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What, exactly, is this? A lunch hour piece?
The Indian figure is a logo used by the Red Wing sewer pipe company. The Indian is carrying a section of sewer pipe. The mug appears to be modified Town & Country coffee mug and was likely made of the same clay used to produce sewer pipe. Not sure of the time frame but it was made no earlier than 1947 (when T&C was introduced) and more likely sometime in the 1950s or 1960s.