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IIRC, arsenals and depots would not try to restore an obliterated or defaced serial number; they would remove it entirely and put on a new serial number from an assigned block of unused numbers, sometimes, but not always, preceded by the letter "X".
As to legality, the law clearly states:
"It shall be unlawful for any person knowingly to ... possess or receive any firearm which has had the importer’s or manufacturer’s serial number removed, obliterated, or altered and has, at any time, been shipped or transported in interstate or foreign commerce. " There is no exception for antique firearms, and that rifle is not an antique
Jim
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