I believe there was a rod mounted in the cross hole, and the thread held a set screw or thumb screw. The knurl was for grabbing the holder and rotating it in the spindle with some kind of indicating tool mounted on the rod. Probably used on a jig borer.
An arbor for an adjustable tramming tool? A thumb screw in the end threaded hole would lock the swing arm in. The knurl would facilitate rotating the spindle.
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