Stock fix problem

[louthepou]

Indeed steaming works when wood has been crushed, not removed.

Chiseling away a flat section and doing a good patching job with good glue and matching wood would be a repair, but the surface area seems large... I'd leave it as is, I think.

Lou

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[tbonesmith]

Any repair will be larger than the damage, and unless you're a magician, any repair I can think of will be more unsightly.
I can think of one thing I'd try though, get some coloured waxes used to repair chips in timber work, specialist suppliers sell sets. You can combine the colours to match what you have. You just heat a small metal filling blade and knife it into the chips, then you knife/smooth off the excess and rub with a cloth. If it looks better great, if not you just pick it out and no harm done.
It wont be invisible but it will disguise it, and require no permanent modification

[Pattern14]

Maybe the "numbwitt" who put the initials there actually carried the rifle in service. If so, I'd say it was part of the rifle's history and anyway you're probably not going to repair it without it being obvious. If it's a U.S. rifle, practice was not to deface Government property but things happen!