Chapter 3, "The Attitude Assumed Toward Competing Faiths", examines how Theosophy positions itself against other religious and spiritual systems. While claiming that all major religions share an identical esoteric core, Theosophists often criticize rival beliefs—especially Christianity—while favoring Eastern philosophies like Hinduism and Buddhism. Spiritualism, despite historical ties to Theosophy, is frequently dismissed as dangerous necromancy or misguided mediumship, though some later Theosophists softened that stance. Astrology receives mixed treatment, with some leaders embracing it and others calling it superstition. The chapter also highlights Madame Blavatsky’s sharp denouncements of biblical religion, which she accused of borrowing from Eastern sources and promoting degraded or phallic symbolism. Prominent Theosophists like Annie Besant and W.Q. Judge are shown defending Hinduism and Buddhism as purer and more profound, often portraying Jesus as a student of Eastern wisdom. Overall, Sheldon depicts Theosophy’s “universalism” as heavily tilted toward glorifying Eastern traditions while marginalizing historic Christianity.

Chapter 2, "Appraisal of Theosophy by Theosophists", outlines how Theosophy is defined and defended by its own adherents. The movement presents itself as an ancient, universal wisdom underlying all religions, revealed anew through the Theosophical Society. Its leaders claim that Theosophy offers a more complete and rational explanation of life’s mysteries than traditional faiths, harmonizing science, religion, and philosophy. The chapter covers key Theosophical doctrines—such as reincarnation, karma, spiritual evolution, and communication with hidden “Masters”—and explains how followers see these as reviving truths lost or obscured in mainstream religions. Sheldon also notes that Theosophists portray their system as morally elevating, intellectually satisfying, and historically validated by esoteric traditions worldwide .

Chapter 1, "Historical Outlines", traces the origins and early development of modern Theosophy, beginning with the founding of the Theosophical Society in New York in 1875 by Madame Helena Petrovna Blavatsky, Colonel Henry S. Olcott, and W. Q. Judge. It recounts Blavatsky’s mysterious past, her involvement in spiritualism, and her travels across the world, culminating in the creation of Theosophy as a new occult movement. The chapter details the society’s expansion into India, its flirtation with Hindu philosophy, and the scandals and schisms that followed—such as fraud accusations and leadership disputes—resulting in splinter groups under Olcott, Judge, and later Annie Besant. It also highlights prominent figures like A.P. Sinnett, C.W. Leadbeater, and Katherine Tingley, along with controversies over alleged immoral teachings. Overall, the chapter presents Theosophy’s beginnings as a mix of mystical ambition, charismatic leadership, and internal conflict.