Big, detailed pictures are here:
On the back of the lathe, the big lever is connected to a steel bar. (the top one) This steel bar has a oblong hole for the brake engagement. However, the screw for the brake falls out of this oblong hole. The bar still engages the brake by acting on the side of the nut, however it does not feel right.
The switch that should turn the lathe on and off, seems to be operated by the lower bar. The last photo shows that this bar should be permanently pulled up by a spring (see spring mounting pins) but the spring is missing. I believe that with the spring, the feel of the ON/OFF/BRAKE lever would be different and it would "click" as the dimples on these two bars engage and disengage.
HOWEVER, and this is the crux of the problem, the limit switch that should be operated by the lower bar, does NOT open or close any contacts on the lines that lead into it from the main motor starter.
I have a feeling that someone messed with this and bungled this issue. Has anyone seen anything similar?