Some sort of sprocket drive, but the thickness of the cylinder and the shape of the teeth do not appear to be right for a chain. Ad says it was used mostly for running a buzz saw, so I am thinking some kind of cogged belt.
From the "why do I have a picture of this?" file. A slightly less deteriorated paper pulley. It has the same partial pulley width round metal interior and I would suppose there has to be something in there to keep the paper from spinning on the metal part.
That is a sprocket for stamped steel chain. It looks odd because it only has teeth for every othert link of the chain. I don't know what specific machine it was for. I might be able to tell with a part numbert.
I think if it were a cog pulley the cogs would be in the center of the flat surface not next to one edge where only one side of the chain would be supported, or the whole pulley would be narrower so there would be no difference.
Edit: I used the term cog; sprocket is what I meant
Stamped steel chains are supported by the cross bars, not the edges of the chain. I'm sure the edge of the chain doesn't run on the side we can't see either. The sprocket has however much offset was required to align with the other sprocket it drives.