In the fall of 1854 a disagreement arose in Kappa chapter of Delta Kappa Epsilon at Miami University, Oxford, Ohio. This chapter consisted of 12 men. Six of them, lef by Whitelaw Reid, supported one of the members for Poet in the Erodelphian Literary Society. Four of the other six members, James Parks Caldwell, Isaac M. Jordan, Benjamin Piatt Runkle and Franklin Howard Scobey, refused to vote for the brother because they knew him to lack poetic abilities. The man they did favor was not a Deke. Thomas Cowan Bell and Daniel William Cooper were not members of the Erodelphian, but their relation to the disagreement was unqualified endorsement of the four. Thus, they became six.

The chapter of 12 was evenly divided in a difference of opinion that ordinarily would have been decided easily one way or another. But both sides considered it a matter of principle, and could not reach a compromise. During the ensuing months their friendship grew distant.

Chapter meetings occurred for months with the breach constantly widening. A dramatic dinner meeting at a restaurant in Oxford in February 1855 set the stage for Sigma Chi's founding. Bell, Caldwell, Cooper, Jordan, Runkle and Scobey hosted the event, hopingto mend ways with the other six. In the words of Benjamin Piatt Runkle, "They did not come for a long time, and then only Mr. Reid and a stranger. He took into his confidence Minor Millikin (from nearby Hamilton, Ohio) and the two decided on strenuous proceedings."

Millikin introduced himself, then passed judgement on all of the matters in dispute. Since he had heard only one side of the story, his verdict was against Runkle, Scobey and the others who had originally opposed election of the Deke. Millikin found them guilty.

Next, Millikin unfolded a plan he and Reid had concocted by which "justice" would be satisfied with the formal expulsion of the leaders in the rebellion. At the moment Runkle stepped forward, pulled off his Deke pin, tossed it upon the table and said, "I did not join this fraternity to be anyone's tool. And that, sir, is my answer!" The six stalked out of the room.

A rather prolonged correspondence ensued with the parent chapter of Delta Kappa Epsilon at Yale, resulting in "The Bull of Excommunication" in April 1855, expelling Bell, Caldwell, Cooper, Jordan, Runkle and Scobey. It was at this time they began making plans to found their own fraternity.

One of the best moves these six ever made was to associate themselves with William Lewis Lockwood. He had entered Miami early in 1855 but had not joined a fraternity. He was the "businessman" of the group and possessed a remarkable organizing ability. More than any other founder, he was responsible for setting up the general plan of the Fraternity, much of which endures today.

During the latter months of the 1854-1855 college year, Runkle and Caldwell lived in what is known as the birthplace of Sigma Chi (or Sigma Phi, as it was originally called). Having been members of Delta Kappa Epsilon, six were familiar with the general outline of fraternity constitution and ritual content. With plans formally completed, the seven founder announced its establishment by wearing their badges for the first time in public on Commencement Day at Miami University, June 28, 1855.