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):
                                  October 20, 1998


                        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 October 20, 1998, Kansas City Southern  Industries,  Inc. ("KCSI")  announced
that a favorable  tax ruling on the initial  structure  proposed to the Internal
Revenue  Service  ("IRS") for the spin-off of its  Financial  Services  business
("Spin-off")  is not now expected.  Accordingly,  KCSI has withdrawn its pending
request for a tax ruling.  As a result of this  action,  the  Spin-off  will not
occur during 1998, as previously contemplated.

KCSI is  evaluating  alternatives  for  completion  of the Spin-off and plans to
resubmit a request for a ruling to the IRS as soon as an  alternative  structure
is developed  that will allow the Spin-off to be completed with the benefit of a
favorable tax ruling.



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 October 20, 1998, 
                                entitled, "Kansas City Southern Industries, Inc.
                                Announces Withdrawal of Request for Tax
                                Ruling," 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: November 5, 1998                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

    William H. Galligan (816-983-1551)                    Release No.: 1998-10:
    Asst. Vice President-Corporate Affairs               Date: October 20, 1998



                                  NEWS RELEASE
                      KANSAS CITY SOUTHERN INDUSTRIES, INC.
                 ANNOUNCES WITHDRAWAL OF REQUEST FOR TAX RULING

Kansas City, Missouri

    Kansas  City  Southern  Industries,  Inc.  ("KCSI")  announced  today that a
favorable tax ruling on the initial  structure  proposed to the Internal Revenue
Service ("IRS") for the spin-off of its Financial  Services  business is not now
expected.  Accordingly,  KCSI has withdrawn its pending request for a tax ruling
but plans to resubmit a request for a ruling as soon as an alternative structure
is developed.  As a result, the spin-off will not occur this year, as previously
contemplated.

    Joseph D.  Monello,  Vice  President  and Chief  Financial  Officer of KCSI,
stated,  "We had asked the IRS to issue a ruling on a structure for the spin-off
that best fit our Company's  business  needs and met the technical  requirements
for a tax-free  spin-off.  The IRS ultimately decided to exercise its discretion
not to issue an advance  ruling  because of certain  concerns  that a  structure
similar  to ours  might  be used  inappropriately  in  different  circumstances.
Because of the large amount of tax that could be owed if the  spin-off  were not
tax-free to the Company and its stockholders,  it is not prudent to proceed with
a spin-off as proposed without a private letter ruling."

    Landon H. Rowland, Chairman,  President and Chief Executive Officer of KCSI,
stated,  "The Company  remains  fully  committed to the  separation  of the KCSI
Transportation and Financial Services businesses. We plan to move ahead with the
spin-off  as promptly as  possible  using a  structure  that meets our  business
objectives  without  risking adverse tax  consequences.  The Company is studying
alternatives  for  completion  of the spin-off and expects to amend and resubmit
our ruling  request and  continue to work with the IRS until the spin-off can be
completed with the benefit of a favorable tax ruling."


                           . . . .  The End
[{"type": "8-K", "sequence": "1", "description": "WITHDRAWAL OF REQUEST FOR TAX RULING", "secsgml_size_bytes": 5799}]
{"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": "98738886"}, "business-address": {"street1": "114 W 11TH ST", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8165560303"}, "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):
                                  October 20, 1998

                        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 October 20, 1998, Kansas City Southern  Industries,  Inc. ("KCSI")  announced
that a favorable  tax ruling on the initial  structure  proposed to the Internal
Revenue  Service  ("IRS") for the spin-off of its  Financial  Services  business
("Spin-off")  is not now expected.  Accordingly,  KCSI has withdrawn its pending
request for a tax ruling.  As a result of this  action,  the  Spin-off  will not
occur during 1998, as previously contemplated.

KCSI is  evaluating  alternatives  for  completion  of the Spin-off and plans to
resubmit a request for a ruling to the IRS as soon as an  alternative  structure
is developed  that will allow the Spin-off to be completed with the benefit of a
favorable tax ruling.

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 October 20, 1998, 
                                entitled, "Kansas City Southern Industries, Inc.
                                Announces Withdrawal of Request for Tax
                                Ruling," 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: November 5, 1998                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

    William H. Galligan (816-983-1551)                    Release No.: 1998-10:
    Asst. Vice President-Corporate Affairs               Date: October 20, 1998

                                  NEWS RELEASE
                      KANSAS CITY SOUTHERN INDUSTRIES, INC.
                 ANNOUNCES WITHDRAWAL OF REQUEST FOR TAX RULING

Kansas City, Missouri

    Kansas  City  Southern  Industries,  Inc.  ("KCSI")  announced  today that a
favorable tax ruling on the initial  structure  proposed to the Internal Revenue
Service ("IRS") for the spin-off of its Financial  Services  business is not now
expected.  Accordingly,  KCSI has withdrawn its pending request for a tax ruling
but plans to resubmit a request for a ruling as soon as an alternative structure
is developed.  As a result, the spin-off will not occur this year, as previously
contemplated.

    Joseph D.  Monello,  Vice  President  and Chief  Financial  Officer of KCSI,
stated,  "We had asked the IRS to issue a ruling on a structure for the spin-off
that best fit our Company's  business  needs and met the technical  requirements
for a tax-free  spin-off.  The IRS ultimately decided to exercise its discretion
not to issue an advance  ruling  because of certain  concerns  that a  structure
similar  to ours  might  be used  inappropriately  in  different  circumstances.
Because of the large amount of tax that could be owed if the  spin-off  were not
tax-free to the Company and its stockholders,  it is not prudent to proceed with
a spin-off as proposed without a private letter ruling."

    Landon H. Rowland, Chairman,  President and Chief Executive Officer of KCSI,
stated,  "The Company  remains  fully  committed to the  separation  of the KCSI
Transportation and Financial Services businesses. We plan to move ahead with the
spin-off  as promptly as  possible  using a  structure  that meets our  business
objectives  without  risking adverse tax  consequences.  The Company is studying
alternatives  for  completion  of the spin-off and expects to amend and resubmit
our ruling  request and  continue to work with the IRS until the spin-off can be
completed with the benefit of a favorable tax ruling."

                           . . . .  The End