Hi Randy, and welcome. You have a very nice pre-war set, which appears to be of 1930's vintage. First of all, I would not run the set until I had that transformer checked out by a qualified repair person at a local train store or hobby shop. Even if it checks out OK, I would still suggest investing in a more modern O Gauge transformer, just because it will probably have a quick-reaction circuit breaker, which would prevent short circuit and the resultant damage to the set, the rails or worse which can be caused by a derailment. Secondly, I would lubricate the locomotive before I ran it.
There are a number of websites that deal with the running and maintenance of O Gauge trains. You can use the search function on this forum to find threads that cover those topics. Another good resource is Thor Sheil's website, http://thortrains.net/, which has a lot of good information. Finally, any search engine will allow you to find information on running and maintenance of O Gauge trains.
In any event, I hope you enjoy that set and the hobby generally.
