It would appear this was a cord used to stop a long dress getting caught in the rear wheel. This isn't something you could buy off the shelf as a specific item as very few would now actually cycle in such attire so I think it may be a case of improvising something. It seems they were from silk cord according to this old ad. I imagine similar cord can still be found today maybe in a specialist haberdashery.
Quite how they attached I don't know but some research should yield an answer.
As I understand it, dress cord is just sturdy yarn laced back and forth between something fixed near the rear dropouts on each side, over the mudguard and back.
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