The 1901 U.S. stock-market crisis caused by the failed attempt to corner Northern Pacific stock was called the Panic of 1901. The struggle involved rival financial interests seeking control of the Northern Pacific Railway.
On May 9, 1901, Northern Pacific shares rose dramatically as short sellers tried to cover positions and available stock became scarce. The price then collapsed, producing major losses and spreading distress through the New York Stock Exchange. The episode was one of the earliest major financial shocks of the twentieth century.
The Panic of 1901 is sometimes confused with the Panic of 1907 because both centered on U.S. financial markets and occurred during the same era. They were separate events. The later 1907 panic involved banking runs and trust-company failures, while the 1901 crisis was especially associated with railroad securities and a control battle over Northern Pacific.