I took the bike for a spin this afternoon, looking constantly down at the rear wheel, and I could clearly see that there's no way around having the dropout welded.
Google located a single bike shop in Manhattan specializing in frame welding while the yellow pages turned up welders all over the place for boilers and such.
Is there any specialized knowledge needed for welding the dropout that will make going to this bike shop a necessity? They probably will charge a premium being the only one nearby occupying this niche but I could be mistaken.
If this turns out to be costly then I'll probably hit craig's list instead for a replacement frame.
I only considered using epoxy because it would have become a DIY project.