Union Company

The Union Steam Ship Company of New Zealand, also known as the Union Company, Union Steam Ship Company (USS Co), or Union Line, was once the biggest shipping line in the southern hemisphere and New Zealand's largest private-sector employer. It was founded by James Mills in Dunedin in 1875.

James Mills had worked for Johnny Jones and his Harbour Steam Company. After Jones’ death in 1869, Mills floated the Union Company in 1875 with backing from Scottish shipbuilder Peter Denny in return for orders for his Dumbarton shipyard. The Union Company became a major shipping line, with a near-monopoly on trans-Tasman shipping, and was referred to as the "Southern Octopus".

From 1889 there was a three-way competition between the Union Steamship Company, Huddart Parker and the Tasmanian Steam Navigation Company (TSNCo) on the Tasmanian routes (Melbourne – Launceston, Hobart – Melbourne and Hobart – Sydney). The TSNCo did not have other routes to absorb their Tasmanian losses, and was bought out by the USSCo in 1891. The rivalry between the USSCo and Huddart Parker lasted to 1895 despite an earlier agreement in 1893. There was undercutting by cheap fares and steamers shadowing each other from port to port. The USSCo Rotomahana and Mararoa would sail alongside the Miowra and Warrimoo, with other ships e.g. the Te Anau and Manapouri sailing before and after so bracketing the Huddart Parker ships. The 1895 agreement between the two lines pooled the Auckland-Sydney profits and losses; the Melbourne-Launceston profits were divided 4/7 to the USSCo and 3/7 to Huddart Parker; and the Sydney-Hobart passenger trade was excluded but the cargo and stock trade was divided 2/3 to USSCo and 1/3 to Huddart Parker.

In 1897 Mark Twain criticised travel conditions on a Union Company ship in his travel book Following the Equator.

By 1914 the Union Company had 75 ships. It was the biggest shipping line in the southern hemisphere and New Zealand's largest private-sector employer. Mills sold the company to the British Peninsular and Oriental Steam Navigation Company (P&O) in 1917. Mills was knighted in 1907 and K.C.M.G. in 1909. He was a UK resident from 1907, and died in London.

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