That is a polarity reversing switch that is supposed to prevent, or at least diminish metal transfer from one contact of the points to to the other. Each time the starter is engaged, the switch reverses the current flow. Bypass the switch, but at the same time run a ground wire from the rigid point to the distributor housing. That particular distributor has the breaker plate insulated from the housing.
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
Cringe and wail in fear, Eloi- - - - -we Morlocks are on the hunt!
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. - Ernest Hemingway
Love your enemies and drive 'em nuts!