The comment re possible oil loss was because the power-out shaft is vertically downwards. They may have some superb oil seal arrangement, but oil running downwards is so much more difficult to control. I, for one, would never buy an engine with vertical crankshaft, if avoidable (think here lawn mowers in particular).
I most certainly did not mention 3 HP!! It might be robust enough for a 1HP motor but a 0.75 HP would likely make it much more responsive without overloading the mechanicals. I would most certainly not fit a 3 HP motor to that machine – far, far too powerful.
Fitting a VFD for 415V is more expensive than fitting one for 230V three phase operation from a single phase supply. Changing the motor to a (slightly) larger motor which can be run from a VFD might kill two birds with one stone – better power, and speed control.
Many machines of that era were uprated in power, at a later date, by the manufacturers. Both my lathe and milling machine were originally fitted with lower power motors but the later iterants, using the same basic mechanicals, were fitted with higher power motors. One went from 1/2 HP to (eventiually) 1 HP and the other from 3/4 HP to 1 HP.
RAB