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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE NO. 14775 / January 4, 1996

SECURITIES AND EXCHANGE COMMISSION V. LINDA LOU TAYLOR, NEWTON
KAVANAUGH, AND JOHN KAVANAUGH, Civil Action No. 96-17 (NHJ)
(D.D.C. January 4, 1996)

     The Securities and Exchange Commission today announced the
filing of a Complaint in the United States District Court for the
District of Columbia alleging that Linda Lou Taylor, Newton
Kavanaugh, and John Kavanaugh violated Section 10(b) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
thereunder by engaging in insider trading in the common stock of
MidSouth Corp. ("MidSouth") prior to a public announcement on
Monday, September 21, 1992, of a merger agreement between
MidSouth and Kansas City Southern Industries, Inc.  In its
Complaint, the Commission seeks permanent injunctions against
Linda Lou Taylor, Newton Kavanaugh, and John Kavanaugh,
disgorgement of trading profits plus prejudgment interest
thereon, and civil penalties.

     Simultaneously with the filing of the Complaint, and without
admitting or denying the allegations therein, Linda Lou Taylor,
Newton Kavanaugh, and John Kavanaugh each consented to the
entries of Final Judgments of Permanent Injunction, permanently
enjoining each of them from future violations of Section 10(b) of
the Exchange Act and Rule 10b-5 thereunder.  In addition, the
Final Judgments order Linda Lou Taylor, Newton Kavanaugh, and
John Kavanaugh to disgorge their illegal profits of $20,475,
$9,750, and $9,750 respectively, plus prejudgment interest
thereon and to pay a one-time civil penalty.

     Specifically, the Complaint alleges that Linda Lou Taylor,
the wife of Foster Taylor, a director of Midsouth,
misappropriated material, nonpublic information concerning the
forthcoming merger from her husband and purchased MidSouth stock
while in possession of the information.  The Complaint alleges
that Linda Lou Taylor had the opportunity to misappropriate the
information because she had access to her husband's office which
is located their home, and she attended social functions
associated with a MidSouth board meeting at which the merger
negotiations were discussed.  According to the Complaint, Linda
Lou Taylor purchased 1,100 shares of MidSouth securities at
$10.75 per share on August 20, 1992, and 1,000 shares of MidSouth
securities at $10.75 per share on August 31, 1992.  The Complaint
further alleges that Taylor, while in possession of material,
nonpublic information, tipped and financed purchases by her two
brothers Newton Kavanaugh and John Kavanaugh who both
subsequently purchased MidSouth common stock.  Newton Kavanaugh
and John Kavanaugh each purchased 1,000 share blocks of MidSouth
securities at $10.75 per share on September 16, 1992. 

     On the date of the announcement, the price of MidSouth
shares rose $8.25 to close at $19.25 per share.

     The Commission acknowledges the assistance of the National
Association of Securities Dealers, Inc. in investigating this
matter.