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My understanding is that Cole lied.
He wasn 't completely truthful or forth coming with facts about the organization when recruiting new chapters. What he was, though, was a great sales man.
From my conversations with Dr. Dirghalli, it would seem that Cole planned on having these men join the fraternity, but he "created" the fraternity. Cole was completely written out of the Paedagogus for quite a few years. My 1966 Paed doesn't even mention him by name, only "the small group."
My $.02.
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