Here's One Good Solution
Picture 1. New terminal strip for AC line cord
Picture 2. Location of tie point strip
Step 1. Referring to picture 2 above. Under chassis view, rear of chassis to the bottom, antenna strip at the middle. Install a one lug terminal strip on chassis near antenna coil. Barely seen between the yellow wire and the antenna coil. Remove the three wires on the switch where the 270 ohm resistor attaches. This includes the 270 ohm resistor, a 470K ohm resistor and a black wire. Relocate these three from the switch to the new terminal strip and solder. The 470K ohm resistor should be routed under the antenna coil and use care when working around this coil so you don't cause damage to it. The schematic has not changed, only the connection has changed location. Remove the black wire attached to the other switch terminal. It goes to pin 6 of the 35Z5 which is only an unused pin. Also remove the black wire and line cord from pin 6 of the 35Z5. Save the black wire.
STEP 2. Referring to picture 1 above, I mounted a new two terminal strip where the old filter capacitor once attached. The capacitors at the bottom of the picture are new filter caps I installed to replace the old four section cap. This talked about in my section on rebuilding the S-38, but is separate from this discussion. Using the old line cord attachment to the chassis, install a new polarized line cord with enough wire to reach the new terminal strip. The wide blade wire attaches to the lower terminal pictured above. The other line cord wire, (hot wire) attaches to the upper terminal shown above. Run a long wire around the edge of the chassis from the hot or upper terminal shown above to either terminal of the on/off switch. From the other terminal of the switch, run another long wire back around the chassis to pin 2 of the 35Z5. The black wire you removed in step 1 is now connected to the lower terminal of the strip in picture 1 (the wide blade of the line cord) to pin 3 of the 12SQ7. Now change your schematic to show the switch between the plug and C17. Show the wide blade of the line cord connected to the B-. This completes the line cord and switch rewiring, making your radio much safer to operate.
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