38 Generator

I have a question about the generator on my 38 85 hp engine. The one on there, see picture seems to have a wire coming out of a hole in the side and connecting where the cutout is attached. The cutout doesn't seem right. I'd like to have the correct set up with either the original cutout or a voltage regulator if that is correct. Any help appreciated.

Thanks
Terry
 

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Cutouts were used on ‘38-‘39 Standards, unless a radio was installed. DeLuxe of both years had regulators and two brush generators. 3 brush generators were used with cutouts, as is yours.
 
Should have two wires, black to the mounting screw of the cutout and red to the cutout. The cutout has a hex head screw for the red wire. Cutout is marked Ford in script also letter "B". The metal band that covers the rear of the generator body does not have a cut out. The metal band with the cut out is for the starter motor, the cut out clears the starter motor electrical terminal.
 
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