Here's a couple more verses or variations thereof. The versions we sang started:

I was standing by her side
The day poor Maggie (Nellie) died
She handed me her little red flannel drawers
They were buttoned at the top
For two bits they always drop
Those little red flannel drawers that Maggie wore.

They were baggy at the knees
The crotch was full of cheese
Those little red flannel drawers that Maggie wore
I put them on the shelf
And they walked off by themself
Those little red flannel drawers that Maggie wore.

I've searched the net for a definitive version of this classic to practically no avail. Come on Mudcatters, let's round out a decent selection of verses.