UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                          Washington, D. C. 20549

                                 FORM 10-K

     (Mark One)
(X)  Annual Report Pursuant to Section 13 or 15(d) of The Securities
     Exchange Act of 1934 For the Fiscal Year Ended December 31, 1995

                       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)      (IRS 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

       Securities registered pursuant to section 12 (b) of the Act:
                                     
                                   None
                                     
       Securities registered pursuant to section 12 (g) of the Act:

               Class B Common Shares, par value $1 per share
                             (Title of Class)

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

Indicate by check mark if disclosure of delinquent filers pursuant to  Item
405  of  Regulation S-K is not contained herein, and will not be contained,
to  the  best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K  or  any
amendment of this Form 10-K.  ( X )

The  Class  A voting stock of the registrant is not registered pursuant  to
the  Securities  Exchange  Act  of  1934,  is  not  publicly  traded,  and,
therefore, no market value information exists for such stock held  by  non-
affiliates.

The number of shares outstanding of each of the Registrant's classes of
common stock, as of the close of business on March 18, 1996:

Class A - Voting    84,984           Class B - Non-voting  1,267,948
<PAGE>                            
                            ALLEN ORGAN COMPANY
                                     
                                   INDEX
                                     
                                     
Item Page No.

                                     
                                  PART I

1. Business
      - General developments of business                       
      - Industry Segments                                      
      - Description of business                                
      - Financial information about foreign operations and export sales

2. Properties                                                  
3. Legal Proceedings                                           
4. Submission of Matters to a Vote of Security Holders         

                                     
                                  PART II

5. Market for the Registrants Common Stock and
      Related Security Holder Matters                          
6. Selected Financial Data                                     
7. Management's Discussion and Analysis of Financial Condition and
      Results of Operations                                    
8. Financial Statements                                        
9. Changes in and Disagreements with Accountants on Accounting
      and Financial Disclosure                                 

                                     
                                 PART III

10.   Directors and Executive Officers of the Registrant       
11.   Executive Compensation                                   
12.   Security Ownership of Certain Beneficial Owners and Management
13.   Certain Relationships and Related Transactions           

                                     
                                  PART IV

14.   Exhibits, Financial Statement Schedules and Reports on Form 8-K

Signatures                                                     

Exhibit                                                          
<PAGE>                                  
                                  PART I
Item 1.    Business

           General developments of business.
                Incorporated  in Pennsylvania in 1945, Allen Organ  Company
           and   Subsidiaries   ("Company")  operate  in   three   industry
           segments:   musical   instruments,   data   communications   and
           electronic assemblies.
                On August 1, 1995, the Company acquired the assets of three
           companies  in  the  data  communications  industry.   For   more
           information  on  the acquisition, see Note 2  to  the  financial
           statements.

           Industry segments.
                The  Company  operates in three industry segments:  musical
           instruments,  data  communications  and  electronic  assemblies.
           For  financial information concerning the segments, see Note  16
           to the financial statements.

           Description of business.
               Musical Instruments.
                Allen  Organ Company and its wholly owned subsidiary  Rocky
           Mount  Instruments  is  a  leading  manufacturer  of  electronic
           keyboard   musical  instruments,  primarily  digital  electronic
           church organs and accessories.  This segment accounted for  81%,
           87% and 89% of revenue in 1995, 1994 and 1993 respectively.
                The  principal  market for the musical instruments  segment
           are  institutions, primarily churches.  Sales to the home market
           make  up a smaller portion of the segment's sales. The segment's
           musical  instruments  are  distributed mostly  through  dealers,
           primarily independent retail music stores throughout the  United
           States, with a lesser percentage distributed internationally.
                The  principal raw materials used in the segment's products
           are  electronic components and wood, both of which  are  readily
           available from various sources without undue difficulty.
                Although the segment has two major selling cycles,  peaking
           at  Easter  and Christmas, the difference between these  periods
           and  the rest of the fiscal year sales is not significant enough
           for the segment to deem its business as seasonal.
                The  Company's working capital is sufficient  to  meet  the
           normal  expansion  of  inventory and receivables.  No  excessive
           inventories  are required to meet rapid delivery.   The  segment
           does  not  engage  in any significant amounts  of  consignments,
           extended payment terms, or lease guarantees of its customers  as
           are  utilized  by  the industry.  The Company has  entered  into
           product  repurchase  agreements  concerning  certain  customers'
           financing   arrangements.   See  Note   9   to   the   financial
           statements.  The dollar amounts and number of times the  Company
           has had to honor these repurchase agreements are negligible.
                The  musical  instruments segment is not dependent  on  any
           single,  or  small group of customers, the loss of  which  would
           have a material adverse effect on the business.
                The  dollar amount of the segment's unshipped order backlog
           at  the end of February 1996 and 1995 was $3.2 million and  $2.8
           million  respectively.  All orders are expected to be filled  in
           the current year.
                The  electronic organ industry is competitive involving  at
           least  five  (5) domestic and foreign companies.   In  addition,
           there  are  many small pipe organ companies in the institutional
           organ   market.   The  organ  market  consists  of   two   basic
           divisions,  institutional  (primarily  churches)  and  home   or
           entertainment.  The Company believes it has a major position  in
           the  institutional  market  because of  product  performance  at
           competitive  prices, and a smaller percentage  of  the  home  or
           entertainment  market  which is dominated by  special  marketing
           techniques.

               Data Communications.
                The data communications segment began during 1995 with  the
           acquisition  discussed  in Note 2 to the  financial  statements.
           This  segment  for  the 5 month period from acquisition  through
           December 31, 1995 accounted for 9% of 1995 revenues.
                 Data   communications  products  are  sold  primarily   to
           wholesale and retail distributors worldwide.
                The  principal raw material used in the data communications
           products  are electronic components, which are readily available
           from various sources without undue difficulty.
                The  data  communications segment is not dependent  on  any
           single,  or  small group of customers the loss  of  which  would
           have a material adverse effect on the business.
                 The   segment   operates  through  three  majority   owned
            subsidiaries:
                
                VIR,  Inc.  (VIR)   Designs, manufactures,  and  markets  a
            number  of  data  communication products  including  patch  and
            testing  equipment, often referred to as tech control products.
            The  products  are  of  varying  complexity  and  are  used  to
            connect,  test  and trouble shoot data lines in large  computer
            installations.
                The  company  competes in a relatively mature  field.   The
            company  has approximately four major competitors all of  which
            are  larger  than VIR.  The company has not been aggressive  in
            its  marketing  efforts  in the past and  has  maintained  it's
            market  share by having a reputation for producing high quality
            products   at   competitive  prices.   Since  the  acquisition,
            management  has  begun work on implementing a  more  aggressive
            sales and marketing program.
                The dollar amount of unshipped order backlog at the end  of
            February,  1996  was $324,000.  All orders are expected  to  be
            filled in the current year.
                
                Eastern  Research,  Inc. (ERI)  Designs  and  markets  data
            inter-networking  products.   These  products  include   direct
            access  equipment that allow users to utilize a broad range  of
            services offered by the telephone companies.
                The  company competes in a market which is in excess of  $3
            billion.  However, the company's current and projected  product
            lines  and  sales programs are targeted at only a  fraction  of
            that market.  There are many  competitors in this market.   The
            market  is  dominated  by  several  large  data  communications
            companies, such as Cisco Systems, Inc., AT&T Paradyne  and  ADC
            Kentrox.   The company's strategy has been to target  existing,
            yet  still growing, markets with new products that provide  new
            features and packaging with attractive pricing.  Direct  access
            products  are  relatively inexpensive and easy to  manufacture,
            thus  this  is a competitive field where margins can  erode  as
            new products emerge.
                The dollar amount of unshipped order backlog at the end  of
            February,  1996  was $69,000.  All orders are  expected  to  be
            filled in the current year.
                
                Linear  Switch Corporation (LSC)  Company has  developed  a
            matrix  switch  which can transport high-speed digital  signals
            and   allow   "any-to-any"  connectivity  between   and   among
            connections.
                 The   company  competes  with  approximately  five   other
            companies  in  the  matrix  switch  market.   This  market   is
            dominated  by  General Signal Networks.  The Company's  product
            targets  applications which require a relatively  small  matrix
            switch  whose  cost per port is low.  The Company has  recently
            begun  a formal marketing program.  Potential customers include
            government agencies and large companies.

               Electronic Assemblies.
                Allen Integrated Assemblies (AIA), a division of the  Allen
           Organ  Company, provides subcontract manufacture  of  electronic
           assemblies  for  outside customers.  The  electronic  assemblies
           segment   is   an   outgrowth  of  the  technical   skills   and
           manufacturing capabilities developed by the Company in  its  own
           musical  instruments business. This segment accounted  for  10%,
           13%  and  11%  of revenue in 1995, 1994, and 1993  respectively.
           AIA receives a majority of its business from one customer.
                The  electronic assemblies segment is very competitive with
           numerous  manufacturers  capable of  producing  these  products.
           Customers  are generally obtained from a geographic  area  close
           to the manufacturer.
                The  dollar amount of the segment's unshipped order backlog
           at  the  end of February 1996 and 1995 was $551,000 and $303,000
           respectively.   All  orders are expected to  be  filled  in  the
           current year.
               General.
                 The  Company  spent  $612,631,  $625,190,  and  $1,307,691
           annually  in  1993, 1994, and 1995 respectively on research  and
           development.  The majority of the 1995 increase in research  and
           development expense relates to the amounts expended by the  data
           communications segment acquired in 1995.
                The  Company and its subsidiaries employ approximately  525
           persons.
                The  Company is not aware of any problem in complying  with
           applicable  federal, state, or local provisions with  regard  to
           the  environment. The manufacturing requirements do not  require
           any special expenditures to meet environmental compliance.

           Financial  information  about  foreign  operations  and   export
           sales.
                The  Company does not own manufacturing or sales facilities
           in  any  foreign  countries.   See  Note  15  to  the  financial
           statements, for additional information on export sales.
                Export  sales are all made in US dollars and for  the  most
           part are made under Letter of Credit or on a prepaid basis.
                Effective  January  3,  1994,  the  Company  established  a
           Foreign  Sales  Corporation within the meaning of  the  Internal
           Revenue  Code  of 1986.  This wholly-owned subsidiary  is  Allen
           Organ International, Inc., a Virgin Islands corporation.

Item 2.    Properties

                  The following sets forth the location, approximate square
            footage and use of the Company's operating locations segregated
            by  segment.   The  Company believes that  its  facilities  are
            generally suitable and adequate for its needs.

                                   Approximate
                 Location         Square Footage             Use

            Musical Instruments and Electronic Assemblies:
            Macungie, Pennsylvania     242,000  Administrative,  research  and
                                                manufacturing        facility.
                                                Owned  by Allen Organ Company.
                                                Operating   at   approximately
                                                90% capacity.

            Macungie, Pennsylvania      27,000  International sales, exhibition
                                                center,  museum  and teaching  
                                                facility.  Owned by Allen Organ 
                                                Company.

            Rocky Mount, North Carolina 70,000  Manufacturing and  sales
                                                facility.   Owned   by   Rocky
                                                Mount  Instruments.  Operating
                                                at      approximately      85%
                                                capacity.

            Data Communications:
            Southampton, Pennsylvania   22,000  Administrative,  research
                                                and manufacturing facility.
                                                Leased   until   July,   2000.
                                                Operating   at   approximately
                                                80% capacity.

            Moorestown, New  Jersey     11,000  Sales and research  facility.
                                                Leased until  October, 1997.

Item 3.     Legal Proceedings

                There  is  no litigation requiring disclosure  pursuant  to
           Item 103 of regulation S-K.

Item 4.    Submission of Matters to a Vote of Security Holders

                No  matters  were  submitted to a vote of security  holders
           during the fourth quarter of fiscal year 1995.


                                  PART II

Item 5.    Market  for the Registrant's Common Stock and Related  Security
           Holder Matters

           The  Company's Class A voting shares are not registered pursuant
           to  the  Securities Exchange Act of 1934 and  are  not  publicly
           traded.   The Company's Class B non-voting stock trades  on  the
           NASDAQ  National  Market tier of The NASDAQ Stock  Market  under
           the symbol AORGB.

           The  high  and  low bid quotations for each quarter  during  the
           last  two years as reported by NASDAQ Market Information  System
           is as follows:

                  1994             High           Low

                  First Quarter    34             29 1/2
                  Second Quarter   39             31 1/2
                  Third Quarter    41 1/2         36 1/2
                  Fourth Quarter   39             35

                  1995             High           Low

                  First Quarter    42             35 1/2
                  Second Quarter   44 1/2         41
                  Third Quarter    48             41
                  Fourth Quarter   45 3/4         40 3/4


           The  Company  has  10  Class  A Shareholders  and  403  Class  B
           Shareholders of record as of March 18, 1996.

           During  the  past  two  fiscal years, the Company  has  declared
           dividends on both it's class A and B shares as follows:

                  Record of Quarterly Dividends Paid in 1994

                  Record Date      Payable        Amount

                  Cash 2/18/94   3/04/94          $.13
                  Cash 5/20/94   6/03/94          $.13
                  Cash 8/19/94   9/02/94          $.13
                  Cash11/18/94  12/02/94          $.16

                  Record of Quarterly Dividends Paid in 1995

                  Record Date      Payable        Amount

                  Cash 2/17/95    3/3/95          $.13
                  Cash 5/19/95    6/2/95          $.13
                  Cash 8/18/95    9/1/95          $.13
                  Cash11/17/95   12/1/95          $.16

Item 6.    Selected Financial Data

                                   Years Ended December 31,
                        1995        1994        1993        1992        1991

Net Sales           $30,024,761 $28,842,789 $26,477,983 $26,238,092 $25,276,374

Net Income           $4,015,105  $4,449,703  $3,456,154  $3,397,045  $3,689,207

Earnings per share     $   2.94   $    3.25   $    2.48   $    2.41   $    2.55

Cash dividends 
 per share              $   .55       $ .55       $ .50       $ .50       $ .48

At Year End

  Total Assets      $65,299,426 $58,464,695 $55,752,570 $53,581,050 $51,115,657

  Long-Term Debt, 
   net of current 
   portion           $1,388,000 $         0 $         0 $         0 $         0

The 1995 results of operations include the data communications segment
acquired August 1, 1995.  See Note 2 of the financial statements for
additional information.


Item 7. Management's Discussion and Analysis of Financial Condition and
        Results of Operations

       Liquidity and Capital Resources:
           The  Company  continues to maintain a strong financial  position
       and  high  level  of  liquidity which enables it to  generate  funds
       internally to meet operating needs, capital expenditures and  short-
       term  obligations.   Key indicators of the Company's  liquidity  are
       presented below:
           
                                                 December 31,
                                               1995        1994
           Working Capital                $46,681,555 $47,937,778
           Current Ratio                      16 to 1   39.6 to 1
           Debt to Equity Ratio              .09 to 1    .05 to 1

           The  Company's  ratio of debt to equity has  remained  very  low
       because  of  management's continuing policy of  financing  expansion
       with  internally  generated  funds.  This  policy  has  enabled  the
       Company to maintain its competitive advantage without incurring  the
       costs associated with borrowed funds.
           Cash  flows  provided by operating activities declined  in  1995
       primarily  due  to  increases in inventory  levels  in  the  musical
       instruments  and  electronic  assemblies  segments,  and   from   an
       approximately $1 million contribution to the company pension  plans,
       which  was allowed by changes in the tax code, related to a previous
       plan amendment.
           Cash  flows  from  investing activities were used  to  fund  the
       acquisition  of  the data communications segment and  repurchase  of
       treasury  shares  in 1995.  The company increased  its  expenditures
       for  property and equipment primarily related to the enhancement  of
       its  electronics manufacturing capabilities.  The Company  presently
       has  no  major  commitments  for capital  expenditures  which  would
       require significant capital resources.
       
       Results of Operations:
       Sales and Operating Income
           Consolidated net sales increased $1,181,972 (4.1%)  during  1995
       as   compared  to  1994  primarily  due  to  sales  from  the   data
       communications segment which was acquired in August, 1995.  In  1994
       sales increased $2,364,806 (8.9%) from 1993.
           
                                               December 31,
                                      1995         1994         1993
       Net Sales:
        Musical Instruments
         Domestic                 $18,913,194  $19,772,391  $18,916,491
         Export                     5,408,720    5,398,667    4,607,680
          Total                    24,321,914   25,171,058   23,524,171
       
        Data communications
         Domestic                   1,634,036       --           --
         Export                     1,027,826       --           --
          Total                     2,661,862       --           --
       
        Electronic Assemblies
         Domestic                   3,040,985    3,671,731    2,953,812
          Total Net Sales         $30,024,761  $28,842,789  $26,477,983

       Income from Operations:
        Musical instruments        $3,332,103   $4,356,912   $3,812,323
        Data communications           122,417       --           --
        Electronic assemblies         457,167      892,493      737,660
          Total                    $3,911,687   $5,249,405   $4,549,983

       Musical Instruments Segment
           The  1995  decrease  in  domestic sales  was  primarily  due  to
       variations  in product mix, offset some what by slight increases  in
       selling  prices.   Sales in 1994 included more  large  organ  models
       than  1995.   These  types  of variations  to  a  large  extent  are
       unpredictable from one year to the next.
           The  1994  increase  in domestic sales resulted  from  a  higher
       volume  of  incoming orders, a reduction of the  order  backlog  and
       from  modest  increases in selling prices.  During  1994  new  organ
       models  were  introduced in the majority of  the  Company's  product
       line.   These  new  models  were very  well  received  by  both  the
       Company's dealers and customers.
           Export  sales  increased in 1995 and 1994 due to the  continuing
       relative   weakness  of  the  US  dollar  in  relation  to   foreign
       currencies.   Economic  changes  in foreign  countries  and  foreign
       exchange rates may affect future export sales.
           Gross  profit margins on sales were 30.9%, 32.3% and  31.4%  for
       the  three years ended December 31, 1995.  The decrease in the  1995
       gross  profit margin reflects variations in product mix  and  slight
       increases  in some overhead costs.  The increase in the  1994  gross
       profit  margin  when  compared  to  1993  reflects  increased  sales
       levels,  favorable product mix including several large organ  sales,
       and production efficiencies.
           Selling,  administrative  and other expenses  declined  slightly
       from  1994  when  they increased compared to 1993 primarily  due  to
       higher selling expenses related to large organ sales.
           
       Data Communications
           Domestic  and  export sales for the 5 months ended December  31,
       1995  were  approximately equal when compared to the same period  in
       1994.   Each  of the companies are implementing or increasing  sales
       and  marketing  efforts  throughout 1996 which  management  believes
       should positively affect future sales.
           Gross  profit  margins were 55% in 1995.   While  the  companies
       strive  to  maintain  profit margins by trying to  develop  products
       which  offer  more features at competitive prices, the  industry  is
       competitive  which often results in pricing changes  to  obtain  and
       maintain market share.
           Selling,  administrative and other expenses were  comparable  to
       the  same period last year.  Selling expenses will increase  in  the
       future  as sales and marketing programs and personnel are  added  to
       further promote the segment's products and obtain additional  market
       share.
           Research  and  development expenses for the  five  months  ended
       December  31,  1995  were $637,468.  These expenditures,  which  the
       company  plans  to  continue  at  a  similar  pace  in  the  future,
       represent  the  segment's commitment to new product development  and
       support.

       Electronic Assemblies
           Sales and operating income declined in 1995 from 1994 when  they
       increased  over  1993, primarily due to a special  project  for  one
       customer.
           The  segment  continues its marketing efforts and has  begun  to
       diversify  its customer base.  The company continues to improve  its
       production  capabilities  to offer state of  the  art  manufacturing
       services to its customers.

       Other Income (Expense)
           The  variations in interest income in 1995, 1994, and  1993  are
       primarily   attributable  to  the  yields  available  on  short-term
       investments  and  the  amounts  of  principal  invested.   The  1995
       amounts include $295,560 of realized capital gains.
           During   1994  the  Company  settled  a  lawsuit  for   wrongful
       prosecution  brought against the attorneys for one of the  Company's
       competitors.  This resulted from a lawsuit the Company settled  with
       its  competitor  in 1992.  Other income for 1994 includes  $385,000,
       less legal expenses, related to the settlement.
           Interest  expense  represents  accrued  interest  for  the  five
       months  ended  December  31, 1995, on the notes  payable  issued  in
       connection  with  the  acquisition  discussed  in  Note  2  to   the
       financial statements.

       Income Taxes
           The  effective  tax rate decreased in 1995 and  1994,  primarily
       due  to  lower  state  tax  rates,  the  formation  of  Allen  Organ
       International, a Foreign Sales Corporation, and higher tax-free non-
       operating investment income.

Item 8.    Financial Statements

            See Item 14 for index.

Item 9.    Changes in and Disagreements with Accountants on Accounting and
           Financial Disclosure

             None
<PAGE>               
                    CONCANNON, GALLAGHER, MILLER & COMPANY, P.C.
Michael J. Gallagher, CPA   CERTIFIED PUBLIC ACCOUNTANTS
Michael R. Miller, CPA
William C. Mason, CPA
Dale E. Grate, CPA
E. Barry Hetzel, CPA
Edward J. Quigley, Jr., CPA
John G. Estock, CPA
Howard D. Gneiding, CPA
Robert A. Oster, CPA
Robert E. Vitale, CPA
John F. Sharkey, Jr., CPA
Victor J. Meyer, CPA
David C. Gehringer, CPA
Gerard D. Stanus, CPA
Robert M. Caster, CPA
                       INDEPENDENT AUDITORS' REPORT

The Board of Directors
 and Shareholders
Allen Organ Company

      We have audited the accompanying consolidated balance sheets of Allen
Organ  Company and Subsidiaries as of December 31, 1995 and  1994  and  the
related  consolidated statements of income and retained earnings, and  cash
flows  for  each of the three years in the period ended December 31,  1995.
These   financial  statements  are  the  responsibility  of  the  Company's
management.  Our responsibility is to express an opinion on these financial
statements based on our audits.
     We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the  audit  to
obtain reasonable assurance about whether the financial statements are free
of  material  misstatement.  An audit includes examining, on a test  basis,
evidence   supporting  the  amounts  and  disclosures  in   the   financial
statements.   An  audit  also includes assessing the accounting  principles
used  and  significant estimates made by management, as well as  evaluating
the  overall financial statement presentation. We believe that  our  audits
provide a reasonable basis for our opinion.
      In  our  opinion, the consolidated financial statements  referred  to
above  present fairly, in all material respects, the consolidated financial
position  of Allen Organ Company and Subsidiaries at December 31, 1995  and
1994  and the consolidated results of their operations and their cash flows
for  each  of  the three years in the period ended December  31,  1995,  in
conformity with generally accepted accounting principles.


CONCANNON, GALLAGHER, MILLER AND COMPANY, P.C.

Allentown, PA
February 9, 1996

Member of AICPA Division for CPA Firms  SEC and Private Companies Practice
 Sections
<PAGE>
              ALLEN ORGAN COMPANY AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                                                         December 31,
                      ASSETS                           1995        1994
CURRENT ASSETS
 Cash                                                $196,100    $105,067
 Investments, including accrued interest           30,766,266  36,783,908
 Accounts receivable                                4,431,499   3,052,683
 Inventories                                       13,428,585   8,794,765
 Prepaid income taxes                                 856,630     276,580
 Prepaid expenses                                     103,420      98,903
 Deferred income tax benefits                           --         67,420
     Total Current Assets                          49,782,500  49,179,326
PROPERTY, PLANT AND EQUIPMENT, AT COST,
 LESS ACCUMULATED DEPRECIATION                      7,778,498   7,163,476
OTHER ASSETS
 Prepaid pension costs                              1,021,517       --
 Intangible pension asset                               --        443,273
 Inventory held for future service                  1,219,872   1,145,511
 Deferred income tax benefits                           --         43,116
 Goodwill, net                                      4,227,600       --
 Cash value of life insurance                         629,481     408,138
 Note receivable                                      122,586      81,855
 Intangible and other assets, net                     517,372       --
     Total Other Assets                             7,738,428   2,121,893
     Total Assets                                 $65,299,426 $58,464,695
   LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
 Current portion of long term debt                   $347,000 $     --
 Accounts payable                                     535,276     171,791
 Deferred income taxes                                 64,322       --
 Other accrued expenses                             1,691,328     623,100
 Customer deposits                                    463,019     446,657
   Total Current Liabilities                        3,100,945   1,241,548
NONCURRENT LIABILITIES
 Deferred liabilities                                 841,687      77,917
 Accrued pension cost                                   --      1,374,007
 Long term debt, net of current portion             1,388,000       --
   Total Noncurrent Liabilities                     2,229,687   1,451,924
   Total Liabilities                                5,330,632   2,693,472
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
 Common stock, par value $1 per share
 Authorized
   Class A shares - 400,000 in 1995 and 1994
   Class B shares - 3,600,000 in 1995 and 1994
 Issued
   Class A shares (voting) - 128,104 in 
    1995 and 1994                                     128,104     128,104
   Class B shares (nonvoting) - 1,409,889 in 
    1995 and 1994                                   1,409,889   1,409,889
      Total Common Stock                            1,537,993   1,537,993
 Capital in excess of par value                    12,758,610  12,610,377
 Retained earnings                                 49,786,163  46,524,142
 Unrealized gain (loss) on investments                 94,136     (98,399)
 Pension liability adjustment                           --       (489,823)
 Minority interest                                    313,941       --
   Sub-total                                       64,490,843  60,084,290
 Less cost of common shares in treasury
   1995 - 43,120 Class A shares and 
    131,835 Class B shares                          4,522,049 
   1994 - 43,120 Class A shares and 
    130,336 Class B shares                                      4,313,067
     Total Shareholders' Equity                    59,968,794  55,771,223
     Total Liabilities and Shareholders' Equity   $65,299,426 $58,464,695
 
 The accompanying notes are an integral part of the consolidated
  financial statements.
<PAGE>              
              ALLEN ORGAN COMPANY AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS

                                              Years Ended December 31,
                                            1995         1994         1993
NET SALES                              $30,024,761  $28,842,789  $26,477,983
COSTS AND EXPENSES
  Cost of sales                         20,109,427   18,910,136   17,540,539
  Selling, administrative and 
   other expenses                        4,695,956    4,058,058    3,774,830
  Research and development               1,307,691      625,190      612,631
    Total Costs and Expenses            26,113,074   23,593,384   21,928,000
INCOME FROM OPERATIONS                   3,911,687    5,249,405    4,549,983
OTHER INCOME (EXPENSE)
  Investment income                      2,115,551    1,436,182    1,108,957
  Other, net                                26,810      265,116       (6,786)
  Interest expense                         (42,856)        --           --
  Minority interests in 
   consolidated subsidiaries                23,913         --           --
    Total Other Income (Expense)         2,123,418    1,701,298    1,102,171
INCOME BEFORE TAXES ON INCOME            6,035,105    6,950,703    5,652,154
TAXES ON INCOME
  Current                                1,559,000    2,525,000    2,228,000
  Deferred                                 461,000      (24,000)     (32,000)
    Total Taxes on Income                2,020,000    2,501,000    2,196,000
NET INCOME                               4,015,105    4,449,703    3,456,154
RETAINED EARNINGS
  Balance, January 1                    46,524,142   42,828,013   40,067,860
  Deduct cash dividends
     (1995 - $.55, 1994 - $.55, 
      1993 - $.50)                        (753,084)    (753,574)    (696,001)
  Balance, December 31                 $49,786,163  $46,524,142  $42,828,013
EARNINGS PER SHARE                       $    2.94    $    3.25    $    2.48
                                
 The accompanying notes are an integral part of the consolidated
  financial statements.
<PAGE>                   
                   ALLEN ORGAN COMPANY AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                    Years Ended December 31,
                                                  1995        1994       1993
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income                                  $4,015,105  $4,449,703  $3,456,154
 Adjustments to reconcile net income to net
  cash provided by operating activities
  Minority interest in consolidated 
   subsidiaries                                 (23,913)     --         --
  Depreciation and amortization                 636,777     562,241     594,144
  Amortization of bond premiums                  58,918     218,519     252,278
  Loss (Gain) on sale of property, 
   plant and equipment                             (437)     43,829       7,654
  Loss (Gain) on sale of investments           (295,560)      1,853      (1,530)
  Loss on sale of other assets                     --          --         1,831
  Change in assets and liabilities
   Accounts receivable                          120,141      (2,187)    (44,205)
   Inventories                               (2,014,580)   (969,076)   (880,826)
   Prepaid income taxes                        (580,050)   (175,517)    (62,787)
   Prepaid expenses                              (4,517)     58,165      43,682
   Deferred income tax benefits                 110,536      64,729      (8,439)
   Prepaid pension costs                     (1,109,038)       --          --
   Accounts payable                            (267,387)    (19,771)     (2,955)
   Accrued taxes on income                         --       (60,983)     28,983
   Other accrued expenses                      (325,032)    198,291      73,967
   Customer deposits                             16,362    (448,735)    285,847
   Deferred income taxes and liabilities        474,702    (155,211)    (38,500)
   Other noncurrent liabilities                    --       (28,782)        418
     Net Cash Provided by Operating Activities  812,027   3,737,068   3,705,716

CASH FLOWS FROM INVESTING ACTIVITIES
 Cash proceeds from maturity of 
  investments classified as held to 
  maturity                                   54,960,373  40,285,010  52,777,125
 Cash paid for purchase of investments 
  classified as held to maturity            (21,631,598)(40,883,194)(52,589,537)
 Cash proceeds from sale of investments 
  classified as available for sale            3,520,772       --          --
 Cash paid for purchase of investments 
  classified as available for sale          (30,402,728) (1,532,275) (1,868,470)
 Increase in cash value of life insurance      (221,343)   (207,633)   (121,474)
 Increase in note receivable                    (40,731)    (81,855)      --
 Payment for acquisition, net of 
  cash acquired                              (3,639,338)      --          --
 Increase in intangible and other assets       (533,084)      --          --
 Cash proceeds from sale of other assets          --          --          7,830
 Cash proceeds from sale of property, 
  plant and equipment                               500         100      27,410
 Cash paid for purchase of property, 
  plant and equipment                          (940,689)   (440,151)   (438,843)
   Net Cash Provided by (Used in) 
    Investing Activities                      1,072,134  (2,859,998) (2,205,959)
CASH FLOWS FROM FINANCING ACTIVITIES
  Dividends paid in cash                       (753,084)   (753,574)   (696,001)
  Reacquired Class B common shares           (1,060,749)   (474,862)   (850,791)
  Subsidiary company stock issued to 
   minority shareholders                         20,705       --          --
     Net Cash Used in Financing Activities   (1,793,128) (1,228,436) (1,546,792)
NET INCREASE (DECREASE) IN CASH                  91,033    (351,366)    (47,035)
CASH, JANUARY 1                                 105,067     456,433     503,468
CASH, DECEMBER 31                              $196,100    $105,067    $456,433
            SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
  Cash paid for income taxes                 $2,142,682  $2,767,260  $2,240,173
  Cash paid for interest                     $    --     $    --     $    --
  SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
 Liability incurred to purchase inventory 
  in connection with acquisition             $1,243,601  $    --     $    --
 Long term debt incurred in connection 
  with asset acquisition                     $1,735,000  $    --     $    --
                                     
 The accompanying notes are an integral part of the consolidated financial
  statements.
<PAGE>              
              ALLEN ORGAN COMPANY AND SUBSIDIARIES
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 Significant Accounting Policies
        Allen  Organ  Company  and Subsidiaries'  operations  are
     classified   into   three   industry   segments:     musical
     instruments, data communications and electronic  assemblies.
     See  note  16  for additional information on  the  operating
     activities of each segment.
        The   consolidated  financial  statements   include   the
     accounts  of  the  Allen  Organ Company  and  the  following
     subsidiaries.   All material intercompany transactions  have
     been eliminated.
            Subsidiaries Name               Ownership %
         Rocky Mount Instruments, Inc.        100.00%
         Allen Organ International, Inc.      100.00%
         VIR, Inc.                             97.60%
         Eastern Research, Inc.                90.53%
         Linear Switch Corporation             83.17%
        Certain   amounts   in  the  1994  and   1993   financial
     statements  have been reclassified to conform  to  the  1995
     presentation.
        Financial   instruments  that  potentially  subject   the
     Company  to  credit risk consist principally  of  short-term
     investments  and  trade  receivables.   The  Company  places
     substantially all of its investments in federal,  state  and
     local  government  obligations and, by  policy,  limits  the
     amount  of  credit  exposure in  any  one  investment.   The
     Company  sells  its  products  through  established   dealer
     networks.    The   credit  risk  associated   with   related
     receivables  is limited due to the large number  of  dealers
     and their geographic dispersion.
        The  preparation  of financial statements  in  conformity
     with   generally  accepted  accounting  principles  requires
     management to make estimates and assumptions that affect the
     reported amounts of assets and liabilities and disclosure of
     contingent  assets  and  liabilities  at  the  date  of  the
     financial  statements and the reported amounts  of  revenues
     and  expenses  during the reported period.   Actual  results
     could differ from those estimates.
        Inventories  are valued at the lower of cost  or  market.
     Cost  is  determined using the first-in, first-  out  (FIFO)
     method for substantially all inventories.
        Property,  plant  and   equipment   are stated  at  cost. 
     Depreciation  is computed over estimated useful  asset lives
     using   both  straight-line  and  accelerated  methods   for
     financial   reporting  and  accelerated  methods   for   tax
     reporting.
        Goodwill  represents  the excess of  cost  over  the  net
     assets  acquired  in the acquisition discussed  in  Note  2.
     Goodwill  is amortized on a straight-line basis  over  forty
     years  and  is presented net of accumulated amortization  of
     $44,501  at  December  31,  1995.   The  carrying  value  of
     goodwill for each business is continually reviewed to assess
     its  recoverability from future operations of  the  acquired
     subsidiaries,  based  on  future cash  flows  (undiscounted)
     expected to be generated by such operations.  Any impairment
     in  value  indicated  by  the assessment  would  be  charged
     against current operations.
        Intangible  assets  consist of organization  costs  which
     are  stated  at  cost and amortized using the  straight-line
     method over ten years.
        Income  taxes  are  provided  for  the  tax  effects   of
     transactions  reported  in  the  financial  statements   and
     consist   of  taxes  currently  due  plus  deferred   taxes.
     Deferred  taxes are recognized for differences  between  the
     basis of assets and liabilities for financial statement  and
     income tax purposes.
        The  Company  accounts for its short-term investments  in
     accordance with Statement of Financial Accounting  Standards
     No.  115,  "Accounting for Certain Investments in  Debt  and
     Equity  Securities".  Management determines the  appropriate
     classification  of  its  investments  in  debt  and   equity
     securities  at  the  time of purchase and  reevaluates  such
     determination at each balance sheet date.
        Research  and  development expenditures  are  charged  to
     expense as incurred.

NOTE 2  Acquisition of Assets
        On  August  1, 1995, the Company acquired the  assets  of
     VIR,  Inc.  (VIR), Eastern Research, Inc. (ERI)  and  Linear
     Switch Corporation (LSC), three related companies which were
     under  common  control, for $7,653,234.  The purchase  price
     was made up of 24,390 shares of Allen Organ stock valued  at
     approximately  $1,000,000, notes  and  liabilities  totaling
     $2,978,601  and $3,674,633 in cash.  Under the terms  of  an
     employment agreement with the seller, LSC is required to pay
     seller 4% of sales through July 31, 2000.
        On  September  7,  1995, the Company agreed  to  and  has
     repurchased  the  Allen  Organ  Company  stock   issued   in
     connection  with the asset acquisition for $1,000,000.   The
     Securities  Restriction Agreement dated August 1,  1995  was
     terminated along with the stock repurchase.
        In   connection   with  the  acquisition,   the   Company
     established  three new subsidiary companies to  acquire  the
     assets  of  sellers.  As additional consideration,  the  new
     subsidiaries  issued  shares  of  their  stock  to  minority
     employee  shareholders equivalent to their interest  in  the
     selling  companies.  The minority interest in  each  of  the
     three new acquisition companies is 2.4% in VIR, 9.47% in ERI
     and  16.83% in LSC.  Additional shares of ERI will be issued
     over the next year to employees, approximating a 1% interest
     in ERI.
        The  acquisitions have been accounted for  as  purchases.
     The  results  of operations of VIR, ERI, and LSC  have  been
     included  in the Company's consolidated financial statements
     from  the  date  of acquisition through December  31,  1995.
     Assets and liabilities have been recorded at their estimated
     fair  market  values  with  the  excess  being  recorded  as
     goodwill   which   will   be  amortized   over   40   years.
     Organizational  costs  have been capitalized  in  connection
     with the acquisition and will be amortized over 10 years.
        
NOTE 3  Investments
       The  cost and fair value of investments in debt and equity
       securities are as follows:
                                            Gross        Gross        
                               Amortized  Unrealized   Unrealized     Fair
                                  Cost       Gains       Losses       Value
                                    
   December 31, 1995                                     
   Available for sale
    Equity securities            $376,030   $66,104  $    --         $442,134
    Mutual Funds                4,264,521    92,352       --        4,356,873
    U.S. Treasury Bills        20,456,336      --         --       20,456,336
    Federal Agency and
     Municipal Bonds            5,510,923      --         --        5,510,923
   
     Totals                   $30,607,810  $158,456  $    --      $30,766,266
                      
                                                         
   December 31, 1994                                     
   Available for sale
    Equity securities            $435,462  $   --       $27,257      $408,205
    Mutual Funds                2,959,627    14,169     152,732     2,821,064
   Held to maturity                                      
    U.S. Treasury Bills        18,478,846      --         --       18,478,846
    Municipal Bonds            14,560,581      --       235,510    14,325,071
    Federal Agency Bonds          515,212      --        31,977       483,235
     Totals                   $36,949,728   $14,169    $447,476   $36,516,421
                      

        Marketable  debt  securities have an average  contractual
     maturity of approximately 1 year or less.
        Proceeds  from the sale of assets classified as available
     for sale were $3,520,772 during 1995, resulting in a gain of
     $295,560   based  on  original  cost  of  these  investments
     determined using a first-in, first-out method.
        The  change  in net unrealized holding gains (losses)  on
     securities available for sale in the amount of $324,273  and
     ($145,769),  net  of  deferred  tax  expense  (benefits)  of
     $131,738  and  ($58,982) has been charged  to  shareholders'
     equity  for  the  years ended December  31,  1995  and  1994
     respectively.
           
           
NOTE 4 Inventories
                                                 December 31,
                                              1995         1994
           Finished goods                  $ 981,471    $ 450,015
           Work in process                 5,658,610    4,884,735
           Raw materials                   6,788,504    3,460,015
             Total                       $13,428,585   $8,794,765
     
     The  Company maintains an inventory of various parts  to  be
used  to service musical instruments as future needs arise.  This
inventory,  $1,219,872 and $1,145,511 at December  31,  1995  and
1994, respectively, is reported as a noncurrent asset.
                                
NOTE 5 Property, Plant and Equipment
                                                      December 31,
                                                   1995         1994
           Land and improvements                $2,407,579   $2,405,086
           Buildings and improvements            7,445,965    7,161,749
           Machinery and equipment               5,977,260    5,280,722
           Office furniture and equipment        1,018,947      858,745
           Vehicles                                207,622      171,685
             Sub-total                          17,057,373   15,877,987
           Less accumulated depreciation         9,278,875    8,714,511
             Property, plant and equipment                                   
              net of accumulated depreciation   $7,778,498   $7,163,476


NOTE 6 Note Receivable
           The  Company  has  entered into  a  Split-Dollar  Life
       Insurance agreement with its President who is the  insured
       and  owner of the policy.  The policy owner shall pay  the
       portion  of the premium equal to the value of the economic
       benefit  determined  in  accordance  with  applicable  IRS
       Revenue  Rulings.  The Company shall pay  the  balance  of
       the   net   premiums   which  shall  approximate   $40,000
       annually.
           The  agreement  provides that  the  Company  shall  be
       entitled  to  recover the amount of premiums paid  out  of
       the  built up cash value upon termination of the agreement
       or  out of the proceeds upon the death of the insured.  As
       security   for  repayment  the  Company  is  a  collateral
       assignee  of  the  policy  to  the  extent  of  any   such
       unreimbursed premium.


NOTE 7 Income Taxes
           The   provision  for  income  taxes  consists  of  the
       following:
                    1995                   1994                    1993
             Currently             Currently              Currently
              Payable   Deferred    Payable    Deferred    Payable     Deferred
Federal    $1,300,000   $380,000  $1,958,000  $(17,000)  $1,705,000   $(24,000)
State         259,000     81,000     567,000    (7,000)     523,000     (8,000)
 Total     $1,559,000   $461,000  $2,525,000  $(24,000)  $2,228,000   $(32,000)
           
           A  reconciliation  of the provision for  income  taxes
       with the statutory rate follows:
                            1995               1994              1993
Statutory provision for
 federal income tax     $2,044,000  34.0%  $2,363,000  34.0%  $1,922,000  34.0%
State taxes, net of
 federal tax benefits      224,000   3.7      370,000   5.3      340,000   6.0
Tax credits                 (8,000) (0.1)     (22,000) (0.3)      (9,000) (0.2)
Other items, net          (240,000) (4.0)    (210,000) (3.0)     (57,000) (1.0)
 Total                  $2,020,000  33.6%  $2,501,000  36.0%  $2,196,000  38.8%
                                
           The  following temporary differences give rise to the net
     deferred tax liability at December 31, 1995 and 1994.
                                                      1995         1994
     Deferred Tax Liabilities
      Excess of tax depreciation/amortization
       over book depreciation/amortization         $(412,499)   $(381,000)
      Excess of pension expense for tax 
       purposes over book                           (413,356)       --
      Unrealized gain not recognized for 
       tax purposes                                  (64,322)       --
        Total Deferred Tax Liabilities              (890,177)    (381,000)
           
     Deferred Tax Assets
      Deferred compensation not recognized 
       for tax purposes                               28,585       32,659
      State net operating loss carry forwards         26,000        --
      Pension liability adjustment not 
       recognized for tax purposes                     --         353,419
      Excess of pension expense for book 
       purposes over tax                               --          38,038
      Unrealized loss not recognized for 
       tax purposes                                    --          67,420
        Total Deferred Tax Assets                     54,585      491,536
        Net Deferred Tax (Liability) Asset         $(835,592)    $110,536
           
           Deferred  taxes are presented in the company's  financial
     statements as follows:
                                                      1995         1994
             Current deferred tax asset            $   --         $67,420
             Non-current deferred tax asset            --          43,116
             Current deferred tax liability          (64,322)       --
             Non-current deferred tax liability     (771,270)       --
               Net deferred tax asset (liability)  $(835,592)    $110,536
                                
                                
NOTE 8 Other Accrued Liabilities

                                                        December 31,
                                                      1995        1994
             Accrued salaries and commissions       $379,566    $308,941
             Accrued interest                         43,014       --
             Liability for inventory purchased
              in connection with acquisition       1,036,334       --
             Other                                   232,414     314,159
              Total                               $1,691,328    $623,100
                                
NOTE 9 Commitments and Contingencies
           As  of  December  31, 1995, the Company  is  contingently
     liable  for  a  maximum amount of approximately  $1,214,772  in
     connection   with   the  financing  arrangements   of   certain
     customers.
           Under the terms of an agreement with the wife of the late
     Chairman and principal shareholder, the Company may be required
     to  purchase within eight months of her death, at the option of
     her personal representative, certain Class B Common Shares then
     owned by her or includable in her estate for Federal Estate Tax
     purposes,  subject  to the limitations of Section  303  of  the
     Internal  Revenue Code.  At December 31, 1995, the  shareholder
     owned or would have includable in her estate 258,950 shares  of
     Class B Common Stock.  The Company has purchased life insurance
     on the life of the shareholder with a face value of $6,000,000.
     Management  believes  that  the  insurance  proceeds  would  be
     sufficient   to   substantially  fund  this   possible   future
     commitment and that any excess would not have a material effect
     on the financial condition of the Company.
           The  Company's  data  communications segment  leases  its
     offices  and production facility under non-cancelable operating
     leases which expire at various dates through July, 2000.   Rent
     expense  for  August  1 (inception) to December  31,  1995  was
     $70,233.  Minimum annual rent payments for the operating leases
     for each of the next five years are as follows:
            
            1996                     $ 155,866
            1997                       153,067
            1998                        92,400
            1999                        92,400
            2000                        53,900
             Total                   $ 547,633
                                
                                
NOTE 10    Retirement Plans

           The  Company  sponsors two noncontributory pension  plans
     which cover substantially all of its employees.  Salaried  plan
     benefits are generally based on the employee's years of service
     and  compensation levels.  Hourly plan benefits  are  based  on
     various monthly amounts for each year of credited service.  The
     Company's funding policy is to contribute amounts to the  plans
     sufficient to meet the minimum funding requirements  set  forth
     in  the  Employee Retirement Income Security Act of 1974,  plus
     such  additional  amounts as the Company may  determine  to  be
     appropriate  from  time  to time.  Plan  assets  are  comprised
     principally  of cash equivalents, U.S. Government  obligations,
     fixed income securities, and equity securities.
                                
        A  summary  of the components of net periodic  pension
        cost for the plans is as follows:
                                                 1995       1994       1993
        Service cost - benefits earned 
         during the period                     $279,432   $274,987   $281,265
        Interest cost on projected benefit
         obligations                            887,261    839,838    802,143
        Return on assets
         Actual                              (1,772,567)    27,301   (771,932)
         Deferred gain (loss)                   978,678   (834,046)    16,014
        Amortization of net loss from
         prior periods                           48,463      8,649      2,010
        Amortization of unrecognized prior
         service cost                            73,990     73,990     73,990
        Amortization of initial 
         unrecognized net asset                 (72,008)   (72,008)   (72,008)
          Net Pension Cost                     $423,249   $318,711   $331,482
           
           The  funded status of the Company's pension  plans  at
       December 31, 1995 and 1994 is as follows:
                                       1995                   1994
                                    Plans Whose      Plan Whose    Plan Whose
                                      Assets           Assets      Accumulated
                                      Exceed           Exceed         Plan
                                    Accumulated      Accumulated    Benefits
                                        Plan            Plan         Exceed
                                      Benefits        Benefits       Assets
Actuarial present value of
 benefit obligations:
  Vested benefits                  $(11,358,778)     $(5,052,381) $(5,827,204)
  Nonvested benefits                    (52,759)         (19,778)     (27,906)
Accumulated benefit obligation      (11,411,537)      (5,072,159)  (5,855,110)
Effect of assumed increase in
 compensation levels for
 salaried plan                       (1,039,398)        (955,449)       --
Projected benefit obligations for
 service rendered to date           (12,450,935)      (6,027,608)  (5,855,110)
Plan assets at fair value            12,788,615        5,507,072    4,639,396
Plan assets in excess of (less
 than) projected benefit
 obligation                             337,680         (520,536)  (1,215,714)
Unrecognized prior service cost         369,283            --         443,273
Unrecognized net asset at
 transition                            (432,052)        (452,052)     (52,008)
Unrecognized net loss                   746,606          814,295      895,221
Adjustment to recognize
minimum liability                         --               --      (1,286,486)
Prepaid (Accrued) Pension Cost       $1,021,517        $(158,293) $(1,215,714)
           
           Statement  of financial Accounting Standards  No.  87,
       "Employers'   Accounting   for  Pensions"   requires   the
       recognition   of  an  additional  minimum  liability   for
       defined  benefit  plans for which the accumulated  benefit
       obligation  exceeds plan assets.  This  amount  $1,286,486
       in  1994, had been recorded as a noncurrent liability with
       an  offsetting  intangible asset  amounting  to  $443,273.
       Because the asset recognized may not exceed the amount  of
       unrecognized prior service cost, the balance of  $843,213,
       net  of  tax  benefits of $353,390,  were  reported  as  a
       separate  reduction of shareholders' equity.  During  1995
       the  Company  contributed $1,532,287 to the pension  plans
       which  increased  the plans funded status eliminating  the
       need to recognize an additional liability at December  31,
       1995.
           The  projected  benefit obligation for the  plans  was
       determined  using an assumed discount rate  of  7.5%.   An
       assumed  long-term compensation increase rate  of  7%  was
       used  for  the salaried plan.  The assumed long-term  rate
       of return on plan assets was 8%.
           The  Company provides 401(k) deferred compensation and
       profit   sharing  plans  for  the  benefit   of   eligible
       employees.  The plans allow eligible employees to defer  a
       portion  of their annual compensation, pursuant to Section
       401(k)  of  the  Internal Revenue Code.   Company  profit-
       sharing  contributions to the plans are  discretionary  as
       determined  by  the  Company's board  of  directors.   The
       Company  contributions were $157,483 and $136,501  to  the
       plan in 1995 and 1994.


NOTE 11    Other Deferred Liabilities
                                                   December 31,
                                                 1995        1994
           Deferred compensation expense     $  70,417    $  77,917
           Deferred income taxes               771,270        --
            Total                            $ 841,687    $  77,917


NOTE 12    Long-Term Debt
       Notes payable, interest at 5.95% payable 
        semi-annually, principal payable in annual 
        installments of $347,000                         $1,735,000
       Current portion                                     (347,000)
       Long-term debt                                    $1,388,000

NOTE 13    Common Stock, Capital in Excess of Par Value and Treasury Stock

                      Common Stock               Capital In
               Class A            Class B         Excess of   Treasury Stock
            Shares  Amount    Shares    Amount    Par Value  Shares    Amount
Balance, 
December 31, 
1992       128,104 $128,104 1,409,889 $1,409,889 $12,610,377 130,404 $2,987,414
Reacquired 
 Class B 
 Shares                                                       28,606    850,791
1993       128,104  128,104 1,409,889  1,409,889  12,610,377 159,010  3,838,205
Reacquired 
 Class B 
 Shares                                                       14,446    474,862
1994       128,104  128,104 1,409,889  1,409,889  12,610,377 173,456  4,313,067
Reacquired 
 Class B 
 Shares                                                       25,889  1,060,749
Reissued 
 Class B 
 Shares                                              148,233 (24,390)  (851,767)
1995       128,104 $128,104 1,409,889 $1,409,889 $12,758,610 174,955 $4,522,049


NOTE 14    Earnings Per Share
           Earnings  per  share  were  computed  using  1,366,076
       shares  in  1995, 1,370,486 shares in 1994, and  1,392,119
       shares  in  1993,  the weighted average number  of  shares
       outstanding during each year.


NOTE 15    Export Sales
           In  1995,  1994  and 1993, net sales  by  the  musical
       instruments  segment include export sales, principally  to
       Canada,  Europe and the Far East of $5,408,720, $5,398,667
       and  $4,607,680, respectively.  For the five months  ended
       December  31,  1995, net sales by the data  communications
       segment  include export sales principally  to  Europe  and
       the Far East of $1,027,826.


NOTE 16     Industry Segment Information
           The  Company's  operations are classified  into  three
       industry     segments:    musical    instruments,     data
       communications  and  electronic assemblies.   The  musical
       instruments    segment   is   comprised   of    operations
       principally involved in the design, manufacture, sale  and
       distribution  of electronic keyboard musical  instruments,
       primarily    digital   computer   organs    and    related
       accessories.   Musical instruments are sold  primarily  to
       retail distributors worldwide.
           The  data  communications segment  began  during  1995
       with the acquisition discussed in Note 2.  The segment  is
       involved   in   the   design,   manufacture,   sale    and
       distribution  of  data  communications  equipment.    Data
       communications  products are sold primarily  to  wholesale
       and retail distributors worldwide.
           The  electronic assemblies segment is involved in  the
       manufacture,   sale   and   distribution   of   electronic
       assemblies   for  outside  customers  used  primarily   as
       control  devices  and other circuitry in  their  products.
       Subcontract  assembly services are provided  primarily  to
       industrial concerns in Pennsylvania and New Jersey.
           
       Following  is  a summary of segmented information  for
       1995, 1994 and 1993.
                                                    December 31,
                                           1995         1994         1993
Net Sales to Unaffiliated Customers
  Musical instruments                   $24,321,914  $25,171,058  $23,524,171
  Data communications                     2,661,862       --           --
  Electronic assemblies                   3,040,985    3,671,731    2,953,812
   Total                                $30,024,761  $28,842,789  $26,477,983

Income from Operations
  Musical instruments                    $3,332,103   $4,356,912   $3,812,323
  Data communications                       122,417       --           --
  Electronic assemblies                     457,167      892,493      737,660
   Total                                 $3,911,687   $5,249,405   $4,549,983

Identifiable Assets
  Musical instruments                   $20,505,183  $18,827,345  $18,319,110
  Data communications                     9,181,209       --           --
  Electronic assemblies                   2,108,721    1,329,090    1,032,081
   Sub-total                             31,795,113   20,156,435   19,351,191
  General corporate assets               33,504,313   38,308,260   36,401,379
   Total                                $65,299,426  $58,464,695  $55,752,570

Capital Expenditures
  Musical instruments                     $ 903,737    $ 440,151    $ 438,843
  Data communications                        36,952       --           --
   Total                                  $ 940,689    $ 440,151    $ 438,843

Depreciation and Amortization
  Musical instruments                     $ 557,052    $ 562,241    $ 594,144
  Data communications                        79,725       --           --
   Total                                  $ 636,777    $ 562,241    $ 594,144

           Identifiable assets by segment are those  assets  that
       are  used in the Company's operations within that segment.
       General  corporate assets consist principally of cash  and
       short-term investments.
           The  Company's  electronic assemblies segment  derived
       the  majority  of  its revenues from  one  customer.   The
       Company's   musical  instrument  and  data  communications
       segments are not dependent on any single customer.
           
NOTE 17    Legal Settlement
           During   1994  the  Company  settled  a  lawsuit   for
       wrongful  prosecution brought against  the  attorneys  for
       one  of  the Company's competitors.  This resulted from  a
       lawsuit the Company settled with its competitor in 1992.
           Other  income  for 1994 includes $385,000  less  legal
       expenses related to this settlement.
                                
NOTE 18    Investment Income
                                                   December 31,
                                           1995        1994        1993

  Interest Income                       $1,712,340  $1,355,304  $1,074,100
  Dividend Income                          107,651      82,731      33,327
  Gain (Loss) on Sale of Investments       295,560      (1,853)      1,530
   Total                                $2,115,551  $1,436,182  $1,108,957


NOTE 19    Pro Forma Financial Information
           The  following  pro  forma financial  information  has
       been  prepared  giving effect to the acquisition  of  VIR,
       ERI  and LSC as if the transaction had taken place at  the
       beginning   of  the  respective  year.   The   pro   forma
       financial  information  is not necessarily  indicative  of
       the  results of operations which would have been  attained
       had  the  acquisitions  been consummated  on  any  of  the
       foregoing dates or which may be attained in the future.
                                        Years Ended December 31,
                                            1995        1994
           Net Sales                    $34,760,371 $34,050,792
           Net Income                     4,290,293   4,461,192
           Net Income Per Share               $3.14       $3.26
<PAGE>
                                 PART III

Item 10.    Directors and Executive Officers of the Registrant.

                 (a)            Identification of Directors
                                                               Time Period
                              Date Term                         Position
Name                           Expires       Age  Position         Held

Steven Markowitz             Next Annual     42   Director     Since 1980
                           Meeting in 1996

Eugene Moroz                 Next Annual     72   Director     Since 1968
                           Meeting in 1996

Leonard W. Helfrich          Next Annual     66   Director     1964 - 1968
                           Meeting in 1996                     and 1972 to
                                                               present

Orville G. Hawk              Next Annual     78   Director     Since 1989
                           Meeting in 1996

Albert F. Schuster           Next Annual     76   Director     Since 1989
                           Meeting in 1996

Martha Markowitz             Next Annual     74   Director     Since 1991
                           Meeting in 1996

                 (b)  Identification of Executive Officers.  All
                 have served in executive capacities for at least five
                 years.
                                                                  Time Period
                              Date Term                            Position
Name                           Expires       Age  Position           Held
Steven Markowitz             Next Annual     42   President         1990 to
                           Meeting in 1996                          present

Eugene Moroz                 Next Annual     72   Vice President, Since 1965
                           Meeting in 1996        Assistant
                                                  Secretary

Leonard W. Helfrich          Next Annual     66   Secretary,      1958 - 1968
                           Meeting in 1996        Treasurer       and 1971 to
                                                                  present

Barry J. Holben              Next Annual     43   Vice President* October 1995
                           Meeting in 1996                        to present

Dwight A. Beacham            Next Annual     49   Vice President**October 1995
                           Meeting in 1996                        to present

   *  Barry  J.  Holben was elected Vice President at a special meeting  on
       October  23,  1995.  He previously was an Assistant  Vice  President
       since the annual meeting on May 15, 1995.
   ** Dwight  A.  Beacham was elected Vice President at a  special  meeting
       on  October  23,  1995.  He previously was Assistant Vice  President
       since May 1991.
   
                  (c)  Identification of Certain Significant Employees.

                       Not required to be answered.

                  (d)  Family Relationships.

                        Except  for Martha Markowitz and Steven  Markowitz,
                  who  are  mother and son, there is no family relationship
                  between any officers or directors of the Company.

                  (e)  Business Experience.

                             (1)   All officers and directors, except Barry
                       Holben,  Orville  G. Hawk, Albert F.  Schuster,  and
                       Martha Markowitz, have been employees of the Company
                       in  executive capacities for at least the last  five
                       years.   Mr. Holben has been employed by the Company
                       since   1989,   spending  two   years   in   product
                       development and then more recently as Foreign  Sales
                       Manager.   Mr. Hawk who has been retired  more  than
                       five  (5)  years was formerly Chairman of the  Board
                       and  President of First National Bank of  Allentown.
                       Mr. Schuster is a church director of music and prior
                       to his retirement more than five (5) years ago was a
                       supervisor  at  Bethlehem Steel  Corporation.   Mrs.
                       Markowitz  is  the  widow of Jerome  Markowitz,  the
                       Company's   founder,  and  represents   the   family
                       interests.

                  (f)    Involvement  in  Certain  Legal   Proceedings   by
                  Directors or Officers.

                       None.

                  (g)  Compliance with Section 16(a) of the Exchange Act.

                       No transaction required to be reported.

Item 11.    Executive Compensation.
                 Deleted paragraphs and/or columns are not required to be
            answered.

             (b)  SUMMARY COMPENSATION TABLE:
                                      Annual Compensation     All Other
                                         Salary  Bonus       Compensation *
Name and Principal Position       Year     $       $              $

Steven A. Markowitz, President    1995   93,010  20,125         31,537
  (Chief Executive Officer)       1994   90,607  22,105         32,249
                                  1993   86,944  19,225         32,905

Leonard W. Helfrich, Secretary    1995   84,746  19,005
  (Treasurer)                     1994   82,722  20,875
                                  1993   80,288  18,155

*Value  of  Split  Dollar Life Insurance.  See Note 6 to  the  accompanying
consolidated  financial  statements  for  additional  information  on  this
arrangement.

             (f)  Defined Benefit or Actuarial Plan Disclosure.

                   Estimated  Annual Benefit obtained from  1995  Actuarial
                   Valuation Report:

                   Steven A. Markowitz     $53,135.  Age 42.
                   Leonard W. Helfrich     $28,163.  Age 66.

                  Amount shown is calculated from prior compensation to date 
                  and estimated compensation to normal retirement age (65).

             (g)  Compensation of Directors:

                                  Non-employee Directors receive  $250  for
                  each Board and committee meeting attended plus reasonable
                  expenses   in   connection  with  attendance.    Employee
                  Directors  receive no additional compensation  for  their
                  services as a Director.

                        (h)        Employment Contracts and Termination  of
                  Employment and Change in Control Arrangements:

                                  There are no employment contracts between
                  the  Company and any of the Company's Executive Officers.
                  Mr. Markowitz, Mr. Moroz and Mr. Helfrich participate  in
                  an  officer bonus plan whereby a bonus is distributed  to
                  each  participant  officer in proportion  to  the  annual
                  salary  of  all participants.  The bonus pool is  .9%  of
                  consolidated  pre-tax profit for the  fiscal  year  after
                  elimination  of  bonus  accrual,  patent  income,  patent
                  litigation,  and  non-operating  extraordinary  gains  or
                  losses.


                        (j)        Additional Information with  Respect  to
                  Compensation    Committee    Interlocks    and    Insider
                  Participation in Compensation Decisions:

                             (1)  Leonard   W. Helfrich, Secretary, Treasurer, 
                                  and Director of  the Company,  is  the  sole 
                                  member of  the  Compensation Committee  of 
                                  the Board of Directors whose  function is  to
                                  set the compensation of the President.   The
                                  compensation of all other employees is set by 
                                  or  at the direction of the President.

Item 12.     Security Ownership of Certain Beneficial Owners and Management

             (a)   Voting securities of the registrant owned of  record  or
             beneficially by each person who owns of record, or is known by
             the  registrant to own beneficially, more than 5 per  cent  of
             any   class  of  such  securities.   Class  A  Common   Shares
             constitute   the   only   securities   with   voting   rights.
             Information as of February 29, 1996.
                                          Amount and
                                          Nature of
            Names and           Title of  Beneficial   % of
            Addresses             Class   Ownership    Class
            Jerome Markowitz        A     81,531       95.9%
            Trust (2)                     (1)
            821 N. 30th St.
            Allentown, PA

            (1)  Sole voting and investment power

               (2)   The  shares are held by Trustees under an Inter  Vivos
               Trust  established by Mr. Markowitz, who died  in  February,
               1991,  for the benefit of his family, principally his widow,
               Martha   Markowitz.   The  Trustees  are  Steven  Markowitz,
               President  and  a  Director  of  the  Company,  and   Martha
               Markowitz, a Director of the Company.

           (b)   Each class of equity securities of the registrant  or  any
           of   its   parents   or  subsidiaries,  other  than   directors'
           qualifying shares, beneficially owned directly or indirectly  by
           all  directors  naming them and directors and  officers  of  the
           registrant,  as  a  group, without naming them.  Information  as
           of December 31, 1995.

                                                    Percent  Percent
                                        Nature of    of       of
                 Class     Class        Beneficial Class    Class
Directors          A         B          Ownership    A        B

Steven Markowitz     58                 (1) (3)      .07 %
                           13,562       (1) (3)               1.06%
                81,531*                 (2) (4)    95.94 %
                         242,016*       (2) (4)              18.94%

Eugene Moroz
                              799       (1) (3) as
                                        to 799
                           12,056       (2) (4) as
                                        to 12,156             1.01%
Leonard W.
Helfrich                      328       (2) (4)                .03%


Orville G. Hawk
                               50       (2) (4)                .004%

Martha Markowitz
                           16,934       (1) (3)               1.32%
                81,531*                 (2) (4)    95.94 %
                         242,016*       (2) (4)              18.94%

                                                    Percent  Percent
All Directors                                        of       of
and Officers     Class     Class                   Class    Class
as a Group         A         B                       A        B

     6            81,589**   285,745**              96.01%** 22.36%

              (1)   Sole voting power
              (2)   Shared voting power
              (3)   Sole investment power
              (4)   Shared investment power

                     *     Shares owned by the Jerome Markowitz Trust  for
                  which   Martha  Markowitz  and  Steven  Markowitz,   Co-
                  Trustees, have shared voting and investment power and of
                  which  Martha  Markowitz is the primary beneficiary  and
                  Steven Markowitz, one of the residuary beneficiaries.

                    **   The shares held by the Jerome Markowitz Trust are
                  not duplicated in the totals for the Class A and Class B
                  Shares.

     (c)      Changes in Control.  Not required to be answered.

Item 13.    Certain Relationships and Related Transactions

            See  Note  9  to Financial Statements, concerning an  agreement
            between  the  Company and Martha Markowitz, a Director  of  the
            Company.

                                  PART IV

Item 14.    Exhibits, Financial Statement Schedules and Reports on Form 8-K

            (a)  (1)  Financial Statements

                       The  following consolidated financial statements  of
                 Allen  Organ Company and its subsidiaries are included  in
                 Part II, Item 8:

                      Independent Auditors' Report.

                       Consolidated Balance Sheets as of December 31,  1995
                 and 1994.

                        Consolidated  Statements  of  Income  and  Retained
                 Earnings for the years ended December 31, 1995, 1994,  and
                 1993.

                       Consolidated Statements of cash flows for the  years
                 ended December 31, 1995, 1994, and 1993.

                      Notes to Consolidated Financial Statements.

                      The individual financial statements of the Registrants
                 subsidiaries have  been  omitted, as they are  all included
                 in the consolidated financial statements referred to above.

                 (a)  (2) Financial Statement Schedules

                      Financial schedules are omitted as not applicable.

                 (a)  (3) Exhibits
                      Exhibit No.    Description
                      2(4)      Plan of acquisition
                      3.1(1)    Articles of Incorporation as amended
                      3.2(2)    Bylaws, as amended
                      10.1(2)   Officers Bonus Plan as amended December 2, 1991
                      10.2(3)   Agreement of Amendment between the Company
                                and Martha Markowitz
                      21       Subsidiaries of the registrant

                     1. Incorporated  by  reference  to  the  exhibit filed 
                        with the Registrants Annual Report on Form  10-K
                        for the year ended December 31, 1984.
                     2. Incorporated  by  reference  to  the  exhibit filed 
                        with the Registrants Annual Report on Form  10-K
                        for the year ended December 31, 1991.
                     3. Incorporated  by  reference  to  the  exhibit filed 
                        with the Registrants Annual Report on Form  10-K
                        for the year ended December 31, 1992.
                     4. Incorporated  by  reference  to  the  exhibit filed 
                        with the Registrants Current Report on form  8-K
                        dated August 1, 1995.
    

                 (b)   Reports  on  Form  8-K.  None  filed  during  fourth
                 quarter of 1995.


SIGNATURES

Pursuant  to  the  requirements of Section 13 or 15 (d) 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



Date: March 20, 1996                 STEVEN A. MARKOWITZ
                                     Steven A. Markowitz
                                     Chief Executive   Officer,   President   
                                     and Director

Date: March 20, 1996                 LEONARD W. HELFRICH
                                     Leonard W. Helfrich
                                     Secretary, Treasurer, and Director,
                                     Principal Financial and Accounting
                                     Officer

Date: March 20, 1996                 EUGENE MOROZ
                                     Eugene Moroz
                                     Vice President and Director

Date: March 20, 1996                 MARTHA MARKOWITZ
                                     Martha Markowitz
                                     Director