The pin on the bull gear is the only 'key' to allow the cone pulley to drive the spindle. Pull the pin to engage back gears, push the pin into the cone pulley hole with the back gears out for direct drive. The cone pulley should be a rolling fit on the spindle, usually bronze bushed. Maybe the previous owner ran it in back gear all the time and did not oil the pulley. The 'set screw that does nothing' is for oiling the cone pulley to spindle when running in back gear.
Again, this is a South Bend clone, instructions would be in HTRAL.
John
Again, this is a South Bend clone, instructions would be in HTRAL.
John