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The white/clear lantern was used by the brakeman to give the general, more common signals around the rail yard. They were swung by hand.
A white lantern (or a green lantern) could be used to stop a train at a flag station. A flag station is a location where one would want to ride one or two days a week, but would otherwise be too costly for a train to stop everyday if there weren't any passengers. It could be hung from the building or swung by hand.
To learn more about railroad signals, please visit http://www.jeffpolston.com/lantern.htm
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