Rear wheel is also way too far forward, possibly the chain is elongated or even just too long given the mount of droop.
Can't really see, but the front rim looks more worn than the rear, suggesting there may have been a front brake which was removed possibly ?
Top part of headset looks wrong - perhaps plastic.
There's also rust in most of the welds, it needs ...
According to the Everything Murray Bicycle your serial number:
M9501JX26172612 (Not sure about the "J". Best I could tell from the picture)
M9 = 1969
The "X" begins a string that indicates who the bike was made for.
For example "X13" would be a Murray branded bike.
If you ordered enough bikes from Murray they ...
It's a Tektro RL340, or the same lever under another name. Cane Creek SCR-5 hoods are the readily obtainable option. Tektro made variants of this lever for a bunch of brands, including their own, but the Cane Creek hoods work for all.