Early 30's and E3's did not have a "brake" on the PTO and it is normal for them to continue to spin even in the "off" position. I believe in '48 or '49 a brake was added to the unit. Irv Buttrey has the parts you may need if you have to tear down your unit.
Tony,
Thanks for the help. It is a 1949. Someone said to change the oil and work it a bit and see if that helps. Any idea what might need replaced if that doesn't fix it?
Thanks
Mike
I would guees the clutch discs are stuck or don't have enough clearance. You'll have to tear it apart and see what's in there. Get a shop manual for help or contact Irv Buttrey. He's a PTO genius. His contact info is in the vendor section. Good luck!