The way this works is that the track section sits in the neutral (stop) position, waiting for the train. The locomotive comes from the right and strikes the lever that hangs out over the track. The underside of the lever pushes down against the switch on the top of the battery box. That starts the motor, which is geared to turn the track control. After 2-3 seconds, the track has rotated far enough to release one of the locomotive control buttons, so the train takes off to the left. The track control gear also has a Znap flex-shaft sticking out the top, which arches over to the control lever and makes sure that the lever rotates along with the track control. On the underside of the lever, there is a gap in the contact area that touches the switch. As it rotates around to the reset position, this gap lines up and releases the switch. The flex shaft is actually a critical component, as the locomotive would jam on the slowly-rotating lever if it used fixed gearing. A clutch gear isn't an option either, as the lever and track control have to stay syncronized.
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