The Paddy Wagon could have equally been a reference to the fact that many NYC cops were Irish, so it may not have been a slur implying that the criminals were all Irish, in that context. A billy club has the same origin, William, Billy or Liam for short, is a common Irish name, and certainly not because it was used to beat Irish criminals, although I'm sure it was used for the Irish, as well as the Italian and Black "criminals", as well.
True story: Back in the 1970's, an friend's Irish, NYPD Lieutenant, uncle (one of many in the family) replied, when I asked him what the deal was, with NYPD having so many Irish cops,
"If it weren't for the Irish, there wouldn't be 1/2 the police force. But then, if it wasn't for the Irish, we wouldn't need 1/2 the police force."
In my life, growing up in 60's-70's Brooklyn, and singing in an Irish Band, made up of American musicians, I have used the term Paddy in many songs and in reference to many Irish and Irish Americans friends and never was told it was a slur. Like most insults, it's the intention that defines the word. Words are not evil unto themselves.
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