Lar1844: I would look at the brushes and the brush springs and make sure that they are not too short (brushes) or weak (springs). Clean the commutator on the armature and check the thrust of the armature in the motor housing - no more than .010ths play forward or back. Use the 671 metal thrust washers to adjust any excessive play. I usually try to align the armature pole laminations with the field laminations and place washers either at the top side of the casting or at the bottom of the casting as needed.
Also check the angle of the motor in regards to the mesh of the sprial armature shaft to the axle gear. In days of old LIONEL, thin washers were used under the casting around the aligning pins to adjust the pitch/angle of the motor to the gear. Now a days, they have a small set screw in the bottom of the frame to assist in adjusting the motors pitch and gear mesh.
As regards the wheel spin, as was noted, this loco should have magne-traction. An easy way to tell is to look for a silver cylinder under the loco frame between the rear drivers. If it is there, then perhaps as was mentioned, the magnet may be weak or lost it's charge. It can be re-charged if it is either.
If the silver magnet is not there, then you may have one that was a 726RR that was made without the magnet during the Korean War and is more prone to slip the drivers under load, but then that is what the real ones did!
I would also check the side drive rods for excessive wear in the holes were they are bolted to the wheels, ovaled holes can cause drive problems in one or both directions.
Last but not least. lubrication at the proper points always will help a locomotive run smoother.
Hope this helps, Dennsi M.