a torn diary page at 637, -20, 284 (the former alchemist shop) - you'll have to fight through four crazed Freebloods to get to it
The text of the page says, "Today I saw my friend Dariun hauled off like a criminal. He was such a kind and gentle person. The Freeblood look like they are being set up!"
torn diary page at 652, -25, 356 (the former bank/inn) - one crazed Freeblood will run in and attack you
The text of the page says, "This morning Paliun looked fine. He was happy and jovial. He went to see an investigator then I saw him in the streets attacking residents. I know this Freeblood, he would never hurt anyone without outside influence. Something is definitely wrong here."
Speak to Investigator Rashlas, in the prison at 657, -25, 351 . Be ready for a fight and be careful using AoEs!
All of the guards will now be aggressive to you, but if you have sneak/invis you can bypass the rest on your way out.