An apprentice, going about his work at around 9pm, on a vessel in the harbor, reported hearing a woman's voice ring out across the water. She was shouting, "Police, police! Murder, murder!". The young boy could very faintly observe a boat in the distance with two figures in it. The woman continued yelling, "You wretch! You will murder me!". Having no means of leaving his boat, and with a degree of helplessness, he yelled out to the pair, "Let the woman alone," but there was no response, and the couple faded from sight.
Another boy on watch duty on a different vessel also heard screams and, in the dim light, shouted out, hoping to scare the attacker, "What are you doing to the woman?". Surprisingly a voice from the darkness hissed back at him, "Never you mind – you have got some colonial in you! An olden time Australian insult.
Even across the other side of the water, screams for help had been so loud that the domestic servants of a notable residence, at Kirribilli Point, reported having heard similar cries.
On alert that some dark crime was taking place on the harbor underneath the pitch black of night, there was little anyone could do. The owner of a water taxi on the Circular Quay also noticed that his boat had vanished. Even more mysteriously, it had reappeared in its usual moorings when he returned later about 2 hours later at 11pm that same night.
The owner was furious as he noticed that the sail had gone missing. On closer inspection, however, indications of foul play became apparent. Despite evidence that someone had made some attempt to clean the boat up, the timbers of the boat were quite saturated in blood with red splash marks located on the mast. There was little to do except report the news of his bloodied boat to the water police.
At 7am early the next morning, a group of boys arrived by boat into Circular Quay and reported that they had seen the body of a woman floating amongst the rocks. The body was duly recovered and conveyed to the morgue at Circular Quay.
A post-mortem examination began, and the body, despite presenting a sickening spectacle, was identified as Mrs. Lee's. There was a very long list of wounds all over the body and limbs, and in the opinion of the medical gentlemen, these were inflicted during the final moments of the poor woman's life.
The police began to trace her movements the night previous. When she left her son-in-law's company, instead of going home, it seems she was seen in company with a waterman named Thomas in the Orient Hotel enjoying brandy and beer before the two left together.
The prospect of saving some coin may have prompted her to accept an offer of passage from Thomas. The savings would allow her to enjoy another round or two of drinks before retiring for the evening. For the waterman, it was a rare chance for some paid work after experiencing some lean times.
Thomas was about 45 years of age, a seller of fruits, and a licensed waterman. He was described as a miserable and sickly looking man, with matted hair and beard, and of mean stature and appearance. He was addicted to drink and when in that condition, was said to become quarrelsome and given to fighting. Thomas was a Rocks resident, had a wife and six children, but had mostly been living on the kindness of others of late.
Still, on the same morning as when the body was found, the water police knocked on his front door and asked him to account for his whereabouts the previous evening.
He admitted to taking the boat without permission, but he had returned it to its rightful place, although no-one was about on his return.
He had taken a woman, Mrs. Lee, across the harbor the previous evening, but had landed her at Milson's Point. No-one else but himself had seen her land, and that he knew nothing about the blood in the boat. After dropping her home, he came straight back to Circular Quay.