Abstract: A simulated rail car identification system including a plurality of coded labels mounted at spaced apart locations on an endless conveyor. The conveyor produces horizontal movement of the labels sequentially through a zone viewed by an optical scanner. A control system monitors and controls operation of the endless conveyor and generates block signals responsive to the relative position thereof and wheel signals responsive to the entry of individual labels into the viewing zone. Processing and decoding of the information retained by the moving labels is accomplished by a data processor that receives the output of the scanner and the block and wheel signals from the control system. The effectiveness of the scanner and processor are determined by comparing their output to the data programmed into the control system and encoded on the moving labels.