This came from an old magician’s estate. Supplied with the gimmicked needle and a regular one to match along with the original instructions.
Effect: Spectator threads a piece of thread on a needle and knots the ends together. Magician inserts the needle into his jacket. The spectator holds the tied ends of thread.
Now amazingly the magician reaches inside his jacket and brings out the needle free from the thread.
The spectator pulls out the thread, completely intact, and with no needle on it!