The Coal Processing Corporation in Dixianna, VA was the outfit that re-gauged what is now RC&BT #1 to narrow gauge. A new steam bracket/manifold was purchased from Lima for the conversion. Unfortunately, the bracket was designed for an extended wagon top boiler and the engine had a conventional (and obsolete by 1912) wagon top design, so the bracket did not fit the boiler. Coal Processing made it work by placing dozens of large washers on the mounting studs as fillers. When Roaring Camp re-boilered the Dixianna in 1979, a welded up spacer was created to fill the gap between the boiler and the steam bracket. The plate connection between the lower crank case and the boiler was simply torch cut and welded together to align the crank with the truck drive lines.
While the engine would operate with the crankshaft out of line with the truck line shafts, there would be considerable extra wear on the universal joints as they would be constantly in motion. In addition there would be problems with the square shafts possibly binding on sharp left hand curves. I wouldn't attempt to run a Shay that way.
As far as the Elk River Climax is concerned, when it was re-gauged from standard to 48", new axles were made and the wheels simply set inward to 48". Somewhere I have pics I took of the trucks back when I worked there in 1979 showing this. They also showed there wasn't much room left between the gears, the brake cylinders and the wheels. Certainly not enough room to squeeze in into 36". If RC makes the engine 36" gauge, I fear they will have a serious problem keeping it on the track, and keeping the axles from breaking by having such a great distance between the back of the journal and wheel. Climax never made a 36" gauge, 50 ton engine, and probably for a good reason. It would be very top heavy.