Hi Waldo,
what you have there is a Mica Under-cutter for use in reconditioning MOSTLY DC starter and generator armatures.
the lathe is not powered up during these operations
you would mount the armature between headstock(chuck) and the special drill chuck that is contained in the lil box with bronze jaws.
you'd center up the cutter on the mica segments and work the carriage laterally to cut the mica insulating material that lies between the copper bars of the armatures commutator portion. You'd set the desired height with the elevation screw and lock it down, fire up the lil motor and advance with the carriage until the cut is complete. you'd manually turn the armature to the next mica segment and repeat the process until the mica is sufficiently undercut on all segments.
it's a time consuming process but works well.
if you are going to use it i would highly recommend that you oil and cover the lathes ways and cross-slide with towels or rags before you start.
mica is some nasty stuff and will scratch machined surfaces of your lathe like you would not believe, and very quickly i may add.
as to how rare they are i can't say for sure.
i don't own an atlas lathe anymore but, i still have a unit very similar to yours sans the literature.
nice score by the way.
you'll have a lot of fun with the TH54
good luck
mike
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