Torpedo/ Bendix 3 speed

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I have a question on my Torpedo 3 speed w coaster.

The hub is from 1976 or so. It has a rod with chain going into the axle like a SA only smaller.The shifter is on the handlebars and looks like it wasn't used much. There are no definite clicks for the gears. It's labeled 1,2, and 3, it operates well, but doesn't have any stops for each gear. I took it for a ride and it does shift and ride well.

How do I adjust it so I know it's in the right place?

I have a friends who says he has the same kind of hub, but it says Bendix, along with Torpedo on the brake arm. I didn't think Bendix made 3 speeds.
 
I haven't seen one recently, but i remember them, it should "click" same as SA. :? Have you tried any penetrating lube on the shifter? It may be gummed up from some old 3in1 or something.
 
I have one of these hubs. Same as the Sturmey Archer indexes. I have a S/A stick shifter on mine now.

Adjust so the cable is a barely taught in 3rd gear.
 

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