in this case blue and red come from the DC transformer(s) to the rails.
white goes from AC transformer (accesory outlet) to switchmotors, etc.
black goes from AC transformer (accesory outlet) to reed.
orange goes from (one of the) reed outlets to switchmotor.
i would not try to make blue and white together as common, if they come out of the same transformer/controllier.
(i prefer to fry meat or chips, not electronics...)
edit:
the orange wires from one "left" connected and one "right" connected reed can/should/must be joined before they go into the switchmotor.
all whites can be common together.
all blacks can be common together.
2nd edit:
one set of reeds ("left" and "right") can be connected to one or two switchmotors.
switchmotors with the additional switch are used for powering/unpowering blocks.
3rd edit:
http://kormsen.info/lgb-manual.pdf