[Note: Page references in this electronic filing refer to the paper copy
       of the Form 10-K.]

                               TABLE OF CONTENTS


                                     PART I
                                                                    Page
                                                                    ----



Items 1. & 2.  Business and Properties ..............................  1

   A.    Ocean Transportation .......................................  2
         (1)   Freight Services .....................................  2
         (2)   Vessels ..............................................  3
         (3)   Terminals ............................................  3
         (4)   Container Leasing.....................................  5
         (5)   Other Services .......................................  5
         (6)   Competition ..........................................  6
         (7)   Labor Relations ......................................  7
         (8)   Rate Regulation ......................................  7

   B.    Property Development and Management ........................  8
         (1)   General ..............................................  8
         (2)   Planning and Zoning ..................................  9
         (3)   Residential Projects ................................. 10
         (4)   Commercial and Industrial Properties ................. 11

   C.    Food Products .............................................. 14
         (1)   Production ........................................... 14
         (2)   Sugar Refining; Marketing of Sugar
               and Coffee ........................................... 16
         (3)   Competition and Sugar Legislation .................... 17
         (4)   Properties and Water ................................. 19

   D.    Employees and Labor Relations .............................. 21
   E.    Energy ..................................................... 24


Item 3.  Legal Proceedings .......................................... 25


Item 4.  Submission of Matters to a Vote of
         Security Holders ........................................... 26



                                    PART II


Item 5.  Market for Registrant's Common Equity and
         Related Stockholder Matters ................................ 27


Item 6.  Selected Financial Data .................................... 27


Item 7.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations .............. 27


Item 8.  Financial Statements and Supplementary Data ................ 28
                                                          


Item 9.  Changes in and Disagreements With
         Accountants on Accounting and Financial
         Disclosure ................................................. 28



                                    PART III


Item 10. Directors and Executive Officers of
         the Registrant ............................................. 28

   A.    Directors .................................................. 28

   B.    Executive Officers of the Registrant ....................... 28


Item 11. Executive Compensation ..................................... 30


Item 12. Security Ownership of Certain Beneficial
         Owners and Management ...................................... 30


Item 13. Certain Relationships and Related
         Transactions ............................................... 31



                                    PART IV


Item 14. Exhibits, Financial Statement Schedules,
         and Reports on Form 8-K .................................... 31

   A.    Financial Statements ....................................... 31

   B.    Financial Statement Schedules .............................. 31

   C.    Exhibits Required by Item 601 of
         Regulation S-K ............................................. 32

   D.    Reports on Form 8-K ........................................ 41

Signatures .......................................................... 42

Independent Auditors' Report ........................................ 44
Schedule III ........................................................ 45

Independent Auditors' Consent ....................................... 49


<PAGE>

                           ALEXANDER & BALDWIN, INC.
                           -------------------------


                                   FORM 10-K
                                   ---------


                       ANNUAL REPORT FOR THE FISCAL YEAR
                            ENDED DECEMBER 31, 1995



                                     PART I
                                     ------



ITEMS 1 AND 2.  BUSINESS AND PROPERTIES
- ---------------------------------------

      Alexander & Baldwin, Inc. ("A&B") is a diversified corporation with most
of its operations centered in Hawaii.  It was founded in 1870 and incorporated
in 1900.  Ocean transportation operations and related shoreside operations of
A&B are conducted by a wholly-owned subsidiary, Matson Navigation Company, Inc.
("Matson"), and several Matson subsidiaries, all of which are headquartered in
San Francisco.  Real property and food products operations are conducted by a
wholly-owned subsidiary of A&B, A&B-Hawaii, Inc. ("ABHI"), and several ABHI
subsidiaries, including California and Hawaiian Sugar Company, Inc. ("C&H"), 
all of which are headquartered in Hawaii or California.

      The industry segments of A&B are as follows:

      A.  Ocean Transportation - carrying freight, primarily between various
          --------------------
          United States Pacific Coast ports, major Hawaii ports and Guam;
          providing terminal, stevedoring, tugboat and container equipment 
          maintenance services in certain of those ports; and arranging United
          States mainland intermodal transportation.

      B.  Property Development and Management - developing real property in
          -----------------------------------
          Hawaii and on the U.S. Mainland; selling residential properties in
          Hawaii; and managing, leasing, selling and purchasing real property 
          in Hawaii and on the U.S. Mainland.

      C.  Food Products - growing sugar cane and coffee in Hawaii; producing 
          -------------
          raw sugar, molasses and green coffee; refining raw sugar, and 
          marketing and distributing refined sugar products, primarily in the
          western United States; marketing and distributing roasted coffee and
          green coffee; providing sugar and molasses hauling and storage,
          general freight and petroleum hauling and self-storage services in
          Hawaii; and generating and selling electricity.

      For information about the revenue, operating profits and identifiable
assets of A&B's industry segments for the three years ended December 31, 1995,
see "Industry Segment Information" on page 24 of the Alexander & Baldwin, Inc.
1995 Annual Report ("1995 Annual Report"), which information is incorporated
herein by reference.


DESCRIPTION OF BUSINESS AND PROPERTIES

      A.    OCEAN TRANSPORTATION
            --------------------


            (1)   FREIGHT SERVICES
                  ----------------


               Matson's Hawaii Service offers containership freight services
between the ports of Los Angeles, Oakland, Seattle, and the major ports in
Hawaii, which are located on the islands of Oahu, Kauai, Maui and Hawaii.
Roll-on/roll-off service is provided between Los Angeles and the major ports in
Hawaii.  Portland container cargo is moved overland between Portland and 
Seattle at no extra charge.

               Matson is the principal carrier of ocean cargo between the 
United States Pacific Coast and Hawaii.  In 1995, Matson carried 157,200
containers (compared with 173,300 containers in 1994) and 107,100 motor
vehicles (compared with 116,800 in 1994) between those destinations.  Principal
westbound cargoes carried by Matson to Hawaii include dry containers of mixed
commodities, refrigerated cargoes, packaged foods, building materials and motor
vehicles. Principal eastbound cargoes carried by Matson from Hawaii include
household goods, canned pineapple, refrigerated containers of fresh pineapple,
motor vehicles and molasses.  The preponderance of Matson's revenue is derived
from the westbound carriage of containerized freight and motor vehicles.

               Matson's Pacific Coast Service provides containership freight
service between the ports of Los Angeles, Oakland, Seattle and Vancouver,
British Columbia.  In 1995, its first full year of operation, Matson carried
26,278 containers in the Pacific Coast Service.  Matson's Mid-Pacific Service
offers container and conventional freight service between the United States
Pacific Coast and the ports of Kwajalein, Ebeye and Majuro in the Republic of
the Marshall Islands and Johnston Island, all via Honolulu.

               In February 1996, Matson inaugurated its Guam-Micronesia 
Service, which complements Matson's Hawaii Service by providing westbound
containership freight service from the United States Pacific Coast and Hawaii
to Guam and Micronesia.  The new service is a component of a strategic alliance
formed in 1995 between Matson and American President Lines, Ltd. ("APL"),
pursuant to which they commenced operating, beginning February 1996, a new
Pacific Alliance Service between the United States Pacific Coast and Hawaii,
Guam, Japan, and South Korea.  Under the terms of the alliance, Matson
purchased from APL six containerships, shoreside spare parts and assets related
to APL's Guam service in December 1995 and early 1996 for $168 million, will
operate four of those vessels and one existing Matson vessel in the Pacific
Alliance Service, and will charter back to APL for 10 years cargo space for
APL's continuing ocean cargo service from Asian ports to the United States. 
The new service is expected to improve Matson's vessel utilization on the
eastbound return trip of Matson's Hawaii Service, thereby resulting in cost
savings.

                  See "Rate Regulation" below with respect to Matson's freight
rates.

            (2)   VESSELS
                  -------

                  Matson's fleet consists of eleven containerships (including
the six containerships purchased from APL), four combination
container/trailerships, one roll-on/roll-off barge, two container barges
equipped with cranes which serve the neighbor islands of Hawaii and one con-
tainer barge equipped with cranes in the Mid-Pacific Service.

                  The nineteen vessels in Matson's fleet represent an invest-
ment of approximately $814,300,000 during the past 26 years.  With four 
exceptions, the current fleet has been acquired through the Matson Capital
Construction Fund, established under Section 607 of the Merchant Marine Act,
1936, as amended.  The exceptions are three steam-powered containerships
purchased from APL in 1995 and 1996, and a combination container/trailership
which Matson continues to operate under a charter for a 25-year term ending in
1998, with options to renew the charter for a total of up to five years and to
purchase the vessel at the end of the charter at fair market value.

                  Matson's fleet units are described in the list on the
following page.


<PAGE>

                                               MATSON NAVIGATION COMPANY, INC.
                                               -------------------------------

                                                         FLEET - 3/1/96
                                                         --------------

<TABLE>
<CAPTION>

                                                                                             Usable Cargo Capacity                
                                                                        -----------------------------------------------------------
                                                                                  Containers               Vehicles       Molasses
                                 Year             Maximum    Maximum    -------------------------------  --------------   --------
Vessel         Official Year    Recon-             Speed   Deadweight                   Reefer                          
 Name           Number  Built  structed   Length  (Knots)  (Long Tons)  20'  24'   40'  Slots   TEUs (1) Autos Trailers  Short Tons
- -----------------------------------------------------------------------------------------------------------------------------------

<S>             <C>     <C>      <C>    <C>        <C>       <C>       <C>   <C>   <C>   <C>     <C>       <C>      <C>      <C>

Diesel-Powered
- --------------
R.J. PFEIFFER   979814  1992            713'6"     23.0      27,100     48   171    988  300     2,229      --     --        --  
MOKIHANA        655397  1983            860'2"     23.0      30,167    182   312  1,134  400     2,824
MAHIMAHI        653424  1982            860'2"     23.0      30,167    182   312  1,134  400     2,824
MANOA           651627  1982            860'2"     23.0      30,187    182   312  1,134  400     2,824

Steam-Powered
- -------------
KAUAI           621042  1980     1994   720'5-1/2" 22.5      26,308          458    538  310     1,626     44               2,600
MAUI            591709  1978     1993   720'5-1/2" 22.5      26,623          458    538  310     1,626                      2,600
KAIMOKU (2)     573223  1976     1990   790'9"     21.5      14,551          276    310  119     1,020    350      54        --
KAINALU (2)     557149  1974     1990   790'9"     21.5      14,976          276    310  119     1,020    350      54        --
MATSONIA        553090  1973     1987   760'0"     21.5      22,501          683    400  335     1,620    450      56       4,300
LURLINE         549900  1973     1982   826'6"     21.5      22,221          597    345  340     1,476    220      81       2,100
EWA             530148  1972     1978   787'8"     21.0      38,656    294          861  180     2,015
CHIEF GADAO     530138  1971     1978   787'8"     21.0      37,346    230   464    597  274     1,981
LIHUE           530137  1971     1978   787'8"     21.0      38,656    286   276    681  188     1,979
MANULANI        528400  1970            720'5-1/2" 22.5      27,165          537    416  251     1,476                      5,300
MANUKAI         524219  1970            720'5-1/2" 22.5      27,107          537    416  251     1,476                      5,300

Other
- -----
WAIALEALE (3)   978516  1991            345'0"      --        5,621                       35              230      45
ISLANDER (4)    933804  1988            372'0"      --        6,837          276     24   70       380                       --
MAUNA LOA (4)   676973  1984            350'0"      --        4,658          144     72   84       316                      2,100
HALEAKALA (4)   676972  1984            350'0"      --        4,658          144     72   84       316                      2,100
MAOI (5)        618705  1980             75'0"     10.0         --
JOE SEVIER (5)  500799  1965             80'0"     10.0         --
- ------------------------------------------------------
(1) "Twenty-foot Equivalent Units" (includes trailers)
(2) Reserve Status
(3) Roll-on/Roll-off Barge
(4) Container Barge
(5) Tug

</TABLE>



<PAGE>

                  As a complement to its fleet, Matson owns or has under 
capital leases approximately 17,400 containers, 8,500 container chassis, 480
auto-frames and miscellaneous other equipment.  After disposing of older
container equipment and adding equipment purchased for the new Guam-Micronesia
Service, Matson expects to have 18,500 containers and 8,960 chassis at the end
of 1996.  Capital expenditures by Matson for vessels and equipment totaled
approximately $45,700,000 in 1995.

            (3)   TERMINALS
                  ---------

                  Matson Terminals, Inc. ("Matson Terminals"), a wholly-owned
subsidiary of Matson, provides container stevedoring, container equipment
maintenance and other terminal services for Matson at the ports of Honolulu,
Los Angeles, Oakland and Seattle, as well as for other ocean carriers at its
Pacific Coast and Honolulu locations.

                  Matson Terminals is among the largest container stevedoring
and terminal operators on the United States Pacific Coast.  An estimated total
of 1,236 vessel calls were served at all Matson Terminals container facilities
in 1995.

                  Matson Terminals owns or leases the shoreside cranes and
supporting container-handling equipment at its container facilities and owns 
all of the maintenance equipment used in providing container equipment and
terminal maintenance services.

                  Matson Terminals has lease agreements with port authorities
for the use of publicly-owned container terminal properties at Honolulu, Los
Angeles, Oakland and Seattle.  Matson Terminals does not anticipate any
difficulty in renewing its lease agreements as they expire or in finding
satisfactory alternative premises.  Current terminal lease agreements expire as
follows:

            Honolulu                September 2016

            Los Angeles             January 1999

            Oakland                 December 2008

            Seattle                 December 1999, subject to an option to 
                                    renew for ten years

                  Capital expenditures for terminals and equipment totaled
approximately $1,700,000 in 1995.

            (4)   CONTAINER LEASING
                  -----------------

                  In June 1995, Matson Leasing Company, Inc. ("Matson Leasing")
sold substantially all of its assets for $362 million, thereby exiting the
international marine container leasing business.  The proceeds from the sale of
the Matson Leasing business were used principally to repay debt, to pay tax
obligations and to fund the capital needs of Matson.

            (5)   OTHER SERVICES
                  --------------

                  Matson Intermodal System, Inc. ("Matson Intermodal"), a
wholly-owned subsidiary of Matson, was formed in 1987 to serve as an intermodal
marketing company which arranges United States Mainland rail and truck
transportation for shippers and carriers, frequently in conjunction with prior
or subsequent ocean transportation.

                  Matson Services Company, Inc. ("Matson Services"), a
wholly-owned subsidiary of Matson, owns two tugboats which are employed in
Hawaiian waters under operating agreements to provide harbor assistance for
vessels calling at the islands of Hawaii and Maui.

            (6)   COMPETITION
                  -----------

                  Matson's Hawaii and Guam-Micronesia Services have one major
containership competitor which serves Long Beach, Oakland, Tacoma, Honolulu and
Guam.  Other competitors in the Hawaii Service include two common carrier barge
services, unregulated proprietary and contract carriers of bulk cargoes and air
cargo services.
                  Matson vessels are operated on schedules which make available
to shippers and consignees regular day-of-the-week sailings from the United
States Pacific Coast and day-of-the-week arrivals to Hawaii, a type of service
that is very attractive to customers because it decreases their overall
distribution costs.  In addition, Matson competes by offering more comprehen-
sive service to customers, supported by its scope of equipment and its
efficiency and experience in the handling of containerized cargoes, and by
competitive pricing. Although air freight competition is intense for time-
sensitive or perishable cargoes, historic and projected inroads of such
competition in cargo volume are limited by the amount of cargo space available
in passenger aircraft and by generally higher air freight rates.

                  The carriage of cargo between the United States Pacific Coast
and Hawaii on foreign-built and foreign-documented vessels is prohibited by
Section 27 of the Merchant Marine Act, 1920, frequently referred to as the
Jones Act.  However, foreign-flag vessels bringing cargo to Hawaii from foreign
sources provide indirect competition for Matson's container freight service
between the United States Pacific Coast and Hawaii.  Far East countries,
Australia and New Zealand have direct foreign-flag services to Hawaii.

                  In response to coordinated efforts by various interests to
convince Congress to repeal the Jones Act, a coalition of more than 400
businesses and organizations, including Matson, have formed the Maritime
Cabotage Task Force to support the retention of the Jones Act and other
cabotage laws.  Repeal of the Jones Act would allow all foreign-flag vessel
operators, who would not have to abide by U.S. laws and regulations, to sail
between American ports in direct competition with Matson and other U.S.
operators who must comply with such laws and regulations.  The task force seeks
to inform elected officials and the public about the economic, national
security, commercial, safety and environmental benefits of the Jones Act and
similar cabotage laws.

                  Matson Terminals competes with numerous other companies which
perform the same or similar services.  The container stevedoring and terminal
services business is extremely competitive.  The primary considerations of
ocean carriers when selecting stevedore and terminal operators are rates,
quality of service, expertise and reputation.  The industry is highly capital-
intensive because of the need for expensive container-handling equipment.

                  Matson Intermodal competes for freight with a number of large
and small companies engaged in intermodal transportation.  Matson Services
competes with other large operators of tugboats in Hawaiian waters.

            (7)   LABOR RELATIONS
                  ---------------

                  The absence of strikes and the availability of labor through
hiring halls are important to maintenance of profitable operations by Matson.
Matson's operations have not been disrupted significantly by strikes in the
past 24 years.  See "Employees and Labor Relations" below for a description of
labor agreements and certain unfunded liabilities for multi-employer pension
plans to which Matson and Matson Terminals contribute.

            (8)   RATE REGULATION
                  ---------------

               In November 1995, Matson filed a 3.8 percent general rate
increase for the Hawaii Service that became effective on January 28, 1996.

               The Interstate Commerce Commission Termination Act of 1995 (the
"Act"), which took effect on January 1, 1996, will substantially revise
regulation of water common carriers, like Matson, which operate between the
U.S. Mainland and domestic offshore states and territories.

               Previously, Matson was regulated by the Federal Maritime
Commission ("FMC") with respect to port-to-port service rates, as well as by
the Interstate Commerce Commission ("ICC") to the extent of Matson's joint
rates with motor carriers.

               The Act will end bifurcated regulation by the FMC and ICC of
water carriers providing service in the domestic offshore trades.  The Act has
established within the United States Department of Transportation a new agency,
the Surface Transportation Board ("STB").  The STB will have jurisdiction over
both water carriers and motor carriers providing service in the domestic
offshore trades.

               Carriers under STB jurisdiction must file rates with the STB and
charge only those rates.  The Act establishes a Zone of Reasonableness ("ZOR")
which, as adjusted by reference to the Producer Price Index, will allow annual
increases not exceeding 7.5% and rate reductions not exceeding 10%, measured
against the rate in effect one year before the change.  Rates which qualify for
ZOR treatment are deemed reasonable and are not subject to investigation or
suspension.  Rates outside the ZOR also must be reasonable, but no regulations
have been proposed for determining reasonableness.

      B.    PROPERTY DEVELOPMENT AND MANAGEMENT
            -----------------------------------

            (1)   GENERAL
                  -------

                  The property development and management operations of A&B are
conducted by ABHI, a wholly-owned subsidiary headquartered in Honolulu.  A&B
and its subsidiaries own approximately 92,784 acres of land, consisting of
approximately 90,744 acres in Hawaii and approximately 2,040 acres elsewhere,
as follows:

            LOCATION                                NO. OF ACRES
            --------                                ------------

            Maui  ..................................   68,840
            Kauai  .................................   21,904
            California  ............................    1,950
            Colorado  ..............................        5
            Nevada  ................................       18
            Texas  .................................       42
            Washington  ............................       22
            Florida  ...............................        3

As described more fully in the table below, the bulk of this acreage currently
is used for agricultural and related activities, and includes pasture land
leased to ranchers, watershed and conservation reserves.  The balance is used
or planned for development or other urban uses.  An additional 19,000 acres on
Maui and Kauai are leased from third parties.

                  CURRENT USE                 NO. OF ACRES
                  -----------                 ------------

     Sugarcane/coffee cultivation and
        contributory purposes ...........................   44,377
     Watershed and conservation .........................   28,500
     Other agricultural and pasture land ................   16,678
     Hawaii commercial and industrial land ..............      494
     Hawaii residential, including land
        zoned for hotel and apartment use ...............      695
                                                            ------

          Total in Hawaii ...............................   90,744
                                                            ------

     California ranch land...............................    1,901
     U.S. Mainland commercial and
        industrial land .................................      139
                                                            ------

          TOTAL .........................................   92,784
                                                            ======

                  ABHI is actively involved in the entire spectrum of land
development, including planning, zoning, financing, constructing, purchasing,
managing and leasing, and selling and exchanging real property.

            (2)   PLANNING AND ZONING
                  -------------------

                  The entitlement process for development of property in Hawaii
is both time-consuming and costly, involving numerous State and County
regulatory approvals.  For example, conversion of an agriculturally-zoned
parcel to residential zoning usually requires the following approvals:

     - amendment of the County general plan to reflect the desired residential
       use;

     - approval by the State Land Use Commission to reclassify the parcel from
       the "agricultural" district to the "urban" district;

     - County approval to rezone the property to the precise residential use
       desired; and,

     - if the parcel is located in the Coastal Zone Management area, the
       granting of a Special Management Area Permit by the County Planning Com-
       mission.

The entitlement process is complicated by the conditions, restrictions and
exactions that are placed on these approvals, such as the construction of
infrastructure improvements, payment of impact fees, restrictions on the
permitted uses of the land, provision of affordable housing, and/or mandatory
fee sale of portions of the project.

                  ABHI actively works with regulatory agencies, commissions and
legislative bodies at various levels of government to obtain zoning
reclassification of land to its highest and best use.  ABHI designates a parcel
as "fully-zoned" when all necessary government approvals have been obtained.
Approximately 1,189 acres of property currently are designated fully-zoned.

                  As described in more detail below, work to obtain entitle-
ments for urban use in 1995 focused on (i) the Kukui'ula residential develop-
ment on Kauai, (ii) the proposed master-planned community at Pilot Hill Ranch
in California, and (iii) obtaining Community Plan designations for various ABHI
lands on Maui.  With regard to item (iii), ABHI continues to participate
actively in Maui County's decennial update of its Community Plans, a process
that began in 1992.  The Community Plans serve to guide planning development
activity over the next decade.  ABHI is seeking various urban designations for
its undeveloped lands within the following four Community Plans where most of
its Maui lands are located:  Pa'ia-Haiku Community Plan, Kihei-Makena Community
Plan, Wailuku-Kahului Community Plan, and Makawao-Pukalani-Kula ("Upcountry")
Community Plan.

                  In 1994, the Maui County Council adopted the Pa'ia-Haiku
Community Plan.  This Plan reflected the designation of approximately 190 acres
of ABHI lands for business and residential use, the conversion of approximately
80 acres of previously existing residential and business designations to
agricultural use, and the retention of approximately 45 acres of residential
and industrial designations.  Adoption of the remaining three Community Plans
by the Maui County Council is expected in 1996 and 1997.

            (3)   RESIDENTIAL PROJECTS
                  --------------------

                  ABHI is pursuing a number of residential projects in Hawaii
and on the U.S. Mainland, in particular:

                  (A)   KUKUI'ULA.  On Kauai, construction activity at the
                        ---------
1,000-acre Kukui'ula project continues to be suspended as a result of weak
economic conditions on Kauai.  The Kukui'ula project is envisioned to be the
first planned residential community on the island of Kauai.  It currently is
expected to include up to 3,000 dwelling units, as well as an 18-hole golf
course, a small boat marina, commercial areas, schools and parks.  Construction
of the wastewater treatment plant, mass grading and drainage, and certain road-
way improvements were completed in 1993.

                  In 1995, ABHI continued its efforts to obtain revised
entitlements to the Kukui'ula project, consistent with ABHI's revisions to the
project's master plan to address hurricane inundation risks and market
considerations.  In May 1995, the State Land Use Commission approved urban
classification for an additional 822 acres.  As a result, the entire 1,045-acre
project is now classified as urban.  The initial increment of 727 acres is
immediately available for development, while the remaining 318 acres is
conditionally designated urban, subject to a showing that substantial progress
has been made on providing infrastructure to the initial increment.  In
December 1995, the County of Kauai approved an ordinance rezoning the initial
increment of 727 acres to provide a mix of residential, commercial, golf
course, park and other uses, consistent with ABHI's plans to develop a planned
residential community.

                  The approvals described above complete ABHI's program to
obtain revised entitlements to the Kukui'ula project.  However, renewal of
construction activity awaits improvement of the current economic conditions,
especially housing demand, on Kauai.

                  (B)   ELEELE NANI II.  Also on Kauai, sales at ABHI's Eleele
                        --------------
Nani II development, consisting of 146 single-family lots on 27 acres, 
continued during 1995.  Sales of four lots closed in 1995, leaving only six
lots available for sale.

                  (C)   KU'AU BAYVIEW SUBDIVISION (FKA MAKANA SUBDIVISION).  In
                        --------------------------------------------------
1995, the construction plans for this 92-house-and-lot, single-family
subdivision in Pa'ia, Maui, were approved and sitework construction commenced.
The sitework and two model homes are expected to be completed in March 1996, 
and construction of the first for-sale homes is expected to be completed by 
mid-1996.  ABHI's original joint venture for the development of this project
was terminated in 1995, and the project is being developed solely by ABHI.

                  (D)   HAIKU MAUKA.  Also on Maui, Haiku Mauka, a 92-acre, 39-
                        -----------
lot agricultural lot residential subdivision, experienced 22 lot sales in 1995.
A total of 32 lots have been sold since marketing of this project began in
September 1994.

                  (E)   KAHULUI IKENA.  Kahului Ikena, a 102-unit, market-
                        -------------
priced condominium project in Kahului, Maui, was completed in June 1995.
Marketing of the units began in July 1995, and 24 units have been sold since 
then.

                  (F)   PILOT HILL RANCH.  On January 23, 1996, the El Dorado
                        ----------------
County Board of Supervisors adopted the new General Plan for El Dorado County,
near Sacramento, California.  The new General Plan incorporates ABHI's devel-
opment plan proposals for the Pilot Hill Ranch project.  Pilot Hill Ranch is
intended to be developed as a 1,800-acre planned residential community,
consisting of approximately 980 single- and multi-family homes, a golf course,
parks and 20 acres of commercial development.  In February 1996, a lawsuit was
filed to block implementation of the General Plan.  The impact of this lawsuit
is uncertain at this time.

            (4)   COMMERCIAL AND INDUSTRIAL PROPERTIES
                  ------------------------------------

                  An important source of property revenue is the lease rental
income A&B and its subsidiaries receive from various ground leases on
11,000 acres of land (including agricultural and pasture lands) and leases of
2,678,000 square feet of industrial and commercial building space.

                  (A)   HAWAII COMMERCIAL/INDUSTRIAL PROPERTIES
                        ---------------------------------------

                  In Hawaii, most of the income-producing commercial and indus-
trial properties owned by A&B and its subsidiaries are located in the central
Kahului area of Maui.  These properties consist primarily of two shopping
centers and two office buildings, as well as several separate commercial and
industrial properties, as follows:

 PROPERTY              LOCATION        TYPE              LEASED AREA
 --------              --------        ----              -----------

Maui Mall           Kahului, Maui   Retail shopping   190,800 sq. ft.
                                    center
Kahului Shopping    Kahului, Maui   Retail shopping   112,100 sq. ft.
Center                              center
Kahului Office      Kahului, Maui   Office             29,800 sq. ft.
Center
Wakea Business      Kahului, Maui   Warehouse/         61,500 sq. ft.
Center                              retail
Kahului Office      Kahului, Maui   Office             51,700 sq. ft.
Building
Apex Building       Kahului, Maui   Retail             28,000 sq. ft.

                  In addition to the above-described properties, a number of
other commercial and industrial projects are being developed on Maui and Kauai,
including:

                        (1)   TRIANGLE SQUARE.  Development continues at
                              ---------------
 Triangle Square, an 11-acre retail/commercial complex in Kahului, Maui.  In
January 1995, the Apex Building, containing 28,000 square feet, was completed
and is currently being tenanted by retail users.  Also, three lots have been
leased so far.  Additional ground leases and construction are planned for the
balance of Triangle Square, with marketing activity in progress in 1996.

                        (2)   MAUI BUSINESS PARK (FKA KAHULUI INDUSTRIAL PARK).
                              ------------------------------------------------
Sitework construction at the 42-acre first subphase of the Maui Business Park,
a light industrial commercial subdivision located near Maui's primary airport
and harbor, commenced in the second quarter of 1995.  By year-end, 75% of the
onsite construction work and 50% of the offsite work were completed, with final
completion scheduled for April and December 1996, respectively.  In 1995, five
and one-half acres were sold and 14-1/2 acres were leased to a Hawaii-based
developer who will be constructing a 275,000-square-foot value retail shopping
center on the 20 acres.  Some of the tenants that have signed leases for the
shopping center include Sports Authority, Border's Bookstore, Eagle Hardware
and Office Max.  Marketing of the 32 lots comprising the 22-acre balance of
Maui Business Park's first subphase commenced in the last quarter of 1995.
The sale of three lots closed in December 1995, and in January 1996 three lots
were leased to a self-storage warehouse developer.

                        (3)   PORT ALLEN INDUSTRIAL SUBDIVISION.  On Kauai,
                              ---------------------------------
sales of four industrial lots closed in 1995.  One lot remains available for
sale.

                  (B)   U.S. MAINLAND COMMERCIAL/INDUSTRIAL
                        -----------------------------------

                        PROPERTIES
                        ----------

                  On the U.S. Mainland, A&B and its subsidiaries own a port-
folio of commercial and industrial properties comprising a total of approxi-
mately 2.2 million square feet of leasable area, as follows:

                                                           LEASED AREA
     PROPERTY         LOCATION             TYPE            (SQUARE FT.)
     --------         --------             ----            ------------


 DEC Facility        Cupertino, CA      Research and         246,000
                                        development

 LinPac Building     City of            Manufacturing        126,000
                     Industry,
                     CA

 Moulton Plaza       Laguna Hills,      Retail               134,000
                     CA

 Spinnaker II        Fremont, CA        Research and          98,500
                                        development

 Great Southwest     Grand Prairie,     Warehouse/           901,400
 Industrial          TX                 Industrial

 4225 Roosevelt      Seattle, WA        Office/Medical       106,500

 Valley Freeway      Kent, WA           Warehouse/           229,100
 Corporate Park                         Industrial

 Island Village      Bainbridge         Retail                97,200
 Shopping Center     Island, WA

 Airport Square      Reno, NV           Retail               168,000

 Market Square       Greeley, CO        Retail                43,300

               The Great Southwest Industrial property in Dallas, Texas
benefited from a strong leasing market, achieving a 99% occupancy rate in 1995.
The resurgence of new construction in the area will increase the amount of com-
petitive space, but should have minimal impact on the property in 1996, due to
few lease expirations.

               Washington State's stable economy is expected to continue to
benefit A&B's three Seattle-area properties.  The 4225 Roosevelt Building and
Island Village Shopping Center (fka Winslow Village Shopping Center) are
operating at 100% occupancy.  Strong interest is present for space which will
become available in the Valley Freeway Corporate Park in 1996.

               In California, both the Cupertino and Fremont markets have
improved significantly. Digital Equipment Corporation ("DEC") has subleased the
146,000 square feet of available space in the DEC Facility to a major corporate
tenant through August 1997, which coincides with the end of DEC's lease term.
Negotiations currently are taking place with such tenant for a direct lease
that would expire in August 2000.  Advance lease negotiations have been
initiated for the Spinnaker II property, located in Fremont.  Moulton Plaza,
located in Laguna Hills, is being challenged by new retail developments in the
area. Reconfiguration and retenanting of this center are planned for 1996.

               In June 1995, A&B acquired the Airport Square and Market Square
shopping centers.  These acquisitions completed the tax-deferred exchange,
pursuant to Section 1031 of the Internal Revenue Code, that was initiated with
the sale of Arapahoe Marketplace in December 1994.

               Overall occupancy rates for the U.S. Mainland leased property
portfolio averaged 97% in 1995, the same level as in 1994.  Overall occupancy
rates for the Hawaii leased property portfolio averaged 90% in 1995, compared
with 92% in 1994.

      C.    FOOD PRODUCTS
            -------------

            (1)   PRODUCTION
                  ----------

                  A&B has been engaged in activities relating to the production
of cane sugar and molasses in Hawaii since 1870.  A&B's present food products
operations are conducted by ABHI.  ABHI operates two sugar plantations,
Hawaiian Commercial & Sugar Company ("HC&S") on the island of Maui and McBryde
Sugar Company, Limited ("McBryde") on the island of Kauai.  Island Coffee
Company, Inc. ("Island Coffee"), a wholly-owned subsidiary of McBryde, grows
coffee on the island of Kauai.

                  In June 1995, ABHI announced the restructuring of its
agricultural operations in Hawaii, involving the phase-out of sugar production
operations at McBryde and the directing of sugar-growing resources and efforts
to HC&S.  Sugar production at McBryde is expected to cease upon completion of
the 1996 harvest, which is anticipated to occur in September 1996.  Continuing
losses in McBryde's sugar operations necessitated this decision.

                  ABHI is Hawaii's largest producer of raw sugar.  In 1995,
ABHI produced 45% of the 492,346 tons of raw sugar produced in Hawaii.  The
Hawaii sugar production, in turn, amounted to approximately seven percent of
total United States sugar production.  ABHI's raw sugar production tonnage for
the years 1991 through 1995 is summarized in the following table:

                1995      1994      1993      1992      1991
                ----      ----      ----      ----      ----

HC&S          198,009   206,217   224,677   193,485   214,122
McBryde        23,952    17,273    14,493    22,941    38,455
              -------    ------   -------   -------   -------

  Total       221,961   223,490   239,170   216,426   252,577
              =======   =======   =======   =======   =======

                  HC&S harvested 17,661 acres of sugar cane in 1995, compared
with 16,457 acres in 1994 and 16,726 acres in 1993.  Yields averaged 11.2 tons
of sugar per acre in 1995, the lowest level in ten years, compared with 12.4 in
1994 and 13.4 in 1993.  The reduction in yield in 1995 was due to a number of
factors, most significantly the unusual lack of rainfall in 1995.  A number of
steps have been taken to deal with the situation, based upon the results of a
rigorous evaluation by HC&S and industry experts of HC&S's cultivation
practices and growing conditions.  These steps are expected to provide some
benefit to the 1996 harvest, but the full impact is not expected to occur until
the 1997 harvest, since sugar cane is grown on a two-year cycle.  As a by-
product of sugar production, HC&S also produced 63,339 tons of molasses in
1995, compared with 58,997 tons in 1994 and 61,954 tons in 1993.

                  An advanced ultrafiltration plant constructed by HC&S in 1994
should, when fully operational in 1996, increase sugar recovery at HC&S's
Puunene mill (the larger and more modern of HC&S's two mills) by 1.5%, thereby
increasing annual sugar production by more than 3,000 tons.

                  McBryde harvested 3,237 acres of sugar cane in 1995, compared
with 3,340 acres in 1994 and 2,893 acres in 1993.  In addition to raw sugar,
9,219 tons of molasses were produced in 1995, compared with 7,774 tons in 1994
and 5,861 tons in 1993.  The average yield in 1995 was 7.4 tons of sugar per
acre, up from 5.2 tons in 1994 and 5.0 tons in 1993.  The relatively low sugar
and molasses production and sugar yields in 1993 and 1994 were due to damage to
the sugar crop by Hurricane Iniki in September 1992.

                  The average cost per ton of sugar produced at the two plan-
tations, including the cost of power production, was $432.59 in 1995, compared
with $428.56 in 1994 and $390.37 in 1993.  The increases in cost per ton are
primarily the result of decreased yields per acre at HC&S, which more than
offset increased yields at McBryde, and modest increases in costs.  Continuing
cost reduction programs at both plantations have been successful in minimizing
cost increases.

                  Both HC&S and McBryde produce electricity for their own use
and for sale to electric utility companies by burning bagasse (sugarcane
fiber), by hydroelectric power generation and, when necessary, by burning
fossil fuels. The price for the power sold is equal to the utility companies'
"avoided cost" of not producing the electricity supplied by the plantations.
In addition, HC&S receives a capacity payment to provide certain power to the
local utility.  In 1995, HC&S sold 98,031 megawatt hours ("MWH") of electric
power, and McBryde sold 19,625 MWH.  Revenue from the sale of electricity
depends on the amount of power produced and sold as well as the average price
of fuel.  See "Energy" below.

                  During 1995, Island Coffee had approximately 4,000 acres of
coffee trees under cultivation.  The harvest of the 1995 coffee crop is
expected to yield nearly 1.8 million pounds of green coffee, compared with 1.4
million pounds in 1994.  Coffee production is expected to continue to increase
during the next few years.

                  Kahului Trucking & Storage, Inc., a subsidiary of ABHI,
provides sugar and molasses hauling and storage, petroleum hauling, mobile
equipment maintenance and repair services, and self-service storage facilities
on Maui.  Kauai Commercial Company, Incorporated, another subsidiary of ABHI,
provides similar services on Kauai, as well as general trucking services.

          (2)  SUGAR REFINING; MARKETING OF SUGAR AND COFFEE
               ---------------------------------------------

               Virtually all of the raw sugar produced in Hawaii is purchased
and refined by, and marketed through, C&H.  C&H processes the raw cane sugar
into a full line of refined sugar products for the grocery market, and a full
range of industrial refined sugar products for industrial bakers, confectioners
and food processors.  C&H is the leading sugar brand in the western United
States.  Marketing of C&H's refined products is conducted by C&H's sales staff
and a network of brokers under exclusive representation agreements.  The 
refined products are marketed primarily in the western and central United 
States.

               C&H's profit margins continued to be hurt in 1995 by a
combination of high raw cane sugar prices and depressed prices for refined
sugar products, arising from the continuing ineffective governmental adminis-
tration of the domestic sugar support program and an excess supply of beet
sugar.  In addition, C&H's performance was adversely impacted by a six-week
strike by workers at the Crockett refinery during September and October of
1995.

               In response to the continuing financial hardship created by the
problems with the administration of the U.S. sugar program, and to the
uncertainty over the current review of the program by the U.S. Congress, in
December 1995 C&H announced a major restructuring involving the lay-off of
nearly one quarter of the work force.  This restructuring is expected to yield
cost reductions of $8 million annually.

               Consumer sugar sales are seasonal in nature and, as a result,
C&H's financial results are expected to be better in the third and fourth
quarters of each fiscal year, compared with the first two quarters.

               C&H has a ten-year supply contract, ending in 2003, with 
Hawaiian Sugar & Transportation Cooperative ("HS&TC"), a cooperative consisting
of the major sugarcane growers in Hawaii (including HC&S and McBryde), for C&H
to acquire substantially all raw sugar produced in Hawaii at a discount to the
New York Contract #14 price for domestic raw sugar.  There are no minimum
supply guarantees on the part of HS&TC.  During 1995, the supply contract with
HS&TC provided 72% of the raw sugar used by C&H.  In recent years, a number of
Hawaii sugarcane growers have exited the business, have announced they will be
exiting the business or are considering such action.  There is no certainty
that the companies now producing sugar cane in Hawaii will be doing so in the
future.  In 1996, C&H will continue to purchase raw sugar from other than
Hawaiian sources to supplement its purchases under the supply contract with
HS&TC.  The discontinuation of sugar growing operations at McBryde, anticipated
to occur in September 1996, is not expected to have any material impact on C&H.

               At Island Coffee, coffee marketing efforts currently are being
directed toward developing a market for premium-priced, Kauai-grown green
coffee.  Most of the 1995 coffee crop is being marketed on the U.S. Mainland in
green-bean (unroasted) form.  Island Coffee has a supply agreement with Nestle
Beverage Company, ending in 1998, pursuant to which Nestle Beverage Company
will purchase 25% of Island Coffee's mid-grade coffee beans.  In addition to
the sale of green coffee, in 1994 McBryde launched a roasted, packaged coffee
product in Hawaii under the "Kauai Coffee" trade name.

          (3)  COMPETITION AND SUGAR LEGISLATION
               ---------------------------------

               Hawaiian sugar growers produce more sugar per acre than other
major producing areas of the world, but that advantage is partially offset by
Hawaii's high labor costs and the distance to the U.S. Mainland market.
Hawaiian refined sugar is marketed primarily west of Chicago.  This is also the
largest beet sugar growing and processing area and, as a result, the only
market area in the United States which produces more sugar than it consumes.
Sugar from sugar beets is the greatest source of competition for the Hawaiian
cane sugar industry.  In addition, competition from high fructose corn syrup
("HFCS") has increased substantially since 1974, but now has stabilized, as
sweetener markets in which the use of HFCS is economical have become saturated.
The use of non-caloric (artificial) sweeteners accounts for a small percentage
of the domestic sweetener market.  Although the use of artificial sweeteners is
expected to grow, such increased use is not expected to affect sugar markets
significantly in the near future.

               Worldwide, most sugar is consumed in the country of origin.
Only about a quarter of world sugar is involved in international trade.  A much
smaller amount is traded at the world sugar market price (the other sugar
involved in international trade is traded at negotiated prices under bilateral
trade agreements).  Due to protective legislation, raw cane sugar prices in the
U.S. generally are higher than the world price, and only limited amounts of
foreign sugar are allowed into the U.S. under import quotas.  Such foreign
sugar sells at U.S. domestic prices.  As a result, the world sugar price does
not have material relevance to U.S. sugar producers and refiners.

               The U.S. Congress long has sought, through legislation, to
assure a reliable domestic supply of sugar at stable and reasonable prices.
Congress's most recent renewal of protective legislation for domestic sugar
is provided by the Food, Agriculture, Conservation and Trade Act of 1990, known
as the 1990 Farm Bill.  The 1990 Farm Bill provides a sugar loan program for
the 1991 through 1995 crops, with a loan rate (support price) of 18 cents per
pound for raw sugar, the same as that provided by the 1985 Farm Act.  The 1990
Farm Bill also provides minimum import quotas and a means of limiting domestic
production. In February 1996, the U.S. Senate and U.S. House of Representatives
separately passed versions of a farm bill which would extend the U.S. sugar
program for another seven years, through the 2002 crop, but which would, among
other things, eliminate non-recourse loans under certain restrictive circum-
stances, eliminate beet marketing allotments, and effectively reduce the loan
rate to sugar growers to 17 cents per pound.  A final version of the farm bill
is pending.

               The loan rate represents the value of sugar given as collateral
for government price-support loans.  The government is required to administer
the sugar program at no net cost, and this is accomplished by adjusting fees
and quotas for imported sugar to maintain the domestic price at a level that
prevents producers from defaulting on loans.  The target price established by
the government is known as the market stabilization price and is based on the
loan rate plus transportation costs, interest and an incentive factor.  The
market stabilization price was 21.8 cents per pound in 1988-89 and 21.9 cents
per pound in 1990-91.  No market stabilization price has been announced since
1990-91.  The actual U.S. domestic sugar price averaged 21.31 cents per pound
in 1992, 21.62 cents per pound in 1993, 22.03 cents per pound in 1994, and
23.03 cents per pound in 1995 (reaching a high of 25.00 cents per pound in June
and July).  The abnormally high average raw sugar price in 1995 was due to
flaws in the existing federal sugar legislation and in the administration of
the U.S. sugar program.  The foregoing average prices are based on the average
daily New York Contract #14 price for raw sugar.  A chronological chart of
these prices is shown below.

                          U.S. Raw Sugar Prices
                         (New York Contract #14)
                        (Average Cents per pound)
                        
                        
                                1993     1994     1995
                                ----     ----     ----
                                

           January              20.76    22.00    22.66      
           
           February             21.07    21.94    22.67
           
           March                21.57    21.95    22.46
           
           April                21.70    22.04    22.78
           
           May                  21.36    22.18    23.10
           
           June                 21.39    22.45    23.50
           
           July                 21.89    22.72    24.47
           
           August               21.94    21.90    23.37
           
           September            21.97    21.78    23.21
           
           October              21.88    21.52    22.92
           
           November             21.87    21.57    22.60
           
           December             22.00    22.31    22.70
          

               The long-term raw sugar supply agreement between C&H and HS&TC
provides that the participating growers will sell all their raw sugar to C&H at
a price equal to the No. 14 Contract settlement price, less a discount and less
costs of sugar vessel discharge and stevedoring.  This price becomes a cost to
C&H and, after deducting the marketing, operating, distribution, transportation
and interest costs of HS&TC, reflects the gross revenue to the Hawaii sugar
growers, including HC&S and McBryde.  The No. 14 price is established by, among
other things, the supply of and demand for all forms of domestically-produced
sweeteners, government policies regarding the U.S. sugar import quota and, on
occasion, domestic market allocations, as well as by potential changes in
international trade programs which might affect the U.S. sugar program.

               Liberalized international trade agreements, such as the General
Agreement on Tariff and Trade, include provisions relating to agriculture, but
these agreements will not affect the U.S. sugar or sweetener industries
materially.  The "side" agreements that modified the North American Free Trade
Agreement ("NAFTA") alleviated sugar producers' concerns over NAFTA provisions
which could have allowed Mexico to export large quantities of sugar to the U.S.
starting in six years.

          (4)  PROPERTIES AND WATER
               --------------------

               C&H's main refining operations are located at Crockett,
California.  The Crockett refinery is one of the largest in the world, and is
the only cane sugar refinery on the United States West Coast.  It is ideally
located next to a deep-water port, a major rail line and an interstate highway.
The refinery and administrative offices occupy a complex of buildings that
contains approximately 1,310,000 square feet and is located on approximately
55 acres.  C&H leases approximately 42 acres from the California State Lands
Commission under long-term ground leases, and owns the remaining area.  The
Lease Agreement with the State of California covering the main refinery and
wharf facilities expires in 2022, and the Lease Agreement covering the area
where the secondary water treatment facility is located expires in 2024.

               C&H also operates a smaller sugar refining and distribution
facility in Aiea, Hawaii that primarily produces liquid sugar for the local
beverage industry.  This facility was completed in 1994 and replaced an older
refinery.  C&H leases the refining equipment pursuant to leases that expire in
December 1996 and March 1997, with options to renew for up to an additional six
years.  C&H also leases the facilities and the site pursuant to a lease that
expires in 2004.  In late 1995, a major bottling plant switched from using
C&H's liquid sugar to using corn syrup in its soft drinks.  The switch resulted
in the loss of 30% of the Aiea refinery's sales.  Because of the relatively low
price of corn syrup, other bottling plants may switch from using C&H's liquid
sugar. In the City of Commerce, California, C&H owns and operates a bulk sugar
receiving and distribution facility.  The facility is located on a four-acre
parcel owned by C&H.

               The HC&S sugar plantation, the largest in Hawaii, consists of
approximately 42,000 acres of land, including 2,000 acres leased from the State
of Hawaii and 1,300 acres under lease from private parties.  Approximately
36,200 acres are under cultivation and completely irrigated, and the balance
either is used for contributory purposes, such as roads and plant sites, or is
not suitable for cultivation.

               The McBryde/Island Coffee plantation consists of approximately
15,000 acres of land.  Approximately 7,500 acres currently are under
cultivation, 4,000 in coffee and 3,500 in sugar cane.  About 7,000 acres are
held under leases. In furtherance to the cessation of McBryde's sugar opera-
tions expected in September 1996, these leased lands will be returned to their
owners. Substantially all of the fee-simple lands are irrigated.  A comprehen-
sive land management plan is being implemented for the approximately 1,200
acres of land owned in fee that presently is cultivated in sugar.

               Large quantities of water are necessary to grow sugar cane.
Because of the importance of water, both access to water and efficient
irrigation systems are crucial for the successful growing of sugar cane.  A&B's
plantations use a "drip" irrigation system that distributes water to the cane
roots through small holes in plastic tubes.  A total of 34,326 acres, 96% of
HC&S's cane lands, currently are drip irrigated.  The drip method has improved
yields in the fields, has allowed increased mechanization of field operations,
has resulted in added acres under cultivation and helps mitigate the effects of
drought.

               ABHI also owns 19,000 acres of watershed lands on Maui which
supply part of the irrigation water used by HC&S.  ABHI also has held water
licenses to 38,000 acres owned by the State of Hawaii, which over the years 
have supplied approximately one-third of the irrigation water used by HC&S. 
The last of these four water license agreements expired in 1986, and all four
agreements have been extended as revocable permits.  The State Board of Land
and Natural Resources has indicated its intention to replace these four
permits with long-term licenses.  The issuance of such licenses currently is
pending a hearing before the State Board of Land and Natural Resources.

     D.   EMPLOYEES AND LABOR RELATIONS
          -----------------------------

          As of December 31, 1995, A&B and its subsidiaries had approximately
3,076 regular full-time employees, 14% fewer than at the start of 1995.  About
1,236 regular full-time employees were engaged in the growing of sugar cane and
coffee and the production of raw sugar and green coffee, 592 were engaged in
the refining and marketing of sugar, 1,027 were engaged in ocean transporta-
tion, 40 were engaged in property development and management, and the balance
was in administration and miscellaneous operations.  Approximately 61.6% were
covered by collective bargaining agreements with unions.

          The reduction in A&B's work force in 1995 was one component of
Company-wide initiatives implemented to reduce general and administrative
expenses by $10 million per year.  The work force reduction included the lay-
off at C&H, announced in late 1995, of approximately 201 regular full-time
employees, comprising 25% of the C&H work force.  In addition, as a result of
the planned September 1996 shutdown of sugar operations at McBryde,
approximately 115 McBryde employees are anticipated to be laid off in 1996.
The remaining employees, approximately 65 in number, will be employed by Island
Coffee.

          As of December 31, 1995, Matson and its subsidiaries had approxi-
mately 1,027 regular full-time employees, 266 seagoing employees and 302 casual
employees.  Approximately 38% of the regular full-time employees, all of the
seagoing employees and all of the casual employees were covered by collective
bargaining agreements.  The casual employees are United States Pacific Coast
longshoremen who are employed through hiring halls and are not full-time
employees of either Matson or Matson Terminals.

          In connection with the inauguration of the new Guam-Micronesia 
Service and the purchase of six additional vessels (see the discussion of
"Freight Services" above), Matson has added 34 employees in Guam and 142
seagoing employees.

          Employees of Matson and Matson Terminals are represented by 10
different unions, and Matson and Matson Terminals are parties to 94 separate
collective bargaining agreements.  Matson's seagoing employees are represented
by six unions.  Matson and Matson Terminals are members of the Pacific Maritime
Association ("PMA"), and Matson Terminals is a member of the Hawaii Stevedoring
Industry Committee and the Hawaii Employers Council, through which various
collective bargaining agreements are negotiated.  Matson is a member of the
Maritime Service Committee ("MSC") for collective bargaining with three unions
representing licensed deck, engineer and radio officers for Matson vessels.

          Historically, collective bargaining with the longshore and seagoing
unions has been complex and difficult.  However, Matson and Matson Terminals
consider their respective relations with the International Longshoremen's and
Warehousemen's Union ("ILWU"), other unions and their non-union employees to be
satisfactory.  During 1995, collective bargaining agreements with the United
Brotherhood of Carpenters and Joiners of America in Oakland and the Interna-
tional Association of Machinists in Los Angeles and Oakland were renewed for
three-year, four-year, and 49-month terms, respectively.  Additionally, Matson
renewed two three-year labor agreements covering deck and engine officers who
crew an integrated tug/barge managed by Matson on behalf of its owner, HS&TC.
Collective bargaining agreements with the ILWU in Hawaii and on the U.S. 
Pacific Coast, clerical bargaining units in Oakland and Honolulu, and Teamsters
in Oakland are expected to be renewed in mid-1996 without service interruption.

          Matson contributed during 1995 to multi-employer pension plans for
vessel crews.  If Matson were to withdraw from or significantly reduce its
obligation to contribute to one of the plans, Matson would review and evaluate
data, actuarial assumptions, calculations and other factors used in determining
its withdrawal liability, if any, and, in the event of material disagreement
with such determination, would pursue the various means available to it under
federal law for the adjustment or removal of its withdrawal liability.  Matson
Terminals participates in a multi-employer pension plan for its Hawaii 
longshore employees.  For a discussion of withdrawal liabilities under the
Hawaii longshore and seagoing plans, see Note 2 to A&B's financial statements
on pages 34 and 35 of the 1995 Annual Report, which is incorporated herein by
reference.

          Matson pays, through Matson Terminals on the basis of cargo tons
carried, and Matson Terminals contributes as a direct employer, to a
multi-employer pension plan for Pacific Coast longshoremen.  Under special
withdrawal liability rules in the plan, Matson Terminals could cease United
States Pacific Coast cargo handling operations permanently and stop making
contributions to the plan without any withdrawal liability.

          As of December 31, 1995, HC&S and McBryde had approximately 873
employees and 152 employees, respectively, covered by collective bargaining
agreements with the ILWU.  Production units of HC&S and McBryde, as well as an
HC&S clerks and technical employees unit, are represented by Local 142 of the
ILWU.  Agreements with the ILWU for the HC&S and McBryde production units and
for the HC&S clerks and technical employees unit expired on January 31, 1996.
The agreements for the HC&S production unit and clerks and technical employees
unit were extended to March 31, 1996.  The agreement for the McBryde production
unit was extended to September 30, 1996, to coincide with the anticipated
closure of sugar operations.  Negotiations with the ILWU on a collective
bargaining agreement for production unit employees of Island Coffee are 
expected to commence soon.

          Kahului Trucking & Storage, Inc. had three Local 142 bargaining units
covering 40 employees.  Six employees were covered by the Bulk Sugar Agreement,
and two were covered by the Tugboat Agreement.  These agreements were renewed
for three-year periods expiring June 30, 1996.  The other 32 employees are in
the production unit, and are covered by an agreement that will expire on
March 31, 1996.  This latter agreement is in the process of being renegotiated.

          Kauai Commercial Company, Incorporated had 43 employees represented 
by Local 142.  Of these, 39 employees were in the production unit, and four
were in the clerical unit.  Both contracts were extended to April 30, 1996 and
are in the process of being renegotiated.

          Of the 423 bargaining unit employees of C&H at Crockett, California 
at year-end 1995 (reflecting the C&H lay-off announced in late 1995), 338 were
members of Sugar Workers Union No. 1, AFL-CIO Seafarers International Union of
North America and 77 employees were members of ILWU Local 6.  Eight employees
of C&H at the Aiea, Hawaii refinery were members of ILWU Local 142.  Contracts
covering these employees extend through May 31, 1998.

     E.   ENERGY
          ------

          Matson and Matson Terminals purchase bunker fuel oil, lubricants,
gasoline and diesel fuel for their operations.  Bunker fuel oil and diesel fuel
are the largest items of energy-related expense.

          Bunker fuel prices started 1995 at $97.50 per metric ton and ended 
the year at $116.00 per metric ton.  A low of $70.00 per metric ton occurred in
October, and a high of $117.50 per metric ton occurred in August.  Sufficient
fuel for Matson's requirements is expected to be available in 1996.

          As is the practice throughout Hawaii, ABHI's sugar plantations use
bagasse, the residual fiber of the sugarcane plant, as a fuel to generate steam
for the production of most of the electrical power for sugar mill and irriga-
tion pumping operations.  However, supplemental fuel is required to produce 
power, principally for pumping irrigation water during the factory shutdown
period when bagasse is not being produced.  No. 6 (heavy) oil and coal have
been the supplemental fuels most commonly used by the sugar factories. 
However, in 1992, the suppliers of oil to the ABHI sugar plantations announced
they would discontinue regular heavy oil shipments as a result of unlimited
liability concerns arising from federal and state environmental laws.
Currently, heavy oil is being transported to HC&S on a space-available basis.
As a result of the oil-availability problem, HC&S began converting its fac-
tories to use diesel fuel and increased its use of coal.  In 1995, HC&S
produced 253,985 MWH of electric power and sold 98,031 MWH, compared with
1994's power production of 224,883 MWH and sales of 101,994 MWH.  HC&S's oil
use increased to 143,090 barrels in 1995 from the 126,568 barrels used in
1994.  In November 1993, HC&S obtained a state permit that more than doubled
its capability for burning coal.  Coal use for power generation increased
substantially, from 34,490 short tons in 1994 to 67,208 short tons in 1995.

          McBryde uses very little oil and no coal because it normally produces
a large amount of hydroelectric power from two plants that supplement power
produced from bagasse.  To deal with the discontinuance of heavy oil shipments
to Kauai, McBryde converted its factories to use diesel fuel in 1992.  In 1995,
power production was 46,532 MWH, up from 43,494 MWH in 1994.  Power sales in
1995 of 19,625 MWH were down slightly from 20,381 MWH in 1994.  Following
cessation of McBryde's sugar operations, Island Coffee will continue to 
generate and sell hydroelectric power which is excess to its internal needs.
Steam-generated power will no longer be produced by McBryde on Kauai.

               Construction by a third party began in early 1994 on a 240 MW
cogeneration plant adjacent to C&H's Crockett refinery.  Pursuant to an
agreement between C&H and the third party that expires in 2026, the steam
produced by the cogeneration plant will be used to power the C&H refinery,
thereby reducing C&H's energy costs.  The cogeneration plant also will allow 
C&H to shut down its own, less-efficient steam generating plant, and thereby
avoid required capital improvements to the existing plant.  The cogeneration
plant is expected to be operational in May 1996.



ITEM 3.  LEGAL PROCEEDINGS
- --------------------------

      See "Business and Properties - Ocean Transportation - Rate Regulation"
above for a discussion of rate and other regulatory matters in which Matson is
routinely involved.

     In June 1990, Matson Terminals filed a complaint in the Superior Court of
California against Home Insurance Company, Hobbs Group, Inc. and Arkwright-
Boston Insurance Company for breach of contract and negligence.  The complaint
sought recovery of damages sustained at Matson Terminals' Oakland terminal as a
result of the October 1989 Loma Prieta earthquake.  The court awarded Matson
Terminals $23,516,000, which included $11,250,000 in punitive damages.
Defendant Home Insurance Company has filed an appeal of the court's award.

     In February 1992, Pan Ocean Shipping Co., Ltd. ("Pan Ocean") served on
Matson an amended complaint alleging that a Matson vessel negligently dis-
charged contaminated ballast water into Los Angeles harbor on January 9, 1991.
Pan Ocean admits that a vessel owned and operated by Pan Ocean discharged fuel
oil into Los Angeles harbor on January 8, 1991.  Pan Ocean is seeking contri-
bution and indemnification for the in-harbor clean-up charges which it alleged
to be between $16,000,000 and $19,000,000.  On April 12, 1993, Pan Ocean
amended its complaint to allege fraud and seek unspecified punitive damages.
The parties have stipulated to binding arbitration before a Special Master
appointed by the United States District Court for the Central District of
California.  The Special Master's findings will be incorporated into a judgment
by the United States District Court, which judgment may be appealed to the
Ninth Circuit Court of Appeals only on the issues of punitive damages and mis-
conduct of the Special Master.  Arbitration hearings, which commenced January
13, 1994, are ongoing. Management believes, after consultation with legal
counsel and given the Protection and Indemnity coverage under Matson's
insurance policy in effect at the time of the alleged conduct, that any
ultimate liability in connection with this action will not have a material
adverse effect on Matson's financial condition.

      On November 1, 1994, the Division of Water Quality, Department of
Wastewater Management, City and County of Honolulu ("City and County") issued a
Cease and Desist Order to C&H, alleging violations of a City and County
ordinance arising out of C&H's discharge of industrial wastewater from its
liquid sugar refinery into the City and County's sewer system.  Among other
things, the Cease and Desist Order ordered C&H to stop discharging wastewater
into the sewer system, ordered C&H to provide a corrective action plan, and
warned that the violation might carry civil and/or criminal penalties.
Subsequently, the City and County issued Amended Order No. 1 on November 9,
1994, and Amended Order No. 2 on December 2, 1994.  All orders were con-
solidated under Docket No. 94-021 ("Amended Orders").  Amended Order No. 2,
among other things, permitted C&H to discharge wastewater into the sewer
system, provided C&H did not violate its permit, and imposed a fine on C&H in
the amount of $1,650,000, which was suspended, provided C&H comply with the
Amended Orders. C&H appealed the Amended Orders.

      In May 1995, C&H presented a settlement proposal to the City and County
which provided, among other things, that both C&H and the City and County 
agreed that certain modifications completed at the refinery have alleviated the
unanticipated operational difficulties that led to the issuance of the Amended
Orders.  On March 4, 1996, the City and County accepted the terms and condi-
tions of C&H's proposal, which are contained in a Consent Agreement pursuant
to which the fine was rescinded.  The Consent Agreement resolves all issues
raised in the Amended Orders and Docket No. 94-021, including the Petitions to
Appeal filed by C&H.

      A&B and its subsidiaries are parties to, or may be contingently liable in
connection with, other legal actions arising in the normal conduct of their
businesses, the outcomes of which, in the opinion of management after consulta-
tion with counsel, would not have a material adverse effect on A&B's financial
position.



ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------------------------------------------------------------

      Not applicable.


EXECUTIVE OFFICERS OF THE REGISTRANT
- ------------------------------------

      For the information about executive officers of A&B required to be
included in this Part I, see paragraph B of "Directors and Executive Officers 
of the Registrant" in Part III below, which is incorporated into Part I by 
reference.




                                    PART II
                                    -------


ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
- ----------------------------------------------------------

         STOCKHOLDER MATTERS
         -------------------

     This information is contained in the sections captioned "Common Stock" and
"Dividends" on pages 19 and 20 of the 1995 Annual Report, which sections are
incorporated herein by reference.

     At February 16, 1996, there were 6,270 record holders of A&B common stock.



ITEM 6.  SELECTED FINANCIAL DATA
- --------------------------------

     Information for the years 1985 through 1995 is contained in the compara-
tive table captioned "Eleven-Year Summary of Selected Financial Data" on pages
22 and 23 of the 1995 Annual Report, which information is incorporated herein
by reference.



ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- ----------------------------------------------------------
         CONDITION AND RESULTS OF OPERATIONS
         -----------------------------------

     A&B's financial statements, including the results of operations discussed
herein, are based on the historical-cost method of accounting, in accordance
with generally accepted accounting principles.  If estimated current costs of
property and inventory were applied to reflect the effects of inflation on
A&B's businesses, total assets would be higher and net income lower than shown
by the historical-cost financial statements.  However, the carrying values of
current assets (other than inventories, real estate held for sale, deferred
income taxes and prepaid and other assets) and of debt instruments are reason-
able estimates of their fair values.  Investments in marketable securities are
stated in the financial statements at market values in accordance with State-
ment of Financial Accounting Standards No. 115.  Certain investments held in
the Capital Construction Fund at amortized cost exceeded their fair values at
December 31, 1995 and 1994.  This matter is described more fully in Note 11 on
page 39 of the 1995 Annual Report, which Note is incorporated herein by
reference.

     Additional information applicable to this Item 7 is contained in the
section captioned "Management's Discussion and Analysis" on pages 25 through 27
of the 1995 Annual Report, which section is incorporated herein by reference.



I
TEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
- ----------------------------------------------------

     This information is contained in the financial statements and accompanying
notes on pages 28 through 39 of the 1995 Annual Report, the Independent
Auditors' Report on page 21 of the 1995 Annual Report, and the Industry Segment
Information for the years ended December 31, 1995, 1994 and 1993 appearing on
page 24 of the 1995 Annual Report and incorporated into the financial state-
ments by Note 13 thereto, all of which are incorporated herein by reference.



ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
- ---------------------------------------------------------

         ACCOUNTING AND FINANCIAL DISCLOSURE
         -----------------------------------

     Not applicable.



                                    PART III
                                    --------


ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
- ------------------------------------------------------------

     A.   DIRECTORS
          ---------

          For information about the directors of A&B, see the section captioned
"Election of Directors" on pages 2 and 3 of A&B's proxy statement dated March
4, 1996 ("A&B's 1996 Proxy Statement"), which section is incorporated herein by
reference.

     B.   EXECUTIVE OFFICERS OF THE REGISTRANT
          ------------------------------------

          The name of each executive officer of A&B (in alphabetical order),
age (in parentheses) as of March 31, 1996, and present and prior positions with
A&B and business experience for the past five years are given below.

          Generally, the term of office of executive officers is at the 
pleasure of the Board of Directors.  With regard to compliance with Section
16(a) of the Securities Exchange Act of 1934, A&B believes that during fiscal
1995 its directors and executive officers filed on a timely basis all reports
required to be filed under Section 16(a), except that Mr. Robert G. Reed III,
a director, was required to file a Form 4 on or before November 10, 1995 with
respect to a transfer of 1,000 shares, but such transfer was reported on a
Form 5 filed on February 12, 1996.  For a discussion of severance agreements
between A&B and certain of A&B's executive officers, see the subsection cap-
tioned "Severance Agreements" on page 13 of A&B's 1996 Proxy Statement, which
subsection is incorporated herein by reference.


Meredith J. Ching (39)
- ----------------------

     Vice President (Government & Community Relations) of A&B, 10/92-present;
Vice President of ABHI (Government & Community Relations), 10/92-present; Vice
President of ABHI (Natural Resources Development & Government Affairs), 4/89-
9/92; first joined A&B or a subsidiary in 1982.

John C. Couch (56)
- ------------------

     Chairman of the Board of A&B, 4/95-present; President of A&B,
4/91-present; Chief Executive Officer of A&B, 4/92-present; Chief Operating
Officer of A&B, 4/91-4/92; Chairman of the Board of ABHI, 4/95-present; Chief
Executive Officer of ABHI, 4/89-present; President of ABHI, 4/89-4/95;
Chairman of the Board of Matson, 4/95-present; Vice Chairman of the Board of
Matson, 4/92-3/95; Chairman of the Board of C&H, 7/90-present; Director of A&B,
10/85-present; Director of Matson, 4/91-present; Director of ABHI,
4/89-present; prior to 4/89, held various executive positions with A&B, Matson
and Matson's subsidiaries; first joined A&B or a subsidiary in 1976.

W. Allen Doane (48)
- -------------------

     President of ABHI, 4/95-present; Chief Operating Officer of ABHI, 4/91-
present; Executive Vice President of ABHI, 4/91-4/95; first joined A&B or a
subsidiary in 1991.

Raymond J. Donohue (59)
- -----------------------

     Senior Vice President of Matson, 4/86-present; Chief Financial Officer of
Matson, 2/81-present; first joined Matson in 1980.

G. Stephen Holaday (51)
- -----------------------

     Senior Vice President of ABHI, 4/89-present; Vice President and Controller
of A&B, 4/93-1/96; Vice President, Chief Financial Officer and Treasurer of 
A&B, 4/89-4/93; Chief Financial Officer and Treasurer of ABHI, 4/89-1/96; first
joined A&B or a subsidiary in 1983.

John B. Kelley (50)
- -------------------

     Vice President (Investor Relations) of A&B, 1/95-present; Vice President
(Corporate Planning & Development, Investor Relations) of A&B, 10/92-12/94;
Vice President (Community & Investor Relations) of A&B, 2/91-10/92; Vice Presi-
dent (Corporate & Investor Relations) of A&B, 8/88-1/91; Vice President of 
ABHI, 8/89-present; first joined A&B or a subsidiary in 1979.

Miles B. King (48)
- ------------------

     Vice President and Chief Administrative Officer of A&B, 4/93-present;
Senior Vice President (Industrial Relations) of ABHI, 4/93-present; Senior Vice
President (Human Resources) of Matson, 10/92-present; Executive Vice President
of The Hay Group, 1988-1992.

David G. Koncelik (54)
- ----------------------

     Senior Vice President of ABHI, 1/94-present; President and Chief Executive
Officer of C&H, 1/94-present; Executive Vice President and Chief Operating
Officer of C&H, 1/91-12/93; Chief Financial Officer of C&H, 12/88-12/93; Senior
Vice President of C&H, 12/88-12/90.

Michael J. Marks (57)
- ---------------------

     Vice President, General Counsel and Secretary of A&B, 4/89-present; Senior
Vice President and General Counsel of ABHI, 4/89-present; first joined A&B or a
subsidiary in 1975.

C. Bradley Mulholland (54)
- --------------------------

     President of Matson, 5/90-present; Chief Executive Officer of Matson, 
4/92-present; Chief Operating Officer of Matson, 7/89-4/92; Executive Vice 
President of Matson, 9/87-5/90; Director of A&B, 4/91-present; Director of
Matson, 7/89-present; Director of ABHI, 4/91-present; first joined Matson in
1965.

Glenn R. Rogers (52)
- --------------------

     Vice President, Chief Financial Officer and Treasurer of A&B, 4/93-
present; Senior Vice President, Chief Financial Officer and Treasurer of ABHI,
1/96-present; Senior Vice President, Marketing of Matson, 1/89-4/93; first
joined A&B or a subsidiary in 1975.

Robert K. Sasaki (55)
- ---------------------

     Vice President of A&B, 7/90-present; Senior Vice President (Properties) of
ABHI, 4/89-present; first joined A&B or a subsidiary in 1965.

Thomas A. Wellman (37)
- ----------------------

     Controller of A&B, 1/96-present; Assistant Controller of A&B, 4/93-1/96;
Vice President of ABHI, 1/96-present; Controller of ABHI, 11/91-present; Area
Controller (Hawaii), Matson, 9/90-10/91; Internal Auditor, A&B, 7/89-8/90; 
first joined A&B or a subsidiary in 1989.



ITEM 11.  EXECUTIVE COMPENSATION
- --------------------------------

     See the section captioned "Executive Compensation" on pages 8 through 13
of A&B's 1996 Proxy Statement, which section is incorporated herein by 
reference.



ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
- ---------------------------------------------------------
          AND MANAGEMENT
          --------------

      See the section titled "Security Ownership of Certain Shareholders" and
the subsection titled "Security Ownership of Directors and Executive Officers"
on page 5 and on pages 6 and 7, respectively, of A&B's 1996 Proxy Statement,
which section and subsection are incorporated herein by reference.



ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
- --------------------------------------------------------

      See the subsection titled "Certain Relationships and Transactions" on
page 7 of A&B's 1996 Proxy Statement, the section titled "Compensation 
Committee Interlocks and Insider Participation" on page 16 of A&B's 1996 Proxy
Statement, and the last paragraph of the subsection titled "Compensation of
Directors" on page 4 of A&B's 1996 Proxy Statement, which are incorporated
herein by reference.



                                    PART IV
                                    -------



ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND
- ------------------------------------------------------
          REPORTS ON FORM 8-K
          -------------------

      A.    FINANCIAL STATEMENTS
            --------------------


            Financial Statements of Alexander & Baldwin, Inc. and Subsidiaries
and Independent Auditors' Report (in-corporated by reference to the pages of 
the 1995 Annual Report shown in parentheses below):

            Balance Sheets, December 31, 1995 and 1994
              (pages 30 and 31).
            Statements of Income for the years ended
              December 31, 1995, 1994 and 1993 (page 28).
            Statements of Shareholders' Equity for the
              years ended December 31, 1995, 1994 and
              1993 (page 32).
            Statements of Cash Flows for the years ended
              December 31, 1995, 1994 and 1993 (page 29).
            Notes to Financial Statements (pages 33 through

              39 and page 24 to the extent incorporated by
              Note 13).
            Independent Auditors' Report (page 21).

      B.    FINANCIAL STATEMENT SCHEDULES
            -----------------------------

            Financial Schedules of Alexander & Baldwin, Inc. and Subsidiaries 
as required by Rule 5-04 of Regulation S-X (filed herewith):

            I - Condensed Financial Information of
                Registrant - Balance Sheets, December 31,
                1995 and 1994; Statements of Income and
                Cash Flows for the years ended December 31,
                1995, 1994 and 1993; Notes to Condensed
                Financial Statements.

NOTE:  All other schedules are omitted because of the absence of the condi-
tions under which they are required or because the information called for is
included in the financial statements or notes thereto.

      C.    EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-K
            -----------------------------------------------

            Exhibits not filed herewith are incorporated by reference to the
exhibit number and previous filing shown in parentheses.  All previous exhibits
were filed with the Securities and Exchange Commission in Washington, D.C.
Exhibits filed pursuant to the Securities Exchange Act of 1934 were filed under
file number 0-565.  Shareholders may obtain copies of exhibits for a copying
and handling charge of $0.15 a page by writing to Michael J. Marks, Vice
President, General Counsel and Secretary, Alexander & Baldwin, Inc., P. O.
Box 3440, Honolulu, Hawaii 96801.

3.    Articles of incorporation and bylaws.

     3.a.      Restated Articles of Association of A&B, as restated effective
     May 5, 1986, together with Amendments dated April 28, 1988 and April 26,
     1990 (Exhibits 3.a.(iii) and (iv) to A&B's Form 10-Q for the quarter ended
     March 31, 1990).

     3.b.      Bylaws of A&B as amended effective October 24, 1991
     (Exhibit 3.b.(i) to A&B's Form 10-Q for the quarter ended September 30,
     1991).

4.   Instruments defining rights of security holders, including indentures.

     4.a.     Equity.

     4.a.     Rights Agreement, dated as of December 8, 1988 between
     Alexander & Baldwin, Inc. and Manufacturers Hanover Trust Company, Press
     Release of Alexander & Baldwin, Inc. and Form of Letter to Shareholders of
     Alexander & Baldwin, Inc. (Exhibits 4, 28(a) and 28(b) to A&B's Form 8-K
     dated December 13, 1988).

     4.b.     Debt.

     4.b.      (i)  Amended and Restated Revolving Credit and Term Loan
     Agreement effective as of April 1, 1989 among Alexander & Baldwin, Inc. 
     and A&B-Hawaii, Inc. and Wells Fargo Bank, N.A., First Hawaiian Bank, 
     Chemical Bank, Bank of Hawaii, Chase Manhattan Bank, and The Bank of 
     California, N.A. (Exhibit 4.b.(xi) to A&B's Form 10-Q for the quarter
     ended September 30, 1989).

              (ii)  First Amendment to Amended and Restated Revolving Credit 
     and Term Loan Agreement, dated as of December 21, 1989, among Alexander &
     Baldwin, Inc. and A&B-Hawaii, Inc. and Wells Fargo Bank, N.A., First 
     Hawaiian Bank, Chemical Bank, Bank of Hawaii, Chase Manhattan Bank and
     The Bank of California, N.A. (Exhibit 4.b.(ii) to A&B's Form 10-K for the
     year ended December 31, 1989).

             (iii)  Second Amendment to Amended and Restated Revolving Credit
     and Term Loan Agreement, dated as of May 4, 1990, among Alexander & 
     Baldwin, Inc. and A&B-Hawaii, Inc. and Wells Fargo Bank, N.A., First
     Hawaiian Bank, Chemical Bank, Bank of Hawaii, Chase Manhattan Bank and
     The Bank of California, N.A. (Exhibit 4.b.(iii) to A&B's Form 10-Q for
     the quarter ended June 30, 1990).

              (iv)  Third Amendment to Amended and Restated Revolving Credit
     and Term Loan Agreement, dated as of February 8, 1991, among Alexander &
     Baldwin, Inc. and A&B-Hawaii, Inc. and Wells Fargo Bank, N.A., First
     Hawaiian Bank, Bank of Hawaii, Bank of America National Trust & Savings
     Association and The Bank of California, N.A. (Exhibit 4.b.(iv) to A&B's
     Form 10-K for the year ended December 31, 1990).

               (v)  Fourth Amendment to Amended and Restated Revolving Credit
     and Term Loan Agreement, dated as of November 26, 1991, among Alexander &
     Baldwin, Inc. and A&B-Hawaii, Inc. and Wells Fargo Bank, N.A., First
     Hawaiian Bank, Bank of America National Trust & Savings Association, Bank
     of Hawaii, The Bank of California, N.A., and Credit Lyonnais San Francisco
     Branch and Credit Lyonnais Cayman Island Branch (Exhibit 4.b.(vi) to A&B's
     Form 10-K for the year ended December 31, 1991).

              (vi)  Fifth Amendment to Amended and Restated Revolving Credit
     and Term Loan Agreement, dated as of December 29, 1992, among Alexander &
     Baldwin, Inc. and A&B-Hawaii, Inc. and First Hawaiian Bank, Bank of
     America National Trust & Savings Association, Bank of Hawaii, The Bank of
     California, N.A., Credit Lyonnais San Francisco Branch and Credit
     Lyonnais Cayman Island Branch (Exhibit 4.b.(vii) to A&B's Form 10-K for
     the year ended December 31, 1992).

             (vii)  Sixth Amendment to Amended and Restated Revolving Credit
     and Term Loan Agreement, dated as of December 30, 1993, among Alexander &
     Baldwin, Inc. and A&B-Hawaii, Inc. and First Hawaiian Bank, Bank of
     America National Trust & Savings Association, Bank of Hawaii, The Bank of
     California, N.A., Credit Lyonnais Los Angeles Branch and Credit Lyonnais
     Cayman Island Branch (Exhibit 4.b.(vii) to A&B's Form 10-K for the year
     ended December 31, 1993).

            (viii)  Seventh Amendment to Amended and Restated Revolving Credit
     and Term Loan Agreement, dated as of November 30, 1994, among Alexander &
     Baldwin, Inc. and A&B-Hawaii, Inc. and First Hawaiian Bank, Bank of
     America National Trust & Savings Association, Bank of Hawaii, The Bank of
     California, N.A., Credit Lyonnais Los Angeles Branch and Credit Lyonnais
     Cayman Island Branch (Exhibit 4.b.(viii) to A&B's Form 10-K for the year
     ended December 31, 1994).

              (ix)  Eighth Amendment to Amended and Restated Revolving Credit
     and Term Loan Agreement, dated as of November 30, 1995, among Alexander &
     Baldwin, Inc. and A&B-Hawaii, Inc. and First Hawaiian Bank, Bank of
     America National Trust & Savings Association, Bank of Hawaii, The Bank of
     California, N.A., Credit Lyonnais Los Angeles Branch and Credit Lyonnais
     Cayman Island Branch.

10.   Material contracts.

     10.a.     (i)  Purchase and Exchange Agreement, by and between Wailea
     Development Company, Inc. and Wailea Resort Company, Ltd., dated as of
     January 15, 1989; Letters of Guaranty of Alexander & Baldwin, Inc. and
     Shinwa Golf Kabushiki Kaisha, respectively, dated as of January 15, 1989;
     Press Release of Alexander & Baldwin, Inc., dated February 10, 1989; and
     Pro Forma Financial Information relative to the transaction (Ex-
     hibits 10.b.(vii)(a) through 10.b.(vii)(e) to A&B's Form 8-K dated
     February 10, 1989).

              (ii)  Contract for the Construction of One Containership by and
     between Matson Navigation Company, Inc. and National Steel and Ship-
     building Company, dated January 31, 1990 (Exhibit 10.b.(vii) to A&B's Form
     10-K for the year ended December 31, 1989).

             (iii)  Issuing and Paying Agent Agreement between Matson
     Navigation Company, Inc. and Security Pacific National Trust (New York),
     with respect to Matson Navigation Company, Inc.'s $150 million commercial
     paper program dated September 18, 1992 (Exhibit 10.b.1.(xxviii) to A&B's
     Form 10-Q for the quarter ended September 30, 1992).

              (iv)  Issuing and Paying Agent Agreement among Matson Leasing
     Company, Inc., Matson Navigation Company, Inc. and Security Pacific
     National Trust (New York), with respect to Matson Leasing Company, Inc.'s
     $115 million commercial paper program dated September 18, 1992
     (Exhibit 10.b.1.(xxix) to A&B's Form 10-Q for the quarter ended
     September 30, 1992).

               (v)  Revolving Credit Agreement between Alexander & Baldwin,
     Inc., A&B-Hawaii, Inc. and First Hawaiian Bank, dated July 9, 1991
     (Exhibit 10.b.(xi) to A&B's Form 10-Q for the quarter ended September 30,
     1991).

              (vi)  Note Agreement among Alexander & Baldwin, Inc. and
     A&B-Hawaii, Inc. and The Prudential Insurance Company of America, effec-
     tive as of December 20, 1990 (Exhibit 10.b.(ix) to A&B's Form 10-K for
     the year ended December 31, 1990).

             (vii)  Note Agreement among Alexander & Baldwin, Inc. and
     A&B-Hawaii, Inc. and The Prudential Insurance Company of America, dated as
     of June 4, 1993 (Exhibit 10.a.(xiii) to A&B's Form 8-K dated June 4, 
     1993).

            (viii)  Amendment dated as of May 20, 1994 to the Note Agreements
     among Alexander & Baldwin, Inc., A&B-Hawaii, Inc. and The Prudential
     Insurance Company of America, dated as of December 20, 1990 and June 4,
     1993 (Exhibit 10.a.(xviv) to A&B's Form 10-Q for the quarter ended June 
     30, 1994).

              (ix)  Amendment dated January 23, 1995 to the Note Agreement
     among Alexander & Baldwin, Inc. and A&B-Hawaii, Inc. and The Prudential
     Insurance Company of America, effective as of December 20, 1990 (Exhi-
     bit 10.a.(xvi) to A&B's Form 10-K for the year ended December 31, 1994).

               (x)  General Lease between the State of California and
     California and Hawaiian Sugar Company, dated September 24, 1992
     (Exhibit 10.a.(xiv) to A&B's Form 10-Q for the quarter ended June 30,
     1993).
              (xi)  Amendment to Lease and Reservation of Easements, between
     the State of California and California and Hawaiian Sugar Company, dated 
     as of July 29, 1993 (Exhibit 10.a.(xv) to A&B's Form 10-Q for the quarter
     ended September 30, 1993).

          (xii)(a)  Commercial Paper Dealer Agreement between California and
     Hawaiian Sugar Company and First Chicago Capital Markets, Inc., dated 
     April 22, 1991, with respect to California and Hawaiian Sugar Company's
     $100 million revolving credit facility (Exhibit 10.a.(xviii) to A&B's
     Form 10-K for the year ended December 31, 1993).

          (xii)(b)  Depositary Agreement between California and Hawaiian Sugar
     Company and the First National Bank of Chicago, dated as of April 6, 1989
     (Exhibit 10.a.(xix)(b) to A&B's Form 10-K for the year ended December 31,
     1994).

            (xiii)  Amendment dated as of February 10, 1995, to Depositary
     Agreement between California and Hawaiian Sugar Company and The First
     National Bank of Chicago, dated as of April 6, 1989 (Exhibit 10.a.(xx) to
     A&B's Form 10-K for the year ended December 31, 1994).

             (xiv)  Revolving Credit Agreement between Alexander & Baldwin,
     Inc., A&B-Hawaii, Inc., and First Hawaiian Bank, dated December 30, 1993
     (Exhibit 10.a.(xx) to A&B's Form 10-Q for the quarter ended September 30,
     1994).

              (xv)  Amendment dated August 31, 1994 to the Revolving Credit
     Agreement between Alexander & Baldwin, Inc., A&B-Hawaii, Inc., and First
     Hawaiian Bank dated December 30, 1993 (Exhibit 10.a.(xxi) to A&B's
     Form 10-Q for the quarter ended September 30, 1994).

             (xvi)  Second Amendment dated March 29, 1995 to the Revolving
     Credit Agreement between Alexander & Baldwin, Inc., A&B-Hawaii, Inc., and
     First Hawaiian Bank, dated December 30, 1993 (Exhibit 10.a.(xxiii) to 
     A&B's Form 10-Q for the quarter ended March 31, 1995).

            (xvii)  Amendment dated November 29, 1995 to the Note Agreement
     among Alexander & Baldwin, Inc., A&B-Hawaii, Inc., and The Prudential
     Insurance Company of America, dated as of December 20, 1990 and June 4,
     1993.

           (xviii)  Asset Purchase Agreement among XTRA, Inc., Matson
     Navigation Company, Inc. and Matson Leasing Company, Inc., dated June 30,
     1995 (Exhibit 10.a.(xxiv) to A&B's Form 8-K dated June 30, 1995).

             (xix)  Revised pro forma financial information relative to the
     Asset Purchase Agreement among XTRA, Inc., Matson Navigation Company, Inc.
     and Matson Leasing Company, Inc., dated June 30, 1995 (Exhibit 10.a.(xxv)
     to A&B's Form 8-K/A dated June 30, 1995).

              (xx)  Balance sheets as of December 31, 1993 and 1994 and State-
     ments of Income and Statements of Cash Flows for the years ended December
     31, 1992, 1993 and 1994, relative to the Asset Purchase Agreement among
     XTRA, Inc., Matson Navigation Company, Inc. and Matson Leasing Company,
     Inc., dated June 30, 1995 (Exhibit 10.a.(xxvi) to A&B's Form 8-K/A dated
     June 30, 1995).

             (xxi)  Commercial Paper Dealer Agreement among California and 
     Hawaiian Sugar Company, Inc., Alexander & Baldwin, Inc., A&B-Hawaii, Inc.
     and Goldman Sachs Money Markets, L.P. dated June 20, 1995, with respect to
     California and Hawaiian Sugar Company, Inc.'s $100 million  revolving
     credit facility (Exhibit 10.a.(xxvi) to A&B's Form 10-Q for the quarter
     ended June 30, 1995).

            (xxii)  Amendment dated as of June 30, 1995 to the Note Agreements,
     among Alexander & Baldwin, Inc., A&B-Hawaii, Inc. and The Prudential
     Insurance Company of America, dated as of December 20, 1990 and June 4,
     1993 (Exhibit 10.a.(xxvii) to A&B's Form 10-Q for the quarter ended
     June 30, 1995).

           (xxiii)  Note Agreement between Matson Leasing Company, Inc. and The
     Prudential Insurance Company of America, dated as of June 28, 1991
     (Exhibit 10.b.(x) to A&B's Form 10-Q for the quarter ended June 30, 1991).

            (xxiv)  Amendment dated March 11, 1992 to the Note Agreement
     between Matson Leasing Company, Inc. and The Prudential Insurance Company
     of America, dated as of June 28, 1991 (Exhibit 10.a.(vii) to A&B's
     Form 10-K for the year ended December 31, 1992).

             (xxv)  Second Amendment dated as of August 31, 1993 to the Note
     Agreement between Matson Leasing Company, Inc. and The Prudential 
     Insurance Company of America, dated as of June 28, 1991 (Exhibit
     10.a.(viii) to A&B's Form 10-K for the year ended December 31, 1993).

            (xxvi)  Note Agreement between Matson Leasing Company, Inc. and The
     Prudential Insurance Company of America, dated as of March 11, 1992
     (Exhibit 10.a.(x) to A&B's Form 10-Q for the quarter ended March 31, 
     1992).

           (xxvii)  First Amendment dated as of August 1, 1993 to the Note
     Agreement between Matson Leasing Company, Inc. and The Prudential 
     Insurance Company of America, dated as of March 11, 1992 (Exhibit
     10.a.(xi) to A&B's Form 10-K for the year ended December 31, 1993).

       (xxviii)(a)  Assignment and Assumption Agreement dated as of June 30, 
       1995, among Matson Leasing Company, Inc., Matson Navigation Company,
       Inc. and The Prudential Insurance Company of America, with respect
       to the Note Agreements between Matson Leasing Company, Inc. and The
       Prudential Insurance Company of America dated as of June 28, 1991 and
       March 11, 1992 (Exhibit 10.a.(xxviii)(a) to A&B's Form 10-Q for the
       quarter ended June 30, 1995).

       (xxviii)(b)  Consent and Amendment Agreement dated as of June 30, 1995,
     among Matson Leasing Company, Inc., Matson Navigation Company, Inc. and 
     The Prudential Insurance Company of America, with respect to the Note
     Agreements between Matson Leasing Company, Inc. and The Prudential
     Insurance Company of America dated as of June 28, 1991 and March 11, 1992
     (Exhibit 10.a.(xxviii)(b) to A&B's Form 10-Q for the quarter ended June
     30, 1995).

            (xxix)  Agreement to Implement the Execution and Closing of Vessel
     Purchase, Purchase of Guam Assets and Alliance Slot Hire Agreement between
     Matson Navigation Company, Inc. and American President Lines, Ltd., dated
     as of September 22, 1995 (Exhibit 10.a.(xxix) to A&B's Form 10-Q for the
     quarter ended September 30, 1995).

             (xxx)  Amendments Nos. 1 through 7, dated as of October 10, 1995,
     October 30, 1995, November 30, 1995, December 8, 1995, December 15, 1995,
     January 31, 1996 and February 8, 1996, respectively, to the Agreement to
     Implement the Execution and Closing of Vessel Purchase, Purchase of Guam
     Assets and Alliance Slot Hire Agreement between Matson Navigation Company,
     Inc., and American President Lines, Ltd., dated as of September 22, 1995.

            (xxxi)  Vessel Purchase Agreement between Matson Navigation
     Company, Inc., and American President Lines, Ltd., dated December 20, 
     1995.

           (xxxii)  Amendment No. 1 dated December 28, 1995 to the Vessel
     Purchase Agreement between Matson Navigation Company, Inc., and American
     President Lines, Ltd., dated December 20, 1995.

   *10.b.1.    (i)  Alexander & Baldwin, Inc. Restricted Stock Bonus Plan, as
     restated effective April 28, 1988 (Exhibit 10.c.1.(xi) to A&B's Form 10-Q
     for the quarter ended June 30, 1988).

              (ii)  Alexander & Baldwin, Inc. 1983 Stock Option Plan
     (Exhibit 10.c.1.(vii) to A&B's Form 10-K for the year ended December 31,
     1982).


* All exhibits listed under 10.b.1. are management contracts or compensatory
  plans or arrangements.


             (iii)  Amendment No. 1 to Alexander & Baldwin, Inc. 1983 Stock
     Option Plan, effective December 14, 1983 (Exhibit 10.c.1.(viii) to A&B's
     Form 10-K for the year ended December 31, 1983).

              (iv)  Amendment No. 2 to Alexander & Baldwin, Inc. 1983 Stock
     Option Plan, effective January 1, 1987 (Exhibit 10.c.1.(xii) to A&B's
     Form 10-K for the year ended December 31, 1986).

      (v)Amendment No. 3 to the Alexander & Baldwin, Inc. 1983 Stock Option 
      Plan (Exhibit 10.b.1.(xxv) to A&B's Form 10-Q for the quarter ended June
      30, 1992).

              (vi)  Alexander & Baldwin, Inc. 1989 Stock Option/ Stock
     Incentive Plan (Exhibit 10.c.1.(ix) to A&B's Form 10-K for the year ended
     December 31, 1988).

             (vii)  Amendment No. 1 to the Alexander & Baldwin, Inc. 1989 Stock
     Option/Stock Incentive Plan (Exhibit 10.b.1.(xxvi) to A&B's Form 10-Q for
     the quarter ended June 30, 1992).

            (viii)  Amendment No. 2 to the Alexander & Baldwin, Inc. 1989 Stock
     Option/Stock Incentive Plan, effective as of January 27, 1994
     (Exhibit 10.b.1.(iv) to A&B's Form 10-Q for the quarter ended March 31,
     1994).

              (ix)  Amendment No. 3 to the Alexander & Baldwin, Inc. 1989 Stock
     Option/Stock Incentive Plan, effective as of October 27, 1994
     (Exhibit 10.b.1.(ix) to A&B's Form 10-K for the year ended December 31,
     1994).

               (x)  Alexander & Baldwin, Inc. 1989 Non-Employee Director Stock
     Option Plan (Exhibit 10.c.1.(x) to A&B's Form 10-K for the year ended
     December 31, 1988).

              (xi)  Amendment No. 1 to the Alexander & Baldwin, Inc. 1989 Non-
     Employee Director Stock Option Plan (Exhibit 10.b.1.(xxiv) to A&B's Form
     10-K for the year ended December 31, 1991).

             (xii)  Amendment No. 2 to the Alexander & Baldwin, Inc. 1989 Non-
     Employee Director Stock Option Plan (Exhibit 10.b.1.(xxvii) to A&B's Form
     10-Q for the quarter ended June 30, 1992).

            (xiii)  Second Amended and Restated Employment Agreement between
     Alexander & Baldwin, Inc. and R. J. Pfeiffer, effective as of October 25,
     1990 (Ex-hibit 10.c.1.(xiii) to A&B's Form 10-K for the year ended
     December 31, 1990).

             (xiv)  A&B Deferred Compensation Plan for Outside Directors
     (Exhibit 10.c.1.(xviii) to A&B's Form 10-K for the year ended December 31,
     1985).

              (xv)  Amendment No. 1 to A&B Deferred Compensation Plan for
     Outside Directors, effective October 27, 1988 (Exhibit 10.c.1.(xxix) to
     A&B's Form 10-Q for the quarter ended September 30, 1988).

             (xvi)  A&B Life Insurance Plan for Outside Directors
     (Exhibit 10.c.1.(xix) to A&B's Form 10-K for the year ended December 31,
     1985).

            (xvii)  A&B Excess Benefits Plan, Amended and Restated Effective
     July 1, 1991 (Exhibit 10.b.1.(xvi) to A&B's Form 10-K for the year ended
     December 31, 1992).

           (xviii)  Amendment No. 1 to the A&B Excess Benefits Plan, effective
     January 1, 1994 (Exhibit 10.b.1.(xvii) to A&B's Form 10-K for the year
     ended December 31, 1993).

             (xix)  Amendment No. 2 to the A&B Excess Benefits Plan, effective
     August 24, 1994 (Exhibit 10.b.1.(xix) to A&B's Form 10-K for the year 
     ended December 31, 1994).

              (xx)  Amendment No. 3 to and Restatement of the A&B Excess
     Benefits Plan, effective February 1, 1995 (Exhibit 10.b.1.(xx) to A&B's
     Form 10-K for the year ended December 31, 1994).

             (xxi)  A&B Executive Survivor/Retirement Benefit Plan, Amended and
     Restated Effective July 1, 1991 (Exhibit 10.b.1.(xvii) to A&B's Form 10-K
     for the year ended December 31, 1992).

            (xxii)  Amendment No. 1 to and Restatement of the A&B Executive
     Survivor/Retirement Benefit Plan, effective February 1, 1995
     (Exhibit 10.b.1.(xxii) to A&B's Form 10-K for the year ended December 31,
     1994).

           (xxiii)  A&B 1985 Supplemental Executive Retirement Plan, Amended 
     and Restated Effective July 1, 1991 (Exhibit 10.b.1.(xviii) to A&B's Form
     10-K for the year ended December 31, 1992).

            (xxiv)  Amendment No. 1 to and Restatement of the A&B 1985 Supple-
     mental Executive Retirement Plan, effective February 1, 1995 (Exhibit
     10.b.1.(xxiv) to A&B's Form 10-K for the year ended December 31, 1994).

             (xxv)  A&B Retirement Plan for Outside Directors, Amended and
     Restated Effective October 24, 1991 (Exhibit 10.b.1.(xix) to A&B's
     Form 10-K for the year ended December 31, 1992).

            (xxvi)  Amendment No. 1 to and Restatement of the A&B Retirement
     Plan for Outside Directors, effective February 1, 1995
     (Exhibit 10.b.1.(xxvi) to A&B's Form 10-K for the year ended December 31,
     1994).

           (xxvii)  Form of Severance Agreement entered into with certain
     executive officers, as amended and restated effective August 22, 1991
     (Exhibit 10.c.1.(xxiv) to A&B's Form 10-Q for the quarter ended
     September 30, 1991).

          (xxviii)  Alexander & Baldwin, Inc. One-Year Performance Improvement
     Incentive Plan, as restated effective October 22, 1992
     (Exhibit 10.b.1.(xxi) to A&B's Form 10-K for the year ended December 31,
     1992).

            (xxix)  Alexander & Baldwin, Inc. Three-Year Performance
     Improvement Incentive Plan, as restated effective October 22, 1992
     (Exhibit 10.b.1.(xxii) to A&B's Form 10-K for the year ended December 31,
     1992).

             (xxx)  Alexander & Baldwin, Inc. Deferred Compensation Plan
     effective August 25, 1994 (Exhi-bit 10.b.1.(xxv) to A&B's Form 10-Q for 
     the quarter ended September 30, 1994).

11.  Statement re computation of per share earnings.
      
13.  Annual report to security holders.

     13.   Alexander & Baldwin, Inc. 1995 Annual Report.

22.  Subsidiaries.

     22.   Alexander & Baldwin, Inc. Subsidiaries as of February 29, 1996

24.  Consent of Deloitte & Touche LLP dated March 27, 1996 (included as last
     page of A&B's Form 10-K for the year ended December 31, 1995).
      
     D.    REPORTS ON FORM 8-K
           -------------------

           An amendment on Form 8-K/A, to a report on Form 8-K dated June 30,
1995, was filed on December 12, 1995, for the purpose of filing under Item 7
certain required pro forma financial information and financial statements
relative to the sale by Matson Leasing and Matson (collectively, the 
"Sellers"), of Matson Leasing's container leasing business, through the sale
of certain assets and liabilities of the Sellers (primarily of Matson Leasing).



<PAGE>

                                   SIGNATURES
                                   ----------



      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                    ALEXANDER & BALDWIN, INC.
                                    (Registrant)


Date: March 27, 1996                By /s/ John C. Couch
                                       --------------------------------
                                      
                                       John C. Couch
                                       Chairman of the Board,
                                       President and Chief
                                       Executive Officer



      Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant in the capacities and on the dates indicated.


     SIGNATURE                     TITLE                DATE
     ---------                     -----                ----



/s/ John C. Couch             Chairman of the       March 27, 1996
- -------------------------     Board, President
John C. Couch                 and Chief Execu-
                              tive Officer and
                              Director

/s/ Glenn R. Rogers           Vice President,       March 27, 1996
- -------------------------     Chief Financial
Glenn R. Rogers               Officer and
                              Treasurer

/s/ Thomas A. Wellman         Controller            March 27, 1996
- -------------------------
Thomas A. Wellman


/s/ Michael J. Chun           Director              March 27, 1996
- -------------------------
Michael J. Chun


/s/ Leo E. Denlea, Jr.        Director              March 27, 1996
- -------------------------
Leo E. Denlea, Jr.


/s/ Walter A. Dods, Jr.       Director              March 27, 1996
- --------------------------
Walter A. Dods, Jr.


/s/ Charles G. King           Director              March 27, 1996
- --------------------------
Charles G. King


/s/ Carson R. McKissick       Director              March 27, 1996
- --------------------------
Carson R. McKissick


/s/ C. Bradley Mulholland     Director              March 27, 1996
- --------------------------
C. Bradley Mulholland


/s/ Robert G. Reed III        Director              March 27, 1996
- --------------------------
Robert G. Reed III


/s/ Maryanna G. Shaw          Director              March 27, 1996
- --------------------------
Maryanna G. Shaw


/s/ Charles M. Stockholm      Director              March 27, 1996
- --------------------------
Charles M. Stockholm




<PAGE>


INDEPENDENT AUDITORS' REPORT

Alexander & Baldwin, Inc.:

We have audited the financial statements of Alexander & Baldwin, Inc. and its
subsidiaries as of December 31, 1995 and 1994, and for each of the three years
in the period ended December 31, 1995, and have issued our report thereon dated
January 25, 1996; such financial statements and report are included in your 
1995 Annual Report to Shareholders and are incorporated herein by reference.
Our audits also included the financial statement schedules of Alexander &
Baldwin, Inc. and its subsidiaries, listed in Item 14.B.  These financial
statement schedules are the responsibility of the Company's management.  Our
responsibility is to express an opinion based on our audits.  In our opinion,
such financial statement schedules, when considered in relation to the basic
financial statements taken as a whole, present fairly in all material respects
the information shown therein.

/s/ Deloitte & Touche LLP
Honolulu, Hawaii

January 25, 1996



<PAGE>

INDEPENDENT AUDITORS' CONSENT

Alexander & Baldwin, Inc.:

We consent to the incorporation by reference in Registration Statements
No. 2-72008, 2-84179, 33-31922, 33-31923 and 33-54825 of Alexander & Baldwin,
Inc. and its subsidiaries on Form S-8 of our reports dated January 25, 1996,
appearing in and incorporated by reference in the Annual Report on Form 10-K of
Alexander & Baldwin, Inc. and its subsidiaries for the year ended December 31,
1995.

/s/ Deloitte & Touche LLP
Honolulu, Hawaii

March 27, 1996


<PAGE>


                                                                    SCHEDULE I
                                                                    Page 1 of 4
ALEXANDER & BALDWIN, INC.                                   
CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ALEXANDER & BALDWIN, INC. (Parent Company)
CONDENSED BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
(In thousands)

                                                            1995          1994
                                                           ------        ------
ASSETS
Current Assets:
   Cash and cash equivalents                                 $44           $37
   Accounts and notes receivable, net                         75             1
   Prepaid expenses and other                              7,033         5,913
                                                        --------      --------
       Total current assets                                7,152         5,951
                                                        --------      --------
Investments:
   Subsidiaries consolidated, at equity                  584,151       596,070
   Other                                                  81,538        61,031
                                                        --------      --------
       Total investments                                 665,689       657,101
                                                        --------      --------
Real Estate Developments                                  -              8,196
                                                        --------      --------
Property, at cost                                         97,193        80,814
   Less accumulated depreciation and amortization         10,512         7,595
                                                        --------      --------
       Property -- net                                    86,681        73,219
                                                        --------      --------
Other Assets                                               1,234         1,232
                                                        --------      --------
       Total                                            $760,756      $745,699
                                                        ========      ========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
   Accounts payable                                         $319        $1,640
   Due to subsidiaries                                    53,805        54,162
   Other                                                   4,361         9,188
                                                        --------      --------
       Total current liabilities                          58,485        64,990
                                                        --------      --------
Long-Term Liabilities                                      5,127         7,485
                                                        --------      --------
Deferred Income Taxes                                     43,818        40,610
                                                        --------      --------
Commitments and Contingencies

Shareholders' Equity:
   Capital stock                                          37,133        37,493
   Additional capital                                     40,138        38,862
   Unrealized holding gains on securities                 39,830        29,073
   Retained earnings                                     550,042       541,910
   Cost of treasury stock                                (13,817)      (14,724)
                                                        --------      --------
       Total shareholders' equity                        653,326       632,614
                                                        --------      --------
       Total                                            $760,756      $745,699
                                                        ========      ========

See accompanying notes.


<PAGE>

<TABLE>
<CAPTION>
                                                                      SCHEDULE I
                                                                      Page 2 of 4

ALEXANDER & BALDWIN, INC. (Parent Company)
CONDENSED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(In thousands)

<S>                                                    <C>           <C>         <C>
                                                         1995          1994        1993
Revenue:
   Net sales, revenue from services and rentals        $10,287       $ 9,753    $12,362
   Interest, dividends and other                         3,798         3,753      2,683
                                                       -------       -------    ------- 
       Total revenue                                    14,085        13,506     15,045
                                                       -------       -------    -------
Costs and Expenses:
   Cost of goods sold, services and rentals              2,946         4,972      3,289
   Selling, general and administrative                   9,111        11,119     10,904
   Interest and other                                    1,604         1,148      2,449
   Income taxes                                            427        (4,339)    (1,393)
                                                       -------       -------    -------
       Total costs and expenses                         14,088        12,900     15,249
                                                       -------       -------    -------
Income (Loss) Before Equity in Net Income            
   Subsidiaries Consolidated                                (3)          606       (204)

Equity in Net Income From Continuing Operations of
   Subsidiaries Consolidated                            32,422        63,373     58,940

Equity in Net Income From Discontinued Operations                            
   of Subsidiaries Consolidated                         23,336 *      10,629      8,253
                                                       -------       -------    -------
                Net Income                             $55,755       $74,608    $66,989
                                                       =======       =======    =======

See accompanying notes.

* Includes an after-tax gain of $18 million on the sale of the net assets of Matson 
  Leasing Company, Inc.

</TABLE>


<PAGE>


<TABLE>
<CAPTION>
                                                                      SCHEDULE I
                                                                      Page 3 of 4

ALEXANDER & BALDWIN, INC. (Parent Company)
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1995,1994 AND 1993
(In thousands)

<S>                                                     <C>         <C>       <C>
                                                          1995        1994      1993
                                                        -------     -------    -------

Cash Flows from Operations                              ($9,405)    ($6,341)   $11,696
                                                        -------     -------    -------         
Cash Flows from Investing Activities:                
   Capital expenditures                                    (678)       (935)      (800)
   Proceeds from sale (purchase) of investments          (1,514)      1,200         -
                                                        -------     -------    -------
   Net cash provided by (used in) investing activities   (2,192)        265       (800)
                                                        -------     -------    -------
Cash Flows from Financing Activities:
   Increase (decrease) in intercompany payable             (357)      5,066     (8,118)
   Dividends received from subsidiaries                  70,000      60,000     39,000
   Payments of long-term debt                            (6,892)       (935)      (936)
   Proceeds from issuances of capital stock                 468         122        288
   Repurchase of capital stock                          (11,580)    (17,717)     -
   Dividends paid                                       (40,035)    (40,563)   (40,777)
                                                        -------     -------    ------- 
   Net cash provided by (used in) financing activities   11,604       5,973    (10,543)
                                                        -------     -------    -------
Cash and Cash Equivalents:
   Net increase (decrease) for the year                       7        (103)       353
   Balance, beginning of year                                37         140       (213)
                                                        -------     -------    -------
   Balance, end of year                                     $44         $37       $140
                                                        =======     =======    =======

Other Cash Flow Information:
   Interest paid, net of amounts capitalized               $479        $889       $690
   Income taxes paid                                     53,014      18,391     15,123


See accompanying notes.

</TABLE>


<PAGE>


                                                                    SCHEDULE I
                                                                    Page 4 of 4

ALEXANDER & BALDWIN, INC. (Parent Company)
NOTES TO CONDENSED FINANCIAL STATEMENTS


(a) ORGANIZATION AND OPERATIONS

Alexander & Baldwin, Inc. is the parent company of A&B-Hawaii, Inc. (ABHI) and 
Matson Navigation Company, Inc. (Matson).  ABHI has principal business opera-
tions of Food Products and Property Development and Management.  Matson has 
principal business operations of Ocean Transportation and until June 1995, of
Container Leasing.  The net assets of Matson Leasing Company, Inc., the 
Company's container leasing subsidiary, were sold in June 1995 for $361.7 
million in cash.  Accordingly, the operating results and the gain on sale of
The container leasing segment have been separately reported. 

(b) LONG-TERM LIABILITIES

At December 31, 1995 and 1994, long-term liabilities consisted of the following:

                                                               1995        1994
                                                                (In thousands)
   Long-term debt:
     Limited partnership subscription notes,
         no interest, payable through 1996                     $850      $1,700
     Mortgage loans, collateralized by land and
         buildings, 9% to 12.5%, repaid in 1995                 -         6,041
               Total                                            850       7,741
         Less current portion                                   850       6,657
               Long-term debt                                     0       1,084
   Other--principally deferred compensation and
         executive survivors                                  5,127       6,401
               Total                                         $5,127      $7,485

At December 31, 1995, maturities of long-term debt during 1996 will be 
$850,000.

(c)COMMITMENTS AND CONTINGENCIES

The Company and certain subsidiaries are parties to various legal actions and 
are contingently liable in connection with claims and contracts arising in the
normal course of business, the outcome of which, in the opinion of management 
after consultation with legal counsel, will not have a material adverse effect
on the Company's financial position.

At December 31, 1995, the Company did not have any significant firm commitments.

(d)CASH DIVIDENDS FROM AFFILIATES

Cash dividends from a consolidated subsidiary were $70,000,000 in 1995, 
$60,000,000 in 1994 and $39,000,000 in 1993.







Exhibit 4.b.(ix)


                              EIGHTH AMENDMENT TO
                    REVOLVING CREDIT AND TERM LOAN AGREEMENT
                    ----------------------------------------




      This Eighth Amendment (the "Eighth Amendment") dated as of November 30,
1995 (the "Effective Date"), by and among ALEXANDER & BALDWIN, INC., a Hawaii
corporation (the "Parent"), A&B-HAWAII, INC., a Hawaii corporation
("A&B-Hawaii"), the undersigned banks (individually a "Bank" and collectively
the "Banks"), and FIRST HAWAIIAN BANK, a Bank and as Agent for the Banks,
amends the Amended and Restated Revolving Credit and Term Loan Agreement (as
previously amended, the "Agreement") effective as of April 1, 1989, among the
Parent, A&B-Hawaii, the Agent, and the banks that are parties thereto.

                                    RECITALS
                                    --------


      A.    The Parent, A&B-Hawaii, the Banks and the Agent have entered into
the Agreement.

      B.    The parties hereto wish to amend the Agreement to extend the
Termination Date as set forth below.

                                   AGREEMENT
                                   ---------


      NOW, THEREFORE, in consideration of the mutual covenants contained
      herein, the parties hereto agree as follows:

      1.    Definitions.  All terms defined in the Agreement shall have such
            -----------
defined meanings when used herein, unless otherwise defined herein.

      2.    Amendment.  In the definition of "Termination Date" set forth in
            ---------
Section 9.1 of the Agreement, the date "November 30, 1996" shall be deleted,
and the date "November 30, 1997" shall be inserted in its place.

      3.    Miscellaneous.
            -------------

            a.    Except as otherwise expressly amended by this Eighth
Amendment, the Agreement shall continue to be in full force and effect in
accordance with its terms.  All references to the Agreement shall mean the
Agreement as amended by this Eighth Amendment.

            b.    This Eighth Amendment may be executed by one or more of the
parties hereto in any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

            c.    This Eighth Amendment shall be governed by, and construed and
interpreted in accordance with, the laws of the State of California.

            d.    Each party hereby represents to the others that each of the
individuals executing this Eighth Amendment on its behalf is a duly appointed
signatory of the respective party to this Eighth Amendment and that each is
duly authorized to execute this Eighth Amendment by or on behalf of the
respective party for whom he or she is signing and duly authorized to take any
and all action required by the terms of this Eighth Amendment.

            e.    The Borrowers represent and warrant that on and as of the
Effective Date of this Eighth Amendment, the material representation and
warranties contained in the Agreement or made in any writing delivered or
furnished pursuant to this Eighth Amendment are true and correct, and no Event
of Default or Unmatured Event of Default shall have occurred and be continuing.

            f.    All of the terms of this Eighth Amendment shall be effective
as of the Effective Date.

      IN WITNESS WHEREOF, the parties hereto have executed this Eighth
Amendment as of the Effective Date.


ALEXANDER & BALDWIN, INC.           A&B-HAWAII, INC.

By /s/ G. Stephen Holaday           By /s/ G. Stephen Holaday
Its Vice President                  Its Senior Vice President


FIRST HAWAIIAN BANK,                BANK OF AMERICA NATIONAL TRUST
as a Bank and as Agent              AND SAVINGS ASSOCIATION,
                                    individually and as Co-Agent
By /s/Adolph F. Chang
Its Vice President                  By /s/ Richard E. Bryson
                                    Its Vice President


BANK OF HAWAII                      THE BANK OF CALIFORNIA, N.A.

By /s/ D. Edward Wohlleb            By /s/ Wanda Headrick
Its Vice President                  Its Vice President


CREDIT LYONNAIS LOS ANGELES         CREDIT LYONNAIS CAYMAN ISLAND            
BRANCH                              BRANCH

By /s/ Thierry F. Vincent           By /s/ Thierry F. Vincent
Its Vice President                  Its Authorized Signatory





Exhibit 10.a.(xvii)


November 29, 1995



Alexander & Baldwin, Inc.
A&B-Hawaii, Inc.
822 Bishop Street
Honolulu, Hawaii 96801

Ladies and Gentlemen:

      Reference is made to the Note Agreement dated as of (i) December 20,
1990, (the "1990 Agreement") among Alexander & Baldwin, Inc., A&B-Hawaii, Inc.
(together, the "Issuers") and The Prudential Insurance Company of America
("Prudential"), pursuant to which the Issuers issued and sold, and Prudential
purchased, the Issuers' 9.05% Senior Notes due December 15, 1999 in original
principal amount of $50,000,000 and (ii) June 4, 1993 (the "1993 Agreement,"
the 1990 Agreement and the 1993 Agreement are together referred to as the
"Agreements") among the Issuers and Prudential, pursuant to which the Issuers
issued and sold, and Prudential purchased, the Issuers' 6.23% Senior Notes due
December 15, 1997 and Serial Senior Notes due June 30, 1999-2007 in aggregate
original principal amount of $75,000,000.  All capitalized terms not otherwise
defined herein shall have the respective meanings ascribed to them in the
applicable Agreement.

      At the request of the Issuers and pursuant to paragraph 11C of each
Agreement, Prudential agrees to amend and restate paragraph 6B(6)(iii)(B) of
each Agreement, effective as of September 30, 1995, as follows:

     "C&H create, incur, assume or suffer to exist at any time any Funded
     Debt except Funded Debt of C&H that does not exceed at any time 225%."
     
     The Issuers represent and warrant that (i) after giving effect hereto, no
Default or Event of Default shall exist and (ii) all consents, notices, waivers
and other actions by, to or of the Issuers' other lenders that are necessary in
connection with the foregoing matter have been made or obtained.

     Other than expressly amended herein, the Agreements continue unmodified
and in full force and effect.  Please sign a counterpart hereof and return it
to the undersigned, whereupon it shall become an amendment to each of the
Agreements, amending each of the 1990 Agreement and the 1993 Agreement in the
manner to the extent set forth herein.

                                    Very truly yours,

                                    The Prudential Insurance
                                    Company of America

                                    By /s/
                                           -----------
                                         Vice President



Acknowledged and Agreed to:

Alexander & Baldwin, Inc.

By /s/ G. Stephen Holaday
Its Vice President



A&B-Hawaii, Inc.

By /s/ G. Stephen Holaday
Its Senior Vice President





Exhibit 10.a.(xxx)


October 10, 1995



Mr. Kevin C. O'Rourke
Vice President & General Counsel
Matson Navigation Company
333 Market Street
San Francisco, CA  94105

      Re: Agreement to Implement the Execution and Closing of
          Vessel Purchase, Purchase of Guam Assets and Alliance
          Slot Hire Agreement Dated September 22, 1995
          -----------------------------------------------------


Dear Kevin:

     This is to confirm that APL and Matson have agreed to, and hereby do,
amend Sections 1.1(b)(viii) and 1.1(c)(vii) of the above agreement to change
the reference in those Sections from "October 16, 1995" to "October 30, 1995."

     To confirm this, please sign the enclosed copy of this letter in the space
provided and return that signed copy to me.

     Thank you.

                              Very truly yours,

                              AMERICAN PRESIDENT LINES, LTD.

                              By /s/ David V. Ainsworth

Acknowledged and Agreed:

MATSON NAVIGATION COMPANY, INC.

By /s/ Kevin C. O'Rourke




October 30, 1995


Mr. Kevin C. O'Rourke
Vice President/General Counsel
Matson Navigation Company
P. O. Box 7452
San Francisco, CA  94120

              Agreement to Implement the Execution and Closing of
           Vessel Purchase, Purchase of Guam Assets and Alliance Slot
                   Hire Agreement, dated September 22, 1995,
                  as amended by letter dated October 10, 1995

Dear Kevin:

     This is to confirm that APL and Matson have agreed to, and hereby do,
amend the above agreement
 as follows:

     1)   Section 1.1(b)(viii) and 1.1(c)(vii) are amended to change the
          reference in those Sections to "October 30, 1995" to "December 1,
          1995."

     2)   Sections 1.1(b)(vii) and 1.1(c)(vi) are amended to change the
          reference in those Sections to "November 1, 1995" to December 1,
          1995."

     3)   Recital E, Section 1.1(c)(x) and Section 3.1(a) are amended to change
          the reference in those Sections to "October 16, 1995" to "December 1,
          1995."

     4)   Section 9.8(a) is amended to change the reference therein to
          "October 1, 1995" to "November 1, 1995."

     To confirm this, please sign the enclosed copy of this letter in the space
provided and return that signed copy to me.

     Thank you.

                              Very truly yours,

                              AMERICAN PRESIDENT LINES, LTD.

                              By /s/ Frederick M. Sevekow, Jr.

Acknowledged and Agreed:

MATSON NAVIGATION COMPANY, INC.

By /s/ Kevin C. O'Rourke




November 30, 1995



Mr. Kevin C. O'Rourke
Vice President/General Counsel
Matson Navigation Company, Inc.
333 Market Street
P. O. Box 7452
San Francisco, CA  94120

     Agreement to Implement the Execution and Closing of Vessel
      Purchase, Purchase of Guam Assets and Alliance Slot Hire
  Agreement, dated September 22, 1995, as amended by Letters dated
               October 10, 1995 and October 30, 1995

Dear Kevin:

     This is to confirm that APL and Matson have agreed to, and hereby do,
amend the above agreement as follows:

     1)   Sections 1.1(b)(viii) and 1.1(c)(vii) are amended to change the
          reference in those Sections to "December 1, 1995" to "December 8,
          1995."

     2)   Sections 1.1(b)(vii) and 1.1(c)(vi) are amended to change the
          reference in those Sections to "December 1, 1995" to "December 8,
          1995."

     3)   Recital E and Section 3.1(a) are amended to change the reference in
          those Sections to "December 1, 1995" to "December 8, 1995."

     To confirm this, please sign the enclosed copy of this letter in the space
provided and return that signed copy to me.

     Thank you.

                              Very truly yours,

                              AMERICAN PRESIDENT LINES, LTD.

                              By /s/ Frederick M. Sevekow

Acknowledged and Agreed:

MATSON NAVIGATION COMPANY, INC.

By /s/ Kevin C. O'Rourke



December 8, 1995



Mr. Kevin C. O'Rourke
Vice President/General Counsel
Matson Navigation Company, Inc.
333 Market Street
P. O. Box 7452
San Francisco, CA  94120

   Agreement to Implement the Execution and Closing of Vessel
    Purchase, Purchase of Guam Assets and Alliance Slot Hire
Agreement, dated September 22, 1995, as amended by Letters dated
    October 10, 1995, October 30, 1995 and November 30, 1995

Dear Kevin:

     This is to confirm that APL and Matson have agreed to, and hereby do,
amend the above agreement as follows:

     1)   Sections 1.1(b)(viii) and 1.1(c)(vii) are amended to change the
          reference in those Sections to "December 8, 1995" to "December 15,
          1995."

     2)   Sections 1.1(b)(vii) and 1.1(c)(vi) are amended to change the
          reference in those Sections to "December 8, 1995" to "December 15,
          1995."

     3)   Recital E and Section 3.1(a) are amended to change the reference in
          those provisions to "December 8, 1995" to "December 15, 1995."

     To confirm this, please sign the enclosed copy of this letter in the space
provided and return that signed copy to me.

     Thank you.

                              Very truly yours,

                              AMERICAN PRESIDENT LINES, LTD.

                              By /s/ Frederick M. Sevekow, Jr.

Acknowledged and Agreed:

MATSON NAVIGATION COMPANY, INC.

By /s/ Kevin C. O'Rourke


<PAGE>


                               AMENDMENT NO. 5

                           DATED DECEMBER 15, 1995

                                BY AND BETWEEN

                       MATSON NAVIGATION COMPANY, INC.

                                     AND

                        AMERICAN PRESIDENT LINES, LTD.

                                    TO THE

                            AGREEMENT TO IMPLEMENT
                         THE EXECUTION AND CLOSING OF
                 VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND
                        ALLIANCE SLOT HIRE AGREEMENT,
                           DATED SEPTEMBER 22, 1995



<PAGE>



                               AMENDMENT NO. 5
                                    TO THE
                            AGREEMENT TO IMPLEMENT
                         THE EXECUTION AND CLOSING OF
                 VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND
                         ALLIANCE SLOT HIRE AGREEMENT
                         ----------------------------



     THIS AMENDMENT NO. 5 ("Amendment No. 5") to the AGREEMENT TO IMPLEMENT THE
EXECUTION AND CLOSING OF VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND ALLIANCE
SLOT HIRE AGREEMENT (as originally executed on September 22, 1995, and as
previously amended on October 10, October 30, November 30, 1995 and December 8,
1995, the "Agreement") is entered into this 15th day of December, 1995 by and
between MATSON NAVIGATION COMPANY, INC., a Hawaii corporation ("Matson") and
AMERICAN PRESIDENT LINES, LTD., a Delaware corporation ("APL").  Capitalized
terms used in this Amendment No. 5 and not otherwise defined herein have the
meanings specified in Appendix 1 to the Agreement.

                                  SECTION 1.

     (a)  The brackets around the words "Vessel Assets Inventory" in Section 
6.9 of the Table of Contents of the Agreement are deleted and the brackets
around the words "Schedule 1(b) - Responsibility and Schedule" in the Table of
Contents of the Agreement are deleted.

     (b)  The phrase "the terms and conditions of which are to be determined by
the parties as set forth herein and to be attached as Exhibit C" is deleted
                                                      ---------
from Recital D and the phrase "substantially in the form set forth in
Exhibit C" is inserted in lieu thereof.
- ---------

     (c)  Exhibits A, B, C, D, E and F to the Agreement are amended and 
          ----------------------     -
restated to read in their entirety as set forth, respectively, in Exhibits
                                                                  --------
A, B, C, D, E and F to this Amendment No. 5.
- -------------     -     

                                  SECTION 2.

     The words "a C-8 Vessel to be mutually designated by the parties by
October16, 1995" in Recital E of the Agreement are deleted and the words "the
PRESIDENT GRANT, Official No. 530138" are inserted in lieu thereof.

                                  SECTION 3.

     The phrase "January 2, 1996" in Section 1.1(a) of the Agreement is deleted
and the phrase "December 20, 1995" is inserted in lieu thereof.

                                  SECTION 4.

     The text of Sections 1.1(b)(vi), (vii) and (viii) and 1.1(c)(v), (vi) and
(vii) of the Agreement are deleted in their entirety, and the following text
inserted in lieu thereof in said Sections:

     "Intentionally Omitted."

                                  SECTION 5.

     The text of Section 1.1(c)(x) of the Agreement, including the brackets
around said Section, is deleted in its entirety.

                                  SECTION 6.

     Section 1.2(a) of the Agreement is deleted in its entirety and the
following inserted in lieu thereof:

     "Provided that Matson and APL shall have executed and delivered the
     VPA as provided in SECTION 1.1 hereof, and subject to the satisfaction
     of the conditions set forth in SECTIONS 1.2(b) and 1.2(c) hereof,
     Matson and APL shall consummate the transactions contemplated under
     the VPA and IBCA (i) on the first VPA Closing Date with respect to the
     PRESIDENT TYLER, which shall be on or about December 20, 1995, unless
     otherwise agreed by the parties, (ii) on or about January 2, 1996 with
     respect to two of the C-9 Vessels, but in no event later than January
     6, 1996, unless otherwise agreed by the parties (the "Second VPA
     Closing Date"), and (iii) on the Second VPA Closing Date, or on one or
     more subsequent VPA Closing Dates with respect to the remaining C-9
     Vessel and the two remaining C-8 Vessels, any such subsequent VPA
     Closing Date or Dates to occur as soon after the Second VPA Closing
     Date as practical, given the geographic location of such Vessels and
     availability of the United States Coast Guard to redocument such
     Vessels, unless otherwise agreed to by the parties, but not later than
     March 31, 1996, unless otherwise agreed to by the parties (any such
     subsequent VPA Closing Dates, together with the First VPA Closing Date
     and the Second VPA Closing Date, referred to herein individually as a
     "VPA Closing Date" and collectively as the "VPA Closing Dates")."

                                  SECTION 7.

     The words "first two C-9 Vessels" are deleted from Section 2.1(a) of the
Agreement and the words "PRESIDENT TYLER" are inserted in lieu thereof.

                                  SECTION 8.

     (a)  Section 3.1(a) is deleted in its entirety and the following text is
inserted in lieu thereof:

     "(a) Subject to the satisfaction of the conditions set forth in
     SECTION 3.1(b) and (c) hereof and to the provisions of SECTIONS 3.1(d)
     and (e) hereof, Matson and APL shall execute and deliver the Alliance
     Agreement and all Ancillary Alliance Agreements which the parties have
     theretofore in writing agreed on and identified as such on or about
     February 8, 1996, but in no event later than March 31, 1996, unless
     otherwise agreed by the parties (the date of such execution and
     delivery being referred to in this Agreement as the "Implementation
     Date")."

     (b)  Section 3.1(b)(ii) is amended by adding the following words at the
end thereof and prior to the period:  "and this Agreement."

     (c)  Section 3.1(b) is further amended by adding SECTION 3.1(b)(vii) as
follows:

     "(vii)   The parties shall have agreed on any matters on
              which the parties are required to attempt to reach
              agreement pursuant to SECTIONS 3.1(d) or (e)
              hereof."

     (d)  Section 3.1(c)(ii) is amended by adding the words at the end thereof
and prior to the period:  "and this Agreement."

     (e)  Section 3.1(c) is further amended by adding SECTION 3.1(b)(vi) as
follows:

     "(vi)    The parties shall have agreed on any matters on which
              the parties are required to attempt to reach
              agreement pursuant to SECTIONS 3.1(d) or (e)
              hereof."

     (f)  Section 3.1 is further amended by adding SECTIONS 3.1(d), (e) and (f)
as follows:

     "(d) In the event:

          (i)  A Non-Termination Loss shall have occurred
               with respect to any of the Alliance Vessels (other
               than the RJ PFEIFFER) before the Implementation
               Date; and

          (ii) Such Non-Termination Loss will interfere with
               the commencement or operation of the Service in
               accordance with the Alliance Agreement, the
               Service Schedule and the Transition Plan were the
               Service to begin (or be attempted to be begun) on
               the then-scheduled Implementation Date;

     then Matson shall have the option (which Matson shall exercise by
     notice to APL promptly upon the occurrence of such Non-Termination
     Loss) to defer the Implementation Date to a date later than February
     8, 1996, but not later than March 31, 1996, unless otherwise agreed by
     the parties; provided, whether or not Matson so elects to defer the
                  --------

     Implementation Date, the parties shall promptly upon occurrence of
     such Non-Termination Loss in good faith confer and attempt to agree on
     such changes in the Transition Plan, and in the case of any deferral
     of the Implementation Date such changes in the then-scheduled
     Implementation Date as will (as nearly as practicable) achieve the
     objectives of the Service Schedule and the original unmodified
     Transition Plan."

     "(e) In the event:

          (i)  A Non-Termination Loss shall have occurred
               with respect to the RJ PFEIFFER before the
               Implementation Date; and

          (ii) Such Non-Termination Loss will interfere with
               the commencement or operation of the Service in
               accordance with the Alliance Agreement, the
               Service Schedule and the Transition Plan were the
               Service to begin (or be attempted to be begun) on
               the then-scheduled Implementation Date;

     then APL shall have the option (which APL shall exercise by notice to
     Matson promptly upon the occurrence of such Non-Termination Loss) to
     defer the Implementation Date to a date later than February 8, 1996
     but not later than March 31, 1996 unless otherwise agreed by the
     parties; provided, whether or not APL so elects to defer the
              --------

     Implementation Date, the parties shall promptly upon the occurrence of
     such Non-Termination Loss in good faith confer and attempt to agree on
     such changes in the Transition Plan, and in the case of any deferral
     of the Implementation Date such changes in the then-scheduled
     Implementation Date as will (as nearly as practicable) achieve the
     objectives of the Service Schedule and the original unmodified
     Transition Plan."

     (g)  Sections 3.1(b)(v) and 3.1(c)(v) are amended by deleting the words
"VPA Closing" wherever appearing therein, and by inserting the word
"Implementation" in lieu thereof.

                                  SECTION 9.

     (a)  The words "and Closing" are inserted after the word "Execution" in
the titles to Sections 4.1, 4.1(a), 4.1(b) and 4.1(c) of the Agreement.

     (b)  The words "the 10th day prior to the Implementation Date" are deleted
from Section 4.1(a) of the Agreement, and the following words inserted in lieu
thereof:

     "February 1, 1995, unless otherwise agreed by the parties (the "GAPA
     Closing Date")."

     (c)  The words "and to close the transactions contemplated thereby" are
inserted after the word "GAPA" on the second line of Section 4.1(b) and (c) of
the Agreement.

     (d)  The word "Execution" in the text of Sections 4.1(b), 4.1(b)(i),
4.1(b)(ii), 4.1(c)(i) and 4.1(c)(ii) of the Agreement is deleted, and the word
"Closing" is inserted in lieu thereof.

     (e)  The word "VPA" in Sections 4.1(b)(iii)(B), (C) and (D) and in
Sections 4.1(c)(iii)(B), (C) and (D) is deleted, and the word "GAPA" is
inserted in lieu thereof.

     (f)  Section 4.1(b) is amended by adding new clauses (v) and (vi) thereto
as follows:

          "(v)    Matson GAPA Conditions Satisfied.  Each of the conditions
                  --------------------------------

                  set forth in Section 5 of the GAPA shall have been satisfied
                  or waived in writing by Matson."

          "(vi)   APL and Matson shall have agreed in writing on:  (A) the form
                  and substance of (1) all appendices, exhibits and schedules
                  to the copy of the GAPA which is attached as an Exhibit to
                  this Agreement, (2) all appendices, exhibits and schedules
                  which are not included, or are marked "To Be Completed," in
                  the copy of the Alliance Agreement which is attached as an
                  Exhibit to this Agreement, (3) the manner in which all
                  blanks in the copies of the GAPA, the Alliance Agreement,
                  and in the appendices, exhibits and schedules to the copy of
                  the Alliance Agreement, which are attached as Exhibits to
                  this Agreement, shall be completed, (B) whether the
                  bracketed language in the copies of the GAPA, the Alliance
                  Agreement, and in the appendices, exhibits and schedules to
                  the copy of the Alliance Agreement, which are attached as
                  Exhibits to this Agreement, shall stand as is or be changed
                  or otherwise resolved and, if so, how, (C) all Included
                  Materials to be contained in the Volumes referred to in
                  Exhibit E hereto, and (D) the form and substance of all
                  ---------

                  Ancillary Alliance Agreements which either of them wishes to
                  enter into or identify as such concerning practices and
                  procedures relating to the Alliance Agreement performance."

     (g)  Section 4.1(c) is amended by adding new clauses (iv), (v) and (vi)
thereto as follows:

          "(iv)   APL GAPA Conditions Satisfied.  Each of the conditions set
                  -----------------------------

                  forth in Section 6 of the GAPA shall have been satisfied or
                  waived in writing by APL."

          "(v)    APL and Matson shall have agreed in writing on:  (A) the
                  form and substance of (1) all appendices, exhibits and
                  schedules to the copy of the GAPA which is attached as an
                  Exhibit to this Agreement, (2) all appendices, exhibits and
                  schedules which are not included, or are marked "To Be
                  Completed," in the copy of the Alliance Agreement which is
                  attached as an Exhibit to this Agreement, (3) the manner in
                  which all blanks in the copies of the GAPA, the Alliance
                  Agreement, and in the appendices, exhibits and schedules to
                  the copy of the Alliance Agreement, which are attached as
                  Exhibits to this Agreement, shall be completed, (B) whether
                  the bracketed language in the copies of the GAPA, the
                  Alliance Agreement, and in the appendices, exhibits and
                  schedules to the copy of the Alliance Agreement, which are
                  attached as Exhibits to this Agreement, shall stand as is or
                  be changed or otherwise resolved and, if so, how, (C) all
                  Included Materials to be contained in the Volumes referred
                  to in Exhibit E hereto, and (D) the form and substance of
                        ---------

                  all Ancillary Alliance Agreements which either of them
                  wishes to enter into or identify as such concerning
                  practices and procedures relating to the Alliance Agreement
                  performance."

          "(vi)   The Designated APL Employees (as defined in the GAPA) shall
                  have approved (A) the representations and warranties in the
                  GAPA, and (B) the Schedules to the GAPA."

     (h)  Section 4.2 of the Agreement is deleted in its entirety.

                                 SECTION 10.

     (a)  The text of the first three lines of Section 6.2(a)(i) of the
Agreement is deleted in its entirety, and the following text is inserted in
lieu thereof:

     "Except for retention bonuses (A) change in any manner the rate of
     compensation of any APL Guam Employee,".

     (b)  The text of Section 6.2(a)(iii) is deleted in its entirety, and the
following text is inserted in lieu thereof:

     "Sell, transfer, license or otherwise dispose of, or agree to sell,
     transfer, license or otherwise dispose of, any intellectual property
     which is to be subject to the APL End User License Agreement referred
     to in the GAPA and the VPA in any manner which would preclude APL from
     complying with its obligations under such APL End User License
     Agreement."

                                 SECTION 11.

     (a)  Section 6.5(c) is amended by adding the following new sentence
between the existing third and fourth sentences of that Section:

     "The party entering into the contract shall be responsible for
     administration and supervision of warranty claims under that
     contract."

     (b)  The first sentence of Section 6.5(e) is deleted in its entirety and
the following text is inserted in lieu thereof:

     "Matson and APL agree to share any third-party costs under SECTION
     6.5(b) and (c) hereof, the out-of-pocket costs incurred by the party
     entering into each respective contract in connection with
     administration and supervision of warranty claims under SECTION 6.5(c)
     hereof, together with the Delivery Costs under SECTION 6.5(d) hereof
     as well as any United States customs duties on any of the Requisite
     Work (such costs and any such duties, jointly the "Reimbursable
     Costs")."

                                 SECTION 12.

     Section 6.7 is amended by adding a new Section 6.7(d) as follows:

     "(d) APL warrants to Matson that APL is the owner of the Other
     Shoreside Spares to be transferred to Matson pursuant to SECTION
     6.7(b) hereof, and Matson warrants to APL that Matson will be the
     owner of any of the Other Shoreside Spares withdrawn by APL pursuant
     to SECTION 6.7(c) hereof, in each case free and clear of all liens and
     encumbrances, except for the rights of Waterman Steamship Company in
     certain of the Other Shoreside Spares under the Joint Spares
     Agreement.  EXCEPT AS SET FORTH IN THE PRECEDING SENTENCE, NEITHER
     PARTY MAKES OR HAD MADE ANY REPRESENTATION OR WARRANTY, EXPRESS OR
     IMPLIED, WITH RESPECT TO OR IN CONNECTION WITH ANY OF THE OTHER
     SHORESIDE SPARES, INCLUDING ANY OF THE OTHER SHORESIDE SPARES SUBJECT
     TO THE JOINT SPARES AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY
     REPRESENTATION OR WARRANTY OF TITLE, DESIGN, CONDITION, QUALITY,
     SEAWORTHINESS, MERCHANTABILITY, WORKMANSHIP, SUITABILITY OR FITNESS OR
     ELIGIBILITY FOR ANY TRADE OR VOYAGE OR FOR ANY OTHER USE OR PURPOSE,
     ALL OF WHICH REPRESENTATIONS AND WARRANTIES ARE EXPRESSLY EXCLUDED.
     THERE ARE NO REPRESENTATIONS OR WARRANTIES WHATSOEVER OF EITHER PARTY
     WITH RESPECT TO ANY OF THE OTHER SHORESIDE SPARES, INCLUDING ANY OF
     THE OTHER SHORESIDE SPARES SUBJECT TO THE JOINT SPARES AGREEMENT,
     OTHER THAN AS SET FORTH IN THE FIRST SENTENCE OF THIS SECTION 6.7(D),
     WHICH REPRESENTATIONS AND WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL
     OTHER REPRESENTATIONS AND WARRANTIES OF EITHER PARTY WITH RESPECT TO
     ANY OF THE OTHER SHORESIDE SPARES OR ANY OF THE SPARES SUBJECT TO THE
     JOINT SPARES AGREEMENT, WHETHER STATUTORY, WRITTEN, ORAL OR IMPLIED.
     EACH PARTY ACCEPTS THE OTHER SHORESIDE SPARES AND ANY OF THE OTHER
     SHORESIDE SPARES SUBJECT TO THE JOINT SPARES AGREEMENT AS IS, WHERE IS
     AND WITH ALL FAULTS AND DEFECTS, WHETHER PATENT OR LATENT, AND WITHOUT
     RECOURSE OF ANY KIND TO THE OTHER PARTY ON ACCOUNT OF ANY LOSS, DAMAGE
     OR INJURY SUFFERED OR SUSTAINED ON ACCOUNT OF ANY SUCH FAULT OR
     DEFECT, WHETHER ON ANY THEORY OF NEGLIGENCE, STRICT LIABILITY,
     UNSEAWORTHINESS, BREACH OF CONTRACT OR EXPRESS OR IMPLIED WARRANTY, ON
     WHICH ANY SUCH RECOURSE MIGHT OTHERWISE BE PURSUED."

                                 SECTION 13.

     Section 6.9 of the Agreement, including the brackets around said Section,
is deleted.

                                 SECTION 14.

     The words "[Add provision re no further claim]" in Section 7.3(a)(v) of
the Agreement are deleted, and the following text is inserted in lieu thereof:

     "Upon such refund, Matson shall have no further claim against APL with
     respect to the fee or any lost profits referred to in, or any
     obligation created by, said SECTION 6.8."

                                 SECTION 15.

     Section 7.6 of the Agreement is deleted in its entirety and the following
inserted in lieu thereof:

     "7.6 CDS REPAYMENT DATA AND CALCULATIONS.
          -----------------------------------


          "During the Alliance Period, and for twelve (12) months following
     the end thereof, APL shall provide Matson, or cause Matson to be
     provided with all information relating to gross freight revenues
     generated by the carriage of APL Cargo (as that term is defined in the
     Alliance Agreement) on the Alliance Vessels, whether paid to APL or
     any alliance partner of APL (other than Matson) for any such carriage
     during the Alliance Period, as required by the United States Maritime
     Administration ("MARAD") for CDS repayment computation purposes.
     Matson shall not disclose such information to any other Person,
     including, but not limited to, APL if any such information shall be
     received by Matson from any Person other than APL, except as otherwise
     required by law.  Matson shall request confidential treatment of any
     such information forwarded by it to MARAD under the Freedom of
     Information Act."

                                 SECTION 16.

     (a)  Section 7.3(a)(i) of the Agreement is deleted in its entirety, and
the following inserted in lieu thereof:

          "(i) The reversal of the sale of any Vessel, Vessel Assets, Other
               Shoreside Spares or Guam Sale Assets (as defined in the GAPA)."

     (b)  Section 7.3(a)(ii) of the Agreement is amended by inserting the words
"or New Employee (as defined in the GAPA)" after the word "Officer."

     (c)  Sections 7.3(a)(iv) and (v) of the Agreement are amended by inserting
the words "or under the GAPA" before the word "together" in the first sentence
thereof.

     (d)  The following are added as new clauses (viii) and (ix) of Section
7.3(a) of the Agreement:

     "(viii)   The payment from Matson to APL of any insurance
               proceeds or payment from APL or any other Person
               received by Matson with respect to any loss or
               damages to a Vessel, except to the extent that (A)
               Matson shall be entitled to such proceeds in
               reimbursement of any repairs of such loss or
               damages to a Vessel the cost of which are borne by
               Matson, or (B) Matson shall be obligated under any
               contract for repairs of such loss or damages at
               the time of any such termination, or (C) APL shall
               have failed to reimburse Matson for any uninsured
               portion borne by Matson under clause (A) or with
               respect to which Matson is obligated pursuant to
               clause (B)."

     "(ix)     The refund to APL or its qualified plans of all
               amounts previously transferred to Matson or
               Matson's qualified plans pursuant to Section 4.3
               of the GAPA."

                                 SECTION 17.

     The last sentence of Section 9.1 of the Agreement, including the brackets
around the same, is deleted in its entirety.

                                 SECTION 18.

     Section 9.8 is deleted in its entirety and the following text is
substituted in lieu thereof:

     "Exhibit E sets forth representations and warranties of APL, and the
      ---------

     parties' agreement, concerning materials provided by APL to Matson
     during the course of the negotiation and documentation, and Matson's
     evaluation, of the transactions contemplated by this Agreement and the
     Related Agreements."

                                 SECTION 19.

     The bracketed proviso clause at the end of the third sentence of Section
9.9 of the Agreement is deleted in its entirety, the brackets only are deleted
from the fourth sentence of said Section, and the following is added as a new
sentence at the end of said Section:

     "Neither party shall be liable to the other for any act or omission of
     the party or its employees, agents or independent contractors in the
     course of or in connection with the performance of any Transition
     Services pursuant to this SECTION 9.9, other than any such act or
     omission which is willful or which constitutes a willful refusal to
     provide such Transition Services required to be provided under this
     SECTION 9.9."

                                 SECTION 20.

     The definition of "Material Guam Change" in Appendix 1 to the Agreement is
deleted in its entirety and the following text inserted in lieu thereof:

     "Material Guam Change" means any of the following:  (A) total Guam
     revenues for the full calendar year 1995 shall be less than $67
     million (as reported in APL's Star Database), or (B) at any time prior
     to and including December 31, 1995, APL's market share in Guam (based
     on total FEUs of APL and Sea-Land) for 1995 on a year-to-date basis
     shall decline below forty-four percent (44%) as determined by APL in
     Guam utilizing data provided by the Port of Guam and calculated on a
     basis consistent with the 1995 market share data previously provided
     to Matson by APL, or (C) at any time after December 31, 1995, either
     (i) total Guam revenues for the 365-day period ending on the date the
     determination of a Material Guam Change is made shall be less than $67
     million (as reported in APL's Star Database), or (ii) APL's market
     share in Guam (based on total FEUs of APL and Sea-Land) for the 365-
     day period ending on such a determination date shall be less than
     forty-four percent (44%) as determined by APL in Guam utilizing data
     provided by the Port of Guam and calculated on a basis consistent with
     the 1995 market share data previously provided to Matson by APL."

                                 SECTION 21.

     The brackets around the definition of "ODS" in Appendix 1 to the Agreement
are deleted.

                                 SECTION 22.

     (a)  The following definitions are inserted in Appendix 1 to the Agreement
in alphabetical order:

     "    "SECOND VPA CLOSING DATE" has the meaning set forth in SECTION
          1.2(a) of this Agreement."

          "NON-TERMINATION LOSS" means any loss, damage, casualty,
          breakdown or inability to operate in a manner consistent with
          recent operating history which (i) in the case of any such event
          or condition affecting any Alliance Vessel other than the RJ
          PFEIFFER, is not described in SECTIONS 7.1(a)(ii)(A) or (B) or
          7.2(a)(ii)(A) or (B) hereof, or (ii) in the case of any such
          event or condition affecting the RJ PFEIFFER, cannot be repaired
          by Matson prior to March 31, 1996.

          "TRANSITION PLAN" has the meaning specified in the Alliance
          Agreement.

          "SERVICE SCHEDULE" has the meaning specified in the Alliance
          Agreement."

     (b)  The term "GAPA Execution Date" in Appendix 1 to the Agreement is
deleted in its entirety.

                                 SECTION 23.

     (a)  The title of item 2 of Schedule 1(a) to the Agreement is deleted in
its entirety, and the words "PRESIDENT GRANT" inserted in lieu thereof, and the
title to item 4 of said Schedule is deleted in its entirety, and the words
"PRESIDENT HOOVER" inserted in lieu thereof.

     (b)  The bracketed phrase "[additional on deck reefer receptacles]" is
added at the end of item 2 of Schedule 1(a) to the Agreement.

                                 SECTION 24.

     SCHEDULE 1(b) to the Agreement is deleted in its entirety and the
following is inserted in lieu thereof:

                                "SCHEDULE 1(B)
                                 -------------
                                                                         
                         RESPONSIBILITY AND SCHEDULE
                         ---------------------------

                                       ANTICIPATED    ANTICIPATED WORK
VESSEL                RESPONSIBILITY   WORK LOCATION  SCHEDULE

PRESIDENT MONROE      APL              Pusan          1/6-8/96

PRESIDENT WASHINGTON  APL              Pusan          1/20-22/96

PRESIDENT LINCOLN     APL              Pusan          1/27-29/96

PRESIDENT GRANT       APL              Far East       2/22-3/12/96

R.J. PFEIFFER         Matson           Far East       3/12-4/15/96

PRESIDENT HOOVER      APL              Far East       1/31-2/14/96"


                                 SECTION 25.

     Except as amended by this Amendment No. 5, all other terms, conditions and
covenants of the Agreement are hereby confirmed by the parties hereto and
remain unchanged and in full force and effect.  From and after the date hereof,
all references to the Agreement in the Agreement (including references therein
to "this Agreement," "hereof," "hereto" or "hereunder") and in any of the
Related Agreements, shall be deemed to be references to the Agreement as
amended by this Amendment No. 5.

                                 SECTION 26.

     This Amendment No. 5 may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counter-
parts shall together constitute but one and the same instrument.

     IN WITNESS WHEREOF, Matson and APL have caused this Amendment No. 5 to be
duly executed as of the day and year first above written.


                                           MATSON NAVIGATION COMPANY, INC.


                                           By
                                             -------------------------------
                                             Name:
                                             Title:



                                           AMERICAN PRESIDENT LINES, LTD.


                                           By
                                             -------------------------------
                                             Name:
                                             Title:

<PAGE>                                             


                               AMENDMENT NO. 6

                         DATED AS OF JANUARY 31, 1996

                                BY AND BETWEEN

                       MATSON NAVIGATION COMPANY, INC.

                                     AND

                        AMERICAN PRESIDENT LINES, LTD.

                                    TO THE

                            AGREEMENT TO IMPLEMENT
                         THE EXECUTION AND CLOSING OF
                 VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND
                        ALLIANCE SLOT HIRE AGREEMENT,
                           DATED SEPTEMBER 22, 1995



<PAGE>




                               AMENDMENT NO. 6
                                    TO THE
                            AGREEMENT TO IMPLEMENT
                         THE EXECUTION AND CLOSING OF
                 VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND
                         ALLIANCE SLOT HIRE AGREEMENT
                         ----------------------------



     THIS AMENDMENT NO. 6 ("Amendment No. 6") to the AGREEMENT TO IMPLEMENT THE
EXECUTION AND CLOSING OF VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND ALLIANCE
SLOT HIRE AGREEMENT (as originally executed on September 22, 1995, and as
previously amended on October 10, October 30, November 30, 1995, December 8,
1995 and December 15, 1995, the "Agreement") is entered into as of this 31st
day of January, 1996 by and between MATSON NAVIGATION COMPANY, INC., a Hawaii
corporation ("Matson") and AMERICAN PRESIDENT LINES, LTD., a Delaware
corporation ("APL").  Capitalized terms used in this Amendment No. 6 and not
otherwise defined herein have the meanings specified in Appendix 1 to the
Agreement.

                                  SECTION 1.

     The reference to "Recital C" in the definition of "Guam Sale Assets" in
Appendix A to the Agreement is changed to "Recital D".

                                  SECTION 2.

     Each of Sections 3.1(b) and 3.1(c) of the Agreement is amended by adding
the following clause at the end thereof, which clause shall be designated
clause "(viii)" in the case of Section 3.1(b) and clause "(vii)" in the case of
Section 3.1(c):

     "APL and Matson shall have agreed in writing on:  (A) the form and
     substance of (1) all appendices, exhibits and schedules which are not
     included or are marked "To Be Completed" in the copy of the Alliance
     Agreement which is attached as an Exhibit to this Agreement, and (2)
     the manner in which all blanks in the copy of the Alliance Agreement,
     and in the appendices, exhibits and schedules to the copy of the
     Alliance Agreement, which are attached as Exhibits to this Agreement,
     shall be completed, (B) whether the bracketed language in the copy of
     the Alliance Agreement, and in the appendices, exhibits and schedules
     to the copy of the Alliance Agreement, which are attached as Exhibits
     to this Agreement, shall stand as is or be changed or otherwise
     resolved and, if so, how, (C) all Included Materials to be contained
     in the Volumes referred to in Exhibit E hereto, and (D) the form and
                                   ---------
     substance of all Ancillary Alliance Agreements which either of them
     wishes to enter into or identify as such concerning practices and
     procedures relating to the Alliance Agreement performance."

                                  SECTION 3.

     The text of each of Sections 4.1(b)(vi) and 4.1(c)(v) of the Agreement is
amended and restated in its entirety to read as follows:

     "APL and Matson shall have agreed in writing on:  (A) the form and
     substance of (1) all appendices, exhibits and schedules to the copy of
     the GAPA which is attached as an Exhibit to this Agreement, and (2)
     the manner in which all blanks in the copy of the GAPA which is
     attached as an Exhibit to this Agreement shall be completed, and (B)
     whether the bracketed language in the copy of the GAPA which is
     attached as an Exhibit to this Agreement shall stand as is or be
     changed or otherwise resolved and, if so, how."

                                  SECTION 4.

     Section 6.5 of the Agreement is amended by inserting the words "and the
R.J. Pfeiffer" after the word "Vessels" in the first paragraph thereof, and by
changing all references to "Vessel" or "Vessels" in clauses (a), (b) and (c)
thereof to "vessel" and "vessels" respectively.

                                  SECTION 5.

     Except as amended by this Amendment No. 6, all other terms, conditions and
covenants of the Agreement are hereby confirmed by the parties hereto and
remain unchanged and in full force and effect.  From and after the date hereof,
all references to the Agreement in the Agreement (including references therein
to "this Agreement," "hereof," "hereto" or "hereunder") and in any of the
Related Agreements, shall be deemed to be references to the Agreement as
amended by this Amendment No. 6.

                                  SECTION 6.

     This Amendment No. 6 may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

                           [SIGNATURE PAGE FOLLOWS]




     IN WITNESS WHEREOF, Matson and APL have caused this Amendment No. 6 to be
duly executed as of the day and year first above written.


                                        MATSON NAVIGATION COMPANY, INC.


                                        By
                                          -------------------------------
                                          Name:
                                          Title:



                                        AMERICAN PRESIDENT LINES, LTD.


                                        By
                                          -------------------------------
                                          Name:
                                          Title:

<PAGE>

                               AMENDMENT NO. 7

                         DATED AS OF FEBRUARY 8, 1996

                                BY AND BETWEEN

                       MATSON NAVIGATION COMPANY, INC.

                                     AND

                        AMERICAN PRESIDENT LINES, LTD.

                                    TO THE

                            AGREEMENT TO IMPLEMENT
                         THE EXECUTION AND CLOSING OF
                 VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND
                        ALLIANCE SLOT HIRE AGREEMENT,
                           DATED SEPTEMBER 22, 1995


<PAGE>

                               AMENDMENT NO. 7
                                    TO THE
                            AGREEMENT TO IMPLEMENT
                         THE EXECUTION AND CLOSING OF
                 VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND
                         ALLIANCE SLOT HIRE AGREEMENT
                         ----------------------------



     THIS AMENDMENT NO. 7 ("Amendment No. 7") to the AGREEMENT TO IMPLEMENT THE
EXECUTION AND CLOSING OF VESSEL PURCHASE, PURCHASE OF GUAM ASSETS AND ALLIANCE
SLOT HIRE AGREEMENT (as originally executed on September 22, 1995, and as
previously amended on October 10, October 30, November 30, 1995, December 8,
December 15, 1995 and January 31, 1996, the "Agreement") is entered into as of
this 8th day of February, 1996 by and between MATSON NAVIGATION COMPANY, INC.,
a Hawaii corporation ("Matson") and AMERICAN PRESIDENT LINES, LTD., a Delaware
corporation ("APL").  Capitalized terms used in this Amendment No. 7 and not
otherwise defined herein have the meanings specified in Appendix 1 to the
Agreement.

                                  SECTION 1.

     The Exhibits to the Agreement are amended as follows:

     (a)  Exhibit A to the Agreement is amended by adding thereto Amendment
          No. 1 to the Vessel Purchase Agreement attached hereto as
          Exhibit A; and

     (b)  Exhibits C, D and E to the Agreement are amended and restated to
          read in their entirety as set forth, respectively, in Exhibits C,
          D and E to this Amendment.

                                  SECTION 2.

     Section 6.7 of the Agreement is amended by:  (a) deleting the words "The
shoreside spare parts in APL's possession" in the third sentence thereof and
inserting in lieu thereof of the words "The portion of the shoreside spare
parts in APL's possession which APL desires to sell to Matson and Matson
desires to purchase from APL,"; (b) deleting the words "Within ten (10) days
prior to the Implementation Date" in the fifth sentence of clause (a) and
inserting in lieu thereof the words "By March 31, 1996," and by adding to the
end of said fifth sentence the words "as at February 8, 1996"; (c) deleting the
words "On or about the time of transfer of title" in clause (b) and inserting
in lieu thereof the words "Prior to March 31, 1996,"; and (d) changing the
reference to "Section 6.7(d)" in clause (b) to "Section 6.7(c)."



                                  SECTION 3.

     The parties hereto acknowledge and agree that, the Stevedoring and
Terminal Services Agreement between Eagle Marine Services, Ltd., a Delaware
corporation, and Matson (Port of Los Angeles) dated as of February 1, 1996
(the "APL Terminal Agreement"), and the Stevedoring and Terminal Services
Agreement between Matson Terminals, Inc., a Hawaii corporation, and APL (Port
of Oakland) dated as of February 1, 1996 (the "Matson Terminal Agreement") were
entered into pursuant to that certain Alliance Slot Hire Agreement (as
originally executed and as amended from time to time in accordance with its
terms (the "Alliance Agreement")) and are the APL Terminal Agreement and the
Matson Terminal Agreement, respectively, referred to and defined in the
Alliance Agreement and that each (as originally executed and as amended from
time to time in accordance with their respective terms) is an Alliance
Agreement within the meaning of, and for all purposes relating to, the Alliance
Agreement.

                                  SECTION 4.

     Except as amended by this Amendment No. 7, all other terms, conditions and
covenants of the Agreement are hereby confirmed by the parties hereto and
remain unchanged and in full force and effect.  From and after the date hereof,
all references to the Agreement in the Agreement (including references therein
to "this Agreement," "hereof," "hereto" or "hereunder") and in any of the
Related Agreements, shall be deemed to be references to the Agreement as
amended by this Amendment No. 7.

                                  SECTION 5.

     This Amendment No. 7 may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counter-
parts shall together constitute but one and the same instrument.

     IN WITNESS WHEREOF, Matson and APL have caused this Amendment No. 7 to be
duly executed as of the day and year first above written.

                                      MATSON NAVIGATION COMPANY, INC.


                                      By
                                        ---------------------------------
                                        Name:
                                        Title:


                                      AMERICAN PRESIDENT LINES, LTD.


                                      By
                                        ---------------------------------
                                        Name:
                                        Title:




Exhibit 10.a.(xxxi)


                          VESSEL PURCHASE AGREEMENT


                                BY AND BETWEEN


                       MATSON NAVIGATION COMPANY, INC.


                                     AND


                        AMERICAN PRESIDENT LINES, LTD.


                           DATED DECEMBER 20, 1995



<PAGE>
                          VESSEL PURCHASE AGREEMENT
                          -------------------------



     THIS VESSEL PURCHASE AGREEMENT ("Purchase Agreement") is entered into as
of December 20, 1995 by and between MATSON NAVIGATION COMPANY, INC., a Hawaii
corporation ("Matson"), and AMERICAN PRESIDENT LINES, LTD., a Delaware
corporation ("APL").

                                   RECITALS
                                   --------


     A.   Matson and APL are party to that certain Agreement to Implement the
Execution and Closing of Vessel Purchase, Purchase of Guam Assets and Alliance
Slot Hire Agreement, dated September 22, 1995 (as originally executed and as
amended, modified or supplemented heretofore or hereafter in accordance with
its terms, the "Implementation Agreement").  Pursuant to the Implementation
Agreement, APL and Matson are entering into this Purchase Agreement.

     B.   APL is the owner of three (3) United States flag C-9 containerships:
PRESIDENT LINCOLN, Official No. 651627, PRESIDENT WASHINGTON, Official No.
653424, and PRESIDENT MONROE, Official No. 655397, and three (3) United States
flag C-8 containerships:  PRESIDENT HOOVER, Official No. 530137, PRESIDENT
GRANT, Official No. 530138, and PRESIDENT TYLER, Official No. 530140.
  Each of
said six (6) containerships, together with the below-defined Vessel Assets
appertaining or belonging thereto, is individually referred to herein as a
"Vessel" and all of the same are collectively referred to herein as the
"Vessels."

     C.   APL has agreed to sell the Vessels to Matson and Matson has agreed to
purchase the Vessels from APL, subject to the terms and conditions of this
Purchase Agreement, including Section 13 hereof.  The parties have further
agreed that the direct conveyance of some of the Vessels from APL to Matson
pursuant to this Purchase Agreement shall constitute a conveyance of such
Vessels by APL to a qualified intermediary, and the transfer of such Vessels
from such qualified intermediary to Matson, if APL elects to effect a like-kind
exchange transaction, pursuant to SECTION 13 hereof.

     NOW, THEREFORE, in consideration of the recitals and of the respective
covenants, representations and agreements herein contained, and intending to be
legally bound, Matson and APL agree as follows:

                                  SECTION 1.
                       SALE AND PURCHASE OF THE VESSELS

     In reliance on the representations, warranties and covenants and subject
to the terms and conditions contained in this Purchase Agreement and in the
Implementation Agreement, APL hereby agrees to sell, convey, transfer and
deliver to Matson each of the Vessels, and Matson hereby agrees to purchase
each of the Vessels from APL.  As employed in this Purchase Agreement, the
following terms shall have the following meanings:

      (a) "VESSEL ASSETS" means all of the following, other than the Excluded
          Assets:  (i) all engines, boilers, machinery, masts, boats, anchors,
          cables, chains, tackle, apparel, furniture, capstans, outfit, tools,
          pumps, pumping and other equipment, gear, lashings (including a full
          complement of all components of container lashing equipment
          sufficient in number to carry a full load of 40' containers),
          furnishings, appliances, fittings and other personal property
          appertaining or belonging to any of the Vessels referred to in
          Recital B hereof and all spares and replacement parts, in each case
          which are on board each such Vessel to the extent required by Section
          6(c) of the below defined Bareboat Charter at the time the Vessel is
          redelivered to by Matson by APL in accordance with the provisions of
          said Bareboat Charter, (ii) the two shoreside propellers and two
          shoreside propeller shafts identified in Exhibit A attached hereto,
          (one such propeller and shaft relating to the C-8s and the other to
          the C-9s), (iii) all plans, drawings and other technical documents,
          logs, manuals, instruction books relating to each such Vessel, and
          (iv) certain intellectual property or rights with respect thereto
          relating to each such Vessel which are listed in Schedule 1(a)
          attached hereto and which shall be sold, licensed or otherwise
          transferred to Matson in accordance with the APL End User License
          Agreement referred to in SECTION 4.3 hereof.

      (b) "EXCLUDED ASSETS" means:  (i) any and all consumable, expendable or
          subsistence stores, slop chest, fuel oil or diesel oil for a Vessel,
          whether on board or ashore, (ii) all personal property and effects of
          the Master, officers or crew of any Vessel, and (iii) all other
          shoreside spares identified in the inventory agreed to by the parties
          prior to the date hereof to be purchased separately by Matson
          pursuant to the Implementation Agreement, and (iv) any software or
          other intellectual property other than the intellectual property or
          rights to be sold, licensed or otherwise transferred to Matson in
          accordance with the APL End User License Agreement.

                                  SECTION 2.
                                PURCHASE PRICE

     The aggregate purchase price for the Vessels is ONE HUNDRED SIXTY MILLION
FIVE HUNDRED THOUSAND UNITED STATES DOLLARS (US$160,500,000.00) (the "Purchase
Price").  The parties agree that the Purchase Price is to be allocated among
the Vessels as previously agreed by the parties in writing.  The Purchase Price
shall be paid by Matson to APL (or to the qualified intermediary if APL elects
to effect a like-kind exchange pursuant to SECTION 13 hereof), at such
appraised value for each Vessel, at the Closings (as defined in SECTION 3
below) by wire transfer free of bank charges to an account or accounts desig-
nated in writing by APL, such designation not to be later than ten (10) days
prior to the Closing Dates (as defined in SECTION 3 below).

                                  SECTION 3.
                                   CLOSING

     The purchase and sale of the Vessels shall take place at  closings
(individually, a "Closing" and collectively, the "Closings") to be held on the
First VPA Closing Date (as defined in the Implementation Agreement) and each
subsequent VPA Closing Date, as such dates are determined pursuant to the
Implementation Agreement (individually, a "Closing Date" and collectively, the
"Closing Dates") at the offices of Lillick & Charles, Two Embarcadero Center,
Suite 2700, San Francisco, California 94111, or at such other place or places
as APL and Matson may agree.  On the First VPA Closing Date, the parties shall,
subject to the conditions set forth therein and in the Implementation Agree-
ment, enter into the Interim Bareboat Charter Agreement, a form of which is
attached hereto as Exhibit D (the "Bareboat Charter").
          
                                                       
                                  SECTION 4.
                          DELIVERIES AT THE CLOSING

     4.1  DELIVERIES BY APL.
          -----------------

     At each Closing, APL shall deliver to Matson, in each case relating to the
Vessel or Vessels to be transferred at such Closing, the following in the form
reasonably acceptable to Matson, duly executed and acknowledged as appropriate:

      (a) Valid and sufficient bills of sale in recordable form (the "Bills of
          Sale") transferring title to each of such Vessels from APL to Matson,
          with warranties of title and free from all mortgages, pledges, liens,
          charges, leases, claims and other encumbrances of any kind (whether
          recorded or unrecorded) (collectively, "Liens"), other than (i) any
          Construction-Differential Subsidy and Capital Construction Fund
          restrictions imposed by law, regulation or contract, (ii) any trading
          restrictions imposed by law, regulation or contract, (iii) those
          Liens described in items 1 and 2 of Exhibit B attached hereto, and
          (iv) any Liens created by Matson (all such items referred to in the
          preceding clauses (i) through (iv) being referred to herein
          collectively, as "Permitted Liens").  Such warranties in the Bills of
          Sale to Matson shall survive the delivery of the Bills of Sale and
          transfer title to such Vessels to Matson.

      (b) A Certificate of Ownership of Vessel (United States Coast Guard
          ("USCG") Form 1330) or certified copy of the USCG abstract of title
          for each of such Vessels showing APL as the owner of the Vessels and
          showing no encumbrances of record.

      (c) Except to the extent the same is unavailable due to a Non-Termination
          Loss (as defined in SECTION 14.9 hereof), a current confirmation of
          class for each of such Vessels and their machinery and equipment
          issued by the American Bureau of Shipping ("ABS") showing each of the
          Vessels to be classed Maltese Cross A1(E) (hull), Maltese Cross AMS
          (machinery) and, in the case of the C-9 Vessels, Maltese Cross ACCU
          (automated equipment), free of any outstanding recommendations.

      (d) Copies of certificates of insurance, policies or cover notes
          evidencing the addition of Matson as an assured under the insurances
          relating to such Vessels referred to in Section 13 of the Bareboat
          Charter and referred to in SECTION 6 hereof, together with loss
          payable clauses required by Section 13 of the Bareboat Charter.

      (e) Except to the extent the same is unavailable due to a Non-Termination
          Loss (as defined in SECTION 14.9 hereof), a current inspection
          certificate of the USCG for each of such Vessels and evidence of no
          outstanding citations or requirements.

      (f) To the extent not previously delivered to Matson and in APL's
          possession or control, copies of all certificates of regulatory
          bodies, plans, drawings and other technical documents, logs and
          instructional manuals for each of such Vessels.

      (g) Copies of current radio and radio telegraphic licenses for each of
          such Vessels.



     4.2  DELIVERIES BY MATSON AND APL.
          ----------------------------                              

     At each Closing, Matson and APL shall execute and deliver to the other (a)
a Certificate of Delivery and Acceptance for each of the Vessels transferred at
such Closing, showing date, time and place of delivery, in the form attached
hereto as Exhibit C, and (b) an appropriate addendum (the "CDS Addendum")
          ---------

whereby Matson is substituted for APL, and APL is released as an obligor, under
the Construction-Differential Contract (or the Title V Contract) applicable to
each of such Vessels to the extent agreed by the United States Maritime
Administration ("MARAD"), and (c) on the First VPA Closing Date, the APL End
User License Agreement (as defined in SECTION 4.3 hereof) in the form attached
hereto as Exhibit 4.3, which shall become effective as to the property subject
          -----------

thereto as to each Vessel in accordance with the terms thereof.

     4.3  APL VESSEL SOFTWARE.
          -------------------

     APL will grant Matson a non-exclusive license to use the APL proprietary
software located on the Vessels as listed on Schedule 1(a)(A) (the "APL
                                             ----------------

Proprietary Vessel Software") attached hereto.  APL will obtain consent to a
transfer of the licenses for third-party software located on the Vessels, as
listed in Schedule 1(a)(B) (the "APL Licensed Vessel Software") attached 
hereto, at no additional cost to Matson.  APL will transfer to Matson the
shrinkwrap software listed on Schedule 1(a)(C) (the "APL Miscellaneous Vessel
Software") attached hereto.  Matson will pay all associated costs and ongoing
maintenance for the APL Licensed Vessel Software and the APL Miscellaneous
Vessel Software. APL will provide Matson with any manuals corresponding to the
APL Proprietary Vessel Software, APL Licensed Vessel Software and APL
Miscellaneous Vessel Software.  All the foregoing is provided in accordance
with and subject to the license terms attached hereto as Exhibit 4.3 (the "APL
End User License Agreement").

                                  SECTION 5.
                            CONDITIONS TO CLOSING

     5.1  CONDITIONS TO MATSON'S OBLIGATIONS.
          ----------------------------------

     The obligation of Matson to purchase each Vessel to be transferred on each
Closing Date shall be subject to the following conditions having been satis-
fied, or waived in writing by Matson, on or before such Closing Date:

      (a) APL shall have delivered to Matson each of the items specified in
          SECTION 4 of this Purchase Agreement with respect to such Vessel.

      (b) Each of the conditions set forth in Section 1.2(b) of the
          Implementation Agreement for the benefit of Matson shall have been
          satisfied.

      (c) Each of the representations and warranties of APL set forth in
          SECTION 7 of this Purchase Agreement shall be true and correct in
          all material respects as of the Closing Date.

      (d) APL shall have performed all of its obligations under SECTION 9 of
          this Purchase Agreement.

      (e) The United States of America shall have entered into the CDS Addendum
          applicable to such Vessel, in form and substance reasonably
          satisfactory to Matson.

      (f) As of each Closing Date, such Vessel shall not be an actual,
          constructive, agreed to or compromised total loss, there shall have
          been no other loss, damage or casualty to any Vessel which is not
          covered by insurance (except applicable deductibles) or which does
          not constitute a Non-Termination Loss, and such Vessel shall, except
          to the extent it has suffered such a Non-Termination Loss, be in the
          same condition as it was in at its Vessel Inspection Date (as defined
          below), ordinary wear and tear not affecting class excepted.  If
          there has been any such Non-Termination Loss covered by insurance
          which has not been fully repaired prior to a Closing Date, APL shall
          concurrently with the related Closing, assign to Matson all insurance
          proceeds relating thereto (except to the extent of amounts allocable
          to repairs already performed by APL or for which APL is obligated to
          pay), and shall pay to Matson any then applicable deductible.  As
          used herein, "Vessel Inspection Date" means, as to a particular
          Vessel, the date on which such Vessel was previously inspected by or
          on behalf of Matson as set forth below:

          VESSEL                   INSPECTION DATE
          ----------------------------------------


          PRESIDENT LINCOLN        6/12 - 6/15, 1995
          PRESIDENT WASHINGTON     6/5  - 6/8,  1995
          PRESIDENT MONROE         5/22 - 6/25, 1995
          PRESIDENT HOOVER         6/18 - 6/23, 1995
          PRESIDENT GRANT          5/28 - 5/27, 1995
          PRESIDENT TYLER          6/4  - 6/9,  1995

          At any time or times prior to any Closing upon reasonable notice to
          APL and without an undue delay to any Vessel to be transferred at
          such Closing, Matson shall have the right to conduct such additional
          inspections of any such Vessel (excluding drydocking) as it deems
          reasonably necessary in order to determine the satisfaction of the
          terms of this SECTION 5.1(f).

      (g) The Vessels are, except for Permitted Liens, unrestricted and
          specifically qualified to operate in the United States domestic,
          coastwise and foreign trades.

      (h) APL shall have obtained and delivered to Matson for the  third-party
          software listed in Schedule 2.1(a)(B) attached hereto, the consents
                             ------------------

          which APL is required to obtain under the APL End User License
          Agreement.

      (i) The USCG shall have redocumented such Vessel in the name of Matson
          for operation in the United States coastwise and foreign trades.

      (j) Matson shall have received an opinion of counsel for APL reasonably
          satisfactory to Matson, that the Exchangor (as defined in that
          certain Exchange Agreement between APL and Chicago Deferred Exchange
          Corporation, dated       , 1995) shall, upon completion of the tax-
          free exchange, referred to in SECTION 13 hereof, retain no right,
          title or interest in or to the Vessels subject to such exchange.
          Counsel for APL shall be entitled to rely conclusively, when giving
          such opinion, upon correspondence from the Exchangor concerning its
          right, title and interest in and to the Vessel upon completion of the
          tax-free exchange referred to herein.

      (k) Matson shall have received a certificate of APL executed on its
          behalf by the president or any vice president of APL stating whether
          or not the Vessel is in compliance with SECTION 5.1(f) hereof, and,
          if not, to the extent known to APL, the particulars and details of
          any non-compliance therewith.

     5.2  CONDITIONS TO APL'S OBLIGATIONS.
          -------------------------------

     The obligation of APL to sell each Vessel to be transferred on each
Closing Date shall be subject to the following conditions having been satis-
fied, or waived in writing by APL, on or before such Closing Date:

      (a) Matson shall have paid the portion of the Purchase Price allocable to
          such Vessel to APL, or to the qualified intermediary to the extent
          that APL elects to effect a like-kind exchange pursuant to SECTION 13
          hereof, in accordance with SECTION 2 of this Purchase Agreement.
      (b) Matson shall have delivered to APL the items specified in SECTION 4.2
          of this Purchase Agreement with respect to such Vessel.

      (c) Each of the conditions set forth in Section 1.2(c) of the
          Implementation Agreement for the benefit of APL shall have been
          satisfied.

      (d) As of each Closing Date, the United States of America shall have
          entered into the CDS Addendum, in form and substance reasonably
          satisfactory to APL.

      (e) The representation and warranty of Matson set forth in SECTION 7 of
          this Purchase Agreement shall be true and correct in all material
          respects as of each Closing Date.

      (f) The USCG shall have redocumented such Vessel in the name of Matson
          for operation in the United States coastwise and foreign trades.

      (g) As of each Closing Date, such Vessel shall not be an actual,
          constructive, agreed to or compromised total loss, there shall have
          been no other loss, damage or casualty to any Vessel which is not
          covered by insurance (except applicable deductibles) or which does
          not constitute a Non-Termination Loss, and such Vessel shall, except
          to the extent it has suffered such a Non-Termination Loss, and in the
          same condition as it was in at its Vessel Inspection Date, ordinary
          wear and tear not affecting class excepted.  If there has been any
          such Non-Termination Loss covered by insurance which has not been
          fully repaired prior to a Closing Date, APL shall concurrently with
          the related Closing, assign to Matson all insurance proceeds relating
          thereto (except to the extent of amounts allocable to repairs already
          performed by APL, for which APL is obligated to pay), and shall pay
          to Matson any then applicable deductible.

      (h) The Vessels are, except for Permitted Liens, unrestricted and
          specifically qualified to operate in the United States domestic,
          coastwise and foreign trades.     
                                        

     5.3  TRANSACTIONS DEEMED SIMULTANEOUS.
          --------------------------------

     All deliveries and payments referred to in SECTIONS 2 and 4 of this
Purchase Agreement with respect to any Closing shall be deemed to have occurred
simultaneously and no delivery or payment shall be considered to have been
finally made until all have been completed.  Upon each Closing, all conditions
precedent to the obligations of each of the parties as specified in SECTION 5.1
and SECTION 5.2 with respect to such Closing shall irrevocably be deemed to
have been either satisfied or waived; provided, however, that nothing in this
SECTION 5.3 or elsewhere in this Purchase Agreement regarding conditions shall
be deemed or interpreted in any way to prohibit or impair the survival of all
warranties and representations set forth in SECTION 7 hereof pursuant to the
provisions thereof, or the survival of all warranties and representations set
forth in Section 5 of the Implementation Agreement pursuant to the provisions
thereof.

                                  SECTION 6.
          PASSAGE OF TITLE, DELIVERY OF VESSELS AND BAREBOAT CHARTER

     On each Closing Date, title to each of the Vessels to be transferred on
such Closing Date shall be transferred by APL to Matson while each Vessel is in
international waters.

                                  SECTION 7.
                    WARRANTIES AND REPRESENTATIONS OF APL

      (a) APL hereby makes the following representations and warranties to
          Matson, which representations and warranties shall survive each
          Closing:

          (i)    On each Closing Date and immediately prior to the sale, APL
                 was the sole owner of and had sole title to such Vessels to
                 be transferred on that date, and such Vessels were
                 documented in the name of APL under the laws of the United
                 States.

          (ii)   On each Closing Date, each of the Vessels to be transferred
                 on that date will be free and clear of any Liens, except for
                 Permitted Liens.

          (iii)  On each Closing Date, APL is a citizen of the United States of
                 America within the meaning of Section 802 of Title 46,
                 United States Code Annotated and is qualified to operate the
                 Vessels throughout the Bareboat Charter term of each Vessel
                 in the trades in which the Vessels will be engaged
                 throughout such term.
                    
      (b) Matson hereby makes the following representation and warranty to APL,
          which representation and warranty shall survive each Closing.  On 
          each Closing Date, Matson is a citizen of the United States with in
          the meaning of Section 802 of Title 46, United States Code Annotated.

                                  SECTION 8.
                 DISCLAIMER OF WARRANTIES AND REPRESENTATIONS

     EXCEPT AS EXPRESSLY SET FORTH IN SECTION 7 HEREOF, APL HAS NOT MADE AND
DOES NOT MAKE (NOR SHALL APL BE DEEMED TO HAVE MADE OR TO MAKE BY VIRTUE OF THE
SALE OF THE VESSELS AND VESSEL ASSETS TO MATSON OR ANY OTHER FACT OR
CIRCUMSTANCE WHATSOEVER), TO MATSON OR ANY OTHER PERSON ANY REPRESENTATION OR
WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE VESSELS, OR ANY OF THE
VESSEL ASSETS OR ANY OF THE SOFTWARE AND INTELLECTUAL PROPERTY DESCRIBED IN
SCHEDULE 1(A) ATTACHED HERETO, INCLUDING, WITHOUT LIMITATION, ANY
- -------------

REPRESENTATIONS OR WARRANTIES OF TITLE, DESIGN, CONDITION, QUALITY,
SEAWORTHINESS, MERCHANTABILITY, WORKMANSHIP, SUITABILITY OR FITNESS OR
ELIGIBILITY FOR ANY TRADE OR VOYAGE OR FOR ANY OTHER USE OR PURPOSE, ALL OF
WHICH REPRESENTATIONS AND WARRANTIES ARE EXPRESSLY EXCLUDED.  THERE ARE NO
REPRESENTATIONS OR WARRANTIES WHATSOEVER OF APL WITH RESPECT TO ANY OF THE
VESSELS, OR ANY OF THE VESSEL ASSETS OR ANY OF THE SOFTWARE OR INTELLECTUAL
PROPERTY DESCRIBED IN SCHEDULE 1(A) ATTACHED HERETO, OTHER THAN THE
                      -------------

REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN SECTION 7 HEREOF, WHICH
REPRESENTATIONS AND WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER
REPRESENTATIONS AND WARRANTIES OF APL WITH RESPECT TO ANY OF THE VESSELS OR ANY
OF THE VESSEL ASSETS, WHETHER STATUTORY, WRITTEN, ORAL OR IMPLIED.  SUBJECT TO
THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN SECTION 7 HEREOF,
MATSON SHALL PURCHASE AND ACCEPT ALL OF THE VESSELS, ALL OF THE SOFTWARE AND
INTELLECTUAL PROPERTY DESCRIBED IN SCHEDULE 1(A) ATTACHED HERETO AND ALL OF THE
                                   -------------

VESSEL ASSETS AS IS, WHERE IS AND WITH ALL FAULTS AND DEFECTS, WHETHER PATENT 
OR LATENT, AND WITHOUT RECOURSE TO APL ON ACCOUNT OF ANY LOSS, DAMAGE OR INJURY
SUFFERED OR SUSTAINED BY MATSON OR ANY OTHER PERSON ON ACCOUNT OF ANY SUCH 
FAULT OR DEFECT WHETHER ON ANY THEORY OF NEGLIGENCE, STRICT LIABILITY,
UNSEAWORTHINESS, BREACH OF CONTRACT OR EXPRESS OR IMPLIED WARRANTY, ON WHICH 
ANY SUCH RECOURSE MIGHT OTHERWISE BE PURSUED.  NOTHING IN THIS SECTION 8 SHALL 
LIMIT OR ALTER ANY OF THE RIGHTS OF APL OR MATSON UNDER SECTION 8 OF THE GUAM 
ASSET PURCHASE AGREEMENT.

                                  SECTION 9.
                          MAINTENANCE OF THE VESSELS

     APL agrees that from the date of this Purchase Agreement until each 
Closing Date, APL shall use due diligence to maintain and repair each of the
Vessels in accordance with good commercial marine practice and in accordance
with APL's normal practices.

                                 SECTION 10.
                                    TAXES

     Any sales, use or ad valorem taxes payable to any governmental authority
as a result of the transactions described in this Purchase Agreement shall be
shared equally by the parties.

                                 SECTION 11.
                           DEFAULT AND TERMINATION
                           
     All defaults and disputes relating to this Purchase Agreement shall be
governed exclusively by the provisions of Sections 7 and 8 of the Implementa-
tion Agreement prior to and including the Implementation Date, and by the
provisions of the Alliance Agreement (as defined in the Implementation Agree-
ment) if such Alliance Agreement shall be executed and delivered by the parties
on the Implementation Date, after the Implementation Date.  This Purchase
Agreement shall automatically terminate upon any termination pursuant to
Section 7 of the Implementation Agreement.  Notwithstanding anything in this
Purchase Agreement or in the Implementation Agreement to the contrary, the
rights and obligations of the parties with respect to any termination pursuant
to Section 7 of the Implementation Agreement prior to the Implementation Date
(as defined in the Implementation Agreement) shall be exclusively as set forth
in, and shall be exclusively governed by, the provisions of Section 7 of the
Implementation Agreement.

                                 SECTION 12.
                               INDEMNIFICATION

      (a) APL agrees to indemnify, defend and hold harmless Matson, its
          employees, agents and representatives, from and against any and all
          claims, judgments, demands, causes of action, damages, losses,
          liabilities, interest, award, penalties, costs and expenses
          (including, without limitation, reasonable attorneys' fees, costs and
          expenses) incurred or suffered by Matson, its employees, agents and
          representatives, in connection with or relating to:

          (i)    Any breach of any representation, warranty, covenant or
                 agreement of APL contained in this Purchase Agreement;
                  
          (ii)   Liabilities of APL arising from or relating to the
                 ownership, chartering or other employment of any Vessel
                 prior to its Closing Date;

          (iii)  Claims of third parties arising out of or resulting from APL's
                 ownership, chartering or other employment of any Vessel
                 prior to its Closing Date; and

          (iv)   The tax-free exchange by APL referred to in SECTION 13
                 hereof.

      (b) Matson agrees to indemnify, defend and hold harmless APL, its
          employees, agents and representatives, from and against any and all
          claims, judgments, demands, causes of action, damages, losses,
          liabilities, interest, award, penalties, costs and expenses
          (including, without limitation, reasonable attorneys' fees, costs and
          expenses) incurred or suffered by APL, its employees, agents and
          representatives, in connection with or relating to any or breach of
          any representation, warranty, covenant or agreement of Matson
          contained in this Purchase Agreement.

      (c) Any party to be indemnified pursuant to this SECTION 12 shall notify
          the indemnifying party in writing of any fact of circumstance which
          may give rise to such indemnification with reasonable detail and
          promptness after such fact or circumstance first comes to the
          attention of the party to be indemnified; provided, that in the event
                                                    --------

          the party to be indemnified shall fail in any respect to give such
          notice, the indemnifying party's obligation to indemnify in respect
          of the fact or circumstance in question shall be reduced only by the
          amount of the damage (if any) which the indemnifying party proves it
          suffered as a direct and proximate result of such failure.  The
          parties will cooperate with each other in the defense of any claim
          for which indemnity may be sought, and will provide each other with
          access to, and copies of, such records, and such other assistance,
          as may reasonably be required in connection with such defense.

                                 SECTION 13.
                            APL LIKE-KIND EXCHANGE

     Pursuant to Section 6.6 of the Implementation Agreement, and subject to
said Section 6.6 and the above indemnities, Matson has agreed to cooperate in
good faith with APL to facilitate a tax-free exchange of any or all of the
Vessels under Internal Revenue Code Section 1031 for an APL C-11 newbuilding
currently under construction, including the use of a qualified intermediary, if
APL elects to effect such a like-kind exchange; provided, that Matson bear no
                                                --------

material financial, legal or other risk by reason of such tax-free exchange.

                                 SECTION 14.
                                MISCELLANEOUS

     14.1 OTHER AGREEMENTS; AMENDMENTS; NO WAIVER IMPLIED.
          -----------------------------------------------

     This Purchase Agreement, including all appendices, exhibits and schedules
attached hereto, and the Implementation Agreement and all appendices, exhibits
and schedules attached thereto, constitute the entire agreement among the
parties pertaining to the subject matter hereof and thereof and supersede all
prior and contemporaneous agreements, representations and understandings of the
parties with respect thereto.  No supplement, modification or amendment of this
Purchase Agreement shall be binding unless executed in writing by all the
parties hereto.  No waiver of any provision of this Purchase Agreement shall be
deemed to be, or shall constitute, a waiver of any other provision, whether or
not similar, nor shall any waiver constitute a continuing waiver.  No waiver
shall be binding unless executed in writing by the party making the waiver.

     14.2 NOTICES.
          ------- 

     All notices under this Purchase Agreement shall be given in the same
manner as provided in the Implementation Agreement.

     14.3 CAPTIONS.
          --------          

     The captions in this Purchase Agreement are for convenience of reference
only and are not part of this Purchase Agreement.  They do not define or limit
any of the terms or provision, or otherwise affect the construction, of this
Purchase Agreement.

     14.4 REFERENCES.
          ----------
           
     References in this Purchase Agreement to sections and exhibits are
references to Sections and Exhibits of this Purchase Agreement, except as
expressly otherwise indicated.

     14.5 ASSIGNMENT; BINDING EFFECT.
          --------------------------

     Neither party hereto shall have the right to assign or delegate any of its
rights or obligations under this Purchase Agreement, and any purported
assignment or delegation by such party in violation of the preceding clause
shall be null and void and of no force or effect; provided, however, that APL
                                                  --------  -------

shall, subject to all provisions of this Purchase Agreement, have the right to
assign or delegate its rights and obligations under this Purchase Agreement,
relating to the right to receive payment and the obligation to transfer any of
the Vessels, to a qualified intermediary in connection with a like-kind
exchange of the Vessels pursuant to SECTION 13 hereof, and Matson shall,
subject to all the provisions of this Purchase Agreement, consent to such
assignment and delegation.  This Purchase Agreement shall be binding upon,
inure to the benefit of, and be enforceable by the parties hereto and their
respective successors.

     14.6 APPLICABLE LAW.
          --------------

     This Purchase Agreement shall be construed and enforced in accordance with
and be governed by the internal laws of the State of California.  In the event
of any uncertainty in the terms of this Purchase Agreement, there shall exist
no presumption against either party that such uncertainty arose from the
preparation of this Purchase Agreement by such party.

     14.7 COUNTERPARTS.
          ------------

     This Purchase Agreement may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     14.8 FURTHER ASSURANCES.
          ------------------

     At any time or from time to time upon the reasonable request of a party
hereto (the "Requesting Party"), the other party will promptly execute,
acknowledge, and deliver such further documents and do such other acts and
things, at the Requesting Party's expense, as shall be necessary or advisable,
in the Requesting Party's reasonable judgment, in order to affect fully the
purposes of this Purchase Agreement.

     14.9 OTHER.
          -----

     As employed in this Purchase Agreement, the term "Non-Termination Loss"
means any loss, damage or casualty to a Vessel not constituting an event set
forth in Section 7.1(a)(ii)(A) or (B) or Section 7.2(a)(ii)(A) or (B) of the
Implementation Agreement.


     IN WITNESS WHEREOF, APL and Matson have caused this Purchase Agreement to
be duly executed as of the day and year first above written.


                                            MATSON NAVIGATION COMPANY, INC.


                                            By
                                              ------------------------------
                                              Name:
                                              Title:


                                            AMERICAN PRESIDENT LINES, LTD.


                                            By
                                              ------------------------------
                                              Name:
                                              Title:




<PAGE>
- ------
                                   EXHIBIT A
                                   ---------



                                DESCRIPTION OF
                       PROPELLERS AND PROPELLER SHAFTS
                       -------------------------------



One C-9 Propeller

One C-9 Tail Shaft

One C-8 Propeller

One C-8 Stern Tube Shaft

One C-8 Intermediate Shaft

One C-8 Propeller Shaft




<PAGE>

                                  EXHIBIT B
                                  ---------


                            RESTRICTIONS AND LIENS
                            ----------------------


     1.   Maritime liens arising by operation of law securing obligations for
necessaries and wages of crews employed by APL which obligations are not due 
and payable.  APL shall pay all such obligations when due and payable, and
shall indemnify Matson fully against all such liens and obligations and shall,
at APL's cost and expense, immediately cause the release of any Vessel seized
or otherwise levied upon by reason of any such lien or obligation.

     2.   Maritime liens arising by operation of law for salvage, cargo damage
and tort claims incurred by APL which claims are insured (in excess of
deductibles) and which have not been liquidated by final judgment or 
settlement. APL shall pay all such claims if and when liquidated by final
judgment or settlement (and in accordance with the terms of the judgment or
settlement), and shall indemnify Matson fully against all such liens and
obligations and shall, at APL's cost and expense, immediately cause the release
of any Vessel seized or otherwise levied upon by reason of any such lien or
obligation.




<PAGE>
                                  EXHIBIT C
                                  ---------


                    CERTIFICATE OF DELIVERY AND ACCEPTANCE
                    --------------------------------------


     AMERICAN PRESIDENT LINES, LTD. ("APL") does hereby certify:

     1.   That at       a.m./p.m., San Francisco time, on the      day of      ,
                  -----                                       -----       -----
199 , APL delivered the containership named PRESIDENT      , Official No.
   -                                                  -----               -----
(the "Vessel"), at          , to MATSON NAVIGATION COMPANY, INC. ("MATSON")
                   ---------
pursuant to that certain Vessel Purchase Agreement between APL and Matson dated
December   , 1995, as the same has been heretofore amended in accordance with
         --
its terms and a Bill of Sale executed by APL dated this date.

     2.   That the Vessel was delivered in accordance with the Vessel Purchase
Agreement, except for the items in Exhibit 1 hereto, if any, and delivered to
Matson while the Vessel was located at           , and Matson simultaneously
                                       ----------
accepted the delivery of the Vessel from APL.

     IN WITNESS WHEREOF, APL has executed this Certificate of Delivery and
Acceptance on this       day of      , 199 .
                   -----        -----     -

                                          AMERICAN PRESIDENT LINES, LTD.


                                          By
                                            -----------------------------

                                          Title
                                               --------------------------

     MATSON HEREBY accepts the Vessel pursuant to the Vessel Purchase Agreement
on the date hereof at the aforementioned time, at the aforementioned place,
subject to the exceptions listed in Exhibit 1 hereto, if any, and subject to
warranties and other rights of Matson under the Vessel Purchase Agreement.

                                          MATSON NAVIGATION COMPANY, INC.


                                          By
                                            ------------------------------

                                          Title
                                               ---------------------------



<PAGE>
                                  EXHIBIT 1
                                  ---------


                  TO CERTIFICATE OF DELIVERY AND ACCEPTANCE
                  -----------------------------------------



                 REQUIRED REPAIRS, RENEWALS, REPLACEMENTS OR
                     OTHER OBLIGATIONS WHICH REMAIN TO BE
                          ACCOMPLISHED BY CHARTERER
                          -------------------------



<PAGE>

                                  EXHIBIT D
                                  ---------


                  FORM OF INTERIM BAREBOAT CHARTER AGREEMENT
                  ------------------------------------------




<PAGE>
                                 EXHIBIT 4.3
                                 -----------


                        APL END USER LICENSE AGREEMENT
                        ------------------------------




<PAGE>

                                SCHEDULE 1(A)
                                -------------


                             APL VESSEL SOFTWARE*
                             --------------------




SOFTWARE                              TYPE                VENDOR

A. APL PROPRIETARY VESSEL
   SOFTWARE

Filepump                              File Management     Proprietary
                                      Communications      (Written by Paul
                                                          Wood for APL)

Fuel                                  Fuel Tracking       Proprietary
                                                          (Written by Paul
                                                          Wood for APL)

Stability, Trim and Bending (STAB)    Ship Management     Proprietary
                                                          (Written by Paul
                                                          Wood for APL)

Tactics                               Ship Management     Proprietary
                                                          (Developed by
                                                          NAVIS for APL)

B. APL LICENSED VESSEL
   SOFTWARE

AMOS-D                                Ship Management     SpecTech General

FUTRAC                                Fuel Tracking       Ocean Systems,
                                      Passage Reporting   Inc.

NTC Ship Manager                      Ship Management     Nautical
                                                          Technology Corp.

StackWeight                           Lashing/Stow        Herbert
                                      Management          Engineering

C. APL MISCELLANEOUS VESSEL
   SOFTWARE

AutoPilot System                      Menuing             Pilot Systems

3 Menus                               Menuing             3-Com

Blast                                 Communications      Communications
                                                          Research Group

Flow Charting 3                       Flowcharging        Patton & Patton

Instant Mail Manager                  Communications/E-   Kensington
                                      Mail

Lotus                                 Financial           Lotus
                                      Spreadsheets and
                                      Database Program

Microsoft DOS                         PC Operating        Microsoft
                                      System

Microsoft Excel                       Spreadsheet         Microsoft

Microsoft Office                      Office Automation   Microsoft

Microsoft Power Point                 Drawing/Graphics    Microsoft

Microsoft Windows                     PC Operations       Microsoft
                                      Software

Microsoft Word                        Word Processing     Microsoft

Multimate                             Word Processing     Borland

NetWare                               PC Network          Novelle

Norton AntiVirus                      Virus Detection     Symantec

Norton Desktop for DOS                PC Operations       Norton
                                      Software

Professional Write                    Word Processing     Software
                                                          Publishing

Reflex                                Database program    Borland

The Network Archivist (TNA)           Tape BackUp         Pallindrome


**Matson will receive either original or replacement software for all
items on this list reasonably required by Matson to run the Vessels.




Exhibit 10.a.(xxxii)













                               AMENDMENT NO. 1

                           DATED DECEMBER   , 1995
                                          --

                                BY AND BETWEEN

                       MATSON NAVIGATION COMPANY, INC.

                                     AND

                        AMERICAN PRESIDENT LINES, LTD.

                                    TO THE

                          VESSEL PURCHASE AGREEMENT,
                           DATED DECEMBER 20, 1995




                               AMENDMENT NO. 1
                                    TO THE
                          VESSEL PURCHASE AGREEMENT
                          -------------------------



     THIS AMENDMENT NO. 1 ("Amendment No. 1") to the VESSEL PURCHASE AGREEMENT
(as originally executed on December 20, 1995 (the "VPA") is entered into on 
this ---- day of December, 1995 by and between MATSON NAVIGATION COMPANY, INC.,
a Hawaii corporation ("Matson") and AMERICAN PRESIDENT LINES, LTD., a Delaware
corporation ("APL").  Capitalized terms used in this Amendment No. 1 and not
otherwise defined herein have the meanings specified in, or in other
instruments referred to in, the VPA.

                                  SECTION 1.

     Notwithstanding the provisions of Sections 5.1(b), 5.2(c) and 10 of the
VPA, and Section 1.2(b)(v) and 1.2(c)(v) of the Implementation Agreement, with
respect to the purchase and sale of the vessel PRESIDENT WASHINGTON, Official
No. 653424 (the "Vessel"), APL shall indemnify and defend Matson from and
against any claims, demands, causes of action, costs, losses, damages,
liabilities, fines, penalties and expenses (including, without limitation,
reasonable attorneys' fees) for or with respect to any sale, use or ad valorem
taxes payable
 to any governmental authority, or claimed to be payable by any
such governmental authority, by reason of the Vessel not being outside the
territorial waters of the United States and California at the time of the
purchase and sale of the Vessel pursuant to the VPA.  Nothing in the VPA or any
instrument or other document executed pursuant thereto or in respect thereof
concerning the transfer of the Vessel, shall constitute a waiver of, or any
limitation on, Matson's rights or APL's obligations pursuant to the indemnity
set forth in the preceding sentence.

                                  SECTION 2.

     (a)  Except as amended by this Amendment No. 1, all other terms,
conditions and covenants of the VPA are hereby confirmed by the parties hereto
and remain unchanged and in full force and effect.  From and after the date
hereof, all references to the VPA in the VPA (including references therein
to "this Agreement", "hereof," "hereto," or "hereunder") and in any of the
Related Agreements, shall be deemed to be references to the VPA as amended by
this Amendment No. 1.

     (b)  This Amendment No. 1 may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.


     IN WITNESS WHEREOF, Matson and APL have caused this Amendment No. 1 to be
duly executed as of the day and year first above written.


                                             MATSON NAVIGATION COMPANY, INC.


                                             By
                                               ------------------------------
                                               Name:
                                               Title:




                                             AMERICAN PRESIDENT LINES, LTD.


                                             By
                                               -----------------------------
                                               Name:
                                               Title:














<TABLE>
<CAPTION>


                                                                     EXHIBIT 11

                             ALEXANDER & BALDWIN, INC.
                        COMPUTATION OF EARNINGS PER SHARE
               FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
                     (In thousands, except per share amounts)
- ----------------------------------------------------------------------------------------
<S>                                                  <C>          <C>       <C>
                                                        1995         1994          1993
                                                      --------     --------     --------   
    Primary Earnings Per Share (a)

       Net income from continuing operations           $32,419      $63,979      $58,736
       Net income from discontinued operations          23,336       10,629        8,253
                                                      --------     --------     --------
       Net income                                      $55,755      $74,608      $66,989
                                                      ========     ========     ========
       Average number of shares outstanding             45,492       46,059       46,338
                                                      ========     ========     ========
       Primary earnings per share from
                      continuing operations               0.72         1.39         1.27

       Primary earnings per share from
                      discontinued operations             0.51         0.23         0.18
                                                      --------     --------     -------- 
       Primary earnings per share                        $1.23        $1.62        $1.45
                                                      ========     ========     ========

    Fully Diluted Earnings Per Share

       Net income from continuing operations           $32,419      $63,979      $58,736
       Net income from discontinued operations          23,336       10,629        8,253
                                                      --------     --------     --------
       Net income                                      $55,755      $74,608      $66,989
                                                      ========     ========     ========
       Average number of shares outstanding             45,492       46,059       46,338

       Effect of assumed exercise of
           outstanding stock options                        23           51           31
                                                      --------     --------     --------
       Average number of shares outstanding
           after assumed exercise of
           outstanding stock options                    45,515       46,110       46,369
                                                      ========     ========     ========
       Fully diluted earnings per share from
                      continuing operations               0.72         1.39         1.27

       Fully diluted earnings per share from
                      discontinued operations             0.51         0.23         0.18
                                                      --------     --------     --------
       Fully diluted earnings per share                  $1.23        $1.62        $1.45
                                                      ========     ========     ========

    (a)The
 computations of primary earnings per share do not include the effects
       of assumed exercises of employee stock options because such effects were
       immaterial.

</TABLE>



ALEXANDER & BALDWIN, INC. 1995 ANNUAL REPORT


Alexander & Baldwin, Inc. is a diversified corporation with the majority of its
operations centered in Hawaii.  Its principal business segments are:

Ocean Transportation
Property Development and Management
Food Products

Alexander & Baldwin, Inc. was founded in 1870 and was incorporated in 1900.
Its common stock is traded on The NASDAQ Stock MarketSM.
The trading symbol is ALEX.

Headquartered at 822 Bishop Street, Honolulu, Hawaii
The Company's mailing address is:
P. O. Box 3440, Honolulu, HI 96801-3440.
Telephone: (808)525-6611
Fax (808)525-6652


On the cover:
Expanding the tradition of Matson schedule integrity, S.S. Manulani carries
containers in Matson's new Pacific Coast service. By providing weekly coastwise
service between Los Angeles and the Pacific Northwest ports of Seattle and
Vancouver, B.C., the service, initiated in 1994, provides an alternative to
truck and rail in the West Coast's busy North/South transportation corridor.



<PAGE>

Financial Highlights


                         1995                1994           Change

Revenue             $ 1,020,455,000     $  1,144,033,000    - 11%
Net Income          $    55,755,000     $     74,608,000    - 25%
  Per Share         $          1.23     $           1.62    - 24%
Cash Dividends      $    40,035,000     $     40,563,000    -  1%
  Per Share         $          0.88     $           0.88
Average Shares
  Outstanding            45,492,000           46,059,000    -  1%
Total
 Assets        $ 1,782,759,000     $  1,925,775,000    -  7%
Shareholders'
  Equity            $   649,678,000     $    632,614,000    +  3%
  Per Share         $         14.35     $          13.85    +  4%
Return on Beginning
  Shareholders'
  Equity                       8.8%                12.7%      -
Current Ratio              1.4 to 1             1.3 to 1      -
Ratio: Long-term
  Debt and Capital
  Leases to Total
  Capital                  .26 to 1             .32 to 1      -
Employees                     3,076                3,581     - 14%

  Contents
[Page references are for the printed Annual Report to Shareholders
and do not correlate to the electronic version.]

     1    Financial Highlights
     2    Letter to Shareholders
     7    Review of Operations
     8       Matson
     12      ABHI
     19   General Information
     19      Board of Directors
     19      Management, Organization
     19      Common Stock
     20      Dividends
     20      Credit Ratings
     20      Quarterly Results
     21   Financial Report
     40   Directors and Officers

  Inside Back Cover
          Principal Subsidiaries and Affiliates
          Investor Information


<PAGE>

To Our Shareholders
 
[Photo caption:  John C. Couch, Chairman of the Board, President and Chief
Executive Officer, Alexander & Baldwin, Inc.] 
 
[Photo caption:  
A changed identity--the newly renamed S.S. Mahimahi, recently acquired from
American President Lines, inaugurates the Pacific Alliance service. The vessel
is shown in its new Matson markings, departing from Oakland, Calif., for 
Hawaii, Guam and Far Eastern ports. The vessel then will return to the U.S.,
under charter to APL, carrying import cargo.]

Fellow Shareholders

Your Company's 125th anniversary year was a challenging one. Nonetheless, a
great deal was accomplished to build on our strengths and confront fundamental
changes in our business environment.

The Hawaii economy continued its extraordinarily slow recovery; competition
intensified in several of our primary markets; and, problems with administra-
tion of the current federal sugar program placed severe financial stress on
U.S. cane sugar refiners.

We are meeting these challenges head-on and have implemented a number of
strategic initiatives which will reduce costs, improve our competitive position
and open-up new market opportunities in each of our businesses.

Among the more significant initiatives were: the sale, for $362 million, of our
international marine container leasing unit, Matson Leasing Company, Inc.
(Matson Leasing); the purchase, for $168 million, of six container ships and
other assets from American President Lines, Ltd. (APL); and the establishment
of an alliance with APL that will permit Matson Navigation Company, Inc.
(Matson) to serve the Guam market while realizing substantial cost savings in
the Hawaii service. In the property development area, we launched our 76-acre
Maui Business Park by establishing an alliance with a prominent developer that
will result in the creation of a large new value retail center. In food
products, we announced the phasing-out of our historic, but unprofitable,
sugar-growing operations on Kauai by the end of 1996, and we moved aggressively
to reduce costs at our sugar refining and marketing business -- including a
major restructuring of the refinery operations that resulted in a 25-percent
reduction in the work force and should lower costs by $8 million annually.
Finally, we implemented a number of Company-wide initiatives to reduce general
and administrative costs by an additional $10 million per year. These
initiatives will help position each business to deal more effectively and
profitably with the challenges it faces in the years ahead.

While Hawaii's economy continues to show signs of slow, but persistent, growth,
there has been no concrete progress, as of mid-February, in the legislative
arena toward meaningful reform of the U.S. sugar program. The past year brought
into sharp focus flaws in existing sugar legislation. It especially has
disadvantaged the cane sugar refining segment, which markets half the sugar
consumed in the country. At this point, the timing and extent of any legisla-
tive reform remains uncertain. The federal budget impasse, as well as
continuing debate about overall farm legislation, are impeding resolution of
the matter.


1995 Financial Results Disappointing

A&B's 1995 net income was $55.8 million, down 25 percent from $74.6 million
earned in 1994. Earnings per share were $1.23, versus $1.62 in 1994. These 1995
figures incorporate a charge of $5.1 million for the closure of the Kauai sugar
operations, a charge of $2.4 million to write-down certain California and
Hawaiian Sugar Company, Inc. (C&H) assets, an $18 million gain on the sale of
Matson Leasing, and the $5.3 million in net income Matson Leasing earned prior
to its sale in June.

Strong cash flow again permitted the Company to proceed with important capital
commitments, while concurrently reducing debt, repurchasing shares and
continuing regular cash dividends. The annual dividend rate remained at $.88
per share. In addition to distributing $40 million in dividends, a total of
$11.6 million was spent during 1995 to repurchase 511,000 shares of outstanding
stock, continuing the A&B stock repurchase program begun in 1994. As a result,
each remaining shareholder has a larger ownership stake. To date, 1.2 million
shares, or nearly three percent of the shares outstanding at the start of the
program, have been repurchased at a total cost of $29.3 million. Share
repurchase remains an important mechanism for returning excess cash to
shareholders.

Matson's New Alliance With APL

The strengthening of tourism in Hawaii last year was not enough to offset a
reduction in statewide construction spending. As a result, Matson's total cargo
volume in the Hawaii Service declined. Competition also contributed to the
unfavorable year-over-year performance. Matson's 1994 results benefited from a
labor strike at its primary competitor. Also, that competitor inaugurated, at
mid-year 1995, a new eastbound service from Honolulu to Los Angeles which
affected the comparison.

In April 1995, Matson and APL announced their intent to operate a joint service
that would benefit both carriers by producing significant cost savings. The 
core of Matson's business is its Hawaii Service. Most of the cargo volume in
this trade, however, travels westbound to Hawaii from the U.S. Mainland. As a
result, Matson's ships return eastbound "light," carrying less cargo.
Transpacific carriers, like APL, normally face the opposite situation. Their
high-volume direction is eastbound, carrying import cargo from the Far East. In
the joint service, vessel utilization on the round trip will improve
significantly.

The principal features of the strategic alliance are: Matson has purchased from
APL six vessels and assets related to its Guam shipping service. During the
first quarter of 1996, four of those vessels and one Matson ship will begin
operation of the new consolidated service between the U.S. Pacific Coast and
Hawaii, Guam and four ports in Korea and Japan; and Matson will take over an
established Guam trade from APL and share the cost of the new five-ship
combined service. Additional Matson benefits are revenue from cargo shipped to
Guam and other nearby destinations, and payments from APL for use of the
vessels to carry cargo from the Far East on the return voyages to the U.S.
Pacific Coast.

At midyear 1995, Matson Leasing was sold. From its launch in 1989, Matson
Leasing had grown rapidly and successfully to become the seventh-largest
international marine container leasing company in the world. To continue to
prosper, however, Matson Leasing needed significant amounts of additional
capital for the purchase of new containers. Strategically, we concluded that
A&B would be better served by investing in operating assets rather than
dedicating so much capital to financial assets. Proceeds from the sale of
Matson Leasing facilitated the purchase of the additional vessels, the
formation of the strategic alliance with APL and the initiation of service
to Guam. In addition, the sale permitted A&B to reduce debt and repurchase
shares.

Advances in computer and telecommunications technology continue to create
exciting new opportunities to enhance customer service and reduce costs. An
acknowledged leader in the transportation industry in this area, Matson last
year took another significant step forward. Near the end of 1995, all of
Matson's customer service operations were consolidated at a new, high-tech,
high-service center in Phoenix, Ariz. This new facility provides customers
"one-stop shopping" for all Matson services, and should save about $1 million
per year in operating and administrative costs.


[Photo caption:
With economic conditions on the island of Kauai still uncertain, A&B proceeded
with applications for important land designations and zoning changes. State and
County approvals were granted during 1995. Scenic Kukui'ula Bay and a total of
1,050 acres of A&B land mauka (toward the mountains) of the Bay now await
renewed economic growth for residential and commercial development.]

Food Products Segment Struggles

[Photo caption:
Convenience and innovation mark new packaging of C&H products. Although the
artwork is traditional, during 1995, C&H introduced new ways to make its
familiar, high-quality sugar products easier to use and to store between uses.]

A&B's McBryde plantation has grown sugar cane on the island of Kauai since
1899. With competitive changes in the industry, smaller, less economical
plantations like McBryde have struggled to survive. In spite of concerted
efforts by management and employees over many years, we concluded, reluctantly,
that McBryde's sugar operations could not be profitable on a sustained basis.
In June 1995, therefore, we announced that these sugar operations would be
phased out by harvest-end 1996, and that an $8.1 million pretax charge would
be taken in 1995 to cover all of the anticipated costs. This decision was
difficult, but necessary.

Coffee production and marketing, while still in the development stage, continue
to show promise. Last year we harvested about 1.8 million pounds of coffee on
4,000 acres formerly used for sugar. Production should more than double in the
next few years.

Although sugar refining losses in 1995 largely can be traced to the market
distortions (i.e., abnormally high raw sugar prices) created by the present
federal sugar program, the situation was exacerbated by a six-week strike at
C&H that spanned portions of the third and fourth quarters. The resulting labor
agreement, however, was constructive and will help the refiner become more cost
competitive.

Sugar production at the Company's large plantation on Maui in 1995 was about
25,000 tons (12 percent) lower than we had expected due to lower crop yields.
Abnormally dry weather accounted for much of the shortfall. A thorough review,
however,  prompted important adjustments in agronomic practices that should
improve yields for subsequent crops.

Maui Business Park Leads Development

During 1995, A&B's geographically diverse property operations moved ahead on a
number of fronts. The largest and most significant achievements were the
construction progress and initial sales at Maui Business Park, a project we
formerly called Kahului Industrial Park. With an intended fully developed size
of about 240 acres, construction started with a 76-acre first phase. At year-
end, a significant sale and lease, of about 20 acres in total, was closed with
a prominent local developer. Plans call for development of a 275,000 square-
foot value retail center, Maui's first. Closing of this transaction, which
includes the purchase of 5.5 acres and a lease with purchase option on 14.5
additional acres of land, has been a catalyst for interest in Maui Business
Park. There are 32 additional lots offered in this first increment of the
project. Sales of the first three closed in 1995. Selling prices in this well-
located project are proceeding at planned levels.

Also on Maui, A&B is progressing on several residential developments. Sales
interest is strong in our newest development, the 93-lot residential sub-
division at Ku'au Bayview on the North Shore. This will be the first develop-
ment of individual house/lot packages by A&B in several years. In addition,
plans have been submitted for three new agricultural subdivisions on Maui,
and lot sales continue at the existing subdivision, Haiku Mauka on Maui's 
North\Shore, where 29 of the 39 lots in the project were sold by year-end 1995.
Finally, sales began at midyear 1995 at Kahului Ikena, a 102-unit townhouse
condominium project.

Near year-end, the Kauai County Council approved zoning for 514 additional
acres of A&B's Kukui'ula planned residential project. When added to 213 acres
previously approved, the Kukui'ula project now comprises 727 acres of zoned
residential land adjacent to the Poipu resort area. Although the present
economic situation on the island of Kauai precludes taking immediate advantage
of this approval, this conclusive regulatory step enhances the value of the
property, and permits more detailed planning for future development.

On the U.S. Mainland, two shopping centers were purchased in June, adding to
A&B's leased property portfolio. These purchases preserve the tax-deferred
status of gains on previous real estate transactions and provide new sources of
earnings, cash flow and potential appreciation. One is a 168,000 square-foot
regional center in Reno, Nevada and the other a 43,000 square-foot neighborhood
center in Greeley, Colorado. The Company's total lease portfolio (2.8 million
square feet) continued to enjoy high occupancy rates during 1995, averaging 97
percent for the Mainland properties and 90 percent for those in Hawaii.

In California, the El Dorado County general plan was approved in early 1996,
incorporating our long-term plans for an 1,800-acre residential project at 
Pilot Hill.

Outlook for 1996, Beyond

The outlook for Hawaii's economy remains modestly encouraging, with forecasts
of slow, but persistent, growth. Hawaii's visitor industry continues to 
improve, with visitor arrivals near all-time highs. Important segments within
the construction industry, however, continue to contract, holding the industry
down and slowing the overall economic recovery.

Anticipating that the Hawaii economy will not provide much of a boost in 1996,
A&B will concentrate on successful implementation of the 1995 strategic
initiatives to grow earnings and improve profitability.

We are optimistic that Matson's overall results will improve in 1996 as a 
result of the benefits from the new APL alliance. Hawaii Service revenue is
likely to remain under pressure, awaiting a more pronounced turnaround in
Hawaii's economy. The West Coast shipping industry will face labor contract
negotiations with the International Longshoremen's and Warehousemen's Union.
While there may be some difficult issues to resolve, we expect satisfactory
agreements will be reached without work disruption.

While food products results are expected to improve over those of last year,
major uncertainties remain about the federal sugar program and resulting sugar
prices. Our priorities for the coming year will be to continue to improve the
cost competitiveness of both our sugar refinery and sugar-growing activities
and, at the same time, to consider longer range strategic options for these
operations.

In the property area, we look forward to a good year as we respond to current
demand for development of new properties, as well as continue entitlement work
which will allow us to meet  demand for improved commercial and residential
property over the next 10 to 20 years.

Cash flow is expected to remain strong. A&B has relatively few large investment
obligations in the next few years. Matson, however, will need to begin 
replacing its fleet by the end of the century and plans for doing so will be
developed in the near future. The timing of additional large investments will
await improvement in the economic outlook for the markets served by our other
businesses.


A&B's 125th Anniversary

As noted earlier, in 1995, A&B celebrated the 125th anniversary of the 
formation of its original sugar growing partnership. Each of the Company's core
businesses today traces its roots to that small sugar plantation on Maui.
During the subsequent century and a quarter, A&B has experienced great
successes as well as disappointments, enormous challenges as well as good
fortune, and significant changes as well as long periods of stability. An
enduring characteristic of the Company, and one I believe has contributed to
its successes, has been the willingness to take a long-term view of its
business opportunities and prospects. The Company also has a long history of
innovation and purposeful change. Given the challenges we faced in 1995, that
heritage was especially helpful.

During the year, all of A&B's business segments continued to face significant
near-term problems. Nevertheless, in each case, important steps were taken to
deal not only with the immediate issues, but also to improve future results. We
remain firmly committed to providing improved returns for our shareholders as
the Company continues to grow with and beyond Hawaii.

On behalf of all shareholders, I want to thank the employees of A&B and its
subsidiaries for their contributions to our progress in 1995. I also would like
to thank the shareholders, directors and employees for their support during my
first year as chairman of this venerable company. The creativity, commitment 
and capabilities of my associates and the inherent strengths of our businesses
give me confidence in our prospects for greater success in the years ahead.



John C. Couch
Chairman of the Board,
President and
Chief Executive Officer


February 16, 1996



<PAGE>

Review of Operations

The following table shows the operating profit for each segment for the last
three years.  Results and prospects for each segment are discussed in the
following pages.


<TABLE>
<CAPTION>
                                        Percent               Percent              Percent
                                          of                    of                   of
(Dollars in thousands)          1995     Total       1994      Total      1993      Total
- ------------------------------------------------------------------------------------------

<S>                           <C>        <C>       <C>          <C>     <C>          <C>
Ocean Transportation          $ 87,769    88       $ 97,319     69      $ 91,194     62
Property Development
     and Management:
          Leasing               23,063    23         23,163     16        22,975     15
          Sales                 14,497    14         18,522     13        18,570     13
Food Products                  (27,797)  -28           (418)     -        12,692      9
Other                            2,593     3          3,143      2         2,357      1

</TABLE>


[Graph: A&B Operating Profit by Source 1985-1995
The graph illustrates the contributions to operating 
profit by each business segment.]


Matson

[Photo caption:
C. Bradley Mulholland, President and Chief  Executive Officer, Matson 
Navigation Company, Inc.]

[Photo caption:
Heading for port and laden with varied cargoes for consumers, the S.S. Kauai
steams near Hawaii's famous landmark, Diamond Head. Four weekly Matson ship
arrivals in Hawaii provide the capacity and frequency of service needed to
assure ample supplies of commodities required to support the State's diverse
economy.]

[Photo caption:
Top: With one call to the brand new customer service center, customers have
access to Matson's entire freight information network. Customer service
representatives use state-of-the-art hardware and software to help shippers of
all sizes transport their cargo.
Bottom: New refrigerated containers arrive. Much of the cargo moving to and 
from Hawaii requires precise temperature control. During 1995, Matson invested
$14 million to provide nearly 500 new refrigerated containers for its 
customers.]

[Photo caption:
Top:  John Perillo (right), assistant store manager, and Bobby DePeralta (left)
produce manager for Safeway view the array of fresh produce delivered by Matson
to their new store in Kapolei, Oahu. Economical shipping costs, reliable
customer service and schedule integrity make Matson a dependable carrier for
many of Hawaii's shippers.
Left: In 1995, the hailing port for all of Matson's ships was changed to
Honolulu. Whether Matson ships call on Yokohama, Vancouver, Los Angeles or 
Guam, the strong, historic links between Matson and Hawaii will be seen clearly
by all.]

The ocean transportation operations of Alexander & Baldwin, Inc. (A&B) are
conducted by Matson Navigation Company, Inc. (Matson), a wholly owned 
subsidiary headquartered in San Francisco. Matson is the principal carrier of
containerized cargo and automobiles between the U.S. Pacific Coast and Hawaii,
utilizing container ships and combination container/trailer ships in regularly
scheduled service between Hawaii and Los Angeles, Oakland and the U.S. Pacific
Northwest. This core Hawaii service includes transshipment of cargo between
Honolulu and the islands of Hawaii, Maui and Kauai.

During 1995, Matson announced a new trans-Pacific service, which started
operations in February 1996. In conjunction with American President Lines, Ltd.
(APL), the Pacific Alliance service offers weekly sailings from Oakland,
Honolulu, Guam, Busan, Hakata, Nagoya, Yokohama and Los Angeles.  Matson also
operates a Pacific Coast service using one container ship that operates along
the West Coast and a container barge service between Honolulu and several mid-
Pacific islands.

In addition, Matson subsidiaries offer stevedoring and terminal services,
intermodal services and harbor tugboat services.

At midyear 1995, Matson's international marine container leasing operations,
established in 1989, were sold for $362 million.

Matson's mission is to be a preferred provider of cargo transportation services
by offering a high-value service, characterized by reliability, frequency,
efficiency and ease-of-use.

Operating Results

In 1995, ocean transportation operations provided 58 percent of A&B's revenue
and 88 percent of its operating profit.  For explanations of year-to-year
changes in results, please refer to Management's Discussion and Analysis on 
page 25.

                      1995      1994      1993
                      ----      ----      ----
                          (in thousands)

Revenue             $593,807  $604,754  $551,687
Operating
     Profit*        $ 87,769  $ 97,319  $ 91,194

*Before interest expense, corporate expense and
 income taxes

Hawaii Service Cargo

In 1995, Matson's total Hawaii service containerized freight declined by nine
percent from the volume in 1994. For the sixth consecutive year, the Hawaii
economy had little or no growth, and there was no event similar to a 24-day
strike that had shut down a principal competitor in 1994. Over the past ten
years, however, Matson's containerized freight carriage units have grown at an
annual compound rate of four percent.

Total Hawaii service volume for the past three years was:

                     1995      1994      1993
                     ----      ----      ----
Freight
     (Units*)       157,200   173,300   171,600
Automobiles         107,100   116,800   109,300

*Starting in 1995, to conform better with industry practice, Matson changed its
basic measure of freight from twenty-four foot equivalent units (TFEUs) to
container units. All years are now reported on this new basis.

[Graph: Ten year Freight volume]
[Graph: Ten year Automobile volume]
Although tourism in Hawaii experienced moderate growth during 1995, the
construction industry continued a cyclical decline, which offset the benefit of
greater visitor traffic.

Due to reductions in Hawaii rental car fleets, greater competition and soft
consumer demand for new automobiles, total automobile carriage to and from
Hawaii also decreased in 1995, by eight percent.

1995 Progress

The single most significant step during 1995 for Matson was the announcement 
and successful negotiation of a strategic alliance with APL. In addition to
the new joint service, the agreement included the purchase, for $168 million,
of six APL container ships, shoreside spares and operating assets on Guam. The
alliance allows Matson to reduce costs in the Hawaii service; adds relatively
inexpensive fleet capacity; and introduces a new service to Guam that
complements the Hawaii service. The six ships include three C-9 vessels, the
largest and most modern American-built vessels operating in U.S. foreign
trades, and three C-8 vessels. Four of the APL vessels will join the MV R. J.
Pfeiffer in the new weekly trans-Pacific service. Under the agreement, Matson
and APL share the costs of round trip voyages, with the vessels carrying
primarily Matson freight on the westbound leg and APL freight eastbound. Both
carriers benefit from the resulting greater utilization of assets.

For Matson, the new Guam service marks its entry into a growing island trade,
where the Company can capitalize on its experience in delivering dependable, 
on-time shipping that has a crucial role in the distribution systems of the
island's businesses.  The weekly schedule to Guam features a Thursday morning
arrival, ensuring customers fresh inventories for high-volume weekend sales.
Using connecting carrier agreements, the service also extends to surrounding
island neighbors, such as Saipan, Tinian, Rota, Yap, Chuuk, Pohnpei and Palau.

The new service is a natural fit for Matson, whose strategic focus is serving
Pacific domestic trades. Another example of this focus is Matson's Pacific
Coast service, inaugurated in July 1994. Volume in this weekly coastwise
service between Los Angeles and the Pacific Northwest ports of Seattle and
Vancouver, British Columbia continues to grow. The Pacific Coast service
targets three primary markets:  feeder service for other ocean carriers under
connecting carrier agreements, domestic cargo moving between California and
Washington, and U.S. foreign commerce (primarily moving between Vancouver, B.C.
and Southern California). Although this service has not yet reached its
profitability objectives, customer response has been very positive, largely
due to the strong record of dependable, on-time service. One of the newly
acquired APL vessels, the S.S. Ewa, recently was assigned to the service,
replacing the S.S. Manulani. The new ship adds greater 20- and 40-foot
container capacity to the trade.

In late 1995 and early 1996, Matson consolidated all of its customer service
activities in a new facility located in Phoenix, Arizona. Along with
significant cost savings, the centralization of this function allows customers
to call just one toll-free number (1-800-4MATSON) for any matter regarding
Matson's Hawaii, Pacific Alliance, Pacific Coast or Mid-Pacific services.
Along with allowing for future growth, the new center assures that Matson is
strategically positioned to utilize new information systems to speed customer
transactions and to broaden the data available to customer service
representatives and customers.

In 1995, several schedule changes important to customers were made in the 
Hawaii service. By reconfiguring the fleet, transit time for one of the two
weekly ships from the important Los Angeles market to Honolulu was reduced by
ten hours. As a result, Oahu customers now can receive their freight one
business day earlier. Transit times to Neighbor Island ports also were reduced.
Matson was recognized during 1995 with two honors that ranked its Hawaii
service among the best in the industry by logistics professionals. Matson
received a Transportation Quality Award from Traffic Management magazine for
the third straight year, the only carrier ever to have been so honored, and
the only U.S. carrier recognized in 1995. This rating is based on a national
quality survey that asked readers to rate carriers in five key performance
areas:  price, on-time delivery, customer service, damage/claims record and
financial stability. As a result of another survey, Matson also was named a
1995 Quality Carrier by Distribution magazine, the second consecutive year
Matson was so recognized.

In a subtle, but meaningful, change, during 1995 Matson underscored the
importance of Hawaii to its business by changing the hailing, or "home," port
of all its vessels from San Francisco to Honolulu. This change acknowledges
that Hawaii is the hub of Matson's operations and that, just as Matson's ships
bear Hawaiian names, the Company's services have long been synonymous with 
Hawaii.

Two important Matson subsidiaries continued to benefit its operations and
financial results during 1995. Matson's contract stevedoring subsidiary, Matson
Terminals, Inc., also serves three international carriers, spreading the fixed
costs of terminals over greater volume. Matson Intermodal System, Inc. (MIS)
arranges overland transportation for Matson and many other carriers. Because
MIS is not committed to use any proprietary rail service, it is free to search
out the carriers offering the lowest cost and best schedule for cargo
originating from inland points nationwide.

Shipping Rates

On November 21, 1995, Matson filed a 3.8-percent general rate increase that
became effective on January 28, 1996, as scheduled. Barring unforeseen
circumstances, Matson has no plans to seek additional across-the-board
increases during 1996. In the ten-year period ending in 1994, Honolulu's
Consumer Price Index has risen 57 percent and the U.S. CPI has risen 42
percent, but Matson's rates have increased just 23 percent.

1996 Labor Negotiations

Present labor contracts with the International Longshoremen's and
Warehousemen's Union bargaining units on the West Coast and in Hawaii will
expire in July 1996. In addition, contracts expire in mid-June with unlicensed
seagoing crew members. Matson anticipates that the contracts will be
renegotiated in the normal course of business, without any disruption to 
service.

Issues, Plans to Address Them

Support for the Jones Act:  Periodically, Congress re-examines the legislation
under which Matson and other companies serve the U.S. domestic shipping trades.
The present law, commonly known as the Jones Act, is one of many similar laws,
enacted since 1789, that have reserved for American citizens the exclusive
right to offer shipping services between two ports within the U.S. Similar laws
reserve airline service, telecommunications and public utility businesses for
U.S. citizens.

The current deregulatory climate in Congress has prompted Matson to join with
over 400 other organizations in founding the broad-based Maritime Cabotage Task
Force, to educate the public on the economic, national security, environmental
and safety benefits of the Jones Act. In short, because vessels are governed by
the laws of the country where the vessel is documented, U.S. vessels must
comply with safety, environmental, labor practices and other policies that
have been deemed important and proper for the conduct of business in this
country. Other countries' vessels do not have these obligations and their
attendant costs, nor do they adhere to the same standards. It is Matson's
intent to support the Jones Act actively and to take a leadership role in
demonstrating the efficiency, commitment and innovation that is found in the
unsubsidized U.S. domestic fleet.

Competition, Hawaii's Economic Pause:  The Hawaii trade is highly competitive
and, in the past five years, fundamental economic factors have limited growth
in cargo. Matson has remained, and plans to continue as, the premier carrier in
the trade. This commitment is evidenced by Matson's substantial investments in
the trade and by its competitive advantages in number of sailings, on-time
arrivals, capacity, variety of container equipment and other unique services.

Operating Profit Outlook

In 1996, due primarily to economic conditions, Matson expects Hawaii freight
volume to be comparable to 1995. Revenue will benefit, however, from the new
cargo carried to Guam. Operating profit will improve moderately with the net
contribution of that cargo, plus the benefits of lower eastbound Hawaii Service
costs and improved subsidiary contributions. Earnings also should benefit from
the continued growth of the Pacific Coast service.

ABHI

[Photo caption:
W. Allen Doane, President and Chief Operating Officer, A&B-Hawaii, Inc.]

[Photo caption:
Steady progress in the development of Maui Business Park is evident in the new
roadways, at the center of this photo. Constructed on former sugar-growing
lands near Maui's airport and at the intersection of several major roads, Maui
Business Park is receiving deserved interest among potential buyers. Sales of
the first lots in the first phase closed in December 1995.]

[Photo caption:
To attract buyers in a very selective market, recent A&B developments have
ranged from agricultural subdivisions, where buyers acquire large lots and
build their own dwellings (upper), to moderately priced townhouses (lower).]

[Photo caption:
Finished products at A&B developments in Kahului, Maui. Eagle Distributor's new
warehouse (above) handles Budweiser and other popular beverage products island-
wide.  A Matson customer, Eagle constructed the warehouse in the Kamehameha
Parkway industrial subdivision, built by A&B. A&B is leasing the distinctive
Apex Building (above, right) to new commercial users at the Triangle Square
development. Also at Kamehameha Parkway (right) is a medical building, offering
a variety of physicians' services.]

[Photo caption:
During 1995, A&B acquired two shopping centers to replace one sold in 1994. The
photos above and to the left are of the 168,000 square-foot regional shopping
center called Airport Square, located in fast-growing Reno, Nev.]

[Photo caption:
From the field to the sugar bowl. It is hard to visualize the massive scale of
modern sugar cultivation and harvesting. A cane hauler at HC&S carries 65 tons
of cane from a field to the sugar mill, where it is processed into raw sugar
for transport to the Mainland and refining into more familiar forms of sugar
products.]

[Photo caption:
Coffee production has qualities of both a science and an art. A taster in the
photo (upper left) samples the quality of coffee brewed from separate batches
of Kauai Coffee. Estate-grown Kauai Coffee products packaging (top): green
beans in a burlap sack; roasted, for restaurant use, in the plastic pack and,
for retail, in smaller foil bags. Raw sugar for re-export. Benefiting from
economies of scale, C&H refines foreign sugar and re-exports the finished
products (left).]

[Photo caption:
The massive scale and sophistication of the new 240 megawatt cogeneration plant
adjacent to C&H's Crockett, Calif. refinery is apparent in this photo. Full-
scale operations are scheduled for May 1996.]


The property development and management, and food products operations of
Alexander & Baldwin, Inc. (A&B) are conducted by A&B-Hawaii, Inc. (ABHI).
ABHI's operations extend from the cultivation of sugar cane in the fertile
central valley of Maui to the refining and distribution of sugar throughout the
Western United States, and from the development of master-planned communities
in Hawaii to the management of prime commercial, light industrial and retail
properties on the Mainland.

ABHI is responsible for the stewardship of some of A&B's most valuable assets,
its extensive landholdings in Hawaii. In all of its property-related
activities, both in Hawaii and elsewhere, ABHI strives to be a responsible
steward of the land, employing its landholdings at their highest and best use,
consistent with community needs.

The extent and nature of the Company's landholdings dictate that, for the
foreseeable future, the highest and best use of the vast majority of its land
is for agriculture and conservation.  ABHI's own agribusiness operations
utilize 40,000 acres of land for sugarcane and coffee cultivation. Because
sugar cane currently is the best crop for a large percentage of the Company's
cultivatable land, A&B is committed to improving the efficiency and profit-
ability of its sugar operations.

In 1993, A&B purchased, through ABHI, the portion of California and Hawaiian
Sugar Company, Inc. (C&H) that it did not already own. C&H refines raw cane
sugar in the San Francisco Bay area and in Hawaii, and distributes industrial
and grocery products throughout the Western United States.

Property Development and Management


Segment Description

The property development and management activities of A&B are conducted by ABHI
and its subsidiary, A&B Properties, Inc. At year-end 1995, A&B owned
approximately 92,800 acres, including 68,800 acres on Maui, 21,900 acres on
Kauai, and 2,000 acres elsewhere. An additional 19,000 acres on Maui and Kauai
are leased from others. Approximately 91,500 acres owned by A&B are planted in
sugar cane and coffee or are employed in other agricultural, conservation or
related uses. Currently, about 1,300 acres are fully zoned for urban use. An
estimated 9,700 acres in Hawaii that now are zoned for agriculture or non-urban
uses have foreseeable urban potential.

The combination of the large amount of land that the Company owns and the
location of that land provides A&B the opportunity to serve growing 
residential, commercial and industrial markets on Maui and Kauai.

A&B also owns a diversified portfolio of commercial and industrial income-
producing properties. That improved property includes approximately 2.8 million
square feet in Hawaii and in five Western states.

The following directional statements guide the activities of A&B Properties:

Maintain a market-oriented pace of entitlements and related development as well
as sales activity;

Provide new sources of recurring income and cash flow, through leasing;

Redevelop existing properties in the Company's portfolio, when appropriate, to
ensure they are at their highest and best use; and

Develop and manage a geographically diversified portfolio of commercial,
industrial and residential properties.

Operating Results

In 1995, property development and management operations provided six percent of
A&B's revenue and 38 percent of its operating profit. For explanations of year-
to-year changes in results, please refer to Management's Discussion and
Analysis beginning on page 25.

                     1995      1994      1993
                     ----      ----      ----
                         (in thousands)

Revenue:
     Leasing        $34,073   $33,387   $32,606
     Sales           25,835    60,767    32,559
                    -------   -------   -------
         Total      $59,908   $94,154   $65,165
                    =======   =======   =======

Operating Profit:*
     Leasing        $23,063   $23,163   $22,975
     Sales           14,497    18,522    18,570
                    -------   -------   -------
         Total      $37,560   $41,685   $41,545
                    =======   =======   =======
                    
*Before interest expense, corporate expense and
 income taxes


1995 Progress

Entitlements

Work to obtain entitlements for urban use in 1995 focused on: the Kukui'ula
residential development on Kauai, the proposed master-planned residential
community at Pilot Hill in California and the continued participation in the
update of the County of Maui's community plans.

In May 1995, the Hawaii State Land Use Commission approved urban
reclassification of 822 acres at Kukui'ula. Approval was granted for 537 acres
immediately and for 285 additional acres when certain on- and off-site
improvements are completed. At year-end, the County of Kauai approved rezoning
of 514 acres for development. Adding that approval to 213 acres previously
approved, the total reconfigured first phase of development is 727 acres.
Renewal of construction, however, awaits improved economic conditions on Kauai,
especially in housing demand.

Pilot Hill, an 1,800-acre parcel located in El Dorado County, California, is
expected to be developed as a master-planned residential community. El Dorado
County, located 40 miles northeast of Sacramento, completed the legally man-
dated update of its General Plan on January 12, 1996. The project was
designated a "planned community" in the new plan.

The Company continues to pursue a number of projects as part of the ten-year
update of Maui's community plans. Community plans in Hawaii generally are the
first step in the lengthy governmental land approval process, creating a
"blueprint" for planned development activity over the following decade. A&B is
seeking various urban designations for portions of its undeveloped land within
four Plan regions where most of the Company's holdings are located.

Development

The largest and most prominent development activity in 1995 was the construc-
tion of on- and off-site improvements for Maui Business Park, a light
industrial/commercial business park located near Maui's primary airport and
commercial harbor. Ultimately planned to consist of about 240 acres, Maui
Business Park's construction last year included mass grading, roads, utilities
and landscaping for phase IA (42 acres), and mass grading for phase IB (34
acres), plus substantial off-site drainage and sewer work. Significant off-site
road work remains to be completed during 1996.

Nearby, Maui's first Costco opened for business in May 1995. The facility was
constructed by Costco on a 13-acre parcel ground-leased from A&B. Across the
street, the 28,000 square foot Apex Building, developed by A&B and completed in
1995, is now 30-percent leased.

Other projects constructed on Maui in 1995 include Kahului Ikena, a 102-unit
townhouse project. Kahului Ikena sales commenced in June 1995. Also, grading,
drainage and on-site improvements were nearly finished by year-end on a
21-acre, 92-lot residential project called Ku'au Bayview, at Pa'ia, on Maui's
rural North Shore. Construction of two model homes is underway, which is
expected to reinforce already active interest in the house/lot packages to be
offered.

Sales  Activity

Large Parcel Sales

In the fourth quarter of 1995, 38 acres in the Spreckelsville, Maui area were
sold in bulk to a developer for $2.4 million. The buyer intends to continue
with A&B's plans for subdivision of the property into 17 lots.

Improved Lot Sales

At Maui Business Park, the sale of 5.5 acres and lease of 14.5 acres closed in
late 1995 for a site planned by a local developer for a 275,000 square-foot
value retail center. Marketing of the 32 lots in Phase IA of Maui Business Park
also commenced in late 1995. Three of these lots, comprising 1.3 acres, closed
in December for $1.7 million.

                             Total    Available   Sold   Available
                            Salable       In       In       In
Project                      Units       1995     1995     1996
- -------                     -------   ---------   ----   ---------

Maui Business
     Park (Phase IA)          32          32        3        29
Kamehameha
     Parkway
     Business Park            35           4        4         -
Port Allen
     Industrial lots           5           5        4         1

Through 1995, four lots in the Kamehameha Parkway industrial subdivision in
Kahului, Maui, encompassing  a total of 1.4 acres, were sold for $2.1 million.
These sales closed out the 35-lot project. On Kauai, four lots in the Port 
Allen development, comprising 1.4 acres, were sold for $900,000.

Residential, Agricultural
Subdivision Sales

During 1995, 22 lot sales in Haiku Mauka were closed, at prices averaging
$169,000. Approvals are being sought for additional agricultural lot
subdivisions on Maui.

There were 21 sales during 1995 at the Kahului Ikena condominium project, at an
average price of $150,000.

                             Total    Available   Sold   Available
                            Salable      In        In       In
Project                      Units      1995      1995     1996
                            -------   ---------   ----   ---------

Haiku Mauka                    39        32        22       10
Kahului Ikena                 102       102        21       81
Eleele Nani II                146        10         4        6
Ku'au Bayview                  92      Under        -       92
                                      Constr.

On Kauai, sales activity continued at Eleele Nani II, the Company's mixed-use
housing project. In 1995, four lots were sold, at an average price of $118,000.

Growing Leased Property Portfolio

Hawaii Portfolio

The Hawaii leased property portfolio consists of improved properties and ground
leases. The portfolio continued to enjoy relatively high occupancy levels in
spite of the sluggish economy.  Occupancy averaged 90 percent over the course
of the year.

Aesthetic improvements to the (44-year old) Kahului Shopping Center were
initiated in 1995, resulting in a favorable response by local merchants to
leasing initiatives.

Mainland Portfolio

The Mainland portfolio, containing about 2.1 million square feet of leasable
area, achieved an average occupancy level of 97 percent in 1995. Two new
properties were acquired in 1995 to replace a Denver shopping center sold in
December 1994. Airport Square, a 168,000 square foot regional center, located
in Reno, Nevada, is anchored by PetsMart and Office Depot. It also benefits
from an adjoining Costco store. The second acquisition  was Market Square, a
43,000 square foot neighborhood center in Greeley, Colorado. Tenants include
Blockbuster Video and Chili's Bar & Grill.

Issues, Plans to Address Them

Kauai Economy, Kukui'ula Development:  The Kauai economy has yet to recover
fully from Hurricane Iniki's effects and from the statewide economic doldrums.
Several hotels remain closed.  Unemployment on that island remains about nine
percent. In response to these conditions, further investment in the Kukui'ula
project will continue to be deferred until prospects for housing and commercial
demand improve.

Overall Real Estate Demand:  Consumers' concerns and public and private
employment cutbacks have had a negative effect on real estate activity
statewide. Although selling prices generally have remained stable, there is
downward pressure on lease rates for office, retail and industrial space. The
introduction of value retailing has benefited A&B through its ground leases to
several large participants, but the new competition has heightened pressure on
the existing retailers in those markets. A&B has been fortunate that Maui has
enjoyed stronger economic activity than the rest of the State, and most of the
Company's projects and land holdings are favorably located on that island. The
present market circumstances, however, call for care and selectivity regarding
investment to ensure timely recovery of invested capital.

Operating Profit Outlook

Property leasing revenue and operating profit are both expected to be higher in
1996 than in 1995. The leased property portfolio is expected to improve its
results due to a full-year contribution by the new Costco ground lease, other
new tenancies and the two new Mainland shopping centers. Property sales revenue
likely will be higher, but the sales mix will consist of more lower-margin
properties, such as residential subdivisions, versus large parcels, which may
lead to moderately lower operating profit for that part of the segment's
results.

Continued efforts to enhance the future value of the property portfolio through
entitlement gains also are an important contributor to future shareholder
value. These efforts will continue throughout 1996, both for Hawaii and
Mainland properties.

                                    Hawaii
                           ------------------------
(In acres)                   Maui   Kauai     Total   Mainland   Total
                             ----   -----     -----   --------   -----
                             
Fully Entitled Urban          393      796    1,189       139     1,328
Agr/Pasture/Misc           52,947    8,108   61,055     1,901    62,956
Conservation               15,500   13,000   28,500         -    28,500
                           ------   ------   ------    ------    ------
     Total                 68,840   21,904   90,744     2,040    92,784
                           ======   ======   ======    ======    ======

Designated Urban              613      373      986     1,841     2,827
Urban Potential             6,245    3,450    9,695         -     9,695

Food Products

Segment Description

ABHI's food products segment includes the sugar production operations of
Hawaiian Commercial & Sugar Company (HC&S) on Maui and McBryde Sugar Company,
Limited (McBryde) on Kauai, the coffee production and marketing activities of
Island Coffee Company, Inc. (Island Coffee) on Kauai, as well as the sugar
refining and marketing operations of C&H. A&B is the largest sugar producer in
Hawaii, having grown about 45 percent of the State's total crop in 1995. 
ABHI's two plantations produce raw sugar, molasses, coffee and surplus electric
power which is sold to utilities. C&H is the largest sugarcane refiner in the
Western United States, supplying to consumer and industrial markets about 16
percent of the refined cane sugar produced in the country.

A&B remains committed to a healthy and efficient agricultural industry in
Hawaii. The Company has adopted a three-part strategy to guide its food
products operations: While taking steps to reduce operating costs and increase
efficiency, lay the groundwork for long-term operating success at C&H through
improvements to the refinery, extension of the C&H brand and examination of
marketing opportunities throughout North America.

Sustain profitable sugar production through the expansion of cultivated acreage
and improvements in technology and agronomy at HC&S.

Pursue the best long-term strategy for production and marketing of its premium,
estate-grown Kauai Coffee.

Operating Results

In 1995, food products operations provided 36 percent of A&B's revenue. The
operating loss in the segment, however, totaled $27,797,000, including an
$8,100,000 provision for cessation of sugar operations at McBryde and a
$3,800,000 charge for writing-down certain operating assets at C&H.  For
explanations of year to year changes in results, please refer to Management's
Discussion and Analysis on page 25.

                      1995      1994      1993
                      ----      ----      ----
                          (in thousands)

Revenue             $363,944  $441,209  $304,007
Operating Profit
     (Loss)*        $(27,797) $   (418) $ 12,692

*Before interest expense, corporate expense
 and income taxes

1995 Progress

C&H
As expected, 1995 was a very difficult year for C&H. Continuing ineffective
administration of sugar price supports by the U.S. Department of Agriculture,
and an excess supply of beet sugar prolonged and deepened the financial plight
of all U.S. cane sugar refiners. Relatively high raw cane sugar prices combined
with low prices for refined sugar products to destroy normal refiners' margins.
These difficult external circumstances were exacerbated by a six-week strike by
C&H refinery workers during September and October of 1995.

Part of the potential recognized in the acquisition of C&H in June 1993 was
that the organization could be made more competitive, by transforming C&H from
an agricultural co-op to an independent refiner/marketer. A comprehensive
"benchmarking" study was prepared, comparing C&H's costs with those of other
companies in the industry. A number of areas were identified where C&H could
significantly streamline its operations and reduce operating costs. As a
result, an announcement was made late in December 1995 that nearly one-quarter
of the entire work force, from both the bargaining and non-bargaining units,
would not return to C&H after the normal year-end shut-down period. This
restructuring is projected to yield savings exceeding $8 million annually.
The step, however difficult, was essential for continued successful operation
of the business.

With the restructuring, C&H will be more competitive within its industry and
with other caloric sweetener producers. For the sugar refining business to
achieve financial returns commensurate with its cost of capital, however,
further improvements are necessary and planned. The refiners' prospects also
could be influenced significantly by the outcome of the current congressional
debate on the reform of U.S. agricultural programs.

Construction continued during 1995 on a 240-megawatt cogeneration plant being
built by a third party adjacent to the C&H refinery at Crockett. Now planned
for initial full-scale operation in May 1996, the plant will use natural gas to
produce steam and electricity.  The steam will be used to power the C&H
refinery, significantly reducing its energy costs.

Agribusiness

Sugar - Although the high raw sugar prices that hurt C&H`s results benefit
A&B's sugar plantations, 1995 presented additional challenges that offset the
gains at HC&S. Sugar production at that plantation was just 11.2 tons of sugar
per acre (TSA), the lowest level in ten years. A number of factors appear to
have caused this decrease in yield but record low levels of rainfall is the
most significant. HC&S and industry scientists have critically reviewed sugar
cane varieties, weather factors, and fertilization, cultivation and irrigation
practices. As a result of this analysis steps have been taken to mitigate the
adverse effects. Initial improvements will be seen in the 1996 harvest but,
because sugar cane in Hawaii is grown on a two-year cycle, the improvement will
be more apparent in the 1997 harvest.

In June 1995, A&B announced that sugar operations at McBryde would be phased
out. The last harvest is scheduled to end in September 1996 and all anticipated
costs will be covered by the $8,100,000 pre-tax charge taken in June 1995.

Approximately 6,200 acres of land used for sugar production at McBryde were
leased from others. Under provisions of the leases, this acreage will be
returned to its owners when sugar harvesting is completed. Approximately 4,000
acres of land at McBryde remains planted in coffee.

Coffee - Operations at Island Coffee continue to develop and show promise. 
Total green coffee produced during the 1995 harvest, nearly 1.8 million pounds,
was about 30-percent higher than that in 1994. Both the quality of the crop and
per-acre recovery rate improved. The Company is marketing the bulk of the green
(unroasted) coffee on the Mainland. The larger crop and better quality are
attracting buyers' interest. Sales in Hawaii of roasted and packaged coffee
products also continue to increase. Coffee production is expected to rise again
in the 1996 harvest.

Power - Sales of power from HC&S and McBryde to local electric utilities
totaled 118,000 MW hours, versus 122,000 in 1994. Unusually low rainfall on 
Maui during the year necessitated greater use of power for irrigation pumping
and lessened the amount of power available for sale.

Agribusiness operating statistics for the past three years were:

                    1995        1994      1993
                    ----        ----      ----
                    
Raw sugar
     produced
     (tons)         222,000     223,000   240,000
Molasses                                 
     produced
     (tons)          73,000      67,000    68,000
Electricity sold
     (megawatt
     hours)         118,000     122,000   118,000
Green coffee
     produced
     (pounds)     1,770,000   1,365,000   550,000
Cultivated
     acreage:
        Sugar        40,400      43,000    43,000
        Coffee        4,000       4,000     4,300

Issues, Plans to Address Them

National Sugar Legislation - The original goal of the U.S. sugar programs was
to insulate U.S. consumers and producers from the volatility of the world
market, by establishing market prices that would allow efficient producers to
survive and to ensure ample supplies of a wide variety of reasonably priced
sugar products to consumers, at no cost to the taxpayer. Because the country
is a net importer of sugar, regulating the amount of imported raw cane sugar
is the primary mechanism used under current law to control sugar prices. The
increasing diversity, complexity and dynamics of the U.S. sweetener market has
revealed serious flaws in this simplistic approach to price control. The result
has been unintended market distortions. Among other things, reduced import
quotas inflated the price of raw cane sugar above the price of refined sugar
products. As a result, operating margins of sugarcane refiners which market
half the sugar consumed in the country, have been negative.

Current legislative proposals do not provide meaningful relief to cane
refiners. C&H continues to participate in the legislative process with other
industry groups and to encourage reform that better balances the needs of all
industry segments. The outcome of these on-going deliberations remains
uncertain but new agricultural bills are expected to be brought to a vote in
the House and Senate during the first quarter.

HC&S Costs and Yields - To preserve their already thin operating margins,
growers of sugar cane must constantly work to reduce their costs. HC&S has, for
many years, successfully pursued a steady stream of cost-saving and cost-
cutting measures. In addition, its work on new cane varieties and other forms
of yield improvement have contributed greatly to its success. During 1996 and
thereafter, as the industry becomes more competitive and costs rise, the
importance of similar initiatives to achieve continuous improvements will
become greater.

Coffee - This relatively new business is still in a developmental stage, with
marketing the larger crop a major focus in the near future. Its overall
contribution to profit is not expected to be significant in the near term.

Operating Profit Outlook

With no consensus now apparent regarding new farm legislation, and with the
present law expiring in September 1996, there continues to be uncertainty about
the business prospects for this segment. The recent restructuring at C&H,
however, will provide a substantial and favorable improvement for operations
and financial performance. Two increases in sugar import quotas announced by
the U.S. Department of Agriculture, and reports of firming refined product
prices also will help improve refiners' margins. But, in the absence of
meaningful progress toward legislative reform and more favorable terms of new
legislation, the food products segment is unlikely to return to acceptable
levels of profitability and financial returns in the next year.

General Information

[Photo caption:
Because Maui is central to A&B's history, the 125th anniversary of Alexander &
Baldwin, Inc., was the occasion for a community gathering on the grounds of the
new Maui Community Arts and Cultural Center. Along with Hawaiian food
delicacies, being enjoyed by these gentlemen, the day also provided many A&B
retirees, employees and families the opportunity to enjoy each other's company
and many fond memories.]

Board of Directors

Members of the current Board of Directors, including one advisory director,
beneficially own approximately seven percent of A&B shares.

At the Annual Meeting of Shareholders on April 27, 1995, shareholders elected a
total of 10 directors, all of whom were nominated by the Board. Re-elected were
Michael J. Chun, John C. Couch, Leo E. Denlea Jr., Walter A. Dods Jr., Charles
G. King, Carson R. McKissick, C. Bradley Mulholland, Robert G. Reed III,
Maryanna G. Shaw and Charles M. Stockholm. Alexander C. Waterhouse serves as an
advisory director at the pleasure of the Board.

R. J. Pfeiffer, Chairman of the Board since 1980 and a director since 1978, did
not stand for re-election, having advised the Board that he wished to retire.
Mr. Pfeiffer stepped down as Chairman, effective March 31, 1995. At the
February 1995 meeting of the Board of Directors, John C. Couch was elected to
succeed Mr. Pfeiffer as Chairman, effective April 1, 1995. The Board also
elected Mr. Pfeiffer to the honorary position of Chairman Emeritus.

Management, Organization

W. Allen Doane, executive vice president and chief operating officer of ABHI,
was appointed president and chief operating officer of ABHI, effective April 
27, 1995.

Kevin C. O'Rourke, vice president and general counsel of Matson, was appointed
senior vice president and general counsel of Matson, effective April 27, 1995.

Paul E. Stevens, vice president (marketing) of Matson, was appointed a senior
vice president of Matson, effective April 27, 1995.

Frederick M. Gutterson, senior vice president of Matson, and president and 
chief executive officer of Matson Leasing, left the Company in the course of
the sale of Matson Leasing.

[Graph: Ten year history of year-end stock price plus dividends per share.
Data is available in the Eleven-Year Summary of Selected Financial Data.]


Common Stock

A&B's common shares trade under the symbol ALEX on The NASDAQ Stock MarketSM.
A summary of daily stock transactions is listed in the NASDAQ National Market
Issues section of major newspapers. Trading volume averaged 86,022 shares a day
in 1995, compared with 85,594 shares a day in 1994 and 99,569 in 1993.
Currently, 16 firms make a market in ALEX.

High and low sales prices per share, by quarter, for 1995 and 1994 were:

Quarter              1995                1994
- -------              ----                ----

First          $24-1/4 - 20-1/2     $28-1/4 - 24-5/8
Second          25-1/2 - 21-3/4      26-1/4 - 23-3/4
Third           25-1/2 - 22-1/4      26-3/4 - 24-3/4
Fourth          24-1/4 - 22-1/2          26 - 21-1/4

[Graph: Stock Price Range by Quarter
Data points are in the above table.]

Dividends

A&B strives to pay the highest possible dividends commensurate with operating
and capital needs. The Company has paid cash dividends in every quarter since
1903. The quarterly dividend rate last was increased in the second quarter of
1990, from 20 cents a share to 22 cents.

Credit Ratings

As discussed in Note 8 to the financial statements, Matson has outstanding
commercial paper notes aggregating approximately $149 million. These notes are
rated A-1/P-1/D-1 by Standard & Poor's, Moody's, and Duff & Phelps,
respectively. Standard & Poor's rates Matson's senior debt as A-.

C&H has outstanding commercial paper aggregating $97 million. The commercial
paper notes are rated A-2/P-2 by Standard & Poor's and Moody's, respectively.

Quarterly Results (Unaudited)

Segment results by quarter for 1995 and 1994 are listed below (in thousands,
except per share amounts).


<TABLE>
<CAPTION>

                                                         1995                                    1994
                                        --------------------------------------  --------------------------------------         
                                        4th Qtr.  3rd Qtr.  2nd Qtr.  1st Qtr.  4th Qtr.  3rd Qtr.  2nd Qtr.  1st Qtr.
                                        --------  --------  --------  --------  --------  --------  --------  --------
<S>                                     <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>           
Revenue:
   Ocean transportation                 $148,595  $150,507  $149,663  $145,042  $154,318  $154,542  $159,403  $136,491       
   Property development & management:
     Leasing                               8,805     8,746     8,441     8,081     8,322     8,298     8,315     8,452
     Sales                                16,437     2,403     2,874     4,121    45,940     2,136     4,082     8,609
   Food products                          83,613    83,946   108,588    87,797   133,569   118,983   103,209    85,448
   Other                                     730       684       701       681     1,748       697       666       805
                                        --------  --------  --------  --------  --------  --------  --------  --------
        Total revenue                   $258,180  $246,286  $270,267  $245,722  $343,897  $284,656  $275,675  $239,805
                                        ========  ========  ========  ========  ========  ========  ========  ========

Operating Profit:
   Ocean transportation                 $ 23,220  $ 26,592  $ 20,855  $ 17,102  $ 23,322  $ 22,114  $ 29,591  $ 22,292
   Property development & management:
     Leasing                               5,827     6,033     5,729     5,474     5,382     5,709     5,896     6,176
     Sales                                10,949       328     1,524     1,696     9,115       748     3,124     5,535
   Food products                          (8,217)   (4,350)  (11,388)   (3,842)    1,036    (1,404)       14       (64)
   Other                                     684       640       656       613     1,146       636       733       628
                                        --------  --------  --------  --------  --------  --------  --------  --------
        Total operating profit            32,463    29,243    17,376    21,043    40,001    27,803    39,358    34,567
                                   
Interest expense                           8,753     9,513     7,711     7,452     7,300     6,457     7,102     6,843
General corporate expenses                 2,690     3,462     4,224     4,366     3,941     4,653     4,143     4,659
                                        --------  --------  --------  --------  --------  --------  --------  --------
Income before income taxes                21,020    16,268     5,441     9,225    28,760    16,693    28,113    23,065
Income taxes                               8,440     5,923     1,901     3,271     9,032     5,669     9,847     8,104
                                        --------  --------  --------  --------  --------  --------  --------  --------
Income from continuing operations         12,580    10,345     3,540     5,954    19,728    11,024    18,266    14,961
Discontinued operations:
   Income from MLC operations                  -         -     2,730     2,606     3,223     2,788     2,668     1,950
   Gain on sale of MLC                       794         -    17,206         -         -         -         -         -
                                        --------  --------  --------  --------  --------  --------  --------  -------- 
Net income                              $ 13,374  $ 10,345  $ 23,476  $  8,560  $ 22,951  $ 13,812  $ 20,934  $ 16,911
                                        ========  ========  ========  ========  ========  ========  ========  ========
Earnings per share                         $0.30     $0.23     $0.51     $0.19     $0.50     $0.30     $0.45     $0.37
                                        ========  ========  ========  ========  ========  ========  ========  ========

</TABLE>



<PAGE>

FINANCIAL REPORT

  21   Independent Auditors' Report

  22   Eleven-Year Summary of Selected Financial Data

  24   Industry Segment Information

  25   Management's Discussion and Analysis

  28   Statements of Income

  29   Statements of Cash Flows

  30   Balance Sheets

  32   Statements of Shareholders' Equity

  33   Notes to Financial Statements








INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS OF ALEXANDER & BALDWIN, INC.:

We have audited the accompanying balance sheets of Alexander & Baldwin, Inc.
and its subsidiaries as of December 31, 1995 and 1994, and the related
statements of income, shareholders' equity, and cash flows for each of the
three years in the period ended December 31, 1995 (pages 24 and 28 to 39).
These financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of Alexander & Baldwin, Inc. and its
subsidiaries at December 31, 1995 and 1994, and the results of their operations
and their cash flows for each of the three years in the period ended December
31, 1995 in conformity with generally accepted accounting principles.

As discussed in Note 4 to the financial statements, the Company discontinued
the container leasing segment of its operations in June 1995, when it sold
certain assets and liabilities of Matson Leasing Company, Inc.  The gain on
sale and results of operations prior to the sale are included in discontinued
operations in the accompanying financial statements.

As discussed in Note 7 to the financial statements, in 1994 the Company changed
its method of accounting for investments to conform with Statement of Financial
Accounting Standards No. 115.

DELOITTE & TOUCHE LLP
Honolulu, Hawaii
January 25, 1996


 

<TABLE>
Eleven-Year Summary of Selected Financial Data
(Dollars and shares in thousands except per-share amounts)
Alexander & Baldwin Inc. and Subsidiaries
<CAPTION>

                                               1995             1994           1993          1992          1991
                                           -----------      -----------     ---------     ---------     ---------
<S>                                       <C>              <C>             <C>           <C>           <C>
Annual Operations:
Net sales and other
  operating revenue                        $ 1,020,455      $ 1,144,033     $ 923,804     $ 703,948     $ 715,984

Deduct:
  Cost of goods sold and
  operating expenses                           926,972        1,019,700       794,880       583,593       565,105
  Plantation closure                             8,100            -              -             -             -
  Interest expense                              33,429           27,702        28,802        23,881        24,575
  Hurricane loss                                 -                -              -           24,803          -
  Income taxes                                  19,535           32,652        41,386        19,044        42,359
                                           -----------      -----------     ---------     ---------     ---------
Income from continuing
  operations                                    32,419           63,979        58,736        52,627        83,945

Income (loss) from
  discontinued operations                       23,336           10,629         8,253         7,878         4,861

Cumulative effect of change
  in accounting principle                        -                -              -          (41,551)         -
                                           -----------      -----------     ---------     ---------     ---------
Net income                                    $ 55,755         $ 74,608      $ 66,989      $ 18,954      $ 88,806
                                           ===========      ===========     =========     =========     =========

Earnings per share:
  Income from continuing
    operations                                  $ 0.72           $ 1.39        $ 1.27        $ 1.14        $ 1.82

  Income (loss) from
    discontinued operations                       0.51             0.23          0.18          0.17          0.10

  Cumulative effect of change
    in accounting principle                      -                -              -            (0.90)         -
                                           -----------      -----------     ---------     ---------     ---------
  Net income                                    $ 1.23           $ 1.62        $ 1.45        $ 0.41        $ 1.92
                                           ===========      ===========     =========     =========     =========

Return on beginning equity                         8.8%            12.7%         12.0%          3.3%         16.7%
Cash dividends per share                        $ 0.88           $ 0.88        $ 0.88        $ 0.88        $ 0.88
Average number of shares
  outstanding                                   45,492           46,059        46,338        46,294        46,213
Gross profit percentage                           20.2%            21.2%         24.9%         29.1%         31.9%
Effective income tax rate                         37.6%            33.8%         41.3%         26.6%         33.5%

Market price range
  per share:
  High                                        $ 25.500         $ 28.250      $ 28.000      $ 30.500      $ 29.500
  Low                                         $ 20.500         $ 21.250      $ 22.500      $ 21.500      $ 21.000
  Close                                       $ 23.000         $ 22.250      $ 26.750      $ 24.750      $ 28.250

At Year End:
  Shareholders of record                         6,357            6,729         7,056         7,507         7,749
  Shares outstanding                            45,280           45,691        46,404        46,333        46,229
  Shareholders' equity                       $ 649,678        $ 632,614     $ 587,006     $ 559,099     $ 578,669
     Per share                                   14.35            13.85         12.65         12.07         12.52
  Total assets                               1,782,759        1,925,775     1,904,742     1,676,635     1,547,648
  Working capital                               84,399           58,392        64,884        40,013        23,195
  Cash and cash equivalents                     32,150            8,987        32,295        20,827        18,675
  Property-net                                 973,514          975,672     1,032,983       888,621       882,513
  Real estate developments
    -noncurrent                                 56,104           66,371        54,919        50,977        36,362
  Long-term debt-noncurrent                    380,389          519,605       576,390       549,960       452,279
  Capital lease obligations
    -noncurrent                                 24,186           35,274        44,495        59,816        69,717
  Current ratio                                1.4 to 1         1.3 to 1      1.3 to 1      1.4 to 1      1.2 to 1
  Capital stock
    price/earnings
    ratio at December 31                      18.7 to 1        13.7 to 1     18.5 to 1     60.4 to 1     14.7 to 1

  All share and per-share amounts reflect the stock splits of 2-for-1 in 1988 and 3-for-2 in 1986.
  All Statement of Income and Balance Sheet data, and related ratios have been restated to reflect Matson Leasing Company
  as discontinued operations, due to the sale of its net assets in 1995.
</TABLE>



<TABLE>
Eleven-Year Summary of Selected Financial Data, Continued
(Dollars and shares in thousands except per-share amounts)
Alexander & Baldwin Inc. and Subsidiaries
<CAPTION>

                                               1990             1989           1988          1987          1986          1985
                                           -----------      -----------     ---------     ---------     ---------     ---------
<S>                                        <C>              <C>              <C>           <C>           <C>           <C>
Annual Operations:
Net sales and other
  operating revenue                          $ 747,550        $ 845,936     $ 701,908     $ 655,276     $ 536,668     $ 506,311

Deduct:
  Cost of goods sold and
  operating expenses                           552,236          512,499       495,234       470,928       409,563       399,362
  Plantation closure                             -                -              -             -             -             -
  Interest expense                              29,602           26,965        27,406        21,104        16,042        18,453
  Hurricane loss                                 -                -              -             -             -             -
  Income taxes                                  58,820          107,461        61,535        62,167           575        37,051
                                           -----------      -----------     ---------     ---------     ---------     ---------
Income from continuing
  operations                                   106,892          199,011       117,733       101,077       110,488        51,445

Income (loss) from
  discontinued operations                        1,075             (310)         -             -             -             -

Cumulative effect of change
  in accounting principle                        -                -              -             -             -             -
                                           -----------      -----------     ---------     ---------     ---------     ---------
Net income                                   $ 107,967        $ 198,701     $ 117,733     $ 101,077     $ 110,488      $ 51,445
                                           ===========      ===========     =========     =========     =========     =========

Earnings per share:
  Income from continuing
    operations                                  $ 2.32           $ 4.30        $ 2.35        $ 1.93        $ 1.97        $ 0.92

  Income (loss) from
    discontinued operations                       0.02            (0.01)         -             -             -             -

  Cumulative effect of change
    in accounting principle                      -                -              -             -             -             -
                                           -----------      -----------     ---------     ---------     ---------     ---------
  Net income                                    $ 2.34           $ 4.29        $ 2.35        $ 1.93        $ 1.97        $ 0.92
                                           ===========      ===========     =========     =========     =========     =========

Return on beginning equity                        23.5%            45.2%         31.7%         21.4%         27.9%         13.9%
Cash dividends per share                        $ 0.86           $ 0.80        $ 0.77        $ 0.68        $ 0.66        $ 0.47
Average number of shares
  outstanding                                   46,133           46,326        50,079        52,444        55,990        55,750
Gross profit percentage                           36.0%            48.5%         38.8%         37.2%         35.2%         33.3%
Effective income tax rate                         35.5%            35.1%         34.3%         38.1%          0.5%         41.9%

Market price range
  per share:
  High                                        $ 38.000         $ 39.500      $ 36.750      $ 32.000      $ 24.500      $ 14.750
  Low                                         $ 19.000         $ 31.250      $ 20.875      $ 16.000      $ 14.000      $ 10.875
  Close                                       $ 22.250         $ 37.500      $ 31.500      $ 21.625      $ 22.500      $ 14.250

At Year End:
  Shareholders of record                         7,860            7,650         7,201         6,859         6,749         6,662
  Shares outstanding                            46,201           46,096        50,099        50,347        56,095        55,789
  Shareholders' equity                       $ 530,298        $ 459,712     $ 439,729     $ 371,007     $ 473,283     $ 396,718
     Per share                                   11.48             9.97          8.78          7.37          8.44          7.11
  Total assets                               1,364,165        1,141,671     1,070,483       981,737       934,032       863,836
  Working capital                               55,340           33,906        35,974        42,262        67,533        87,418
  Cash and cash equivalents                     47,351           23,389        22,794        26,695        34,507        56,121
  Property-net                                 799,942          691,194       548,066       520,124       489,076       480,345
  Real estate developments
    -noncurrent                                 14,156            -              -             -             -             -
  Long-term debt-noncurrent                    315,851          196,954       174,715       172,014        94,512        97,978
  Capital lease obligations
    -noncurrent                                 86,392           95,241       100,306       106,935        90,818        96,337
  Current ratio                                1.5 to 1         1.4 to 1      1.4 to 1      1.5 to 1      1.9 to 1      2.3 to 1
  Capital stock
    price/earnings
    ratio at December 31                       9.5 to 1         8.7 to 1     13.4 to 1     11.2 to 1     11.4 to 1     15.5 to 1

</TABLE>



 
<PAGE>



<TABLE>

<CAPTION>

INDUSTRY SEGMENT INFORMATION
(In thousands)
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES
                                                     1995         1994         1993         1992         1991
                                                     ----         ----         ----         ----         ----

<S>                                               <C>          <C>          <C>          <C>          <C>
REVENUE:
   Ocean transportation........................   $  593,807   $  604,754   $  551,687   $  537,669   $  550,423
   Property development and management:
      Leasing..................................       34,073       33,387       32,606       30,386       27,702
      Sales....................................       25,835       60,767       32,559       27,529       24,634
   Food products...............................      363,944      441,209      304,007      104,053      110,947
   Other.......................................        2,796        3,916        2,945        4,311        2,278
                                                  ----------    ---------    ---------    ---------   ----------
        Total revenue .........................   $1,020,455   $1,144,033   $  923,804   $  703,948   $  715,984
                                                  ==========   ==========   ==========   ==========   ==========

OPERATING PROFIT:
   Ocean transportation........................   $   87,769   $   97,319   $   91,194   $   97,195   $  109,792
                                                  ----------   ----------   ----------   ----------   ----------
   Property development and management:
      Leasing..................................       23,063       23,163       22,975       21,357       19,953
      Sales....................................       14,497       18,522       18,570       17,720       20,852
      Hurricane loss...........................         -            -            -            (900)        -
                                                  ----------   ----------   ----------   ----------   ----------
                                                      37,560       41,685       41,545       38,177       40,805
                                                  ----------   ----------   ----------   ----------   ----------
   Food products:
      Before hurricane loss....................      (27,797)        (418)      12,692       (2,272)      16,123
      Hurricane loss...........................         -            -            -         (23,903)        -
                                                  ----------   ----------   ----------   ----------   ----------
                                                     (27,797)        (418)      12,692      (26,175)      16,123
                                                  ----------   ----------   ----------   ----------   ----------
   Other.......................................        2,593        3,143        2,357        4,263        1,957
                                                  ----------   ----------   ----------   ----------   ----------
        Total operating profit ................      100,125      141,729      147,788      113,460      168,677
   Interest expense............................      (33,429)     (27,702)     (28,802)     (23,881)     (24,575)
   General corporate expenses..................      (14,742)     (17,396)     (18,864)     (17,908)     (17,798)
                                                  ----------   ----------   ----------   ----------   ----------
        Income from continuing operations
        before income taxes ...................   $   51,954   $   96,631   $  100,122   $   71,671   $  126,304
                                                  ==========   ==========   ==========   ==========   ==========

IDENTIFIABLE ASSETS:
   Ocean transportation........................   $  997,230   $  853,933   $  882,335   $  958,669   $  944,092
   Property development and management.........      297,927      271,073      268,581      258,653      234,955
   Food products...............................      395,197      399,717      418,724      135,071      146,925
   Other.......................................       92,405       87,362       39,094       38,437       31,587
                                                  ----------   ----------   ----------   ----------   ----------
        Assets of contining operations.........    1,782,759    1,612,085    1,608,734    1,390,830    1,357,559
   Discontinued operations - container leasing.         -         313,690      296,008      285,805      190,089
                                                  ----------   ----------   ----------   ----------   ----------
        Total assets ..........................   $1,782,759   $1,925,775   $1,904,742   $1,676,635   $1,547,648
                                                  ==========   ==========   ==========   ==========   ==========

CAPITAL EXPENDITURES:
   Ocean transportation........................   $   46,872   $   29,676   $   53,745   $   64,333   $  141,157
   Property development and management.........        8,613       21,193       34,772       37,819       34,728
   Food products...............................       13,650       18,665       26,637        8,589       17,496

DEPRECIATION AND AMORTIZATION:
   Ocean transportation........................   $   57,619   $   55,663   $   55,738   $   52,829   $   51,381
   Property development and management.........        5,561        5,246        4,860        4,523        4,338
   Food products...............................       20,390       21,340       15,974       10,665       10,716

</TABLE>



<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

CONSOLIDATED EARNINGS

Net income for 1995 was $55,755,000, or $1.23 per share.  This included an
$18,000,000, or $0.40 per share, gain on the sale of Matson Leasing Company,
Inc.'s (Matson Leasing) net assets, which occurred in June 1995.  Also included
in 1995 net income was $5,336,000, or $0.11 per share, from the partial year
operations of Matson Leasing, offset by a $5,050,000, or $0.11 per share,
charge for the phasing-out of the Company's unprofitable sugar-growing
operations on the island of Kauai and a $2,384,000, or $0.05 per share,
write-down of a California and Hawaiian Sugar Company (C&H) operating asset.
Net income for 1994 was $74,608,000, or $1.62 per share, which included
$10,629,000, or $0.23 per share, from Matson Leasing's full year operating
results.

1995 COMPARED WITH 1994

OCEAN TRANSPORTATION revenue declined by two percent and operating profit
declined by ten percent in 1995 compared with 1994. These declines were due
primarily to decreases of nine percent and eight percent in Hawaii container
volume and automobile carriage, respectively, for 1995, compared with 1994
levels.  Both of these declines reflect primarily the continuing weaknesses in
certain sectors of Hawaii's economy, most notably construction and the sales of
automobiles and durable goods.  Also, the 1994 results benefited from a strike
by a competitor and the 1995 results were adversely impacted when that
competitor commenced, in mid-1995, an eastbound service from Honolulu to Los
Angeles.  Operating profit for 1995, however, benefited from higher shipping
rates and increased interest income.

PROPERTY DEVELOPMENT AND MANAGEMENT - LEASING revenue and operating profit were
approximately the same for 1995 and 1994. Occupancy rates for the Company's
U.S. Mainland properties averaged 97 percent for both years but occupancy
levels for developed Hawaii properties declined slightly to 90 percent in 1995,
from 92 percent in 1994.

PROPERTY DEVELOPMENT AND MANAGEMENT - SALES revenue of $25,835,000 for 1995 was
57 percent lower than in 1994; however, operating profit declined only 22
percent during the same period.  This was mainly due to the mix of property
sales.

The mix of property sales in any year can be diverse.  These sales can include
property sold under threat of condemnation, developed residential real-estate,
commercial properties, developable subdivision lots and undeveloped land.  The
sale of undeveloped land and subdivision lots generally provides a greater
contribution margin than does the sale of developed and commercial property,
due to the low historical-cost basis of the Company's Hawaii land, which
averages approximately $145 per acre.  Consequently, property sales revenue
trends and the amount of real estate held for sale in the balance sheets are
not necessarily indicators of future profitability for this segment.

Sales in 1995 included a 5.5 acre parcel and three individual lots in the
Company's 76-acre Maui Business Park, eight developed industrial lots, a
38-acre agricultural-subdivision parcel, 47 residential subdivision and
condominium units and the sales of various undeveloped land parcels.  Sales in
1994 included a shopping center in Denver; five developed industrial lots, two
undeveloped acres near the harbor at Kahului, Maui, 40 residential subdivision
and condominium units and various other parcels.

FOOD PRODUCTS revenue decreased 18 percent, due primarily to lower refined
sugar sales volume during a labor strike at C&H that began on September 8, 1995
and ended on October 17, 1995.  The segment's operating loss for the year was
$27,797,000, compared with a loss of $418,000 in 1994. The 1995 loss was due
primarily to the C&H strike, a $3,800,000 (pre-tax) write down of certain
operating assets of C&H, higher raw sugar costs, low refined sugar prices, a
pre-tax charge of $8,100,000 for phasing-out the Company's sugar operations on
Kauai, and lower sugar yields at the Company's Maui sugar plantation.

1994 COMPARED WITH 1993

OCEAN TRANSPORTATION revenue increased ten percent in 1994 compared with 1993,
due primarily to increased cargo (in part, a result of a month-long strike in
1994 affecting a competitor), higher rates and new customers served by the
Company's stevedoring and intermodal subsidiaries.  Operating profit rose seven
percent as a result of increased revenue, partially offset by higher fuel costs
and costs associated with the start-up of the Pacific Coast Service.  Hawaii
container volume and automobile carriage increased four and seven percent,
respectively, in 1994, compared with 1993 levels.

PROPERTY DEVELOPMENT AND MANAGEMENT - LEASING revenue and operating profit
increased slightly in 1994, compared with 1993.  In 1994, the occupancy rates
for the Company's U.S. mainland property and Hawaii property portfolios 
averaged 97 percent and 92 percent, respectively, compared with 93 percent and
94 percent, respectively, for 1993.

PROPERTY DEVELOPMENT AND MANAGEMENT - SALES revenue of $60,767,000 during 1994
was nearly double the 1993 revenue of $32,559,000.  The fluctuation was due
primarily to the mix of properties sold and the differing margins on the
various types of real-estate transactions.  The previously-described 1994 sales
compare with a significantly different mix of 1993 sales, which primarily
included one developed industrial lot, four undeveloped parcels and 101
residential lots.

FOOD PRODUCTS revenue increased 45 percent in 1994 compared with 1993, due
primarily to the full-year effect of the acquisition of C&H.  The operating
loss in 1994 of $418,000 represents a substantial decline from an operating
profit of $12,692,000 in 1993, due to poorer plantation yields, higher raw
sugar costs and lower selling prices for refined sugar.

SIGNIFICANT EVENTS IN 1995

DISCONTINUED OPERATIONS:  On June 30, 1995, the containers and certain other
assets of Matson Leasing were sold to XTRA Corporation (XTRA), and certain
liabilities were assumed by XTRA, for approximately $362 million.  Specifically
excluded from the transaction were Matson Leasing's long-term debt and U.S. tax
obligations.  The proceeds from the sale were used principally to repay debt,
to pay tax obligations and to fund the capital needs of the Company's ocean
transportation segment.

PACIFIC ALLIANCE SERVICE:  In 1995, the Company and American President
Companies, Inc. announced that their respective shipping subsidiaries had
signed a memorandum of understanding that outlined a 10-year strategic
operating alliance.  This alliance includes the purchase, by Matson, of six
containerships and certain assets on Guam from American President Lines, Ltd.
(APL) for approximately $168 million and the sharing of cargo-carrying capacity
of five Matson vessels including four of the vessels acquired from APL.  Under
a separate vessel-sharing agreement, Matson will operate and utilize five
vessels on westbound voyages from the U.S. Pacific Coast to Hawaii, Korea,
Japan and Guam and time charter the vessels to APL for return eastbound voyages
from the Far East.  The purchase of one vessel occurred in December 1995 and
the remaining vessel purchases occurred in January 1996.

PROFIT IMPROVEMENT INITIATIVES:  In September 1995, the Company began
implementing additional cost control initiatives affecting all of its
businesses.  Included in these initiatives are the planned sale of an airplane,
the freezing of executive salaries, the elimination of Company-owned executive
automobiles, staff reductions and process improvements.  Total Company-wide
reductions among non-bargaining employees, which began in 1995, are expected to
approximate ten percent of the non-bargaining work force.  Certain staff
reductions of bargaining-unit positions have also begun.  The bargaining-unit
reductions mainly have affected C&H and the Company's Kauai sugar operations.
During 1995, as part of its cost reduction initiatives, the Company relocated
the customer service operations of Matson to Phoenix, Arizona.

FOOD PRODUCTS CONCERNS:  Of particular concern to the Company is the 1995
operating loss of its food products segment.  The Company is actively working
to return operating results to acceptable levels.

In June 1995, the Company began the closure of its unprofitable sugar planta-
tion on Kauai.  This closure resulted in a 1995 pre-tax charge of $8,100,000,
but is expected to improve the future operating profit of the food products
segment by approximately $4 million annually.  The principal components of
the closure cost were the write-off of the sugar factory and other sugar-
related fixed assets, the write-off of materials and supplies inventories,
severance costs, and increases in self-insurance medical and workers'
compensation accruals.  These charges are partially offset by pension and
post-retirement benefit plan curtailment gains.  Approximately 200 employees
will be laid off during the closure process.  The final sugarcane harvest for
the Kauai plantation is expected to be completed in September 1996. 
Approximately 6,200 acres used for sugar cultivation were leased from others
and will be returned to the lessors at the completion of the sugar harvest. 
Most of the Kauai land owned by the Company already has been converted into
coffee production or is being considered for development.  Sugar production is
continuing at the Company's much larger Maui plantation.

The Company is also addressing concerns with declining yields at its Maui sugar
plantation.  A study of the problem revealed that the declines are temporary
and were caused primarily by water shortages and fertilizer deficiencies.
These matters are being corrected to the extent possible; however, due to the
two-year crop cycle and dry weather on Maui, the yields are not expected to
improve significantly in 1996.

Since the Company's acquisition of C&H in 1993, a number of initiatives have
been undertaken to improve operating margins for the sugar refining operations.
In particular, sugar refining results in 1996 will benefit from a significant
restructuring at C&H which was announced in late 1995.  The restructuring
resulted in a 25-percent reduction in the C&H work force at the start of 1996.
The ongoing savings from the work force reduction and the re-engineering of
refining operations are expected to improve the operating results of the 
segment by approximately $8 million annually.  Also, construction is
continuing, by a third party, of a cogeneration plant adjacent to C&H's primary
refinery.  When operational in 1996, the third party-owned plant will provide
steam to the C&H refinery, reducing energy costs by about 25-percent. 
Improvements also are being made to the refinery to increase its capacity to
handle imports of lower quality foreign raw sugar.

The ineffective administration of the federal sugar support program, combined
with an excess supply of beet sugar, continues to place pressure on C&H's
refining margins.  The government's attempts to prop up market prices by
limiting imports of raw cans sugar failed to do anything but artificially
inflate raw sugar prices.  At the same time the continued expansion of the beet
sugar industry depressed refined sugar prices creating negative margins for 
cane sugar refineries like C&H.

The prospects for the Company's sugar businesses will be influenced by new farm
legislation which is being considered by Congress.  The impact of these
deliberations and resulting legislation on the Company's operations cannot be
predicted at this time.  Management believes, however, that the impact could be
significant.

STOCK REPURCHASES:  In 1995, the Company repurchased 511,000 shares of its
common stock for an aggregate of $11,580,000.  These purchases were made in
accordance with a program, approved by the Board of Directors in December 1993,
to repurchase up to two million shares of the Company's stock.  The Company has
purchased a total of 1.2 million shares for $29,296,000 under this program
during the past two years.

FEDERAL MARITIME COMMISSION:  In October 1995, revised Federal Maritime
Commission (FMC) guidelines for determining a just and reasonable rate of 
return for the ocean transportation business became effective.  The changes
to the FMC's guidelines are not expected to have a material impact on the
Company's future operating results.  Additional discussion of this matter will
be included in the Company's Annual Report on  Form 10-K.

FINANCIAL CONDITION AND LIQUIDITY

Principal liquid resources of continuing operations, which consist of cash and
cash equivalents, trade receivables, sugar inventories and unused lines of
credit, less outstanding commercial paper (backed by lines of credit) and
accrued deposits to the Capital Construction Fund (CCF), totaled $403,288,000
at December 31, 1995, a decrease of $24,722,000, from December 31, 1994.  This
decrease was due mainly to a $54,769,000 decrease in unused lines of credit,
partially offset by a $23,163,000 increase in cash and cash equivalents and a
$17,611,000 increase in accounts receivable. The reduction in available lines 
of credit and the increase in cash and cash equivalents were primarily the 
result of cash available following the sale of Matson Leasing's net assets.
Receivables increased, due principally to an increase in amounts advanced by 
the Company to Hawaii sugarcane growers for the purchase of raw sugar.

Working capital of continuing operations increased to $84,399,000 at December
31, 1995, compared with working capital at December 31, 1994 of $58,392,000.
This was primarily the result of the increase in cash and cash equivalents
following the sale of Matson Leasing's net assets, partially offset by an
increase of $25,000,000 in short-term commercial paper borrowing.  The 
Company's current ratio of 1.4-to-1 at December 31, 1995 was slightly higher 
than the rate of 1.3-to-1 a year earlier.

Net cash provided by operations, before capital expenditures for real estate
developments held for sale and discontinued operations, was $150,550,000 for
1995, compared with $148,876,000 for 1994.  Operating cash flows were used
principally for payments of long-term borrowings, deposits into the CCF, 
capital expenditures, payment of dividends and stock repurchases.

For 1996, internal cash flows are expected to be sufficient to finance working
capital needs, dividends, capital expenditures and debt service.  The Company
maintains several committed and uncommitted borrowing facilities.

OTHER MATTERS

CAPITAL EXPENDITURES:  In 1995, cash flows for capital expenditures of
continuing operations were $69,489,000, compared with $61,434,000 in 1994. 
Ocean transportation capital expenditures in 1995 of $46,872,000 were primarily 
for container and chassis equipment and the acquisition of a container vessel.
Property development and management capital expenditures of $8,613,000 in 1995
were for real-estate developments which will be held for investment purposes 
and for improvements to leased properties.  Food products capital expenditures 
in 1995 of $13,650,000 were primarily for various power generation equipment 
for the Maui sugar plantation, factory modifications for C&H and for harvesting 
and factory equipment at the Company's sugar and coffee operations. Capital
expenditures approved, but not yet spent, at December 31, 1995 were
$216,971,000.  This includes $155,500,000 for the planned purchase of five
vessels which will be used in the Pacific Alliance Service.  Of this vessel
purchase, approximately $145,500,000 will be paid for through the CCF.

TAX-DEFERRED EXCHANGES:  In 1995, the Company purchased two shopping centers,
one near Reno, Nevada and the other in Greeley, Colorado, using the tax-
deferred proceeds from the 1994 sale of the Company's Denver, Colorado shopping
center. This transaction is reflected in the 1994 Statements of Cash Flows 
under the caption "Non-Cash Activities."

ENVIRONMENTAL MATTERS:  As with most industrial and land-development companies
of its size, A&B's operations have certain risks which could result in
expenditures for environmental remediation.  The Company believes that it is in
compliance, in all material respects, with applicable environmental laws and
regulations and takes a proactive role in identifying potential environmental
concerns.  Management believes that appropriate liabilities have been accrued
for potential environmental costs.

NEW ACCOUNTING PRONOUNCEMENT:  In 1995, the Financial Accounting Standards 
Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 123,
"Accounting for Stock-Based Compensation."  This Statement will require that,
for years beginning after December 15, 1995, the Company include the value of
stock-based compensation in its financial statements, using the fair value 
based method of accounting, or that it disclose the pro forma impact of the 
fair value method on its net income and earnings-per-share.  The Company 
currently accounts for stock-based compensation using the provisions of 
Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to 
Employees."  Accordingly, the value of stock-based compensation is not included
in the Company's net income. The Company does not plan to adopt the fair value
method for its primary financial statements, but will disclose, as required by
the pronouncement, the pro forma impact of the fair value method in its 1996 
financial statements.  The pro forma impact of SFAS No. 123 on the Company's
net income or earnings-per-share for 1995 is not currently known.

OUTLOOK FOR 1996:  Information about the Company's outlook for 1996 and its
plans to address issues affecting each business unit, is included in the Letter
to Shareholders on pages 2 through 6 and in the business unit discussions
included on pages 8 through 18 of the Annual Report to Shareholders, which
sections are incorporated herein by reference.


MANAGEMENT'S REPORT ON FINANCIAL STATEMENTS
Management has prepared and is responsible for the Company's consolidated
financial statements and related notes.  They have been prepared in accordance
with generally accepted accounting principles and necessarily include amounts
based on judgments and estimates made by management.  All financial information
in this Annual Report is consistent with these financial statements.

The Company maintains internal accounting control systems, and related policies
and procedures designed to provide reasonable assurance that assets are
safeguarded, that transactions are properly executed and recorded in accordance
with management's authorization, and that underlying accounting records may be
relied upon for the accurate preparation of financial statements and other
financial information.  The design, monitoring and revision of internal
accounting control systems involve, among other things, management's judgment
with respect to the relative cost and expected benefits of specific control
measures.  The Company maintains an internal auditing function that evaluates
and formally reports on the adequacy and effectiveness of internal accounting
controls, policies and procedures.

The Company's financial statements have been audited by independent auditors 
who have expressed their opinion with respect to the fairness, in all material
aspects, of the presentation of financial position, results of operations and
cash flows under generally accepted accounting principles (see Independent
Auditors' Report on page 21).

The Board of Directors, through its Audit Committee (composed of non-employee
directors), oversees management's responsibilities in the preparation of the
financial statements and nominates the independent auditors, subject to
shareholder election.  The Audit Committee meets regularly with the external 
and internal auditors to evaluate the effectiveness of the work performed by
them in discharging their respective responsibilities and to assure their 
independent and free access to the Committee.


/s/ John C. Couch
- ------------------------
John C. Couch
Chairman of the Board, President
and Chief Executive Officer


<PAGE>


<TABLE>
<CAPTION>

STATEMENTS OF INCOME
(In thousands, except per-share amounts)
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES
Year Ended December 31,                        1995        1994        1993
- -------------------------------------------------------------------------------

<S>                                         <C>        <C>         <C>
REVENUE:
  Net sales, food products ...............   $ 350,613   $ 427,524   $ 281,816
  Net sales, property development and other     25,334      59,412      43,764
  Transportation and terminal services ...     511,673     473,450     445,442
  Rentals and other services .............     100,423     161,764     135,394
  Gain on sale of property and other .....      10,158       7,474       4,244
  Interest ...............................      19,571      11,618      10,487
  Dividends ..............................       2,683       2,791       2,657
                                             ---------   ---------   ---------
    Total revenue ........................   1,020,455   1,144,033     923,804
                                             ---------   ---------   ---------

COSTS AND EXPENSES:
  Cost of goods sold .....................     340,254     422,444     267,730
  Plantation closure .....................       8,100        -           -
  Cost of services .......................     473,757     478,761     426,092
  Selling, general and administrative ....     112,961     118,495     101,058
  Interest ...............................      37,365      31,427      31,382
  Interest capitalized ...................      (3,936)     (3,725)     (2,580)
                                             ---------   ---------   ---------
    Total costs and expenses .............     968,501   1,047,402     823,682
                                             ---------   ---------   ---------


INCOME FROM CONTINUING OPERATIONS BEFORE
  INCOME TAXES ...........................      51,954      96,631     100,122

INCOME TAXES..............................      19,535      32,652      41,386
                                             ---------   ---------   ---------

INCOME FROM CONTINUING OPERATIONS.........      32,419      63,979      58,736

DISCONTINUED OPERATIONS:
  Income From Operations of Matson
     Leasing Company
     (Net of income taxes of $3,228 in 
     1995, $5,975 in 1994 and $4,794
     in 1993)  ...........................       5,336      10,629       8,253
  Gain on Sale of Matson Leasing Company
    (Net of income taxes of $8,954) ......      18,000        -           -
                                             ---------   ---------    --------

NET INCOME................................   $  55,755   $  74,608   $  66,989
                                             =========   =========   =========

EARNINGS PER SHARE OF COMMON STOCK:
  Continuing Operations ..................   $    0.72   $    1.39   $    1.27
  Discontinued Operations ................        0.51        0.23        0.18
                                             ---------   ---------   ---------
  Net Income .............................   $    1.23   $    1.62   $    1.45
                                             =========   =========   =========

AVERAGE COMMON SHARES OUTSTANDING.........      45,492      46,059      46,338


See notes to financial statements.

</TABLE>


<PAGE>


<TABLE>
<CAPTION>

STATEMENTS OF CASH FLOWS (In thousands)
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES
Year Ended December 31,                                 1995        1994        1993
- --------------------------------------------------------------------------------------

<S>                                                  <C>         <C>         <C>

CASH FLOWS FROM OPERATIONS:
 Income from continuing operations.................  $  32,419   $  63,979   $  58,736
 Adjustments to reconcile net income
   to net cash provided by operations:
   Depreciation ...................................     85,127      84,037      78,318
   Plantation closure .............................      8,100        -           -
   Loss (gain) on disposal of property,
   investments and other assets ...................        226      (5,700)       (292)
 Changes in assets and liabilities:
   Accounts and notes receivable ..................    (14,411)      1,245      (2,666)
   Inventories ....................................      2,640       1,111      14,496
   Prepaid expenses and other assets...............      6,153      26,328      10,038
   Accounts and income taxes payable...............     (3,898)     (7,859)     (4,604)
   Deferred income taxes payable ..................     42,965       1,412      14,662
   Other liabilities ..............................     (8,771)    (15,677)    (13,783)
 Capital expenditures for real estate
   developments held for sale......................    (19,734)     (6,817)     (1,703)
 Discontinued leasing operations...................    (59,160)     44,702      39,675
                                                     ---------   ---------   ---------

     Net cash provided by operations...............     71,656     186,761     192,877
                                                     ---------   ---------   ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures for property.................    (63,908)    (48,791)   (109,315)
 Capital expenditures for real estate
   developments held for investment................     (5,581)    (12,643)    (12,875)
 Acquisition of California and Hawaiian
   Sugar Company, Inc. ............................       -           -        (62,564)
 Receipts from disposal of income producing
   property, investments and other assets..........    362,501       1,447      10,182
 Deposits into Capital Construction Fund...........   (136,484)     (8,900)       -
 Withdrawals from Capital Construction Fund........        999       9,383      87,495
 Increase in investments ..........................     (1,518)        (32)     (1,108)
 Discontinued leasing operations:             
   Capital expenditures ...........................    (30,061)    (33,932)    (30,274)
   Other...........................................        900       1,045         795
                                                     ---------   ---------   ---------

     Net cash provided by (used in)
       investing activities .......................    126,848     (92,423)   (117,664)
                                                     ---------   ---------   ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuances of long-term
    debt...........................................     40,000      31,000      89,500
 Payments of long-term liabilities.................   (189,764)    (84,314)   (112,651)
 Proceeds (payments) of short-term
    commercial paper borrowings - net..............     25,000      (6,000)       -
 Repurchases of capital stock......................    (11,580)    (17,717)       -
 Proceeds from issuances of capital stock..........        468         122         288
 Dividends paid ...................................    (40,035)    (40,563)    (40,777)
                                                     ---------   ---------   ---------
     Net cash used in financing activities.........   (175,911)   (117,472)    (63,640)
                                                     ---------   ---------   ---------

NET INCREASE (DECREASE) IN CASH AND 
  CASH EQUIVALENTS.................................     22,593     (23,134)     11,573
                                                     ---------   ---------   ---------

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR:
 Continuing operations.............................      8,987      32,295      20,827
 Discontinued leasing operations...................        570         396         291
                                                     ---------   ---------   ---------

TOTAL CASH AND CASH EQUIVALENTS AT 
BEGINNING OF YEAR..................................      9,557      32,691      21,118
                                                     ---------   ---------   ---------

CASH AND CASH EQUIVALENTS AT END OF YEAR:
 Continuing operations.............................     32,150       8,987      32,295
 Discontinued leasing operations...................       -            570         396
                                                     ---------   ---------   ---------

TOTAL CASH AND CASH EQUIVALENTS AT END
OF YEAR............................................  $  32,150   $   9,557   $  32,691
                                                     =========   =========   =========

OTHER CASH FLOW INFORMATION:
 Interest paid, net of amounts capitalized.........  $  41,277   $  44,064   $   43,682
 Income taxes paid, net of refunds.................     53,014      18,391       15,123

NON-CASH ACTIVITIES - Tax-deferred property exchanges     -         22,200         -


See notes to financial statements.

</TABLE>



<PAGE>


<TABLE>
<CAPTION>

BALANCE SHEETS--
(In thousands, except per-share amounts)
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES
December 31,                                               1995         1994
- -----------------------------------------------------------------------------


<S>                                                      <C>          <C>
ASSETS

CURRENT ASSETS
  Cash and cash equivalents ..........................   $  32,150    $   8,987
  Accounts and notes receivable:
    Trade, less allowances of $5,479 and $6,449 ......     110,697      110,881
    Other ............................................      36,070       18,275
  Inventories:
    Sugar and coffee .................................      47,604       52,648
    Materials and supplies ...........................      38,502       38,029
  Real estate held for sale ..........................      23,550        4,014
  Deferred income taxes ..............................      11,439       15,366
  Prepaid expenses and other assets ..................      13,413       14,068
  Accrued deposits to Capital Construction Fund ......      (6,233)        (550)
                                                         ---------    ---------

      Total current assets ...........................     307,192      261,718
                                                         ---------    ---------

INVESTMENTS...........................................      82,246       64,913
                                                         ---------    ---------


REAL ESTATE DEVELOPMENTS..............................      56,104       66,371
                                                         ---------    ---------


PROPERTY:
  Land  ..............................................      60,101       52,202
  Buildings ..........................................     202,769      190,852
  Vessels ............................................     657,238      651,435
  Machinery and equipment ............................     660,499      656,425
  Water, power and sewer systems .....................      82,208       86,254
  Other property improvements ........................      91,091       83,222
                                                         ---------    ---------

      Total ..........................................   1,753,906    1,720,390
  Less accumulated depreciation and amortization .....     780,392      744,718
                                                         ---------    ---------

      Property/net ...................................     973,514      975,672
                                                         ---------    ---------

CAPITAL CONSTRUCTION FUND.............................     317,212      176,044
                                                         ---------    ---------

NET ASSETS OF DISCONTINUED OPERATIONS.................        -         313,690
                                                         ---------    ---------

OTHER ASSETS--NET.....................................      46,491       67,367
                                                         ---------    ---------
        Total                                            $1,782,759   $1,925,775
                                                         ==========   ==========

See notes to financial statements.

</TABLE>



<PAGE>


<TABLE>
<CAPTION>

December 31,                                               1995         1994
- ---------------------------------------------------------------------------------

<S>                                                      <C>          <C>           
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current portion of long-term debt ..................   $   24,794    $  27,239
  Current portion of capital lease obligations .......       11,061        7,938
  Short-term commercial paper borrowings .............       83,000       58,000
  Accounts payable ...................................       30,916       35,505
  Payrolls and vacation pay ..........................       19,891       19,847
  Uninsured claims ...................................       13,076       12,110
  Post-retirement benefit obligations/current portion.        5,118        6,582
  Taxes other than income ............................        6,099        5,390
  Accrued interest payable ...........................        4,478        4,611
  Promotional programs ...............................        1,099        4,563
  Accrued and other liabilities ......................       23,261       21,541
                                                         ----------   ----------
      Total current liabilities ......................      222,793      203,326
                                                         ----------   ----------

LONG-TERM LIABILITIES:
  Long-term debt .....................................      380,389      519,605
  Capital lease obligations ..........................       24,186       35,274
  Post-retirement benefit obligations ................      118,472      116,610
  Pension obligations ................................       13,345       21,933
  Uninsured claims ...................................       11,182       12,337
  Other ..............................................       32,335       34,115
                                                         ----------   ----------
      Total long-term liabilities ....................      579,909      739,874
                                                         ----------   ----------

DEFERRED INCOME TAXES.................................      330,379      349,961
                                                         ----------   ----------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
  Capital stock/common stock without par value;
    authorized, 150,000 shares ($.75 stated value
    per share); outstanding, 45,280 shares in 1995
    and 45,691 shares in 1994.........................       37,133       37,493
  Additional capital .................................       40,138       38,862
  Unrealized holding gains on securities .............       39,830       29,073
  Retained earnings ..................................      546,394      541,910
  Cost of treasury stock .............................      (13,817)     (14,724)
                                                         ----------   ----------

      Total shareholders' equity .....................      649,678      632,614
                                                         ----------   ----------


      Total ..........................................   $1,782,759   $1,925,775
                                                         ==========   ==========

</TABLE>



<PAGE>



<TABLE>

<CAPTION>

STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands, except per-share amounts)
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES

Three Years Ended December 31, 1995
=======================================================================================================================

                                                       Capital Stock
                                       ------------------------------------------
                                             Issued                 In Treasury
                                       ----------------------   -----------------
                                                                                                 Unrealized
                                                                                    Additional     Holding    Retained
                                       Shares   Stated Value   Shares     Cost        Capital        Gains     Earnings
                                       ------   ------------   ------     ----      ----------    ---------   ---------
<S>                                  <C>       <C>           <C>      <C>          <C>          <C>          <C>         
BALANCE, DECEMBER 31, 1992...........  50,687    $ 38,016      4,354    $(15,492)    $ 37,368                 $499,207

CHANGES IN 1993:
   Stock options exercised...........      23          17                                 572
   Acquired in payment of options....      (7)         (6)                                                        (227)  
   Issued -- incentive plan..........       1           1        (54)        768          570
   Net income........................                                                                           66,989
   Cash dividends -- $.88 per share..                                                                          (40,777)
                                       ------    --------      -----    --------     --------                 --------
BALANCE, DECEMBER 31, 1993...........  50,704      38,028      4,300     (14,724)      38,510                  525,192



CHANGES IN 1994:
   Shares repurchased and retired....    (723)       (542)                                                     (17,175)
   Stock options exercised...........      12           9                                 352
   Acquired in payment of options....      (6)         (5)                                                        (152)
   Issued--incentive plan............       4           3
   Unrealized holding gains on
      securities.....................                                                              $29,073
   Net income........................                                                                           74,608
   Cash dividends -- $.88 per share..                                                                          (40,563)
                                       ------    --------      -----    --------     --------      -------    --------
BALANCE, DECEMBER 31, 1994...........  49,991      37,493      4,300     (14,724)      38,862       29,073     541,910

CHANGES IN 1995:
   Shares repurchased and retired....    (511)       (383)                                                     (11,196)
   Stock options exercised...........      24          18                                 669
   Acquired in payment of options....      (2)         (1)                                                         (40)
   Issued--incentive plan............       8           6        (70)        907          607
   Unrealized holding gains on
      securities.....................                                                               10,757
   Net income.................                                                                                  55,755
   Cash dividends -- $.88 per share..                                                                          (40,035)
                                       ------    --------      -----    --------     --------      -------    --------
BALANCE, DECEMBER 31, 1995...........  49,510    $ 37,133      4,230    $(13,817)    $ 40,138      $39,830    $546,394
                                       ======    ========      =====    ========     ========      =======    ========

See notes to financial statements.

</TABLE>



<PAGE>


NOTES TO FINANCIAL STATEMENTS

ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF CONSOLIDATION:  The consolidated financial statements include the
accounts of Alexander & Baldwin, Inc. and all subsidiaries, after elimination 
of significant intercompany amounts.

OCEAN TRANSPORTATION:  Voyage revenue and variable costs and expenses are
included in income at the time each voyage leg commences.  This method of
accounting does not differ materially from other acceptable accounting methods.

Vessel depreciation, charter hire, terminal operating overhead, and general and
administrative expenses are charged to expense as incurred.  Expected costs of
regularly-scheduled dry docking of vessels and planned major vessel repairs
performed during dry docking are accrued.

PROPERTY DEVELOPMENT AND MANAGEMENT:  Sales are recorded when the risks and
benefits of ownership have passed to the buyers (generally at closing dates),
adequate down payments have been received and collection of remaining balances
is reasonably assured.

Expenditures for real estate developments are capitalized during construction
and are classified as Real Estate Developments on the balance sheet.  When
construction is complete, the costs are reclassified either as Property or as
Real Estate Held For Sale, based upon the Company's intent to sell the 
completed asset or to hold it as an investment.  Cash flows related to real
estate developments are classified as operating or investing activities, based
upon the Company's intention either to sell the property or to retain ownership
of the property as an investment following completion of construction.

FOOD PRODUCTS:  Revenue is recorded when refined sugar products and coffee are
sold to third parties.

Costs of growing sugar cane are charged to the cost of production in the year
incurred and to cost of sales as refined products are sold.  The cost of raw
cane sugar purchased from third parties is recorded as inventory at the 
purchase price.

Costs of developing coffee are capitalized during the development period and
depreciated over the estimated productive lives of the orchards.  Costs of
growing coffee are charged to inventory in the year incurred and to cost of
sales as coffee is sold.

CASH AND CASH EQUIVALENTS:  The Company considers highly liquid investments
purchased with original maturities of three months or less, which have no
significant risk of change in value, to be cash equivalents.

INVENTORIES:  Sugar inventory, consisting of raw and refined sugar and coffee
inventory, are stated at the lower of cost (first-in, first-out basis) or
market.  Other inventories, composed principally of materials and supplies, are
stated at the lower of cost (principally average cost) or market.

PROPERTY:  Property is stated at cost.  Major renewals and betterments are
capitalized.  Replacements, maintenance and repairs which do not improve or
extend asset lives are charged to expense as incurred.  Assets held under
capital leases are included with property owned.  Gains or losses from property
disposals are included in income.

CAPITALIZED INTEREST:  Interest costs incurred in connection with significant
expenditures for real estate developments or the construction of assets are
capitalized.

DEPRECIATION:  Depreciation is computed using the straight-line method.
Depreciation expense includes amortization of assets under capital leases and
vessel spare parts.

Estimated useful lives of property are as follows:

Buildings............................................. 10 to 50 years
Vessels............................................... 14 to 40 years
Marine containers.....................................       15 years
Machinery and equipment...............................  3 to 35 years
Utility systems and other depreciable property........  5 to 60 years

OTHER NON-CURRENT ASSETS:  Other non-current assets consist principally of
supply contracts and intangible assets.  These assets are being amortized using
the straight-line method over periods not exceeding 30 years.

OTHER LONG-TERM LIABILITIES:  Other long-term liabilities include the Company's
estimate of the liability for uninsured claims and self insurance, and reserves
for dry-docking, pensions and other liabilities not expected to be paid within
the next year.

PENSION PLANS:  Certain ocean transportation subsidiaries are members of the
Pacific Maritime Association (PMA), the Maritime Service Committee or the 
Hawaii Stevedore Committee, which negotiate multi-employer pension plans 
covering certain seagoing and shoreside bargaining unit personnel.  The
subsidiaries negotiate multi-employer pension plans covering other bargaining-
unit personnel. Pension costs are accrued in accordance with contribution rates 
established by the PMA, the parties to a plan or the trustees of a plan.
Several trusteed, noncontributory, single-employer defined benefit plans cover 
substantially all other employees.

INCOME TAXES:  Current income tax expense is based on revenue and expenses in
the Statements of Income.  Deferred income tax liabilities and assets are
computed at current tax rates for temporary differences between the financial
statement and income tax bases of assets and liabilities.

FAIR VALUES:  The carrying values of current assets (other than inventories,
real estate held for sale, deferred income taxes and prepaid and other assets)
and of debt instruments are reasonable estimates of their fair values.  Real
estate is carried at the lower of cost or net realizable value.  Net realizable
values are generally determined using the expected market value for the 
property less sales costs.  For residential units and lots held for sale,
market value is determined by reference to the sales of similar property,
market studies, tax assessments and discounted cash flows.  For commercial
property, market value is determined using recent comparable sales, tax
assessments and cash flow analysis.  A large portion of the Company's real
estate is undeveloped land located in Hawaii.  This land has a cost basis which
averages $145 per acre, a value which is much lower  than market values.

FUTURES CONTRACTS:  Realized and unrealized gains and losses on commodity
futures contracts are deferred and recorded in inventory in the period in which
the related inventory purchases occur.  These amounts are not significant.

ENVIRONMENTAL COSTS:  Environmental expenditures that relate to current
operations are expensed or capitalized as appropriate.  Expenditures that 
relate to an existing condition caused by past operations or events, and which
do not contribute to current or future revenue generation, are charged to
expense. Liabilities are recorded when environmental assessments or remedial
efforts are probable and the costs can be reasonably estimated.

USE OF ESTIMATES:  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the 
reporting period. Future actual amounts could differ from those estimates.

RECLASSIFICATIONS:  Certain amounts in the 1994 and 1993 financial statements
have been reclassified to conform with the 1995 presentation.

RESTATEMENTS:  The financial statements for all periods presented have been
restated to reflect the sale of certain net assets of the Company's container
leasing segment as described in Note 4.

2. EMPLOYEE BENEFIT PLANS

Total contributions to the multi-employer pension plans covering personnel in
shoreside and seagoing bargaining units were $5,903,000 in 1995, $8,216,000 in
1994 and $8,626,000 in 1993.  Union collective bargaining agreements provide
that total employer contributions during the terms of the agreements be
sufficient to meet the normal costs and amortization payments required to be
funded during those periods.  Contributions are generally based on union labor
used or cargo handled or carried.  A portion of such contributions is for
unfunded accrued actuarial liabilities of the plans being funded over periods 
of 25 to 40 years, which began between 1967 and 1976.

The multi-employer plans are subject to the plan termination insurance
provisions of the Employee Retirement Income Security Act of 1974, as amended,
and are paying premiums to the Pension Benefit Guarantee Corporation (PBGC).
The statutes provide that an employer which withdraws from or significantly
reduces its contribution obligation to a multi-employer plan generally will be
required to continue funding its proportional share of the plan's unfunded
vested benefits.

Under special rules approved by the PBGC and adopted by the longshore plan in
1984, the Company could cease Pacific Coast cargo-handling operations
permanently and stop contributing to the plan without any withdrawal liability,
provided that the plan meets certain funding obligations as defined in the 
plan. The estimated withdrawal liabilities under the Hawaii longshore plan and 
the seagoing plans aggregated approximately $6,437,000 for various plan years
ended December 1995 and 1994, and July 1995, based on estimates by plan 
actuaries. Management has no present intention of withdrawing from and does not
anticipate termination of any of the aforementioned plans.

The net pension cost (benefit) and components for 1995, 1994 and 1993, of
single-employer defined benefit pension plans, which cover substantially all
other employees,    were as follows:

                                              1995       1994       1993
                                              ----       ----       ----

                                                    (In thousands)

Service cost--benefits earned during
   the year...............................  $  6,210   $  7,317   $  5,907
Interest cost on projected benefit
   obligation.............................    21,785     20,542     17,584
Actual return on plan assets..............   (26,361)   (24,122)   (18,776)
Net amortization and deferral.............    (2,054)    (1,221)    (2,514)
Curtailments and terminations ............    (1,761)     1,300      2,117
                                            --------   --------   --------
Net pension cost (benefit)................  $ (2,181)  $  3,816   $  4,318
                                            ========   ========   ========

The funded status of the single-employer plans at December 31, 1995 and 1994
was as follows:

                                         1995             1994
                                      -----------  -----------------------

                                        Assets        Assets     Accumulated
                                        Exceed        Exceed      Benefits
                                      Accumulated   Accumulated    Exceed
                                       Benefits      Benefits      Assets
                                       --------     -----------    ------

                                                (In thousands)

Actuarial present value of benefit
obligation:
   Vested benefits ..................  $ 241,422     $ 122,153    $ 112,925
   Non-vested benefits ..............      9,881         3,830        4,297
                                       ---------     ---------    ---------

   Accumulated benefit obligation....    251,303       125,983      117,222
   Additional amounts related to
   projected compensation levels.....     34,276        22,927       11,277
                                       ---------     ---------    ---------
   Projected benefit obligation .....    285,579       148,910      128,499
Plan assets at fair value............    348,208       178,118      104,867
                                       ---------     ---------    ---------


Deficiency (excess) of plan assets
   over projected benefit obligation.    (62,629)      (29,208)      23,632
Prior service costs to be recognized
   in future years ..................     (3,739)       (2,121)      (1,656)
Unrecognized actuarial net gain
   (loss)............................     75,759        27,468       (1,227)
Unrecognized net asset at
   January 1, 1987 (being amortized
   over periods of 4 to 15 years) ...      3,954         4,660          385
                                       ---------     ---------    ---------

Accrued pension liability............  $  13,345     $     799    $  21,134
                                       =========     =========    =========

For 1995 and 1994, the projected benefit obligation was determined using a
discount rate of 8% and assumed increases in future compensation levels of 5%.
The expected long-term rate of return on assets was 9% for 1995 and 8 1/4% for
1994.  The assets of the plans consist principally of listed stocks and bonds.

Contributions are determined annually for each plan by the Company's pension
administrative committee, based upon the actuarially determined minimum 
required contribution under ERISA and the maximum deductible contribution
allowed for tax purposes.  For the plans covering employees who are members
of collective bargaining units, the benefit formulas are determined according
to the collective bargaining agreements, either using career average pay as
the base or a flat dollar amount per year of service.  The benefit formulas
for the remaining defined benefit plans are based on final average pay.

The Company has non-qualified supplemental pension plans covering certain
employees and retirees, which provide for incremental pension payments from the
Company's general funds, so that total pension benefits would be substantially
equal to amounts that would have been payable from the Company's qualified
pension plans if it were not for limitations imposed by income tax regulations.
The projected benefit obligation, included with other non-current liabilities,
relating to these unfunded plans, totaled $8,680,000 and $7,661,000 at December
31, 1995 and 1994, respectively.

3. LEASES

THE COMPANY AS LESSEE:  Various subsidiaries of the Company lease a vessel and
certain land, buildings and equipment under both capital and operating leases.
Capital leases include one vessel leased for a term of 25 years ending in 1998;
containers, machinery and equipment for terms of 5 to 12 years expiring through
1997; and a wastewater treatment facility in California, the title to which 
will revert to a subsidiary in 2002.  Principal operating leases cover office
and terminal facilities for periods which expire between 1996 and 2026.
Management expects that in the normal course of business, most operating leases
will be renewed or replaced by other similar leases.

Rental expense under operating leases totaled $46,680,000, $48,169,000, and
$43,270,000 for the years ended December 31, 1995, 1994 and 1993, respectively.
Contingent rents and income from sublease rents were not significant.

Assets recorded under capital lease obligations and included in property at
December 31, 1995 and 1994 were as follows:

                                                         1995      1994
                                                         ----      ----

                                                         (In thousands)

Vessel .............................................   $ 55,253   $55,253
Machinery and equipment.............................     42,688    42,870
                                                       --------   -------

   Total............................................     97,941    98,123


Less accumulated amortization.......................     84,813    74,674
                                                       --------   -------

Property under capital leases--net .................   $ 13,128   $23,449
                                                       ========   =======

Future minimum payments under all leases and the present value of minimum
capital lease payments as of December 31, 1995 were as follows:

                                                       Capital   Operating
                                                        Leases    Leases
                                                        ------    ------

                                                         (In thousands)

1996................................................   $ 14,759   $15,960
1997................................................     15,026    14,590
1998................................................     10,703    14,837
1999................................................        609    14,834
2000................................................        576    12,868
Thereafter..........................................      1,063   114,072
                                                       --------   -------
Total minimum lease payments........................     42,736   $187,161
                                                                  ========
Less amount representing interest...................      7,489
                                                       --------
Present value of future minimum payments............     35,247
Less current portion................................     11,061
                                                       --------
Long-term obligations at December 31, 1995..........   $ 24,186
                                                       ========

A subsidiary is obligated to pay terminal facility rent equal to the principal
and interest on Special Facility Revenue Bonds issued by the Department of
Transportation of the State of Hawaii.  Interest on the bonds is payable semi-
annually and principal, in the amount of $16,500,000 is due in 2013.  An 
accrued liability of $7,170,000 and $6,626,000 at December 31, 1995 and 1994,
respectively, included in other long-term liabilities, provides for a pro-rata
portion of the principal due on these bonds.

THE COMPANY AS LESSOR:  Various Company subsidiaries lease land, buildings and
land improvements under operating leases.  The historical cost of and
accumulated depreciation on leased property at December 31, 1995 and 1994 were
as follows:

                                                         1995      1994
                                                         ----      ----

                                                         (In thousands)

Leased property.....................................   $246,609   $210,217
Less accumulated amortization.......................     37,555     32,567
                                                       --------   --------

Property under operating leases--net................   $209,054   $177,650
                                                       ========   ========

Total rental income under these operating leases for the three years ended
December 31, 1995 was as follows:

                                              1995       1994      1993
                                              ----       ----      ----

                                                   (In thousands)

Minimum rentals...........................   $28,164   $ 31,792   $30,968
Contingent rentals (based on sales
  volume).................................       880      1,515     1,111
                                             -------   --------   -------
   Total..................................   $29,044   $ 33,307   $32,079
                                             =======   ========   =======

Future minimum rental income on non-cancelable leases at December 31, 1995 was
as follows:

                                             Operating
                                              Leases
                                           ------------

                                          (In thousands)

1996......................................   $  31,551
1997......................................      26,689
1998......................................      18,930
1999......................................      15,169
2000 .....................................      12,324
Thereafter................................     159,912
                                             ---------

  Total ..................................   $ 264,575
                                             =========

4. DISCONTINUED OPERATIONS

In June 1995, the Company sold the net assets of its container leasing
subsidiary, Matson Leasing Company, Inc., for $361.7 million in cash, and
realized an after-tax gain of $18 million.  Specifically excluded from the sale
were long-term debt and U. S. tax obligations of the business.

Summary operating results of discontinued operations, excluding the above gain,
were as follows:


                                           1995     1994       1993
                                           ----     ----       ----

                                               (In thousands)

Net sales  ............................ $ 35,251   $63,060   $ 55,544
                                        --------   -------   --------
Gross profit .......................... $ 14,762   $24,499   $ 20,500
                                        --------   -------   --------

Earnings before income taxes .......... $  8,564   $16,604   $ 13,047
Income taxes ..........................    3,228     5,975      4,794
                                        --------   -------   --------
Net earnings from discontinued
operations............................. $  5,336   $10,629   $  8,253
                                        ========   =======   ========

The components of net assets of discontinued operations included in the
Consolidated Balance Sheet at December 31, 1994 were as follows (in
thousands):

Current assets ........................ $ 14,829
Containers and equipment, net .........  305,874
Current liabilities ...................   (1,505)
Other long-term liabilities ...........   (5,508)
                                        --------

Net assets ............................ $313,690
                                        ========

5.  INCOME TAXES

The income tax expense for the three years ended December 31, 1995 consisted of
the following:

                                              1995       1994      1993
                                              ----       ----      ----

                                                   (In thousands)

Current:
   Federal................................  $(23,833)  $ 29,796   $23,894
   State..................................       403      1,444     2,830
                                             -------   --------   -------

     Total ...............................   (23,430)    31,240    26,724
Deferred..................................    42,965      1,412    14,662
                                             -------   --------   -------

Income tax expense .......................   $19,535   $ 32,652   $41,386
                                             =======   ========   =======

Total income tax expense for the three years ended December 31, 1995 differs
from amounts computed by applying the statutory Federal rate to pre-tax income,
for the following reasons:

                                              1995       1994      1993
                                              ----       ----      ----

                                                   (In thousands)

Computed income tax expense...............   $18,184   $ 33,821   $35,043
Increase (decrease) resulting from:
   Tax rate increases.....................     -         -          6,963
   State tax on income, less applicable
      Federal tax                                326      1,332     1,999
   Fair market value over cost of donations    -         (2,138)      -
   Low-income housing credits.............    (1,224)    (1,219)   (1,214)
   Other-net..............................     2,249        856    (1,405)
                                             -------   --------   -------

     Income tax expense  .................   $19,535   $ 32,652   $41,386
                                             =======   ========   =======

The tax effects of temporary differences that give rise to significant portions
of the net deferred tax liability at December 31, 1995 and 1994 were as
follows:

                                                         1995      1994
                                                         ----      ----

                                                         (In thousands)

Deposits to the CCF.................................   $252,348  $201,963
Tax-deferred gains on real estate transactions......     69,317    68,488
Accelerated depreciation............................     44,136   111,253
Unrealized holding gains on securities..............     23,664    17,273
Post-retirement benefits............................    (47,813)  (45,209)
Alternative minimum tax benefits....................    (14,264)   (6,531)
Insurance reserves..................................     (6,766)   (1,759)
Capitalized leases..................................       (957)    2,409
Other-net...........................................       (725)  (13,292)
                                                       --------   -------

   Total............................................   $318,940   $334,595
                                                       ========   ========

The Internal Revenue Service (IRS) has completed its audits of the Company's 
tax returns through 1988 and, with one exception, has settled all issues raised
during such audits.  No settlement had a material effect on the Company's
financial position or results of operations.  The Company is contesting the
remaining issue, which relates to the timing of a deduction for tax purposes.
The IRS has commenced  an audit of the tax returns for 1989 through 1991.
Management believes that the ultimate resolution of any adjustment resulting
from the 1987, 1988 and the current audits will not have a material effect on
the Company's financial position or results of operations.

6.  POST-RETIREMENT BENEFIT PLANS

The Company has plans that provide certain retiree health care and life
insurance benefits to substantially all salaried and to certain hourly
employees.  Employees are generally eligible for such benefits upon retirement
and completion of a specified number of years of credited service.  The Company
does not pre-fund these benefits and has the right to modify or terminate
certain of these plans in the future.  Certain groups of retirees pay a portion
of the benefit costs.

The net periodic cost for post-retirement health care and life insurance
benefits during 1995, 1994 and 1993 included the following:

                                           1995     1994       1993
                                           ----     ----       ----

                                               (In thousands)

Service cost........................... $  1,512   $ 2,149   $  1,524
Interest cost..........................    7,031     7,825      4,742
Net amortization.......................   (1,524)     (216)    

Curtailment gain.......................   (2,045)      -          -
                                        --------   -------   --------
Post-retirement benefit cost........... $  4,974   $ 9,758   $  6,266
                                        ========   =======   ========

The unfunded accumulated post-retirement benefit obligation at December 31, 
1995 and 1994 is summarized below:

                                              1995             1994
                                              ----             ----

                                                  (In thousands)

Accumulated post-retirement benefit
obligation:
  Retirees ...............................   $56,606         $ 64,619
  Fully-eligible active plan participants      9,073           10,577
  Other active plan participants .........    25,373           30,359
  Unrecognized prior service cost ........     5,676            3,215
  Unrecognized net gain ..................    26,862           14,422
                                             -------         --------
    Total ................................   123,590          123,192
Current obligation........................     5,118            6,582
                                             -------         --------
Non-current obligation....................  $118,472         $116,610
                                            ========         ========

For 1995 and 1994, the weighted average discount rate used in determining the
accumulated post-retirement benefit obligation was 8%, and the assumed health
care cost trend rate used in measuring the accumulated post-retirement benefit
obligation was 10% through 2001, decreasing to 5% thereafter.  If the assumed
health care cost trend rate were increased by one percentage point, the
accumulated post-retirement benefit obligation as of December 31, 1995 and 1994
would have increased by approximately $10,405,000 and $12,235,000, 
respectively, and the net periodic post-retirement benefit cost for 1995 and
1994 would have increased by approximately $1,190,000 and $2,153,000, 
respectively.

7.  INVESTMENTS

At December 31, 1995 and 1994, investments principally consisted of marketable
equity securities, limited partnership interests and purchase-money mortgages.

Effective January 1, 1994, the Company adopted SFAS No. 115, "Accounting for
Certain Investments in Debt and Equity Securities."  The marketable equity
securities are classified as "available for sale" and are stated at quoted
market values.    The unrealized holding gain on these securities, net of
deferred income taxes, has been recorded as a separate component of
shareholders' equity.

The components of the net unrealized holding gains at December 31, 1995 and 
1994 were as follows:

                                              1995             1994
                                              ----             ----

                                                  (In thousands)

Market value..............................   $73,460         $ 56,312
Less historical cost .....................     9,966            9,966
                                             -------         --------
Unrealized holding gain ..................    63,494           46,346
Less deferred income taxes ...............    23,664           17,273
                                             -------         --------
Net unrealized holding gain ..............   $39,830         $ 29,073
                                             =======         ========

The investments in limited partnership interests and purchase money mortgages
are recorded at cost, which approximated market values, of $8,786,000 and
$8,601,000 at December 31, 1995 and 1994, respectively.  The purchase money
mortgages are intended to be held to maturity.  The value of the underlying
investments of the limited partnership interests are assessed annually and are
approximately equal to the original cost.

See Note 11 for a discussion of market values of investments in the Capital
Construction Fund.

8.  LONG-TERM DEBT, CREDIT AGREEMENTS

At December 31, 1995 and 1994, long-term debt consisted of the following:

                                               1995          1994
                                               ----          ----

                                                 (In thousands)

Commercial paper, 5.83% - 6.19% due 1996..   $ 246,437    $ 304,301
Bank revolving credit loans (1995 high
  6.88%, low 5.99%) due after 1995........      40,000       52,500
Term loans:
  7.19%, payable through 2007 ............      75,000       75,000
  8%, payable through 2000 . .............      47,500       50,000
  9.05%, payable through 1999 ............      27,201       32,611
  9%, payable through 1999 .. ............      21,176       50,000
  9.8%, payable through 2004 .............      18,750       20,833
  7.65%, payable through 2001 ............      10,000       10,000
  11.78%, payable through 1997 ...........       1,269        1,848
Mortgage loans, collateralized by land
  and buildings:
  11%, repaid in 1995 ....................        -           3,046
  12.5%, repaid in 1995 ..................        -           2,724
  Other, repaid in 1995 ..................        -             281
Limited partnership subscription notes,
  no interest, payable through 1996 ......         850        1,700
                                             ---------    ---------
  Total ..................................     488,183      604,844
  Less current portion ...................      24,794       27,239
  Commercial paper classified as current .      83,000       58,000
                                             ---------    ---------
  Long-term debt .........................   $ 380,389    $ 519,605
                                             =========    =========

REVOLVING CREDIT FACILITIES:  The Company and a subsidiary have a revolving
credit and term loan agreement with five commercial banks, whereby they may
borrow up to $155,000,000, under revolving loans to November 30, 1997, at
varying rates of interest.  Any revolving loan outstanding on that date may be
converted into a term loan, which would be payable in 16 equal quarterly
installments.  The agreement contains certain restrictive covenants, the most
significant of which requires the maintenance of an interest coverage ratio of
2:1.  At December 31, 1995 and 1994, $10,000,000 and $20,000,000, respectively,
were outstanding under this agreement.

The Company and a subsidiary have an uncommitted $45,000,000 short-term
revolving credit agreement with a commercial bank.  The agreement extends to
November 30, 1996, but may be canceled by the bank at any time.  At December 
31, 1995 and 1994, $17,000,000 and $12,500,000, respectively, were outstanding
under this agreement.

In 1994, the Company and a subsidiary entered into an uncommitted $25,000,000
revolving credit agreement with a commercial bank.  The agreement extends to
July 18, 1997.  At December 31, 1995 and 1994, $13,000,000 and $20,000,000,
respectively, were outstanding under this agreement.

During 1995, a subsidiary entered into a $50,000,000 one-year Revolving Credit
Agreement to replace two previous credit facilities.  Up to $25,000,000 of this
agreement serves as a commercial paper liquidity back-up line, with the balance
available for general corporate funds.  At December 31, 1995, there were no
amounts outstanding under this agreement.

COMMERCIAL PAPER:  At December 31, 1995 there were two commercial paper
programs.  The first program was used by a subsidiary to finance the
construction of a vessel, which was delivered in 1992.  At December 31, 1995,
$149,437,000 of commercial paper notes was outstanding under this program.
Maturities ranged from 4 to 39 days.  The borrowings outstanding under this
program are classified as long-term, because the subsidiary intends to continue
the program indefinitely and eventually to repay the program with qualified
withdrawals from the Capital Construction Fund.

The second commercial paper program is used by a subsidiary to fund the
purchases of sugar inventory from Hawaii sugar growers and to provide working
capital for sugar refining and marketing operations.  At December 31, 1995,
$97,000,000 of commercial paper notes was outstanding under this program.
Maturities ranged from 11 to 23 days.  The interest cost and certain fees on 
the borrowings relating to sugar inventory advances to growers are reimbursed
by the growers.  At December 31, 1995, $31,378,000 was outstanding as advances
to growers under this program.  Of the total commercial paper borrowing
outstanding at December 31, 1995, $83,000,000 was classified as current.  
The commercial paper is supported by a $100,000,000 backup revolving credit
facility with six commercial banks.  Both the commercial paper program and the
backup facility are guaranteed by the subsidiary's parent and by the Company.

In 1995, the Company repaid the outstanding commercial paper notes of a third
program which had been used to finance container purchases of the discontinued
container leasing business.

LONG-TERM DEBT MATURITIES:  At December 31, 1995, maturities and planned
prepayments of all long-term debt during the next five years totaled
$24,794,000 for 1996, $31,967,000 for 1997, $24,453,000 for 1998, $32,616,000
for 1999 and $19,584,000 for 2000.

9.  CAPITAL STOCK AND STOCK OPTIONS

A&B has a stock option plan ("1989 Plan") under which key employees may be
granted stock purchase options and stock appreciation rights.  A second stock
option plan for key employees terminated in 1993, but shares previously granted
under the plan are still exercisable.  Under the 1989 Plan, option prices may
not be less than the fair market value of a share of the Company's common stock
on the dates of grant, and each option generally becomes exercisable in-full 
one year after the date granted.  Payment for options exercised, to the extent
not reduced by the application or surrender of stock appreciation rights, may 
be made in cash or in shares of the Company's stock.  If payment is made in 
shares of the Company's stock, the option holder may receive, under a reload
feature of the 1989 Plan, a new stock option for the  number of shares equal
to that surrendered, with an option price not less than at the fair market
value of the Company's stock on the date of exercise.  During 1995, 527,800
new options were granted under the 1989 Plan.

The 1989 Plan also permits issuance of shares of the Company's common stock as
a reward for past service rendered to the Company or one of its subsidiaries or
as an incentive for future service with such entities.  The recipients'
interest in such shares may be fully vested upon issuance or may vest in one
or more installments, upon such terms and conditions as are determined by the
committee which administers the plan.

The Company also has a Directors' stock option plan, under which each non-
employee Director of the Company, elected at an Annual Meeting of Shareholders,
is automatically granted, on the date of each such Annual Meeting, an option to
purchase 3,000 shares of the Company's common stock at the average fair market
value of the shares for the five consecutive trading days prior to the grant
date.  Each option becomes exercisable six months after the date granted.  At
December 31, 1995, a total of 171,000 options have been granted under the plan,
3,000 options have been canceled and no options have been exercised.

Changes in shares under all option plans, for the three years ended December 
31, 1995, were as follows:

                                                           Price Range
                                              Shares        Per Share
                                              ------        ---------


1993: Granted.............................    423,200   $24.250-24.500
      Exercised...........................    (23,576)   17.375-24.750
      Canceled............................    (73,400)   24.250-36.250
                                             --------

      Outstanding, December 31............  2,037,128    17.375-37.875

1994: Granted.............................    475,200    24.700-27.000
      Exercised...........................    (12,300)   17.375-24.750
      Canceled............................    (55,996)   24.250-36.250
                                             --------

      Outstanding, December 31............  2,444,032    17.375-37.875

1995: Granted.............................    551,800    21.750-22.500
      Exercised...........................    (23,550)   17.375-24.750
      Canceled............................   (385,531)   24.250-36.250
                                             --------

      Outstanding, December 31
        (2,045,051 exercisable) ..........  2,586,751   $17.375-37.875
                                            =========

Options outstanding at December 31, 1995 include 60,166 shares that carry stock
appreciation rights which expire in 1997.  The outstanding options do not have
a material dilutive effect in the calculation of earnings per share of common
stock.

The Company has a Shareholder Rights Plan, designed to protect the interests of
shareholders in the event an attempt is made to acquire the Company.  The 
rights initially will trade with the Company's outstanding common stock and
will not be exercisable absent certain acquisitions or attempted acquisitions
of specified percentages of such stock. If exercisable, the rights generally
entitle shareholders to purchase additional shares of the Company's stock or
shares of an acquiring company's stock at prices below market value.

10.  RELATED PARTY TRANSACTIONS, COMMITMENTS AND CONTINGENCIES

At December 31, 1995, the Company and its subsidiaries had an unspent balance 
of total appropriations for capital expenditures of approximately $216,971,000.
However, there is no contractual obligation to spend this entire amount.  Of
this amount, $155,500,000 is for the purchase of vessels described in Note 12.

A subsidiary has arranged for standby letters of credit of approximately
$13,800,000, necessary to qualify as a self-insurer for state and federal
workers' compensation liabilities.

A subsidiary has received a favorable court judgment resulting from a contested
insurance claim.  The claim was for reimbursement of certain expenses incurred
by the subsidiary in connection with repairing port facilities damaged by a 
1989 earthquake.  Although the award has been appealed, management and its
outside counsel believe that the ultimate outcome of this litigation will be
an award at least equal to the claim recorded in the financial statements.

A subsidiary is a party, acting as the steam host, to a Steam Purchase 
Agreement with a developer which has received regulatory authority approval to
construct and operate a cogeneration facility contiguous to the subsidiary's
California refinery.  The agreement provides that, during the 30-year period
of the agreement, the subsidiary will receive steam necessary for refinery
operations at a reduced price, compared to the market price of fuel which
presently must be purchased to generate its steam requirements.

A subsidiary is party to a long-term sugar supply contract with Hawaiian Sugar
& Transportation Cooperative (HSTC), a raw sugar marketing and transportation
cooperative owned by two other subsidiaries and by the other Hawaii sugar
growers.  Under the terms of this contract, the subsidiary is obligated to
purchase, and HSTC is obligated to sell, all of the raw sugar delivered to HSTC
by the Hawaii sugar growers, at prices determined by the quoted domestic sugar
market.  The subsidiary made purchases of raw sugar totaling $158,284,000 and
$271,212,000 under the contract during 1995 and 1994, respectively.  The
contract also requires that the subsidiary provide cash advances to HSTC prior
to the physical receipt of the sugar at its refineries (see Note 8).  Such
advances are determined by the estimated raw sugar market prices.  Amounts due
to HSTC are credited against outstanding advances to HSTC upon delivery of raw
sugar to the subsidiary's refineries.

The Company and certain subsidiaries are parties to various legal actions and
are contingently liable in connection with claims and contracts arising in the
normal course of business, the outcome of which, in the opinion of management
after consultation with legal counsel, will not have a material adverse effect
on the Company's financial position or results of operations.

11.  CAPITAL CONSTRUCTION FUND

A subsidiary is party to an agreement with the United States Government which
established a Capital Construction Fund (CCF) under provisions of the Merchant
Marine Act, 1936, as amended.  The agreement has program objectives for the
acquisition, construction or reconstruction of vessels and for repayment of
existing vessel indebtedness.  Deposits to the CCF are limited by certain
applicable earnings.  Such deposits are not subject to Federal income taxes in
the year earned, but are taxable, with interest payable from the year of
deposit, if withdrawn for general corporate purposes or other non-qualified
purposes, or upon termination of the agreement.  Qualified withdrawals for
investment in vessels having adequate tax bases do not give rise to a current
tax liability, but reduce the depreciable bases of the vessels or other assets
for income tax purposes.  Amounts deposited into the CCF are preference items
for inclusion in Federal alternative minimum taxable income.  Deposits not
committed for qualified purposes within 25 years from December 31, 1986, or
later date of deposit, will be treated as non-qualified withdrawals.  As of
December 31, 1995, the oldest CCF deposits date from 1987.  Management believes
that all amounts deposited in the CCF at the end of 1995 will be used or
committed for qualified purposes prior to the expiration of the 25-year period.

Under the terms of the CCF agreement, the subsidiary may designate certain
qualified earnings as `accrued deposits'' or may designate, as obligations of
the CCF, qualified withdrawals to reimburse qualified expenditures initially
made with operating funds.  Such accrued deposits to and withdrawals from the
CCF are reflected on the balance sheet either as an obligation of the Company's
current assets or as a receivable from the CCF.

As discussed in Note 7, in 1994 the Company adopted the provisions of SFAS No.
115.  The Company has classified its investments in the CCF as "held-to-
maturity" and, accordingly, has not reflected temporary unrealized market gains
and losses in the Balance Sheets or Statements of Income.  The long-term nature
of the CCF program supports the Company's intention to hold these investments
to maturity.

At December 31, 1995 and 1994, the balances on deposit in the CCF are 
summarized in Table 1.

<TABLE>
<CAPTION>

TABLE 1 (In thousands)
                                                    1995                                   1994
                                    ------------------------------------     -----------------------------------
    
<S>                              <C>          <C>          <C>             <C>         <C>          <C>                
                                    AMORTIZED                UNREALIZED      Amortized                Unrealized
                                       COST     FAIR VALUE   GAIN (LOSS)       Cost      Fair Value      Loss
                                       ----     ----------   -----------     ---------   ----------   ----------


Mortgage-backed securities......... $ 95,156     $ 91,132     $ (4,024)      $ 108,247    $ 96,678     $(11,569)
Cash and cash equivalents..........  215,823      215,856           33          64,263      64,263          -
Treasury notes.....................     -            -            -              2,984       2,984          -
Accrued deposits...................    6,233        6,233         -                550         550          -
                                    --------     --------     --------       ---------    --------     --------
Total.............................. $317,212     $313,221     $ (3,991)      $ 176,044    $164,475     $(11,569)
                                    ========     ========     ========       =========    ========     ========

</TABLE>


Fair value of the mortgage-backed securities ("MBS") was determined by an
outside investment management company, based on the experience of trading
identical or substantially similar securities.  No central exchange exists for
these securities; they are traded over-the-counter.

At the end of 1995, the fair value of the Company's investments in MBS is less
than amortized cost, due to interest rate sensitivity inherent in the fair 
value determination of such securities.  While an unrealized market loss 
exists, the Company intends to hold these investments to maturity, which ranges
from 1996 through 2024.  The MBS have a weighted average life of approximately
six years, based on information currently available to the Company.  The
Company earned $7,655,000 in 1995, $8,292,000 in 1994, and $7,218,000 in 1993
on its investments in MBS.

Fair values of the remaining CCF investments were based on quoted market 
prices, if available.  If a quoted market price was not available, fair value
was estimated, using quoted market prices of similar securities and 
investments. These remaining investments mature in 1996.

During 1995 and 1994, there were no sales of securities classified as "held-to-
maturity" included in the CCF.

12.  SUBSEQUENT EVENT - VESSEL ACQUISITION

In January 1996, the Company purchased five container ships from American
President Lines, Ltd. (APL) for $155,500,000,  of which $145,500,000 was
financed by qualified withdrawals from the CCF.

The Company intends to use four of these container ships and one existing fleet
unit in a joint service with APL, between the United States West Coast and
Hawaii, Korea, Japan and Guam.  The Company will have the full reach of the
vessels on each westbound voyage from the United States West Coast to Hawaii,
Guam, Japan and Korea.  APL will take each vessel on time charter in Korea and
redeliver the vessel at the end of its eastbound voyage on the United States
West Coast.  APL will reimburse the Company for vessel operating costs incurred
while under time charter to APL.  The Company expects to commence the joint
service with APL in February 1996.

13.  INDUSTRY SEGMENTS

Industry segment information for 1995, 1994 and 1993, on page 24, is 
incorporated herein by reference.  Segments are:

Ocean transportation -- carrying freight between various U.S. and Canadian West
Coast, Hawaii and Western Pacific ports, and providing terminal services.

Property development and management -- developing, managing and selling
residential, commercial and industrial properties.

Food products -- growing, processing and marketing sugar, molasses and coffee,
and generating and selling electricity.

As discussed in Note 4, the net assets of the container leasing segment were
sold in 1995.                                     


<PAGE>


Alexander & Baldwin, Inc.

Directors

MICHAEL J. CHUN (52)*
President, The Kamehameha Schools
     (educational institution)
JOHN C. COUCH (56)
Chairman of the Board, President and 
     Chief Executive Officer,
     Alexander & Baldwin, Inc.
     Chairman of the Board and
     Chief Executive Officer,
     A&B-Hawaii, Inc.
     Chairman of the Board,
     Matson Navigation Company, Inc.
LEO E. DENLEA JR. (64)*
Chairman of the Board, President
     and Chief Executive Officer,
     Farmers Group, Inc. (insurance)
WALTER A. DODS JR. (54)*
Chairman of the Board and
     Chief Executive Officer,
     First Hawaiian, Inc.
     Chairman of the Board and
     Chief Executive Officer,
     First Hawaiian Bank (banking)
CHARLES G. KING (50)**
President, King Auto Center
     (automobile dealership)
CARSON R. McKISSICK (63)*
Managing Director,
     The Corporate Development Company
     (financial advisory services)
C. BRADLEY MULHOLLAND (54)
President and Chief Executive Officer,
     Matson Navigation Company, Inc.
ROBERT G. REED III (68)**
Independent business consultant
MARYANNA G. SHAW (57)*
Private investor
CHARLES M. STOCKHOLM (63)**
Managing Director,
     Trust Company of the West
     (investment management services)
R. J. PFEIFFER (76)
Chairman Emeritus of the Board,
     Alexander & Baldwin, Inc.
     Chairman Emeritus of the Board,
     A&B-Hawaii, Inc.
     Chairman Emeritus of the Board,
     Matson Navigation Company, Inc.

Advisory Director
ALEXANDER C. WATERHOUSE (84)
Vice Chairman, Waterhouse Properties, Inc.
     (private investments)

Alexander & Baldwin, Inc.
Officers

JOHN C. COUCH (56)
Chairman of the Board, President and 
     Chief Executive Officer
MEREDITH J. CHING (39)
Vice President
     (Government and Community Relations)
G. STEPHEN HOLADAY (51)
Vice President and Controller
JOHN B. KELLEY (50)
Vice President (Investor Relations)
MILES B. KING (48)
Vice President and Chief Administrative Officer
MICHAEL J. MARKS (57)
Vice President, General Counsel and Secretary
GLENN R. ROGERS (52)
Vice President, Chief Financial Officer
     and Treasurer
ROBERT K. SASAKI (55)
Vice President (Properties)

A&B-Hawaii, Inc.
Officers

JOHN C. COUCH (56)
Chairman of the Board and 
     Chief Executive Officer
W. ALLEN DOANE (48)
President and Chief Operating Officer
RICHARD F. CAMERON (63)
Senior Vice President (Agribusiness)
G. STEPHEN HOLADAY (51)
Senior Vice President,
     Chief Financial Officer and Treasurer
MILES B. KING (48)
Senior Vice President (Industrial Relations)
DAVID G. KONCELIK (54)
Senior Vice President (President and 
     Chief Executive Officer, California and
     Hawaiian Sugar Company, Inc.)
MICHAEL J. MARKS (57)
Senior Vice President and General Counsel
ROBERT K. SASAKI (55)
Senior Vice President (Properties)
NORBERT M. BUELSING (45)
Vice President (Property Management)
MEREDITH J. CHING (39)
Vice President
     (Government and Community Relations)
KEITH A. GOTO (52)
Vice President (Labor Relations)
JOHN B. KELLEY (50)
Vice President
STANLEY M. KURIYAMA (42)
Vice President
     (Land Planning & Entitlements)
JUDITH A. WILLIAMS (52)
Vice President
     (Corporate Planning & Development)
ALYSON J. NAKAMURA (30)
Secretary
THOMAS A. WELLMAN (37)
Controller

Matson Navigation Company, Inc.
Officers

JOHN C. COUCH (56)
Chairman of the Board
C. BRADLEY MULHOLLAND (54)
President and Chief Executive Officer
RAYMOND J. DONOHUE (59)
Senior Vice President and
     Chief Financial Officer
MILES B. KING (48)
Senior Vice President (Human Resources)
GARY J. NORTH (51)
Senior Vice President (Operations)
     (President and Chief Operating Officer, 
     Matson Terminals, Inc.)
KEVIN C. O'ROURKE (49)
Senior Vice President and General Counsel
PAUL E. STEVENS (43)
Senior Vice President (Marketing)
RICHARD S. BLISS (57)
Vice President (Area Manager, Hawaii)
ROBERT L. DAWDY (51)
Vice President (West Coast Operations)
BRANTON B. DREYFUS (42)
Vice President
     (Area Manager, Southern California)
JOHN C. GOSLING (59)
Vice President (Engineering)
PHILIP M. GRILL (48)
Vice President (Government Relations)
DALE B. HENDLER (42)
Vice President (Information Services)
MERLE A. K. KELAI (64)
Vice President (Community Relations and 
     Government Affairs)
RONALD H. ROTHMAN (54)
Vice President (Industrial Relations)
MICHAEL J. MARKS (57)
Secretary
TIMOTHY H. REID (49)
Treasurer
JOSEPH A. PALAZZOLO (47)
Controller

     *    Audit Committee Members
     **   Compensation and Stock Option
          Committee Members

All ages as of March 31, 1996


Principal Subsidiaries
and Affiliates (1)


A&B-Hawaii, Inc.                                             Honolulu
     Division:  Hawaiian Commercial & Sugar Company          Puunene, Maui
     Subsidiaries:
          A&B Development Company (California)               San Francisco
          A&B Properties, Inc.                               Honolulu
          California and Hawaiian Sugar Company, Inc.        Crockett, CA
          East Maui Irrigation Company, Limited              Puunene, Maui
          Kahului Trucking & Storage, Inc.                   Kahului, Maui
          Kauai Commercial Company, Incorporated             Puhi, Kauai
          Kukui'ula Development Company, Inc.                Poipu, Kauai
          McBryde Sugar Company, Limited                     Eleele, Kauai
               Subsidiary:  Island Coffee Company, Inc.      Eleele, Kauai
          South Shore Community Services, Inc.               Poipu, Kauai
          South Shore Resources, Inc.                        Poipu, Kauai
          WDCI, INC.                                         Honolulu

Hawaiian Sugar & Transportation Cooperative (2)              Crockett, CA

Matson Navigation Company, Inc.                              San Francisco
     Subsidiaries:
          Matson Intermodal System, Inc.                     San Francisco
          Matson Services Company, Inc.                      San Francisco
          Matson Terminals, Inc.                             San Francisco

1    Wholly owned unless otherwise indicated
2    A cooperative owned with other Hawaii sugar companies



Investor
Information


Annual Meeting
The Annual Meeting of Shareholders will be held in the Plaza Meeting Room on
the ground floor of Amfac Center, 745 Fort Street, Honolulu, Hawaii at 10 a.m.
on Thursday, April 25, 1996.

Investor Information
Shareholders having questions about A&B are encouraged to write to John C.
Couch, Chairman of the Board, President and Chief Executive Officer; or Michael
J. Marks, Vice President, General Counsel and Secretary.

Inquiries from professional investors may be directed to John B. Kelley, Vice
President, Investor Relations.  Phone (808)525-8422.

Form 10-K
Shareholders may obtain a copy of the Company's Annual Report on Form 10-K, as
filed with the Securities and Exchange Commission, without charge, by writing
to Michael J. Marks, Vice President, General Counsel and Secretary, Alexander &
Baldwin, Inc., P.O. Box 3440, Honolulu, HI 96801-3440.

Transfer Agent & Registrar
CHEMICAL MELLON
SHAREHOLDER SERVICES, L.L.C.
San Francisco, California

For questions regarding stock certificates or dividends, representatives of the
Transfer Agent may be reached at 1-800-356-2017, between 8a.m. and 8p.m.
Eastern Time.

Auditors
DELOITTE & TOUCHE LLP
Honolulu, Hawaii








Exhibit 22



                   ALEXANDER & BALDWIN, INC.
              SUBSIDIARIES AS OF FEBRUARY 29, 1996


                                                 State or Other
                                               Jurisdiction Under
Name of Subsidiary                              Which Organized
- ------------------                             ------------------


A&B-Hawaii, Inc.                                      Hawaii
   Subsidiaries:
      A & B Development Company (California)          California
      A & B Properties, Inc.                          Hawaii
      California and Hawaiian Sugar
      Company, Inc.                                   Hawaii
      East Maui Irrigation Company, Limited           Hawaii
      Kahului Trucking & Storage, Inc.                Hawaii
      Kauai Commercial Company, Incorporated          Hawaii
      Kukui'ula Development Company, Inc.             Hawaii
      McBryde Sugar Company, Limited                  Hawaii
            Subsidiary: Island Coffee
                        Company, Inc.                 Hawaii
      South Shore Community Services, Inc.            Hawaii
      South Shore Resources, Inc.                     Hawaii
      WDCI, INC.                                      Hawaii

Matson Navigation Company, Inc.                       Hawaii
   Subsidiaries:
      Matson Intermodal System, Inc.                  Hawaii
      Matson Services Company, Inc.                   Hawaii
      Matson Terminals, Inc.                          Hawaii





NOTE: Certain A&B subsidiaries, which considered in the aggregate do not
      constitute a significant subsidiary, have been omitted.  






<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
balance sheet as of December 31, 1995 and the statement of income for
the year ended December 31, 1995 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                                     <C>
<PERIOD-TYPE>                                 YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               DEC-31-1995
<CASH>                                           32150
<SECURITIES>                                         0
<RECEIVABLES>                                   116176
<ALLOWANCES>                                      5479
<INVENTORY>                                      86106
<CURRENT-ASSETS>                                307192
<PP&E>                                         1753906
<DEPRECIATION>                                  780392
<TOTAL-ASSETS>                                 1782759
<CURRENT-LIABILITIES>                           222793
<BONDS>                                         380389
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         37133
<OTHER-SE>                                      612545
<TOTAL-LIABILITY-AND-EQUITY>                   1782759
<SALES>                                         998201
<TOTAL-REVENUES>                               1020455
<CGS>                                           822111
<TOTAL-COSTS>                                   822111
<OTHER-EXPENSES>                                112961
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               33429
<INCOME-PRETAX>                                  51954
<INCOME-TAX>                                     19535
<INCOME-CONTINUING>                              32419
<DISCONTINUED>                                   23336
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     55755
<EPS-PRIMARY>                                     1.23
<EPS-DILUTED>                                     1.23
        

</TABLE>