recheck the barrel length... it should be greater than 16" the correct measurement is from the end of the muzzle to the face of the breechblock. Measure it properly by inserting a cleaning rod until it touches the closed breechblock, then mark the rod at the muzzle, then withdraw the rod and measure the length from the mark to the tip...
It sounds like the measurement that you gave is only the exposed part of the barrel. If the barrel is truely 16" then the gun is legal from a federal point of view, but I have no idea what the laws are in NJ regarding stocked pistols. If you have other specific questions, just ask. Photos would be very helpful in identification of the Luger.
Welcome to the Lugerforum.
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regards, -John S
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