The story is that the song recalls a sheriff’s raid at Bard College located in Annandale on Hudson, New York where Steely Dan members Donald Fagen and Walter Becker were among fifty students who were arrested. Although the charges were dropped, Fagen and Becker held a grudge against the event and immortalized it in song.
The fantastic guitar leads were provided by Jeff “Skunk” Baxter who later joined The Doobie Brothers. These days Baxter chairs a congressional committee on missile defense. No kidding.