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)   December 16, 1997

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

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

       10990 Roe Avenue, P. O. Box 7563, Overland Park, Kansas   66207
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             (Address of principal executive offices)           (Zip Code)

Registrant's telephone number, including area code   (913) 696-6100   

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


Item 5.  Other Events

Yellow Corporation announced December 16, 1997 that its Board of Directors
authorized the repurchase of shares of the Company's outstanding common stock
with an aggregate purchase price of up to $25 million.

Management is authorized to repurchase shares from time to time in open market
transactions or in privately negotiated transactions, based on market
conditions.  The repurchased shares will be available for general corporate
purposes.  Yellow Corporation currently has 28,537,035 shares of common stock


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:   December 20, 1997                /s/ H. A. Trucksess, III      
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                                             H. A. Trucksess, III
                                     Senior Vice President - Finance/
                                     Chief Financial Officer and Treasurer