Nelson got his converted full auto 1911 Colt that he used at the Wisconsin shootout with the FBI from a Texas part time gunsmith and leather crafter named Hyman Lebman.
Nelson killed an FBI agent with the Colt at that face off.
A converted to F/Auto and cutdown OAL Winchester Model 1907 would have been from the same source.
Another of the Colt conversions made by Lebman was found at the Lodge scene. It was thought to have been left there by Dillinger.
The gun was traced from Colt to 'Wolf & Klar' then to Lebman who bought it from W&K.
Lebman (sometimes using the spelling 'Lehman') always had the Feds after him. He converted the Winchester 1907 rifles to F/Auto and cut down their AOL. Made 'machine pistols' out of 1911 Colts. Some would dump out the entire magazine, he tried controllable full auto trigger as well. Both 45acp and 38acp calibers.
He put compensators on the bbls, extended mags.
Prior to 1933,,there was nothing illegal in doing so.
He was a very busy man and well liked by the Gangs a that time.
The NFA Act of '33/34 brought the Feds down on him with some more law behind them than they had previously.
He was eventually charged with Fed Firearms Violations under the NFA.
But very long court battles and then finally the start of WW2 intervened. The whole thing simply seemed to vanish in the court systems of the US and Texas. He never did serve any jail time AFAIK.
Interesting character for sure.
They have (or did have) at least one of his full auto Colt 1911's on display at the FBI. I don't know if any of the Win 1907 F/Auto cut down rifles are there also.
Just a gun tinkerer....
Added
Here's an interesting Win1907 conversion done during the Cuban Revolution using a multitude of mongrel parts:
The M1907 Cuban Winchester – Strikehold.net