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 March 31, 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 May 6, 1997:

                    Class A - Voting          84,984 shares
                    Class B - Non-voting   1,238,184 shares
<PAGE>
                            ALLEN ORGAN COMPANY
                                     
                                   INDEX
                                     
                                                                   
Part I  Financial Information

   Item 1.Financial Statements
          Consolidated Condensed Statements of Income
          for the three months ended March 31, 1997 and 1996            

          Consolidated Condensed Balance Sheets at March 31, 1997
          and December 31, 1996                                         

          Consolidated Condensed Statements of Cash Flows for the
          three months ended March 31, 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:
                                  3/31/97          3/31/96
                                         
Net Sales                      $ 8,878,959      $ 8,449,206
                                          
Costs and expenses                       
 Costs of sales                  5,873,259        5,395,293
 Selling, general and          
  administrative                 1,753,184        1,477,287
 Research and development          609,620          661,509
 Total Costs and Expenses        8,236,063        7,534,089
                                         
Income from operations             642,896          915,117
                                         
Other Income (Expense)                   
 Interest and other income         412,178          622,255
 Interest expense                    --              (8,603)
 Minority interests in                    
   consolidated subsidiaries         8,650           22,219
 Total Other Income and Expense    420,828          635,871
                                         
Income before taxes on income    1,063,724        1,550,988
                                         
Provision for taxes on income      371,000          542,000
                                         
Net Income                     $   692,724      $ 1,008,988
                                         
Earnings per share                   $0.52            $0.74
                                         
Shares used in per share 
calculation                      1,323,883        1,360,309
                                         
Dividends per share - Cash           $0.14            $0.13
                                     
                                                 
                          See accompanying notes.
<PAGE>
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED BALANCE SHEETS
                                     
                                                      March 31,       Dec 31,
                     ASSETS                             1997           1996
                                                     (Unaudited)     (Audited)
Current Assets                                                
  Cash                                              $   802,883    $   781,202
  Investments Including Accrued Interest             28,157,525     29,016,935
  Accounts Receivable                                 4,906,060      4,817,939
  Inventories:                                                
     Raw Materials                                    6,977,242      6,449,729
     Work in Process                                  6,502,158      5,912,456
     Finished Goods                                   1,797,324      1,709,962
     Total Inventories                               15,276,724     14,072,147
  Prepaid Income Taxes                                  250,539        397,404
  Prepaid Expenses                                      217,125        142,769
  Deferred Income Tax Benefits                           50,850          --
     Total Current Assets                            49,661,706     49,228,396
Property, Plant and Equipment                        18,199,913     17,741,131
  Less Accumulated Depreciation                     (10,073,037)    (9,893,616)
     Total Property, Plant and Equipment              8,126,876      7,847,515
Other Assets                                                  
  Prepaid Pension Costs                                 821,709        889,206
  Inventory Held for Future Service                   1,235,632      1,237,986
  Note Receivable                                       163,148        163,148
  Cash Value of Life Insurance                          858,217        858,217
  Intangible and Other Assets                         3,707,551      3,742,178
     Total Other Assets                               6,786,257      6,890,735
     Total Assets                                   $64,574,839    $63,966,646
                                    
                  LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities                                           
  Accounts Payable                                  $   685,033    $   396,173
  Deferred Income Taxes                                   --            60,033
  Other Accrued Expenses                                749,231        499,355
  Customer Deposits                                     582,780        761,739
     Total Current Liabilities                        2,017,044      1,717,300
Noncurrent Liabilities                                        
  Deferred Liabilities                                  780,314        782,189
     Total Liabilities                                2,797,358      2,499,489
STOCKHOLDERS' EQUITY                                          
  Common Stock   1997              1996                          
     Class A   128,104  shares;   128,104 shares        128,104        128,104
     Class B 1,409,889  shares; 1,409,889 shares      1,409,889      1,409,889
  Capital in Excess of Par Value                     12,758,610     12,758,610
  Retained Earnings                                           
     Balance, Beginning                              52,915,056     49,786,163
     Net Income                                         692,724      3,865,876
     Dividends - Cash 1997 and 1996                    (185,318)      (736,983)
     Balance, End                                    53,422,462     52,915,056
  Unrealized (Loss) Gain on Investments                 (73,871)        89,380
  Minority Interest                                     152,883        157,826
  Treasury Stock                                                     
     1997 - 43,120 Class A shares;
           171,372 Class B shares                    (6,020,596)         --
     1996 - 43,120 Class A shares;
           170,636 Class B shares                         --        (5,991,708)
  Total Stockholders' Equity                         61,777,481     61,467,157
  Total Liabilities and Stockholders' Equity        $64,574,839    $63,966,646
                                     
                                     
                          See accompanying notes.
<PAGE>                                     
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                               (Unaudited)
                                                         For the 3 Months
                                                              Ended:
                                                       3/31/97        3/31/96
CASH FLOWS FROM OPERATING ACTIVITIES             
 Net income                                         $   692,724    $ 1,008,988
 Adjustments to reconcile net income to net            
  cash provided by operating activities               
   Depreciation and amortization                        226,930        212,532
   Minority interest in consolidated subsidiaries        (8,650)       (22,219)
 Change in assets and liabilities                      
   (Increase) Decrease in accounts receivable           (88,121)       (44,954)
   (Increase) Decrease in inventories                (1,202,223)      (520,267)
   (Increase) Decrease in prepaid income taxes          146,865        540,000
   (Increase) Decrease in prepaid expenses              (74,356)      (171,186)
   (Increase) Decrease in prepaid pension costs          67,497        120,000
   (Decrease) Increase in accounts payable              288,860        104,419
   (Decrease) Increase in accrued expenses              249,876       (161,073)
   (Decrease) Increase in customer deposits            (178,959)       217,183
   (Decrease) Increase in other noncurrent liabilities   (1,875)       (41,911)
      Net Cash Provided by Operating Activities         118,568      1,241,512
                                                       
CASH FLOW FROM INVESTING ACTIVITIES                    
   Net additions to plant and equipment                (471,664)      (116,746)
   Purchase of minority shareholders'            
    interest in subsidiary                                --           (20,000)
   Net sale (or purchase) of short term investments     585,276       (291,334)
      Net Cash Provided by (Used In)        
       Investing Activities                             113,612       (428,080)
                                                       
CASH FLOWS FROM FINANCING ACTIVITIES                   
   Reacquired Class B common shares                     (28,888)      (394,380)
   Dividends paid in cash                              (185,318)      (177,182)
   Subsidiary company stock reacquired from          
    minority shareholders                               (14,675)         --
   Subsidiary company stock issued to       
    minority shareholders                                18,382          --
      Net Cash Used In Financing Activities            (210,499)      (571,562)
                                                       
NET INCREASE (DECREASE) IN CASH                          21,681        241,870
                                                       
CASH, BEGINNING                                         781,202        196,100
                                                       
CASH, ENDING                                        $   802,883    $   437,970

            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:                                         
   Income Taxes                                     $   224,000    $     --
   Interest                                         $     --       $    51,616
                                     
  SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Purchase price adjustment of August 1, 1995            
acquisition:
   Decrease in 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 CONDENSED FINANCIAL STATEMENTS

1. 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. Subsequent Event
   On  April  1,  1997 the Company announced that it has  purchased  a  75%
   interest in Legacy Audio in exchange for $1,500,000 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 will be accounted for as a purchase.   The  results  of
   operations   of  LAI  will  be  included  in  the  companies   financial
   statements  from  the date of the acquisition.  Assets  and  liabilities
   will  be recorded at their estimated fair market values with the  excess
   being recorded as goodwill to be amortized over 40 years.



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

Sales and Operating Income
                                   For the 3 Months Ended:
                                  3/31/97          3/31/96
                                         
  Net Sales                              
     Musical Instruments         5,527,463        5,883,393
     Data Communications         2,153,386        1,629,571
     Electronic Assemblies       1,198,110          936,242
      Total                      8,878,959        8,449,206
                                         
  Income from operations
     Musical Instruments           546,991          739,371
     Data Communications           (51,229)          41,507
     Electronic Assemblies         147,134          134,239
      Total                        642,896          915,117

Musical Instruments Segment

    Sales  declined $355,930 in the first quarter of 1997 when compared  to
the  same  period  in  1996 and declined $1,970,315 when  compared  to  the
preceding quarter ended December 31, 1996.  These declines are due to lower
incoming  orders and changes in product mix.  The preceding  quarter  ended
December 31, 1996 sales reflected reductions in the order backlog for  pre-
holiday delivery of instruments.

    Gross  profit margins declined slightly to 31.3% of sales in the  first
quarter of 1997 from 31.9% and 34% when compared to the same period in 1996
and  the  preceding  quarter ended December 31, 1996, respectively.   These
declines are primarily due to changes in product mix and lower sales volume
over which to absorb fixed costs.

Selling,  general  and  administrative  expenses  increased  slightly  when
compared to the same period in 1996 and declined slightly when compared  to
the preceding quarter ended December 31, 1996.

Data Communications Segment

    Sales increased $533,177 in the first quarter of 1997 when compared  to
the  same period in 1996 and increased $111,032 from the preceding  quarter
ended December 31, 1996 from higher order volume.

    Gross  profit margins were approximately equal to the preceding quarter
ended  December  31, 1996 and decreased to 51.2% of sales from  60.6%  when
compared to the same period in 1996 due to changes in product mix.

    Selling,  general and administrative expenses in the first  quarter  of
1997  increased when compared to the same period in 1996 primarily  due  to
the  addition of personnel and expansion of marketing programs  to  further
promote  the segment's products and obtain additional market share.   These
expenses  were approximately equal to the preceding quarter ended  December
31, 1996.

   Research and development expenses declined slightly when compared to the
same  period  in  1996 and the preceding quarter ended December  31,  1996.
These  expenditures  will  increase in the future reflecting  the  segments
commitment to new product development and support.

Electronic Assemblies Segment

    Sales  for the first quarter of 1997 increased $261,868 over  the  same
period  in 1996 and $386,170 from the preceding quarter ended December  31,
1996  from  additional order volume.  Operating income increased  from  the
higher sales volume.

Other Income and Expense

    Decrease of $215,043 is primarily attributable to realized gains on sales
of investments in the first quarter of 1996 which did not reoccur in 1997.

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 March 31,1997.

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:   May 7, 1997                     STEVEN MARKOWITZ
                                        Steven Markowitz, President and
                                        Chief Executive Officer


Date:   May 7, 1997                     LEONARD W. HELFRICH
                                        Leonard W. Helfrich,
                                        Vice President - Finance
                                        Chief Financial Officer