There are a lot of discussions here concerning this particular form of the song. It seems to be the only one some people have heard (apart, presumably, from 'Streets of Laredo'), but that doesn't reflect its traditional distribution; it's because of the popular commercial arrangement by the Old Blind Dogs, which a lot of other revival performers (particularly in the US and Canada?) have subsequently taken up, perhaps because of the grotesque nature of the second verse.

'GUEST, eva (spain)' should read the other discussions linked to at the top of the page, many of which contain more useful information than this rather redundant one from 2004 that she happened to came across. So far as this particular form of the song is concerned, OBD got it from Peter Hall of the Gaugers, who in turn seems to have found it in the Grieg-Duncan song collection as sung by Alexander Robb of New Deer, Aberdeenshire, March 1906. In the printed collection it appears as 'Disordered' (vol VII, number 1404a, page 252). If that is the traditional source, then some fairly minor changes in wording have been made by Hall and/or Ian Benzie, together with the substitution of a new first line: Robb himself sang

One night as I walked thro' Caperally

The second verse is exactly as Mr Robb sang it. So far as I can tell in the time I can spare, that verse occurs in no other extant traditional example of the song.