I believe the Trains article you mentioned concerned Deramus moved his railroad's(MKT) headquarters from St.Louis to Denison Tx.
Which leads me to expand on the original question with why didn't the CGW merge with Katy? I'm not sure of the chronology of the reigns of the various Deramus administrations on the three roads, but the obstacles to mergers back then were pretty profound, not in any order- 1) Regulatory- getting through the byzantine process with the ICC 2) Legal Challenge to ICC by competitors, dependent interline connections, creditors, shippers, towns etc. remember the UP/Rock or later day trevails with SF/SP proposal (ouch) 3) Traffic- while it makes sense on the map, any of the three would have lost traffic by turning into competitors against some of their major interline connections. KCS losing portions of Milw, CB&Q, Rock traffic etc. to MP, SLSF and IC. MKT much of the same. Also could Chicago access and longer haul offset that traffic loss, could the CGW lines even support the needed additional volume? 4) Cost- Stockholder's, liquidity, and route/trackage rights concessions to competing roads, etc. One thing for sure though, they'd at least of had similiar operating schemes (the daily big freight) and paint schemes (Deramus Red) and power (predominately F's,GP's and SD's)
