Hole in the Furnace

Hole in the furnace -High heat bills -Do I need a new boiler?

I've got an antique steam system (1897) and high heat bills. When the daytime temperature is in the 30s, I burn $27 (1000 cf) of natural gas per day. My furnace (Weil-McLain EG-50) is from 1983, and it has a rusted out 2.5-3 inch hole in the top. When I put a mirror over the hole, condensate forms on the mirror. The third floor radiators are tepid at best, and the first floor radiators get red hot. Do I have a hole in my boiling chamber? Is the hole causing my high heat bills? There are two things I can't explain. #1, I flooded the boiler (see details below) way past the header, but the water did not pour out of the boiler's jacket. #2, If there is a hole in the boiling chamber, how can the steam pressure ever reach the 2 psi cut-in level?

Do I need a new boiler?
Thanks in advance for your suggestions.
Ben

(I've included a number of other details below, for people like myself who need to know everything they can about the system)

This is my first heating season in my new (1897) house in Philadelphia. My old steam system suffers from many decades of neglect. In the beginning, we had water hammer, cold radiators and the previous owners told us to expect high bills. I bought "The Lost Art of Steam Heating" (TLAOSH) and got to work. My plumber corrected the sagging mains and eliminated the majority of the water hammer. We still had some water hammer on startup. I got rid of the rest by inadvertantly flooding the boiler up to the header, and probably much higher -the boiler guage read 3 psi. I drained out all the water down to the water level(about 40 gallons) and removed a couple of decades of sludge in the process. No more water hammer! (I can't really explain why though). Replacing the main vent got heat to all the radiators on the first and second floors. We have no F/T trap or condensate pump. The dry returns go in to a drip loop similar to the diagram on p. 229 of TLAOSH. The "B" dinension is 42 inches. About half of the radiators have steam traps that don't close (I tested them in a pot of boiling water and the bellows failed to expand), and the other half have no steam traps at all, just the original plain elbow hardware. The hand valves on the unadulterated radiators are stamped "Davis Pat 1903" and they have 4 settings, plus off.

I hope these additional details are worth sifting through, I still don't know if I should bother replacing the steam traps.

Thanks in advance for all your commentary.
Ben