I don't know what type of canceling machines were used but here is an example from U.S.


The offsets on the back were transferred from the previous cover(s)

The letters are placed on the feed tray to the right. The feed rollers pull the letter into the canceller. Once the letters exit on the left they are "fanned out" kind of like a pushed over deck of cards. as the letters continue through the machine the previously canceled letters are pushed to the rack at the left. As the letters overlap they can get an offset image from the letter under it. The is more pronounced and prevalent if the canceler is overinking.