I wouldn't use that spindle, it's really beat. After searching around & checking with a few of my suppliers it seems that a 127.5 is the longest spindle being made anymore, I would go with Bills suggestion & find a different crankset to use, it may take forever to track down a 133.5 spindle but in the meantime you could be riding the bike while you are looking if you want too keep it all original. Now would be a good time if you wanted to change the gearing also.
What crankset was on it BTW.
Glenn