In the fall of 1854 a disagreement arose in Kappa chapter of DKE at Miami University in Oxford, Ohio. Six of the 12 chapter members, led by Whitelaw Reid, supported one of the members for Poet in the Erodelphian Literary Society. Founder Thomas Cowan Bell, Founder James Parks Caldwell, Founder Daniel William Cooper, Founder Isaac M. Jordan, Founder Benjamin Piatt Runkle, and Founder Franklin Howard Scobey refused to vote for the nominee. Thus the 12 members of DKE were evenly divided on the issue.

The members' friendship grew distant, and, in an effort tomend things, Founder Runkle and his colleagues held a dinner in honor of the other 6 members. Whitelaw Reid was the only one who showed up, accompanied by Minor Millikin. Millikin introduced himself, saying, "My name is Minor Millikin; I live in Hamilton. I am a man of few words." Millikin decided the proper justice was to expel Founders Runkle and Scobey from the fraternity. Upon hearing this, Founder Runkle tossed his DKE pin on the table and said, "I didn't join this fraternity to be anyone's tool. And that, sir, is my answer."

The final meeting of the 12 active members DKE was held in Reid's room several days later. The meeting ended in considerable disorder, with 6 against 6 on all vital issues. While Founder Runkle and his associates were planning to form their own Fraternity, the parent chapter of DKE at Yale University levied "The Bull of Excommunication," resulting in the expulsion of Founders Bell, Caldwell, Cooper, Jordan, Runkle and Scobey from DKE.

Joined by non-DKE Founder William Lewis Lockwood, they 6 men organized a new Fraternity, meeting on the second floor of a building on the public square in Oxford, which is now considered the birthplace of Sigma Chi. Founders Runkle and Caldwell lived there, and there Founders Runkle and Lockwood designed the badge, exactly as it is today except for the letters Sigma Phi, which were later changed. After compiling the Ritual, Constitution and final plans, they announced the birth of the new Fraternity on June 28, 1855, Commencement Day at Miami University.

The Spirit of Sigma Chi expresses the chief reason for the confrontation with DKE. The Jordan Standard outlines the criteria by which men are found worthy of membership. The White Cross symbolizes the virtues and high ideals upon which Sigma Chi was founded and for which all member constantly strive.