SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K


                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                 Date of Report (Date of earliest event reported):
                                  July 12, 1999


                      KANSAS CITY SOUTHERN INDUSTRIES, INC.
               (Exact name of company as specified in its charter)


            DELAWARE                     1-4717                44-0663509
  (State or other jurisdiction      (Commission file          (IRS Employer
        of incorporation)               number)          Identification Number)


                114 West 11th Street, Kansas City, Missouri 64105
               (Address of principal executive offices) (Zip Code)


                Company's telephone number, including area code:
                                (816) 983 - 1303


                                 Not Applicable
          (Former name or former address if changed since last report)









<PAGE>

Item 5.          Other Events

On July 12, 1999,  Kansas City Southern  Industries,  Inc. ("KCSI" or "Company")
announced that the Internal Revenue Service has issued a favorable tax ruling on
the  Company's  anticipated   "tax-free"  spin-off  of  its  financial  services
companies.



Item 7.          Financial Statements and Exhibits

(c)              Exhibits

                 Exhibit No.          Document
                 (99)                 Additional Exhibits

                 99.1                 Press Release issued by Kansas City
                                      Southern Industries, Inc. dated July 12,
                                      1999, entitled, "IRS Provides Favorable
                                      Ruling on Separation", is attached hereto
                                      as Exhibit 99.1





<PAGE>




SIGNATURE

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


                               Kansas City Southern Industries, Inc.


Date: July 16, 1999          By:          /s/ Louis G. Van Horn
                                -------------------------------------------
                                            Louis G. Van Horn
                                     Vice President and Comptroller
                                     (Principal Accounting Officer)

<PAGE>


EXHIBIT 99.1

Contact:                                  KCSI
    Landon H. Rowland (816-983-1393)      Kansas City Southern Industries, Inc.
    Chairman, President and CEO                            114 West 11th Street
                                                    Kansas City, Missouri 64105
    Joseph D. Monello (816-983-1213)
    Vice President & Chief Financial Officer                   NYSE Symbol: KSU

                                     Release No.: 1999-06:  Date: July 12, 1999



                                  NEWS RELEASE

                   IRS PROVIDES FAVORABLE RULING ON SEPARATION

Kansas City, Missouri

     Kansas City Southern  Industries,  Inc.  ("KCSI") today  announced that the
Internal  Revenue  Service  has  issued  a  favorable  ruling  on the  Company's
anticipated "tax-free" spin-off of its financial services companies.

    Janus Capital  Corporation,  Berger Associates,  Inc., Nelson Money Managers
plc and KCSI's 32% ownership of DST Systems, Inc. have been contributed to a new
holding  company,  "Stilwell  Financial,  Inc." which is the company  that is to
separated from KCSI. It is contemplated  that Stilwell  Financial,  Inc. will be
listed on the NYSE and, at about the time of the separation,  will begin trading
under the symbol "SV".

    KCSI  anticipates the spin-off will occur during the fourth quarter of 1999.
Following  the  transaction,  KCSI will  continue  to own and  operate  its rail
transportation companies, trading under the symbol of "KSU".

                      ********************************

    This news release  includes  statements  concerning  potential future events
involving  the  Company,  which  could  materially  differ  from the events that
actually occur. The differences could be caused by a number of factors including
those  factors  identified  in a current  report on Form 8-K dated  June 3, 1997
filed by the Company with the  Securities  and Exchange  Commission  (Commission
file no. 1-4717). The Company will not update any forward-looking  statements in
this news release to reflect future events or developments.



                           . . . .  The End
[{"type": "8-K", "sequence": "1", "description": "FAVORABLE TAX RULING", "secsgml_size_bytes": 4812}]
{"company-data": {"conformed-name": "KANSAS CITY SOUTHERN INDUSTRIES INC", "cik": "0000054480", "assigned-sic": "4011", "irs-number": "440663509", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-04717", "film-number": "99665895"}, "business-address": {"street1": "114 W 11TH ST", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8169831303"}, "mail-address": {"street1": "114 WEST 11TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105"}}
SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                 Date of Report (Date of earliest event reported):
                                  July 12, 1999

                      KANSAS CITY SOUTHERN INDUSTRIES, INC.
               (Exact name of company as specified in its charter)

            DELAWARE                     1-4717                44-0663509
  (State or other jurisdiction      (Commission file          (IRS Employer
        of incorporation)               number)          Identification Number)

                114 West 11th Street, Kansas City, Missouri 64105
               (Address of principal executive offices) (Zip Code)

                Company's telephone number, including area code:
                                (816) 983 - 1303

                                 Not Applicable
          (Former name or former address if changed since last report)
Item 5.          Other Events

On July 12, 1999,  Kansas City Southern  Industries,  Inc. ("KCSI" or "Company")
announced that the Internal Revenue Service has issued a favorable tax ruling on
the  Company's  anticipated   "tax-free"  spin-off  of  its  financial  services
companies.

Item 7.          Financial Statements and Exhibits

(c)              Exhibits

                 Exhibit No.          Document
                 (99)                 Additional Exhibits

                 99.1                 Press Release issued by Kansas City
                                      Southern Industries, Inc. dated July 12,
                                      1999, entitled, "IRS Provides Favorable
                                      Ruling on Separation", is attached hereto
                                      as Exhibit 99.1
SIGNATURE

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

                               Kansas City Southern Industries, Inc.

Date: July 16, 1999          By:          /s/ Louis G. Van Horn
                                -------------------------------------------
                                            Louis G. Van Horn
                                     Vice President and Comptroller
                                     (Principal Accounting Officer)
EXHIBIT 99.1

Contact:                                  KCSI
    Landon H. Rowland (816-983-1393)      Kansas City Southern Industries, Inc.
    Chairman, President and CEO                            114 West 11th Street
                                                    Kansas City, Missouri 64105
    Joseph D. Monello (816-983-1213)
    Vice President & Chief Financial Officer                   NYSE Symbol: KSU

                                     Release No.: 1999-06:  Date: July 12, 1999

                                  NEWS RELEASE

                   IRS PROVIDES FAVORABLE RULING ON SEPARATION

Kansas City, Missouri

     Kansas City Southern  Industries,  Inc.  ("KCSI") today  announced that the
Internal  Revenue  Service  has  issued  a  favorable  ruling  on the  Company's
anticipated "tax-free" spin-off of its financial services companies.

    Janus Capital  Corporation,  Berger Associates,  Inc., Nelson Money Managers
plc and KCSI's 32% ownership of DST Systems, Inc. have been contributed to a new
holding  company,  "Stilwell  Financial,  Inc." which is the company  that is to
separated from KCSI. It is contemplated  that Stilwell  Financial,  Inc. will be
listed on the NYSE and, at about the time of the separation,  will begin trading
under the symbol "SV".

    KCSI  anticipates the spin-off will occur during the fourth quarter of 1999.
Following  the  transaction,  KCSI will  continue  to own and  operate  its rail
transportation companies, trading under the symbol of "KSU".

                      ********************************

    This news release  includes  statements  concerning  potential future events
involving  the  Company,  which  could  materially  differ  from the events that
actually occur. The differences could be caused by a number of factors including
those  factors  identified  in a current  report on Form 8-K dated  June 3, 1997
filed by the Company with the  Securities  and Exchange  Commission  (Commission
file no. 1-4717). The Company will not update any forward-looking  statements in
this news release to reflect future events or developments.

                           . . . .  The End