<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from The Arthur J. Gallagher & Co. Consolidated Financial Statements included in the 1997 second quarter Form 10Q and is qualified in its entirety by reference to such financial statements. </LEGEND> <RESTATED> <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS 6-MOS <FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996 <PERIOD-START> JAN-01-1997 JAN-01-1996 <PERIOD-END> JUN-30-1997 JUN-30-1996 <CASH> 161,239 138,014 <SECURITIES> 57,142 52,127 <RECEIVABLES> 218,403 243,250 <ALLOWANCES> (853) (720) <INVENTORY> 0 0 <CURRENT-ASSETS> 471,013 458,380 <PP&E> 82,738 77,132 <DEPRECIATION> (56,788) (51,482) <TOTAL-ASSETS> 606,837 572,751 <CURRENT-LIABILITIES> 457,317 445,289 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 16,351 16,271 <OTHER-SE> 121,452 99,254 <TOTAL-LIABILITY-AND-EQUITY> 606,837 572,751 <SALES> 211,622 205,826 <TOTAL-REVENUES> 228,055 218,018 <CGS> 119,198 120,184 <TOTAL-COSTS> 119,198 120,184 <OTHER-EXPENSES> 75,478 72,239 <LOSS-PROVISION> 0 0 <INTEREST-EXPENSE> 0 0 <INCOME-PRETAX> 33,379 25,595 <INCOME-TAX> 11,349 10,060 <INCOME-CONTINUING> 22,030 15,535 <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> 22,030 15,535 <EPS-PRIMARY> 1.26 .89 <EPS-DILUTED> 1.26 .89