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Yes, you can install a sound decoder in the Concor/Kato Hudson tender. Along with a TCS KA-1 or KA-3 keep alive, which it will need.
Jim, even with perfect N scale track-work, the keep-alive is those "suspenders" you mentioned. N scale models are relatively lightweight (compared to larger scales), which means less positive contact with the even perfect track. Plus the dirt and grime which seems to appear even on well maintained track and wheels. If there is enough room, KA is hightly recommended, especially with sound decoders.