The 1901 U.S. market panic caused by the Northern Pacific Railway struggle was called the Panic of 1901.
The episode began when rival groups led by financier E. H. Harriman and industrialist James J. Hill, alongside interests associated with J. P. Morgan, competed for control of Northern Pacific Railway. Speculation drove Northern Pacific shares sharply upward.
On May 9, 1901, the stock collapsed after traders who had sold shares short were squeezed and then buying support disappeared. The resulting panic spread to other railroad securities and caused heavy losses on the New York Stock Exchange.
The event is distinct from the Panic of 1907, which involved a later banking crisis and helped inspire creation of the Federal Reserve. Both panics were U.S. financial disturbances, but their immediate triggers and dates were different.