EXHIBIT 16


March  15,  1999


Securities  and  Exchange  Commission
450  Fifth  Street,  N.W.
Washington,  DC  20549

Ladies  and  Gentlemen:

Re:  Chancellor  Corporation

We  have read Item 4 of Chancellor Corporation (the "Registrant") Form 8-K dated
March  4,  1999  (the  "Form  8-K").

With  respect  to  the first sentence of the first paragraph of the Form 8-K, we
make  no  comment.

We disagree with the comments in sub-paragraph (i) of the second sentence of the
first  paragraph  of  the  Form  8-K,  with  respect  to  the  absence  of  any
disagreement.  We advised the Registrant that, based on the information provided
to  us  by  the  Registrant relating to its acquisition of M.R.B. Inc., Tomahawk
Truck  &  Trailer Sales, Inc., Tomahawk Truck & Trailer Sales of Virginia, Inc.,
and  Tomahawk Truck & Trailer Sales of Missouri, Inc., the Registrant's decision
to  reflect  the  purchase  for accounting purposes as of August 1, 1998 did not
comply  with generally accepted accounting principles which require the purchase
to  be  reflected  as  of  January  29,  1999.  Registrant's  decision as to the
accounting  treatment  it  was  going to use was set forth in its Form 8-K filed
with  the  Commission  on  February  12,  1999.

We  disagree  with  the comments in sub-paragraph (ii) of the second sentence of
the  first paragraph of the Form 8-K, with respect to the absence of "reportable
events"  as  described  in  Item  304  of  Regulation  S-K.  In  connection with
preliminary  planning  discussions  with the Registrant regarding audit services
for  the  year  ended  December  31,  1998, on February 17, 1999, we advised the
Registrant  that  further  investigation  was  required  to  determine  whether
adjustments  were  required  for  certain recorded assets and liabilities, which
adjustments could materially impact the fairness or reliability of the financial
statements  for  the  year  ended  December  31,  1998.

We  make  no  comment  regarding  the  second  paragraph  of  the  Form  8-K.


Very  truly  yours,


/s/  Reznick  Fedder  &  Silverman
Reznick  Fedder  &  Silverman,  P.C.


cc:  Franklyn  E.  Churchill,  President