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I could certainly be mistaken, but I'd guess the handle covers are some type of synthetic material.
In 1904 George and his two brothers started the Schrade Cutlery Company.
That would have been under his company Press Button Knife Co started in the 1892-93 timeframe. All sold to Walden Knife Co in 1904.I thought George Schrade started making automatics/switchblades under the 'Schrade' brand some time in the 1880's or 1890's.
I'm also thinking that the covers are a composite material. But they may have been manually jigged, which is pretty cool in my book.