From what I can find in the 2016 Greenberg's price guide the engine is from 1973, a Milwaukee Road 4-4-2. Current value is between $95 and $ 120.00, the $95 figuire being in excellent shape and $120 figure for in mint(like brand new). If it don't run or looks bad then you may only get about $25.00 for it.
The wire going between the engine and tender is for a sound system (one of Lionel's first systems, called the Mighty Sound of Steam). The circuit board for the system was held in place by double sided foam tape. Notice I said was. Most (all?) of these have the foam disintegrated, which means that the circuit board can short out on the metal frame of the car and self destruct. Before you plug the two wires together, open the tender up and replace the foam with electrical tape, cardboard, or new double sided foam tape.
The engine does smoke, or at least it is supposed to. It uses smoke fluid (any brand will do I believe). If it is allowed to run dry, it can burn the heater out, so don't run it much until you get some fluid to put in the stack.
Hope this is a good start; enjoy your new engine!
J White
here is a diagram of your engine if you go here then to page 124 and page 125 gives a list of all the parts https://www.lionelsupport.com/media/supplements/Supplement1to9/1Complete.pdf
Life's hard, even harder if your stupid John Wayne
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