EXHIBIT 13 (iii)
                                
                      Report of Independent Accountants on
                          Financial Statement Schedule
                                
                                


To the Board of Directors of Stone & Webster, Incorporated:

Our audits of the consolidated  financial  statements  referred to in our report
dated February 12, 1999 appearing in the 1998 Annual Report to  Shareholders  of
Stone  &  Webster,   Incorporated  (which  report  and  consolidated   financial
statements  are  incorporated  by reference in this Annual  Report on Form 10-K)
also  included  an audit of the  financial  statement  schedule  listed  in Item
14(a)(1)(ii) of this Form 10-K. In our opinion, the financial statement schedule
presents  fairly,  in all material  respects,  the information set forth therein
when read in conjunction with the related consolidated financial statements.


                                  /s/  PricewaterhouseCoopers LLP

Boston, Massachusetts
February 12, 1999