Why are 318's low HP and torque?

Odd ball here. OK, my Step son lives across the road from a guy I been "scavenging" from, parts etc to see what he all has, in the midst of this, I see a truck frame, nothing on it, just a frame, with a motor, and transmission.....

The guy, tells me that its a Ram, with a 318.....SO, I uncover the motor (it was covered with a tarp, and was clean looking on the outside of the motor, I did NOT hear it run) But anyway, this "318" did NOT look like any LA 318, I've ever seen, and it surely wasn't the 318 "Poly" either, with the saw-tooth, or scalloped edge valve covers....BUT it surely as a really odd looking 318 IF thats what it is! I can tell ya, its NOT an Mopar "LA" 318.....

What in the hell is this thing then? Tell me, that Chrysler made another "type" or model of the 318........? Can it be? The spark plugs almost look as tho they are turned into the heads, like a 245 straight 6 Hemi, but slightly angled toward the exhaust port.... Damn near vertically inserted into the head.....

Anyone shed some light to this?