Unles someone has made some change in the circuit, the print shows a 3 position switch as tone control, not a pot at all. Even says so at the top of the print. One position is off, then two tone selections in the AC on mode.
I looked again at the print. Seems when the set is turned off, that switch cuts the audio, so there is no noise. The volume control is left in a preset mode, and not turned down as the radio goes off. If you have ever just pulled the plug on some radios, the volume goes up with a blast, or it makes some kind of noise due to the volume being left up.
The 3rd terminal connects to nothing, and so this will be your 'full tone' position. The only tone correction that takes place in this position is that permanently built into the set, such as the resistor and condenser that go to the tap on the volume control (above), or the two condensers that are in series shunting the output plate circuit (as described below).
The 4th terminal connects to the junction of the two output plate tone condensers. They are wired in series, and with the lower one being of very small capacitance, they both equal an even smaller capacitance. I believe, if I remember correctly, that the upper condenser is labeled as .03 MFD (significantly sized as far as audio frequencies are concerned at the impedances found in your amplifier). The two in series are mathematically the same as two resistors in parallel: 1/(1/C1 + 1/C2)=CT. Shunting across the lower condenser will put the upper condenser into full action, buffering out much of the high frequency tones. You can think of this as your 'low noise' or 'bass' position. The condenser(s) doesn't actually short out the higher frequencies, since condensers don't actually pass anything, but rather it neutralizes the upper frequencies much like the filter condensers in the power supply neutralize hum. When there is a high (crest), the condenser charges that way, and when there is a low (trough), the condenser charges the other way. During the transition from high to low and low to high, the new polarity meeting the condenser is met with the opposite polarity already charged in the condenser. The two neutralized and the net result is 0. A smaller condenser holds less of a charge, and so it is going to be charged and discharged more effectively with high frequencies than low ones, which is why small value condensers don't cut out all of the audio, but rather just the high frequencies.
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:You're welcome. For a second I thought that I had gone overboard.
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:T.