UPDATE!
I found some info about this badge, The local newspaper the Waterbury Republican-American sent me this.
Dear Mr. Pape and Mr. Pesino,
On September 14, 1926 a delegation of 325 members of the Harrisburg Chamber of Commerce visited Waterbury and they were hosted by the Waterbury Chamber of Commerce. The Pennsylvania delegation was accompanied by the lieutenant governor of Pennsylvania. A parade, including the Mattatuck Drum Corps, greeted the Harrisburg group at the railroad station. Besides a tour of the city, the group was treated to a sheepbake at Hamilton Park. Although there is no mention in the articles of the badge you have in your possession there is no doubt it was made for the attendees of this event.
I hope this answers your questions. Please contact me if you need anything else.
Sincerely,
Michael C. Dooling
Librarian, Republican-American