"Then personally, doctor, I have to say screw their sense of calm."
Teddy says this to Dr. Cawley after the doctor tells him they are providing a peaceful environment for the patients. Teddy doesn't believe they deserve calm as they are violent criminals who deserve punishment for what they have done.
"Is legal immigration a crime, marshal?"
Teddy was at the liberation of Dachau during World War II and saw what the Nazis did to people. Ever since then, he has been opposed to anyone who comes from Germany, as Dr. Naehring has. The doctor says this to Teddy to oppose his pointed accusation that Naehring himself is a Nazi.
"It wasn't warfare, it was murder."
Teddy remembers what he and the other American soldiers did to the German officers during the liberation of Dachau. They lined them up and killed every single one of them without trial. This statement of Teddy's shows that he knows what was done was not right.
"Right now, Marshal? We all are."
McPherson says these words after Teddy remarks that his men look tense. The line is an early clue that all of Ashecliffe's workers and patients are all in a tense conspiracy to get Teddy to break through his delusions.
"You act like insanity is catching."
Teddy says this as a joke to McPherson, given the precautions that McPherson seems to be taking when Teddy and Chuck arrive. Teddy does not yet realize that he is among the "insane" held at Ashecliffe.
"This is a mental hospital for the criminally insane, Marshal. 'Usual' isn't a big part of our day."
A nurse tells this to Teddy after he asks if anything "unusual" happened during Rachel's group therapy sessions. The line is a coded reference to the fact that the nurse is having to entertain a patient's delusion that he is actually a U.S. Marshals agent.
"Of course. He's a doctor."
Dr. Cawley delivers this dry line after Teddy incredulously asks how Cawley could have let Rachel's primary physician, Dr. Sheehan, leave on vacation. The line also suggests the kind of unilateral power that doctors have over the patients at Ashecliffe.
"Why are you all wet, baby?"
Dr. Cawley first recites this line to Teddy when he reaches the top of the lighthouse after he manages to swim to the lighthouse. Later, Teddy remembers saying these words to Dolores the day he came home to find that she had murdered their three children.
"They'll be our living dolls."
Dolores says this to Teddy after he finds that she has drowned their three children in a lake. Dolores's insanity, and her inability to grasp the heinous act she has just committed, prompts Teddy to kill her.
"Which would be worse: to live as a monster or to die as a good man?"
These are Teddy Daniels's last words of the film, which suggest the two alternatives he seems to have before him, and the two moral sides of himself that the film presents. Scorsese ultimately suggests that Teddy goes willingly toward his own lobotomy.
