That won't be of much or any use in the shop. It could run a small micro-lathe, or something light duty that takes a V-belt. Torque will be low, most likely. The 5/16" shaft is the clue that the power and torque is not high, or it would twist the shaft in half.
The 1HP rating is probably very over-optimistic.
To run that as VS, you could do two things:
One is use a variac. The motor speed will be relative to the input voltage. This would require no changes to the motor.
The other is a PWM or other DC drive that is rated for 1HP. You would remove the diode bridge, and connect the DC output from the drive to the motor.