EXHIBIT 11

                                MAXXAM INC.

                         COMPUTATION OF NET INCOME
                   PER COMMON AND COMMON EQUIVALENT SHARE
        (In millions of dollars, except share and per share amounts)





                                          Three Months Ended            Six Months Ended
                                               June 30,                     June 30,
                                     ---------------------------- ---------------------------
                                          1997           1996          1997          1996
                                     -------------- ------------- ------------- -------------
                                                                    
     Weighted average common and common
     equivalent shares outstanding
     during each period                   9,200,313     9,376,703     9,262,712     9,376,703
     Common equivalent shares attributable
     to stock options
     and convertible securities              94,843        94,511        98,312        93,074
                                     -------------- ------------- ------------- -------------
     Weighted average common and
          common equivalent
          shares                          9,295,156     9,471,214     9,361,024     9,469,777
                                     ============== ============= ============= =============

Net income                           $         31.9 $        16.9 $        32.6 $        22.7
                                     ============== ============= ============= =============

Net income per common and common
     equivalent share                $         3.43 $        1.78 $        3.48 $        2.40
                                     ============== ============= ============= =============