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)        September 29, 1994

                              YELLOW CORPORATION
            (Exact name of registrant as specified in its charter)

         Delaware                   0-12255                    48-0948788
(State or other jurisdiction      (Commission              (IRS Employer
    of incorporation)             File Number)             Identification No.)

    10777 Barkley, P. O. Box 7563,       Overland Park, Kansas      66207
(Address of principal executive offices)                          (Zip Code)

   Registrant's telephone number, including area code         (913) 967-4300

                                 No Changes.
        (Former name or former address, if changed since last report.)

Item 5.  Other Events

  On September 29, 1994, Yellow Corporation (the company) announced that it
will record a charge to earnings in the third quarter of $6.7 million, $4.1
million after taxes, or $.14 per share.  This charge, recorded as an
extraordinary item, is to write-off the book value of its intrastate operating
rights.  The non-cash charge resulted from the recent passage of the Trucking
Industry Regulatory Reform Act of 1994 which deregulates the entry and rates
for the intrastate operations of all transportation companies.

  The company expects to announce third quarter results on October 20, 1994.


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.

                                        YELLOW CORPORATION 

Date:     October 5, 1994                /s/ Phillip A. Spangler 
                                        Phillip A. Spangler
                                        Vice President and Treasurer