That's a very bad sign indicating buffing damage to the tone hole rims.  Repairing such damage is a job for a top-end technician and will be costly.  My understanding is that a damaged rim can be replaced with a soldered-on ring salvaged from a Conn res-o-pad, but that is a job strictly for experts.  Also, if there is that degree of damage to the tone holes from buffing, there is a strong possibility that overbuffing has occurred on the posts, which can cause excessive play in the keywork.  Pass on that instrument unless you can get a full estimate of repair costs from a technician with expertise in old Conns and those costs are reflected in the sale price.