This song is about a whorehouse. Many people in Texas knew about it, but when the song was released it drew so much attention to the illegal activities going on there that they had to cease operations.
"The Chicken Ranch," or Miss Edna's Boarding House in La Grange, was probably the oldest establishment in Texas, catering the the oldest profession. It was closed down by a zealous TV reporter from Houston, who couldn't find enough vice and corruption to report in Houston. He challenged the governor on the issue of why it continued to operate in fairly plain sight. The governor had no choice but to order the sheriff to close it.
Miss Edna's girls had weekly visits from the local doctors, so they were "clean." The girls spent their money in La Grange and when a new hospital was needed, Miss Edna gave the first and largest donation. The reporter remained on the air crusading against such hideous crimes such as slime in the ice machines of restaurants.
Most of the building still stands, only a room was moved to Dallas for a nightclub. A "Ten to get in" was the price. There was a strict dress code for patrons - only sharp dressed men
were allowed in. (thanks, Gary - La Grange, TX)