I certainly AM correct. I personally took the old Southbend I referred to apart and found cast-into-headstock bearings there,worn out. And,Earlier Myfords used the same deal. The ML10 might have used them till Myford went out of business. South bend made different models. You got lucky. The SB I looked at was about a 13" or larger model.
Your old lathe could have been line bored and fitted with bronze bearings at some time. Not an operation the home shop guy might have the tooling to do. It could have been done during WWII,for example,when machines were desperately needed. martik says his cast iron bearings are fine. He's lucky to have a lathe that was not run too hard,or was oiled properly during its life.
I certainly know babbit from cast iron. I'm a retired master toolmaker.
Martik,you are lucky to have missed that lathe. I have seen BETTER antique Barnes lathes sell in the junkyard for $100.00. But,if you want to do real work,buy a better lathe. Make sure you get the change gears,at least,or get a QC gearbox.
Dirty tools: You need to be sure you are correct before making a statement that someone is wrong. I used to rebuild lathes to re sell,and rebuilt some old SB lathes with cast into headstock bearings.