Regardless of the lubricant used, oiling pickup rollers is a bad idea. The friction, arcing and heat will rapidly cause a hard gum to accumulate, jam the rollers, cause loss of conductivity, and premature roller wear. Then you are stuck in a perpetual routine of cleaning and oiling every few weeks to stop the rollers from seizing up.
The service documentation in both Lionel and MTH user manuals has little credibility in my opinion. For example, take note of the fact that the oiling instructions contained in the above post say nothing of lubricating the load-bearing pinion gear bearings, or maintaining grease on the worm wheel and gear (which you cannot trust the factory to handle). MTH is not alone. Some of Lionel's lubrication instructions are mind-boggling. I have seen instructions to oil armature bearings that don't exist (such as on the brush plate of the 726 CC remake), and arrows directing users to apply oil to wheel surfaces, or other odd places, etc.
Sometimes a little common sense goes much further than a drop of oil.
