Need help with this lathe - 109.21270

This is a great "learning lathe"

Is is very limited in power and abilities so mistakes are less likely to hurt you.

It requires more skill to produce accurate work but is capable of good product when used within its limitations.

General cleaning of gunk and fresh correct oil and use AS IS.

Learn on this and hunt...

For the next one...and the next one...

Our first was worse than that, second was better than first but worse than that...

Finally have a good crew but you never know what may come next...

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So I guess my biggest question is: would this little thing even be worth restoring for an apprentice who will be writing his
red seal in the coming fall or should I look for a bigger one? What can it actually do and what are its limitations?

Really depends on his needs and the actual condition of this lathe. They are worth a bit of money, typically for one in that condition I see them going for around $200-400 on local sales, but I have seen some sell for as much as $800 on ebay, but that is just crazy to me.

Parts and tooling can be somewhat expensive for what you end up with. The real value of these is for somebody doing very small light work, that doesn't require high precision and wants a very small lathe. They are also very stylish with the turned metal and art deco looks which probably plays a part in their popularity.

Not that these can't do fairly precise work, but lacking calibrated handwheels the user will have to take frequent measurements off the part as they work making it less convenient. I don't say this to demean these lathes as I think they are neat, but they were not really made for serious machining projects, even small ones. They were sold as an inexpensive hobby lathe for garage tinkerers, and mechanically inclined teenagers. They are well suited to making trinkets, ball point pens, salt shakers, chess pieces etc.
For some comparison, in 1949 Sears sold these lathes for $43 (US) they also sold the similar sized Atlas built Craftsman 101.7301 6x18" lathe for $106. Honestly even the infamous 7x12" Chinese mini-lathe is a more capable machine.

For somebody looking to do the kinds of projects I mentioned above then putting a bit of money and effort into is well worthwhile. However if your son is already a machinist apprentice and you are thinking he would use it in relation to his apprentice training he would probably be better served with a larger more capable lathe. Personally I'd just ask him, maybe he would enjoy for what it is, or maybe the two of you could fix it up and sell it using the money to go towards a lathe he could use.
 
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I had one as a youth, & liked & used it At home.
i knew it’s limitations, as when I grew up my Jr. High & High School had many lathes to learn on.
not so much any more.
your son would probably be better off with a more robust lathe, but these 109 type are still a hoot to use.
 
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