UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                          Washington, D. C. 20549
                                     
                                 FORM 10-Q
                                     
     (Mark One)
(X)   Quarterly Report Under Section 13 or 15(D) of The Securities Exchange
      Act of 1934 For Quarter Ended March 31, 1999

                       OR

( )  Transition Report Pursuant to Section 13 or 15(d) of The  Securities
     Exchange Act of 1934


                       Commission File Number 0-275


                              Allen Organ Company
          (Exact name of registrant as specified in its charter)



     Pennsylvania                       23-1263194
  (State of Incorporation)      (I.R.S. Employer Identification No.)



  150 Locust Street, P. O. Box 36, Macungie, Pennsylvania      18062-0036
  (Address of principal executive offices)                     (Zip Code)



Registrant's telephone number, including area code           610-966-2200


Indicate  by  check mark whether the registrant (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the Securities Exchange  Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject  to
such filing requirements for the past 90 days.

                         Yes    X        No _____
                                     
Number of shares outstanding of each of the issuer's classes of common
stock, as of May 7, 1999:

                    Class A - Voting           84,002  shares
                    Class B - Non-voting    1,086,709  shares
<PAGE>

                            ALLEN ORGAN COMPANY
                                     
                                   INDEX
                                     
                                                                   
Part I  Financial Information

   Item 1.Financial Statements

          Consolidated Condensed Statements of Income for the three months
          ended March 31, 1999 and 1998                              

          Consolidated Condensed Balance Sheets at March 31, 1999 and
          December 31, 1998                                                 

          Consolidated Condensed Statements of Cash Flows for the three
          months ended
          March 31, 1999 and 1998                                    

          Notes to Consolidated Condensed Financial Statements       

   Item 2.Management's Discussion and Analysis of Financial Condition and
          Results of Operations

Part II    Other Information

   Item 6.Exhibits and Reports on Form 8-K                           

   Signatures
<PAGE>
PART I  FINANCIAL INFORMATION
   ITEM 1.FINANCIAL STATEMENTS

                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                                (Unaudited)
                                     
                                            
                                              For the 3 Months Ended:
                                              3/31/99        3/31/98
                                                       
                                                     
                                                     
          Net Sales                         $11,699,573     $10,227,291
                                                     
          Costs and Expenses                         
            Costs of sales                    8,062,214       6,884,622
            Selling, general and               
             administrative                   3,117,433       2,735,359
            Research and development            984,383         785,166
             Total Costs and Expenses        12,164,030      10,405,147
                                                     
          Loss from Operations                 (464,457)       (177,856)
                                                     
          Other Income and (Expense)                 
           Interest and other income            250,466         228,530
           Minority interests in                       
            consolidated subsidiaries            10,360          54,894
             Total Other Income and                                     
             Expense                            260,826         283,424
                                                     
          (Loss) Income Before Taxes           (203,631)        105,568
                                                     
          Provision for Taxes                   (67,000)          5,000
                                                     
          Net (Loss) Income                 $  (136,631)    $   100,568
                                                     
          Basic and Diluted (Loss)            
           Earnings Per Share               $     (0.12)    $      0.09
                                                     
          Shares Used in Per Share          
           Calculation                        1,170,743       1,180,718
                                                     
          Dividends Per Share - Cash        $      0.14     $      0.14
                                                     
          Total Comprehensive       
           (Loss) Income                    $  (184,226)    $   283,610
                                     
                          See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED BALANCE SHEETS
                                     
                                                       March 31,       Dec 31,
                     ASSETS                              1999            1998
                                                      (Unaudited)     (Audited)
Current Assets                                                
  Cash                                                $ 1,472,213  $ 1,727,554
  Investments Including Accrued Interest               18,215,022   19,988,346
  Accounts Receivable                                   7,834,650    7,068,588
  Inventories:                                                
     Raw Materials                                      6,407,553    6,916,909
     Work in Process                                    5,090,001    4,932,978
     Finished Goods                                     2,668,718    2,631,290
      Total Inventories                                14,166,272   14,481,177
  Prepaid Income Taxes                                    372,518      422,656
  Prepaid Expenses                                        652,577      511,954
  Deferred Income Tax Benefits                            388,461      306,812
     Total Current Assets                              43,101,713   44,507,087
Property, Plant and Equipment                          22,413,778   21,415,237
  Less Accumulated Depreciation                       (11,763,391) (11,503,600)
     Total Property, Plant and Equipment               10,650,387    9,911,637
Other Assets                                                  
  Prepaid Pension Costs                                   599,493      642,609
  Inventory Held for Future Service                     1,221,915    1,242,754
  Note Receivable                                       1,071,088      659,886
  Cash Value of Life Insurance                          1,400,334    1,400,334
  Intangible and Other Assets, net                      3,820,517    3,625,646
     Total Other Assets                                 8,113,347    7,571,229
     Total Assets                                     $61,865,447  $61,989,953
                                    
         LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities                                           
  Accounts Payable                                    $ 1,541,664  $ 1,562,432
  Other Accrued Expenses                                1,693,649    1,422,285
  Customer Deposits                                     1,435,818    1,527,429
     Total Current Liabilities                          4,671,131    4,512,146
Noncurrent Liabilities                                        
  Deferred Liabilities                                    359,458      280,504
     Total Liabilities                                  5,030,589    4,792,650
Minority Interests                                        278,247      288,607
                                                              
STOCKHOLDERS' EQUITY                                          
  Common Stock   1999             1998            
     Class A   127,232 shares;   127,232 shares           127,232      127,232
     Class B 1,410,761 shares; 1,410,761 shares         1,410,761    1,410,761
  Capital in Excess of Par Value                       12,758,610   12,758,610
  Retained Earnings                                           
     Balance, Beginning                                54,448,760   55,725,180
     Net Loss                                            (136,631)    (616,711)
     Dividends - Cash 1999 and 1998                      (163,900)    (659,709)
     Balance, End                                      54,148,229   54,448,760
  Accumulated other comprehensive income:                     
     Unrealized Gain on Investments                        86,741      134,336
  Treasury Stock                                              
     1999-43,230 Class A shares;324,052 Class B shares(11,974,962)       --
     1998 43,120 Class A shares;324,052 Class B shares      --     (11,971,003)
       Total Stockholders' Equity                      56,556,611   56,908,696
  Total Liabilities and Stockholders' Equity          $61,865,447  $61,989,953
                                     
                          See accompanying notes.
<PAGE>                                                                    
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                (Unaudited)
                                     
                                               
                                                 For the 3 Months Ended:
                                                   3/31/99      3/31/98
  CASH FLOWS FROM OPERATING ACTIVITIES             
   Net (loss) income                           $  (136,631)   $  100,568
   Adjustments to reconcile net (loss)
    income to net cash provided 
     by operating activities                                                
     Depreciation and amortization                 405,135       378,539
     Minority interest in consolidated                
      subsidiaries                                 (10,360)      (54,894)
   Change in assets and liabilities                       
     Accounts receivable                          (766,062)       60,811
     Inventories                                   335,744      (863,094)
     Prepaid income taxes                           50,138       (37,542)
     Prepaid expenses                             (140,623)     (165,295)
     Prepaid pension costs                          43,116        60,000
     Deferred income tax benefits                  (55,830)          --
     Accounts payable                              (20,768)      (71,133)
     Accrued expenses                              271,364       221,851
     Customer deposits                             (91,611)      (72,290)
     Other noncurrent liabilities                   78,954        (1,875)
       Net Cash Used In Operating Activities                              
        Activities                                 (37,434)     (444,354)
                                                          
  CASH FLOW FROM INVESTING ACTIVITIES                     
     Increase in note receivable                  (411,202)          --
     Net additions to plant and equipment       (1,014,501)     (288,525)   
     Additions to intangibles and          
      other assets                                (324,255)      (16,483)
     Net sale of short term investments          1,699,910     1,280,968
       Net Cash (Used In) Provided by            
        Investing Activities                       (50,048)      975,960
                                                          
  CASH FLOWS FROM FINANCING ACTIVITIES                    
     Reacquired Class A common shares               (3,959)          --
     Dividends paid in cash                       (163,900)     (165,301)
       Net Cash Used In Financing Activities      (167,859)     (165,301)
                                                          
  NET (DECREASE) INCREASE IN CASH                 (255,341)      366,305
                                                          
  CASH, BEGINNING                                1,727,554     1,020,348
                                                          
  CASH, ENDING                                 $ 1,472,213    $1,386,653
                                                        
                                     
            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
  Cash paid for:                                          
     Income Taxes                              $    62,400    $   22,050
     Interest                                  $      --      $     --
                                                          
                          See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                                     
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1. Interim Financial Statements
   The  results of operations for the interim periods shown in this  report
   are  not necessarily indicative of results to be expected for the fiscal
   year.   In  the opinion of management, the information contained  herein
   reflects  all  adjustments necessary to make the results  of  operations
   for  the interim periods a fair statement of such operations.  All  such
   adjustments are of a normal recurring nature.

   Certain notes and other information have been condensed or omitted  from
   the  interim financial statements presented in the Quarterly  Report  on
   Form  10-Q.   Therefore, these financial statements should  be  read  in
   conjunction with the Company's 1998 Annual Report on Form 10-K.

2. Subsequent Event
   In  April 1999 the Company sold its manufacturing plant located in Rocky
   Mount,  North Carolina for $1,450,000 and will recognize a gain  on  the
   sale  of  approximately  $1,100,000  which  will  be  included  in   the
   Company's  financial statements for the three and six months ended  June
   30,  1999.   The  Company  announced the closing  of  this  facility  in
   October 1998 and ceased operations there effective March 31, 1999.   The
   Company has consolidated all of its Musical Instruments production  into
   its manufacturing facility in Macungie, PA.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS.

Liquidity and Capital Resources:
    Cash  flows from operating activities decreased during the three  month
period ended March 31, 1999, due to increased working capital requirements,
primarily  related  to  increases in accounts  receivable  in  the  Musical
Instruments  segment.  Inventory decreased approximately $146,000,  $78,000
and  $101,000  respectively in the Musical Instruments, Data Communications
and Audio Equipment segments during the three months ended March 31, 1999.

   Cash flows from investing activities were used to purchase approximately
$1.0 million in machinery and equipment during the three months ended March
31,  1999, including $150,000 for a new automated router in the woodworking
area  and a $550,000 payment for a new air handling system in the wood  and
metal finishing area of the Macungie, PA plant.  The total cost of the  air
handling  system project is estimated to be $950,000 of which $727,000  has
been  paid  through March 31, 1999.  Equipment purchases  of  approximately
$250,000  in  the  Data  Communications segment primarily  related  to  new
computer,  office,  and  test equipment to support the  growth  of  Eastern
Research.   The  Company estimates that Eastern Research  will  require  an
additional  $1,500,000  in  capital expenditures  to  continue  its  growth
through 1999.

Results of Operations:

Sales and Operating Income
                                             For the 3 Months Ended:
                                             3/31/99        3/31/98
    Net Sales to Unaffiliated Customers              
        Musical Instruments               $ 6,214,558     $ 6,260,509
        Data Communications                 3,734,009       2,153,213
        Electronic Assemblies               1,212,746       1,148,357
        Audio Equipment                       538,260         665,212
         Total                            $11,699,573     $10,227,291
                                                    
    Intersegment Sales
        Musical Instruments               $    25,312     $    41,169
        Data Communications                       850          62,172
        Electronic Assemblies                  37,742         247,965
        Audio Equipment                        31,081          23,855
         Total                            $    94,985     $   375,161
                                                                    
    Income (Loss) from Operations
        Musical Instruments               $   439,642     $   769,826
        Data Communications                  (936,897)     (1,037,812)
        Electronic Assemblies                  91,829         118,667
        Audio Equipment                       (59,031)        (28,537)
         Total                            $  (464,457)    $  (177,856)

Musical Instruments Segment

    Sales  decreased $45,951 in the first quarter of 1999 when compared  to
the  same period in 1998.  This decrease is due to delays in the production
process   caused   by   operational  changes  being  implemented   in   the
manufacturing  areas of the Macungie, PA plant including implementation  of
new  manufacturing  information  systems.   The  backlog  of  organ  orders
continues to remain higher than the same period in 1998.

   Gross profit margins decreased to 27.9% of sales in the first quarter of
1999 from 32.3% in the same period in 1998.  This decrease is primarily due
to the change in product mix.  The first quarter of 1998 included a greater
number of larger Renaissance models than the same period in 1999.

    Selling,  general and administrative expenses decreased  slightly  when
compared to the same period in 1998.

   Research and development expenditures increased approximately $34,000 in
the  first quarter of 1999 when compared to the same period in 1998 due  to
continuing product development efforts.

Data Communications Segment

   Sales in the first quarter of 1999 increased $1,580,796 when compared to
the  same  period in 1998 as a result of higher sales at Eastern  Research,
Inc. (ERI).  ERI increased its incoming order volume, expanded its customer
base,  and began shipping products under OEM agreements, which it  recently
entered into with other data communication equipment suppliers.

    Gross  profit margins in the first quarter of 1999 increased  to  38.8%
compared  to 36.9% in the same period of 1998 due to higher sales of  ERI's
DACS  product  line.  At the same time, gross margins on ERI's  Router  and
CSU/DSU  product lines declined as a result of competitive pressures.   The
segment will continue to focus its attention on more sophisticated high end
products, which generally have higher gross margins.

    Sales  and  marketing  expenditures  increased  approximately  $327,000
(40.6%)  in the first quarter of 1999 when compared to the same  period  in
1998  reflecting  additional  sales  and  marketing  efforts  initiated  to
continue  to promote the segments products, obtain additional market  share
and develop new channels of distribution.

    General  and  administrative expenses increased  approximately  $37,000
(7.4%)  in  the first quarter of 1999 when compared to the same  period  in
1998,  a  result of additional management and support personnel for Eastern
Research to support its growth.

   Research and development expenses increased approximately $165,000 (30%)
in  the  first  quarter of 1999 when compared to the same period  in  1998.
ERI's  expenditures  have  and will continue  to  increase  in  the  future
reflecting the commitment to new product development and support.

Electronic Assemblies Segment

    Sales  for  the first quarter of 1999 increased $64,389 over  the  same
period  in 1998 from higher order volume and changes in product  mix.   The
gross  profit percentage was 16.5% and 14.1% in the first quarter  of  1999
and  1998  respectively.   Selling,  general  and  administrative  expenses
increased  when compared to the same period in 1998 due to the addition  of
sales and marketing personnel added to grow the segments sales and customer
base.

Audio Equipment Segment

    Sales  for  the first quarter of 1999 decreased approximately  $126,952
when  compared  to the same period in 1998.  Gross profit  margins  in  the
first quarter of 1999 increased to 43.2% as compared to 36.1% for the  same
period  in 1998.  Selling, general and administrative costs for the  period
increased in the first quarter of 1999 when compared to the same period  in
1998 from increased sales and marketing expenditures.

Other Income and Expense

    Investment  income  for  the three months  ended  March  31,  1999  was
approximately equal to the same period in 1998.

Factors that May Affect Operating Results

   The statements contained in this report on Form 10-Q that are not purely
historical are forward looking statements within the meaning of Section 27A
of  the  Securities Act of 1933 and Section 21E of the Securities  Exchange
Act  of  1934,  including statements regarding the Company's  expectations,
hopes,  intentions  or  strategies regarding the future.   Forward  looking
statements  include:   statements  regarding  future  products  or  product
development; statements regarding future research and development spending;
the  Company's  marketing and product development strategy  and  statements
regarding  future  production  capacity.  All  forward  looking  statements
included in this document are based on information available to the Company
on  the  date hereof, and the Company assumes no obligation to  update  any
such  forward  looking  statements.  It  is  important  to  note  that  the
Company's actual results could differ materially from those in such forward
looking statements.  Some of the factors that could cause actual results to
differ materially are set forth below.

    The  Company  has  experienced and expects to  continue  to  experience
fluctuations  in  its  results  of operations.   Factors  that  affect  the
Company's  results of operations include the volume and  timing  of  orders
received,  changes  in the mix of products sold, market acceptance  of  the
Company's  and  its  customer's  products, competitive  pricing  pressures,
global  currency  valuations,  the Company's  ability  to  meet  increasing
demand, the Company's ability to introduce new products on a timely  basis,
the timing of new product announcements and introductions by the Company or
its  competitors,  changing customer requirements, delays  in  new  product
qualifications, the timing and extent of research and development  expenses
and fluctuations in manufacturing yields.  As a result of the foregoing  or
other  factors,  there  can  be no assurance  that  the  Company  will  not
experience material fluctuations in future operating results on a quarterly
or  annual basis, which would materially and adversely affect the Company's
business, financial condition and results of operations.

PART II    OTHER INFORMATION

   Item 6.  Exhibits and Reports on Form 8-K

   (b)    Forms 8-K
               1.   The Company filed a Form 8-K dated February 18, 1999
          announcing that its Data Communications subsidiary Eastern
          Research, Inc. has entered into an OEM agreement to supply Lucent
          Technologies with its DACS product line.


SIGNATURES

Pursuant  to the requirements of the Securities Exchange Act of  1934,  the
registrant  has duly caused this report to be signed on its behalf  by  the
undersigned thereunto duly authorized.

                                                   Allen Organ Company
                                                     (Registrant)
                                        
Date:    May 7, 1999                         /s/ STEVEN MARKOWITZ
                                             Steven Markowitz, President and
                                             Chief Executive Officer


Date:    May 7, 1999                         /s/ LEONARD W. HELFRICH
                                             Leonard W. Helfrich, 
                                             Vice President-Finance
                                             Chief Financial and Principal
                                             Accounting Officer