The Army and Navy Club. “The rag,” of course, is the flag.
“‘By the way, come and dine to-night at the Rag,ʹ said the major.”—Truth, Queer Story, April 1, 1886.
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Entry taken from Dictionary of Phrase and Fable, edited by the Rev. E. Cobham Brewer, LL.D. and revised in 1895.