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During all the uproar. President Deramus kept silent for days, finally released a chilly statement that "emergency measures were necessary to avoid financial embarrassment." Why did the Katy slip out of St. Louis with no warning? Answered Deramus: any advance notice might have caused the state of Missouri to step in and tie up the Katy's records, as happened in Kansas. The road had no other choice but to move. Its maintenance is in bad shape; about 1,000,000 rail ties sorely need replacement, 30 to 40 diesel engines require major overhaul, almost all the Katy's yards must be modernized, and the line is short 250 miles of replacement rail. In sum, it will take a small wonder to salvage the Katy's solvency, let alone its reputation. The railroad turned in a January-February deficit of $519,608. If losses continue at the same rate, railroad men said last week, the railroad will be insolvent within two months.