The whine you hear in the rear end is probably the normal whine- My 806 has a fairly loud rear end, a friend's 1206 is fairly loud, too. The transmissions are all straight cut gears- loud but sturdy.
The black smoke when accelerating in high gear and startup is a good thing- I'd be more concerned if it didn't throw up a little black smoke.
Sounds like you have found a fairly good tractor. The $6900 price tag sounds as if the owner is pretty proud of his tractor. For that price, It had better have excellent tires and a pretty nice looking paint job, in my opinion.
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Today's Featured Article - The Cletrac General GG and the BF Avery A - A Bit of History - by Mike Ballash. This article is a summary of what I have gathered up from various sources on the Gletrac General GG and the B. F. Avery model A tractors. I am quite sure that most of it is accurate. The General GG was made by the Cleveland Tractor Company (Cletrac) of Cleveland, Ohio. Originally the company was called the Cleveland Motor Plow Company which began in 1912, then the Cleveland Tractor Company (1917) and finally Cletrac.
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