Dan,
Ray used the washers to offset his cue weights to a gram scale, which is how he measured his cues. The weight set up you show was one of his early units.
Ray was an engineer and the European 3 C players required exacting weight specs that those customers demanded.
For Example, Raymond Cuelemens required a 100 gram shaft and a 400 gram butt. The 100 gram shaft needed to be selected but this weight bolt system allowed Schuler to put the butt right on the money with the small metal washers.
The weight bolt set up you are shown is very basic as some have a more complicated config with the metal washers, nylon and rubber parts. This cue was made between 1978 to about 1983. The weight bolt components became more intricate after that time as it evolved to satisfy the Billiards players.
Ray might not have been a genius in the real numbers sense but he was one of the smartest cue makers IMHO. His number one goal from the beginning was to make the best playing cue he could. He learned how to make cues from Herman Rambo and advanced his skills his own way. His joint is pure magic. He is in the HOF because of his talent and engineering skills.
Rick