A Zep??

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I might suggest a little research - Is the 2 speed hub functional? What is the value to a restorer? you might be better off to sell the original wheel and or wheel and hub and run a nexus.

I thought about that. I'm hoping to keep the skip tooth chain drive on it, but if someone really wanted this setup, I don't HAVE to use it.
 
Definitely swapping out the hoops for something wider and newer. I'm not keeping the saddle, chain guard, wheel hoops, and possibly the crank & hub if I can't get it to work the way I want.

That sounds like a perfect plan for it. You may also want to consider swapping the hoops. Triple steps are known to be a little fragile, especially once they get rusty, since they're just single wall stamped steel. They can get dented up with a hard bump. If they're solid they're worth a few bucks since they're harder to come by every year and were only used for a handful of years. If you have some local collectors, you can probably trade up for a nice drop-center pair. Drop-centers would still suit the period and provide more worry-free beating. The bike here is a true '37 Zep model: http://vintagebikesforsale.tumblr.com/post/59220056906/1937-hawthorne-zep-for-sale

The 2-speed setup is worth some money if you were swapping it out. You can even just pull the guts and replace with the innards with that of a standard Model D hub to keep it functional without unlacing. The hub shell isn't important to somebody purchasing it since it's a standard D. The condition does hurt the value since it looks like at least the threaded cable end is quite rusty and would likely need the cable replaced. Good sets usually sell around 250$, but this should still bring half.
 
Found this supposedly from a 1936 Rollfast catalog. Has the same chain guard and truss bracket on the neck, but I don't have the "arms" sticking out from the fork for truss rods:
image.jpg
 
Picked up a gallon of the Evapor-Rust for the chain but they didn't have anything for a rust inhibitor at the store. Going to try the vinegar method on another chain to see which does better. Do skip-tooth chains come apart like a standard chain? Can I use a standard chain tool on it?

Here's the tires I got for this build when the time comes. Electra Retro Runners with the red pinstripe.
106100211-228x228.jpg
 

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