EXHIBIT 23.1
 
                        CONSENT OF INDEPENDENT AUDITORS
 
  Our audits included the consolidated financial statement schedule of Arthur
J. Gallagher & Co. listed in Item 14(a). This schedule is the responsibility
of the Company's management. Our responsibility is to express an opinion based
on our audits. In our opinion, with respect to which the date is January 19,
1999, the consolidated financial statement schedule referred to above, when
considered in relation to the basic consolidated financial statements taken as
a whole, presents fairly in all material respects the information set forth
therein.
 
  We consent to the incorporation by reference in the Registration Statements
(Form S-8, No. 33-604 and Form S-8, No. 33-14625) pertaining to the Arthur J.
Gallagher & Co. Incentive and United Kingdom Incentive Plans, in the
Registration Statements (Form S-8, No. 33-24251, Form S-8, No. 33-38031 and
Form S-8, No. 333-57155) pertaining to the Arthur J. Gallagher & Co. 1988
Incentive and 1988 Nonqualified Stock Option Plans, in the Registration
Statement (Form S-8, No. 33-30816) pertaining to the Arthur J. Gallagher & Co.
Non-Employee Directors' Stock Option Plan, in the Registration Statements
(Form S-8, No. 33-64614 and Form S-8, No. 33-80648) pertaining to the Arthur
J. Gallagher & Co. 1988 Incentive, 1988 Nonqualified, and Non-Employee
Directors' Stock Option Plans, in the Registration Statement (Form S-8, No.
333-06359) pertaining to the Arthur J. Gallagher & Co. 1988 Nonqualified and
Non-Employee Directors' Stock Option Plans, and in the related Prospectuses,
of our report dated January 19, 1999 with respect to the consolidated
financial statements included herein, and our report included in the preceding
paragraph with respect to the consolidated financial statement schedule
included in this Annual Report (Form 10-K) of Arthur J. Gallagher & Co.
 
                                          /s/ Ernst & Young LLP
                                          -------------------------------------
                                          Ernst & Young LLP
 
Chicago, Illinois
March 26, 1999