New questions about old suspension

I'm currently upgrading my old 83' xr500 by putting some 87' cr250 fork on it (damper to cartridge fork conversion).

Please bear with me because I'm very new to the suspension thing. I've changed seals before but now I'm wanting to learn how all this stuff works.

When I opened the fork up I was expecting to find some little cartridge deal with shims on it (my understanding from reading, pictures, and things of the sorts). Well I'm not finding anything that resembles that.

Here's a schematic of the exact fork set I'm working with.

Where does the "magic happen":) I'm not really sure where the "cartridge" is. Or was it completely different in the older technology.

Any help understanding this would be greatly appreciated!

12 is the cartridge tube

22 the rod with midvalve

17 the base valve

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