Unknown Tool, National made for Thomas Burdett Montreal P.Q.

I bought this item at an auction 15 years ago because I liked the way it looked and how well is was made. In all this time though, I haven't been able to identify what it is. I'm hoping someone out there can help me identify it.
I thing it is some type of cutting tool. The front, which is embossed with the mfg name and has a 1" semi-round hole in the center with machined threads or cutting flutes inside the hole. On the opposite side of the hole there's a hinged container which I believe is to collect the cut material. The name of the mfg on the front is: "National, made for, Thomas Burdett, Montreal P.Q. " It isn't very big and measures 4 1/2" (at the widest part) and 3" tall.

Thank you in advance for any light you can shed on this item.