Green’s Dictionary of Slang

rug cut v.

also rug
[cut the rug v.]

to dance; thus rug-cutting n. and adj.

[US] ‘Hectic Harlem’ in N.Y. Amsterdam News 8 Feb. sect. 2: RUG CUTTIN. – Participating in low-brow affairs [...] RUG CUTTIN’ SESSION. – A low brow party.
[US] ‘Sl. among Nebraska Negroes’ in AS XIII:4 Dec. 317/1: To rug is an indefinite term, meaning to engage in a number of pleasing activities.
[US]Flash! (Wash., D.C.) 21 Feb. 11/1: rug cut — A newly coined expression describing the apparently savage machination of the latest edition of the revision of the popular ‘Lindy Hop.’.
[US]F. Swados House of Fury (1959) 46: I want to have some fun before I get old, do some rugcuttin’ an’ go out with the boys.
[US]D. Burley Orig. Hbk of Harlem Jive 28: The cats grabbed the chippies, and St. Mick forgot, / And began some rug cutting, to music most hot. [...] Then he copped a quick trot to the smoke-hole once more, / As the Cats and the Chippies cut rug to the floor.
[US]L. Uris Battle Cry (1964) 27: Friday night rugcutting sessions to Glen Miller records.
[US]San Diego Sailor 65: Bud was doing a little restrained rug-cutting.