How to set a "lever-set" watch:

Lever-setting was a feature of high-end (often railroad-grade) pocket watches that prevented them from being accidently reset to an incorrect time. In fact, lever-setting was a requirement of the General Railroad Timekeeping Standards. Lever-setting requires that the bezel be removed (or opened) and that a small setting-lever be moved in order to place the watch in "setting" mode.

Here's the correct way to set the time on your lever-set watch:

Gently screw off the front bezel (the ring that holds the crystal). Lever-set watches almost always have screw-off bezels. Don't forget: righty-tighty, lefty-loosey!

Find the setting lever (indicated here by the pointer I'm holding). You will see just the tip of the lever projecting from beneath the dial. The lever on your watch may be in a different location than this one. There is usually a notch cut in the rim of the case to accommodate the lever. You don't need any tools to do this, I'm just using this needle as a pointer.

Hook the tip of the setting lever with your thumbnail and slide it directly out from the watch.

When you have the bezel off the watch, be extra careful not to hook the tip of the hands with your finger or change the alignment of the hands.

This close-up shows the setting lever pulled out into it's "set" position.

With the lever in "set" position, turn the crown (the winding button) and you will be able to set the time. After you've set the watch, push the lever back in to "wind" position and replace the bezel on the watch.

Be careful to get the bezel threaded-on correctly as they are a real pain to work with once you get them cross-threaded! If it seems to be cross-threaded, don't force it! Just back it up until it is aligned properly and it should go on easily.

That's all there is to it. You're now a lever-set expert!