UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                       Washington, DC 20549
                                 
                                 
             Under the Securities Exchange Act of 1934
                         (Amendment No. 0)
                                 
                                 
                APPLIED INDUSTRIAL TECHNOLOGIES INC
                         (Name of Issuer)
                                 
                                 
                              Common
                  (Title of Class of Securities)
                                 
                                 
                             03820C105
                          (CUSIP Number)








































1)   Name of Reporting Person           National Rural Electric
     S.S. or I.R.S. Identification      Cooperative Association
     No. of Above Person                53-0116145

2)   Check the Appropriate Box               N/A
     if a Member of a Group

3)   SEC Use Only

4)   Citizenship or Place of                  Arlington, VA
     Organization

     Number of                     5)   Sole Voting Power        1,705,855
     Shares
     Beneficially Owned            6)   Shared Voting Power        0        
     by Each Reporting
     Person With                   7)   Sole Dispositive Power   1,705,855

                                   8)   Shared Dispositive Power   0

9)   Aggregate Amount Bene-             1,705,855
     ficially Owned by Each 
     Reporting Person

10)  Check Box if the Aggregate        N/A
     Amount in Row (9) Excludes
     Certain Shares

11)  Percent of Class Represented       7.9%
     by Amount in Row 9

12)  Type of Person Reporting      EP

























Item 1 (a)     Name of Issuer

          APPLIED INDUSTRIAL TECHNOLOGIES INC

       (b)  Address of Issuer's Principal Executive Offices

            Applied Industrial Technologies Inc
            One Applied Plaza
            Euclid Ave
            East 36th St
            Cleveland, OH 44115

Item 2 (a)     Name of Person Filing

               National Rural Electric Cooperative Association

       (b)     Address of Principal Business Office

               4301 Wilson Blvd.
               Arlington, VA 22203

       (c)     Citizenship

               Commonwealth of Virginia - National Rural Electric
               Cooperative Association

      (d)      Title of Class of Securities

               Common

      (e) CUSIP Number

          03820C105

Item 3    The person filing this statement pursuant to Rule 13d- 1(b)
          or 13d-2(b) is:

           (f)   Employee Benefit Plan, Pension Fund which is subject to the
                 provisions of the Employee Retirement Income Security Act
                 of 1974 or Endowment Fund; see 240.13d-1(b)(1)(ii)(F)



















Item 4    Ownership      (a)   Amount Beneficially Owned   1,705,855
                         (b)   Percent of Class     7.9%
                         (c)   Number of Shares as to which
                               Such Person Has:

                 (i)   sole power to vote or to direct the vote   1,705,855
                (ii)   shared power to vote or to direct the vote    0
               (iii)   sole power to dispose or to direct the
                       disposition of                             1,705,855
                (iv)   shared power to dispose or to direct the
                       disposition of                                0

Item 5         Ownership of Five Percent or Less of a Class

                Not Applicable

Item 6         Ownership of More than Five Percent on Behalf of
               Another Person

               Not Applicable

Item 7         Identification and Classification of the Subsidiary
               Which Acquired the Security Being Reported on By
               the Parent Holding Company

               Not Applicable

Item 8         Identification and Classification of Members of the Group

               Not Applicable

Item 9         Notice of Dissolution of Group

               Not Applicable












Item 10        Certification
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the
ordinary course of business and were not acquired for the purpose
of and do not have the effect of changing or influencing the
control of the issuer of such securities and were not acquired in
connection with or as a participant in any transaction having such
purposes or effect.

                         SIGNATURE

After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement
is true, complete and correct.


                          February 10, 1999
                                Date

                          Peter R. Morris
                              Signature

                          Peter R. Morris,   Executive Director/Investments
                              Name and Title