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I belive these signs are to warn of a device that will derail any cars (or locomotives) that may get loose, to prevent them from hitting a closed switch thus derailing and blocking the main line. It would also prevent the cars from continuing out onto the main line and possibly being hit by other trains.
EDIT: there's a link on the page to this device - could it be the answer? it looks a bit temporary.
http://en.wikipedia.org/wiki/Derail_(railroad)
While out taking pictures of old railroad spurs in northern Colorado, fairly close to the switches, I am seeing signs that say " Derail" next to the tracks that are switched off of the main.
Can someone clarify these signs for me?
Thanks