Joe,
This terminal is only used if the rig has been converted to 12 volts and is running a externally resisted coil. If you are still six volts or have a 12 volt rig with internally resisted coil the little terminal isn't used.
All this terminal does is act as a switch. It supplies full battery voltage that detours around any ballast resistor and goes to the + side of the coil when you start the rig...it 'bypasses' the ballast resistor during START.
As Denny notes, this was a feature used on 12 volt systems OR old rigs that have been upgraded to 12 volts and use the ballast resistor...clear as mud!
Stuart