Hi Terra,
The funny signal on your scope could be from ground loops, the scope's input is referenced (tied) to the ground.
A simulation shows that the oscillator stage (the first transistor) would run.
I used a "present day" crystal model, not sure how it would differ from your original crystal.
For the transistor I used a modified 2N3904 model. The 2SC269 is a 100HMz Si transistor, with a minimum beta of 40. In my 2N3904 model I changed the beta to 100.
What made a difference in the output was the biasing of the second stage, the output transistor.
From DC point of view it is a "badly designed" circuit, the biasing is not too good, it depends solely on the beta of the transistor.
Even with a beta of 100 the transistor is saturated, the collector is nearly at ground level.
When I changed R52 (in the scanned schematics), the base biasing transistor, to 220k I got about 5Vpp "squarish" output signal.
Hope this helps.
Regards, Peter