Hi,
Can anyone identify the font (or recommend something similar if its hand drawn) in this logo for the San Francisco Municipal Railway?
Thanks.

It most certainly is hand drawn.
If an existing typeface was the model, someone could come up with a match.
In the meantime, looking for “railway” at MyFonts, brings some interesting results.
Perhaps unsurprisingly, Western Railway (http://www.myfonts.com/fonts/jnlevine/western-railway/) has a similar flavour to the words (it needs some condensing for “Municipal”), while something from Greater Albion Typefounders (http://www.myfonts.com/fonts/gatf/birmingham-new-street/ http://www.myfonts.com/fonts/gatf/great-bromwich/) could give you the |F|.
Typo corrected:
Post Old Style has some similarity -- note in particular the _R_ -- and there is a digital version by Jeff Levine as Lamp Post JNL

Some of the serifs, and especially the |A|s have a Latin shape (http://www.myfonts.com/search/latin/), which, I think, make them optically better suited to be placed on an arc.
Captured from web.archive.org on 16 Apr 2015. view this capture
Lettering circa 1900.
The winged _M_, heavy letters and big serifs have some similarity to Heirloom Artcraft Black
compare to a slick lighter version of Artcraft
Don