Before you disassemble the E-unit (relay with the red drum), you might want to try cleaning the drum carefully with a QTip wet with pure mineral spirits. You must be careful not to disturb those little metal contact fingers, which are fragile.
let the drum stay wet and rotate it. This will help clean the fingers themselves.
The use a dry QTip to absorb the excess.
Sometimes this process will resolve the issue, other times not.
Once clean, an e-unit should not be lubricated.
I looked up your set, 1465. The engine should be a 2034.
Here is a link to the Lionel factory service manual pages for your engine:
2034 Service
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