Hi screwbean. From your post, this doesn't sound like homework, so I'll just give you the answer. Yes.
ok, just kidding. Why a 12" hole for an 8" pipe? bearings? This is a jib crane, right?
A 3500 pound load hanging off a horizontal arm (perpendicular to your 8", vertical pipe) and positioned 36" from the pipe centerline gives you a moment of 36x3500 = 126,000 inch pounds. This will produce a stress in the pipe of 5,140 psi. There's an additional axial load which I'll neglect because it isn't much. Deflection is around 0.072". I think you can also neglect column buckling in this case, just not enough load.
If I've interpreted your crane correctly, then you're well within design limits. But what's with that big hole your shoving this in? (I hate giving advice on the net when there's very little description or explanation of what this is used for. Kinda hard to ensure nothing's being overlooked.)
Oh - couple more things. Do a proof load on it just to make sure. If the maximum working load is 3500 pounds, put 1.5 times that much on it and make sure it doesn't break.
And if this is a commercial application, just forget everything and get a proper crane manufacturer to sell you one. You don't want to take the liability if it's going to be used by employees.