I think it is a lathe

I think it is a lathe used for trueing the metal wheels. Does anyone know for sure?

 

Yes. There is one saved in a Mexican old roundhouse that has been re-purposed..photos here on TB somewhere...I've seen them.
http://www.practicalmachinist.com/v...46547-1913-wheel-lathe-work-img_2339small.jpg
http://557.alaskarails.org/restore/progress-reports/2014_06_15/Drivers-on-Wheel-Lathe.jpg

 

This is the way we do it now, some different.

http://www.railway-technology.com/contractor_images/6569/images/234830/large/tuu1250-2.jpg

Or on the locomotive from the bottom.
http://www.railway-technology.com/contractor_images/6569/images/234834/large/tup650-2a.jpg

 

I've seen one in the Ely Nevada maintenance shop.

 

Cass Scenic Railroad has one too. I think it is a bit bigger, as well.

 

Small world. I took these pictures at Cass. It was in the junk train row in front of the rental houses.

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The Steam Railroading Institute in Owosso, MI also has one that was in the old Ann Arbor Ry. shops. Not operational at present. I have been told it needs a rebuild.