³U.S. LABOR DEPT FILES SUIT AGAINST MAXXAM²

DATELINE: WASHINGTON, JUNE 12, REUTER

	The U.S. Department of Labor filed suit against MAXXAM Inc and unit Pacific 
Lumber for violating the Employee Retirement Income Security Act by improperly 
selecting and purchasing annuity contracts to fund pensions.

 	The Labor Department alleged that MAXXAM imprudently selected Executive Life 
Insurance Co of California as an annuity provider despite negative findings by a 
recognized insurance expert.

 	Executive Life Insurance was placed in conservatorship in April.

 	MAXXAM acquired Pacific Lumber in 1986.

 	It subsequently terminated the Pacific Lumber pension plan to recover over 62 
million dollars in excess pension assets and annuities were purchased for pension 
plan participants and beneficiaries.

 	The department said the suit in Federal District Court seeks to restore any 
losses suffered by beneficiaries and participants.

June 12, 1991, Wednesday, BC cycle
SECTION: Financial Report.