Remember that in the 20's there were still parts of New York and Canada that were powered by DC from the Edison plant. Plugging a transformer into a DC outlet would cause the transformer to overheat and burn up. I do not know when the last DC power supplied to consumers was switched over to AC, but DC was still in use when these transformers were made.
DC power lasted through the 1950's.
The 1951 Lionel Instruction booklet, in the section ABOUT YOUR POWER SUPPLY, states, "While the house power supply used in this country is usually 110 to 125 volts, 60-cycle alternating current (AC), there are a number of exceptions. Some parts of California use 50-cycle current; some areas in Canada employ 25-cycle current, while some downtown areas in New York City still use 110-volt direct current (DC) with which a transformer cannot be used without a special DC-to-AC inverter. [next paragraph]: "In case of doubt always ask your electric company about the type of power you have before buying or installing any equipment which is to be plugged into your wall outlets. If you have a special problem consult your Lionel Dealer or write to The Lionel Corporation" (p. 36).
In 1953 this warning was published inside the front cover of the booklet as well. It was published there and in the text through the 1960 booklet - the one with N&W 2143 on the cover and an ad for the FIFTH BIG NEW EDITION of the Bantam paperback MODEL RAILROADING on the back cover.
Thomas Edison harnessed DC. It was generated at the same current used by customers in NYC and other cities and used near the power plant. But carrying DC over long distances required substations about every 5 miles. A brilliant immigrant named Nikola Tesla achieved AC current. Transformers sent it over wires at high voltage. Other transformers stepped down the voltage for customers. Power plants could be larger and wires smaller, making AC more economical. But AC was not readily accepted.
When Westinghouse became Tesla's partner in promoting AC, Thomas Edison fought them fiercely in "The Battle of the Currents." Edison electrocuted an elephant with AC and urged that AC be used in electric chairs to execute convicts. Edison called those executions "Westinghousings." AC was used in Colorado mines served by fabled narrow gauge railroads. Westinghouse and Tesla won a contract to light the World's Columbian Exposition in 1893 and build a hydroelectric plant at Niagara Falls that year. Lower costs of generating, transmitting and using AC eventually prevailed. But DC remained where it could be used close to a power plant.
Lionel instructions warned that DC power would cause whistles and horns to sound continuously. DC, of course, is used in modern electronics.