Soaking in plain vinegar works at removing rust also. The nice thing about vinegar is you can heat the solution in a pan without any fire risk. There might be an "ire" risk if you do this when the significant other is home though.

http://www.peachparts.com/shopforum/body-repair/344019-ketchup-vinegar-wire-brush-3-days-%3Dalmost-no-rust-3.html

No matter which method you use, if the surfaces of the bearings has deteriorated then they are compromised. Many of the older ball bearings were indeed chrome coated. When the coating is worn away the softer material beneath rapidly degrades.

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