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That is a power lockon for a Marx Highway flasher.  It was designed to slide up into the center rail of the track.  The wire would then attach to the center post of the highway flasher.  The flasher also came with two insulated clips which attached to the outside rails.  wires from those clips attached to the outside connections on the flasher.  When the train ran over the clips it completed the circuit to turn each bulb on.

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