It appears to be a Smith & Wesson .32 1903 Hand Ejector with a 4 1/2" barrel. We can't go much further unless you give us all of the serial number except for the last 2 numbers. For those use xx
Your Grandpa had a S&W .32 Hand Ejector, Model of 1903, 5th Change.
These were made between 1910 and 1917, within a serial number range from 102,501 to 263,000. I'd guess it was made around 1914.
Available barrel lengths were 3 1/4, 4 1/4 and 6 inches. They came in blue or nickel finish. 6-shot, chambered in .32 S&W long (ammunition is available).
Be careful of the black hard-rubber stocks. They are brittle now with age, but if you CAREFULLY remove them you'll find the serial no. scratched in the inside of one side because they were individually hand fitted to that particular revolver.
Hard to tell what condition it's in from the pictures, but I's say the value is around the $275 to $325 range.
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