This in not my lathe, no do I have any financial interest in the sale, but I saw this on a trip to 7 Rivers Surplus in Hokah, MN.
South Bend 16 x 36 lathe with taper attachment, QC toolpost and 6-jaw chuck $2500. I took a couple of pics if anyone is interested. Looked like there was a bit of surface rust on part of the ways, but otherwise looked pretty clean. I did not try it our or otherwise try to evaluate it.
They have a bunch of other interesting stuff there, like a Burke horzontal mill for $850, Baldor 1/2 hp 1ph T&C grinder for $260, acouple of Bridgeports, old Delta, Buffalo and other drill presses.
7 Rivers is on route 16 about 10 miles west of LaCrosse WI
Their web site (which is hopelessly out of date) is http://7riverssurplus.com