[HO455]

Thank you old Blue!
I cleaned up the dog engagement/brake lever assembly. (Photo 1)The hand lever moves the dogs in and out allowing the drum to freewheel or be driven. The same lever also applies the brake.
The lock out pin was in poor shape, the roll pin that spring loads the pin was rusted and the ends were missing. In addition the end of the pin had been cut or broken off. (Photo 2)
Fortunately there was just enough length so I could drill a new hole in the pin for a new roll pin (Photo 3) and then bevel the end of the lock pin.
The lock out pin assembly consists of the pin, a bushing that holds the assembly in place, a spring, a washer, and the roll pin. (Photo 4)
The last photo shows the assembled pin.