Union Company

Union Steam Ship became a major shipping line dubbed "The Southern Octopus" with a near-monopoly on trans-Tasman shipping.[1] It steadily mopped up trans-Tasman and coastal shipping businesses including Anchor, Canterbury Steam, Richardson & Co and Holm.

From 1889 there was three-way competition between Union Steam Ship, Huddart Parker and Tasmanian Steam Navigation Company (TSNCo) on the Tasmanian routes (Melbourne – Launceston, Hobart – Melbourne and Hobart – Sydney). TSNCo did not have other routes to absorb their Tasmanian losses and was bought out by USSCo in 1891. The rivalry between USSCo and Huddart Parker lasted to 1895 despite an earlier agreement in 1893. There was undercutting of fares and there were steamers shadowing each other from port to port. USSCo's Rotomahana and Mararoa would sail alongside the Miowra and Warrimoo, with other ships like the Te Anau and Manapouri sailing before and after and 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 USSCo and 3/7 to Huddart Parker. 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.[3] Mark Twain criticised travel conditions on a Union Company ship in 1897 in his travel book Following the Equator.

Mills was a UK resident after 1907 and died in London in 1936. By 1914 Union Steam Ship had 75 ships. It was the biggest shipping line in the southern hemisphere and New Zealand's largest private-sector employer.[1]

Union Steam Ship Company's 3,721 ton MV Kaimiro loading cargo in Lyttelton, New Zealand, in 1968

Union in conjunction with Holyman's Airways and Huddart Parker set up an airline across Bass Strait which began business in September 1934. In 1935 they added Adelaide Steamship Company as a partner in the venture which was renamed Australian National Airways the following year.[9]

Union took up a 20% interest on the formation of Australian National Airways in 1936.[9]

In 1935 Union Airways of New Zealand was formed by Union Steam Ship and it built an air service through New Zealand. Union Airways was nationalised by the government in 1947 and renamed National Airways Corporation.[9] Union Travel remained a substantial operation as travel agents and tour operators.

Union was instrumental in establishing this business in particular by buying the first three flying boats which began operations in April 1940. TEAL became Air New Zealand.[9]

During World War II, Falla returned to the army with the rank of brigadier. He was later based in London as New Zealand representative on the Ministry of War Transport. He joined the main board of P&O in 1944. On his way back to New Zealand aged 62 he suffered a cerebral haemorrhage and died at sea 6 November 1945.[9]

Union Steam Ship began regular sailings between Wellington and Lyttelton in 1895 with the Penguin making two round trips a week. In 1905 this became a daily service year round. In 1933 the name "Steamer Express" was adopted for the service.[15] Over the years a number of ships were used, including two Maoris, two Wahines, two Rangatiras, and a Hinemoa.[16]

TEV Wahine entered service in October 1966 and foundered and sank at the mouth of Wellington Harbour 18 months later in April 1968. The TEV Rangatira entered service in 1972 and was withdrawn in 1976, bringing the Wellington–Lyttelton "Steamer Express" to an end.[15]

Tamahine, built in 1925 and scrapped in 1962

In what has been described as "a fatal mistake",[17] the Union Steam Ship announced in 1956 that the Tamahine was to be withdrawn from the Wellington-Picton route in 1962 and unlikely to be replaced (despite an offer of a $3 million government loan).[18] The designer of the replacement ferry the GMV Aramoana recalled that, "The media said the whole thing was a red herring", adding, "In their view, if the Union Steam Ship Company couldn't make the service pay, Railways definitely couldn't."[19]