I’m not familiar with wiring three rail O gauge so I won’t offer a ‘fix’ though it’s not clear to me why you need two power supplies to run one train. If its wired correctly, one power supply should suffice even with inner and outer loops.

Anyway, as far as your switches are concerned, you should wire them so that each side of the switch machines themselves are connected with the same power leads (+ and -) but using only ONE switch controller. This way, when you ‘throw’ the switch machine controller, both switches will be aligned at the same time to allow the crossover function you described by only using one switch machine control. When you throw the controller to the other position, the switches will both be aligned to allow passage over each of the loops, again by only using one controller (and saving you a little money).

Hope this helps,

Geof