I remember seeing this very apparatus in a friend's home about 15
years ago.  It did just as described.  A master roll was typed/cut,
and errors were corrected much like a piano roll master would be
repaired/corrected.

I recall it was a very successful business, and they made 20 copies at
a time.  It was, however, very labor-intensive, and prone to constant
breakdowns and repairs.  The vacuum was generated by the same pumps
used in player pianos.

The sound of twenty of those machines was incredible but awesome.
I just talked to this fellow's sister, and she is sure that all was
junked a short time later, as they got computerized.  I hope someone
has preserved one of those mechanisms, as it sure was a treat to see
it all work.

Devon Hollingsworth, in Chicago Suburb