This dryer used a time/temperature auto dry system with a bit more sophistication in the control than the basic GE time/temp auto dry which has far less space between delicate and regular. As Bob said, there is no moisture sensor. It gives better drying performance with mixed loads than the dryers that use a moisture sensor, but it has its limits. I believe I remember reading in our owner's manual that there is an adjustment for the Compensated Control thermostat behind the name plate just above the door opening. Unplug the dryer before you go into it, but I believe you will find an adjustment screw where you can raise or lower the temperature. If you find this, make only small adjustments. It might help.
I am puzzled that even though it sometimes gets too hot, clothing is not drying completely. How long has it been since the front of the dryer has been removed and the entire pathway for the air, out to the vent cap has been vacuumed and the blower impeller and housing cleaned? A dryer of this age, ca. 1966, is certainly a candidate for it. If the air path is partially blocked, it could force the dryer to be cycling the heat on the high limit thermostat, especially with a heavy load which would give poor uniformity in performance.
In the worst case scenario, the operating thermostat could have become erratic. I don't know what the odds are of finding another so let's hope it is just a matter of some overdue maintenance.