CUMMINS ENGINE COMPANY, INC., AND SUBSIDIARIES
                            EXHIBIT 10(t)
           RESTRICTED STOCK PLAN FOR NON-EMPLOYEE DIRECTORS
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1.  PURPOSE.  This Restricted Stock Plan for Non-Employee Directors ("the
    Plan") is intended to attract and retain the services of experienced
    and knowledgeable independent directors of Cummins Engine Company, Inc.
    ("the Company") for the benefit of the Company and its stockholders and
    to provide additional incentive for such directors to continue to work
    for the best interests of the Company and its stockholders.

2.  STOCK AVAILABLE FOR AWARDS.  No additional shares of the Company's
    commons stock ("Common Stock") shall be reserved for issuance under the
    Plan.  Instead, the number of shares available under the Plan shall be
    integrated with the number available for awards pursuant to the
    Company's 1992 Stock Incentive Plan ("the SIP").  Awards made under
    this plan shall reduce the number of shares of Common Stock available
    for awards under the SIP.

3.  ADMINISTRATION.  The Plan shall be administered by the Board of
    Directors of the Company ("the Board").  Subject to the express
    provisions of the Plan, the Board shall have plenary authority to
    interpret the Plan, to prescribe, amend and rescind rules and
    regulations relating to it, to determine the terms and provisions of
    the restrictions on Common Stock awards (which shall comply with and be
    subject to the terms and conditions of the Plan) and to make all other
    determinations necessary or advisable for the administration of the
    Plan.  The Board's determinations of the matters referred to in this
    Paragraph 3 shall be conclusive.

4.  PARTICIPATION IN THE PLAN.  Persons who are now or shall become
    incumbent directors of the Company who are not at the respective times
    employees of the Company or any subsidiary of the Company shall be
    eligible to participate in the Plan (an "Eligible Director").  A
    director of the Company shall not be deemed to be an employee of the
    Company solely by reason of the existence of a consulting contract or
    arrangement between such director and the Company or any subsidiary
    thereof pursuant to which the director agrees to provide consulting
    services as an independent consultant on a regular or occasional basis
    for a stated consideration.

5.  AWARDS.  Each Eligible Director shall automatically receive, in payment
    of a portion of his or her annual Board retainer fee, an annual award
    of Common Stock, restricted as to transfer for a period of six (6)
    months following the date of the award.  In the case of an initial
    award, the restriction period shall end six (6) months following the
    date of stockholder approval of the Plan.  The number of shares in each
    such annual award shall be equal to $6,000 divided by the average of
    the closing prices of Common Stock as reported on the composite tape
    of the New York Stock Exchange for the twenty (20) consecutive trading
    days immediately preceding the date of the award.  An initial automatic
    award to each Eligible Director shall be effective as of July 13, 1993,
    subject to stockholder approval of the Plan.  Following the initial
    award, each Eligible Director shall automatically receive the award on
    the date of each Annual Meeting of Shareholders of the Company.  The
    Company reserves the right to legend the share certificates for an
    appropriate period of time and to take other actions designed to assure
    compliance with applicable securities laws.

6.  CHANGES IN PRESENT COMMON STOCK.  In the event of any merger,
    consolidation, reorganization, recapitalization, stock dividend, stock
    split or other change in the corporate structure or capitalization
    affecting the Company's present Common Stock, appropriate adjustment
    shall be made by the Board in the number and kind of shares which are
    or may be awarded hereunder.

7.  EFFECTIVE DATE AND DURATION OF THE PLAN.  Awards shall be made under
    the Plan, subject to its authorization and adoption by the stockholders
    of the Company, upon its adoption by the Board of Directors, but no
    share certificates shall be issued under the Plan until the Plan shall
    have been adopted and approved at the Annual Meeting of shareholders of
    the Company next following adoption of the Plan by the Board.   If so
    adopted by stockholders, this Plan shall become effective as of July
    13, 1993.  The Plan shall terminate on December 31, 2002 (unless
    earlier discontinued by the Board) but such termination shall not
    affect the rights of the holder of any Common Stock subject to
    restriction on such date of termination.

8.  AMENDMENT OF PLAN.  The Board may suspend or discontinue the Plan or
    revise or amend it in any respect whatsoever, provided, however, that
    without approval of the stockholders, no revision or amendment shall
    change the number of shares subject to the Plan (except as provided in
    Section 6), change the definition of the class of directors eligible to
    receive awards, or materially increase the benefits accruing to
    participants under the Plan.

9.  GOVERNING LAW.  This Plan and all determinations made and actions taken
    pursuant hereto, to the extent not otherwise governed by securities
    laws of the United States, shall be governed by the laws of the State
    of Indiana and construed accordingly.