Hole depth is a minimum of 4 inches.
Iron (stainless steel is too smooth for handholds, although it has been tried for some pinning of rock wall). Cold-rolled steel is the choice.
Holes cannot be reused so if you look you'll see some multiple holes where railings have been replaced.
Quoting from "Acadia Trails Treatment Plan" page 214:
"Crimping: A pin is bent or crimped slightly, at approximately one-half the distance it will be inserted in the hole base. When inserted, this crimp causes enough pressure on the sides of the drilled hole to keep a pin in place. Crimping alone is unreliable for rungs and rails but may be used for pins. Rungs and rails should be installed with the traditional wedge method plus a slight crimp.
Wedging: Using a hacksaw, a slit is cut 1 1/2 inches up from the base of the rung along its axis. A small metal handle wedge is placed in this slit and inserted in the drilled hole. The rung is forcefully hammered into place. As the rung is hammered, the wedge is driven against the bottom of the hole. This forces the wedge to spread the base of the pin against the sides of the hole, causing friction to hold in the rung or pin. "
Lead wool, similar in appearance to steel wool is tightly packed aorund the pin to prevent water intrusion.
page 215 has diagrams of both procedures
This book (386 pages)is fascinating and there is a companion volume, more historical in nature of the creation of the trails entitled "Pathmakers". They are National Park Service publications and I can't recommend them enough for anyone who makes return visits to Acadia.