STEWART & STEVENSON SERVICES INC
8-K, 1995-05-09
ENGINES & TURBINES
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                        ________________________________

                                    FORM 8-K


                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

        DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):  MAY 3, 1995


                        ________________________________


                       STEWART & STEVENSON SERVICES, INC.
             (Exact name of registrant as specified in its charter)

              TEXAS                        0-8493              74-1051605
  (State or other jurisdiction        (Commission File      (I.R.S. Employer
of incorporation or organization)         Number)          Identification No.)


          2707 NORTH LOOP WEST
             HOUSTON, TEXAS                                         77008
(Address of principal executive offices)                          (Zip code)


       Registrant's telephone number, including area code: (713) 868-7700


Item 5.  Other Events.
_______  _____________

     On May 3, 1995, a federal grand jury in Houston, Texas returned an
indictment accusing Stewart & Stevenson Services, Inc. (the "Company"), Bob H.
O'Neal, a director and the President of the Company, and others of conspiracy,
fraud and making false statements in connection with a change order under a 1987
subcontract to supply diesel generator sets for installation in Saudi Arabia, 
The Company and Mr. O'Neal have denied committing any violation of law.

                                    SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                             STEWART & STEVENSON SERVICES, INC.

                                                      /s/ Bob H. O'Neal

Date:  May 5, 1995                           By: ______________________________
                                                        Bob H. O'Neal
                                                     President and Chief
                                                      Executive Officer


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