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, 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 November 10, 1997:

                    Class A - Voting          84,112 shares
                    Class B - Non-voting   1,096,606 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, 1997 and 1996                         

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

          Consolidated Condensed Statements of Cash Flows for the nine
          months ended September 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 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:
                           9/30/97      9/30/96      9/30/97      9/30/96
                                                                      
Net Sales               $11,159,819   $8,985,237   $29,145,811  $26,363,056

Cost and expenses                                                
 Costs of sales           7,385,097    6,138,645    19,565,726   17,193,168
 Selling, general and    
  administrative          2,115,943    1,474,311     5,832,525    4,509,307
 Research and            
  development               683,197      632,148     1,926,224    1,975,991
   Total Costs and      
    Expenses             10,184,237    8,245,104    27,324,475   23,678,466

Income from operations      975,582      740,134     1,821,336    2,684,590

Other Income (Expense)                                                    
 Investment and other     
  income                    407,606      397,752     1,523,191    1,441,245
 Interest expense               --        (1,706)          --       (10,309)
 Minority interests in                                           
  consolidated subsidiaries   4,819       27,780        20,581       82,391
 Total Other Income and   
  Expense                   412,425      423,826     1,543,772    1,513,327
                                                                             
Income before taxes on   
 income                   1,388,007    1,163,960     3,365,108    4,197,917
                                                                           
Provision for taxes on    
 income                     255,000      400,000       940,000    1,447,000
                                                                           
Net Income              $ 1,133,007   $  763,960   $ 2,425,108  $ 2,750,917

Earnings per share            $0.88        $0.58         $1.89        $2.05
                                                                 
                                                                 
Shares used in per        
share calculation         1,285,336    1,344,314     1,285,336    1,344,314

Dividends per share -Cash     $0.14        $0.13         $0.42        $0.39

                             See accompanying notes.
<PAGE>
                      ALLEN ORGAN COMPANY AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                        
                                               September 30,    Dec 31,
                     ASSETS                          1997        1996
                                                 (Unaudited)   (Audited)
Current Assets                                                
  Cash                                         $    461,439  $   781,202
  Investments Including Accrued Interest         20,018,888   29,016,935
  Accounts Receivable                             5,776,783    4,817,939
  Inventories:                                                
     Raw Materials                                8,451,239    6,449,729
     Work in Process                              7,555,549    5,912,456
     Finished Goods                               1,999,684    1,709,962
     Total Inventories                           18,006,472   14,072,147
  Prepaid Income Taxes                               99,180      397,404
  Prepaid Expenses                                  270,727      142,769
     Total Current Assets                        44,633,489   49,228,396
Property, Plant and Equipment                    19,749,874   17,741,131
  Less Accumulated Depreciation                 (10,439,354)  (9,893,616)
     Total Property, Plant and Equipment          9,310,520    7,847,515
Other Assets                                                  
  Prepaid Pension Costs                             848,871      889,206
  Inventory Held for Future Service               1,324,511    1,237,986
  Note Receivable                                   203,557      163,148
  Cash Value of Life Insurance                    1,109,487      858,217
  Intangible and Other Assets                     4,509,926    3,742,178
     Total Other Assets                           7,996,352    6,890,735
     Total Assets                               $61,940,361  $63,966,646


                  LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities                                           
  Accounts Payable                              $   595,600  $   396,173
  Deferred Income Taxes                             219,261       60,033
  Other Accrued Expenses                            527,017      499,355
  Customer Deposits                               1,303,280      761,739
     Total Current Liabilities                    2,645,158    1,717,300
Noncurrent Liabilities                                        
  Deferred Liabilities                              830,783      782,189
     Total Liabilities                            3,475,941    2,499,489
STOCKHOLDERS' EQUITY                                          
  Common Stock   1997           1996                          
     Class A   127,232 shares;   128,104 shares     127,232      128,104
     Class B 1,410,761 shares; 1,409,889 shares   1,410,761    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                                   2,425,108    3,865,876
     Dividends - Cash 1997 and 1996                (536,717)    (736,983)
     Balance, End                                54,803,447   52,915,056
  Unrealized Gain (Loss) on Investments             383,768       89,380
  Minority Interest                                 599,027      157,826
  Treasury Stock                                              
     1997 - 43,120 Class A shares
           314,155 Class B shares               (11,618,425)        --
     1996 - 43,120 Class A shares
           170,636 Class B shares                      --     (5,991,708)
  Total Stockholders' Equity                     58,464,420   61,467,157
  Total Liabilities and Stockholders' Equity    $61,940,361  $63,966,646

                             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:
                               9/30/97      9/30/96      9/30/97      9/30/96
CASH FLOWS FROM OPERATING                                                   
ACTIVITIES
 Net income                     $1,133,007  $ 763,960   $2,425,108  $2,750,917
  Adjustments to reconcile                                           
   net income to net cash 
   provided by operating
   activities
   Depreciation and amortization   269,879    204,938      738,399     617,181
   Minority interest in              
   consolidated subsidiaries         9,856    (27,780)      (5,906)    (82,391)
   Change in assets and
    liabilities,(net of
    acquisition effects)
   (Increase) Decrease in       
     accounts receivable          (782,890)(1,033,598)    (958,844) (1,016,873)
   (Increase) Decrease in       
     inventories                  (631,352)  (149,733)  (3,336,000) (1,254,434)
   (Increase) Decrease in  
     prepaid income taxes            8,359    (48,914)     298,224     807,716
   (Increase) Decrease in    
     prepaid expenses               36,118    (34,385)    (116,058)   (152,083)
   (Increase) Decrease in  
     prepaid pension costs         (75,830)    62,625       40,335      70,205
   (Decrease) Increase in   
     accounts payable               18,916    (53,933)     181,122      44,689
   (Decrease) Increase in     
     accrued taxes                    --      (62,190)        --          --
   (Decrease) Increase in  
     accrued expenses             (163,962)  (193,329)      27,662  (1,397,263)
   (Decrease) Increase in
     customer deposits             (24,152)    42,480      541,541     499,711
   (Decrease) Increase in other    
     noncurrent liabilities          8,695     53,522       48,594      (6,254)
      Net Cash Provided by (Used 
       in) Operating Activities   (193,356)  (476,337)    (115,823)    881,121
                                                                              
CASH FLOW FROM INVESTING                                                
ACTIVITIES
   Payment for acquisition             --         --    (1,512,000)        --
   Increase in other assets            --         --       (71,950)        --
   Net additions to plant and     
    equipment                     (376,501)  (121,770)  (1,559,647)   (396,221)
   Increase in cash value 
    of life insurance             (251,270)  (222,130)    (251,270)   (222,130)
   Increase in note receivable     (40,409)   (40,562)     (40,409)    (40,562)
   Purchase of minority             
    shareholders' interest in
     subsidiary                        --         --         --        (20,000)
   Net sale (or purchase) of      
    investments                  5,002,524  1,838,013    9,451,663   2,610,666 
    Net Cash Provided by (Used  
     in)Investing Activities     4,334,344  1,453,551    6,016,387   1,931,753
                                                                        
CASH FLOWS FROM FINANCING                                               
ACTIVITIES
Reacquired Class B common  
 shares                         (3,763,487)  (297,375)  (5,626,717) (1,312,036)
Dividends paid in cash            (166,435)  (172,691)    (536,717)   (524,454)
Subsidiary company stock issued      
 to minority shareholders              --         --        18,382       4,840
Subsidiary company stock        
 reacquired from minority
  shareholders                     (60,600)    (3,572)     (75,275)     (3,572)
  Net Cash Used In Financing      
   Activities                   (3,990,522)  (473,638)  (6,220,327) (1,835,222)
                                                                        
NET INCREASE (DECREASE) IN CASH    150,466    503,576     (319,763)    977,652
                                                                              
CASH, BEGINNING                    310,973    670,176      781,202     196,100
                                                                        
CASH, ENDING                   $   461,439 $1,173,752  $   461,439  $1,173,752
               SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:                                                         
   Income Taxes                  $ 223,000  $ 530,000    $ 618,500  $  823,338 
   Interest                      $     --   $   1,706    $   --     $   53,322
     SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
 Purchase price adjustment of                                          
  August 1, 1995 acquisition
  Decrease of accrued liability incurred  
   to purchase inventory         $     --   $     --     $   --     $  630,885 
  Decrease in long term debt           --         --         --      1,735,000 
  Decrease in minority interest        --         --         --         86,641
  Decrease in inventory                --         --         --       (630,885)
  Decrease in intangible assets      
  (Goodwill)                           --         --         --       (864,291)
  Increase in current accrued         
   liabilities                         --         --         --       (957,350)
    Total                       $      --    $    --     $   --      $     --
                                                                                
                             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 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. Change in Accounting Estimate
   During  the  third quarter of 1997 the Company re-evaluated the useful life
   of  intangible  assets  acquired through business  acquisitions  and  began
   amortizing  these  assets  over useful lives of  3-20  years.   Previously,
   these  intangible assets were amortized over 40 years.  These changes  will
   result in an increase in amortization expense of approximately $70,000 a
   quarter.

4. 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.   The  presentation  of
   basic  EPS  and  diluted  EPS would have been  the  same  as  EPS  actually
   reported for the respective periods.

5. 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 9 Months Ended: 
                            9/30/96              9/30/97         9/30/96
     Net Sales           $ 9,424,271         $ 29,607,614      $27,820,862
     Net Income              766,081            2,509,211        2,763,427
     Net Income Per Share      $0.57                $1.95            $2.06

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,  1997,  primarily  due  to  increased  working  capital
 requirements,   particularly  inventory.   Inventory  increased  approximately
 $1,200,000, $750,000, and $1,300,000 respectively in the Musical  Instruments,
 Data Communications, and Electronic Assemblies segments during the nine months
 ended  September 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 Data Communication segments inventory increase
 is  primarily due to increased order volume and changes in product mix to
 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  nine  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
 $500,000 in software and computer equipment as part of this project which  the
 Company estimated will require another $300,000 to complete.


Sales and Operating Income
                                            
                          For the 3 Months Ended:   For the 9 Months Ended
                           9/30/97      9/30/96      9/30/97       9/30/96
  Net Sales                                                         
   Musical Instruments   $ 6,338,653  $6,065,251   $16,774,274   $17,920,842
   Data Communications     2,549,548   2,111,289     6,832,738     5,605,243
   Electronic Assemblies   1,614,003     808,698     4,303,685     2,836,971
   Audio Equipment           657,615       --        1,235,114        --
    Total                $11,159,819  $8,985,238   $29,145,811   $26,363,056
                                                                    
  Income (loss) from operations
   Musical Instruments   $   844,286  $  635,556   $ 1,578,561   $ 2,304,267
   Data Communications      (188,241)    (10,777)     (429,693)      (26,335)
   Electronic Assemblies     215,539     115,355       463,936       406,658
   Audio Equipment           103,998       --          208,532        --
    Total                $   975,582  $  740,134   $ 1,821,336   $ 2,684,590
                                                    

Musical Instruments Segment
Sales  decreased $1,146,568 for the nine months ended September 30, 1997  when
compared  to the same period in 1996 primarily from reduced foreign  shipments
caused by the strengthening of the U.S. Dollar.  Sales increased $273,402  for
the three months ended September 30, 1997 when compared to the same period  in
1996  primarily  from higher shipment of new organ models  introduced  in  May
1997.   The gross profit percentage decreased to 30% in the first nine  months
of  1997 compared to 31% in the same period last year. This decline is 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.  The current quarter gross profit percentage was 30% compared  to
27% in the third quarter of 1996.  This increase is the result of higher sales
volume,  improved  operating efficiencies, and a more  favorable  product mix.
General  and  administrative  expenses for the three  and  nine  months  ended
September  30, 1997 remained approximately the same as compared  to  the  same
period in 1996.  Research and development expenditures increased approximately
$36,000 during the nine months ended September 30, 1997 primarily due  to  new
model  development.   Selling  and advertising costs  increased  approximately
$100,000  during  the  nine months ended September 30, 1997  as  a  result  of
marketing and advertising of new products.

Data Communications Segment
Sales  increased $438,259 and $1,227,495 respectively for the three  and  nine
months ended September 30, 1997 when compared to the same period in 1996  from
increased order volume.  This is attributable to increased sales and marketing
efforts  initiated since the acquisition.  Gross profit margins  decreased  to
47%  and  48%  respectively for the three and nine months ended September  30,
1997  when  compared  to  48% and 52% in 1996 from  competitive  pressures  on
selling prices and variations in product mix.

Selling,  general and administrative expenses increased $305,346 and  $805,114
respectively  for  the  three and nine months ended September  30,  1997  when
compared to the same period in 1996.  These increases are primarily due to the
expansion of the sales and marketing programs to further promote the segment's
products and obtain additional market share.

Research  and  development expenditures declined $96,340 for the  nine  months
ended  September 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.  Research and development expenditures increased $41,059 for  the
three  months  ended September 30, 1997 when compared to the  same  period  in
1996,  reflecting  the  Company's commitment to new  product  development  and
support.

Electronic Assemblies Segment
Sales  increased $805,305 and $1,466,714 respectively for the three  and  nine
months ended September 30, 1997 when compared to the same period in 1996  from
increased  order  volume  and  expanded  customer  base.   The  gross   profit
percentage decreased to 15% in the first nine months of 1997 compared  to  16%
for  the same period in 1996.  This decline is due to higher production  costs
related to inefficiencies in production scheduling caused by the rapid  growth
in sales.  The current quarter gross profit percentage was 20% compared to 16%
in  the  third quarter of 1996.  This increase is related to the higher  sales
volume  over which to absorb fixed costs.  Selling, general and administrative
expenses remained approximately equal to the same periods in 1996.

Audio Equipment Segment
Sales  for  the three months ended September 30, 1997 increased  $80,116  when
compared to the three months ended June 30, 1997.  The gross profit percentage
was  49%  of sales.  Selling, general and administrative costs for the  period
increased  $45,403  as compared to the prior quarter from expanded  sales  and
marketing   efforts   and   personnel  additions  required   for   sales   and
administrative support.

Other Income and Expense
Investment and  other  income for  the nine months ended September  30, 1997
increased slightly compared to the same period in 1996.

Provision for Taxes on Income
The  decrease in the 1997 tax provision is attributable to a decrease  in  the
estimated effective tax rate for the current and prior tax year resulting from
the utilization of state tax planning opportunities.

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
   
   (b)    Forms 8-K
               1.   The Company filed a Form 8-K dated July 31, 1997
          announcing the change in the Company's certifying accountant.
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 11, 1997          STEVEN MARKOWITZ
                                    Steven Markowitz, President and
                                    Chief Executive Officer

Date:    November 11, 1997          LEONARD W. HELFRICH
                                    Leonard W. Helfrich, Vice President-
                                    Finance, Chief Financial and Principal
                                    Accounting Officer