I haven't had any bakelite to turn so I don't have that experience to share, but there is another miniature turner on EBAY who uses it for mini turnings quite often.
I could be wrong on this, but I think they used formaldehyde in the manufacturing of it. Might want to use a little extra precaution when turning just in case.
My wife, who is an estate liquidator and appraiser, confirms what jhs494 states regarding the formaldehyde. A little extra precaution - like a respirator - might not hurt...