Anything can be fixed with enough resources. I have an early Fox, (Philadelphia Gun Co) that developed a bulge in the same area. A local gunsmith manufactured a sleeve and machined the barrels and inserted it. His specialty was making screw in chokes and installing them in older guns. He then worked down the bulge and had the barrels refinished by Buck Hamlin. This process set me back $450 on a gun I had given $300 for. This was 25+ years ago.
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