It might be a variac that can adjust an undervoltage or overvoltage input to a more standard 120V or 240V output. Many years ago I made something like that for myself because the AC line regulation to our home was so poor. It would drop down near 90V in the summer.
If the knob has a smooth rotation, it is probably a variac. If it goes in steps to each lettered position, it is more likely a transformer with multiple primary taps controlled by a switch.
If it is a variac, it could be used to adjust a 120V input down to the lower value needed for model trains. The 500W rating may apply to 120V or 240V. Reducing the voltage would not increase the amount of current it could supply.
The connections look scary. Who would design a device that would accept a 120V or 240V input plug with two male prongs? And since just turning the knob could increase the voltage way above that needed for a model train layout, it would make it dangerous to use for that application.
Jeff