I can't thank you all enough for the information and to come so quickly too. I've learned more in 24 hours than two generations have learned once my grand father in-law gathered it. It has been interesting to research the history of Masazane.
I told my uncle what you all have shared. He told me that he remembered as a kid it originally had a small knife in a sheath attached to the scabbard. Once he took possession of it unfortunately it was gone. That would support the idea that it had another cover at some point.
I want to turn this into a display piece that retains as much of the historical accuracy as possible. Do you recommend leaving it as is (minus the duct tape) or turning over to a restoration specialist? I think restoring the scabbard, rewrapping the tsuba, and cleaning/minor polishing some of the parts might be all it needs. What do you recommend?
Thanks again for everyone's help!