"although there are hairline cracks lengthwise on the limbs"
Don't worry about these hairline cracks. They are stress cracks and are not uncommon for that era Bear bows. Many also develope fine horizontal lines. This is referredto as "hazing", and are also nothing to worry about.
If the bow is shooting solid now, there is no reason it should not keep shooting solid.
The '61 Kodiak is definitely a collectors bow, but as Cameron noted, the "display" reduces the value a bit. But, if it is in good shape otherwise, it still may bring a good price. The only way to know is to put it on the Auction site we must not name and see. If at least two guys really want it, the price wil lclimb.
I I were you, I would keep it. I value the sentiment of a bow, and yours is a keepsake from a friend.