Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
NADLMAN JAY M
  2. Issuer Name and Ticker or Trading Symbol
KANSAS CITY SOUTHERN [KSU]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Vice President & Secretary
(Last)
(First)
(Middle)
KANSAS CITY SOUTHERN, PO BOX 219335
3. Date of Earliest Transaction (Month/Day/Year)
01/19/2006
(Street)

KANSAS CITY, MO 64121-9335
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 01/19/2006   A   3,210 A $ 0 17,309 (3) D  
Common Stock               5,772.272 I Held by ESOP (1)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Option (Right to Buy) (2) $ 5.75             07/13/2003 07/12/2010 Common Stock 15,400   15,400 D  
LSAR (2) $ 5.75               (2)   (2) Common Stock 15,400   15,400 D  
Option (Right to Buy) (2) $ 5.75             07/13/2001 07/12/2010 Common Stock 27,000   27,000 D  
LSAR (2) $ 5.75               (2)   (2) Common Stock 27,000   27,000 D  
Option (Right to Buy) (2) $ 12.55             01/16/2008 01/15/2013 Common Stock 15,000   15,000 D  
LSAR (2) $ 12.55               (2)   (2) Common Stock 15,000   15,000 D  
Option (Right to Buy) (2) $ 14.6             01/02/2005 01/01/2014 Common Stock 8,000   8,000 D  
LSAR (2) $ 14.6               (2)   (2) Common Stock 8,000   8,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
NADLMAN JAY M
KANSAS CITY SOUTHERN
PO BOX 219335
KANSAS CITY, MO 64121-9335
      Vice President & Secretary  

Signatures

 Julie D. Powell, Attorney-in-fact   01/23/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) 5,772.272 shares have accrued to my account under the KCS employee stock ownership plan.
(2) Limited Stock Appreciation Rights ("LSARs") are granted in tandem with stock options. LSARs become exercisable only following a change-in-control of the Company in lieu of related options and are exercisable only for cash. LSARs terminate when the related options are exercised or terminated.
(3) Includes 544 shares acquired on December 31, 2005 through the KCS Employee Stock Purchase Plan.

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