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Reply to "What 'zit?"

Yep!  Essentially, you'd get the power from the transformer (which connected to the main power supply), then that would run to this in order to control the train's speed.  Some makers (including some in the UK) would adapt this method even into the 1950's and 1960's, maybe a bit later but using large batteries and a small controller like this to control the speed.

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