I am familiar with those little lathes, as my grandfather and myself have had a couple of them. They were made for a specific duty. That was light machining of small parts. They were somewhat troublesome when they were in good condition. As I recall, they didn't have a lot of meat around the spindle casting. Any time you apply needle bearings, remember that the shaft has to be hardened to run with the needles in the bearings. I don't think the spindles on these little lathes were RC 55-60. Don't ruin your little treasure by trying to push it beyond it's limits. Find some new Oilite bushings and install them. If they are to loose for your standards, make your own bushings and use a heavy (high pressure) spindle oil. Good luck, and take care of your piece of history.