No, not sleeve valve - just a mechanically-operated exhaust valve at the side of the cylinder, and an atmospheric inlet valve (just sucks open when the piston descends) above it.
The device in the rear hub is either a clutch hub or a two-speed gear. There was a "new" ROC two speed hub shown in 1907, which was said to much lighter and neater than the old one, so perhaps a 2-speed ROC was available in 1905. Bicycles had various 2-speed devices - mostly based on epicyclic gear trains - from the late 1890s so a 2-speed gear on a motorcycle would be unusual, but not impossible. I'm pretty sure that the NSU 2-speed gear in the front pulley was available in 1905. As r points out, some pretty good minds at work!
Cheers
Leon