Hello Bryce, thank you very much for that. Now I'm even more intrigued. As I mentioned, the two vertical lines on the far left of the bag indicate what is written on the mei. Or, that would be the normal interpretation of the words prefacing those two lines;
銘曰 (mei iwaku)(picture below)*. Your translator has translated this word as "Iron speaks" which is a mistranslation. It literally means "The mei says...". The problem is, those following two vertical lines on the bag are completely different from the mei on the sword. The lines on the bag read, as I mentioned, like Chinese couplets or quatrains or something, but they have nothing to do with the mei, from what I can tell.
So, other than the first line (This sword, a Gassan Sadakazu work, is a family treasure), and the date, the rest of the writing is rather enigmatic. I can see how your translator arrived at some of the phrases, but for me it seems a bit too florid. It feels a little off to me, but maybe the writer was trying to be poetic. A couple of the connecting words and phrases are slightly hidden by folds in the cloth, so maybe a clearer shot would help make the preceding part make more sense (to me, anyway).
*I just wrote about this phrase in another thread, where I mentioned that it was a phrase only used by Kazutaro Torigoye. It's appearance here is a very interesting coincidence.