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, 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 August 4, 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 three and
          six months ended June 30, 2000 and 1999.

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

          Consolidated Condensed Statements of Cash Flows for the three
          and six months ended June 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 4.Submission of Matters to a Vote of Security Holders

   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:
                            6/30/2000    6/30/1999     6/30/2000   6/30/1999

Net Sales                  $18,931,735  $13,887,775   $35,739,767  $25,587,348

Cost and Expenses
 Costs of sales             11,180,040    9,008,843    21,034,444   17,071,057
 Selling, general and
  administrative             4,186,916    3,402,701     8,443,633    6,520,134
 Research and
  development                1,777,753    1,140,203     3,464,808    2,124,586
   Total Costs and
    Expenses                17,144,709   13,551,747    32,942,885   25,715,777

Income (Loss) from
 Operations                  1,787,026      336,028     2,796,882     (128,429)

Other income (expense)
 Interest and other
  income                       255,519      216,832       517,414      465,858
 Gain on sale of
  property, plant and
   equipment                     2,748    1,062,101         8,248    1,063,541
 Minority interests in
  consolidated subsidiaries        (98)      11,985        34,503       22,345
 Total Other Income and
  Expense                      258,169    1,290,918       560,165    1,551,744

Income  Before Taxes         2,045,195    1,626,946     3,357,047    1,423,315

Provision for Taxes            689,000      582,000     1,131,000      515,000

Net Income                 $ 1,356,195  $ 1,044,946   $ 2,226,047  $   908,315

Basic and Diluted
 Earnings Per Share              $1.16        $0.89         $1.90        $0.78

Shares Used in Per
 Share Calculation           1,170,621    1,170,727     1,170,621    1,170,727

Dividends Per Share-Cash         $0.14        $0.14         $0.28        $0.28

Total Comprehensive
 Income                    $ 1,234,119  $ 1,038,994   $ 2,203,536  $   854,768

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

                                                        June 30,      Dec 31,
                    ASSETS                                2000         1999
                                                      (Unaudited)    (Audited)
Current Assets
 Cash                                                 $ 1,455,407  $   209,277
 Investments Including Accrued Interest                18,301,176   19,649,433
 Accounts Receivable, net of reserves of
  $384,597 and $300,823 respectively                    7,535,742   10,444,430
 Inventories:
     Raw Materials                                      6,506,226    5,996,302
     Work in Process                                    5,674,196    4,803,969
     Finished Goods                                     7,464,560    5,915,057
       Total Inventories                               19,644,982   16,715,328
 Prepaid Expenses                                         510,466      287,138
 Deferred Income Tax Benefits                             658,869      658,869
     Total Current Assets                              48,106,642   47,964,475
Property, Plant and Equipment                          24,723,256   23,113,797
 Less Accumulated Depreciation                        (12,395,536) (11,684,624)
     Total Property, Plant and Equipment               12,327,720   11,429,173
Other Assets
 Deferred Income Taxes                                     83,486      122,742
 Prepaid Pension Costs                                    417,904      470,154
 Inventory Held for Future Service                        703,775      733,301
 Note Receivable                                        1,516,759    1,111,147
 Cash Value of Life Insurance                           1,721,497    1,721,497
 Goodwill, net                                          4,117,285    3,872,441
 Other Assets                                              41,140       41,140
     Total Other Assets                                 8,601,846    8,072,422
     Total Assets                                     $69,036,208  $67,466,070

                 LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities
 Accounts Payable                                     $ 3,259,684  $ 3,593,708
 Accrued Taxes on Income                                  338,432      683,133
 Other Accrued Expenses                                 2,204,788    1,927,156
 Customer Deposits                                      1,717,873    1,585,196
     Total Current Liabilities                          7,520,777    7,789,193
Noncurrent Liabilities
 Deferred and Other Noncurrent Liabilities                180,941      179,915
     Total Liabilities                                  7,701,718    7,969,108
Minority Interests                                        140,768      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                                         2,226,047    2,884,488
     Dividends - Cash                                    (327,773)    (655,598)
     Balance, End                                      58,575,924   56,677,650
 Accumulated Other Comprehensive Income:
     Unrealized Gain on Investments                       299,889      322,400
      Sub-total                                        73,172,416   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                            61,193,722   59,321,691
 Total Liabilities and Stockholders' Equity           $69,036,208  $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 6 Months Ended:
                               6/30/2000    6/30/1999    6/30/2000   6/30/1999
CASH FLOWS FROM OPERATING
ACTIVITIES
 Net income                     $1,356,195 $1,044,946   $2,226,047   $ 908,315
 Adjustments to reconcile net
  income to net cash provided by
   operating activities
  Depreciation and amortization    488,639    419,077    1,008,810     824,212
  Minority interest in
   consolidated subsidiaries            98    (11,985)     (34,503)    (22,345)
 (Gain) Loss on sale of
  property, plant and equipment     (2,748)(1,062,101)      (8,248) (1,063,541)
 Change in assets and liabilities
   Accounts receivable            (207,973)  (930,808)   2,908,688  (1,696,870)
   Inventories                    (987,162)   (37,297)  (2,900,128)    298,447
   Prepaid income taxes              --       372,518         --       422,656
   Prepaid expenses               (143,331)  (337,285)    (223,328)   (477,908)
   Prepaid pension costs             9,137     43,113       52,250      86,229
   Other assets                     (3,640)      --           --         --
   Deferred income tax benefits      --        24,999         --       (30,831)
   Accounts payable                 83,399    987,803     (334,024)    967,035
   Accrued taxes on income        (631,750)    81,983     (344,701)     81,983
   Accrued expenses               (159,155)  (204,660)     277,632      66,704
   Customer deposits               254,610    331,815      132,677     240,204
   Deferred and other noncurrent
    liabilities                    (31,499)    46,625        1,026     125,579
     Net Cash Provided by
      Operating Activities          24,820    768,743    2,762,198     729,869

CASH FLOW FROM INVESTING
ACTIVITIES
   Increase in note receivable       --          --       (405,612)   (411,202)
   Proceeds from sale of
    property, plant and equipment   13,406  1,375,940       18,906   1,382,717
   Purchases of plant and
    equipment                     (694,909)  (857,047)  (1,611,431) (1,876,885)
   Additions to goodwill          (273,624)    37,253     (551,428)   (287,002)
   Net sale (or purchase) of
    short term investments        (529,303)  (967,790)   1,365,002     732,120
     Net Cash Used In Investing
      Activities                (1,484,430)  (411,644)  (1,184,563)   (460,252)

CASH FLOWS FROM FINANCING
ACTIVITIES
   Reacquired Class B common
    shares                           --          --         (3,732)       --
   Reacquired Class A common
    shares                           --          --            --       (3,959)
   Dividends paid in cash         (163,886)  (163,899)    (327,773)   (327,799)
   Subsidiary stock reacquired
    from minority shareholder        --       (13,238)         --      (13,238)
     Net Cash Used In Financing
      Activities                  (163,886)  (177,137)    (331,505)   (344,996)

NET (DECREASE) INCREASE IN CASH (1,623,496)   179,962    1,246,130     (75,379)

CASH, BEGINNING                  3,078,903  1,472,213      209,277   1,727,554

CASH, ENDING                    $1,455,407 $1,652,175   $1,455,407  $1,652,175

            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
   Income Taxes                 $1,322,750 $  104,000   $1,492,500  $  166,400
   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 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%.   The
   proceeds of the term loan were received early 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%.  The line of credit has been obtained to provide  ERI
   with   future  working  capital.   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  six  months
ended June 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.  Cash flows from operations  decreased
during the three months ended June 30, 2000 compared to the same period  in
1999  primarily  due  to increases in inventory in the Data  Communications
segment.

    Cash flows from investing activities were used to purchase property and
equipment  including  approximately $600,000  and  $1,238,000  respectively
during  the  three  and six months ended June 30, 2000  for  new  computer,
office  and test equipment to support the growth of the Data Communications
segment.

    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  a  portion of ERI's inter-company loans due to Allen Organ  Company.
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 6 Months Ended:
                              6/30/2000    6/30/1999    6/30/2000     6/30/1999
  Net Sales to
Unaffiliated Customers
     Musical Instruments   $ 7,837,715   $ 6,062,268  $14,509,062  $12,276,826
     Data Communications     7,772,309     6,142,961   15,830,398    9,876,970
     Electronic Assemblies   2,409,061     1,312,392    3,912,916    2,525,138
     Audio Equipment           912,650       370,154    1,487,391      908,414
       Total               $18,931,735   $13,887,775  $35,739,767  $25,587,348

  Intersegment Sales
     Musical Instruments   $   105,948   $    21,189  $   179,990  $    46,501
     Data Communications          --          43,385         --         44,235
     Electronic Assemblies        --            --         15,577       37,742
     Audio Equipment             5,750        12,304        6,932       43,385
       Total               $   111,698   $    76,878  $   202,499  $   171,863

  Income from operations
     Musical Instruments   $ 1,858,932   $   181,019  $ 2,929,557  $   620,661
     Data Communications      (563,261)      200,020     (503,429)    (736,877)
     Electronic Assemblies     472,033        55,293      599,458      147,122
     Audio Equipment            19,322      (100,304)    (228,704)    (159,335)
       Total               $ 1,787,026   $   336,028  $ 2,796,882  $  (128,429)

Musical Instruments Segment
    Sales  increased $1,775,447 and $2,232,236 respectively, for the  three
and  six  months ended June 30, 2000 when compared to the same  periods  in
1999  due to higher shipments which decreased the order backlog and changes
in product mix to include the shipment of larger organ models.

    The  gross  profit percentage  increased to  41% and 39%  respectively,
in  the  three  and  six  months ended June  30,  2000  from  25%  and  27%
respectively  in the same periods in 1999. This increase is due  to  higher
sales  volume  over which to absorb fixed costs, 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
increased slightly during the three and six months ended June 30, 2000 when
compared to the same periods in 1999.

Data Communications Segment
    Sales  increased $1,629,348 and $5,953,428 respectively, for the  three
and  six  months ended June 30, 2000 when compared to the same  periods  in
1999.    Eastern   Research,  Inc.  (ERI)  sales  increased   approximately
$1,248,000  and  $4,595,000  to  $6,825,000 and  $13,234,000  respectively,
during  the three and six months ended June 30, 2000, when compared to  the
same  periods  in  1999  due to higher incoming  order  volume  through  an
expanded   customer  base.   VIR  Linear  Switch  (VIR)   sales   increased
approximately   $336,000   and  $1,313,000  to  $947,000   and   $2,596,000
respectively  during  the three and six months ended  June  30,  2000  when
compared to the same periods in 1999 primarily due to higher sales  of  its
new TAS DS1 and DS3 products.

    Gross profit margins increased to 47.9% in the first six months of 2000
from  45.3%  in the same period of 1999 due to higher sales  of  ERI's  DNX
product line and VIR's TAS DS1 and DS3 products.  The current quarter gross
margin  was  45.9% compared to 49.2% in the second quarter of 1999  due  to
production start-up costs related to new products.

     Sales   and  marketing  expenditures,  primarily  at  ERI,   increased
approximately  $517,000  (36%) and $1,307,000 (51%)  respectively  for  the
three  and six months ended June 30, 2000 when compared to the same periods
in  1999.  This was primarily due to continued efforts to promote the ERI's
products,  obtain  additional  market share and  develop  new  channels  of
distribution.

    General  and  administrative expenses increased approximately  $200,000
(36%)  and  $386,000 (35%) respectively for the three and six months  ended
June  30, 2000 when compared to the same periods in 1999, primarily related
to  additional  management and administrative personnel  added  at  Eastern
Research to support its growth.

    Research  and  development expenditures, primarily  at  ERI,  increased
approximately  $574,000  (67%) and $1,167,000 (74%)  respectively  for  the
three  and six months ended June 30, 2000 when compared to the same periods
in  1999.   These  expenditures will continue to  increase  in  the  future
reflecting the commitment to new product development.

Electronic Assemblies Segment
   Sales increased $1,096,669 and $1,387,778 respectively for the three and
six  months ended June 30, 2000 when compared to the same periods in  1999.
Gross  profit  percentages for the three and six months ended increased  to
approximately  20%  as  compared to 15% during the same  periods  in  1999.
These increases are due to higher order volume.

    Selling,  general  and  administrative   expenses  for  the  first  six
months of 2000 were approximately equal to the same period in 1999.

Audio Equipment Segment
   Sales increased $542,496 and $578,977 for the three and six months ended
June  30,  2000  when compared to the same periods in 1999.   Gross  profit
margins decreased to 38% in the first six months of 2000 as compared to 40%
in 1999.

   Selling, general and administrative costs increased during the first six
months  of 2000 when compared to the same period in 1999 from higher  sales
and marketing expenditures.

Other Income and Expense
    Investment  income increased slightly during the three and  six  months
ended  June 30, 2000 when compared to the same period in 1999 due to higher
returns on invested funds.

   Gain on Sale of Property, Plant & Equipment for the three and six months
ended  June 30, 1999 includes approximately $1,068,000 of gains related  to
the  sale  of  the Rocky Mount, NC facility which 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 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: April 20, 2000
      (b)      Election of the following directors for a one-year term:
        Steven  Markowitz,  Eugene  Moroz,  Leonard  Helfrich,  Martha
        Markowitz,  Orville  Hawk, Albert Schuster,  Jeffrey  Schucker
        and Ernest Choquette.
      (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  1999  and
        all  contracts, agreements, and employments by  the  Board  of
        Directors  and officers since the previous annual  meeting  in
        April  1999.  All resolutions were adopted by the vote of  all
        shareholders present, in person or proxy.

   Item 6.  Exhibits and Reports on Form 8-K
      (b)      No  reports  on Form 8-K were filed during  the  quarter
        ended June 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:    August 4, 2000                 /s/ STEVEN MARKOWITZ
                                        Steven Markowitz, President and
                                        Chief Executive Officer

Date:    August 4, 2000                 /s/ NATHAN S. ECKHART
                                        Nathan S. Eckhart, Treasurer,
                                        Secretary and Principal
                                        Accounting Officer