No solenoid, no stop limits, no feedback to the selector.
The dash switch is the only control component. It is a simple DPDT type and will remain in the position it was last moved to. There is no center "off" position as in a DPCO (double pole center off) switch.
Wiring diagram for dual tank set-up.
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As far as the "losing prime" theory - under normal circumstances, that should not happen. The inlet to the valve should remain flooded and under a slight static head pressure no matter what position the valve is in. This is provided that the tanks are never allowed to be run down to the point that air is introduced to the pump suction lines and the suction side piping is tight.
Simply because there has been no flow through a tank suction line (even for an extended period) is no reason for any air to enter the piping. Condsider a single tank setup - the fuel pump will immediately start delivering fuel even after months of inactivity. No priming period is neccesary. There may be some loss of fuel and subsequent introduction of air on the discharge side (in the carb for example), but this happens only after an extended period. Not while filling up at the gas station.
Also I was wondering about this:
The spliter valve may not made good contact on switching for the electric fuel pump. Mine done that once in awhile when switching tanks. May make sure you switched the switch fully. My 89 I have to switch to fast or it dies.
Why is the power supply to the fuel pump routed/switched through the tank select/gauge indicator valve? Wouldn't the fuel pump be hot any time the key was in the RUN position regardless of which tank was on-line? Why would it be designed so that it would be shut off during a tank switch over? There is no "center off" position and the switching valve will always be lined up to either the LH or RH tank - or if the switch is not depressed long enough while changing over, somewhere in the middle.
If the switching valve plug is, for whatever reason, left in the middle position it will draw equally and allow returns from/to both tanks. Also, in this case, because the contacts for the gas gauge are at the extreme limits of travel, the dash fuel tank level indication will drop to zero.