Can't say anyone had decorative bags for holding the rolls...I do remember a big nail with squares of newsprint poked on. When growing up in the late sixties/early seventies in Western Australia, there was an interesting idea that emerged from the local ladies, and these items would be for sale at every fete or church/school fundraiser. I will try and describe them...as I have never owned one (I found them unappealing to put it mildly).
A doll about the size of a Barbie would be purchased..A skirt would be constructed usually knitted or in crochet, this would be a big bell shape (to cover the spare roll), then a bodice would be made, the doll was then dressed and popped over the spare roll, most times the legs were left intact and they slotted into the tube. Some creative types would then give her a bonnet or a parasol or add copious amounts of lace.....she would then sit on the tank or a handy shelf. The skirt and bodice was usually made of that lurid nylon ribbon, easier to wash I guess.
If you google "toilet roll doll" there are a heap of patterns and images.
Think I would much prefer "privy bags"!