Since the motor is a Craftsman, and 2 wire, not likely 3 phase. It is just a drum switch that was used instead of a standard switch. A 20 amp home light switch should work fine on that motor if the amp draw is less than 20. It most likely is. I have had such a switch on a 3/4 hp motor for over 25 years, and it is cheap and does fine.
Most people run from surface rust. I run toward it as I like to restore. I just finished a Clausing lathe for a total of $165 that looked like **** originally. If you like tinkering with restoring things, I think the price is ok. There is a lot of satisfaction in restoration of an old machine. I can buy pretty much what I want, but I still prefer to restore.