I think I know whats happened... the bullgear is keyed onto the spindle but to get the shaft out you have to turn it so that the mark on the spindle lines up with a mark on the headstock casting, that puts the key at the 3-o-clock position looking into the headstock allowing it to move through the bearing (you can see it out of focus on the left in 1st pic). If you don't line it up and try bashing it out with the bullwheel at the 'normal' position (i.e. the locking pin at 12-o-clock) the key tries to cut through the bearing - hence the partial slot at the 6-o-clock position in the 2nd pic. Sometime in the past someone has tried to remove the spindle and gave up, smashing the bearing in the process... this also probably explains why the back end of the spindle is burred over and wont admit a 3/4" bar (fortunately the thread for the changewheel retainer doesnt run right to the end).

Here are the spindle journals...

Front


Rear