The Cumbres Pass semaphore is a train order signal. One side of each blade is red and the other is white. The position of the red blade indicates whether a train needs to stop to pick up orders or can proceed without stopping. The white side is ignored. If a red blade is at 90 degrees, the train facing it must stop. If it is inclined at a 45 degree angle the train may proceed without stopping. On a train order semaphore, both directions are controlled from one mast, unlike a block signal or interlocking semaphore which only controls in one direction.
There is some debate as to whether the semaphore on the section house was ever actually used. Photos from the 60's show it with no blades. It was common to remove blades from out of service train order semaphores.
Michael Allen