNOLOGIES INC          COM              855193108      222  1015734 SH       SOLE                1015734                  
SUNTRUST BKS INC               COM              867914103   218285  5899600 SH       SOLE                5899600                  
TECO ENERGY INC                COM              872375100    91474  3622700 SH       SOLE                3622700                  
TMBR/SHARP DRILLING INC        COM              87257P101     3125   400000 SH       SOLE                 400000                  
TECUMSEH PRODS CO              CL B             878895101     5476   105300 SH       SOLE                 105300                  
TECUMSEH PRODS CO              CL A             878895200    16980   315900 SH       SOLE                 315900                  
TELEFONOS DE MEXICO S A        SP ADR REP ORD   879403780     9548   285000 SH       SOLE                 285000                  
TEMPLE INLAND INC              COM              879868107    49944  1068316 SH       SOLE                1068316                  
TENNANT CO                     COM              880345103    10868   418000 SH       SOLE                 418000                  
TEXAS UTILS CO                 COM              882848104   222362  5201466 SH       SOLE                5201466                  
360 COMMUNICATIONS CO          COM              885571109    12000   500000 SH       SOLE                 500000                  
TOWN & CTRY TR                 SH BEN INT       892081100    13125  1000000 SH       SOLE                1000000                  
U S BANCORP ORE                COM              911596104    13276   367500 SH       SOLE                 367500                  
UNIVAR CORP                    COM              913353108     2011   103800 SH       SOLE                 103800                  
VWR SCIENTIFIC PRODS CORP      COM              918435108     1661   103800 SH       SOLE                 103800                  
VALLEY NATL BANCORP            COM              919794107    10431   409043 SH       SOLE                 409043                  
VIKING OFFICE PRODS            COM              926913104    45750  1458172 SH       SOLE                1458172                  
VULCAN MATLS CO                COM              929160109   194608  3277600 SH       SOLE                3277600                  
WACHOVIA CORP                  COM              929771103   273134  6243032 SH       SOLE                6243032                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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
                                                                                                                                  
WAL MART STORES INC            COM              931142103    62702  2471000 SH       SOLE                2471000                  
WASHINGTON FED INC             COM              938824109    20890  1019000 SH       SOLE                1019000                  
WELLS FARGO & CO DEL           COM              949740104   402979  1685224 SH       SOLE                1685224                  
WESTCORP INC                   COM              957907108    18947  1067445 SH       SOLE                1067445                  
WESTVACO CORP                  COM              961548104    50383  1686450 SH       SOLE                1686450                  
WILMINGTON TRUST CORP          COM              971807102     8012   247000 SH       SOLE                 247000                  
WISCONSIN ENERGY CORP          COM              976657106    52712  1825500 SH       SOLE                1825500                  
REPORT SUMMARY                207 DATA RECORDS            24026979            0 OTHER MANAGERS ON WHOSE BEHALF REPORT IS FILED    
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