SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C. 20549
                         ______________________

                              SCHEDULE 13D

                Under the Securities Exchange Act of 1934
                           

                        Reconditioned Systems, Inc.
                            (Name of Issuer)

                             Common Stock
                     (Title of Class of Securities)

                                75624035
                             (CUSIP Number)

                             Mr. Jonas Siegel       
                           Granite Capital, L.P.
                       126 East 56th Street, 25th Floor
                          New York, New York 10022
                             (212) 407-3352
              (Name, address and telephone number of person
             authorized to receive notices and communications)

                            August 12, 1996
         (Date of event which requires filing of this statement)
                         ______________________

          If the filing person has previously filed a statement
on Schedule 13G to report the acquisition which is the subject of
this Schedule 13D, and is filing this schedule because of Rule
13d-1(b)(3) or (4), check the following box  [ ].

          Check the following box if a fee is being paid with the
statement [x].  (A fee is not required only if the reporting
person:  (1) has a previous statement on file reporting
beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of five percent
or less of such class.)  (See Rule 13d-7.)

                           Page 1 of 6 Pages
                                 




Item 1.   Security and Issuer

            This statement on Schedule 13D ("Schedule 13D") is being filed 
with respect to the Common Stock, par value [$.01] per share (the "Common 
Stock"),of Reconditioned Systems, Inc., an Arizona corporation (the "Company"), 
whose principal executive offices are located at 444 West Fairmont, Tempe,
Arizona 85282.

Item 2.   Identity and Background

          (a)  This Schedule 13D is being filed on behalf of Granite Capital,
L.P., a Delaware limited partnership ("Granite Capital").  The current general 
partners of Granite Capital are Lewis M. Eisenberg and Walter F. Harrison, III,
each of whom is a United States citizen.

          (b)  The business address of Granite Capital and Messrs. Eisenberg
and Harrison is 126 East 56th Street, 25th Floor , New York, New York 10022.

          (c)  Granite Capital is a private investment limited partnership. 
The principal occupation of Granite Capital is investing primarily in equities.
Messrs. Eisenberg and Harrison are co-chairmen of Granite Capital International 
Group L.P. ("Granite International").  The primary occupations of Messrs. 
Eisenberg and Harrison are to act as the principals in the business of Granite 
International.

          (d)  Neither Granite Capital nor either of Messrs. Eisenberg or
Harrison has, during the last five years, been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors).

          (e)  Neither Granite Capital nor either of Messrs. Eisenberg or 
Harrison has, during the last five years, been a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction and as result
of such proceeding was or is subject to a judgment decree or final order
enjoining future violations of, or prohibiting or mandating activities 
subject to, federal or state securities laws or a finding of any violation 
with respect to such laws.

                         Page 3 of 6 Pages
                               






Item 3.   Source and Amount of Funds or Other Consideration

          The Common Stock was acquired upon the mandatory conversion of the 
Series A Convertible Preferred Stock, no par value per share (the "Preferred 
Stock"), and all accrued and unpaid dividends thereon, which Granite Capital 
formerly owned, on August 12, 1996.  The Preferred Stock was purchased in 1994 
and the source of funds therefor was Granite Capital's capital.  The total 
amount of funds used by Granite Capital to purchase the Preferred Stock owned by
it was $480,011.


Item 4.   Purpose of Transaction

          The purpose of the acquisition of the shares of Preferred Stock by 
Granite Capital was for investment.  Granite Capital intends to review its 
holdings with respect to the Company on a continuing basis.  Depending on
Granite Capital's evaluation of the Company's business and prospects, and
upon future developments (including, but not limited to, market prices of 
the shares of the Common Stock and availability and alternative uses of 
funds, as well as conditions in the securities markets and general economic 
and industry conditions), Granite Capital may acquire other securities of the
Company; sell all or a portion of its shares of Common Stock or other 
securities of the Company, now owned or hereafter acquired, or maintain its 
position at current levels.

          Granite Capital has no present plans or proposals which relate to, or 
would result in, any of the matters enumerated in paragraphs (b) through (j), 
inclusive, of Item 4 of Schedule 13D.  Granite Capital may, at any time and
from time to time, review or reconsider its position with respect to the 
Company, and formulate plans or proposals with respect to any such matters.

Item 5.   Interest in Securities of the Issuer

            (a) As of the close of business on August 12, 1996, Granite Capital 
owned, within the meaning of Rule 13d-3 under the Exchange Act, 231,117 shares 
of the Common Stock.

            (b) Granite Capital has the sole power to vote and dispose of the 
231,117 shares of Common Stock owned by it.

                         Page 4 of 6 Pages
                               





            (c) Granite Capital purchased 106,669 shares of Preferred Stock 
from the Company on February 26, 1994 pursuant to a Stock Purchase Agreement, 
dated as of February 26, 1994 (the "Agreement"), among the Company, Granite 
Capital and the other purchasers of the Preferred Stock listed in Schedule A to 
the Agreement.  In consideration for the 106,669 shares of Preferred Stock, 
Granite Capital paid $4.50 per share for a total of $480,011.

            As a result of the approval of certain proposals at the annual
meeting of shareholders of the Company on August 5, 1996, the Preferred Stock 
was automatically converted into shares of Common Stock on the basis of 13 
shares of Common Stock for each share of Preferred Stock.  Immediately 
following this conversion, a one-for-six reverse stock split, which applied 
to all shareholders, became effective.  As a result, Granite Capital received 
2 and 1/6 shares of Common Stock for each share of Preferred Stock, and any 
fractional shares were rounded up.

     (d) Not applicable.

     (e) Not applicable.

ITEM 6.  Contracts, Arrangements, Understandings or Relationships
With Respect to Securities of the Issuer

      Other than as described herein, there are no contracts, understandings or 
relationships (legal or otherwise) among the persons named in Item 2 hereof and 
between such persons or any person with respect to any securities of the
Company, including but not limited to transfer or voting of any of the Common 
Stock, finder's fees, joint ventures, loan or option arrangements, puts or 
calls, guarantees of profits, division of profits or loss, or the giving or 
withholding of proxies.

ITEM 7.  Material To Be Filed As Exhibits

Not applicable.

                         Page 5 of 6 Pages