Craftsman industrial not getting up to speed

Actually, most dual-voltage machines have two field run windings that are connected in parallel for low voltage and series for high voltage. The wattage consumed for a given load is the same regardless of which way the motor is connected. The difference in copper losses is all external to the motor.

Also, not that it is germane to power consumption, but in either all or almost all single phase dual voltage capacitor start motors, there is only a single Start winding wound for the lower voltage (usually 110/115/117/120 VAC (depending upon the year of manufacture) and it is connected Line to Neutral regardless of which voltage the motor is connected for.
 
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I have found the issue last night. I found the old connector and found that it was a 20a 250v connector. So I hooked the lathe to 220v and it worked like a charm.

You actually had the answer right in front of you. From your last picture of the PO's notes "240v (yel. tr green) to term 3" and "120v green with yel. tr to term 4" and your 3rd picture shows that it is connected to terminal 3.
 
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