Clearly, as this Watchtower shows, the Society is well aware of what facts it is hiding.
They're afraid their flock might find out - and undermine their enforced ( disfellowshippping) opinion about flag salutes.
Sorry, Metra, but the Society never said (I don't think) that the problem is putting up a flag. The problem is to give it devotion, to salute it.
So, if the these signs prove to be flags, a loyal JW could very well say "fine, no where in the Bible reads that they saluted it. So, the Society is right".
But I agree with you that the Society is not being honesty here. They could very well say that those "signs" were flags and still hold on to their current stance, as bogus as it is.
Observador.