That is normal and why the spacer is there. I believe at one time bikes used to have the long horizontal dropouts to allow the wheel to placed at different locations owing to they type of RD used and to some extent tire size. "Normal" derailleur bikes require the axle to be over the central pivot point of the RD so they are placed very forward on the dropout.
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“One morning you wake up, the girl is gone, the bikes are gone, all that's left behind is a pair of old tires and a tube of tubular glue, all squeezed out"
Sugar "Kane" Kowalczyk