The extra washers could be a result of the races turning in the hub, recessing further into the hub that originally machined.
When you go to remove the races from the hub, they should be tight, not able to turn in the hub. If they are a little loose, they will still work, but they shouldn't be really wallowed and recessed.
The other thing that comes to mind, there is a spacer on the spindle, looks to be part of the felt seal by the diagram Will Herring posted. It appears to be there in your picture, but when you get it all cleaned up, be sure it is there and not worn thin by the bearing turning against it.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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