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 September 30, 2000

                       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 November 2, 2000:

                    Class A - Voting              84,002 shares
                    Class B - Non-voting       1,086,613 shares
<PAGE>
                            ALLEN ORGAN COMPANY

                                   INDEX


Part I  Financial Information

   Item 1.Financial Statements

          Consolidated Condensed Statements of Income for the nine months
          ended September 30, 2000 and 1999

          Consolidated Condensed Balance Sheets
          at September 30, 2000 and December 31, 1999

          Consolidated Condensed Statements of Cash Flows for the nine
          months ended September 30, 2000 and 1999

          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:     For the 9 Months Ended:
                          9/30/2000     9/30/1999      9/30/2000    9/30/1999

Net Sales                $17,850,297   $15,590,813    $53,590,064  $41,178,161

Cost and Expenses
 Costs of sales           10,958,677     9,483,652     31,993,121   26,554,709
 Selling, general and
  administrative           4,393,068     3,793,895     12,836,701   10,314,029
 Research and
  development              1,883,479     1,422,583      5,348,287    3,547,169
   Total Costs and
    Expenses              17,235,224    14,700,130     50,178,109   40,415,907

Income from Operations       615,073       890,683      3,411,955      762,254

Other Income and (Expense)
 Interest and other income   522,804       228,704      1,040,218      694,562
 Interest expense           (153,261)       --           (153,261)        --
 Gain (loss) on sale of
  property,plant and
   equipment                    (562)       --              7,686    1,063,541
 Minority interests in
  consolidated subsidiaries    8,474        36,331         42,977       58,676
 Total Other Income and
  Expense                    377,455       265,035        937,620    1,816,779

Income Before Taxes          992,528     1,155,718      4,349,575    2,579,033

Provision for Taxes          334,000       414,000      1,465,000      929,000

Net Income               $   658,528   $   741,718    $ 2,884,575  $ 1,650,033

Basic and Diluted
 Earnings Per Share            $0.56         $0.63          $2.46        $1.41

Shares Used in Per
 Share Calculation         1,170,619     1,170,721      1,170,619    1,170,721

Dividends Per Share-Cash       $0.14         $0.14          $0.42        $0.42

Total Comprehensive
 Income                  $   558,461   $   708,258    $ 2,761,997  $ 1,563,026

                             See accompanying notes.
<PAGE>
                      ALLEN ORGAN COMPANY AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS

                                                     September 30,    Dec 31,
                    ASSETS                               2000          1999
                                                      (Unaudited)    (Audited)
Current Assets
 Cash                                                $ 1,522,367   $   209,277
 Investments Including Accrued Interest               25,018,346    19,649,433
 Accounts Receivable, net of reserves of
  $416,994 and $300,823 respectively                   7,815,479    10,444,430
 Inventories:
    Raw Materials                                      7,385,397     5,996,302
    Work in Process                                    5,808,795     4,803,969
    Finished Goods                                     6,663,318     5,915,057
     Total Inventories                                19,857,510    16,715,328
 Prepaid Expenses                                        393,617       287,138
 Deferred Income Tax Benefits                            734,478       658,869
   Total Current Assets                               55,341,797    47,964,475
Property, Plant and Equipment                         25,505,467    23,113,797
 Less Accumulated Depreciation                       (12,864,063)  (11,684,624)
   Total Property, Plant and Equipment                12,641,404    11,429,173
Other Assets
 Deferred Income Taxes                                   122,742       122,742
 Prepaid Pension Costs                                   425,755       470,154
 Inventory Held for Future Service                       674,655       733,301
 Note Receivable                                       1,516,759     1,111,147
 Cash Value of Life Insurance                          2,068,347     1,721,497
 Goodwill, net                                         4,250,781     3,872,441
 Other Assets                                             18,592        41,140
   Total Other Assets                                  9,077,631     8,072,422
    Total Assets                                     $77,060,832   $67,466,070


                 LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities
 Notes Payable - Bank                                $ 8,000,000   $     --
 Accounts Payable                                      2,855,858     3,593,708
 Accrued Taxes on Income                                 161,902       683,133
 Other Accrued Expenses                                2,417,617     1,927,156
 Customer Deposits                                     1,627,373     1,585,196
   Total Current Liabilities                          15,062,750     7,789,193
Noncurrent Liabilities
 Deferred and Other Noncurrent Liabilities               277,491       179,915
   Total Liabilities                                  15,340,241     7,969,108
 Minority Interests                                      132,294       175,271

STOCKHOLDERS' EQUITY
 Common Stock    2000             1999
     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                                 56,677,650    54,448,760
   Net Income                                          2,884,575     2,884,488
   Dividends - Cash                                     (491,659)     (655,598)
   Balance, End                                       59,070,566    56,677,650
 Accumulated other comprehensive income:
   Unrealized Gain on Investments                        199,822       322,400
    Sub-total                                         73,566,991    71,296,653
 Treasury Stock
   2000-43,230 Class A shares;324,148 Class B shares (11,978,694)        --
   1999-43,230 Class A shares;324,052 Class B shares      --       (11,974,962)
   Total Stockholders' Equity                         61,588,297    59,321,691
    Total Liabilities and Stockholders' Equity       $77,060,832   $67,466,070

                             See accompanying notes.
<PAGE>
                      ALLEN ORGAN COMPANY AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                               For the 3 Months Ended:  For the 9 Months Ended:
                               9/30/2000    9/30/1999   9/30/2000    9/30/1999
CASH FLOWS FROM OPERATING
ACTIVITIES
 Net income                    $ 658,528   $ 741,718   $2,884,575   $1,650,033
 Adjustments to reconcile net
 income to net cash provided by
  operating activities
 Depreciation and amortization   701,991     614,817    1,710,801    1,439,029
 Minority interest in
  consolidated subsidiaries       (8,474)    (36,331)     (42,977)     (58,676)
(Gain) Loss on sale of
 property, plant and equipment       562         --        (7,686)  (1,063,541)
Change in assets and liabilities
 Accounts receivable            (279,737) (1,820,476)   2,628,951   (3,517,346)
 Inventories                    (183,408)   (938,038)  (3,083,536)    (639,591)
 Prepaid income taxes                --          --         --         422,656
 Prepaid expenses                116,849     362,005     (106,479)    (115,903)
 Prepaid pension costs            (7,851)     43,113       44,399      129,342
 Other assets                     22,548         --        22,548        --
 Deferred income tax benefits        --       24,999        --          (5,832)
 Accounts payable               (403,826)    342,207     (737,850)   1,309,242
 Accrued taxes on income        (176,530)    488,951     (521,231)     570,934
 Accrued expenses                212,829     356,473      490,461      423,177
 Customer deposits               (90,500)    134,552       42,177      374,756
 Deferred and other noncurrent
  liabilities                     96,550      59,625       97,576      185,204
   Net Cash Provided by
    Operating Activities         659,531     373,615    3,421,729    1,103,484

CASH FLOW FROM INVESTING
ACTIVITIES
 Proceeds from the sale of
  property, plant and equipment    7,800         --        26,706    1,382,717
 Additions to goodwill          (286,788)   (252,849)    (838,216)    (539,851)
 Increase in note receivable         --      (40,059)    (405,612)    (451,261)
 Purchases of plant and
  equipment                     (870,745)   (755,911)  (2,482,176)  (2,632,796)
 Increase in cash value of
  life insurance                (346,850)   (293,063)    (346,850)    (293,063)
 Net sale (or purchase) of
  short-term investments      (6,932,102)    577,569   (5,567,100)   1,309,689
   Net Cash Used in Investing
    Activities                (8,428,685)   (764,313)  (9,613,248)  (1,224,565)

CASH FLOWS FROM FINANCING
ACTIVITIES
 Proceeds from bank loans      8,000,000         --     8,000,000        --
 Reacquired Class A common shares    --          --         --          (3,959)
 Reacquired Class B common shares    --          --        (3,732)       --
 Dividends paid in cash         (163,886)   (163,900)    (491,659)    (491,699)
 Subsidiary company stock
  reacquired from minority
  shareholders                       --          --         --         (13,238)
   Net Cash Provided By (Used In)
    Financing Activities       7,836,114    (163,900)   7,504,609     (508,896)

NET INCREASE (DECREASE) IN CASH   66,960    (554,598)   1,313,090     (629,977)

CASH, BEGINNING                1,455,407   1,652,175      209,277    1,727,554

CASH, ENDING                  $1,522,367  $1,097,577   $1,522,367   $1,097,577


               SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
   Income Taxes               $  510,811  $  360,000   $2,003,311   $  526,400
   Interest                   $  153,261  $     --     $  153,261   $    --

                             See accompanying notes.
<PAGE>

                     ALLEN ORGAN COMPANY AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED 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 1999 Annual Report on Form 10-K.

2.Financing
  On  June 30, 2000 Eastern Research, Inc. (ERI), a subsidiary of the Company,
  entered  into  a  Loan  and Security Agreement with a bank.   The  agreement
  provides  ERI with two credit facilities.  The first is a term loan  in  the
  amount  of $7,000,000 due on July 1, 2001, interest only payable monthly  at
  the LIBOR Market Index Rate plus 1.25% (7.8675% at September 30, 2000).  The
  proceeds  of the term loan were received in July 2000 and all were  used  to
  repay a portion of the inter-company loans due to Allen Organ Company.   The
  second  facility is a $5,000,000 revolving line of credit, due  on  July  1,
  2001,  interest  payable monthly at the LIBOR Market Index Rate  plus  1.50%
  (8.1175%  at  September 30, 2000).  The line of credit has been obtained  to
  provide  ERI with future working capital.  Outstanding borrowings under  the
  line  of  credit  were  $1,000,000  at  September  30,  2000.   Both  credit
  facilities  have been guaranteed by Allen Diversified, Inc. and Allen  Organ
  Company.

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

Liquidity and Capital Resources:
   Cash flows from operating activities increased during the nine months ended
September 30, 2000 when compared to the same period in 1999, primarily due  to
increases  in  operating income in the Musical Instruments  segment  resulting
from higher sales volume and operational improvements.

    Cash  flows  from investing activities were used to purchase property  and
equipment including approximately $575,000 and $1,735,000 respectively  during
the  three  and nine months ended September 30, 2000 for new computer,  office
and test equipment to support the growth of Eastern Research, Inc.

    As  indicated  in Note 2 above, Eastern Research, Inc. has  obtained  bank
financing  to  provide them with future working capital as well  as  funds  to
repay $7,000,000 of ERI's inter-company loans due to Allen Organ Company.  The
proceeds of the term loan were invested in the Company's short-term investment
accounts.   These financing facilities have been obtained to begin to  provide
ERI  with  financial autonomy as the Company considers strategic  alternatives
for ERI.

Results of Operations:
Sales and Operating Income
                           For the 3 Months Ended:    For the 9 Months Ended
                            9/30/2000    9/30/1999    9/30/2000     9/30/1999
 Net Sales to
  Unaffiliated Customers
   Musical Instruments    $ 6,786,023  $ 7,361,100   $21,295,085   $19,637,926
   Data Communications      8,280,161    6,395,441    24,110,559    16,272,411
   Electronic Assemblies    2,335,438    1,484,956     6,248,354     4,010,094
   Audio Equipment            448,675      349,316     1,936,066     1,257,730
    Total                 $17,850,297  $15,590,813   $53,590,064   $41,178,161

 Intersegment Sales
   Musical Instruments    $    68,022  $     9,716   $   248,012   $    56,217
   Data Communications         57,330      127,069        57,330       171,304
   Electronic Assemblies         --           --          15,577        37,742
   Audio Equipment             10,224        1,931        17,156        45,316
    Total                 $   135,576  $   138,716   $   338,075   $   310,579

 Income (Loss) from Operations
   Musical Instruments    $ 1,090,758  $ 1,108,392   $ 4,020,315   $ 1,729,053
   Data Communications       (786,980)     (74,875)   (1,290,409)     (811,752)
   Electronic Assemblies      376,931      116,315       976,389       263,437
   Audio Equipment            (65,636)    (259,149)     (294,340)     (418,484)
    Total                 $   615,073  $   890,683   $ 3,411,955   $   762,254

Musical Instruments Segment
   Sales decreased $575,077 for the three months ended September 30, 2000 when
compared to the same period in 1999.  Sales increased $1,657,159 for the  nine
months ended September 30, 2000, when compared to the same period in 1999, due
to  improvements  in operations that lead to higher shipments which  decreased
the order backlog.

    The gross profit percentage increased to 34% and 37% respectively, in  the
three  and  nine months ended September 30, 2000 from 33% and 29% respectively
in the same periods in 1999.  This increase is due to higher sales volume over
which  to  absorb fixed costs during the nine months, changes in product  mix,
savings realized in connection with closing the Rocky Mount, NC plant on March
31, 1999, as well as other operational improvements.

    Selling,  general  and administrative, research and  development  expenses
remained  approximately the same for the three and nine months ended September
30, 2000 when compared to the same periods in 1999.

Data Communications Segment
    Sales increased $1,884,720 and $7,838,148 respectively, for the three  and
nine  months  ended September 30, 2000 when compared to the  same  periods  in
1999.   Eastern Research, Inc. (ERI) sales increased approximately  $2,027,000
and  $6,622,000 to $7,638,000 and $20,872,000 respectively, during  the  three
and nine months ended September 30, 2000, when compared to the same periods in
1999, due to higher incoming order volume.  ERI continues to add new customers
and has  also  begun to penetrate certain international markets.

    VIR  Linear Switch (VIR) sales decreased $212,000 during the three  months
ended  and  increased approximately $1,101,000 during the  nine  months  ended
September  30, 2000 to $699,000 and $3,295,000 respectively, when compared  to
the  same periods in 1999.  The increase for the first nine months of 2000 was
primarily  due  to  higher sales of its new TAS DS1  and  DS3  products.   The
decrease for the third quarter of 2000 as compared to the same period of  1999
was mainly a result of long sales cycles for the TAS DS1 and DS3 products.

   Gross  profit margins were 46.0% and 47.3% respectively for the  three  and
nine  months ended September 30, 2000, as compared to 50.9% and 47.5%  in  the
same  periods  in  1999.  Gross profit margins during the three  months  ended
September  30,  2000 decreased due to production start-up  costs  and  charges
incurred to expedite certain electronic component purchases.

   Sales and marketing expenditures increased approximately $655,000 (39%) and
$1,962,000  (46%) respectively for the three and nine months  ended  September
30, 2000 when compared to the same periods in 1999.  This was primarily due to
continued  efforts to promote ERI's products, obtain additional  market  share
and develop new channels of distribution.

    General and administrative expenses increased approximately $164,000 (27%)
and  $551,000 (32%) respectively for the three and nine months ended September
30,  2000  when  compared to the same periods in 1999, primarily  relating  to
additional management and administrative personnel added at ERI to support its
growth.

     Research  and  development  expenditures,  primarily  at  ERI,  increased
approximately $405,000 (35%) and $1,573,000 (58%) respectively for  the  three
and nine months ended September 30, 2000 when compared to the same periods  in
1999.   These expenditures will continue to increase in the future  reflecting
the company's commitment to new product development.

   Some  of  VIR  and ERI products are sold to carriers including  Competitive
Local  Exchange  Carriers (CLEC). The financial markets have recently  lowered
the  valuations for these types of companies, some of which require  continued
funding to build out their networks and deliver services.  VIR has experienced
some  delays  in completing sales to this sector.  ERI has not yet experienced
any negative affects, however, future sales to some of these customers may  be
negatively affected by their ability to raise capital.

    In  March  of  2000 the Company announced that it was exploring  strategic
alternatives for ERI.  The recent volatility in the technology sector  of  the
financial  markets  may  affect alternatives available  and  timing  for  this
process.

Electronic Assemblies Segment
   Sales increased $850,482 and $2,238,260 respectively for the three and nine
months ended September 30, 2000 when compared to the same periods in 1999, due
to  increased orders from current customers and the addition of new customers.
Gross  profit  percentages for the three and nine months  ended  increased  to
approximately  20%  as compared to 15% and 14% respectively  during  the  same
periods  in  1999 due to higher order volume over which to spread fixed  costs
and operational improvements.

    Selling, general and administrative expenses for the three and nine months
ended September 30, 2000 were approximately equal to the same periods in 1999.

Audio Equipment Segment
    Sales  increased $99,359 and $678,336 for the three and nine months  ended
September  30, 2000 when compared to the same periods in 1999, the  result  of
increased incoming orders and operational improvements.  Gross profit  margins
increased  to 42% during the nine months ended September 30, 2000 as  compared
to 40% in the same period in 1999 due to the increased sales.

    Selling, general and administrative costs increased during the nine months
ended  September 30, 2000 when compared to the same period in 1999 from higher
sales and marketing expenditures.

Other Income and Expense
    Investment  income  increased  during the  three  and  nine  months  ended
September  30,  2000 when compared to the same period in 1999  due  to  higher
returns, gains recognized on investments and higher invested balances.

    Gain  on  Sale  of Property, Plant & Equipment for the nine  months  ended
September 30, 1999 includes approximately $1,068,000 of gains related  to  the
sale of the Rocky Mount, NC facility that was closed on March 31, 1999.

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  global economics and financial markets, changes  in  the  mix  of
products  sold, market acceptance of the Company's and its customer's products
or  services,  competitive pricing pressures, global currency valuations,  the
availability  of  electronic  components  that  the  Company  purchases   from
suppliers,  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)  No reports on Form 8-K were filed during the quarter ended
          September 30, 2000.

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:   November 2, 2000            /s/ STEVEN MARKOWITZ
                                    Steven Markowitz, President and
                                    Chief Executive Officer

Date:   November 2, 2000            /s/ NATHAN S. ECKHART
                                    Nathan S. Eckhart, Treasurer, Secretary
                                    and Principal Accounting Officer