Green’s Dictionary of Slang

blue goose n.

[? like shit through a goose under shit n.]
(US)

1. the general convict cage at a prison camp.

[US] ‘Jargon of the Und.’ in DN V 439: Blue goose, The convict cage.
[US]Irwin Amer. Tramp and Und. Sl. 31: Blue Goose.—The general cage or cell, shared by all the prisoners, in a convict road camp or on a chain gang. Also, the general room in a prison or jail from which access is had to the cells. The open mesh or steel barred sides of this enclosure, through which small articles may be thrown, is responsible for the expression, ‘Like mud through a blue goose’, which indicates any swift or easy passage through a town or district.

2. a small, run-down café or bar.

[US] in DARE.

3. an establishment where liquor is sold illegally.

[US] in DARE.