"Railroad grade" is a term that you often see applied to pocket watches - sometimes just "railroad" or "railways" is used - with the implication that these watches were suitable for use by guards, stationmasters, drivers, etc., on (mainly) American railways. It's used a lot on eBay as an extra attraction in the sale of a pocket watch - and quite often wrongly, whether by accident or design is often impossible to tell. So, here's some very basic info on "RR" grade watches and what to look out for.
There's a bit of a myth about a late 19th century train crash in America which led directly to the setting up of a national standard for railroad timepieces - but this is part of the story. Without going into details, Webb C. Ball, an engineer and watchmaker, was appointed to set up a commission on watch standards. His company didn't actually make watches, but it certified the movements of other companies as being fir for railroad purpose - hence watches called "Ball-Waltham", "Ball-Hamilton", etc. (The modern Ball company bears no relation to the original Ball other than the name).
The commission agreed that railroad grade watches should have the following characteristics:
1. The dial should be open-face - no hunters or half-hunters.
2. The hands should be set by a lever under the bezel - no accidental changing of time when winding.
3. There should be at least 17 jewels to the movement - 19 and above were more commonly used.
4. The dial should be white with black, clear Arabic numerals - no Roman numerals.
5. The movement should be fitted with a double roller.
6. The movement should be adjusted for isochronism and at least 5 positions.
One later form of dial was the "Montgomery" - which had the minutes in numerals and a 24-hour chapter ring as well. Not all RR watches had Montgomery dials and not all watches with Montgomery dials are RR grade! So - the next time you see a watch advertised on eBay as a railway watch, be extra vigilant. Ask for the serial number on the movement and then go to this database:
http://pocketwatchdatabase.com/
I have my Hamilton 992 on today - pics in another thread - and the serial number of that watch is: 2320829. If you check that number in the database, you'll see all it's basic technical spec - and whether it's RR grade or not!