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Stuck back wheel on Schwinn Racer

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Loosen both nuts center the wheel holding it snug , slowly tighten each side keeping tension to center , if it stays centered tighten them up good , might take you a few try’s
All the washers including the extra ones are the issue. Serrated washer on the inside of the drop out? WTH......... It's a mess and needs to be redone like the schematic I posted. Serrated washer and nut on the outside of the drop out and get rid of the Home Depot washers.
 
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Your axle spacers are not set up correctly, which is allowing the axle to slip along the dropout slot, which in turn causes the wheel to twist and rub against the inside of the frame or fender. Substantial twisting load is exerted on the wheel when you pedal forward, and the washers are designed to help the wheel remain in place.

Your photo below illustrates the problem:

img_20230414_185054975-jpg.jpg


The tabbed washer has tabs that should stick into the dropout slot. The knurled washer should be set so that its teeth are biting down on the dropout surface. One generally goes on one side of the dropout and the other generally is on the opposite side, which prevents both the axle from trying to rotate forward with the wheel under load, and so that the axle also does not shift and allow the wheel to twist under load (the latter being your main complaint).

Either the knurled washer or the tabbed washer can go on the inside surface of the dropout, depending on your horizontal frame spacing. The reason they are manufactured in differing widths is so that you can set either on the inside to match the rear spacing of your frame (Sturmey hubs appeared on several types of bikes, so they needed to be able to adapt to somewhat different frame spacings - the varying thickness washers/spacers allowed them to do this).

If you are at all confused by this, you should have a mechanic familiar with old Sturmey hubs fix the problem for you because the set up you have now is somewhat dangerous, as the wheel is apt to slip again if you just re-tighten it without fixing the washer orientation.
 
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So pretty much if your worshers are in the wrong spot your wheel will come loose and become catawhompus ? 🤣 😆 - that reminds me my axle cones are in need of adjustment on my red bandix 😉
 
Best case scenario is the wheel twists and the tire starts rubbing on the inside of the fender or frame, usually not a big deal, and it sounds like what happened here.

Worst case scenario, the bike has caliper brakes (they often do if it's an AW model hub), the wheel twists just right and a brake pad jams in between the spokes, locking the rear wheel violently and sending the rider over the bars in front - unusual but a bad result if it happens.

Then there's everything in between.
 
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