Can this be restored?

[Drew Riley]

What's the hole in the vertical span for?

Your anvil was likely cut from the end of a piece of track. They often have holes in the vertical web for splicing to the next length of track. Two rails would be laid end to end, each with a pair of holes in them, and then a plate would be bolted to either side to lock them together (the bolts passing through the holes in each of the rail ends).