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)   June 1, 1998

                             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 June 1, 1998 that it has reached agreement in
principle to sell Preston Trucking Company to a management group of three
senior Preston Trucking officers.  The three senior officers of Preston who are
buying the company include David J. Letke, President; J. Sean Callahan, Senior
Vice President and Chief Financial Officer; and Nicholas J. Marino, Senior Vice
President and Chief Operating Officer.

The sale is subject to successful negotiation of a new five-year labor
agreement for Preston with the International Brotherhood of Teamsters and the
Preston management group securing financing for future working capital needs.
The company is informed that the sale is being positively viewed by the
Teamsters and that labor negotiations are scheduled to commence no later than
June 11.  The new owners are in the process of finalizing lending arrangements
with a major financial institution.

The financial impact of the sale is estimated to result in a second quarter
non-recurring charge of between $55 and $65 million.  Yellow Corporation
estimates it will realize positive net cash flow principally from income tax
benefits of approximately $20 million.  In addition, Yellow Corporation will
restate its historical results to segregate Preston results from continuing
operations.  For example, in the first quarter of 1998, the loss of $.02 per
share will be presented as net income from continuing operations of $.14 per
share and a net loss of $.16 per share from discontinued operations.

Preston is a regional carrier serving the Northeast, Mid-Atlantic and Central
States.  It currently operates 62 terminals and substations.  Preston delivered
2.4 million tons of freight in 1997, and serves approximately 190,000

Yellow Corporation also announced June 1, 1998 that its Board of Directors has
authorized another repurchase of shares of the company's outstanding common
stock with an aggregate purchase price of up to $25 million. It is the second
stock repurchase program announced by Yellow since December 1997, when the
company was authorized to repurchase up to $25 million in common stock.

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 27,393,017 shares of common stock


Statements contained herein, that are not purely historical, are forward
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding the company's expectations,
hopes, beliefs and intentions on strategies regarding the future. It is
important to note that the company's actual future results could differ
materially from those projected in such forward-looking statements because of
a number of factors, including but not limited to the ability of Preston
management to fulfill the contingencies necessary to complete the above
transaction, inflation, volatility of expenses, inclement weather, the results
of Teamster contract negotiations, competitor pricing activity and a downturn
in general economic activity.


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:   June 2, 1998                          /s/ H. A. Trucksess, III
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                                                  H. A. Trucksess, III
                                           Senior Vice President - Finance/
                                           Chief Financial Officer and Treasurer