You've got it right, just as atholl explained above.
That 4-position switch, has a resistor on the back of it to cut down the current for a low charge. The L(ow) is the only position in which current is passed through the resistor. In the H(igh) position, the resistor is back out of the equation, and the generator current has a straight run to the battery. In the D(im) and B(right) positions, still no switch resistor, with the light filaments taking the place of the resistor to limit charging current. (In the D(im) position, there is a second, separate resistor on the back of the swithc to limit the current to the light, which is cut out in the B(right) position.
(One result - if you see a higher than normal charge while your lights are on, look for a burned out bulb.)
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Today's Featured Article - History of the Cockshutt Tractor - by Danny Bowes (Dsl). The son of a very successful Toronto and Brantford, Ontario merchant, and himself quite an entreprenuer, James G. Cockshutt opened a business called the Brantford Plow Works in 1877. In 1882, the business was incorporated to become the Cockshutt Plow Company. Along with quality built equipment, expedious demand and expansion made Cockshutt Plow Works the leader in the tillage tools sector of the farm equipment industry by the 1920's.
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