FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
(Mark One)

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

For the quarterly period ended September 30, 1998

                                      or

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

For the transition period from ____________ to ___________

Commission file number 0-2670

                           60 EAST 42ND ST. ASSOCIATES
              (Exact name of registrant as specified in its charter)

A New York Partnership				13-6077181 
(State or other jurisdiction of 		(I.R.S. Employer
incorporation or organization)                  Identification No.)

                  60 East 42nd Street, New York, New York 10165
                     (Address of principal executive offices)
                                    (Zip Code)

                                 (212) 687-8700
               (Registrant's telephone number, including area code)

                                       N/A
(Former name, former address and former fiscal year, if changed since last 
report)

Indicate 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  [  ].

An Exhibit Index is located on Page 13 of this Report. 
Number of pages (including exhibits) in this filing: 13 
                         PART I. FINANCIAL INFORMATION

                          60 East 42nd St. Associates
                         Condensed Statements of Income
                                  (Unaudited)


                            For the Three Months            For the Nine Months
                             Ended September 30,            Ended September 30,
                                1998        1997                1998       1997
Income:
  Basic rent, from a 
   related party (Note B)  $ 271,961   $  271,961         $  815,881 $  815,881
  Additional rent from a
   related party (Note B)    263,450      263,450            790,350    790,350
  Further additional rent
   income from a related 
   party (Note B)          1,529,651    2,110,080          1,529,651  2,110,080
                          ----------   ----------         ---------- ----------
  Total rent income        2,065,062    2,645,491          3,135,882  3,716,311
                          ----------   ----------         ---------- ----------
Expenses:

  Interest on mortgage
  (Note B)                   265,961      265,961            797,881    797,881
   Supervisory services, 
   to a related party
   (Note C)                  160,810      214,099            176,500    229,789
     Fees and Expenses           -0-       47,545                -0-     47,545
     Amortization of mortgage
     refinancing costs         6,194        6,194             18,582     18,582
                          ----------   ----------         ---------- ----------
  Total expenses             432,965      533,799            992,963  1,093,797
                          ----------   ----------         ---------- ----------
Net Income                $1,632,097   $2,111,692         $2,142,919 $2,622,514
                          ==========   ==========         ========== ==========
Earnings per $10,000 
  participation unit,
  based on 700
  participation units
  outstanding during
  the year                $ 2,331.57  $ 3,016.70         $ 3,061.31  $ 3,746.45
                          ==========   ==========         ========== ==========
  Distributions per $10,000
    participation consisted 
    of the following:

    Income                $ 2,331.57  $ 3,016.70         $ 3,061.31 $ 3,746.45
    Increase (Decrease) in 
          capital deficit  (1,957.85)  (2,642.98)         (1,940.15) (2,625.29)
                           ---------- ----------          ---------- ----------
  Total distributions     $   373.72  $   373.72         $ 1,121.16 $ 1,121.16
                           ========== ==========         ========== ==========

At September 30, 1998 and 1997, there were $7,000,000 of participations
outstanding.
            
                         60 East 42nd St. Associates
                           Condensed Balance Sheet
                                 (Unaudited)
Assets                                 September 30, 1998  December 31, 1997
Current assets: 		
  Cash                                    $    87,879         $    87,879
  Further Additional Rent Due
   from a related party (Note B)            1,529,651                 -0-
                                          -----------         -----------
  Total current assets                      1,617,530              87,879
                                          ===========         ===========
Real estate
  Land                                      7,240,000           7,240,000
  Buildings and Building Improvements      18,534,135          18,534,135
    Less, allowance for depreciation       18,534,135          18,534,135
                                          -----------         -----------
                                                  -0-                 -0-

Mortgage refinancing costs                    249,522             249,522
    Less, allowance for depreciation           98,815              80,233
                                          -----------         -----------
                                              150,707             169,289
                                          -----------         -----------
Total assets                               $9,008,237         $ 7,497,168
                                           ==========         ===========
Liabilities and Capital
Current Liabilities:
   Accrued Supervisory fees, to a 
    related party (Note C)                $   152,965         $       -0-
                                          -----------         -----------
   Total Current liabilities              $   152,965         $       -0-

Long-term debt                            $12,020,814          12,020,814
Capital
Capital deficit, January 1,                (4,523,646)         (4,498,870)
  Add, Net income:
  January 1, 1998 through
  September 30, 1998                        2,142,919                 -0-
  January 1, 1997 through
  December 31, 1997                               -0-           2,877,925
                                          -----------         -----------
                                           (2,380,727)         (1,620,945)
Less Distributions:
   Monthly distributions,
   January 1, 1998 through
   September 30, 1998                         784,815                 -0-
   January 1, 1997 through
   December 31, 1997                              -0-           1,046,420
   Distribution on December 2, 1997 of
    Additional Rent for the lease year
     ended September 30, 1997                     -0-           1,856,281
                                          -----------          -----------
Total distributions                           784,815           2,902,701
                                          -----------          -----------
Capital (deficit)
   September 30, 1998                      (3,165,542)                -0-
   December 31, 1997                              -0-          (4,523,646)

Total liabilities and capital:
   September 30, 1998                       9,008,237 
   December 31, 1997                      ===========           7,497,168
                                                               ===========
                         60 East 42nd St. Associates
                           Condensed Balance Sheet
                                 (Unaudited)

                                        January 1, 1998       January 1, 1997
                                            through               through
                                       September 30, 1998    September 30, 1997

Cash flows from operating activities:
   Net income                           $ 2,142,919            $2,622,514
Adjustments to reconcile net income 
   to cash provided by operating 
   activities:
   Amortization of mortgage
        refinancing costs                    18,582                18,582
   Change in accrued expenses               152,965               253,799
   Change in additional rent due         (1,529,651)           (2,110,080)
                                         -----------           ----------
   Net cash provided by operating
        activities                          784,815               784,815
                                         -----------             ----------

Cash flows from financing activities:
   Cash distributions                      (784,815)             (784,815)
                                         -----------             ----------
   Net cash used in financing 
        activities                         (784,815)             (784,815)
                                         -----------             ----------
   Net increase (decrease) in cash              -0-                   -0-

Cash, beginning of quarter                   87,879                87,879
                                         -----------             ----------
Cash, end of quarter                    $    87,879             $   87,879
                                         ===========             ==========

                                       January 1, 1998       January 1, 1997
                                           through               through
                                     September 30, 1998    September 30, 1997

Cash paid for:
Interest                                $   797,881             $  797,881
                                        ===========             ==========

Notes to Condensed Financial Statements (Unaudited)		

Note A - Basis of Presentation

		The accompanying unaudited condensed financial statements have
been prepared in accordance with the instructions to Form 10-Q and therefore do
not include all information and footnotes necessary for a fair presentation of 
financial position, results of operations and statement of cash flows in 
conformity with generally accepted accounting principles.  The accompanying 
unaudited condensed financial statements include all adjustments (consisting 
only of normal recurring accruals) which are, in the opinion of the partners in 
Registrant, necessary for a fair statement of the results for such interim 
periods.  The partners in Registrant believe that the accompanying unaudited 
condensed financial statements and the notes thereto fairly disclose the 
financial condition and results of Registrant's operations for the periods 
indicated and are adequate to make the information presented therein not 
misleading.

Note B - Interim Period Reporting

		The results for the interim periods are not necessarily
indicative of the results to be expected for a full year. 

		Registrant is a partnership which was organized on September
25, 1958.  On October 1, 1958, Registrant acquired fee title to the Lincoln 
Building (the "Building") and the land thereunder, located at 60 East 42nd 
Street, New York, New York (the "Property").  Registrant's partners are Peter 
L. Malkin, Anthony E. Malkin, Scott D. Malkin, Thomas N. Keltner, Jr. and 
Richard A. Shapiro, and as of April 15, 1998, Jack Feirman and Mark Labell, who
replaced Stanley Katzman and John L. Loehr, respectively (individually, a 
"Partner" and, collectively, the "Partners"), each of whom also acts as an 
agent for holders of participations in the Registrant (each holder of a 
participation, individually, a "Participant" and, collectively, 
"Participants").  

	Registrant leases the Property to Lincoln Building Associates ("Lessee") 
under a long-term net operating lease (the "Lease"), the current term of which 
expires on September 30, 2008. (There is one additional 25-year term which, if 
exercised, will extend the Lease until September 30, 2033.)  Lessee is a 
partnership whose partners consist of, among others, Peter L. Malkin.  Five of 
the seven Partners in Registrant are current members of the law firm of Wien & 
Malkin LLP, 60 East 42nd Street, New York, New York, counsel to Registrant and 
Lessee ("Counsel").  See Note C of this Item 1 ("Note C").
		The Lease, as modified, provides that Lessee 	
is required to pay Registrant:

		(i)	An annual basic rent of $1,087,842 (the "Basic Rent"),
which is equal to the sum of $1,063,842, the constant annual charges on the
first mortgage calculated in accordance with the terms of the Lease, plus
$24,000 for supervisory services payable to Counsel.  

		(ii)	(A) additional rent (the "Additional Rent") equal to
the lesser of (x) Lessee's net operating income for the lease year or (y) 
$1,053,800 and (B) further additional rent ("Further Additional Rent") equal to 
50% of any remaining balance of Lessee's net operating income for such lease 
year.  (Lessee has no obligation to make any payment of Additional Rent or 
Further Additional Rent until after Lessee has recouped any cumulative operat-
ing loss accruing from and after September 30, 1977.  There is currently no 
accumulated operating loss against which to offset payment of Additional Rent 
or Further Additional Rent.)  

		(iii)	An advance against Additional Rent equal to the lesser
of (x) Lessee's net operating income for the preceding lease year or (y)
$1,053,800, which, in the latter amount, will permit basic distributions to
Participants at an annual rate of approximately 14.95% per annum on their
remaining cash investment in Registrant; provided, however, if such advances
exceed Lessee's net operating income for any Lease year, advances otherwise
required during the subsequent lease year shall be reduced by an amount equal
to such excess until Lessee shall have recovered, through retention of net
operating income, the full amount of such excess.  

		Further Additional Rent income is recognized when earned from
the Lessee, at the close of the lease year ending September 30.  Such income is
not determinable until the Lessee, pursuant to the Lease, renders to Registrant
a certified report on the operation of the Property.  Further Additional Rent
for the lease year ended September 30, 1998 was $1,529,651.  After the payment
of $152,965 to Counsel as an additional payment for supervisory services, the 
balance of $1,376,686 will be distributed to the Participants on November 30, 
1998. 

		A refinancing of the existing first mortgage loan on the
Property in the original principal amount of $12,020,814 was closed on October
6, 1994 (the "Mortgage").  Annual Mortgage charges are $1,063,842, payable in
equal monthly installments of $88,654, representing interest only at the rate of
8.85% per annum.  The Mortgage will mature on October 31, 2004 and is 
prepayable in whole after October 6, 1995 with a penalty providing interest 
protection to the mortgagee.  The Mortgage is prepayable in whole without 
penalty during the 90-day period prior to its maturity date.  

		The refinancing costs were capitalized by Registrant and are
being expensed ratably during the period of the mortgage extension from October
6, 1994 to October 31, 2004.  

		If the Mortgage is modified, upon the first refinancing which
would result in an increase in the amount of the outstanding principal balance
of the mortgage, the Basic Rent shall be equal to the Wien & Malkin LLP annual 
supervisory fee of $24,000 plus an amount equal to the product of the new debt 
service percentage rate under the refinanced mortgage multiplied by the 
principal balance of the mortgage immediately prior to such refinancing.  If 
there are subsequent refinancings which result in an increase in the amount of 
the outstanding principal balance of the mortgage, the principal balance 
referred to above shall be reduced by the amount of the mortgage amortization 
payable from Basic Rent subsequent to the first refinancing.  

Note C - Supervisory Services

		Registrant pays Counsel for supervisory services and
disbursements $24,000 per annum (the "Basic Payment"), plus an additional
payment of 10% of all distributions to Participants in Registrant in any year
in excess of the amount representing a return at the rate of 14% per annum on
their remaining cash investment (the "Additional Payment").  At September 30,
1998, such remaining cash investment was $7,000,000 representing the original
cash investment of Participants in Registrant.

		No remuneration was paid during the nine month period ended 
September 30, 1998 by Registrant to any of the Partners as such.  Pursuant to 
the fee arrangements described herein, Registrant paid Counsel $18,000 of the 
Basic Payment and $5,535 on account of the Additional Payment, for supervisory 
services for the nine month period ended September 30, 1998.  The supervisory 
services provided to Registrant by Counsel include legal, administrative and 
financial services.  The legal and administrative services include acting as 
general counsel to Registrant, maintaining all of its partnership records, 
performing physical inspections of the Building, reviewing insurance coverage 
and conducting annual partnership meetings.  Financial services include monthly 
receipt of rent from Lessee, payment of monthly and additional distributions to 
the Participants, payment of all other disbursements, confirmation of the 
payment of real estate taxes, active review of financial statements submitted 
to Registrant by the Lessee and financial statements audited by and tax 
information prepared by Registrants' independent certified public accountant, 
and distribution of such materials to the Participants.  Counsel also prepares 
quarterly, annual and other periodic filings with the Securities and Exchange 
Commission and applicable state authorities.

		Reference is made to Note B of Item 1 ("Note B") for a
description of the terms of the Lease between Registrant and Lessee.  As of
September 30, 1998, Peter L. Malkin owned a partnership interest in Lessee.
The respective interests, if any, of the Partners in Registrant and Lessee
arise solely from ownership of their respective participations in Registrant
and, in the case of Peter L. Malkin, his individual ownership of a partnership
interest in Lessee.

The Partners receive no extra or special benefit not shared on a pro rata basis 
with all other Participants in Registrant or partners in Lessee.  However, each 
of the five Partners who is currently a member of Counsel, by reason of their 
respective partnership interests in Counsel, is entitled to receive his share 
of any legal fees or other remuneration paid to Counsel for legal and 
supervisory services rendered to Registrant and Lessee.

		As of September 30, 1998, the Partners owned of record and 
beneficially an aggregate $119,167 of participations in Registrant, 
representing 1.70% of the currently outstanding participations therein.

		In addition, as of September 30, 1998, certain of the Partners
in Registrant (or their respective spouses) held additional Participations in 
Registrant as follows:
		
                Peter L. Malkin owned of record as trustee or co-trustee, an
                aggregate of $45,714 of Participations.  Mr. Malkin disclaims
                any beneficial ownership of such Participations.

                Isabel Malkin, the wife of Peter L. Malkin, individually and 
                beneficially, owned $35,000 of Participations.  Mr. Malkin 
                disclaims any beneficial ownership of such Participations.

                Richard A. Shapiro owned of record as custodian, but not 
                beneficially, a $5,000 Participation.  Mr. Shapiro disclaims any
                beneficial ownership of such Participation.

Item 2.         Management's Discussion and Analysis of Financial Condition and
                Results of Operations.

		As stated in Note B, Registrant was organized solely for the 
purpose of acquiring the Property subject to a net operating lease held by 
Lessee.  Registrant is required to pay from Basic Rent the annual mortgage 
charges due under the Mortgage and the Basic Payment to Counsel for supervisory 
services.  The balance of such Basic Rent is distributed to the Participants.  
Additional Rent and Further Additional Rent are distributed to the Participants 
after the Additional Payment to Counsel.  See Note C of Item 1 above.  Under 
the Lease, Lessee has assumed sole responsibility for the condition, operation, 
repair, maintenance and management of the Property.  Registrant is not required 
to maintain substantial reserves or otherwise maintain liquid assets to defray 
any operating expenses of the Property.

		Registrant does not pay dividends.  During the nine month period 
ended September 30, 1998, Registrant made regular monthly distributions of 
$124.57 for each $10,000 participation ($1,494.89 per annum for each $10,000 
participation).  There are no restrictions on Registrant's present or future 
ability to make distributions; however, the amount of such distributions 
depends solely on the ability of Lessee to make payments of Basic Rent, 
Additional Rent and Further Additional Rent to Registrant in accordance with 
the terms of the Lease.  Registrant expects to make distributions so long as it 
receives the payments provided for under the Lease.

		On November 30, 1998, Registrant will make an additional 
distribution of $1,966.69 for each $10,000 participation.  Such distribution 
represents Further Additional Rent paid by the Lessee in accordance with the 
terms of the Lease after the Additional Payment to counsel.  See Notes B and C.

		Registrant's results of operations are affected primarily by the 
amount of rent payable to it under the Lease.  The amount of Overage Rent 
payable to Registrant is affected by the cycles in the New York City economy 
and real estate rental market.  It is difficult for management to forecast the 
New York City real estate market over the next few years.  The following 
summarizes, with respect to the current period and the corresponding period of 
the previous year, the material factors regarding Registrant's results of 
operations for such periods:

        Total income decreased for the three and nine month periods ended
        September 30, 1998, as compared with the three and nine month periods
        ended September 30, 1997.  Such decrease resulted from a decrease in
        Further Additional Rent payable by the Lessee for the lease year ended
        September 30, 1998.  See Note B.

        Total expenses decreased for the three and nine month periods ended
        September 30, 1998, as compared with the three and nine month periods
        ended September 30, 1997.  Such decrease was the result of a decrease
        in the Additional Payment for supervisory services to be made to
        Counsel based on Further Additional Rent for the lease year ended
        September 30, 1998, as compared with payments for supervisory services
        with respect to Further Additional Rent for the lease year ended
        September 30, 1997.
        See Note B.

                          Liquidity and Capital Resources

		There has been no significant change in Registrant's liquidity
for the nine month period ended September 30, 1998, as compared with the nine
month period ended September 30, 1997.

		No amortization payments are due under the Mortgage to fully 
satisfy the outstanding principal balance at maturity, and furthermore 
Registrant does not maintain any reserve to cover the payment of such Mortgage 
indebtedness at maturity.  Therefore, repayment of the Mortgage will depend on 
Registrant's ability to arrange a refinancing.  Assuming that the Property 
continues to generate an annual net profit in future years comparable to that 
in past years, and assuming further that current real estate trends continue in 
the geographic area in which the Property is located, Registrant anticipates 
that the value of the Property would be in excess of the amount of the Mortgage 
balance at maturity.  

		Registrant anticipates that funds for working capital for the 
Property will be provided by rental payments received from Lessee and, to the 
extent necessary, from additional capital investment by the partners in Lessee 
and/or external financing.  However, as noted above, Registrant has no 
requirement to maintain substantial reserves to defray any operating expenses 
of the Property.  Registrant foresees no need to make material commitments for 
capital expenditures while the Lease is in effect.

                                     Inflation

		Registrant has been advised that there has been no material
change in the impact of inflation on its operations since the filing of its
report on Form 10-K for the year ended December 31, 1997, which report and all
exhibits thereto are incorporated herein by reference and made a part hereof.

                           PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings.

                The property of Registrant is the subject of the following
material pending litigation:

		Wien & Malkin LLP, et. al. v. Helmsley-Spear, Inc., et. al.  On 
June 19, 1997 Wien & Malkin LLP and Peter L. Malkin filed an action in the 
Supreme Court of the State of New York, against Helmsley-Spear, Inc. and Leona 
Helmsley concerning various partnerships which own, lease or operate buildings 
managed by Helmsley-Spear, Inc., including Registrant's property.  In their 
complaint, plaintiffs sought the removal of Helmsley-Spear, Inc. as managing 
and leasing agent for all of the buildings.  Plaintiffs also sought an order 
precluding Leona Helmsley from exercising any partner management powers in the 
partnerships.  In August, 1997, the Supreme Court directed that the foregoing 
claims proceed to arbitration.  As a result, Mr. Malkin and Wien & Malkin LLP 
filed an arbitration complaint against Helmsley-Spear, Inc. and Mrs. Helmsley 
before the American Arbitration Association.  Helmsley-Spear, Inc. and Mrs. 
Helmsley served answers denying liability and asserting various affirmative 
defenses and counterclaims; and Mr. Malkin and Wien & Malkin LLP filed a reply 
denying the counterclaims.  By agreement dated December 16, 1997, Mr. Malkin 
and Wien & Malkin LLP (each for their own account and not in any representative 
capacity) reached a settlement with Mrs. Helmsley of the claims and 
counterclaims in the arbitration and litigation between them.  Mr. Malkin and 
Wien & Malkin LLP are continuing their prosecution of claims in the arbitration 
for relief against Helmsley-Spear, Inc., including its termination as the 
leasing and managing agent for various entities and properties, including the 
Registrant's Lessee.


Item 6.	Exhibits and Reports on Form 8-K.

		(a)	The exhibits hereto are being incorporated by reference.

		(b)	Registrant has not filed any report on Form 8-K during
                        the quarter for which this report is being filed.  



                                 SIGNATURES

		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 thereunto duly authorized.

		The individual signing this report on behalf of Registrant is 
Attorney-in-Fact for Registrant and each of the Partners in Registrant, 
pursuant to Powers of Attorney, dated March 18, 1998, March 20, 1998 and May 
14, 1998 (the "Power").

60 EAST 42ND ST. ASSOCIATES
(Registrant)



By:  /s/ Stanley Katzman
     Stanley Katzman, Attorney-in-Fact*



Dated: November   , 1998


		Pursuant to the requirements of the Securities Exchange Act of 
1934, this report has been signed by the undersigned as Attorney-in-Fact for 
the Partners in Registrant pursuant to the Power, on behalf of Registrant on 
the date indicated.


By:  /s/ Stanley Katzman
     Stanley Katzman, Attorney-in-Fact*


Dated: November   , 1998






__________________________
*	Mr. Katzman supervises accounting functions for Registrant.

   
Number                    Document                                  Page*

3(a)                      Partnership Agreement, dated 
                          September 25, 1958, which was filed 
                          by letter dated March 31, 1981 
                          (Commission File No. 0-2670) as 
                          Exhibit No. 3 to Registrant's Form 
                          10-K for the fiscal year ended 
                          December 31, 1980, and is 
                          incorporated by reference as an 
                          exhibit hereto.

3(b)                      Amended Business Certificate of
                          Registrant filed with the Clerk of 
                          New York County on November 28, 1997, 
                          reflecting a change in the Partners 
                          of Registrant, was filed as Exhibit 
                          3(b) to Registrant's 10-Q for the 
                          quarter ended March 31, 1998, and is 
                          incorporated by reference as an 
                          exhibit hereto.  

24                        Powers of Attorney dated
                          March 18, 1998, March 20, 1998 and 
                          May 14, 1998 between the Partners of 
                          Registrant and Stanley Katzman and 
                          Richard A. Shapiro which were filed 
                          as Exhibit 24 to Registrant's 10-Q 
                          for the quarter ended March 31, 1998 
                          and is incorporated by reference as 
                          an exhibit hereto.





__________________________
*	Page references are based on sequential numbering system.