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, 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 November 4, 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 nine months
          ended September 30, 1999 and 1998

          Consolidated Condensed Balance Sheets at September 30, 1999
          and December 31, 1998

          Consolidated Condensed Statements of Cash Flows for the nine
          months ended September 30, 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:    For the 9 Months Ended:
                             9/30/99       9/30/98      9/30/99      9/30/98

Net Sales                  $15,590,813  $11,812,748   $41,178,161  $32,607,958

Cost and Expenses
 Costs of sales              9,483,652    9,049,514    26,554,709   23,373,332
 Selling, general and
  administrative             3,793,895    2,938,614    10,314,029    8,607,726
 Research and
  development                1,422,583      881,845     3,547,169    2,502,382
   Total Costs and
    Expenses                14,700,130   12,869,973    40,415,907   34,483,440

Income (Loss) from
 Operations                    890,683   (1,057,225)      762,254   (1,875,482)

Other Income (Expense)
 Interest and other
  income                       228,704      248,472       694,562      714,833
 Gain (loss) on sale of
  property, plant and
   equipment                      --          3,812     1,063,541       (3,593)
 Minority interests in
  consolidated subsidiaries     36,331      (44,760)       58,676       52,466
 Total Other Income and
  Expense                      265,035      207,524     1,816,779      763,706

Income (Loss) Before Taxes   1,155,718     (849,701)    2,579,033   (1,111,776)

Provision for Taxes            414,000     (250,000)      929,000     (332,000)

Net Income (Loss)          $   741,718  $  (599,701)  $ 1,650,033  $  (779,776)

Basic and Diluted Earnings
 (Loss) Per Share                $0.63       $(0.51)        $1.41       $(0.66)

Shares Used in Per
 Share Calculation           1,170,721    1,179,170     1,170,721    1,179,170

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

Total Comprehensive
 Income (Loss)             $   708,258  $  (774,412)  $ 1,563,026  $  (778,023)

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

                                                      September 30,    Dec 31,
                    ASSETS                                1999          1998
                                                      (Unaudited)     (Audited)
Current Assets
  Cash                                               $ 1,097,577   $ 1,727,554
  Investments Including Accrued Interest              18,544,440    19,988,346
  Accounts Receivable                                 10,585,934     7,068,588
  Inventories:
     Raw Materials                                     6,477,561     6,916,909
     Work in Process                                   4,189,024     4,932,978
     Finished Goods                                    4,516,322     2,631,290
       Total Inventories                              15,182,907    14,481,177
  Prepaid Income Taxes                                    --           422,656
  Prepaid Expenses                                       627,857       511,954
  Deferred Income Tax Benefits                           359,854       306,812
     Total Current Assets                             46,398,569    44,507,087
Property, Plant and Equipment                         22,485,923    21,415,237
  Less Accumulated Depreciation                      (11,323,466)  (11,503,600)
     Total Property, Plant and Equipment              11,162,457     9,911,637
Other Assets
  Prepaid Pension Costs                                  513,267       642,609
  Inventory Held for Future Service                    1,180,615     1,242,754
  Note Receivable                                      1,111,147       659,886
  Cash Value of Life Insurance                         1,693,397     1,400,334
  Intangible and Other Assets, net                     3,802,149     3,625,646
     Total Other Assets                                8,300,575     7,571,229
     Total Assets                                    $65,861,601   $61,989,953


                 LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities
  Accounts Payable                                   $ 2,871,674   $ 1,562,432
  Accrued Taxes on Income                                570,934         --
  Other Accrued Expenses                               1,845,462     1,422,285
  Customer Deposits                                    1,902,185     1,527,429
     Total Current Liabilities                         7,190,255     4,512,146
Noncurrent Liabilities
  Deferred Liabilities                                   465,708       280,504
     Total Liabilities                                 7,655,963     4,792,650
  Minority Interests                                     229,574       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 Income (Loss)                                 1,650,033      (616,711)
     Dividends - Cash 1999 and 1998                     (491,699)     (659,709)
     Balance, End                                     55,607,094    54,448,760
  Accumulated other comprehensive income:
     Unrealized Gain (Loss) on Investments                47,329       134,336
  Treasury Stock
    1999-43,230 Class A shares;324,052 Class B shares(11,974,962)       --
    1998-43,120 Class A shares;315,703 Class B shares        --    (11,971,003)
  Total Stockholders' Equity                          57,976,064    56,908,696
  Total Liabilities and Stockholders' Equity         $65,861,601   $61,989,953

                             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:
                                  9/30/99     9/30/98      9/30/99     9/30/98
CASH FLOWS FROM OPERATING
ACTIVITIES
 Net income (loss)             $  741,718  $ (599,701)  $1,650,033  $ (779,776)
 Adjustments to reconcile net
  income to net cash provided by
   operating activities
  Depreciation and amortization   614,817     392,718    1,439,029   1,160,631
  Minority interest in
   consolidated subsidiaries      (36,331)     44,760      (58,676)    (52,466)
  (Gain) Loss on sale of
   property, plant and equipment    --         (3,812)  (1,063,541)      3,593
 Change in assets and liabilities
  Accounts receivable          (1,820,476)   (633,476)  (3,517,346)   (931,102)
  Inventories                    (938,038)  2,295,422     (639,591)  2,045,358
  Prepaid income taxes              --       (334,000)     422,656    (487,542)
  Prepaid expenses                362,005      67,572     (115,903)   (155,733)
  Prepaid pension costs            43,113      38,124      129,342     114,374
  Deferred income tax benefits     24,999         --        (5,832)       --
  Accounts payable                342,207     339,834    1,309,242     153,574
  Accrued taxes on income         488,951         --       570,934        --
  Accrued expenses                356,473     (21,077)     423,177     320,854
  Customer deposits               134,552     (18,026)     374,756     231,562
   Other noncurrent liabilities    59,625      (1,875)     185,204      (5,625)
    Net Cash Provided by
     Operating Activities         373,615   1,566,463    1,103,484   1,617,702

CASH FLOW FROM INVESTING
ACTIVITIES
  Proceeds from the sale of
   property, plant and equipment    --          4,900    1,382,717       7,225
  Additions to intangibles and
   other assets                  (252,849)   (110,276)    (539,851)   (132,107)
  Increase in note receivable     (40,059)        --      (451,261)   (416,670)
  Purchases of plant and
   equipment                     (755,911)   (379,801)  (2,632,796) (1,071,434)
  Increase in cash value of
   life insurance                (293,063)   (244,130)    (293,063)   (244,130)
  Net sale (or purchase) of
   short-term investments         577,569    (875,701)   1,309,689   1,300,180
   Net Cash Provided by (Used in)
    Investing Activities         (764,313) (1,605,008)  (1,224,565)   (556,936)

CASH FLOWS FROM FINANCING
ACTIVITIES
  Reacquired Class A common shares  --            --        (3,959)       --
  Reacquired Class B common shares  --        (38,285)        --       (58,839)
  Dividends paid in cash         (163,900)   (165,210)    (491,699)   (495,745)
  Subsidiary company stock
   reacquired from minority
   shareholders                     --            --       (13,238)    (29,976)
  Net Cash Used In Financing
   Activities                    (163,900)   (203,495)    (508,896)   (584,560)

NET (DECREASE) INCREASE IN CASH  (554,598)   (242,040)    (629,977)    476,206

CASH, BEGINNING                 1,652,175   1,738,594    1,727,554   1,020,348

CASH, ENDING                   $1,097,577  $1,496,554   $1,097,577  $1,496,554

               SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
   Income Taxes                $  360,000  $   84,000   $  526,400  $  120,050

                             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 1998 Annual Report on Form 10-K.

2. Sale of Manufacturing Facility
   In  April  1999 the Company sold its manufacturing plant located  in  Rocky
   Mount,  North  Carolina  for  $1,360,000  (net  of  selling  expenses)  and
   recognized  a  gain  on  the  sale  of approximately  $1,068,000  which  is
   included  in  the Company's financial statements for the nine months  ended
   September 30, 1999.  The Company announced the closing of this facility  in
   October  1998  at  which  time  the Company accrued  termination  costs  of
   $415,000 of which approximately $370,000 has been paid as of September  30,
   1999.    The  Company  believes  that  the  remaining  $45,000  of  accrued
   termination   costs   is   adequate  to  cover  the   estimated   remaining
   expenditures.   The  Company ceased operations at this  facility  effective
   March  31,  1999  and  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 nine month period
ended  September 30, 1999, primarily due to a $2,800,000 increase in  accounts
receivable  and  $1,700,000 increase in inventory related  to  the  growth  of
Eastern  Research,  Inc.   Inventory decreased by $1,000,000  in  the  Musical
Instrument segment.

   Cash  flows  from investing activities were used to purchase approximately
$2,633,000  in plant and equipment during the nine months ended September  30,
1999  including $775,000 for a new air handling system in the wood  and  metal
finishing area and $150,000 for a new automated router in the woodworking area
of  the  Macungie,  PA plant.  Plant and equipment purchases of  approximately
$1,300,000  in  the  Data  Communications segment  are  primarily  related  to
leasehold  improvements, new computers, office and test equipment  to  support
the  growth of Eastern Research.  The Company estimates that Eastern  Research
will  require  an additional $400,000 in capital expenditures to continue  its
growth in 1999.


Results of Operations:

Sales and Operating Income
                            For the 3 Months Ended:   For the 9 Months Ended:
                             9/30/99      9/30/98      9/30/99       9/30/98
 Net Sales to
  Unaffiliated Customers
   Musical Instruments    $ 7,361,100   $ 6,824,925  $19,637,926   $18,732,540
   Data Communications      6,395,441     3,271,863   16,272,411     8,218,537
   Electronic Assemblies    1,484,956     1,123,344    4,010,094     3,716,136
   Audio Equipment            349,316       592,616    1,257,730     1,940,745
    Total                 $15,590,813   $11,812,748  $41,178,161   $32,607,958

 Intersegment Sales
   Musical Instruments    $     9,716   $    15,922  $    56,217   $   104,034
   Data Communic ations       127,069          --        171,304           594
   Electronic Assemblies         --          92,788       37,742       384,937
   Audio Equipment              1,931        25,754       45,316       136,801
    Total                 $   138,716   $   134,464  $   310,579   $   626,366

 Income (Loss) from Operations
   Musical Instruments    $ 1,108,392   $  (124,768) $ 1,729,053   $   849,418
   Data Communications        (74,875)     (937,965)    (811,752)   (2,888,551)
   Electronic Assemblies      116,315       (61,892)     263,437       165,276
   Audio Equipment           (259,149)       67,400     (418,484)       (1,625)
    Total                 $   890,683   $(1,057,225) $   762,254   $(1,875,482)


Musical Instruments Segment
    Sales increased $536,175 and $905,386 respectively for the three and  nine
months ended September 30, 1999 when compared to the same periods in 1998  due
to  higher  order  volume.  The backlog of organ orders  continues  to  remain
higher than the same period in 1998.

    The gross profit percentage increased to 33% and 29% of sales respectively
for the three and nine months ended September 30, 1999 compared to 17% and 25%
in   the   same   periods   in   1998.  The  1998  results   were  negatively
affected   by   additional   costs  related  to  the   Company's   operational
restructuring  of  manufacturing  processes  and  the  implementation  of  new
information systems.

    Selling,  general  and administrative expenses remained approximately  the
same  for the three and nine months ended September 30, 1999 when compared  to
the same periods in 1998.

    Research  and  development expenditures increased  approximately  $128,000
during  the nine months ended September 30, 1999 primarily due to new  product
development.

Data Communications Segment
    Segment  sales  increased $3,123,578 and $8,053,874 respectively  for  the
three  and  nine  months ended September 30, 1999 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
shipped  products under OEM agreements with other data communication equipment
companies.

   Gross  profit margins increased to 51% and 47% respectively for  the  three
and  nine months ended September 30, 1999 when compared to 38% and 39% in  the
same period in 1998 due to higher sales of ERI's DNX product line.

   Sales and marketing expenditures increased approximately $704,000 (73%) and
$1,472,000  (53%) respectively for the three and nine months  ended  September
30, 1999 when compared to the same periods in 1998.  This was primarily due to
the expansion of its efforts to further promote the segment's products, obtain
additional market share, and develop new channels of distribution.

   General and administrative expenses remained approximately the same for the
three  and  nine  months ended September 30, 1999 when compared  to  the  same
periods in 1998.

    Research  and  development expenditures increased  approximately  $512,000
(81%)  and  $925,000 (52%) for the three and nine months ended  September  30,
1999  when  compared  to  the same periods in 1998.  These  expenditures  will
continue  to  increase in the future reflecting the commitment to new  product
development.

Electronic Assemblies Segment
    Sales increased $361,612 and $293,958 respectively for the three and  nine
months ended September 30, 1999 when compared to the same period in 1998  from
increased incoming orders.

    The gross profit percentage increased to 15% and 14% in the three and nine
months  ending September 30, 1999 compared to 6% and 11% for the same  periods
in  1998.   The  1998 gross margins were negatively affected by  the  segments
restructuring of its operations along with the Musical Instruments segment.

    Selling,  general  and  administrative  expenses  increased  approximately
$86,000 during the nine months ended September 30, 1999 when compared  to  the
same period in 1998 due to increased sales and marketing efforts.

Audio Equipment Segment
    Sales decreased $243,300 and $683,015 for the three and nine months  ended
September 30, 1999 when compared to the same periods in 1998.

    The  gross  profit  percentage decreased to 38% in the nine  months  ended
September  30, 1999 as compared to 40% in 1998.  This decrease is attributable
to  changes in distribution from direct marketing to dealer audition sites  in
several  markets.   Selling,  general  and  administrative  expenses  remained
approximately the same for the three and nine months ended September 30, 1999.

    The  high-end  audio  market is going through significant  changes  as  it
evolves from the traditional two-channel to the multi-channel market, which is
utilized  in  home theater applications.  Legacy Audio has recently  developed
and has begun marketing products specifically for the home theater market.

   As previously announced, the Company has developed a line of Public Address
System  products and in connection therewith has formed Allen Audio,  Inc.  to
continue development, establish marketing and distribution for these products.
Allen  Audio  began  to incur expenses associated with the initiation  of  its
sales and marketing efforts during 1999.  Allen Audio has begun to establish a
dealer network and began shipping units for dealer stock.


Other Income and Expense
    Investment income declined slightly during the three and nine months ended
September  30, 1999 due to lower invested balances.  Gain (loss)  on  sale  of
property,  plant  and  equipment includes approximately  $1,068,000  of  gains
related to the sale of the Rocky Mount, North Carolina facility.

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 6.     Exhibits and Reports on Form 8-K
          (a)  Exhibits
               Exhibit No.   Description
               10.3   Executive Bonus Program and Endorsement Split Dollar
                      Life Insurance Agreements between the Company and Dwight
                      A. Beacham, Nathan S. Eckhart and Barry J. Holben
          (b)  No reports on Form 8-K were filed during the quarter ended
               September 30, 1999.

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 4, 1999             /s/ STEVEN MARKOWITZ
                                    Steven Markowitz, President and
                                    Chief Executive Officer

Date:  November 4, 1999             /s/ LEONARD W. HELFRICH
                                    Leonard W. Helfrich, Vice President-
                                    Finance, Chief Financial
                                    and Principal Accounting Officer