If the problem is indeed in the transmission, just about bet that it has a bearing locking up.
Was it allowed to run dry without any oil in it?
Yes, you can pull the side cover, but that isn't gonna tell you much. See if you can get any "shake" out of the input shaft and the output shaft; they both use a roller bearing.
However, the weakest part of those old 3-speeds was the external shifting linkage and I'd take a real close look at that before opening 'er up.
Other than an output shaft bearing, you're gonna have to have it out and lying on it's side to service it anyway.
Further, if you have to take that input shaft out, two sets of needle bearings, which mate the input and output shafts, are gonna fall out. That's where the fun begins. :>(
Uff-Da! Been a million years since I worked on those things! :>)
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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