Hi, Did you lock the saddle lock? I am not sure this is your model but most lathe builders used the same basic design and this manual looks similar to your machine. The picture on left shows the saddle hold down and that is about all you see on 90% of all lathes. Some also have them under the front too, and a lock part 11 on page 16.
http://www.vintagemachinery.org/pubs/2133/15051.pdf
The lathe appears to be 60 + year old so I suspect the bed ways, saddle bottom & top ways, cross-slide and compound ways are worn.
If I were you I would start out cleaning the ways top and bottom and use a .0015 feeler gage and start to see where you can slide it in and under parts. You said you lift the hand wheel I am assuming you mean part 16 on page 14 1/2 ?
Did you clean the chips off when you lifted it? Have you adjusted the 2 set screws item 41 page 16 that tighten the rectangle gib on the cross-slide? and compound? I see the compound has a tapered gib page 17 part 20.
If you clean, measure and adjust things up a bit and you still have issues I suspect you need to get your machine rebuilt. One simple way to see how much wear is in the machine is to clean the ways, crank the saddle (carriage) to the far right, then take a rag and flashlight and clean the rack under the bed and look at the rack teeth up near the headstock and then down the rack toward the tail-stock. I suspect the teeth under there bed will be 2 times as wide as they are up under the head stock end.
That's a simple way to verify the machine is worn and needs a rebuild. Check things out and tell us more. I see your in Siren, I have a cabin in Hayward and drive up there several times during the spring and summer. If you can wait I can stop by and take a look. Also there is a super machine rebuilder in Roberts who could rebuild the ways. Rich
