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Sorry for the long delay with an answer. This machine doesn't payout. The dial is used to display won credits.

There is some contemporary material that is reprinted in Mills of the Thirties, pages 92-94.
The 2nd half of the article has a good detailed description of how the Dial operates.
I tried to post copies here, but the file is too large.
If you want me to email it, send me an address.

Thanks nvmos2 for the information. I have that book and never thought to look in it. . . duh!
What's in "Slot Machines of Yesteryear - Mills of the Thirties" is a reprint of an ad that appeared in Automatic Age magazine, Feb 1935.
Here is the ad compliments of International Arcade Museum.





And you're right. This ad is the only place, that I know of, that tells you how the DIAL is supposed to work.
I just finished restoring my DIAL and had everything working correctly, but I didn't know why things were doing what they were doing.
That's where the ad explained everything.

Thanks for pointing this out.

Rick