The picture of the chip in Dale's book is from one of my 4 chips. I bought dozens of chips from Dale for my collection. I'm sure Dale was mistaken about the 1886 date. Check the blowup below. It is definitely 1896. That would be the only date Dale had to go on. Also, the chip is not a paste on. It is definitely inlaid, just as Roy's chip is inlaid. Unfortunately there is a slight lifting due to the use of dissimilar materials used in the inlay sandwich.
As I've mentioned before, USPC got the chip making process right around 1911 until they stopped making chips in the late 1940s. Your single flag is an examkple of getting the chip making process right.