I wonder if the tang is some kind of positive location/positive lock for the wooden handle? The tapered square section would prevent rotation and some collets etc in the handle could be tightened down into the groove above the tang to prevent the handle being pulled off?
That does look like the end of the groove sticking out of the handle in the old catalogue drawing above. Perhaps screwing the metal collar on the wooden handle tightened some collets or balls into the groove, pushing the tapered square tang home firmly?
I’m thinking it worked like a Nitto bayonet fitting etc on a modern compressed air hose.