Indeed it is an electrical insulator. They would push it through a hole in a piece of wood in the wall and pass the wires through it. I have found several myself, and wondered what they were until I found out.
Yep Thats it!! Im an electrician and have quite a few of these I have collected over the years. I have several longer ones which I use to sharpen my knifes. They work really well!!
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mike
I had found one a few years ago, never knew what it was. Thanks to the good folks at T-Net, I now know what it is...if only I can find it again, I hope it is stashed away somewhere.