NICHOLAS II INC
NSAR-B, 1998-11-27
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<PAGE>      PAGE  1
000 B000000 09/30/98
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001 A000000 NICHOLAS II, INC.
001 B000000 811-3851
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002 A000000 700 NORTH WATER STREET, SUITE 1010
002 B000000 MILWAUKEE
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012 A000001 FIRSTAR MUTUAL FUND SERVICES, LLC
012 B000001 85-410
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015 A000001 FIRSTAR BANK MILWAUKEE, N.A.
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020 A000001 J. C. BRADFORD CO.
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020 B000001 62-0674123
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020 A000002 DONALDSON, LUFKIN & JENRETTE
020 B000002 13-2741729
020 C000002     31
020 A000003 LYNCH JONES
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020 C000003     30
020 A000004 SALOMON SMITH BARNEY, INC.
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020 A000005 MONTGOMERY SECURITIES
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020 A000006 CLEARY GULL
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020 A000008 MORGAN STANLEY DEAN WITTER DISCOVER
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020 A000009 GOLDMAN SACHS & CO.
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<PAGE>      PAGE  7
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SIGNATURE   THOMAS J. SAEGER                             
TITLE       EXEC VICE PRESIDENT 
 


<TABLE> <S> <C>

<ARTICLE> 6
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          SEP-30-1998
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                        614409477
<INVESTMENTS-AT-VALUE>                       953573538
<RECEIVABLES>                                 10741900
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                               964315438
<PAYABLE-FOR-SECURITIES>                       3651536
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       633977
<TOTAL-LIABILITIES>                            4285513
<SENIOR-EQUITY>                                      0
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<SHARES-COMMON-STOCK>                         27606085
<SHARES-COMMON-PRIOR>                         24462981
<ACCUMULATED-NII-CURRENT>                      3168886
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                      100475226
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     339026302
<NET-ASSETS>                                 960029925
<DIVIDEND-INCOME>                              7618713
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<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 6365353
<NET-INVESTMENT-INCOME>                        3535098
<REALIZED-GAINS-CURRENT>                     100477543
<APPREC-INCREASE-CURRENT>                  (122367451)
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<DISTRIBUTIONS-OTHER>                                0
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<SHARES-REINVESTED>                            3389898
<NET-CHANGE-IN-ASSETS>                      (34350700)
<ACCUMULATED-NII-PRIOR>                        1615595
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<OVERDISTRIB-NII-PRIOR>                              0
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<PER-SHARE-NAV-BEGIN>                            40.65
<PER-SHARE-NII>                                    .13
<PER-SHARE-GAIN-APPREC>                          (.69)
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<EXPENSE-RATIO>                                    .59
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>


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