This comes from the days before F77 when doubles and integers were used for storing characters. From the format statement, this is probably from a CDC which could store 10 six bit characters in each word. Double precision was two words so it was two lots of 10 characters. If you change the code to
CHARACTER(LEN=20) VARIABLE
READ(1,10) VARIABLE
10 FORMAT(A20)
It should work. There isn't a lot of information about on CDC compilers. I've never tried using a namelist with one so I can't really comment about it. Try http://bitsavers.trailing-edge.com/pdf/cdc/cyber/cyber_70/chippewa/Chippewa_Fortran-Run_Apr66.pdf