A train friend (and retired career trainman) had a box full of these things and gave me one. He described it as "emergency lighting". He has Alzheimer's and couldn't explain it to me any further than that. This guy has loads of railroad and model railroad artifacts.
It has a fitting on the "handle" that appears intended to fit onto a mounting bracket. The cylinder contains candle wax, with a spring underneath it. There is a slot for a wick out the top but the wick was probably eaten off by mice. I presume a lantern glass is intended to fit on the top, around the wick.
So the question is, was this item used for a railroad application, and how long ago?