SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

SCHEDULE 13G/A

Under the Securities Exchange Act of 1934
(Amendment No. 2)*

Alleghany Corporation
______________________________________________________________________________
(Name of Issuer)

Common Stock, Par Value $1.00 Per Share
___________________________________________________________
 (Title of Class of Securities)

017175100
________________________________________________
(CUSIP Number)




	*The remainder of this cover page shall be filled out for a reporting
 person's initial filing on this form with respect to the subject class of
 securities, and for any subsequent amendment containing information which would
 alter the disclosures provided in a prior page.

	The information required in the remainder of this cover page shall not be
 deemed to be "filed" for the purpose of Section 18 of the Securities
 Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
 that section of the Act but shall be subject to all other provisions  of
 the Act (however, see the Notes).










(Continued on following pages (s))

Page  1  of   4   Pages
CUSIP No.            017175100    		13G/A	         	  Page  2  of  4  Pages

 (1)  Names of Reporting Persons, S.S. or I.R.S. Identifications Nos.
 of Above Persons

	Sasco Capital, Inc.
______________________________________________________________________________

 (2)  Check the Appropriate Box if a Member of a Group*   (a)    /     /
  								           (b)   / X /
______________________________________________________________________________

 (3)  SEC Use Only

______________________________________________________________________________

 (4)  Citizenship or Place of Organization

	Fairfield, Connecticut
______________________________________________________________________________

Number of Shares 	(5)  Sole Voting Power
   Beneficially
   Owned by	198,193
   Each Reporting	_______________________________________________
   Person With	(6)  Shared Voting Power

	None
	_______________________________________________
	(7)  Sole Dispositive Power

	370,005
					_______________________________________________
					(8)  Shared Dispositive Power

	None
______________________________________________________________________________
 (9)  Aggregate Amount Beneficially Owned by Each Reporting Person

	370,005
______________________________________________________________________________
(10)  Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares*

______________________________________________________________________________
(11)  Percent of Class Represented by Amount in Row (9)

	5.1%
______________________________________________________________________________
(12)  Type of Reporting Person*

	IA

Page  3  of  4  Pages
Item 1(a)	Name of Issuer:

	The issuer of the securities to which this statement relates is Alleghany
 Corporation.

Item 1(b)	Address of Issuer's Principal Executive Offices:

	375 Park Avenue
	 32nd Floor
		New York, NY  10152

Item 2(a)	Name of Person Filing:

		Sasco Capital, Incorporated

Item 2(b)	Address of Principal Business Office:

		10 Sasco Hill Road
		Fairfield, CT  06430

Item 2(c)	Citizenship:

		Sasco Capital, Incorporated is a Connecticut corporation whose office is
 at Fairfield, Connecticut.

Item 2(d)	Title of Class of Securities:

		Common stock, par value $1.00 per share.

Item 2(e)	CUSIP Number:

		017175100

Item 3		This statement is filed pursuant to Rule 13d-1(b) and the person
 filing is:

		Daniel L. Leary, Secretary, for Sasco Capital, Inc.

Item 4		Ownership.

		The 370,005 acquired by Sasco Capital, Inc. constitute 5.1% of the
 outstanding shares of Alleghany Corporation.  Sasco Capital, Inc. has
 beneficial  ownership to direct the disposition of only these 370,005
 and has the sole power to vote 198,193 shares.  Sasco Capital, Inc. has no
 shared powers with regards to any other shares of Alleghany Corporation.


Page  4  of  4  Pages
Item 5		Ownership of 5% or less of a Class

		Not applicable.

Item 6		Ownership of More than 5% on Behalf of Another Person.

		Not applicable.

Item 7		Identification and Classification of the Subsidiary Which Acquired
 Security	Being Reported on by the Parent Holding Company.

		Not applicable.

Item 8		Identification and Classification of Members of the Group.

		Not applicable.

Item 9		Notice of Dissolution of Group.

Item 10		Certification.

		By signing below, I, Daniel L. Leary Secretary of Sasco Capital, Inc.,
 certify that, to the best of my knowledge and belief, the securities
 referred to above were acquired in the ordinary course of business and
 were not acquired for the purpose of and do not have the effect of changing
 or influencing the control of the issuer of such securities and were not
 acquired in connection with or as a participant in any transaction having
 such purposes or effect.

		After reasonable inquiry and to the best of my knowledge and belief,
 I certify that the information set forth in this statement is true,
 complete and correct.



			_______________________________
			Daniel L. Leary
			Secretary
			February 10, 2000