Schmidt stared at it because he knew it had belonged to his superior officer - who was now missing. As for the significance of it, i guess it reflected the change in fortunes of both sides. Robert Vaughn loses the bridge and his cigarette lighter - both to George Segal. Also, George Segal has spent the whole movie moaning about Ben Gazzara looting dead bodies - but when he sees the case he finally picks something up himself. But maybe he picks it up he is also doing it in tribute to the young dead blond GI that died trying to pick it up himself.
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