Bob,
The reason the 50 has that air cylinder is due to the fact that it came from the Sumpter Valley Railway. Built new for the SVRy as the 101 in 1937, the Davenport was equipped with the air cylinder to actually lift the coupler so that it could be moved into one of three positions for dual gauge switching in Baker City. The coupler was fitted into a "T" shaped channel, and when switching narrow gauge cars was in the leg of the "T". The locomotive was equipped with this arrangement at both ends. This same set up was also used on Sumpter Valley Whitcomb number 100, and prior to that on Sumpter Valley mudhen number 14. It was also used on the idler flat used in South Baker.
To my knowledge, though it remained in place, the lifting mechanism was not used as originally intended while the locomotive was in service on the Rio Grande. It may have as you suggested been modified and used to operate the coupler, though.
Thanks, Taylor