If the bike pictured is the same one as the bike in the photograph then I'd personally preserve it as is. I might do a very carefull overhaul to make it ridable if the tubing is still structurally sound. Is a family heirloom type of thing? Looks like it could have been your grandpa's bike, sure wish I had my grandpa's bike.

See if you can get any close up pics of the headtube and any other distinguishing features. Also look over the bike very closely to see if you can find any numbers stamped into it. Sometimes with the light just right you can get an angle image look with your eyes and pick out details from old paint lettering.