Chased by her father, he drops the girl, who is then escorted home, whereas the lonely kidnaper dies of exhaustion. As Jane, in flagrant contradiction of what Francis believes to be the truth, insists on having recognized Cesare, Francis approaches Caligari a second time to solve the torturing riddle. The two policemen in his company seize the coffinlike box, and Francis draws out of it a dummy representing the somnambulist.
Profiting by the investigators’ carelessness, Caligari himself manages to escape. He seeks shelter in a lunatic asylum. The student follows him, calls on the director of the asylum to inquire about the fugitive, and recoils horror-struck: the director and Caligari are one and the same person. The following night — the director has fallen asleep — Francis and three members of the medical staff whom he has initiated into the case search the director’s office and discover material fully establishing the guilt of this authority in psychiatric matters.
Among a pile of books they find an old volume about a showman named Caligari who, in the eighteenth century, traveled through North Italy, hypnotized his medium Cesare into murdering sundry people, and, during Cesare’s absence, substituted a wax figure to deceive the police. The main exhibit is the director’s clinical records; they evidence that he desired to verify the account of Caligari’s hyphotic faculties, that his desire grew into an obsession, and that, when a somnambulist was entrusted to his care, he could not resist the temptation of repeating with him those terrible games. He had adopted the identity of Caligari. To make him admit his crimes, Francis confronts the director with the corpse of his tool, the somnambulist. No sooner does the monster realize Cesare is dead than he begins to rave. Trained attendants put him into a strait jacket.