I have used the following technique to restore several Old Timers (Schrades) that were given up for lost:
If it has rust (either on the blade, hinges, or inside), spray it good with WD40 and let is soak a day.
If the blades have deep scratches, I then buff them with a low speed dremel, a cotton wheel, and white jewelers rouge.
Finally (and this is what matters most), I use 2000 grit wet/dry sandpaper (which you can get from an auto body shop) and a piece of rubber gasket material, cut into a 6" x 6" square. I lay a piece of sandpaper on top of the rubber, lay a blade flat on the sandpaper, press firmly and slide it back and forth. Keep moving the blade to clear areas of the sandpaper so that you are always rubbing on good paper. This will make the blades shine like chrome.
Lastly, I use the dremmel on the bolsters and the backspring of the body.
The above process was used on the knife pictured below. When I got it, it was covered with light rust, some patina, and it was generally pitiful looking. As you can see, it's quite a treasure now.
Hope this helps.