Great article and nice explanation. I believe this describes “Algorithm R” in this paper from Vitter, who was probably the first to describe it: https://www.cs.umd.edu/~samir/498/vitter.pdf
That paper says “Algorithm R (which is a reservoir algorithm due to Alan Waterman)” but it doesn’t have a citation. Vitter’s previous paper https://dl.acm.org/doi/10.1145/358105.893 cites Knuth TAOCP vol 2. Knuth doesn’t have a citation.
Knuth also says that "Algorithm R is due to Alan G. Waterman", on TAOCP vol 2 page 144, just below "Algorithm R (Reservoir sampling)". This blog post seems to be a good history of the algorithm: https://markkm.com/blog/reservoir-sampling/ (it was given by Waterman in a letter to Knuth, as an improvement of Knuth's earlier "reservoir sampling" from the first edition).
> All in all, Algorithm R was known to Knuth and Waterman by 1975, and to a wider audience by 1981, when the second edition of The Art of Computer Programming volume 2 was published.