Finally got over to my friend's house for a little more research. Yes, the token is from a saloon (see attached). It was opened in 1901 as a partnership between Carl Sweeny and 'Doc' Worley (I don't think he was a doctor). By 1904 it was only listed as Sweeny's property. 320, 322, and 324 were all part of this establishment which included a restaurant. Located above in the same building (address 322 1/2) was a hotel also run by Sweeny in 1904.
Newspapers back then really covered a lot of 'news', often gossipy/sensational. There was so much competition between many competing newspapers that they were going out of their way to one-up each other. Both Sweeny and Worley were later in the courts with business issues (Sweeny accused of allowing illegal gambling and Worley for selling alchohol at a different location without an up-to-date license). Both had marital problems which were gleefully documented by the local rags.
Ebay had two or three listings for the token when my sister and I searched 3 weeks ago (confirmed by Mike), varying in asking price from ~$20 to $75, the latter being the poorest conditioned of those choices.
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