Atlas gave a procedure for adjusting the bearing (or maybe it was for their lathes), but I seem to have lost them. If I recall correctly, it involved snugging the bearing then running the spindle for awhile to allow the parts to heat up and expand, then snugging it again?
In the absence of directions, I would just tighten it until there is no play in the axial direciton. Maybe then run it for awhile to be sure that play does not develop and, if necessary, tighten it again while warm to remove that play. Any axial ply is bad, but having the bearings too tight is bad too.
Maybe Robert or someone else can help.