This is an inexpensive way to convert 3-rail wheel sets of freight & passenger cars to 2-rail wheel sets. It is a clever technique I learned from my OO-Gauge Scalecraft trains. Lionel also may have done this to make 2-rail OO-Gauge trains.
Scalecraft cut a short segment out each axle (1/16" to 1/8") and reassembled the axles with a rigid plastic sleeve extending from wheel to wheel. Lionel also may have done this to make 2-rail OO-Gauge trains.
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Have you actually tried this? If the trucks are metal they are still going to electrically connect the two sides of the axle so this would not be sufficient. Also, not being familiar at all with 2-Rail, I don't know if high-rail flanges would fit on scale 2-rail track.
Lee,
You made me think more about this idea, and I see your point. The wheels still have an electrical connection through metal truck frames, so I revised the sketch to limit this idea to wheels sets in plastic trucks.
This is exactly how Lionel makes many American Flyer 2 rail wheel sets. You just have to insulate at the axle point or the side frames as Lee pointed out. This will work fine on 2 rail Gargraves or Ross Custom track and turnouts. Big flanges will not go through 2 rail scale turnouts like Atlas code 148. So you'd be better off replacing them with 2 rail wheel sets anyways.
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