By "needle holder" do you mean the sound box or reproducer?

- Panatrope Sound Box.JPG (18.81 KiB) Viewed 1535 times
(From Craislist Ad cited above.)
These come up for sale quite often on eBay. Normally, they will have to be rebuilt with fresh, soft diaphragm gaskets and carefully adjusted for maximum sound quality. Keep in mind, the acoustic horn Panatrope models were intended to compete with Victor's Orthophonic line. They were designed to play the newly introduced electrically recorded records with greater fidelity--bass, mid-range--treble--than was possible with older type phonographs.
Your 8-7, once restored, should sound very close to Victor's Orthophonic Consolette (4-3). There are a number of Youtube videos that show the Consolette's sound quality.
HTH,
Joe_DS