It's not an old wives tale, it does work and I have posted about this before on this and other forums.
Tightest hole you can get use neat trike, after than soluble oil ad then neat cutting oil.
To get a reamer to cut undersize rub a hardened dowel pin down the flutes, top to bottom. To get it back on size again rub the same dowel pin down the front face of the flutes. Top to bottom.
To stop a machine reamer leaving circular tram lines in the work which is caused by one tooth being higher than the others, take a fine stone and slightly round the front chamfers were they meet the flutes.
You would never use a lathe tool ground to a sharp angle without breaking the corner with a stone but reamers are sent out this way as it's cheaper.