The resolution of the Dreyfus affair began with the decision of the Court of Cassation to annul the original 1894 conviction of Alfred Dreyfus and order a new trial. This decision was based on two "new facts": the attribution of the bordereau to Ferdinand Walsin Esterhazy and the secret communication of the "canaille de D..." document to Dreyfus' judges. The case was sent to a new court-martial in Rennes for retrial.

The Rennes trial, which began on 7 August 1899, was marked by intense public interest and military pressure. Despite evidence supporting Dreyfus' innocence, including Émile Zola's famous "J'Accuse…!" and the exposure of forged documents by Colonel Hubert-Joseph Henry, the court-martial again found Dreyfus guilty of treason. However, in a controversial decision, they cited "extenuating circumstances" and sentenced him to ten years' detention.

The verdict was met with international outrage and domestic turmoil. To quell the unrest, French President Émile Loubet pardoned Dreyfus on 19 September 1899, though this did not clear his name. The French government, led by Prime Minister Pierre Waldeck-Rousseau, passed an amnesty law in December 1900 to prevent further legal actions related to the affair. It wasn't until 1906 that Dreyfus was fully exonerated by the Court of Cassation, reinstated in the army, and awarded the Legion of Honour.

Trial of Esterhazy for forgery On the same day as this arrest the examining magistrate Bertulus, disregarding the threats and entreaties directed at him, on his own initiative (as an official note put it) sent Major Esterhazy and his mistress, Marguerite Pays, to prison on the charge of forgery and of using forgeries. He had become convinced that the "Speranza" telegram was the work of Madame Pays, and that they were not altogether innocent of the sending of the "Blanche" telegram. Then, when Bertulus had decided to send Esterhazy and his mistress before the Assize Court, the Chambre des Mises en Accusation interfered and gave them the benefit of insufficient evidence (August 12), and also declared that the complicity of Du Paty had not been sufficiently proved.

After being acquitted, Esterhazy was set free; but he did not come out of this troublesome adventure unscathed. Already, in his speech of July 7, Godefroy Cavaignac had announced that this officer would "receive the disciplinary punishments he deserved," and transferred his case to a disciplinary board. Before this board, presided over by General de St. Germain, Esterhazy, trying to avenge himself, made revelations which were most compromising for himself as well as for his protectors. He told of his collusion with the General Staff and of his threatening letters to the president of the Republic. Nevertheless, the board declined to find him guilty of having failed either in discipline or in matters of honor; they sustained only (and by a majority of one) the charge of "habitual misconduct." Notwithstanding a letter from General Zurlinden, military governor of Paris, recommending indulgence, Esterhazy's name was struck off the army lists by the minister of war (August 31).

The Henry forgery But just at this time an incident of far greater importance changed the aspect of affairs. Cavaignac, in spite of his self-assurance, had nonetheless been agitated by the doubts expressed on all sides as to the authenticity of certain documents in his dossier. In order to ease his mind he ordered a general review and a reclassification of the secret dossier. In the course of this operation , working by artificial light, noticed an alarming peculiarity in the "Henry document": the lines on the paper—which was ruled in squares—were not of uniform colour. When he looked at the document supplied by Lieutenant-Colonel Henry himself for comparison he found, by comparing the ruled squares, that the heading and the lower part of the document did not match, the note being a composite of two papers, one dating from 1894, the other from 1896. Much alarmed by his discovery, Cuignet apprised the chief of the cabinet (General Roget) and the minister, Cavaignac. The conviction of these two, hitherto unshaken by the nonsense and the improbability of the "Vercingétorix document"—as Esterhazy had called it—gave way before the mismatch of the squares ruled on the paper. Cavaignac, for motives still unknown, kept the matter secret for a fortnight. Then, as Henry was passing through Paris, he summoned him to the War Office and questioned him in the presence of Generals de Boisdeffre, Gonse, and Roget. Henry began by swearing that the document was authentic, then got entangled in confused explanations, suggesting that he had completed certain parts of it "from oral information"; in the end, conquered by the evidence against him, he admitted that he had forged the document. Generals de Boisdeffre and Gonse, who in 1896 had accepted this forgery without question, now kept a frigid silence. Abandoned by the chiefs who had tacitly driven him to the crime, Henry gave way entirely.

Suicide of Henry By order of the minister Henry was immediately put under arrest and confined at the prison of Mont-Valérien. The next day he cut his throat with a razor left in his possession, taking with him to the grave his secret and that of a great part of the "affaire" (31 August 1898). On the same day Esterhazy disappeared from Paris; it was known that he had taken refuge in Brussels, and then in London. Colonel Henry's admission gravely affected General Boisdeffre's position, for he had publicly proclaimed and affirmed to the minister of war the authenticity of the document. He immediately tendered his resignation as chief of staff and, despite Cavaignac's entreaties, insisted on its acceptance.

This double "coup de théâtre," at once made public, created a tremendous sensation at first. The enemies of revision were overwhelmed; it took days before they had sufficiently recovered to rally round the theory of a "patriotic forgery" advanced by a contributor to the Gazette de France, Charles Maurras. According to him, Henry had forged this document as a sort of summary for the public, because the "real proofs" could not be revealed without danger. This absurd theory (for if ever a document was intended exclusively for "internal use," this was it) was generally accepted by the Nationalists.

But public opinion had changed considerably, or was at least shaken. From here on, a revision of the Dreyfus case thenceforward seemed inevitable; the council of ministers investigated the matter. It was evident that if Colonel Henry had been obliged to forge a proof of Dreyfus's guilt in 1896, all elements of the dossier were suspect. Cavaignac refused to draw this inference—too honest to hush up Henry's forgery, he was too obstinate to retract his speech of July 7. He declared that he was more convinced than ever that Dreyfus was guilty, and tendered his resignation, which led to Brisson's firm decision to proceed toward revision (4 September).

Zurlinden succeeds Cavaignac

General Zurlinden, governor of Paris, accepted the vacant post of minister of war at the personal request of the president of the republic. He was an honest soldier, but narrow-minded; insults in the press did not fail to affect him. A revision founded upon the discovery of "new facts" could only be demanded by the keeper of the seals. As early as September 3 Madame Dreyfus had laid before him a request to take this initiative. She claimed two "new facts":

The experts' examination of the bordereau, which she was informed had not given the same results as in 1894. The confession of Henry's crime, which consequently annulled his all-important evidence against her husband.

As a result of this claim the keeper of the seals, Sarrien, demanded that the minister of war communicate to him the Dreyfus dossier. To the general surprise, Zurlinden sent it to him with a long notice unfavorable to revision.

Ministerial changes

After a prolonged discussion, the ministry decided to proceed and to lay the matter before the judicial commission, which they were bound to consult in such a case. Thereupon Zurlinden tendered his resignation, and was followed in his retirement by the minister of public works, Tillaye (17 September). Zurlinden was reinstated as governor of Paris; General Charles Chanoine inherited his position in the War Office, as well as the insults of the anti-Revisionist press. During his short term of office Zurlinden, with an impartiality that showed more uprightness than discretion, had implicated two of the principal actors of the drama. It resulted from Esterhazy's declarations before his board of discipline, and from an inquiry opened in consequence, that Colonel Du Paty de Clam had sided with Esterhazy before and during his action. Du Paty took upon himself all the responsibility for his conduct, and asserted that he had acted without reference to his chiefs; this was chivalrous, but only half true. In any case, the assistance thus given to Esterhazy was judged "reprehensible from a military point of view": Du Paty was retired and put on half-pay for punishment (12 September). After Du Paty came Picquart. Zurlinden, having become acquainted with his dossier, proposed to the council of ministers to arraign Picquart before a court martial on the charge of having falsified the note called "petit bleu." The only possible basis for such an accusation consisted in certain signs of erasure in the document which had not existed in the photographs taken of it in 1896. The council was reluctant to embark on these proceedings, but Zurlinden, acting as governor of Paris, presented to his successor, general Chanoine, a warrant of inquiry, which the latter signed without paying much attention to it. The reason for this haste was that the keeper of seals had asked Picquart for a "mémoire" on the fitness of revision; the military party was therefore eager to discredit his testimony by a charge of forgery. On 21 September, the day on which the case of Picquart and Leblois was brought before the "tribunal correctionnel" the state attorney demanded the adjournment of the affair, first, on account of the Dreyfus revision, which might modify the charge against Picquart; and secondly, on account of the new and serious accusation which had been brought against him. Picquart then rose and warned his judges and the public, saying: "To-night perhaps I shall go to the Cherche-Midi, and this is probably the last time that I will be able to speak in public. I would have the world know that if the rope of Lemercier-Picard or the razor of Henry is found in my cell, I shall have been assassinated. No man like myself can for a moment think of suicide." (Lemercier-Picard was one of Henry's agents, whose real name was Leeman, and who had probably been implicated in the forgery of 1896 and afterward hanged himself under mysterious circumstances from the window-fastening of a rooming-house.) The next day Picquart was taken from the civil prison of La Santé and enrolled on the register at the Cherche-Midi, where he was put into the strictest solitary confinement.

Some days later, the vote of the commission charged with giving a preliminary finding concerning a revision was made known: opinion was equally divided. This division legally inferred rejection, but the minister of war was not bound to accept the opinion of the commission. He wished, however, to shield himself behind a vote of the council of ministers. After four hours of deliberation it was decided, at the instance of Brisson, seconded by Bourgeois, that the keeper of the seals should lay the case before the Court of Cassation. Thus the proceedings for revision were definitely inaugurated (27 September).

Resignation of Brisson's ministry