This is one of the most long wearing, neat forms of ruffle I have seen.
It is also a very period finish and does take some patience to do properly as the pressing and seaming needs to be done accurately.
However for those special dresses it is quite worth the effort, as no hem shows on the outside and the lining makes it crisp and long wearing.
Two pieces of fabric are cut one will be the outside of the ruffle and is cut of fashion fabric- the other is a lining fabric and should be something that is relatively thin and will press crisply- a stiffened muslin, chintz, polished cotton, or even a poplin will do nicely.
The lining piece will be cut to the desired finished ruffle width and the fashion fabric will be cut 2.5 inches wider than that.

Align the two lengths of ruffle and lining along the bottom edge-
Make sure to place them Right sides together.

Press open along this seam, pressing the seam allowances back toward the fashion fabric. This will leave the lining piece flat.

Grasp the edge of the lining and fold it back over so that the wrong sides of the fabric are together, and the lining is still flat.
This will make a 1/2″ edge of fashion fabric showing.
 

Fold the edge of the fashion fabric back over the raw edge of the lining fabric. This should not bend or fold the lining fabric but the fold of the fashion fabric should be just at the edge of the lining.

Press in place
(this bottom edge shown will actually be the top edge of the ruffle as it is applied to the skirt)

Notice that this does leave a raw edge- this will not ravel badly as long as it is attached to the skirt firmly- This edge may be finished with an overcast if you wish, but is usually not on period dresses.

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