SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

                 Date of Report (Date of earliest event reported):
                                   June 20, 2001


                       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 4.     Changes in Registrant's Certifying Accountant

This filing is made pursuant to the  disclosure  requirements  of Item 304(a) of
Regulation S-K, Changes in and disagreements  with accountants on accounting and
financial disclosure.

Changes in Registrant's Certifying Accountant

On June 20, 2001,  Kansas City  Southern  Industries,  Inc.  ("the  Registrant")
notified  the  accounting  firm  of  PricewaterhouseCoopers   LLP  ("PWC"),  the
Registrant's  principal accountant during the two most recent fiscal years, that
PWC had been replaced as the Registrant's principal accountant.  Additionally on
June 20, 2001, the Registrant  engaged the accounting  firm of KPMG LLP ("KPMG")
as its principal accountant for the current fiscal year.

For the two most recent  fiscal  years,  the reports of PWC on the  Registrant's
financial  statements  contained no adverse opinion or disclaimer of opinion and
were not qualified as to uncertainty, audit scope or accounting principle.

The decision to change  certifying  accountants was discussed with  Registrant's
Audit  Committee  and  approved  by  the  Chairman  of  the  Registrant's  Audit
Committee.

The selection of KPMG was made after the  completion  of a competitive  proposal
process, which involved all five major accounting firms and began in April 2001.

Disagreements with Accountants on Accounting and Financial Disclosure

In  connection  with its audits for the two most recent fiscal years and through
June 20,  2001,  there  have  been no  disagreements  with PWC on any  matter of
accounting principles or practices, financial statements disclosure, or auditing
scope or procedure,  which  disagreements if not resolved to the satisfaction of
PWC would have  caused  them to make  reference  thereto in their  report on the
financial statements for such years except that:

During the year ended December 31, 2000, the Registrant  completed a transaction
to monetize,  for a one-time  payment,  the rights to the future  income  stream
associated with certain billboard  advertising sites located on the right of way
of the Registrant's  railroad operating property.  The transaction was completed
with a third party vendor to the Registrant,  which provides advertising signage
services to other companies in the railroad industry.  Based upon the details of
the transaction,  the Registrant believed that the associated transaction should
be  accounted  for under the  guidance of Staff  Accounting  Bulletin  No. 101 -
"Revenue  Recognition in Financial  Statements"  ("SAB 101") and consistent with
railroad industry  accounting  practices.  After reviewing industry practice and
SAB 101 related to the specifics of this transaction,  the Registrant  concluded
that the appropriate  criteria,  of both industry  accounting  practices and the
guidance in SAB 101, were met to record the initial  one-time  payment as income
in  the  Statement  of  Income  for  the  year  ended  December  31,  2000.  The
Registrant's certifying accountant, PWC, believed that SAB 101 did not apply and
railroad industry  accounting  practice would not take precedence over standards
promulgated by the Financial  Accounting  Standards Board. PWC believed that the
transaction  should be evaluated  under lease  accounting  rules which,  in this
instance,  would  require  that the up-front  payment be initially  deferred and
recognized over future periods.  After further discussion between the Registrant
and PWC, the  Registrant  recorded the  transaction as recommended by PWC in the
financial statements for the year ended December 31, 2000.
<PAGE>


During the period of time that the Registrant was exploring with PWC the various
accounting  rules  regarding this matter and following  PWC's  expression of its
conclusion  with regard to this  matter,  the  Registrant  inquired of PWC as to
other avenues that might be available to the Registrant.  PWC acknowledged  that
one  alternative  might  be for the  Registrant  to seek a SAS 50  opinion  from
another independent accountant.  In early February 2001, Registrant's management
discussed  this  transaction  with KPMG to obtain an  understanding  of relevant
industry practice and application of SAB 101. Also, at the Registrant's request,
PWC  discussed  the issue with  representatives  of the other  major  accounting
firms,  including KPMG. KPMG  communicated to the Registrant that this issue was
discussed  with  representatives  of the  major  accounting  firms  and that PWC
reaffirmed  their  earlier  position on the proper  accounting  treatment of the
transaction.  The  Registrant  did not  request a SAS 50 opinion or report  from
KPMG,  and none was issued.  Additionally,  KPMG did not  express  any  specific
viewpoint to the Registrant regarding the accounting for the transaction.

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Other Reportable Events

 The Registrant  became aware that as a result of a  reorganization  during 2001
between  two  of the  participants  in the  Grupo  TFM  venture  (in  which  the
Registrant  has a minority  interest),  Grupo TFM may be  reported by one of the
participants  as  a  consolidated  subsidiary  under  International   Accounting
Standards.  The  Registrant  has  historically  treated  Grupo  TFM as a foreign
corporate joint venture under US generally accepted  accounting  principles and,
accordingly,  has not provided  deferred  income taxes at the statutory rates on
the  difference  between the  financial  accounting  and income tax bases in its
investment  in Grupo TFM. PWC has informed  the  Registrant  that at the time of
their  replacement,  PWC had not completed the analysis and testing necessary to
confirm  the  Registrant's  continued  accounting  for  Grupo  TFM as a  foreign
corporate joint venture under these  circumstances  and,  accordingly,  that PWC
believes this matter  represents a reportable  event under Regulation SK Section
304(a)(1)(v)(D).

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Item 7.     Exhibits

            Exhibit No.                         Document

            16.1                                Letter of PricewaterhouseCoopers
                                                LLP, addressed to the Securities
                                                and     Exchange      Commission
                                                indicating  whether  they  agree
                                                with      the       Registrant's
                                                disclosures   made  pursuant  to
                                                item 304(a).

 .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: June 26, 2001                         By: /s/  Louis G. Van Horn
                                               ----------------------------
                                                    Louis G. Van Horn
                                             Vice President and Comptroller
                                                (Principal Accounting Officer)


<PAGE>


EXHIBIT 16.1

                      [PRICEWATERHOUSECOOPERS LLP LETTERHEAD]



June 25, 2001


Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Commissioners:

We have read the statements made by Kansas City Southern Industries,  Inc. (copy
attached),  which we understand will be filed with the  Commission,  pursuant to
Item 4 of Form 8-K,  as part of the  Company's  Form 8-K  report  dated June 20,
2001.  We agree  with the  statements  concerning  our  Firm in such  Form  8-K.
However,  we make no comment with respect to comments regarding the Registrant's
consultation  with KPMG LLP  relating to the matter  described  in such Form 8-K
under "Disagreements with Accountants on Accounting and Financial Disclosure".

Very truly yours,



/s/ PRICEWATERHOUSECOOPERS LLP


<PAGE>




                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

                 Date of Report (Date of earliest event reported):
                                   June 20, 2001


                       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 4.     Changes in Registrant's Certifying Accountant

This filing is made pursuant to the  disclosure  requirements  of Item 304(a) of
Regulation S-K, Changes in and disagreements  with accountants on accounting and
financial disclosure.

Changes in Registrant's Certifying Accountant

On June 20, 2001,  Kansas City  Southern  Industries,  Inc.  ("the  Registrant")
notified  the  accounting  firm  of  PricewaterhouseCoopers   LLP  ("PWC"),  the
Registrant's  principal accountant during the two most recent fiscal years, that
PWC had been replaced as the Registrant's principal accountant.  Additionally on
June 20, 2001, the Registrant  engaged the accounting  firm of KPMG LLP ("KPMG")
as its principal accountant for the current fiscal year.

For the two most recent  fiscal  years,  the reports of PWC on the  Registrant's
financial  statements  contained no adverse opinion or disclaimer of opinion and
were not qualified as to uncertainty, audit scope or accounting principle.

The decision to change  certifying  accountants was discussed with  Registrant's
Audit  Committee  and  approved  by  the  Chairman  of  the  Registrant's  Audit
Committee.

The selection of KPMG was made after the  completion  of a competitive  proposal
process, which involved all five major accounting firms and began in April 2001.

Disagreements with Accountants on Accounting and Financial Disclosure

In  connection  with its audits for the two most recent fiscal years and through
June 20,  2001,  there  have  been no  disagreements  with PWC on any  matter of
accounting principles or practices, financial statements disclosure, or auditing
scope or procedure,  which  disagreements if not resolved to the satisfaction of
PWC would have  caused  them to make  reference  thereto in their  report on the
financial statements for such years except that:

During the year ended December 31, 2000, the Registrant  completed a transaction
to monetize,  for a one-time  payment,  the rights to the future  income  stream
associated with certain billboard  advertising sites located on the right of way
of the Registrant's  railroad operating property.  The transaction was completed
with a third party vendor to the Registrant,  which provides advertising signage
services to other companies in the railroad industry.  Based upon the details of
the transaction,  the Registrant believed that the associated transaction should
be  accounted  for under the  guidance of Staff  Accounting  Bulletin  No. 101 -
"Revenue  Recognition in Financial  Statements"  ("SAB 101") and consistent with
railroad industry  accounting  practices.  After reviewing industry practice and
SAB 101 related to the specifics of this transaction,  the Registrant  concluded
that the appropriate  criteria,  of both industry  accounting  practices and the
guidance in SAB 101, were met to record the initial  one-time  payment as income
in  the  Statement  of  Income  for  the  year  ended  December  31,  2000.  The
Registrant's certifying accountant, PWC, believed that SAB 101 did not apply and
railroad industry  accounting  practice would not take precedence over standards
promulgated by the Financial  Accounting  Standards Board. PWC believed that the
transaction  should be evaluated  under lease  accounting  rules which,  in this
instance,  would  require  that the up-front  payment be initially  deferred and
recognized over future periods.  After further discussion between the Registrant
and PWC, the  Registrant  recorded the  transaction as recommended by PWC in the
financial statements for the year ended December 31, 2000.

<PAGE>

During the period of time that the Registrant was exploring with PWC the various
accounting  rules  regarding this matter and following  PWC's  expression of its
conclusion  with regard to this  matter,  the  Registrant  inquired of PWC as to
other avenues that might be available to the Registrant.  PWC acknowledged  that
one  alternative  might  be for the  Registrant  to seek a SAS 50  opinion  from
another independent accountant.  In early February 2001, Registrant's management
discussed  this  transaction  with KPMG to obtain an  understanding  of relevant
industry practice and application of SAB 101. Also, at the Registrant's request,
PWC  discussed  the issue with  representatives  of the other  major  accounting
firms,  including KPMG. KPMG  communicated to the Registrant that this issue was
discussed  with  representatives  of the  major  accounting  firms  and that PWC
reaffirmed  their  earlier  position on the proper  accounting  treatment of the
transaction.  The  Registrant  did not  request a SAS 50 opinion or report  from
KPMG,  and none was issued.  Additionally,  KPMG did not  express  any  specific
viewpoint to the Registrant regarding the accounting for the transaction.

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Other Reportable Events

 The Registrant  became aware that as a result of a  reorganization  during 2001
between  two  of the  participants  in the  Grupo  TFM  venture  (in  which  the
Registrant  has a minority  interest),  Grupo TFM may be  reported by one of the
participants  as  a  consolidated  subsidiary  under  International   Accounting
Standards.  The  Registrant  has  historically  treated  Grupo  TFM as a foreign
corporate joint venture under US generally accepted  accounting  principles and,
accordingly,  has not provided  deferred  income taxes at the statutory rates on
the  difference  between the  financial  accounting  and income tax bases in its
investment  in Grupo TFM. PWC has informed  the  Registrant  that at the time of
their  replacement,  PWC had not completed the analysis and testing necessary to
confirm  the  Registrant's  continued  accounting  for  Grupo  TFM as a  foreign
corporate joint venture under these  circumstances  and,  accordingly,  that PWC
believes this matter  represents a reportable  event under Regulation SK Section
304(a)(1)(v)(D).

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Item 7.     Exhibits

            Exhibit No.                         Document

            16.1                                Letter of PricewaterhouseCoopers
                                                LLP, addressed to the Securities
                                                and     Exchange      Commission
                                                indicating  whether  they  agree
                                                with      the       Registrant's
                                                disclosures   made  pursuant  to
                                                item 304(a).

 .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: June 26, 2001                         By: /s/  Louis G. Van Horn
                                               ----------------------------
                                                    Louis G. Van Horn
                                             Vice President and Comptroller
                                                (Principal Accounting Officer)


<PAGE>


EXHIBIT 16.1
[{"type": "8-K", "sequence": "1", "filename": "accountingchange.txt", "secsgml_size_bytes": 18890}]
{"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": "1667742"}, "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):
                                   June 20, 2001

                       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 4.     Changes in Registrant's Certifying Accountant

This filing is made pursuant to the  disclosure  requirements  of Item 304(a) of
Regulation S-K, Changes in and disagreements  with accountants on accounting and
financial disclosure.

Changes in Registrant's Certifying Accountant

On June 20, 2001,  Kansas City  Southern  Industries,  Inc.  ("the  Registrant")
notified  the  accounting  firm  of  PricewaterhouseCoopers   LLP  ("PWC"),  the
Registrant's  principal accountant during the two most recent fiscal years, that
PWC had been replaced as the Registrant's principal accountant.  Additionally on
June 20, 2001, the Registrant  engaged the accounting  firm of KPMG LLP ("KPMG")
as its principal accountant for the current fiscal year.

For the two most recent  fiscal  years,  the reports of PWC on the  Registrant's
financial  statements  contained no adverse opinion or disclaimer of opinion and
were not qualified as to uncertainty, audit scope or accounting principle.

The decision to change  certifying  accountants was discussed with  Registrant's
Audit  Committee  and  approved  by  the  Chairman  of  the  Registrant's  Audit
Committee.

The selection of KPMG was made after the  completion  of a competitive  proposal
process, which involved all five major accounting firms and began in April 2001.

Disagreements with Accountants on Accounting and Financial Disclosure

In  connection  with its audits for the two most recent fiscal years and through
June 20,  2001,  there  have  been no  disagreements  with PWC on any  matter of
accounting principles or practices, financial statements disclosure, or auditing
scope or procedure,  which  disagreements if not resolved to the satisfaction of
PWC would have  caused  them to make  reference  thereto in their  report on the
financial statements for such years except that:

During the year ended December 31, 2000, the Registrant  completed a transaction
to monetize,  for a one-time  payment,  the rights to the future  income  stream
associated with certain billboard  advertising sites located on the right of way
of the Registrant's  railroad operating property.  The transaction was completed
with a third party vendor to the Registrant,  which provides advertising signage
services to other companies in the railroad industry.  Based upon the details of
the transaction,  the Registrant believed that the associated transaction should
be  accounted  for under the  guidance of Staff  Accounting  Bulletin  No. 101 -
"Revenue  Recognition in Financial  Statements"  ("SAB 101") and consistent with
railroad industry  accounting  practices.  After reviewing industry practice and
SAB 101 related to the specifics of this transaction,  the Registrant  concluded
that the appropriate  criteria,  of both industry  accounting  practices and the
guidance in SAB 101, were met to record the initial  one-time  payment as income
in  the  Statement  of  Income  for  the  year  ended  December  31,  2000.  The
Registrant's certifying accountant, PWC, believed that SAB 101 did not apply and
railroad industry  accounting  practice would not take precedence over standards
promulgated by the Financial  Accounting  Standards Board. PWC believed that the
transaction  should be evaluated  under lease  accounting  rules which,  in this
instance,  would  require  that the up-front  payment be initially  deferred and
recognized over future periods.  After further discussion between the Registrant
and PWC, the  Registrant  recorded the  transaction as recommended by PWC in the
financial statements for the year ended December 31, 2000.
During the period of time that the Registrant was exploring with PWC the various
accounting  rules  regarding this matter and following  PWC's  expression of its
conclusion  with regard to this  matter,  the  Registrant  inquired of PWC as to
other avenues that might be available to the Registrant.  PWC acknowledged  that
one  alternative  might  be for the  Registrant  to seek a SAS 50  opinion  from
another independent accountant.  In early February 2001, Registrant's management
discussed  this  transaction  with KPMG to obtain an  understanding  of relevant
industry practice and application of SAB 101. Also, at the Registrant's request,
PWC  discussed  the issue with  representatives  of the other  major  accounting
firms,  including KPMG. KPMG  communicated to the Registrant that this issue was
discussed  with  representatives  of the  major  accounting  firms  and that PWC
reaffirmed  their  earlier  position on the proper  accounting  treatment of the
transaction.  The  Registrant  did not  request a SAS 50 opinion or report  from
KPMG,  and none was issued.  Additionally,  KPMG did not  express  any  specific
viewpoint to the Registrant regarding the accounting for the transaction.

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Other Reportable Events

 The Registrant  became aware that as a result of a  reorganization  during 2001
between  two  of the  participants  in the  Grupo  TFM  venture  (in  which  the
Registrant  has a minority  interest),  Grupo TFM may be  reported by one of the
participants  as  a  consolidated  subsidiary  under  International   Accounting
Standards.  The  Registrant  has  historically  treated  Grupo  TFM as a foreign
corporate joint venture under US generally accepted  accounting  principles and,
accordingly,  has not provided  deferred  income taxes at the statutory rates on
the  difference  between the  financial  accounting  and income tax bases in its
investment  in Grupo TFM. PWC has informed  the  Registrant  that at the time of
their  replacement,  PWC had not completed the analysis and testing necessary to
confirm  the  Registrant's  continued  accounting  for  Grupo  TFM as a  foreign
corporate joint venture under these  circumstances  and,  accordingly,  that PWC
believes this matter  represents a reportable  event under Regulation SK Section
304(a)(1)(v)(D).

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Item 7.     Exhibits

            Exhibit No.                         Document

            16.1                                Letter of PricewaterhouseCoopers
                                                LLP, addressed to the Securities
                                                and     Exchange      Commission
                                                indicating  whether  they  agree
                                                with      the       Registrant's
                                                disclosures   made  pursuant  to
                                                item 304(a).

 .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: June 26, 2001                         By: /s/  Louis G. Van Horn
                                               ----------------------------
                                                    Louis G. Van Horn
                                             Vice President and Comptroller
                                                (Principal Accounting Officer)
EXHIBIT 16.1

                      [PRICEWATERHOUSECOOPERS LLP LETTERHEAD]

June 25, 2001

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Commissioners:

We have read the statements made by Kansas City Southern Industries,  Inc. (copy
attached),  which we understand will be filed with the  Commission,  pursuant to
Item 4 of Form 8-K,  as part of the  Company's  Form 8-K  report  dated June 20,
2001.  We agree  with the  statements  concerning  our  Firm in such  Form  8-K.
However,  we make no comment with respect to comments regarding the Registrant's
consultation  with KPMG LLP  relating to the matter  described  in such Form 8-K
under "Disagreements with Accountants on Accounting and Financial Disclosure".

Very truly yours,

/s/ PRICEWATERHOUSECOOPERS LLP
SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

                 Date of Report (Date of earliest event reported):
                                   June 20, 2001

                       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 4.     Changes in Registrant's Certifying Accountant

This filing is made pursuant to the  disclosure  requirements  of Item 304(a) of
Regulation S-K, Changes in and disagreements  with accountants on accounting and
financial disclosure.

Changes in Registrant's Certifying Accountant

On June 20, 2001,  Kansas City  Southern  Industries,  Inc.  ("the  Registrant")
notified  the  accounting  firm  of  PricewaterhouseCoopers   LLP  ("PWC"),  the
Registrant's  principal accountant during the two most recent fiscal years, that
PWC had been replaced as the Registrant's principal accountant.  Additionally on
June 20, 2001, the Registrant  engaged the accounting  firm of KPMG LLP ("KPMG")
as its principal accountant for the current fiscal year.

For the two most recent  fiscal  years,  the reports of PWC on the  Registrant's
financial  statements  contained no adverse opinion or disclaimer of opinion and
were not qualified as to uncertainty, audit scope or accounting principle.

The decision to change  certifying  accountants was discussed with  Registrant's
Audit  Committee  and  approved  by  the  Chairman  of  the  Registrant's  Audit
Committee.

The selection of KPMG was made after the  completion  of a competitive  proposal
process, which involved all five major accounting firms and began in April 2001.

Disagreements with Accountants on Accounting and Financial Disclosure

In  connection  with its audits for the two most recent fiscal years and through
June 20,  2001,  there  have  been no  disagreements  with PWC on any  matter of
accounting principles or practices, financial statements disclosure, or auditing
scope or procedure,  which  disagreements if not resolved to the satisfaction of
PWC would have  caused  them to make  reference  thereto in their  report on the
financial statements for such years except that:

During the year ended December 31, 2000, the Registrant  completed a transaction
to monetize,  for a one-time  payment,  the rights to the future  income  stream
associated with certain billboard  advertising sites located on the right of way
of the Registrant's  railroad operating property.  The transaction was completed
with a third party vendor to the Registrant,  which provides advertising signage
services to other companies in the railroad industry.  Based upon the details of
the transaction,  the Registrant believed that the associated transaction should
be  accounted  for under the  guidance of Staff  Accounting  Bulletin  No. 101 -
"Revenue  Recognition in Financial  Statements"  ("SAB 101") and consistent with
railroad industry  accounting  practices.  After reviewing industry practice and
SAB 101 related to the specifics of this transaction,  the Registrant  concluded
that the appropriate  criteria,  of both industry  accounting  practices and the
guidance in SAB 101, were met to record the initial  one-time  payment as income
in  the  Statement  of  Income  for  the  year  ended  December  31,  2000.  The
Registrant's certifying accountant, PWC, believed that SAB 101 did not apply and
railroad industry  accounting  practice would not take precedence over standards
promulgated by the Financial  Accounting  Standards Board. PWC believed that the
transaction  should be evaluated  under lease  accounting  rules which,  in this
instance,  would  require  that the up-front  payment be initially  deferred and
recognized over future periods.  After further discussion between the Registrant
and PWC, the  Registrant  recorded the  transaction as recommended by PWC in the
financial statements for the year ended December 31, 2000.
During the period of time that the Registrant was exploring with PWC the various
accounting  rules  regarding this matter and following  PWC's  expression of its
conclusion  with regard to this  matter,  the  Registrant  inquired of PWC as to
other avenues that might be available to the Registrant.  PWC acknowledged  that
one  alternative  might  be for the  Registrant  to seek a SAS 50  opinion  from
another independent accountant.  In early February 2001, Registrant's management
discussed  this  transaction  with KPMG to obtain an  understanding  of relevant
industry practice and application of SAB 101. Also, at the Registrant's request,
PWC  discussed  the issue with  representatives  of the other  major  accounting
firms,  including KPMG. KPMG  communicated to the Registrant that this issue was
discussed  with  representatives  of the  major  accounting  firms  and that PWC
reaffirmed  their  earlier  position on the proper  accounting  treatment of the
transaction.  The  Registrant  did not  request a SAS 50 opinion or report  from
KPMG,  and none was issued.  Additionally,  KPMG did not  express  any  specific
viewpoint to the Registrant regarding the accounting for the transaction.

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Other Reportable Events

 The Registrant  became aware that as a result of a  reorganization  during 2001
between  two  of the  participants  in the  Grupo  TFM  venture  (in  which  the
Registrant  has a minority  interest),  Grupo TFM may be  reported by one of the
participants  as  a  consolidated  subsidiary  under  International   Accounting
Standards.  The  Registrant  has  historically  treated  Grupo  TFM as a foreign
corporate joint venture under US generally accepted  accounting  principles and,
accordingly,  has not provided  deferred  income taxes at the statutory rates on
the  difference  between the  financial  accounting  and income tax bases in its
investment  in Grupo TFM. PWC has informed  the  Registrant  that at the time of
their  replacement,  PWC had not completed the analysis and testing necessary to
confirm  the  Registrant's  continued  accounting  for  Grupo  TFM as a  foreign
corporate joint venture under these  circumstances  and,  accordingly,  that PWC
believes this matter  represents a reportable  event under Regulation SK Section
304(a)(1)(v)(D).

The Registrant's  management and PWC discussed this matter with the Registrant's
Audit Committee.

Additionally, the Registrant has authorized PWC to respond fully to inquiries of
KPMG concerning this matter.

Item 7.     Exhibits

            Exhibit No.                         Document

            16.1                                Letter of PricewaterhouseCoopers
                                                LLP, addressed to the Securities
                                                and     Exchange      Commission
                                                indicating  whether  they  agree
                                                with      the       Registrant's
                                                disclosures   made  pursuant  to
                                                item 304(a).

 .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: June 26, 2001                         By: /s/  Louis G. Van Horn
                                               ----------------------------
                                                    Louis G. Van Horn
                                             Vice President and Comptroller
                                                (Principal Accounting Officer)
EXHIBIT 16.1