The correct way to adjust a cutout is using an analog volt meter. You hook it to the armature terminal of generator or cutout and while very gradually increasing the speed of the generator watch the voltage build. It should build to .2 to.5 volts ABOVE battery voltage and at that point the points will close. There will then be a drop in voltage so you have to have a keen eye on the needle of gauge to know what it was. You increase or decrease spring tension to obtain this. Then you slow generator down again to see if points open. You can insert an ammeter in the battery side of cutout and observe the reverse current flowing at the time points open. If too many amp, open gap, too touchy, close gap. Don't file or clean points with battery wire connected. Do not close points manually, causes arcing. If it does not operate like intended, you have open windings or poorly grounded unit.
On a side note, I once upon a time ran into a new cutout that was wired wrong internally. Customer brought it in after another shop could not get it to work. When the contacts closed it literally arc welded. The windings were bucking it in the hold down position instead of when voltage of generator decreased.
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