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From the early railroad era. When the train came into a town/station, the engineer would have several things to do before the engin was ready to continue. While he accomplished these tasks, his fireman would often go into town to visit the ladies or whatever....The fireman always took a lantern from the train (red) and placed it outside the establishment...When the engin/engineer was ready to pull out, and his fireman was not back, he always knew where he could be found...Just look for the red lantern....often these areas where the railroad fireman frequented were refered to as "the red light district"...from the lantern

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