Interesting thread. I have no clue, on what Meerschaum bone is, in relation to Schrade knives.
Although I've never really been a pipe smoker...when I was stationed in Turkey, I picked up a few Meerschaum pipes. Labor was cheap and you could pick them up at fractions of what they cost, in the States. They are valued for their light weight, cool burning and artistic value. As they are used, they take on an amber color, much like the dark chess pieces below.
Mike, you are right on Meerschaum being a mined "mineral"; although, it is of organic / sedimentary origin; basically found in a single region of Turkey. I don't know about the time-frame that the knives were made...but, Meerschaum, now, can't be exported in "raw" form. It is protected, to protect the artisans of the region. In the front, of the top picture...you can see two pieces of raw meerschaum.
I'm sure you could make handles from it; but,It would probably break and chip much easier than bone. Smoothed areas are very slick to my touch and probably wouldn't make a good handle for a working knife. It certainly could be jigged. Smooth, it would probably look good on a gentleman's knife...approaching ivory in appearance.
I don't know it's ability to absorb dye...the dark chess pieces appear to be "torched". From the non-detailed, black and white advertisement...I'd place my doubts on it being real meerschaum.
I've never seen the word "meerschaum" used as a color. In today's truth-in-advertising world...I don't think it would pass the "muster" test. It certainly leads you to believe it's meerschaum.
Personally, I think the best selling point is that they are : "impressivly gift boxed in true "he-man" fashion."