Brinybay, I'm pretty sure it's a dictation console. He's probably picking up a handset-like device that is a transmitter (mike) on a handle. The handle may include remote control functions like pause, rewind, etc. The lever switches control which of the recorders for each of the multiple secretaries in the facility that the user wants the dictation to be routed to.
With all those levers, it *could* be the station selector console for an internal office intercom system, but to my eyes, the two larger circular devices (whatever they are, can't tell from the pic) make the intercom possibility look less likely. And besides, an intercom system probably wouldn't be hidden in a drawer like that.
But, that's just my educated guess.
And yes, I believe in those years, dictation devices would have used wax cylinders or wax discs.