The magneto in these phones is basically an AC generator. You crank a mechanism, it spins a coil within permanent magnets and generates voltage at a moderately high current. You don't want your body in contact with what these generate.
These were actually used as torture devices by some parties during the war.
The magneto only creates power when cranked.
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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