Rick, The results you are getting are normal. There is a winding from the GEN terminal to ground. When you hook the battery to the BATT side, and close the contacts, you are backfeeding the GEN side from the battery side, and with this current flow to the GEN side, and then through the windings to chassis ground, the electromagnet remains energized, and will not drop out the contacts. The secret to how this system works is as follows. When you start the tractor with a functioning generator, as the engine speed comes up, and the generator begins to charge, the voltage to the GEN side of the cutout causes the cutout to pull in, allowing the output of the generator to charge the battery. There is another, heavy, winding in the cutout that is placed in series between the generator and the battery when the points are closed. When the engine speed drops below the speed needed for the gnerator to produce a voltage greater than the battery voltage, there is a reversal of current flow through the heavy windings in the cutout. This causes the magnetic field produced by the electromagnet to drop to zero for in instant before reversing. It is in this instant that the cutout points must open, or they will remain held closed by the magnetic field produced by the now-reversed current flow FROM the battery TO the generator. A CUTOUT WILL NOT DROP OUT UNLESS THERE IS THIS REVERSAL OF CURRENT FLOW AS THE GENERATOR CEASES CHARGING, AND ACTUALLY BEGINS TO DISCHARGE. When you are "testing" the cutout as you describe, this phenomenon is missing, and the points will remain closed untill the battery is dead enough there is no longer enough magnetism to overcome spring tension, and the points open. There is more to a cutout than a simple relay, as most people seem to think of them. You may just have a bad cutout, as many of the curent crop of cheap imports seem to be. The setting of spring tension and air gap work together to determine at what generator voltage the cutout will pull in. A properly functioning generator also helps everything to behave as it should!
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