Correct. Applying + 12 v to the solenoid terminal should cause the starter motor to engage and crank.
First thing to do is measure the voltage of the battery when you attempt to start the motor with the ignition switch or turn on the headlights. If the voltage at the battery terminal drops below 10 volts your battery is likely shot (high internal resistance).
Assuming the battery tests out fine then:
If the starter motor cranks using the 'hot wire' test, then the first place I would look would be the ignition switch. This is supported by the fact that you report that the dash lights are dim indicating a poor electrical connection. Replacement 140 ignition switches are out of production; but, you may be able to rehabilitate the existing switch by removing the back cover, cleaning the contacts and applying something like Deoxit to the contacts.
If the starter motor does not crank, make absolutely sure that the motor chassis ground strap is in good condition (it should be down in the starter area; but, not connected to the starter) and that the battery ground and Pos cables are good. If the connections are all good, then its time to check out your starter motor.
Those are just a couple of suggestions. There are a whole bunch of things that could cause your symptoms including your neutral safety switch. Getting a Haynes service manual with a wiring diagram for your car should be high on your priority list. You are likely going to need it for a car that has been immobile for 20 years.
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