More than likely the crank has been bearing down on the crankcase. Check the crank play is excessive, not side to side, but up and down. If excessive then I would replace the crankcase. The crank should be good since it's cast iron, all the wear will take place on the bottom, inside surface of the crankcase.
EDIT: Shims or thrust washers would be another option, but putting a good crankcase in the mix would be best. Some previous owner probably ran without air filter in place and got grit in there causing premature wear.