On prewar equipment I am familiar with, the little sheet metal box along side the armature shaft was called the “grease box” and was filled with grease, not felt. I do not think Lionel made much use of oilite bearings prewar. I believe their bearings were high lead bronze like C972.
I have always wondered about the use of the felt wick with oilite bearings. In most oilite applications the bearing is supposed to provide the lubrication.
I regularly regrease the grease boxes. I think this is probably the first time this has been done since they are completely dry. Modern grease like red-n-tacky should last a long time in these application. I never use white lithium base grease as it turns to concrete in a year or two, providing no lasting lunrication.