[Ron Wood]

Doug,
That is a VERY early commercial Luger and a real treasure. As the other guys have indicated, there are not many other pieces around that are earlier than that one. Generally it is in very nice condition. It is unfortunate that there are some very pitted areas, but surprisingly few and scattered considering it was rescued from a stream! Evidently it spent considerable time inside a wet holster.
The magazine shown is from a later production than the gun indicating that the gun was factory modified to accept this later type magazine. It would be worth a little more if it was unmodified as examples are quite scarce. But, it is a correct, period modification that does not significantly affect the value of the gun.
Your father has given you a significant historical gun. The story behind the gun is great and I am very grateful to your father for his service and for still being around to share the experiences.
The gun is worthy of a proper restoration. There are only a few craftsmen that are capable of doing it right and it would be a little expensive. So you probably will want to let it alone as it is and enjoy it and its history. If you do decide to restore it, please consult this forum for suggestions.
Thank you for sharing.
Ron