Armco Steel Corp. was big in making and supplying wire rope for many industries back in it's day. The salesmen would give out these selling aids, like this one and many other "freebies" we use to call them. And yes, they were used to check how much a sheave had worn and also identify the size of wire rope that was needed for a given sheave. If you ran the wrong size wire rope in a undersized groove sheave or oversized sheave, it would damage the wire rope. I can recall my dad had one of the gauges in his tool box many years ago. Have no clue what happen to it over the years.