Chad, welcome to the forum.
I hope the information provided is helpful, particularly on the police unit marking.
The Luger was reworked at some point. The serial numbers on the receiver overstamped originals when the receiver cannon and toggle train was wedded to the frame and the barrel work done. It's likely work done within a police arsenal to recycle a commercial DWM into police service. The Crown/N proof indicates commercial proofing, and it is, of course, lacking military contract inspection acceptance markings.
Many soldiers talk about confiscating Lugers from "German Officers", but this is not very common. Officers typically carried less bulky firearms like the Mauser M1914 pocket pistol or the Walther PP. Lugers were carried by a wide range of soldiers. Many of these were personal purchase weapons.
This one is a police Luger, so most likely confiscated when Allied armies took control of civil authority in German cities and regions.
Is there a record of your Grandfather's service when moving within Germany that would put him into the Dusseldorf region?
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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