Redneckchevy, welcome to the forum, and to the wonderful world of Krags!  You're among a great group of people here...

My feelings are that those holes, being where they are, would have severely weakened the chamber area of the barrel.  They actually look pretty deep (from what I can see)!  I would just clean it up and enjoy it as a "Look but don't touch" relic or heirloom.

There is another option, albeit a pricy one:  You could have the CMP install a new Criterion barrel.  A carbine barrel, with the 1903 front sight would return it to safe-to-shoot, and you'll wind up with a fun shooter, and useful hunting rifle!!!

Just my $0.02