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SECURITIES AND EXCHANGE COMMISSION
FORM 13F-E
Report for the Calendar Year or Quarter Ended: 12/31/97
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 02/12/98
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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 463020 11090296 SH SOLE 11090296
AT&T CORP COM 001957109 467703 7628995 SH SOLE 7628995
ATL ULTRASOUND INC COM 00207N100 15453 335935 SH SOLE 335935
ABB AB SPONSORED ADR 00256Q103 37221 316100 SH SOLE 316100
ABBOTT LABS COM 002824100 387341 5913600 SH SOLE 5913600
AGOURON PHARMACEUTICALS INC COM 008488108 14688 500000 SH SOLE 500000
AIR PRODS & CHEMS INC COM 009158106 600326 7298800 SH SOLE 7298800
AIRTOUCH COMMUNICATIONS INC COM 00949T100 234926 5652348 SH SOLE 5652348
ALLEGIANCE CORP COM 017475104 45096 1272578 SH SOLE 1272578
ALLERGAN INC COM 018490102 132377 3944200 SH SOLE 3944200
AMERITECH CORP NEW COM 030954101 358227 4450020 SH SOLE 4450020
AMGEN INC COM 031162100 30039 555000 SH SOLE 555000
AMOCO CORP COM 031905102 258076 3031728 SH SOLE 3031728
AMSOUTH BANCORPORATION COM 032165102 138000 2540850 SH SOLE 2540850
APTARGROUP INC COM 038336103 55309 996566 SH SOLE 996566
ARCHER DANIELS MIDLAND CO COM 039483102 919831 42412933 SH SOLE 42412933
ATLANTIC RICHFIELD CO COM 048825103 160251 2000000 SH SOLE 2000000
BRE PROPERTIES INC CL A 05564E106 99410 3518958 SH SOLE 3518958
BALLARD MED PRODS COM 058566100 24656 1016751 SH SOLE 1016751
BANC ONE CORP COM 059438101 278907 5135247 SH SOLE 5135247
BANKAMERICA CORP COM 066050105 32660 447400 SH SOLE 447400
BARRETT RES CORP COM PAR $0.01 068480201 75436 2493733 SH SOLE 2493733
BATTLE MTN GOLD CO COM 071593107 20500 3565350 SH SOLE 3565350
BATTLE MTN GOLD CO PFD CONV $3.25 071593305 2250 50000 SH SOLE 50000
BAXTER INTL INC COM 071813109 320928 6362897 SH SOLE 6362897
BELL ATLANTIC CORP COM 077853109 259350 2850000 SH SOLE 2850000
BELLSOUTH CORP COM 079860102 41897 744000 SH SOLE 744000
BETZDEARBORN INC COM 087779104 30531 500000 SH SOLE 500000
BIOMET INC COM 090613100 162002 6322000 SH SOLE 6322000
BOSTON SCIENTIFIC CORP COM 101137107 50540 1101688 SH SOLE 1101688
BROKEN HILL PROPRIETARY LTD SPONSORED ADR 112169602 35755 1932700 SH SOLE 1932700
BROWN TOM INC COM NEW 115660201 50435 2620000 SH SOLE 2620000
CMS ENERGY CORP COM 125896100 13219 300000 SH SOLE 300000
CABLE & WIRELESS PUB LTD CO SPONSORED ADR 126830207 13080 481100 SH SOLE 481100
CAMPBELL SOUP CO COM 134429109 297950 5126000 SH SOLE 5126000
CANWEST GLOBAL COMMUNICATIONS SHS NON VTG 138906300 28814 1600800 SH SOLE 1600800
CARDIOTHORACIC SYS INC COM 141907105 1898 345000 SH SOLE 345000
CATERPILLAR INC DEL COM 149123101 373941 7709400 SH SOLE 7709400
CENTRAL & SOUTH WEST CORP COM 152357109 128737 4757000 SH SOLE 4757000
CENTRAL LA ELEC INC COM NEW 153897608 31067 959600 SH SOLE 959600
CHECKPOINT SYS INC COM 162825103 10500 600000 SH SOLE 600000
CHEVRON CORPORATION COM 166751107 558311 7250800 SH SOLE 7250800
CHIRON CORP COM 170040109 41401 2435328 SH SOLE 2435328
CISCO SYS INC COM 17275R102 19200 344400 SH SOLE 344400
CLINTRIALS RESEARCH INC COM 188767107 1772 225000 SH SOLE 225000
COCA COLA CO COM 191216100 341693 5124000 SH SOLE 5124000
COEUR D ALENE MINES CORP IDAHO COM 192108108 2172 242970 SH SOLE 242970
COLGATE PALMOLIVE CO COM 194162103 43762 595400 SH SOLE 595400
COMPAQ COMPUTER CORP COM 204493100 21753 385000 SH SOLE 385000
<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
CONSOLIDATED PAPERS INC COM 209759109 10675 200000 SH SOLE 200000
CORNING INC COM 219350105 363979 9804100 SH SOLE 9804100
COVANCE INC COM 222816100 48714 2451025 SH SOLE 2451025
CYPRUS AMAX MINERALS CO COM 232809103 1732 112628 SH SOLE 112628
DEERE & CO COM 244199105 17475 300000 SH SOLE 300000
DELTA & PINE LD CO COM 247357106 17351 568886 SH SOLE 568886
DELTA AIR LINES INC DEL COM 247361108 102233 859100 SH SOLE 859100
DEUTSCH TELEKOM AG SPONSORED ADR 251566105 16610 891800 SH SOLE 891800
DIEBOLD INC COM 253651103 28076 554600 SH SOLE 554600
DISNEY WALT CO COM 254687106 1233379 12457561 SH SOLE 12457561
DONALDSON INC COM 257651109 34101 756750 SH SOLE 756750
DONNELLEY R R & SONS CO COM 257867101 103324 2773800 SH SOLE 2773800
DOW CHEM CO COM 260543103 201885 1989000 SH SOLE 1989000
DU PONT E I DE NEMOURS & CO COM 263534109 47533 791400 SH SOLE 791400
DUKE ENERGY CORP COM 264399106 248911 4495000 SH SOLE 4495000
ELCOR CORP COM 284443108 18000 750000 SH SOLE 750000
ELECTRONIC DATA SYS NEW COM 285661104 61860 1407900 SH SOLE 1407900
EMERSON ELEC CO COM 291011104 137743 2440620 SH SOLE 2440620
ENERGY GROUP PLC SPONSORED ADR 292691102 26738 600000 SH SOLE 600000
ENGELHARD CORP COM 292845104 168031 9670893 SH SOLE 9670893
EQUITABLE RES INC COM 294549100 54519 1541150 SH SOLE 1541150
ERICSSON L M TEL CO ADR CL B SEK10 294821400 226199 6062300 SH SOLE 6062300
EXXON CORP COM 302290101 769734 12579900 SH SOLE 12579900
FPL GROUP INC COM 302571104 55672 940600 SH SOLE 940600
FASTENAL CO COM 311900104 11284 295000 SH SOLE 295000
FIFTH THIRD BANCORP COM 316773100 17474 213750 SH SOLE 213750
FINOVA GROUP INC COM 317928109 13038 262400 SH SOLE 262400
FIRST CHICAGO NBD CORP COM 31945A100 289211 3463601 SH SOLE 3463601
FIRST EMPIRE ST CORP COM 320076102 142151 305700 SH SOLE 305700
FIRST SEC CORP DEL COM 336294103 48409 1156050 SH SOLE 1156050
FIRST VA BANKS INC COM 337477103 57063 1104000 SH SOLE 1104000
GATX CORP COM 361448103 213718 2945300 SH SOLE 2945300
GTE CORP COM 362320103 21966 420400 SH SOLE 420400
GENERAL ELEC CO COM 369604103 612062 8341568 SH SOLE 8341568
GILLETTE CO COM 375766102 209914 2090000 SH SOLE 2090000
GOLDEN WEST FINL CORP DEL COM 381317106 198109 2025400 SH SOLE 2025400
GRANITE BROADCASTING CORP COM 387241102 155 17081 SH SOLE 17081
GREAT LAKES CHEM CORP COM 390568103 182263 4081300 SH SOLE 4081300
HEILIG MEYERS CO COM 422893107 33570 2797493 SH SOLE 2797493
HELMERICH & PAYNE INC COM 423452101 140114 2064300 SH SOLE 2064300
HEWLETT PACKARD CO COM 428236103 1167938 18720000 SH SOLE 18720000
HON INDS INC COM 438092108 170133 2883600 SH SOLE 2883600
HUMAN GENOME SCIENCES INC COM 444903108 3975 100000 SH SOLE 100000
IDAHO POWER CO COM 451380109 53006 1408800 SH SOLE 1408800
ILLINOIS SUPERCONDUCTOR CORP COM 452284102 408 225000 SH SOLE 225000
ILLINOIS TOOL WKS INC COM 452308109 585576 9739300 SH SOLE 9739300
IMATION CORP COM 45245A107 7444 465200 SH SOLE 465200
IMMUNE RESPONSE CORP DEL COM 45252T106 9878 887872 SH SOLE 887872
INGERSOLL RAND CO COM 456866102 21269 525150 SH SOLE 525150
INTEL CORP COM 458140100 982474 13985400 SH SOLE 13985400
<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
INTERNATIONAL BUSINESS MACHS COM 459200101 804585 7690396 SH SOLE 7690396
INTERNATIONAL FLAVORS&FRAGRANC COM 459506101 325382 6318100 SH SOLE 6318100
INTUIT COM 461202103 18794 455600 SH SOLE 455600
JOHNSON & JOHNSON COM 478160104 1123274 17051600 SH SOLE 17051600
JOSTENS INC COM 481088102 31533 1367298 SH SOLE 1367298
KN ENERGY INC COM 482620101 103678 1919965 SH SOLE 1919965
KELLOGG CO COM 487836108 460024 9270000 SH SOLE 9270000
KIMBERLY CLARK CORP COM 494368103 59176 1200000 SH SOLE 1200000
KIMCO REALTY CORP COM 49446R109 14981 425000 SH SOLE 425000
KUBOTA CORP ADR 501173207 1253 23200 SH SOLE 23200
LATTICE SEMICONDUCTOR CORP COM 518415104 76984 1625000 SH SOLE 1625000
LEE ENTERPRISES INC COM 523768109 6634 224400 SH SOLE 224400
LEGGETT & PLATT INC COM 524660107 8375 200000 SH SOLE 200000
LIFE TECHNOLOGIES INC COM 532177201 9796 294610 SH SOLE 294610
LILLY ELI & CO COM 532457108 1280209 18387200 SH SOLE 18387200
LINEAR TECHNOLOGY CORP COM 535678106 199751 3466400 SH SOLE 3466400
LOUISIANA PAC CORP COM 546347105 44393 2336454 SH SOLE 2336454
LUCENT TECHNOLOGIES INC COM 549463107 197486 2472432 SH SOLE 2472432
MBNA CORP COM 55262L100 266497 9757350 SH SOLE 9757350
MCI COMMUNICATIONS CORP COM 552673105 448632 10479000 SH SOLE 10479000
MANPOWER INC COM 56418H100 217140 6160000 SH SOLE 6160000
MCCORMICK & CO INC COM NON VTG 579780206 113680 4060000 SH SOLE 4060000
MCDONALDS CORP COM 580135101 98514 2063100 SH SOLE 2063100
MEDTRONIC INC COM 585055106 87023 1657800 SH SOLE 1657800
MERCK & CO INC COM 589331107 745247 7030000 SH SOLE 7030000
MICROSOFT CORP COM 594918104 91587 708600 SH SOLE 708600
MICROFIELD GRAPHICS INC COM 59506W104 795 410348 SH SOLE 410348
MINERALS TECHNOLOGIES INC COM 603158106 26332 579525 SH SOLE 579525
MINNESOTA MNG & MFG CO COM 604059105 402672 4906900 SH SOLE 4906900
MORGAN J P & CO INC COM 616880100 241845 2142600 SH SOLE 2142600
MOTOROLA INC COM 620076109 261470 4573000 SH SOLE 4573000
NCR CORP NEW COM 62886E108 13261 476811 SH SOLE 476811
NEWHALL LAND & FARMING CO CAL DEPOSITARY REC 651426108 102023 3400758 SH SOLE 3400758
NEWMONT MINING CORP COM 651639106 59959 2041141 SH SOLE 2041141
NORTHERN TELECOM LTD COM 665815106 175551 1978042 SH SOLE 1978042
NORTHERN TR CORP COM 665859104 49641 711700 SH SOLE 711700
NORWEST CORP COM 669380107 426046 10997600 SH SOLE 10997600
NUCOR CORP COM 670346105 344826 7137400 SH SOLE 7137400
ORACLE CORP COM 68389X105 5255 235500 SH SOLE 235500
OSMONICS INC COM 688350107 15290 966937 SH SOLE 966937
PNC BK CORP COM 693475105 320843 5635000 SH SOLE 5635000
PACIFIC CENTY FINL CORP COM 694058108 100858 4075078 SH SOLE 4075078
PACIFICORP COM 695114108 148087 5421908 SH SOLE 5421908
PALL CORP COM 696429307 99067 4788700 SH SOLE 4788700
PENFORD CORP COM 707051108 2725 77850 SH SOLE 77850
PENNZOIL CO COM 709903108 230127 3444372 SH SOLE 3444372
PHARMACIA & UPJOHN INC COM 716941109 63728 1740000 SH SOLE 1740000
PFIZER INC COM 717081103 1847271 24774800 SH SOLE 24774800
PIONEER HI BRED INTL INC COM 723686101 328775 3065500 SH SOLE 3065500
PITTWAY CORP DEL COM 725790109 3950 57300 SH SOLE 57300
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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
PITTWAY CORP DEL CL A 725790208 54283 779649 SH SOLE 779649
POGO PRODUCING CO COM 730448107 162842 5520077 SH SOLE 5520077
POLAROID CORP COM 731095105 71101 1460362 SH SOLE 1460362
POPULAR INC COM 733174106 137073 2769150 SH SOLE 2769150
PRECISION CASTPARTS CORP COM 740189105 92344 1531100 SH SOLE 1531100
PROCTER & GAMBLE CO COM 742718109 48254 604600 SH SOLE 604600
QUEST DIAGNOSTICS INC COM 74834L100 20681 1225512 SH SOLE 1225512
RAYCHEM CORP DEL COM 754603108 229842 5337400 SH SOLE 5337400
REUTERS HOLDING PLC ADR B 761324201 275521 4158800 SH SOLE 4158800
RHEOMETRICS SCIENTIFIC INC COM 762073104 224 239048 SH SOLE 239048
POPULAR INC COM 766174106 7449 150492 SH SOLE 150492
RIO ALGOM LTD COM 766889109 29611 1741800 SH SOLE 1741800
RIO TINTO PLC SPONSORED ADR 767204100 117351 2267655 SH SOLE 2267655
ROGERS CORP COM 775133101 16350 400000 SH SOLE 400000
ROYAL DUTCH PETE CO NY REG GLD1.25 780257804 52996 978000 SH SOLE 978000
RUBBERMAID INC COM 781088109 247260 9890400 SH SOLE 9890400
SBC COMMUNICATIONS INC COM 78387G103 513183 7005915 SH SOLE 7005915
ST JOE CORP COM 790148100 38110 421100 SH SOLE 421100
SARA LEE CORP COM 803111103 169748 3014400 SH SOLE 3014400
SEQUENT COMPUTER SYS INC COM 817338106 4985 249250 SH SOLE 249250
SIGMA ALDRICH CORP COM 826552101 278644 7009880 SH SOLE 7009880
SMITHKLINE BEECHAM PLC ADR REP ORD 832378301 102875 2000000 SH SOLE 2000000
SOUTHERN CO COM 842587107 80696 3118700 SH SOLE 3118700
SOUTHTRUST CORP COM 844730101 281487 4437225 SH SOLE 4437225
SOUTHWESTERN ENERGY CO COM 845467109 12875 1000000 SH SOLE 1000000
SPRINT CORP COM 852061100 87938 1500000 SH SOLE 1500000
STAR TECHNOLOGIES INC COM 855193108 786 967334 SH SOLE 967334
STEEL DYNAMICS INC COM 858119100 7256 453500 SH SOLE 453500
STERICYCLE INC COM 858912108 13711 937522 SH SOLE 937522
SUNTRUST BKS INC COM 867914103 428892 6009000 SH SOLE 6009000
SYSCO CORP COM 871829107 26258 576300 SH SOLE 576300
TCF FINL CORP COM 872275102 21394 630400 SH SOLE 630400
TECO ENERGY INC COM 872375100 115219 4096700 SH SOLE 4096700
TMBR/SHARP DRILLING INC COM 87257P101 3650 200000 SH SOLE 200000
TECUMSEH PRODS CO CL B 878895101 5147 105300 SH SOLE 105300
TECUMSEH PRODS CO CL A 878895200 15400 315900 SH SOLE 315900
TELEFONOS DE MEXICO S A SP ADR REP ORD 879403780 15978 285000 SH SOLE 285000
TEMPLE INLAND INC COM 879868107 55886 1068316 SH SOLE 1068316
TENNANT CO COM 880345103 15205 418000 SH SOLE 418000
TEXAS UTILS CO COM 882848104 221846 5345466 SH SOLE 5345466
360 COMMUNICATIONS CO COM 885571109 10094 500000 SH SOLE 500000
US BANCORP DEL COM 902973106 47403 423478 SH SOLE 423478
UNILEVER N V NEW YORK SHS 904784501 37038 593200 SH SOLE 593200
VWR SCIENTIFIC PRODS CORP COM 918435108 2932 103800 SH SOLE 103800
VALLEY NATL BANCORP COM 919794107 22040 560640 SH SOLE 560640
VENTANA MED SYS INC COM 92276H106 12403 813280 SH SOLE 813280
VIKING OFFICE PRODS COM 926913104 31806 1458172 SH SOLE 1458172
VULCAN MATLS CO COM 929160109 334725 3277600 SH SOLE 3277600
WACHOVIA CORP COM 929771103 430939 5312032 SH SOLE 5312032
WAL MART STORES INC COM 931142103 174321 4420200 SH SOLE 4420200
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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
WASHINGTON FED INC COM 938824109 37894 1205380 SH SOLE 1205380
WATSON PHARMACEUTICALS INC COM 942683103 21409 660000 SH SOLE 660000
WELLS FARGO & CO DEL COM 949740104 599659 1766624 SH SOLE 1766624
WESTCORP INC COM 957907108 20544 1217445 SH SOLE 1217445
WESTVACO CORP COM 961548104 53018 1686450 SH SOLE 1686450
WILMINGTON TRUST CORP COM 971807102 15407 247000 SH SOLE 247000
WISCONSIN ENERGY CORP COM 976657106 52483 1825500 SH SOLE 1825500
WORLDCOM INC GA COM 98155K102 34939 1155000 SH SOLE 1155000
REPORT SUMMARY 208 DATA RECORDS 35065710 0 OTHER MANAGERS ON WHOSE BEHALF REPORT IS FILED
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