Good news- there are still Katy locomotives in the green & yellow. Bad news- they're in a parts yard at NRE in Dixmoor, IL http://www.railpictures.net/viewphoto.php?id=174035 How many Katy engines can YOU find in this picture?
They're not technically scrapped, they're more or less parts sources. Kinda like going to the wrecking yard to find a rare or obscure part for your family jalopy. In truth, I doubt more than a rare few will ever see service again.
Good news. There are still some Katy ballast cars around. They're on my layout ! Recently released from Atlas. http://www.trainboard.com/railimages/data/526/BallastCars_1.jpg