That's a nice big one too. I have several vintage electrical tools from craftsman, some work some need repaired. Its awesome to fix them though especially if they are cheap or free.
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Looks like you have a little rust on the electrical components. Rust as you know acts like a resistor. Did you check the motor windings themselves? Stator and rotor. Does this motor have brushes?
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I've found that it's ussually better to rebuild the old stuff than to buy new. Unless you spend a lot of money. Even then there is no guarantee of quality.
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