Doesn't surprise me in the slightest. Lots of cities have such tunnels. Even some smaller towns that were around back then. The whiskey prohibition was huge business back in the day. My guess is they went between the train station and the hotels along 9th ave. Have any of you ever heard of the Tunnels of MooseJaw? Apparently they were used by Chinese railroad workers after the railroad was built and whiskey smugglers. They say Al Capone used them to smuggle booze from Canada down to Chicago via the Soo Line railroad which connected Moosejaw to Chicago. They offer tours of parts of the tunnels now because lets face it, what else does Saskatchewan really have? Anyway check it out.
http://www.tunnelsofmoosejaw.com/tours.asp