The rear wheels will always be locked as this is a worm drive motor. The rectifier has most certainly overheated & bit the dust - this is an unusual Lionel unit(for pre-1973) as it is a DC motor, but with on-board rectification. I doubt the 65-30 rectifier is available anymore, but if the motor is still OK a small silicon diode can be secreted in the chassis bypassing the original rectifier. The 65 is rather small, so an experienced shop may be needed to effect a repair.
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