EXHIBIT 18  
          [ERNST & YOUNG LLP LOGO]   One Oxford Centre  Phone 412 644 7800
                                     Pittsburgh, Pennsylvania  15219
           
          November 13, 1996 
           
           
          Mr. James L. Murdy 
          Senior Vice President and Chief Financial Officer 
          Allegheny Teledyne Incorporated 
          Pittsburgh, Pennsylvania 
           
          Dear Sir: 
           
                  Note 1 of notes to condensed Consolidated Financial
          Statements of Allegheny Teledyne Incorporated (the Company)
          included in its Form 10-Q for the period ended September 30, 1996 
          describes changes in the method of accounting for depreciation 
          of buildings and equipment.  Effective July 1, 1996,  the 
          Company adopted the straight-line method of depreciation for all 
          buildings and equipment placed in service on or after that date.  
          Buildings and equipment placed in service prior to July 1, 1996 
          are depreciated principally using accelerated methods of 
          depreciation.  You have advised us that you believe that this
          change is to a preferable method in your circumstances because
          the change more appropriately reflects the Company's financial
          results by better allocating costs of new property over the 
          useful lives of these assets.  In addition, the new method more
          closely conforms with that prevalent in the industry and to that
          used by the Company's other operating units. 
           
                       There are no authoritative criteria for determining 
          a preferable depreciation method based on the particular
          circumstances; however, we conclude that the change in the method 
          of accounting for depreciating property is to an acceptable
          alternative method which based on your business judgment to make
          this change for the reasons cited above, is preferable in your 
          circumstances.  As more fully described in  Notes 1 and  2 of 
          the  condensed financial  statements included in Form 10-Q for 
          the period ended September 30, 1996, Allegheny Teledyne
          Incorporated was formed effective August 15, 1996, as a result of
          the merger of Allegheny Ludlum Corporation and Teledyne, Inc. The
          merger was accounted for under the pooling of interests method of
          accounting. We have not conducted an audit in accordance with
          generally accepted auditing standards of any financial statements
          of Allegheny Teledyne Incorporated as of any date or for any 
          period subsequent to December 31, 1995, and therefore do not
          express any opinion on any financial statements of Allegheny
          Teledyne Incorporated subsequent to that date. 
           
                                             Very truly yours,              
                                             /s/ Ernst & Young LLP 




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