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, 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 August 9, 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 three and
          six months ended June 30, 1999 and 1998

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

          Consolidated Condensed Statements of Cash Flows for the three
          and six months ended June 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 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:
                           6/30/99       6/30/98        6/30/99       6/30/98

Net Sales                 $13,887,775  $10,567,919   $25,587,348   $20,795,210

Cost and Expenses
 Costs of sales             9,008,843    7,439,196    17,071,057    14,323,818
 Selling, general and
  administrative            3,402,701    2,933,753     6,520,134     5,669,112
 Research and
  development               1,140,203      835,371     2,124,586     1,620,537
   Total Costs and
    Expenses               13,551,747   11,208,320    25,715,777    21,613,467

Income (Loss) from
 Operations                   336,028     (640,401)     (128,429)     (818,257)

Other Income (Expense)
 Interest and other
  income                      216,832      233,268       465,858       466,361
 Gain (loss) on sale of
  property,plant and
   equipment                1,062,101       (2,842)    1,063,541        (7,405)
 Minority interests in
  consolidated subsidiaries    11,985       42,332        22,345        97,226
 Total Other Income and
  Expense                   1,290,918      272,758     1,551,744       556,182

Income (Loss) Before Taxes  1,626,946     (367,643)    1,423,315      (262,075)

Provision for Taxes           582,000      (87,000)      515,000       (82,000)

Net Income (Loss)         $ 1,044,946  $  (280,643)  $   908,315   $  (180,075)

Basic and Diluted Earnings
 (Loss) Per Share               $0.89       $(0.24)        $0.78        $(0.15)

Shares Used in Per
 Share Calculation          1,170,727    1,180,554     1,170,727     1,180,554

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

Total Comprehensive
 Income (Loss)            $ 1,038,994  $  (287,221)  $   854,768   $    (3,611)

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

                                                        June 30,       Dec 31,
                    ASSETS                               1999           1998
                                                      (Unaudited)    (Audited)
Current Assets
  Cash                                               $ 1,652,175   $ 1,727,554
  Investments Including Accrued Interest              19,173,630    19,988,346
  Accounts Receivable                                  8,765,458     7,068,588
  Inventories:
     Raw Materials                                     6,558,053     6,916,909
     Work in Process                                   4,386,933     4,932,978
     Finished Goods                                    3,280,252     2,631,290
       Total Inventories                              14,225,238    14,481,177
  Prepaid Income Taxes                                     --          422,656
  Prepaid Expenses                                       989,862       511,954
  Deferred Income Tax Benefits                           366,692       306,812
     Total Current Assets                             45,173,055    44,507,087
Property, Plant and Equipment                         21,730,218    21,415,237
  Less Accumulated Depreciation                      (10,824,872)  (11,503,600)
     Total Property, Plant and Equipment              10,905,346     9,911,637
Other Assets
  Prepaid Pension Costs                                  556,380       642,609
  Inventory Held for Future Service                    1,200,246     1,242,754
  Note Receivable                                      1,071,088       659,886
  Cash Value of Life Insurance                         1,400,334     1,400,334
  Intangible and Other Assets, net                     3,665,317     3,625,646
     Total Other Assets                                7,893,365     7,571,229
     Total Assets                                    $63,971,766   $61,989,953

                 LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities
  Accounts Payable                                   $ 2,529,467   $ 1,562,432
  Accrued Taxes on Income                                 81,983        --
  Other Accrued Expenses                               1,488,989     1,422,285
  Customer Deposits                                    1,767,633     1,527,429
     Total Current Liabilities                         5,868,072     4,512,146
Noncurrent Liabilities
  Deferred Liabilities                                   406,083       280,504
    Total Liabilities                                  6,274,155     4,792,650
  Minority Interests                                     265,905       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)                                    908,315      (616,711)
    Dividends - Cash 1999 and 1998                      (327,799)     (659,709)
    Balance, End                                      55,029,276    54,448,760
  Accumulated Other Comprehensive Income:
    Unrealized Gain on Investments                        80,789       134,336
  Treasury Stock
    1999-43,230 Class A shares;324,052 Class B shares(11,974,962)        --
    1998-43,120 Class A shares;324,052 Class B shares      --      (11,971,003)
  Total Stockholders' Equity                          57,431,706    56,908,696
  Total Liabilities and Stockholders' Equity         $63,971,766   $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 6 Months Ended:
                                 6/30/99     6/30/98       6/30/99     6/30/98
CASH FLOWS FROM OPERATING
ACTIVITIES
 Net income (loss)              $1,044,946 $ (280,643) $  908,315   $ (180,075)
 Adjustments to reconcile net
  income (loss) to net
  cash provided by operating
  activities
  Depreciation and amortization    419,077    389,374     824,212      767,913
  Minority interest in             (11,985)   (42,332)    (22,345)     (97,226)
  consolidated subsidiaries
  (Gain) Loss on sale of
  property, plant and equipment (1,062,101)     2,842  (1,063,541)       7,405
  Change in assets and liabilities
   Accounts receivable            (930,808)  (358,437) (1,696,870)    (297,626)
   Inventories                     (37,297)   613,030     298,447     (250,064)
   Prepaid income taxes            372,518   (116,000)    422,656     (153,542)
   Prepaid expenses               (337,285)   (58,010)   (477,908)    (223,305)
   Prepaid pension costs            43,113     16,250      86,229       76,250
   Deferred income tax benefits     24,999         --     (30,831)          --
   Accounts payable                987,803   (115,127)    967,035     (186,260)
   Accrued taxes on income          81,983         --      81,983           --
   Accrued expenses               (204,660)   120,080      66,704      341,931
   Customer deposits               331,815    321,878     240,204      249,588
   Other noncurrent liabilities     46,625     (1,875)    125,579       (3,750)
    Net Cash Provided by
     Operating Activities          768,743    491,030     729,869       51,239

CASH FLOW FROM INVESTING
ACTIVITIES
   Increase in note receivable        --     (416,670)   (411,202)    (416,670)
   Proceeds from sale of property,
    plant and equipment          1,375,940        375   1,382,717        2,325
   Purchases of plant and
    equipment                     (857,047)  (396,595) (1,876,885)    (691,633)
   Additions to intangibles and
    other assets                    37,253     (5,348)   (287,002)     (21,831)
   Net sale (or purchase) of
    short term investments        (967,790)   894,913     732,120    2,175,881
    Net Cash (Used In) Provided
     by Investing Activities      (411,644)    76,675    (460,252)   1,048,072

CASH FLOWS FROM FINANCING
ACTIVITIES
   Reacquired Class B common shares   --      (20,554)       --        (20,554)
   Reacquired Class A common shares   --          --       (3,959)        --
   Dividends paid in cash         (163,899)  (165,234)   (327,799)    (330,535)
   Subsidiary stock reacquired
    from minority shareholder      (13,238)   (29,976)    (13,238)     (29,976)
      Net Cash Used In Financing
       Activities                 (177,137)  (215,764)   (344,996)    (381,065)

NET INCREASE (DECREASE) IN CASH    179,962    351,941     (75,379)     718,246

CASH, BEGINNING                  1,472,213  1,386,653   1,727,554    1,020,348

CASH, ENDING                    $1,652,175 $1,738,594  $1,652,175   $1,738,594

            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
   Income Taxes                    104,000     14,000     166,400       36,050

                          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 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 three  and  six
   months  ended June 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
   June  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 increased during the three and six
months  ended  June  30, 1999 when compared to the same  periods  in  1998,
primarily  due  to increases in operating income in the Data Communications
segment resulting from increased sales.

   Cash flows from investing activities were used to purchase approximately
$1,877,000 in machinery and equipment during the six months ended June  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.  Equipment purchases  of  approximately
$730,000  in the Data Communications segment are primarily related  to  new
computer,  office  and  test equipment to support  the  growth  of  Eastern
Research.   The  Company estimates that Eastern Research  will  require  an
additional  $1,000,000 in capital expenditures to continue  its  growth  in
1999.

Results of Operations:

Sales and Operating Income
                            For the 3 Months Ended:    For the 6 Months Ended:
                             6/30/99      6/30/98      6/30/99       6/30/98
  Net Sales to
   Unaffiliated Customers
     Musical Instruments  $ 6,062,268  $ 5,647,106    $12,276,826  $11,907,615
     Data Communications    6,142,961    2,793,461      9,876,970    4,946,674
     Electronic Assemblies  1,312,392    1,444,435      2,525,138    2,592,792
     Audio Equipment          370,154      682,917        908,414    1,348,129
       Total              $13,887,775  $10,567,919    $25,587,348  $20,795,210

  Intersegment Sales
     Musical Instruments  $    21,189  $    46,943    $    46,501  $    88,112
     Data Communications       43,385         --           44,235          594
     Electronic Assemblies       --         44,184         37,742      292,149
     Audio Equipment           12,304       87,192         43,385      111,047
       Total              $    76,878  $   178,319    $   171,863  $   491,902

  Income (loss) from operations
     Musical Instruments  $   181,019  $   204,360    $   620,661  $   974,186
     Data Communications      200,020     (912,774)      (736,877)  (1,950,586)
     Electronic Assemblies     55,293      108,501        147,122      227,168
     Audio Equipment         (100,304)     (40,488)      (159,335)     (69,025)
       Total              $   336,028  $  (640,401)   $  (128,429) $  (818,257)

Musical Instruments Segment
   Sales increased $415,162 and $369,211 respectively for the three and six
months ended June 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 decreased to 27% in the first six months
of  1999  from  30% in the same period in 1998.  The current quarter  gross
profit  percentage was 25% compared to 27% in the second quarter of  1998
due   to   changes  in  product  mix  and  inefficiencies  caused  by   the
implementation  of  new information systems and integration  of  production
from the RMI plant.

    Selling,  general  and  administrative expenses remained  approximately
equal during the three and six months ended June 30, 1999 when compared  to
the same period in 1998.

    Research  and  development expenditures increased slightly  during  the
first  six months of 1999 when compared to the same period in 1998  due  to
continuing product development efforts.

Data Communications Segment
    Sales increased $3,349,500 and $4,930,296, respectively, for the  three
and  six  months ended June 30, 1999 when compared to the same  periods  in
1998  as  a  result of higher sales at Eastern Research, Inc.  (ERI).   ERI
increased its incoming order volume, expanded its customer base, and  began
shipping  products  under  OEM  agreements with  other  data  communication
equipment companies.

    Gross profit margins increased to 49.2% and 45.3% respectively for  the
three  and six months ended June 30, 1999 compared to 43.5% and 40.6%  when
compared  to  the  same periods in 1998 due to higher sales  of  ERI's  DNX
product  line.   The  segment will continue to focus its  efforts  on  more
sophisticated high-end products which generally have higher gross margins.

    Sales and marketing expenditures increased approximately $442,000 (44%)
and $769,000 (43%) respectively for the three and six months ended June 30,
1999 when compared to the same periods in 1998.  This was primarily due  to
the  expansion  of  sales  and marketing 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 six months ended June 30, 1999 when compared  to  the  same
periods in 1998.

    Research and development expenditures increased approximately  $249,000
(41%)  and  $414,000 (36%) respectively for the three and six months  ended
June   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 declined $132,043 and $67,654 respectively for the three and  six
months ended June 30, 1999 when compared to the same period in 1998.  Gross
profit  percentages  for the three and six months ended were  approximately
equal  to  the same periods in 1998.  The segment is focusing its marketing
efforts on customers that require more sophisticated assemblies that better
utilize the Companies strengths in this field.

    Selling, general and administrative expenses increased in the first six
months of 1999 when compared to the same period in 1998 due to the addition
of  sales  and marketing personnel to grow the segment's sales and customer
base.

Audio Equipment Segment
   Sales decreased $312,763 and $439,715 for the three and six months ended
June  30, when compared to the same periods in 1998.  Gross profit  margins
increased  to  40% in the first six months of 1999 as compared  to  35%  in
1998.   Selling,  general  and administrative costs remained  approximately
equal  during the first six months of 1999 when compared to the same period
in 1998.

    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  is  presently
developing 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 the quarter ended June
30,  1999.   Allen  Audio began to establish a dealer network  and  shipped
several units for dealer stock during the second quarter.

Other Income and Expense
    Investment  income remained approximately the same for the  six  months
ended  June 30, 1999 and was slightly lower in the current quarter  due  to
lower investment yields and differences in the invested balances.

     Gain   (Loss)  on  Sale  of  Property,  Plant  &  Equipment   includes
approximately $1,068,000 of gains related to the sale of the  Rocky  Mount,
NC 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 4.     Submission of Matters to a Vote of Security Holders
   (a)        Annual Meeting:  April 29, 1999
   (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  1998  and
        all  contracts, agreements, and employments by  the  Board  of
        Directors  and officers since the previous annual  meeting  in
        April  1998.  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, 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:    August 11, 1999                /s/ STEVEN MARKOWITZ
                                        Steven Markowitz, President and
                                        Chief Executive Officer

Date:    August 11, 1999                /s/ LEONARD W. HELFRICH
                                        Leonard W. Helfrich, Vice President-
                                        Finance, Chief Financial
                                        and Principal Accounting Officer