It also looks like the original dial has been replaced with a #6. For a phone made in 1936 I would expect a #5, or maybe even a #4. Still, even with the replaced receiver and probably a replaced dial, I would expect it to go for some serious money.
Portland, Oregon, where I grew up had Capitol as its main downtown business exchange name. Lots of cities had Capitol, but I thought that was interesting. In Portland, the CApitol exchange was created in the mid '50s when the numbers were expanded by one digit to go from 6 to 7. They went to two letters, followed by 5 numbers, so just like on this telephone, the format for many years was LLN-NNNN.