The man with the lamb in his arms on Wikipedia

   OK, let me just take the meaning as it's actually written. L1: Something is in the hands of the lamb. Yes, it's a captive lamb, but the meaning is clear. L2: Because ‘shepherd' immediately follows ‘lamb', it must be the thing in the lambs hands. L3: Unclear whether the ‘his' refers to the lamb's shoulders or the shepherd's. L4-5: I assume you mean the lamb gummed in the manger. This entire stanza is clear. The rest seems to be about victimization of the masses by authorities - governmental (street signs) and corporate (power lines). What throws this off (for me, anyway) is S1. Perhaps you meant to say that the lamb is in the shepherd's hands?

Alcuin