proper term: bond wire
for carrying signal current across joints. The "nut" you see is most likely a smal thermite weld connection to the ball of the rail. Still used on occasion is a drilled post into the rail in the ball or the web with a wire connection to make a jumper connection.
There is a low voltage electrical current running through the rail for block signals and road crossings, so this wire was probably for one of those purposes.
Sounds like the lead connecting the rail to the signal system.
Nick
Take a Ride on the Reading with the: Reading Company Technical & Historical Society http://www.readingrailroad.org/
One time I was looking a mainline track and noticed something on the side of the rail. It had like a Bolt with a wire attached to it and the wire went underground. The bolt was attached to the outside of the rail. In that section where the wire is attached it is painted silver. The silver paint is about half a foot wide and is a tall as the rail. The only thing I could think of what the wire could be used for is for a grade crossing. If, anybody actually knows what that wire is used for then go right ahead and put it down.
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