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I can't tell from the pictures, but around that time period diamond grit drive wheels came into use. Either the top or bottom drive wheels would have a diamond grit on their surface which would make an indentation pattern in the paper which acted to key the paper in place. The registration was even better than drilled paper which could develop a little slop around the pins and the holes.



Given how fast this plotter (not the type in the OP) throws paper around I'd say it works, at least in ideal circumstances.

https://www.youtube.com/watch?v=BYGPSAD5L_k




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