I had to make new wipers for my shaper a while back – and spent some time going into what "felt" to use…
Some people will advise the use of various kinds of 'soft' felt (as used in toys, hats etc) but the kind you ideally need is an "oil-retaining" 'hard' felt – and the vintage car site (the same site that John has already pointed you to) was the only place that I could find the right stuff. Apparently old cars use it in all sorts of places! It's not that expensive and I purchased several 6"x6" sheets in various thicknesses which will last me a long time hopefully.
One other thing that I may do when I get around to fitting wipers to my (other) lathe – is to include a neoprene 'pre-wiper' as I had to make these for the shaper too – and it seems a good idea. The rubber wiper helps to stop the swarf actually getting in – and the felt lubricates. A bit belt and braces maybe and (of course) you will still need to regularly remove the wipers and clean the grunge out…but hopefully there will be less of it. 
Regards,
IanT
Edited By IanT on 02/07/2015 18:44:27