I wound up putting another comment down below, I spoke to a friend of mine that also grew up there and whose parents still live there and have for quite a while, turns out it's a running joke from the property owners, idl what type of tp they're using or if there's some other roll of paper that looks like tp they put on but you're mostly correct, the original building burnt down a long time ago but the roll holder was left, so the property owners where putting on regular tp rolls as a joke, and have been doing it for about 30 years now, I assume they're using some kind of rolled wax paper now considering the condition it looks to be in so it doesn't degrade as fast but yeah, turned out to be just a running joke the owners do.