How to clean a crusty with oil chain on a 1950 Cleveland Welding Company's Royal Master

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I picked up a lady's Cleveland Welding Company, Royal Master, Roadmaster from the original owner who said it was given to her in 1950. Serial number is C61070 ACw. I've cleaned it up and was very gentle on the original paint. I need to clean the chain as it is thick with old crusty dry oil. It does not appear rusty. The oil has hardened almost to the consistency of a hard mud. What would you recommend? Another question is what the black metal loop is for under the headbadge? A headlight? If so what kind so I can start scouting around for a replacement? Next up will be seeing if I can get the tank horn to work again.
 
I believe its a 50, yes a headlight went on there..I soak mine in diesel fuel, although the rumor is Transmission fluid warmed up on a hotplate or similar does well. I usually take it to the wire wheel and get all the crud I can off and then throw it in a container of diesel fuel for a day or more. Blow it off good with a airhose and lubricate with some tri-flow or similar....
 

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