It's been almost 2 months since you posted this thread, and haven't received any advice yet, so I guess I'll respond so at least someone offered you some help.
First off, the leather in the pocket irons is not splitting, its getting stencil cut, from the balls. The Olhausen rails being only 1 1/2" thick, means they're a good 1/4" lower in the back of the pocket than any other tables using the same pocket irons but with thicker rails. Because of this design, when pocketing the balls with any kind of speed to them, they're hitting directly into the back of the pocket iron, right againt the leather, then being deflected down into the pocket basket. If you want to prevent the cutting in the future with new pockets, you're going to need to glue an additional strip of either leather, or neoprene right over where the cutting takes place, to obsororb the balls hitting the pocket iron, cutting through the leather. The patch has to be glued to the surface of the pocket, exposed to the ball beating area, or it won't do any good. The patch needs to cover the center 3" of the back of the pocket, be about a 1/2" wide, and be superglue to the pocket leather, about an 1/8" above where the pockets cut at before. If you have any old leather belts laying around, cut one up in strips and you have your patch material right there. You can use some shoe dye to match the dye of the pockets, and profile the thicker edges of the patch to a tapered edge blending it in with the pockets you're adding the patchwork to.