If this is an original 165C controller, then there should be four buttons and a center dial. With the cable at the top, the two, red left side buttons control the rotation of the cab and should be labeled "left" (above upper button), "cab" (in between the buttons) and "right" (above the lower button). The right hand side of the controller will allow you to raise and lower the cable. From top down they should be labeled "up", "cable", and "down". The center dial controls the magnet and should be labeled above "off" and "on" while beneath the dial it should say "magnet". This allows you to turn and and off the magnet.
One very very important thing is to NEVER press buttons together. Press one at a time. Otherwise you will stall and harm the motor. Truth be told, you can hold down the "left-up" or the "right-down" buttons at the same time, but never press any other combination. But my advise is to simply never push more than one down at the same time.
dennyblock,
This might get you started:
Number 182 Triple-Action Magnet CraneProduced from 1946 to 1949, this accessory was essentially the same as the prewar Number 165, made from 1940 to 1942. [Emphasis mine.] Only the cab and crane were different. An electromagnet, hooked onto a block and tackle, could pick up or drop steel scraps anywhere along the cab's arc. The crane was a favorite for loading and unloading conventional gondola cars. The whole thing was motorized and controlled by four buttons - two raised or lowered the magnet, while the other two rotated the cab to the right or left. The magnet was activated by an on, off switch. Operation required both hands.
Quoted from useful CTT article about Lionel accessories online at
http://www.trains.com/ctt/default.aspx?c=a&id=964
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