STATE FARM MUTUAL AUTOMOBILE INSURANCE CO
13F-E, 1998-05-07
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<PAGE>      PAGE   1                                                                                                              
                                                                                                                                  
                       SECURITIES AND EXCHANGE COMMISSION                                                                         
                                   FORM 13F-E                                                                                     
                                                                                                                                  
                                                                                                                                  
Report for the Calendar Year or Quarter Ended:    03/31/98                                                                        
                                                                                                                                  
                                                                                                                                  
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    309-766-2392                                                      
                                                                                                                                  
                                                                                                                                  
Signature, Place and Date of Signing:                                                                                             
                                                                                                                                  
/s/ WILLIAM J. HESS                BLOOMINGTON                  IL    03/04/98                                                    
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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    29354   889500 SH       SOLE                 889500                  
A D C TELECOMMUNICATIONS       COM              000886101   307514 11156996 SH       SOLE               11156996                  
AT&T CORP                      COM              001957109   501508  7628995 SH       SOLE                7628995                  
ATL ULTRASOUND INC             COM              00207N100    17091   335935 SH       SOLE                 335935                  
ABB AB                         SPONSORED ADR    00256Q103    44017   316100 SH       SOLE                 316100                  
ABBOTT LABS                    COM              002824100   450413  5980600 SH       SOLE                5980600                  
AGOURON PHARMACEUTICALS INC    COM              008488108    18938   500000 SH       SOLE                 500000                  
AIR PRODS & CHEMS INC          COM              009158106   604888  7298800 SH       SOLE                7298800                  
AIRTOUCH COMMUNICATIONS INC    COM              00949T100   276612  5652348 SH       SOLE                5652348                  
ALLEGIANCE CORP                COM              017475104    50346  1272578 SH       SOLE                1272578                  
ALLERGAN INC                   COM              018490102   149880  3944200 SH       SOLE                3944200                  
ALLERGAN SPECIALTY THERAP      CL A             018494104     2392   197210 SH       SOLE                 197210                  
AMERITECH CORP NEW             COM              030954101   442952  8959840 SH       SOLE                8959840                  
AMGEN INC                      COM              031162100    33786   555000 SH       SOLE                 555000                  
AMOCO CORP                     COM              031905102   261866  3031728 SH       SOLE                3031728                  
AMSOUTH BANCORPORATION         COM              032165102   150069  2540850 SH       SOLE                2540850                  
APTARGROUP INC                 COM              038336103    59857   996566 SH       SOLE                 996566                  
ARCHER DANIELS MIDLAND CO      COM              039483102   930433 42412932 SH       SOLE               42412932                  
ATLANTIC RICHFIELD CO          COM              048825103   157251  2000000 SH       SOLE                2000000                  
AUTOMATIC DATA PROCESSING INC  COM              053015103    13518   198600 SH       SOLE                 198600                  
AVALON PPTYS INC               COM              053469102     4823   166300 SH       SOLE                 166300                  
BRE PROPERTIES INC             CL A             05564E106   100070  3518958 SH       SOLE                3518958                  
BALLARD MED PRODS              COM              058566100    27452  1016751 SH       SOLE                1016751                  
BANC ONE CORP                  COM              059438101   362461  5730611 SH       SOLE                5730611                  
BANKAMERICA CORP               COM              066050105    49682   601300 SH       SOLE                 601300                  
BARRETT RES CORP               COM PAR $0.01    068480201    87125  2493733 SH       SOLE                2493733                  
BATTLE MTN GOLD CO             COM              071593107    22729  3565350 SH       SOLE                3565350                  
BATTLE MTN GOLD CO             PFD CONV $3.25   071593305     2372    50000 SH       SOLE                  50000                  
BAXTER INTL INC                COM              071813109   351526  6376897 SH       SOLE                6376897                  
BELL ATLANTIC CORP             COM              077853109   295718  2892100 SH       SOLE                2892100                  
BELLSOUTH CORP                 COM              079860102    53721   796600 SH       SOLE                 796600                  
BETZDEARBORN INC               COM              087779104    28219   500000 SH       SOLE                 500000                  
BIOMET INC                     COM              090613100   190110  6337000 SH       SOLE                6337000                  
BOSTON SCIENTIFIC CORP         COM              101137107    74364  1101688 SH       SOLE                1101688                  
BROKEN HILL PROPRIETARY LTD    SPONSORED ADR    112169602    39983  1932700 SH       SOLE                1932700                  
BROWN TOM INC                  COM NEW          115660201    58623  2620000 SH       SOLE                2620000                  
CMS ENERGY CORP                COM              125896100    14081   300000 SH       SOLE                 300000                  
CABLE & WIRELESS PUB LTD CO    SPONSORED ADR    126830207    18162   481100 SH       SOLE                 481100                  
CAMPBELL SOUP CO               COM              134429109   292308  5150800 SH       SOLE                5150800                  
CANWEST GLOBAL COMMUNICATIONS  SHS NON VTG      138906300    30215  1600800 SH       SOLE                1600800                  
CARDIOTHORACIC SYS INC         COM              141907105     2286   345000 SH       SOLE                 345000                  
CATERPILLAR INC DEL            COM              149123101   424500  7709400 SH       SOLE                7709400                  
CENTRAL & SOUTH WEST CORP      COM              152357109   127250  4757000 SH       SOLE                4757000                  
CENTRAL LA ELEC INC            COM NEW          153897608    32867   959600 SH       SOLE                 959600                  
CHECKPOINT SYS INC             COM              162825103    12750   600000 SH       SOLE                 600000                  
CHEVRON CORPORATION            COM              166751107   582331  7250800 SH       SOLE                7250800                  
CHIRON CORP                    COM              170040109    50990  2435328 SH       SOLE                2435328                  
CISCO SYS INC                  COM              17275R102    36375   532000 SH       SOLE                 532000                  
CLINTRIALS RESEARCH INC        COM              188767107     1603   225000 SH       SOLE                 225000                  
COCA COLA CO                   COM              191216100   420811  5434200 SH       SOLE                5434200                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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
                                                                                                                                  
COEUR D ALENE MINES CORP IDAHO COM              192108108     3128   242970 SH       SOLE                 242970                  
COLGATE PALMOLIVE CO           COM              194162103    56634   652900 SH       SOLE                 652900                  
COMPAQ COMPUTER CORP           COM              204493100    26977  1042600 SH       SOLE                1042600                  
CONSOLIDATED PAPERS INC        COM              209759109    12800   200000 SH       SOLE                 200000                  
CORNING INC                    COM              219350105   433831  9804100 SH       SOLE                9804100                  
COVANCE INC                    COM              222816100    60202  2451025 SH       SOLE                2451025                  
CYPRUS AMAX MINERALS CO        COM              232809103     1873   112628 SH       SOLE                 112628                  
DEERE & CO                     COM              244199105    22675   366100 SH       SOLE                 366100                  
DELTA & PINE LD CO             COM              247357106    29582   568886 SH       SOLE                 568886                  
DELTA AIR LINES INC DEL        COM              247361108   101589   859100 SH       SOLE                 859100                  
DEUTSCH TELEKOM AG             SPONSORED ADR    251566105    19649   891800 SH       SOLE                 891800                  
DIEBOLD INC                    COM              253651103    27989   636100 SH       SOLE                 636100                  
DISNEY WALT CO                 COM              254687106  1329845 12457561 SH       SOLE               12457561                  
DONALDSON INC                  COM              257651109    38973  1513500 SH       SOLE                1513500                  
DONNELLEY R R & SONS CO        COM              257867101   113899  2773800 SH       SOLE                2773800                  
DOW CHEM CO                    COM              260543103   194705  2002100 SH       SOLE                2002100                  
DU PONT E I DE NEMOURS & CO    COM              263534109    60446   888900 SH       SOLE                 888900                  
DUKE ENERGY CORP               COM              264399106   267734  4495000 SH       SOLE                4495000                  
ELCOR CORP                     COM              284443108    20156   750000 SH       SOLE                 750000                  
ELECTRONIC DATA SYS NEW        COM              285661104    64588  1407900 SH       SOLE                1407900                  
EMERSON ELEC CO                COM              291011104   160356  2459920 SH       SOLE                2459920                  
ENERGY GROUP PLC               SPONSORED ADR    292691102    33788   600000 SH       SOLE                 600000                  
ENGELHARD CORP                 COM              292845104   183748  9670893 SH       SOLE                9670893                  
ERICSSON L M TEL CO            ADR CL B SEK10   294821400   288338  6062300 SH       SOLE                6062300                  
EXCITE INC                     COM              300904109      164     6437 SH       SOLE                   6437                  
EXXON CORP                     COM              302290101   850716 12579900 SH       SOLE               12579900                  
FPL GROUP INC                  COM              302571104    60434   940600 SH       SOLE                 940600                  
FASTENAL CO                    COM              311900104    12796   295000 SH       SOLE                 295000                  
FIFTH THIRD BANCORP            COM              316773100    18276   213750 SH       SOLE                 213750                  
FINOVA GROUP INC               COM              317928109    19465   330600 SH       SOLE                 330600                  
FIRST CHICAGO NBD CORP         COM              31945A100   309768  3515101 SH       SOLE                3515101                  
FIRST EMPIRE ST CORP           COM              320076102   152813   305700 SH       SOLE                 305700                  
FIRST SEC CORP DEL             COM              336294103    41293  1734075 SH       SOLE                1734075                  
FIRST VA BANKS INC             COM              337477103    61962  1104000 SH       SOLE                1104000                  
GATX CORP                      COM              361448103   229733  2945300 SH       SOLE                2945300                  
GTE CORP                       COM              362320103    28267   472100 SH       SOLE                 472100                  
GENERAL ELEC CO                COM              369604103   743012  8620868 SH       SOLE                8620868                  
GILLETTE CO                    COM              375766102   253813  2138500 SH       SOLE                2138500                  
GOLDEN WEST FINL CORP DEL      COM              381317106   194059  2025400 SH       SOLE                2025400                  
GRANITE BROADCASTING CORP      COM              387241102      197    17081 SH       SOLE                  17081                  
GREAT LAKES CHEM CORP          COM              390568103   220390  4081300 SH       SOLE                4081300                  
HEILIG MEYERS CO               COM              422893107    39340  2797493 SH       SOLE                2797493                  
HELMERICH & PAYNE INC          COM              423452101   129277  4128600 SH       SOLE                4128600                  
HEWLETT PACKARD CO             COM              428236103  1186381 18720000 SH       SOLE               18720000                  
HON INDS INC                   COM              438092108   211944  5767200 SH       SOLE                5767200                  
HUMAN GENOME SCIENCES INC      COM              444903108     3981   100000 SH       SOLE                 100000                  
IDAHO POWER CO                 COM              451380109    53094  1408800 SH       SOLE                1408800                  
ILLINOIS SUPERCONDUCTOR CORP   COM              452284102      338   225000 SH       SOLE                 225000                  
ILLINOIS TOOL WKS INC          COM              452308109   630621  9739300 SH       SOLE                9739300                  
IMATION CORP                   COM              45245A107     8606   465200 SH       SOLE                 465200                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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    25668   535450 SH       SOLE                 535450                  
INTEL CORP                     COM              458140100  1109627 14214600 SH       SOLE               14214600                  
INTERNATIONAL BUSINESS MACHS   COM              459200101   804117  7741196 SH       SOLE                7741196                  
INTERNATIONAL FLAVORS&FRAGRANC COM              459506101   297742  6318100 SH       SOLE                6318100                  
INTUIT                         COM              461202103    22040   455600 SH       SOLE                 455600                  
JOHNSON & JOHNSON              COM              478160104  1252023 17051600 SH       SOLE               17051600                  
JOSTENS INC                    COM              481088102    32815  1367298 SH       SOLE                1367298                  
KLA-TENCORP CORP               COM              482480100    12007   313900 SH       SOLE                 313900                  
KN ENERGY INC                  COM              482620101   138334  2342165 SH       SOLE                2342165                  
KELLOGG CO                     COM              487836108   399770  9270000 SH       SOLE                9270000                  
KIMBERLY CLARK CORP            COM              494368103    60150  1200000 SH       SOLE                1200000                  
KIMCO REALTY CORP              COM              49446R109    15034   425000 SH       SOLE                 425000                  
KUBOTA CORP                    ADR              501173207     1276    23200 SH       SOLE                  23200                  
LATTICE SEMICONDUCTOR CORP     COM              518415104    83586  1625000 SH       SOLE                1625000                  
LEE ENTERPRISES INC            COM              523768109     7531   224400 SH       SOLE                 224400                  
LEGGETT & PLATT INC            COM              524660107    10288   200000 SH       SOLE                 200000                  
LIFE TECHNOLOGIES INC          COM              532177201    11342   294610 SH       SOLE                 294610                  
LILLY ELI & CO                 COM              532457108  1099777 18444900 SH       SOLE               18444900                  
LINEAR TECHNOLOGY CORP         COM              535678106   239182  3466400 SH       SOLE                3466400                  
LOUISIANA PAC CORP             COM              546347105    54323  2336454 SH       SOLE                2336454                  
LUCENT TECHNOLOGIES INC        COM              549463107   316162  2472432 SH       SOLE                2472432                  
MBNA CORP                      COM              55262L100   354291  9892950 SH       SOLE                9892950                  
MCI COMMUNICATIONS CORP        COM              552673105   518712 10479000 SH       SOLE               10479000                  
MANPOWER INC                   COM              56418H100   248710  6160000 SH       SOLE                6160000                  
MCCORMICK & CO INC             COM NON VTG      579780206   130935  4060000 SH       SOLE                4060000                  
MCDONALDS CORP                 COM              580135101   126798  2113300 SH       SOLE                2113300                  
MEDTRONIC INC                  COM              585055106    87388  1684600 SH       SOLE                1684600                  
MERCK & CO INC                 COM              589331107   907401  7078300 SH       SOLE                7078300                  
MICROSOFT CORP                 COM              594918104   153333  1713200 SH       SOLE                1713200                  
MICROFIELD GRAPHICS INC        COM              59506W104     3353   410348 SH       SOLE                 410348                  
MINERALS TECHNOLOGIES INC      COM              603158106    29194   579525 SH       SOLE                 579525                  
MINNESOTA MNG & MFG CO         COM              604059105   446575  4906900 SH       SOLE                4906900                  
MORGAN J P & CO INC            COM              616880100   292922  2180900 SH       SOLE                2180900                  
MOTOROLA INC                   COM              620076109   277762  4573000 SH       SOLE                4573000                  
NEWHALL LAND & FARMING CO CAL  DEPOSITARY REC   651426108   108824  3400758 SH       SOLE                3400758                  
NEWMONT MINING CORP            COM              651639106    64496  2110241 SH       SOLE                2110241                  
NORTHERN TELECOM LTD           COM              665815106   255662  3956084 SH       SOLE                3956084                  
NORTHERN TR CORP               COM              665859104    53200   711700 SH       SOLE                 711700                  
NORWEST CORP                   COM              669380107   457089 10997600 SH       SOLE               10997600                  
NUCOR CORP                     COM              670346105   388541  7137400 SH       SOLE                7137400                  
ORACLE CORP                    COM              68389X105    13704   434200 SH       SOLE                 434200                  
OSMONICS INC                   COM              688350107    16015   966937 SH       SOLE                 966937                  
PNC BK CORP                    COM              693475105   337748  5635000 SH       SOLE                5635000                  
PACIFIC CENTY FINL CORP        COM              694058108    97037  4075078 SH       SOLE                4075078                  
PACIFICORP                     COM              695114108   133514  5421908 SH       SOLE                5421908                  
PALL CORP                      COM              696429307   102958  4788700 SH       SOLE                4788700                  
PENFORD CORP                   COM              707051108     2705    77850 SH       SOLE                  77850                  
PENNZOIL CO                    COM              709903108   222592  3444372 SH       SOLE                3444372                  
PHARMACIA & UPJOHN INC         COM              716941109    76125  1740000 SH       SOLE                1740000                  
PFIZER INC                     COM              717081103  2469738 24774800 SH       SOLE               24774800                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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   299079  3065500 SH       SOLE                3065500                  
PITTWAY CORP DEL               COM              725790109     4011    57300 SH       SOLE                  57300                  
PITTWAY CORP DEL               CL A             725790208    56135   779649 SH       SOLE                 779649                  
POGO PRODUCING CO              COM              730448107   175263  5520077 SH       SOLE                5520077                  
POLAROID CORP                  COM              731095105    64256  1460362 SH       SOLE                1460362                  
POPULAR INC                    COM              733174106   171347  2919642 SH       SOLE                2919642                  
PRECISION CASTPARTS CORP       COM              740189105    90622  1531100 SH       SOLE                1531100                  
PROCTER & GAMBLE CO            COM              742718109    70724   838200 SH       SOLE                 838200                  
QUEST DIAGNOSTICS INC          COM              74834L100    20603  1225512 SH       SOLE                1225512                  
RAYCHEM CORP DEL               COM              754603108   225423  5423700 SH       SOLE                5423700                  
REUTERS GROUP PLC              SPONSORED ADR    76132M102   261895  4056487 SH       SOLE                4056487                  
RHEOMETRICS SCIENTIFIC INC     COM              762073104      239   239048 SH       SOLE                 239048                  
RIO ALGOM LTD                  COM              766889109    32876  1741800 SH       SOLE                1741800                  
RIO TINTO PLC                  SPONSORED ADR    767204100   124579  2267655 SH       SOLE                2267655                  
ROGERS CORP                    COM              775133101    16600   400000 SH       SOLE                 400000                  
ROYAL DUTCH PETE CO            NY REG GLD1.25   780257804   100848  1775100 SH       SOLE                1775100                  
RUBBERMAID INC                 COM              781088109   281877  9890400 SH       SOLE                9890400                  
SBC COMMUNICATIONS INC         COM              78387G103   608176 14011830 SH       SOLE               14011830                  
ST JOE CORP                    COM              790148100    42478  1263300 SH       SOLE                1263300                  
SARA LEE CORP                  COM              803111103   186121  3014400 SH       SOLE                3014400                  
SIGMA ALDRICH CORP             COM              826552101   261119  7009880 SH       SOLE                7009880                  
SMITHKLINE BEECHAM PLC         ADR REP ORD      832378301   125375  2000000 SH       SOLE                2000000                  
SOUTHERN CO                    COM              842587107    86349  3118700 SH       SOLE                3118700                  
SOUTHTRUST CORP                COM              844730101   292533  6985837 SH       SOLE                6985837                  
SOUTHWESTERN ENERGY CO         COM              845467109      340    32000 SH       SOLE                  32000                  
SPRINT CORP                    COM              852061100   101531  1500000 SH       SOLE                1500000                  
STAR TECHNOLOGIES INC          COM              855193108     1058   967334 SH       SOLE                 967334                  
STEEL DYNAMICS INC             COM              858119100     9637   453500 SH       SOLE                 453500                  
STEELCASE INC                  CL A             858155203    16564   453800 SH       SOLE                 453800                  
STERICYCLE INC                 COM              858912108     7719   518900 SH       SOLE                 518900                  
SUNTRUST BKS INC               COM              867914103   452929  6009000 SH       SOLE                6009000                  
SYSCO CORP                     COM              871829107    31262  1220000 SH       SOLE                1220000                  
TCF FINL CORP                  COM              872275102    21394   630400 SH       SOLE                 630400                  
TECO ENERGY INC                COM              872375100   115732  4096700 SH       SOLE                4096700                  
TMBR/SHARP DRILLING INC        COM              87257P101     2300   200000 SH       SOLE                 200000                  
TECUMSEH PRODS CO              CL B             878895101     5936   105300 SH       SOLE                 105300                  
TECUMSEH PRODS CO              CL A             878895200    16980   315900 SH       SOLE                 315900                  
TELE DANMARK A/S               SPNSR ADR CL B   879242105    43380   950800 SH       SOLE                 950800                  
TELEFONOS DE MEXICO S A        SP ADR REP ORD   879403780    16067   285000 SH       SOLE                 285000                  
TEMPLE INLAND INC              COM              879868107    66369  1068316 SH       SOLE                1068316                  
TENNANT CO                     COM              880345103    17190   418000 SH       SOLE                 418000                  
TEXAS UTILS CO                 COM              882848104   210143  5345466 SH       SOLE                5345466                  
360 COMMUNICATIONS CO          COM              885571109    15625   500000 SH       SOLE                 500000                  
US BANCORP DEL                 COM              902973106    52829   423478 SH       SOLE                 423478                  
UNILEVER N V                   NEW YORK SHS     904784501    50747   739500 SH       SOLE                 739500                  
VWR SCIENTIFIC PRODS CORP      COM              918435108     3789   103800 SH       SOLE                 103800                  
VALLEY NATL BANCORP            COM              919794107    22356   560640 SH       SOLE                 560640                  
VENTANA MED SYS INC            COM              92276H106    14638   549800 SH       SOLE                 549800                  
VIKING OFFICE PRODS            COM              926913104    33902  1458172 SH       SOLE                1458172                  
VLASIC FOODS INTL INC          COM              928559103    13230   515080 SH       SOLE                 515080                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<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
                                                                                                                                  
VULCAN MATLS CO                COM              929160109   358897  3277600 SH       SOLE                3277600                  
WACHOVIA CORP                  COM              929771103   450526  5312032 SH       SOLE                5312032                  
WAL MART STORES INC            COM              931142103   234611  4617200 SH       SOLE                4617200                  
WASHINGTON FED INC             COM              938824109    36794  1325918 SH       SOLE                1325918                  
WATSON PHARMACEUTICALS INC     COM              942683103    23760   660000 SH       SOLE                 660000                  
WELLS FARGO & CO DEL           COM              949740104   585194  1766624 SH       SOLE                1766624                  
WESTCORP INC                   COM              957907108    20392  1217445 SH       SOLE                1217445                  
WESTVACO CORP                  COM              961548104    51858  1686450 SH       SOLE                1686450                  
WILMINGTON TRUST CORP          COM              971807102    16395   247000 SH       SOLE                 247000                  
WISCONSIN ENERGY CORP          COM              976657106    56020  1825500 SH       SOLE                1825500                  
WORLDCOM INC GA                COM              98155K102    49737  1155000 SH       SOLE                1155000                  
REPORT SUMMARY                211 DATA RECORDS            38508912            0 OTHER MANAGERS ON WHOSE BEHALF REPORT IS FILED    
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