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 June 30, 1997

                       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 August 12, 1997:

                    Class A - Voting          84,112 shares
                    Class B - Non-voting   1,112,773 shares
<PAGE>
                            ALLEN ORGAN COMPANY
                                     
                                   INDEX
                                     
                                                                   
Part I  Financial Information

   Item 1.Financial Statements
          Consolidated Condensed Statements of Income for the six months
          ended June 30, 1997 and 1996                               

          Consolidated Condensed Balance Sheets at June 30, 1997 and
          December 31, 1996                                                 

          Consolidated Condensed Statements of Cash Flows for the six
          months ended June 30, 1997 and 1996

          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 4.Submission of Matters to a Vote of Security Holders        
   Item 5.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:      For the 6 Months Ended:
                          6/30/97       6/30/96        6/30/97       6/30/96
                                                                  
Net Sales                $9,107,033   $8,928,612    $17,985,992   $17,377,818
                                                                
Cost and expenses                                                 
 Costs of sales           6,307,370    5,659,230     12,180,629    11,054,523
 Selling, general and     
  administrative          1,963,398    1,557,709      3,716,582     3,034,996
 Research and             
  development               633,407      682,334      1,243,027     1,343,843
   Total Costs and       
    Expenses              8,904,175    7,899,273     17,140,238    15,433,362
                                                                  
                                                                  
Income from operations      202,858    1,029,339        845,754     1,944,456
                                                                  
Other Income (Expense)                                            
 Interest and other        
  income                    703,407      421,238      1,115,585     1,043,493
 Interest expense              --           --             --          (8,603)
 Minority interests in                                            
  consolidated subsidiaries   7,112       32,392         15,762        54,611
 Total Other Income and   
  Expense                   710,519      453,630      1,131,347     1,089,501
                                                                  
Income before taxes on     
 income                     913,377    1,482,969      1,977,101     3,033,957
                                                                  
Provision for taxes on  
 income                     314,000      505,000        685,000     1,047,000
                                                                  
Net Income               $  599,377   $  977,969    $ 1,292,101   $ 1,986,957
                                                                  
Earnings per share            $0.45        $0.73          $0.98         $1.47
                                                                  
Shares used in per       
share calculation         1,319,271    1,350,739      1,319,271     1,350,739
                                                                  
Dividends per share -Cash     $0.14        $0.13          $0.28         $0.26

                                      See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED BALANCE SHEETS
                                     
                                                   June 30,     Dec. 31, 
                     ASSETS                         1997          1996
                                                  (Unaudited)   (Audited)  
Current Assets                                                
  Cash                                            $   310,973  $   781,202
  Investments Including Accrued Interest           24,753,279   29,016,935
  Accounts Receivable                               4,993,893    4,817,939
  Inventories:                                                
     Raw Materials                                  8,332,518    6,449,729
     Work in Process                                7,037,566    5,912,456
     Finished Goods                                 2,097,515    1,709,962
     Total Inventories                             17,467,599   14,072,147
  Prepaid Income Taxes                                107,539      397,404
  Prepaid Expenses                                    306,845      142,769
     Total Current Assets                          47,940,128   49,228,396
Property, Plant and Equipment                      19,396,765   17,741,131
  Less Accumulated Depreciation                   (10,262,992)  (9,893,616)
     Total Property, Plant and Equipment            9,133,773    7,847,515
Other Assets                                                  
  Prepaid Pension Costs                               773,041      889,206
  Inventory Held for Future Service                 1,232,032    1,237,986
  Note Receivable                                     163,148      163,148
  Cash Value of Life Insurance                        858,217      858,217
  Intangible and Other Assets                       4,580,051    3,742,178
     Total Other Assets                             7,606,489    6,890,735
     Total Assets                                 $64,680,390  $63,966,646
                                    
                  LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities                                           
  Accounts Payable                                $   576,684  $   396,173
  Deferred Income Taxes                               134,846       60,033
  Other Accrued Expenses                              690,979      499,355
  Customer Deposits                                 1,327,432      761,739
     Total Current Liabilities                      2,729,941    1,717,300
Noncurrent Liabilities                                        
  Deferred Liabilities                                822,088      782,189
     Total Liabilities                              3,552,029    2,499,489
STOCKHOLDERS' EQUITY                                          
  Common Stock   1997           1996                          
     Class A   128,104 shares;   128,104 shares       128,104      128,104
     Class B 1,409,889 shares; 1,409,889 shares     1,409,889    1,409,889
  Capital in Excess of Par Value                   12,758,610   12,758,610
  Retained Earnings                                           
     Balance, Beginning                            52,915,056   49,786,163
     Net Income                                     1,292,101    3,865,876
     Dividends - Cash 1997 and 1996                  (370,282)    (736,983)
     Balance, End                                  53,836,875   52,915,056
  Unrealized Gain on Investments                      200,050       89,380
  Minority Interests                                  649,771      157,826
  Treasury Stock                                              
     1997 - 43,120 Class A shares
           217,840 Class B shares                  (7,854,938)        --
     1996 - 43,120 Class A shares
           170,636 Class B shares                       --      (5,991,708)
  Total Stockholders' Equity                       61,128,361   61,467,157
  Total Liabilities and Stockholders' Equity      $64,680,390  $63,966,646
                                                              
                          See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                (Unaudited)
                                    For the 3 Months         For the 6 Months
                                          Ended:                  Ended:
                                   6/30/97     6/30/96     6/30/97    6/30/96
CASH FLOWS FROM OPERATING                                                
ACTIVITIES
 Net income                      $  599,377  $  977,969  $1,292,101 $1,986,957
  Adjustments to reconcile net
 income to net cash provided by
  operating activities
   Depreciation and amortization    241,590     199,711     468,520    412,243
   Minority interest in           
    consolidated subsidiaries        (7,112)    (32,392)   ( 15,762)   (54,611)
   Change in assets and liabilities,
    (net of acquisition effects)
   (Increase) Decrease in         
     accounts receivable            (87,833)     61,679    (175,954)    16,725
   (Increase) Decrease in         
     inventories                 (1,502,425)   (584,434) (2,704,648)(1,104,701)
   (Increase) Decrease in prepaid 
     income taxes                   143,000     316,630     289,865    856,630
   (Increase) Decrease in prepaid 
     expenses                       (77,820)     53,488    (152,176)  (117,698)
   (Increase) Decrease in prepaid 
     pension costs                   48,668    (112,420)    116,165      7,580
   (Decrease) Increase in        
     accounts payable              (126,654)     (5,797)    162,206     98,622
   (Decrease) Increase in accrued
     income taxes                       --       62,190        --       62,190
   (Decrease) Increase in accrued 
     expenses                       (58,252) (1,042,861)    191,624 (1,203,934)
   (Decrease) Increase in         
     customer deposits              744,652     240,048     565,693    457,231
   (Decrease) Increase in other   
     noncurrent liabilities          41,774     (17,865)     39,899    (59,776)
      Net Cash (Used In) Provided 
       by Operating Activities      (41,035)    115,946      77,533  1,357,458

CASH FLOW FROM INVESTING                                             
ACTIVITIES
   Payment for acquisition       (1,512,000)       --    (1,512,000)      --
   Increase in other assets         (71,950)       --       (71,950)      --
   Net additions to plant and
    equipment                      (711,482)   (157,705) (1,183,146)  (274,451)
   Purchase of minority
    shareholders' interest in
     subsidiary                        --          --          --      (20,000)
   Net sale (or purchase) of      
    short term investments        3,863,863   1,063,987   4,449,139    772,653
    Net Cash Provided by (Used    
     In) Investing Activities     1,568,431     906,282   1,682,043    478,202
                                                                           
CASH FLOWS FROM FINANCING                                            
ACTIVITIES
   Reacquired Class B common     
    shares                       (1,834,342)   (620,281) (1,863,230)(1,014,661)
   Dividends paid in cash          (184,964)   (174,581)   (370,282)  (351,763)
   Subsidiary stock reacquired    
    from minority shareholder          --          --       (14,675)      --
   Subsidiary company stock         
    issued to minority shareholder     --         4,840      18,382      4,840
     Net Cash Used In Financing
      Activities                 (2,019,306)   (790,022) (2,229,805)(1,361,584)
                                                                           
NET (DECREASE) INCREASE IN CASH    (491,910)    232,206    (470,229)   474,076
                                                                           
CASH, BEGINNING                     802,883     437,970     781,202    196,100
                                                                     
CASH, ENDING                     $  310,973  $  670,176  $  310,973  $ 670,176
                                     
            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:                                                       
   Income Taxes                     171,500     293,338     395,500    293,338
   Interest                            --          --           --      51,616
                                     
  SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Purchase price adjustment of                                         
 August 1, 1995 acquisition:
 Decrease in accrued liability   $     --    $     --    $      --   $ 630,885
  incurred to purchase inventory
 Decrease in long term debt            --          --           --   1,735,000
 Decrease in minority interest         --          --           --      86,641
 Decrease in inventory                 --          --           --    (630,885)
 Decrease in intangible asset          --          --           --    (864,291)
  (Goodwill)
 Increase in current accrued           --          --           --    (957,350)
  liabilities
   Total                         $     --    $     --    $      --    $    --
                          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 1996 Annual Report on Form 10-K.

2. Acquisition of Assets
   On  April  1, 1997 the Company purchased a 75% interest in Legacy  Audio
   in exchange for $1,512,000 in cash.

   In  connection  with  the  acquisition, the company  established  a  new
   subsidiary,  Legacy  Audio, Inc. (LAI), to acquire  the  assets  of  the
   seller.   A  founding owner of the seller contributed the remaining  25%
   of  the  assets of the seller to the new company in exchange for  a  25%
   interest  in LAI.  Additionally, this founding owner has been named  the
   President and Chief Designer of LAI.

   The  acquisition has been accounted for as a purchase.  The  results  of
   operations  of  LAI  have  been included in the  Company's  consolidated
   condensed  financial  statements  from  the  date  of  the  acquisition.
   Assets  and  liabilities  have been recorded  at  their  estimated  fair
   market values with the excess being recorded as goodwill.

3. New Accounting Standards
   Statement of Financial Accounting Standards No. 128, Earnings Per  Share
   ("SFAS  128") was issued in February 1997 and is effective for financial
   statements  issued  after December 15, 1997.  The statement  establishes
   new  standards  for computing and presenting earnings per share  ("EPS")
   and   will  require  restatement  of  prior  years'  information.   This
   statement  simplifies the standards for computing EPS  previously  found
   in  APB  Opinion 15.  It replaces the presentation of primary and  fully
   diluted  EPS with a presentation of basic EPS and diluted EPS,  requires
   a  dual  presentation  on  the  face of the  financial  statements,  and
   requires   a   reconciliation  of  basic  EPS  to  diluted   EPS.    The
   presentation of basic EPS and diluted EPS would have been  the  same  as
   EPS actually reported for the respective periods.

4. Pro Forma Financial Information
   The  following pro forma financial information has been prepared  giving
   effect  to  the acquisition of Legacy Audio, Inc. as if the  transaction
   had  taken  place  at the beginning of the applicable period.   The  pro
   forma  financial  information  is  not  necessarily  indicative  of  the
   results   of  operations  which  would  have  been  attained   had   the
   acquisition been consummated on any of the foregoing dates or which  may
   be attained in the future.
                     For the 3 Months Ended:     For the 6 Months Ended:     
                            6/30/96                6/30/97        6/30/96
  Net Sales              $ 9,428,978             $18,447,795   $18,396,591
  Net Income                 985,551               1,271,914     2,002,904
  Net Income Per Share         $0.73                   $0.96         $1.48

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

Liquidity and Capital Resources:
   Cash  flows  from operating activities decreased in both the  three  and
   six  month  periods  ended  June 30, 1997, primarily  due  to  increased
   working   capital   requirements,  particularly  inventory.    Inventory
   increased  approximately $1,000,000, $925,000 and $700,000  respectively
   in   the   Musical  Instruments,  Data  Communications  and   Electronic
   Assemblies  segments  during  the  six  months  ended  June  30,   1997.
   Increases  in the Musical Instruments segment are primarily  related  to
   production  start-up  of new models introduced at the  May  1997  Dealer
   Sales  Seminar.   The  increase  in the Data  Communication  segment  is
   primarily due to higher order volume and changes in product mix  towards
   system  level  products which are more complex and require  longer  lead
   times  for  manufacture and pre-shipment testing.  The increase  in  the
   Electronic  Assemblies  segment  is primarily  due  to  increased  order
   volume.

   Cash  used  in financing activities related primarily to the  repurchase
   of Company stock.

   Cash  flows  from  investing activities reflects the Company's  sale  of
   short-term  investments  net of amounts used to purchase  equipment  and
   the  assets  of Legacy Audio.  During the first six months of  1997  the
   Company   purchased  approximately  $500,000  of  additional   automated
   equipment  for use in the manufacture of electronic assemblies.   During
   the  second  quarter  of  1997 the Company began  implementing  new
   information  systems and has invested nearly $400,000  in  software  and
   computer  equipment as part of this project which the Company  estimates
   will require another $300,000 to complete.

Results of Operations:

Sales and Operating Income
                          For the 3 Months Ended:   For the 6 Months Ended:
                           6/30/97      6/30/96       6/30/97       6/30/96
  Net Sales                                                         
   Musical Instruments   $4,908,158   $5,972,198   $10,435,621   $11,855,591
   Data Communications    2,129,804    1,864,383     4,283,190     3,493,954
   Electronic Assemblies  1,491,572    1,092,031     2,689,682     2,028,273
   Audio Equipment          577,499        --          577,499         --
    Total                $9,107,033   $8,928,612   $17,985,992   $17,377,818
                                                                    
  Income (loss) from operations
   Musical Instruments   $  187,284   $  929,340   $   734,275   $ 1,668,711
   Data Communications     (190,223)     (57,065)     (241,452)      (15,558)
   Electronic Assemblies    101,263      157,064       248,397       291,303
   Audio Equipment          104,534        --          104,534         --
    Total                $  202,858   $1,029,339   $   845,754   $ 1,944,456

Musical Instruments Segment
Sales  decreased $1,064,040 and $1,419,970 respectively for the  three  and
six  months  ended June 30, 1997 when compared to the same period  in  1996
primarily from lower foreign shipments caused by the strengthening  of  the
U.S. Dollar.  The gross profit percentage decreased to 30% in the first six
months  of 1997 compared to 33% in the same period last year.  The  current
quarter  gross  profit percentage was 28% compared to  35%  in  the  second
quarter of 1996.  These declines are due to start-up expenses of new  organ
models  introduced  at  the  May 1997 Dealer Sales  Seminar,  increases  in
overhead  costs and lower sales over which to absorb fixed costs.  Selling,
general and administrative expenses for the three and six months ended June
30, 1997 remained approximately the same as compared to the same period  in
1996. Research and development expenditures increased approximately $50,000
during the six months ended June 30, 1997 primarily due to new model
development.

Data Communications Segment
Sales  increased $265,421 and $789,236 respectively for the three  and  six
months  ended June 30, 1997 when compared to the same period in  1996  from
increased  order volume.  This is attributable to the sales  and  marketing
effort initiated since the acquisition.  Gross profit margins decreased  to
47.7%  and 48.8% respectively for the three and six months ended  June  30,
1997  when compared to 51.3% and 55.6% when compared to the same period  in
1996 from competitive pressures on selling prices and variations in product
mix.

Selling,  general  and  administrative  expenses  increased  $243,099   and
$499,768 respectively for the three and six months ended June 30, 1997 when
compared  to  the  same  period in 1996.  This was  primarily  due  to  the
expansion  of sales and marketing programs to further promote the segment's
products and obtain additional market share.

Research   and  development  expenditures  declined  $87,545  and  $137,399
respectively for the three and six months ended June 30, 1997 when compared
to  the  same  period  in 1996 primarily due to the combining  of  the  R&D
efforts of VIR, Inc. and Linear Switch Corporation.  These expenditures are
expected to increase in the future reflecting the commitment to new product
development and support.

Electronic Assemblies Segment
Sales  increased $399,541 and $661,409 respectively for the three  and  six
months  ended June 30, 1997 when compared to the same period in  1996  from
increased order volume and expanded customer base. The gross profit percentage
decreased to 11% in the first six months of 1997 compared to 15% in the same
period last year.  The current quarter gross profit percentage was 8% compared
to 18% in the second quarter of 1996.  These declines are due to higher
production and overhead costs resulting from inefficiencies in production
scheduling caused by the rapid growth in sales.  The Company is implementing
improved scheduling and cost containment measures.

Audio Equipment Segment
Sales  for  the  three  months  ended  were  $577,499.   The  gross  profit
percentage  was 47.5% of sales.  Selling, general and administrative  costs
for the period were $172,709.

Other Income and Expense
Interest  and other income for the six months ended June 30 1997  increased
slightly from the same period in 1996.  The second quarter of 1997 included
realized gains from investments which contributed to higher income in  that
quarter.

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
and  the  Company's marketing and product development strategy,  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 4.     Submission of Matters to a Vote of Security Holders
   (a)        Annual Meeting:  May 20, 1997
   (b)        Election of the following directors for a one-year term:
              Steven  Markowitz,  Eugene  Moroz,  Leonard  Helfrich,  Martha
              Markowitz, Orville Hawk, Albert Schuster and Jeffrey Schucker
   (c)        In  addition to the election of directors and the waiver
              of   reading  of  the  minutes  of  the  prior  meeting,   the
              shareholders ratified charitable deductions made in  1996  and
              all  contracts, agreements, and employment's by the  Board  of
              Directors  and officers since the previous annual  meeting  in
              May,  1996.  All resolutions were adopted by the vote  of  all
              shareholders present, in person or proxy.
   
   Item 5.     Other Information

   Business Update
   Musical Instruments
   The  Company  introduced at its May 1997 National Sales  Seminar  a  new
   organ series called Renaissance(tm).  These instruments are positioned for
   the  upper end of the organ market.  This new line utilizes advanced DSP
   (Digital  Signal  Processor)  technology  allowing  the  musician   more
   control  and  customizing capabilities including the ability  to  choose
   specific  sounds to match individual tastes.  Initial customer  response
   has been positive.

   Renaissance(tm)  continues with the Company's tradition of advancing the
   state-of-the-art   of  technology  for  keyboard  musical   instruments.
   RenaissanceT shipments will begin the third quarter and will  not  reach
   full production capacity until later this year.

   Data Communications
   Eastern  Research,  Inc.  (ERI) initially  built  its  business  in  the
   CSU/DSU  market  and  has  also  developed router  technology  products,
   sometimes  referred  to as "box" products.  More recently  this  company
   has  introduced a Digital Access Cross-connect Switch (DACs), a  systems
   product called DNX (Digital Exchange Network).  The DNX is beginning  to
   contribute  to  revenues and will become ERI's  flagship  product.   The
   company  will  integrate additional technologies  including  its  router
   technology,  along with xDSL (Digital Subscriber Line) technology,  into
   the   DNX.    In   order  to  properly  capitalize  on   this   market's
   opportunities, ERI will develop a more comprehensive marketing  strategy
   and  will  also  increase product development work.  This  will  require
   further  investment in the coming quarters.  In May 1997, Michael  Doyle
   became  ERI's President.  Michael Doyle has 20-years experience  in  the
   industry   including   positions  at  Infotron   Systems   Inc.,   Dowty
   Communications,  Inc., Teleos Communications, Inc., and Madge  Networks,
   Inc.

   VIR,  Inc.  (VIR) and Linear Switch Corporation (LSC) are  consolidating
   their  marketing and R&D functions.  These companies will focus  on  the
   test  access  market.  With the need for higher speed and more  reliable
   communications  circuits increasing, VIR/LSC will develop  new  products
   to  provide  the  ability  to access and configure  these  circuits  for
   various  test procedures.  In April of 1997, Thomas Infantino was  named
   President of VIR/LSC.  Tom brings over 25-years experience in the  field
   including  positions at T-Bar, Inc., Dynatech Communications, and  Hadax
   Electronics, Inc.


   Electronic Assemblies
   Electronic assembly sales are made through our AIA division.   AIA  has
   been  diversifying  its customer base.  The Company is  introducing  new
   manufacturing  techniques to help AIA more efficiently  serve  customers
   while  improving  the  Company's  profitability.   AIA  will  focus   on
   customers  for  which  it  can  supply a  high  degree  of  value  added
   services.

   Audio Products
   The  Company acquired the assets of Legacy Audio Company in April, 1997.
   Legacy's  production capabilities have limited its growth  in  the  past
   and  the  Company  is  taking  steps  to  increase  these  capabilities.
   Expanded marketing programs are also being implemented.

   Item 6.  Exhibits  and Reports on Form 8-K

   (b)    Forms 8-K
               1.   The Company filed a Form 8-K dated April 1, 1997
          announcing the acquisition of the assets of Legacy Audio, Inc.

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:     August 13, 1997               STEVEN MARKOWITZ
                                        Steven Markowitz, President and
                                        Chief Executive Officer

Date:     August 13, 1997               LEONARD W. HELFRICH
                                        Leonard W. Helfrich, Vice President-
                                        Finance, Chief Financial and Principal
                                        Accounting Officer