"brutal initiation, act of abusing a newcomer," 1848, said to be a college word ("This word is used at Harvard College, to express the treatment which Freshmen sometimes receive from the higher classes, and especially from the Sophomores" -- "Collection of College Words and Customs," Boston, 1851), but perhaps originally nautical; see haze (v.).
The thing is older than the word. Compare pennalism "exceptional tyrannical hazing of college freshmen by older students at 17c. German Protestant universities," from German pennal (from Latin) "a pen-case;" also "a freshman," so called for the cases they dutifully carried to lectures.