Its amazing how complicated these systems are - engineering them in the days before CAD must have been.... interesting.
Buildings full of relays.... (did they use telephone exchange style reed relays or other types in these systems?)
Not for railways, but when I first started designing electronics for a living in 1980 it was done with pencils, rulers and stencils (for digital logic gate symbols etc.) on A1 size engineering drawing boards. All accompanied by the smell of ammonia when you had to copy the drawings using a dyeline copier....(the copies were literal 'blueprints').
Computing ran to HP programmable calculators (Reverse Polish Notation, anyone ?) and a couple of BBC Micros, plus an original IBM PC. Oh, and 'Google' was a bookshelf full of component databooks and circuit design handbooks.
Aren't you glad you missed it (or enjoyed it, depending on age)
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Getting back to the railway stuff, yes in the 1920s and 30s in particular the more far-sighted railway signal engineers were probably at the forefront of developing techniques to design and safety 'prove' large relay logic systems. The first large relay interlockings were installed in the 1930s by the LNER. Before then power signalbox interlocking was largely performed by miniature lever or slide frames, so it was essentially using same design techniques that had long been used for full size lever frames, with the addition of more electric detectors/locks for facing points etc. in place of mechanical 'slotting' on the ground.
The actual signal relays I've seen are physically quite large (and no, they are not reed relays), hence the size of the relay rooms....there are a few pictures of BR standard ones here -
http://en.wikipedia.org/wiki/Relay#Railway_signalling - but I'm sure an expert will come by soon and provide more up-to-date info.
BTW - it's not just 'did' use relays, there are a lot of relay interlockings still in daily use - if you want a simple piece of digital logic which can handle 'real world' currents and voltages and is intrinsically fail-safe, relays still have a lot going for them
