The red lantern was generally used to signal STOP. This could be at the tower, a flag station, etc.
Sometimes a red lantern was hung on the rear of the tender.
Sometimes a red lantern was hung on the end of a caboose as a rear marker.
A red lantern might also be hung outside the tower to indicate the train needs to stop for Form 31 orders. Orders are instructions from the dispatcher, delivered through the operator, to the engineer and conductor of a train which either gives them the authority to operate, as in the case of an extra train, or modifies the schedule which exists in the timetable. Unlike Form 19 orders, Form 31 orders require the train to stop and the engineer and conductor must each sign for the order.
To learn more about railroad signals, please visit http://www.jeffpolston.com/lantern.htm
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