Sounds to me like you already have it figured out. Yes the cut out is just an on/off switch. No it doesn't monitor the battery. Charge rate varies by rpm's & nothing else. If my memory is correct(CRS) the engine ignition system is using about 5 & 1/2 amps while running. That leaves you with 4 & 1/2 amps charging the battery when the genny is maxed out. Pull the lights on and you're using all 10 amps at least. Don't have a clue how you gauge is hooked up but it isn't giving you an accurate reading on what's going back to the battery. It's just telling you how much the genny is putting out. That may be the way all cars were wired in the thirties. If it were wired like a tractor you would be showing a slight discharge any time you weren't at full throttle with the lights on. Yes I would keep a close watch on the water level and I woulden't consider an Optima. It might work but I woulden't trust it to not go BOOM.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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