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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
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
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CUSIP No. 017175100 13G 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 287,811
Each Reporting _______________________________________________
Person With (6) Shared Voting Power
None
_______________________________________________
(7) Sole Dispositive Power
466,846
_______________________________________________
(8) Shared Dispositive Power
None
____________________________________________________________________________
(9) Aggregate Amount Beneficially Owned by Each Reporting Person
466,846
____________________________________________________________________________
(10) Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares*
____________________________________________________________________________
(11) Percent of Class Represented by Amount in Row (9)
6.4%
____________________________________________________________________________
(12) Type of Reporting Person*
IA
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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 466,846 acquired by Sasco Capital, Inc. constitute 6.4% of the
outstanding shares of Alleghany Corporation. Sasco Capital, Inc. has
beneficial ownership to direct the disposition of only these 466,846 and
has the sole power to vote 287,811 shares. Sasco Capital, Inc. has no
shared powers with regards to any other shares of Alleghany Corporation.
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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 8, 1999
