Penguin Industries made pen flares used by the Military. It is likely a launcher and several flares.   You should be able to feel the shapes through the packing.  If it feels anything like the launcher and flares shown below, you have your answer. The launcher is around 4" long and the flares about 2" long. The flares could be loose rather than in a bandoleer like those below.   The Air Force packed a lot of items like that in the mid to late 1960's and early 70's.

John those are just beautiful patches! Ken 

If the sight has I R Co or H in a shield on the right side, it could be a factory placed sight. 

Aloha,   Man, I'm trying my damnest to remember your name but it escapes me at the moment and don't even want to insult you by calling you Dan or Don something like that!   So, after our re-introduction, can you tell me what I have here.  I image that they'd serve as good trade bait.  I did find a few others too but I can't tell what is what with the exception of a couple.   Mahalo,   John Patton     

Hello from Spain  Just I found this interesting thread about this maker and I wanted to add pics from my M1895 Officer forage cap with buttons from Minnesota Militia State.   Thanks   

Maybe a GI bought it, PX or local Store in the town etc

Reversed Subdued 5th Army of the late 60s into 70s worn, an OC Officer, a 1st Lieutenant Crist, note how he trimmed his Rank and Branch of Service collar to the edge of insignia, 

Howdy, I am actually a collector of German imperial orders and decorations, but also the US representative for ratisbons.com. We recently got an incredible collection of badges and decorations containing among many other cool items a selection of US wings, that git me interested in this topic. Anyway, thanks for letting me join.  

Stunning patches!

Here is this one: