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EXHIBIT 99.1

All information provided under Item 7 (c), Exhibit 99.1, remains unchanged
from the Current Report on Form 8-K dated November 12, 1996 (File No. 1-4717),
except for the specific paragraphs and sections within this Form 8-K/A as
provided below. 

AN UPDATE OF CAUTIONARY STATEMENTS WITH RESPECT TO THE "SAFE HARBOR"
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements when such statements are accompanied by
meaningful cautionary statements.  The management of Kansas City Southern
Industries, Inc. (" Company"; "KCSI") may occasionally make forward-looking
statements and estimates (such as forecasts and projections) of the Company's
future performance or statements of management's plans and objectives.  These
forward-looking statements may be contained in, among other things, filings
with the Securities and Exchange Commission and press releases made by the
Company, or may be made orally by the officers of the Company.  Actual results
of the Company's operations could materially differ from those indicated in
the forward-looking statements.  Therefore, no assurances can be given that
the estimates or comments indicated in such forward-looking statements will be
realized.  Significant factors that could cause the Company's actual results
to differ from those indicated in the forward-looking statements include, but
are not limited to, the factors detailed in the Company's Current Report on
Form 8-K dated November 12, 1996 (File No. 1-4717), which is hereby
incorporated by reference, together with those delineated below.  Persons
evaluating such forward-looking comments should carefully consider these
factors, and any amendments or supplements hereto, in addition to the other
information contained in the Company's public documents.


GENERAL BUSINESS

Results of and Market for Investments Held for Operating Purposes
The Company holds investments in unconsolidated affiliates and certain other
investments.  Unfavorable results reported by unconsolidated affiliates could
have a material adverse effect on the earnings and financial position of the
Company.  Further, one significant equity investment, Grupo Transportacion
Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM," formerly Transportacion
Ferroviaria Mexicana, S. de R.L. de C.V.), operates primarily in Mexico.  The
investment in Grupo TFM has certain risks associated with operating in Mexico,
including, among others, foreign currency exchange, cultural differences,
varying labor and operating practices, political risk, and differences between
the U.S. and Mexican economies.  There can be no assurances that the various
risks associated with operating in Mexico can be effectively and economically
mitigated by Grupo TFM.  Additionally, no assurances can be given that a
favorable market will exist for any of the Company's investments, and
therefore the value of these investments could potentially become impaired. 


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Change of Control Considerations
The agreements that follow could affect a potential change in control of the
Company and/or its ownership interest in significant subsidiaries and
affiliates:

i)    The Company has adopted a Stockholder Rights Plan which, under certain
      circumstances, would significantly dilute the interest in the Company of
      persons seeking to acquire control of the Company without prior approval
      from the KCSI Board of Directors ("Board");

ii)   An agreement between KCSI and Janus minority owners contains provisions
      that could require the Company, under a "change of ownership" of the
      Company, to sell its Janus stock to the minority stockholders or to
      purchase Janus stock from such holders;  

iii)  DST Systems, Inc. ("DST"), an unconsolidated affiliate of the Company,
      has a Stockholders' Rights Agreement containing provisions which, upon a
      "change in control" of KCSI (as defined therein), could result in
      substantial dilution of the Company's interest in DST;

iv)   The Company is party to certain agreements with Transportacion Maritima
      Mexicana, S.A. de C.V. ("TMM") covering the Grupo TFM and Mexrail, Inc.
      ("Mexrail") joint ventures.  These agreements contain "change of
      control" provisions, provisions intended to preserve the Company's and
      TMM's proportionate ownership of the ventures, and super majority
      provisions with respect to voting on certain significant transactions. 
      Additionally, the agreements also provide a right of first refusal in
      the event that either party initiates a divestiture of its equity
      interest in Grupo TFM or Mexrail.

There can be no assurances that an attempt to gain control of the Company
without prior approval of the KCSI Board could be prevented nor that current
ownership interests in certain subsidiaries and affiliates could be maintained
upon a change of control. 

                                                                      

MISCELLANEOUS

In addition to the factors discussed above, there may be other factors that
could cause actual results to differ materially from those indicated in the
forward-looking comments.  Other factors include, but are not limited to,
changes in management strategies, objectives and business approaches; changes
in lines of business; material litigation involving the Company and/or its
subsidiaries; and changes in the political, regulatory or economic
environments in the United States, Mexico and other countries where the
Company or its unconsolidated affiliates currently operate or may operate in
the future.