Some more info from Barbara Anderson:
" ..in the early 50s, Knorr put into operation the disfellowshipping arrangement in a way that was not known previously. It was because of a sexual scandal that involved Bethelites. There is a Kingdom Hall, the Brooklyn Heights Congregation, in the 107 Columbia Heights building, which building houses hundreds of Bethelites. Neighborhood Jehovah's Witnesses attend meetings at the Brooklyn Heights Congregation as well as many Bethelites. In and around 1953 or '54 (and I've forgotten the exact date, which my husband knows, but he's not home for me to ask), a number of young Bethelites who were assigned to the Brooklyn Heights Congregation were engaged in wife-swapping with couples who were not Bethelites, but who lived in the area. When the fat hit the fan, so to speak, Knorr was furious. That's when he used DISFELLOWSHIPPING and cleaned house."