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It was possibly the brushes then. When I used to run slot cars, the little Wasp motors used to hang up and drive kinda notchy if it was a motor that had sat for awhile. After a few laps they would function normal again.

Pull the brushes and give them a good cleaning with alcohol, along with the commutator (wow, I can't believe I remember what that is called). There may be some corrosion on the commutator from all those years sitting with parts of the commutator exposed, and parts of it in contact with the brushes.

Did you get a wing with it?

Wow. What a find! You don't find em that old in that kinda shape! I haven't seen a car with a mechanical speed control in a long time.