The mystery:

W. J. Gage Co. used this perforator from 1887 to 1904:

After 1904, they used this perforator:

Why was the original machine replaced?

The solution:

The Great Toronto fire of 1904

April 20, 1904, fire destroyed the heart of downtown Toronto. Virtually every building on Bay, Wellington, and Front streets, all the way to the water's edge suffered damage and most were completely destroyed.

Fire investigators traced the source of the fire to the Currie Neckwear Co. factory on the north side of Wellington St., a few doors west of Bay St. Up on the top floor, a hot iron had been left too close to a pile of rags.