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 While parties were preparing for the struggle, and while Parliament was officially drawing the session to a close, there happened an entirely unforeseen event. It upset all preparations, but it had a great influence on the future of the Liberal Party and the history of New Zealand.

The colony woke up one morning late in August, 1890, to find, to its astonishment, that it had been dragged into a maritime strike, which had been declared in Australia some weeks previously. Without its consent, and without even its knowledge, the colony was led into the bitterest industrial struggle the Australasian colonies have experienced. All the bad feeling between employers and workers in New Zealand, which had been accumulating for years, and had found only occasional means of escape, now came to the surface. It was an industrial war pure and simple. Very few colonists had the slightest idea how the colony came to be involved in it. Even many of those who took an active part in the strike did not know exactly why they were “called out;” and if the people were asked to-day how it was that they entered the strife they would be unable to give a satisfactory reply. Several different causes were in operation. The Union Steamship Company at that time almost monopolised the intercolonial trade of the colony, and had the lion’s share of the coastal trade. Although the company was mainly owned in Europe, it had always been in close touch with the colony’s affairs. It had never taken advantage of its monopoly to exploit those whom it employed; and it gave the public as good a service as could be expected—quite as good as it would have been forced into by the severest competition. All the seamen, firemen, cooks, and stewards employed by it were Unionists. None of the officers, however, had joined the Union up to the year of the strike.

About five years previously, the company joined an Australian Association of Shipowners. It was really forced into this action, as it feared that if it did not join the association, its monopoly would be interfered with by the Australian shipping companies. Up to the time of its joining that association, there was no Officers’ Association, but afterwards an Officers’ Association was formed, and it affliated with the Maritime Council.