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I have three Peerless lathes that will not take the standard Starrett collets. The spindle hole is smaller on my machines. If a collet cannot be inserted into the spindle with a light push of the finger then it was not meant to go into that particular spindle bore. You have a few options to end up with a working tool but the best option is to secure some Peerless collets. Peerless lathes are truly beautiful machines and it would be well worth it to check around and see if anybody has some for sale. Try Uncle larry’s Watch Shop and see if he can find some for you.