SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C. 20549

                                FORM 10-Q

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


For the quarterly period ended  July 31, 1998    Commission File Number  1-566

                          GREIF BROS. CORPORATION
            (Exact name of registrant as specified in its charter)

                 Delaware                            31-4388903
        (State or other jurisdiction of           (I.R.S. Employer
         incorporation or organization)          Identification No.)

       425 Winter Road, Delaware, Ohio                 43015
    (Address of principal executive offices)         (Zip Code)

       Registrant's telephone number, including area code  (740) 549-6000

                               Not Applicable
      Former name, former address and former fiscal year, if changed since
      last report.

     Indicated by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities  Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes _X_.  No ___.

     Indicate the number of shares outstanding of each of the issuer's classes 
of common stock, as of the close of the period covered by this report:

                 Class A Common Stock -- 10,908,672 shares
                 Class B Common Stock -- 12,001,793 shares 

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

               GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
               (Dollars in thousands, except per share amounts)


                              Three Months Ended,           Nine Months Ended 
                                   July 31,                      July 31,
                              1998           1997           1998         1997
                                                         
Net sales                 $218,631       $167,062       $579,597     $471,961
Other income:
 Gain on timber sales       10,934          3,781         17,103        7,378
 Interest and other            974          1,698          5,800        8,814
                           230,539        172,541        602,500      488,153

Costs and expenses
 (including depreciation
  of $28,361 in 1998 and  
  $22,749 in 1997):

  Cost of products sold    180,249        144,869        472,058      411,119
  Selling, general and
   administrative           24,248         19,275         65,844       54,299
  Restructuring charge      27,461             --         27,461           --
  Interest                   4,478          1,063          7,909        2,736

                           236,436        165,207        573,272      468,154

Income (loss) before
 income taxes               (5,897)         7,334         29,228       19,999
Income taxes                (1,430)         2,652         11,487        7,252
Net income (loss)        $  (4,467)    $    4,682      $  17,741     $ 12,747

Net income (loss) per share:

  	Based on the assumption that earnings were allocated to Class A and Class
 B Common Stock to the extent that dividends were actually paid for the year
 and the remainder were allocated as they would be received by shareholders
 in the event of liquidation, that is, equally to Class A and Class B shares,
 share and share alike.

    Basic and Diluted:

    Class A Common Stock   $(0.23)         $0.18          $0.68         $0.44
    Class B Common Stock   $(0.17)         $0.24          $0.85         $0.67

  	Due to the special characteristics of the Company's two classes of stock
 (see Note 2), earnings per share can be calculated upon the basis of varying
 assumptions, none of which, in the opinion of management, would be free from
 the claim that it fails fully and accurately to represent the true interest 
 of the shareholders of each class of stock and in the retained earnings.

        See accompanying Notes to Consolidated Financial Statements.



              GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
                        CONSOLIDATED BALANCE SHEETS
                           (Dollars in thousands)

ASSETS

                                                  July 31,        October 31,
                                                    1998             1997
                                                             
CURRENT ASSETS   
    Cash and cash equivalents                    $  63,442         $  17,719
    Canadian government securities                   6,957             7,533
    Trade accounts receivable - less allowance
     of $1,032 for doubtful items ($847 in 1997)   107,650            81,582
    Inventories                                     68,934            44,892
    Prepaid expenses and other                      22,843            21,192

           Total current assets                    269,826           172,918

LONG-TERM ASSETS
    Goodwill - less amortization                   124,008            17,352
    Other long-term assets                          30,102            22,022

                                                   154,110            39,374

PROPERTIES, PLANTS AND EQUIPMENT - at cost
    Timber properties - less depletion               7,799             6,884
    Land                                            16,409            11,139
    Buildings                                      155,634           139,713
    Machinery, equipment, etc.                     504,603           424,177
    Construction in progress                        19,335            17,546
    Less accumulated depreciation                 (285,716)         (261,662)

                                                   418,064           337,797

                                                 $ 842,000         $ 550,089

          See accompanying Notes to Consolidated Financial Statements.



              GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
                       CONSOLIDATED BALANCE SHEETS
                         (Dollars in thousands)

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                   July 31,       October 31,
                                                     1998            1997
                                                             
CURRENT LIABILITIES
  Accounts payable                               $  39,050         $  35,711
  Current portion of long-term obligations              13             8,504
  Accrued payrolls and employee benefits            16,263            13,821
  Restructuring reserve                             37,655                --
  Income taxes                                         213               596
  Other current liabilities                          6,258             1,776

      Total current liabilities                     99,452            60,408

LONG-TERM OBLIGATIONS                              260,324            43,648
DEFERRED INCOME TAXES                               37,190            29,740
OTHER LONG-TERM LIABILITIES                         42,399            16,155

      Total long-term liabilities                  339,913            89,543

SHAREHOLDERS' EQUITY (Note 2)
  Capital stock, without par value                   9,914             9,739
      Class A Common Stock:
        Authorized 32,000,000 shares;
          Issued 21,140,960 shares;
          Outstanding 10,908,672 shares
          (10,900,672 in 1997)
      Class B Common Stock:
        Authorized and issued 17,280,000 shares;
          Outstanding 12,001,793 shares
  Treasury Stock, at cost                          (41,860)          (41,868)
       Class A Common Stock :  10,232,288 shares
          (10,240,288 in 1997)
       Class B Common Stock :    5,278,207 shares
  Retained earnings                                445,004           437,550
  Cumulative translation adjustment                (10,423)           (5,283)

                                                   402,635           400,138
                                    
                                                 $ 842,000         $ 550,089

         See accompanying Notes to Consolidated Financial Statements.



               GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (Dollars in thousands)


    For the nine months ended July 31,             1998           1997
                                                            
Cash flows from operating activities:
    Net income                                     $  17,741      $  12,747
    Adjustments to reconcile net income to net 
      cash provided by operating activities:
        Depreciation, depletion and amortization      31,283         23,771
        Deferred income taxes                          7,478          3,907
        Other - net                                   (8,517)        (6,715)
        Changes in current assets and liabilities, 
           net of effects from acquisitions           17,700         (8,661)

    Net cash provided by operating activities         65,685         25,049

Cash flows from investing activities:
    Acquisitions of companies, net of cash acquired (188,174)        (7,514)
    Disposals of investments in Canadian            
      government securities                              576         11,224
    Purchases of properties, plants and equipment    (25,911)       (34,464)
    Net cash used in investing activities           (213,509)       (30,754)
Cash flows from financing activities:
    Proceeds from long-term debt                     271,000         17,895
    Payments on long-term debt                       (62,815)        (8,804)
    Dividends paid                                   (10,287)       (13,740)
    Other - net                                          183            134
   
    Net cash provided by (used in) financing   
      activities                                     198,081         (4,515)
Foreign currency translation adjustment               (4,534)          (962)
Net increase (decrease) in cash and
 cash equivalents                                     45,723        (11,182)
Cash and cash equivalents at beginning of period      17,719         26,560

Cash and cash equivalents at end of period         $  63,442      $  15,378


         See accompanying Notes to Consolidated Financial Statements.


               GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                JULY 31, 1998


NOTE 1 - BASIS OF PRESENTATION

     The information furnished herein reflects all adjustments which are, in the
opinion of management, necessary for a fair presentation of the consolidated 
balance sheets as of July 31, 1998 and October 31, 1997, the consolidated 
statements of operations for the three and nine month periods ended July 31, 
1998 and 1997, and the consolidated statements of cash flows for the nine month 
periods then ended. The preparation of financial statements in conformity with 
generally accepted accounting principles requires management to make certain 
estimates and assumptions that affect the amounts reported in the financial 
statements and accompanying notes.  Actual amounts could differ from those 
estimates.

     These financial statements should be read in conjunction with the financial
statements and notes thereto included in Greif Bros. Corporation's (the 
"Company's") most recent Annual Report on Form 10-K.

     Certain prior period amounts have been reclassified to conform to the 1998 
presentation.

NOTE 2 - CAPITAL STOCK

     Class A Common Stock is entitled to cumulative dividends of 1 cent a 
share per year after which Class B Common Stock is entitled to non-cumulative 
dividends up to 1/2 cent per share per year.  Further distribution in any year 
must be made in proportion of 1 cent a share for Class A Common Stock to 1 1/2 
cents a share for Class B Common Stock.  The Class A Common Stock shall have no 
voting power nor shall it be entitled to notice of meetings of the stockholders,
all rights to vote and all voting power being vested exclusively in the Class B 
Common Stock unless four cumulative dividends upon the Class A Common 
Stock are in arrears.  There is no cumulative voting.

NOTE 3 - DIVIDENDS PER SHARE

     The following dividends per share were paid during the period indicated:


                                  Three Months Ended        Nine Months Ended
                                      July 31,                  July 31,
                                  1998          1997        1998         1997
                                                             
Class A Common Stock              $0.12         $0.12       $0.36        $0.48
Class B Common Stock              $0.18         $0.18       $0.53        $0.71

NOTE 4 - CALCULATION OF NET INCOME (LOSS) PER SHARE

     During 1998, the Company adopted Statement of Financial Accounting 
Standards (SFAS) No. 128, "Earnings Per Share."  The provisions of SFAS No. 
128 have been retroactively applied to 1997.

     Net income (loss) per share was calculated using the following number of 
shares for the period presented:




                                  Three Months Ended        Nine Months Ended
                                    July 31, 1998:           July 31, 1998:
                                  Basic      Diluted        Basic     Diluted
                                                        
Class A Common Stock         10,906,582   10,906,582   10,904,433  10,968,112
Class B Common Stock         12,001,793   12,001,793   12,001,793  12,001,793

                                  Three Months Ended        Nine Months Ended
                                    July 31, 1997:           July 31, 1997:
                                  Basic      Diluted        Basic     Diluted

Class A Common Stock         10,874,038   10,883,518   10,873,461  10,885,922
Class B Common Stock         12,001,793   12,001,793   12,001,793  12,001,793



The diluted shares assume conversion of stock options.  As the Company 
experienced a net loss for the three months ended July 31, 1998, the assumed 
conversion of stock options has not been reflected in diluted shares
outstanding as the effect would have been antidilutive. There are 164,100 
options that are antidilutive for the three months and nine months ended July
31, 1997.

NOTE 5 - INVENTORIES

     Inventories are comprised principally of raw materials and are stated at
the lower of cost (principally on last-in, first-out basis) or market.
 
NOTE 6 - ACQUISITIONS

     On March 30, 1998, pursuant to the terms of a Stock Purchase Agreement 
between the Company and Sonoco Products Company ("Sonoco"), the Company 
acquired the industrial containers business of Sonoco by purchasing all of the 
outstanding shares of KMI Continental Fibre Drum, Inc., a Delaware corporation 
("KMI"), Sonoco Plastic Drum, Inc., an Illinois corporation ("SPD"), GBC
Holding Co., a Delaware corporation ("GBC Holding"), and Fibro Tambor, S.A.
de C.V., a Mexican corporation ("Fibro Tambor") and the membership interest
of Sonoco in Total Packaging Systems of Georgia, LLC, a Delaware limited
liability company ("TPS").  KMI, SPD, GBC Holding, Fibro Tambor, TPS and
their respective subsidiaries are in the business of manufacturing and selling
plastic drums and fibre drums principally in the United States and Mexico and
refurbishing and reconditioning plastic drums principally in the United States
and Mexico. 

     On March 30, 1998, the Company entered into an agreement with Sonoco to 
acquire its intermediate bulk containers business, which the parties intend to 
finalize as soon as receipt of necessary approvals are obtained.  Pending
receipt of such approvals, the Company will market and sell intermediate bulk
containers for Sonoco under a distributorship agreement.

     As consideration for the shares of KMI, SPD, GBC Holding and Fibro 
Tambor and the membership interest of Sonoco in TPS, the Company paid 
$185,395,000 in cash.

     The acquisition of the industrial containers business of Sonoco has been 
accounted for using the purchase method of accounting and, accordingly, the 
purchase price has been allocated to the assets purchased and liabilities 
assumed based upon the fair values at the date of acquisition.  The excess of
the purchase price over the fair values of the net assets acquired of
$109,090,000 has been recorded as goodwill.  The goodwill is being amortized on
a straight-line basis over twenty-five years based on careful consideration
regarding the age of the acquired companies, their customers and the risk of
obsolescence of their products.  For tax purposes, goodwill is being amortized
over fifteen years.

     The Consolidated Financial Statements include the operating results of the 
acquired businesses from the date of acquisition.  In addition, the income 
resulting from the distributorship agreement relating to the intermediate bulk 
containers business have been included in the Consolidated Financial 
Statements since March 30, 1998. However, these amounts have not been 
reflected in the pro forma figures prior to that time. The following summarized 
pro forma (unaudited) information assumes the acquisition had occurred on 
November 1, 1996 (Dollars in thousands, except per share amounts):



                            For the Three Months       For the Nine Months 
                               Ended July 31,             Ended July 31,
                           1998            1997       1998           1997
                                                         
Net sales                  $218,631        $213,801   $650,435       $606,337

Net income (loss)          $ (4,467)       $  4,650   $ 15,513       $ 11,202

Basic and Diluted Earnings Per Share:

Class A Common Stock       $  (0.23)       $   0.17   $   0.58       $   0.37   
Class B Common Stock       $  (0.17)       $   0.23   $   0.75       $   0.60



The above amounts reflect adjustments for interest expense related to the 
incremental debt issued for the purchase, amortization of goodwill and 
depreciation expense on the revalued property, plant and equipment.

     The pro forma information, as presented above, is not necessarily 
indicative of the results which would have been obtained had the transactions 
occurred at November 1, 1996, nor are they necessarily indicative of future 
results.

NOTE 7 - LONG-TERM OBLIGATIONS

     On March 30, 1998, the Company entered into a Credit Agreement with 
various  financial institutions, as banks, and KeyBank National Association, as 
agent, which provides a revolving credit facility of up to $325 million.  As of
July 31, 1998, the Company has borrowed $265 million primarily to purchase the 
industrial containers business of Sonoco and to consolidate all of the
Company's other long-term borrowings. In addition, the Company has borrowed
funds in anticipation of closing on the purchase of the intermediate bulk 
containers business of Sonoco.  The interest rate is either based on the prime
rate or LIBOR rate plus a calculated margin amount.  At July 31, 1998, the
interest rate is 6.04%. The revolving credit loans are due on March 31, 2003. 
These obligations contain covenants related to the financial position and
results of operations of the Company.

     During 1998, the Company entered into an interest rate swap agreement 
with a notional amount of $140 million which will be reduced each year based on 
an amortization schedule.  The interest rate swap was entered into to help 
manage the Company's exposure to variable rate debt.  Under the agreement, the 
Company receives interest from the counterparty equal to the LIBOR rate and 
pays interest to the counterparty at a fixed rate of 6.15%.  The differential to
be paid and received under this agreement is recorded as an adjustment to
interest expense and is included in interest receivable or payable.  The
interest rate swap agreement expires on March 30, 2008.

NOTE 8 - RESTRUCTURING CHARGE

     During the third quarter of 1998, the Company approved a plan to 
consolidate the operations of a number of its locations.  The consolidation
will be made to combine certain duplicate facilities, due to the Company's
recent acquisitions, and other locations together to optimize operating
efficiencies and capabilities.   In addition, a number of other fibre, steel,
plastic and corrugated plants will be closed.  As a result, there was a pretax
restructuring charge of approximately $27.5 million, primarily consisting of
employee separation costs and other anticipated closing costs.

NOTE 9 - RECENT ACCOUNTING STANDARDS

     During 1997, the Financial Accounting Standards Board issued SFAS No. 
130, "Reporting Comprehensive Income" and SFAS No. 131, "Disclosures about 
Segments of an Enterprise and Related Information."

     SFAS No. 130, which will not be effective until 1999 for the Company, 
requires companies to present comprehensive income, which is comprised of net 
income and other charges and credits to equity that are not the result of 
transactions with the owners, in its financial statements.  Currently, the only
item in addition to net income that would be included in comprehensive income is
the cumulative translation adjustment.

     SFAS No. 131, which will not be effective until 1999 for the Company, 
requires that reporting segments be redefined in terms of a company's operating 
segments.  Adoption of the new standard is not expected to have a significant 
impact on the presentation of the Company's segments.

     In April 1998, the American Institute of Certified Public Accountants
issued Statement of Position (SOP) 98-1, "Accounting for the Costs of Computer 
Software Developed or Obtained for Internal Use," which is effective in 2000
for the Company.  Internal use software is software that is acquired,
internally developed or modified solely to meet the entity's needs and for 
which, during the software's development or modification, a plan does not exist 
to market the Software externally.  Cost incurred to develop the software 
during the application development stage and upgrades and enhancements that 
provide additional functionality should be capitalized.  The Company has not 
yet determined what, if any, impact SOP 98-1 will have on the Company's 
financial position or results of operations.

     In June 1998, the Financial Accounting Standards Board issued SFAS No. 
133, "Accounting for Derivative Instruments and Hedging Activities," which is 
effective in 2000 for the Company. The statement requires that all derivatives
be recorded in the balance sheet as either assets or liabilities and be measured
at fair value. The accounting for changes in fair value of a derivative depends
on the intended use of the derivative and the resulting designation. The Company
has not yet determined what, if any, impact SFAS No. 133 will have on the
Company's financial position or results of operations.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL  
              CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

     Greif Bros. Corporation (the "Company") had net income, excluding the 
effect of a $27.5 million restructuring charge, of $12.2 million, or $0.50 and
$0.56 per share for the Class A and Class B Common Stock, respectively, for the
third quarter of 1998 compared with $4.7 million, or $0.18 and $0.24 per share
for the Class A and Class B Common Stock, respectively, for the same period last
year. Including the effect of the restructuring charge, the Company reported a
net loss of $4.5 million, or $(0.23) and $(0.17) per share for the Class A
and Class B Common Stock, respectively, for the third quarter of 1998.

     For the nine months ended July 31, 1998, the Company had net income, 
excluding the effect of a $27.5 million restructuring charge, of $34.4 million,
or $1.41 and $1.58 per share for the Class A and Class B Common Stock, 
respectively, compared to $12.7 million, or $0.44 and $0.67 per share for the 
Class A and Class B Common Stock, respectively, last year.  Including the
effect of the restructuring charge, the Company reported net income of $17.7
million, or $0.68 and $0.85 per share for the Class A and Class B Common Stock, 
respectively, for the 1998 year-to-date period.

     Historically, revenues or earnings may or may not be representative of 
future operations because of various economic factors.  The following 
comparative information is presented for the nine-month periods ended July 31, 
1998 and July 31, 1997.

Quarter Results

     Net sales increased $51.6 million or 30.9% during the third quarter this
year compared to the third quarter last year.

     The net sales of the industrial shipping containers segment increased by 
$46.3 million due to the acquisition of the industrial containers
business of Sonoco Products Company ("Sonoco") on March 30, 1998. 

     The net sales of the containerboard segment increased by $5.3 million in 
comparison to the prior quarterly period.  This increase was the result of
$11.0 million higher net sales in the paper mills which was significantly 
affected by the improved sales prices of its products.  The higher sales prices
were caused by the overall improvement of the containerboard market. The 
remaining increase was primarily due to higher sales volume in the corrugated 
container and sheet operations during the current year's quarter compared to the
prior year's quarter. These increases were partially offset by the disposal of
the Company's wood components plants, with prior quarter net sales of $14.4 
million, in Kentucky, California, Washington and Oregon during August 1997.  

     Other income increased $6.4 million primarily due to three sales of 
timberland properties totaling $6.0 million during the third quarter.

     The cost of products sold as a percentage of sales decreased from 86.7% 
for the three months ended July 31, 1997 to 82.4% for the three months ended 
July 31, 1998.  This decrease is primarily the result of higher sales prices of 
products in the containerboard segment without a corresponding increase in the 
cost of products sold.

     The increase in selling, general and administrative expense of $5.0 million
is primarily due to the additional expenses and amortization of goodwill 
related to the Company's recent acquisitions.

     During the third quarter of 1998, the Company approved a plan to 
consolidate some of its locations in order to optimize operating efficiencies
and capabilities.  The plan was a result of a study to determine whether
certain locations, either existing or newly acquired, should be closed or
relocated to a different facility.  Eighteen facilities have been identified in
the consolidation plan.  As a result of this plan, the Company recognized a
restructuring charge of $27.5 million for the Company's plants, not part of 
the industrial containers business of Sonoco acquisition, which will be 
closed during the next year. The charge relates primarily to 
severance costs and other anticipated costs of closing the facilities.  
Management believes that, upon completion of the consolidation, positive 
contributions to earnings from these actions could approximate an amount equal 
to the restructuring charge on an annualized basis.  These contributions are 
expected to begin in the latter part of 1998; however, the most significant 
impact will be realized in 1999 when the plan is fully implemented. 	

     The increase in interest expense of $3.4 million is due to the higher 
average debt during the current quarter resulting from the acquisition of the 
industrial containers business of Sonoco.

Year-To-Date Results

     Net sales increased $107.6 million or 22.8% during the current period 
compared to the previous period.  

     The net sales of the industrial shipping containers segment increased by 
$70.6 million in comparison to the prior period.  This increase was primarily 
the result of the acquisition of the industrial containers business of Sonoco 
which contributed $69.8 million of net sales during 1998.  
	
     The net sales of the containerboard segment increased by $37.0 million in 
comparison to the prior period.  This increase was primarily the result of 
$34.5 million higher net sales in the paper mills which was significantly 
affected by the improved sales prices of its products.  The higher sales prices 
were caused by the overall improvement of the containerboard market.   In 
addition, the purchase of Independent Container, Inc. and Centralia Container, 
Inc. in May 1997 and June 1997, respectively, contributed $23.0 million in net 
sales as a result of additional sales volume.  The remaining increase was 
primarily due to higher sales volume in the other corrugated container and 
sheet operations.  These increases were partially offset by the disposal of 
the Company's wood components plants subsequent to the end of the third quarter 
of 1997 with prior period net sales of $37.0 million.  

     Other income increased $6.7 million in the current period primarily due to 
$9.7 million of additional sales of timber and timber properties offset by a 
gain on the sale of an injection molding facility in the prior period.
	
     The cost of products sold as a percentage of sales decreased from 87.1% 
last period to 81.4% this period.  This decrease is primarily the result of 
higher sales prices of products in the containerboard segment without a 
corresponding increase in the cost of products sold.

     The increase of $11.5 million in selling, general and administrative 
expense is due primarily to additional expenses related to the acquisitions in 
March of the current period and March, May and June of the prior period.  In 
addition, the amortization of goodwill for these acquisitions contributed to the
higher expense in the current period.

     As discussed above, the Company recorded a restructuring charge of 
$27.5 million during the third quarter of 1998.
	
     The increase in interest expense is due to the higher average debt during 
1998 resulting from the acquisition of the industrial containers business of 
Sonoco.

LIQUIDITY AND CAPITAL RESOURCES

     As reflected by the Consolidated Balance Sheet, elsewhere in this report 
and discussed in greater detail in the 1997 Annual Report, the Company is 
dedicated to maintaining a strong financial position.  It is the Company's 
belief that this dedication is extremely important during all economic times.

     As discussed in the 1997 Annual Report, the Company is subject to the 
economic conditions of the market in which it operates.  During this period, 
the Company has been able to utilize its financial strength to meet its 
continued business needs.

     The current ratio of 2.7:1 as of July 31, 1998 is an indication of the 
Company's continued dedication to strong liquidity.  

     Capital expenditures were $26 million during the nine months ended July 
31, 1998.  These capital expenditures were principally needed to replace and 
improve equipment. 

     On March 30, 1998, the Company acquired all of the outstanding shares of 
the industrial containers business of Sonoco for approximately $185 million in 
cash.  The industrial containers business includes twelve fibre drum plants and 
five plastic drum plants along with facilities for research and development, 
packaging services and distribution.  In addition, the Company entered into an 
agreement with Sonoco to acquire its intermediate bulk containers business, 
which the parties intend to finalize as soon as necessary approvals are 
obtained.  Pending receipt of such approvals, the Company will market and sell 
intermediate bulk containers for Sonoco under a distributorship agreement.  

     During 1998, the Company entered into a credit agreement which provides 
for a revolving credit facility of up to $325 million.  The Company has 
borrowed money under the credit facility to purchase the industrial containers 
business of Sonoco and repay the other long-term obligations of the Company. 
In addition, the Company has borrowed funds in anticipation of closing on the 
purchase of the intermediate bulk containers business of Sonoco.  Since the 
acquisition of the intermediate bulk containers business has not been 
finalized, cash and cash equivalents are higher at July 31, 1998 due to the 
funds being held.  

     The purchase of the industrial containers business of Sonoco has been the 
primary reason for the increase in accounts receivable, inventories, goodwill, 
property, plant and equipment and accounts payable since October 31, 1997.  

     The increase in the restructuring reserve is primarily due to the recording
of a restructuring charge of $27.5 million, as discussed above, during the 
third quarter of 1998. The remaining increase is due to a restructuring reserve 
that was set up for certain Sonoco locations, purchased on March 30, 1998, that 
will be closed.  This amount primarily relates to severance arrangements and 
other costs of closing the plants.

     The increase in other long-term liabilities is primarily the result of the 
post-retirement health care benefits related to certain employees of the 
acquired businesses of Sonoco.

     During May 1998, the Company entered into a letter of intent to form a 
joint venture named CorrChoice, Inc. to operate the sheet feeder plants of 
Michigan Packaging Company, a subsidiary of the Company, and Ohio Packaging 
Corporation.  Completion of the joint venture is anticipated to occur during 
November 1998.  The joint venture will be formed by the stockholders of 
Michigan Packaging Company and Ohio Packaging Corporation contributing their 
stock in these companies to CorrChoice, Inc. in exchange for stock of 
CorrChoice, Inc. The Company will not be required to commit any additional 
capital resources to fund the joint venture.  Because the joint venture is to 
be self-supporting, the Company does not anticipate that the joint venture will 
have a significant impact in the future on liquidity or capital resources of 
the Company.

     During 1997, the Company embarked on a program to implement a new 
management information system.  The purpose of the new management information 
system is to focus on using information technology to link operations in 
order to become a low cost producer and more effectively service the Company's 
customers. The ultimate cost of this project is dependent upon management's 
final determination of the locations, timing and extent of integration of
the new management information system.  As of July 31, 1998, the Company has 
spent approximately $10 million towards this project.

     In addition to the intermediate bulk containers business of Sonoco and the 
new management information system, as described above, the Company has 
approved future purchases of approximately $17 million.   These purchases are 
primarily to replace and improve equipment.

     Borrowing and self-financing have been the primary sources for past 
capital expenditures and acquisitions.  The Company anticipates financing 
future capital expenditures in a like manner and believes that it will have 
adequate funds available for planned expenditures.

Year 2000 Matters

     The Company is actively assessing the Year 2000 readiness of its
information technology ("IT") and non-IT systems, and has begun to remediate
certain IT systems.  In addition, the Company is in the process of determining
the extent to which the systems of third parties with whom the Company has
significant relationships may be vulnerable to Year 2000 issues and what
impact, if any, these Year 2000 issues will have on the Company.  As part 
of these assessments, a compliance plan, which includes the formation of
a steering committee and a timetable for identifying, evaluating and solving
its Year 2000 problems, has been developed.  The timetable provides for the
Company's completion of its remediation of any Year 2000 issues by the end
of 1999.  The Company is also developing estimates of the costs to be incurred
in its Year 2000 remediation efforts.     

              SAFE HARBOR STATEMENT UNDER THE PRIVATE 
              SECURITIES LITIGATION REFORM ACT OF 1995

     Except for the historical information contained herein, the matters 
discussed in this Form 10-Q contain certain forward-looking statements which 
involve risks and uncertainties, including, but not limited to economic, 
competitive, governmental and technological factors, including achievement
of Year 2000 compliance, affecting the Company's operations, markets, 
services and related products, prices and other factors discussed in the 
Company's filings with the Securities and Exchange Commission.  The 
Company's actual results could differ materially from those projected in 
such forward-looking statements. 

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
               MARKET RISK

     Not applicable at this time.

ITEM 5. OTHER INFORMATION

     As discussed in the Company's Proxy Statement for the 1998 Annual 
Meeting of Stockholders, any qualified stockholder of the Company who intends 
to submit a proposal to the Company at the 1999 Annual Meeting of the 
Stockholders (the "1999 Annual Meeting") must submit such proposal to the 
Company not later than September 30, 1998  (approximately 120 days prior to the 
mailing date of the 1999 Proxy Statement) to be considered for inclusion in the 
Company's Proxy Statement and form of Proxy (the "Proxy Materials") relating to 
that meeting.  If a stockholder intends to present a proposal at the 1999 
Annual Meeting, but has not sought the inclusion of such proposal in the 
Company's Proxy Materials, such material must be received by the Company prior 
to December 15,1998 (approximately 45 days prior to the mailing date of the 
1999 Proxy Statement) or the Company's management proxies for the 1999 Annual 
Meeting will be entitled to use their discretionary voting authority should 
such proposal then be raised, without any discussion of the matter in the 
Company's Proxy Materials.  Furthermore, stockholders must follow the 
procedures set forth in Article I, Section 8, of the Company's Amended and 
Restated By-Laws in order to present proposals at the 1999 Annual Meeting.

PART II.  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a.)   Exhibits.

         Exhibit Number                          Description

              27                   Financial Data Schedule (contained herein).

     (b.) Reports on Form 8-K.

          No events occurred requiring Form 8-K to be filed.



                                SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Company has duly caused this report to be signed on its behalf by the 
undersigned thereto duly authorized.
					
                                     Greif Bros. Corporation
                                     __________________________
                                     (Registrant)

September 14, 1998                   /s/ Joseph W. Reed
                                     __________________________
                                     Joseph W. Reed
                                     Chief Financial Officer and Secretary
                                     (Duly Authorized Signatory)





  

5 This schedule contains summary financial information extracted from the Form 10-Q and is qualified in its entirety by reference to such Form 10-Q. 1,000 9-MOS OCT-31-1998 JUL-31-1998 63,442 6,957 108,682 (1,032) 68,934 269,826 703,780 (285,716) 842,000 99,452 260,324 0 0 9,914 392,721 842,000 579,597 602,500 472,058 472,058 93,305 0 7,909 29,228 11,487 17,741 0 0 0 17,741 0.68 0.68 Amount represents the earnings per share for the Class A Common Stock. The earnings per share for the Class B Common Stock are $0.85.