Is this PS-3? Regardless, the 2R-3R switch on the tender only connects the tender wheels together and properly routes engine wiring. The engine wheels remain separate. Right side as a source of AC power only in 2R. If you are a 3R only you can go in and move the right side wires and ground them to the chassis so both side provide ground.
PS-3 does not care about polarity. PS-2 does which is why they also have a polarity switch to ensure the rail with Red DC signal get to the red wire of the PS-2 board. G