8-K

                            SECURITIES AND EXCHANGE COMMISSION
                                  WASHINGTON, D.C.  20549

                                         FORM 8-K

                     CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                            THE SECURITIES EXCHANGE ACT OF 1934

             Date of Report (date of earliest event reported):  June 29, 1999


                                        MAXXAM INC.
                  (Exact name of Registrant as Specified in its Charter)


                                         DELAWARE
                      (State or other jurisdiction of incorporation)


                                          1-3924
                                 (Commission File Number)


                                        95-2078752
                          (I.R.S. Employer Identification Number)


        5847 SAN FELIPE, SUITE 2600                                77057
              HOUSTON, TEXAS                                    (Zip Code)
           (Address of Principal
            Executive Offices)


Registrant's telephone number, including area code:  (713) 975-7600


ITEM 5.     OTHER EVENTS

            Attached hereto as Exhibit 99.1 is a press release dated June 29,
1999 announcing that Kaiser Aluminum Corporation, in which the Registrant,
directly or indirectly, holds a 63% voting interest, will include a net
pre-tax gain of approximately $13 million in its financial results for the
second quarter of 1999 as a result of two significant non-operating items:
a gain on the sale of its interest in a wheel joint venture and a non-cash
charge for asbestos-related claims.  This press release is being filed with
the Securities and Exchange Commission pursuant to Rule 135c under the
Securities Act of 1933.


                                        SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                                          MAXXAM INC.
                                                         (Registrant)


Date:  July 2, 1999                 By:              /S/ PAUL N. SCHWARTZ
                                                       Paul N. Schwartz
                                                 President and Chief Financial
                                                            Officer

EX-99.1

                                Exhibit 99.1

For Information:  Scott Lamb
Telephone:  (713) 267-3826
scott.lamb@kaiseral.com                                June 29, 1999


     KAISER ALUMINUM ANNOUNCES EXPECTED IMPACT OF CERTAIN NON-OPERATING
                 ADJUSTMENTS ON SECOND QUARTER 1999 RESULTS


          HOUSTON, Texas, June 29, 1999 -- Kaiser Aluminum Corporation
(NYSE:KLU) said today that its financial results for the second quarter of
1999 will include a net pre-tax gain of approximately $13 million as a
result of  two significant non-operating items: a gain on the sale of its
interest in a wheel joint venture and a non-cash charge for asbestos-
related claims.

          As previously announced, in early April 1999 the company
completed the sale of its 50% interest in AKW L.P., an aluminum wheel joint
venture, to its partner, Accuride Corporation. The cash sale represents a
continuation of the company's strategy to focus its resources and efforts
in industry segments that are considered most attractive and in which it
believes it is well positioned to capture value.  The pre-tax gain on the
sale will be approximately $51 million and will have an approximate $.42
impact on basic earnings per share. The pre-tax gain will be reflected in
Other income (expense).

          The asbestos-related pre-tax charge, which is expected to be
approximately $38 million or an approximate $.32 impact on basic earnings
per share, results from a reassessment of existing reserves, net of
expected insurance recoveries, based on recent cost and other trends
experienced by Kaiser and other companies. This charge will also be
reflected in Other income (expense).

          As the company has previously reported, Kaiser is a defendant in
a number of lawsuits in which the plaintiffs allege that certain of their
injuries were caused by, among other things, exposure to asbestos during,
and as a result of their employment or association with Kaiser or exposure
to products containing asbestos produced or sold by Kaiser.  The lawsuits
generally relate to products Kaiser has not sold for at least 20 years. The
company has insurance coverage for a portion of its aggregate exposure to
the settlement of asbestos claims.

         Kaiser Aluminum is a leading producer of alumina, primary
aluminum, and fabricated aluminum products.  MAXXAM Inc. (ASE:MXM) directly
and indirectly holds approximately 63 percent of  Kaiser.

          Company press releases may contain statements that constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995.  The company cautions that any such forward-
looking statements are not guarantees of future performance and involve
significant risks and uncertainties, and that actual results may vary
materially from those expressed or implied in the forward-looking
statements as a result of various factors.

                                   F-813