In 1904, the Technocracy voted to eliminate the concept of luminiferous ether from the Consensus, a message to the Electrodyne Engineers to stay in line. Although the ether wasn't central to their methods, it was an important part of the ideology of the Engineers. They rebelled, and defected to the Traditions, taking a number of Technocratic secrets with them. Most of the remaining Utopians throughout the Technocracy joined them.
Throughout the Great War, especially whilst combating the depredations of former Electrodyne Engineer Czar Vargo, the Ivory Tower realized the need for subterfuge and guile, and thus created a sister-Methodology called the Operatives (picking up the Lightkeepers' Lantern). By the end of the War, the two groups combined became known as the New World Order.
During World War II, the Union largely supported the Axis powers. The idea of a regimented society appealed to many. The free flow of information the Adepts relied on, however, was mostly within the UK and North America. Thus the Virtual Adepts wanted to support the Allies while the Union as a whole supported the Axis — until the evidence of Nephandic influence became clear.
The Adepts were responsible for much of the communication with the Sons of Ether which led to the alliance between the Traditions and the Technocracy during WWII. Afterwards, many of the Adepts planned on leaving. This was further encouraged as Iteration X tried to prevent Adept Alan Turing from creating Virtual Reality. They parted with the Union in 1956, went into hiding for several years, and then formally joined the Traditions in 1961.
The Union was understandably upset. The Ascension War had begun.