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Just guessing,. but first read sounds like a switch was set the wrong way .. and train entered siding it wasn't supposed to, at speed?

Nope.

According to an excellent explanation posted on Trainorders.com, the train was an extra long one, with a manned helper (multiple units) on the rear. The Dispatcher informed the crew that the destination yard would be unable to accept the whole train. Thus, they were told to cut the train in half, with the rear helper set to proceed back eastward and put the train in the controlled siding. The Dispatcher was informed by the crew that when they passed that controlled siding there were freight cars stored in it. The Dispatcher stated that his board did NOT indicate any cars in that controlled siding. Thus, the rear portion of the train proceeded back eastward to the controlled siding (about 35 miles), and entered the siding on a red over yellow signal, i.e. NOT a red of luner, which would indicate that the siding was occupied and to operate at restricted speed, prepared to stop short of any obstruction.

Reportedly, the last words from the crew were, "There are cars in the siding!". Both the Engineer (27 years service with UP) and the Conductor (about a year with UP) were subsequently killed.

So much for PSC an the ridiculously long trains, and PTC.  

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