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Blue flags (Blue Light by Night) are used to protect Carmen who are working on equpiment. If a running trades employee comes across a blue flag, then they are not allowed to move any equipment past that blue flag unless a worker of the same authority who placed the blue flag comes and takes it down. I don't know why they used white flags for extras, but that's what they meant. The practice was used in Canada longer than in the states, generally now 100% of trains run as extra's, so it is no longer practicle to have every train running with a white flag, so they all run without them now. An extra was a train that was not listed in the timetable as a regularly scheduled train, and would generally have to yield to all other traffic. ....as far as I know flags weren't used to denote class or express (I may be wrong) because the train would be listed in the timetable as being one or another, only extras needed the flags because they weren't listed in the timetable.
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