Grotto said —-Thanks for all the help
John F – Good point about where the indicator stalk is on the head stock. I did it again against the register and there’s no movement in the gauge.
also checked the back plate on the outer edge. Photo shows maximum…
Grotto, re the above and the relevant photo, a runout of 0.005" is far more than it should be — look for 0.0005" or better ! From what you say about previous owner it has not been the original fitting/making of the backplate so one must assume something has changed.
As has already been said and this also suggests to me there is some damage, dings of embedded swarf in the register or maybe the threads. A finger nail or tip can often detect imperfections not seen by the eye.
Assuming the thread fitted easily when in reverse and if it is still tight when the right way around then clearly that is the first thing to solve. When that is solved re-check face with your clock and look for an improvement.
Unless there is a serious bruise on the register part its unlikely the bore is damaged but look/feel for any swarf or scoring. However your photo suggests this is not the case. The rear face I would stone this with a very fine India stone – make sure it is flat and not worn !! If you don't have that use a parallel or similar with 800 paper– use very short back and forth strokes to ensure flatness and work around the the boss not just in one direction. This is to remove only any dings — take care not to remove parent material.
Once the all the above is resolved should there be no further improvement I would consider skimming the face where the chuck locates BUT take care not to alter the diameter of the location register for the chuck body.
Might be good to say where you are located there could be someone close by to offer hands on help ???
Regards John