$50 is a lot cheaper than $200 for a new Edelbrock aluminum pump... Where did you have it rebuilt?? What kind of place would I look for locally? Or did you mail it out?
That is the weep hole. If it is weeping, then the seal is leaking that seals the shaft to the case where it passes through to get to the impeller. Basically, the water passing through will wash out any grease and then you will smoke the bearing.