The 1901 event considered the first major U.S. stock-market crash of the twentieth century was the Panic of 1901.
The crisis centered on a struggle for control of the Northern Pacific Railway. E. H. Harriman and James J. Hill opposed a group associated with J. P. Morgan and James Speyer, and speculation drove Northern Pacific shares to extraordinary levels. When traders rushed to cover positions, the stock briefly traded above $1,000 per share before plunging.
The corner produced violent losses in related railway shares and shook the New York Stock Exchange. J. P. Morgan helped stabilize the situation by arranging financial support and encouraging cooperation among major institutions. The episode showed how concentrated ownership and speculative short selling could threaten the wider market.
The Panic of 1901 is often overshadowed by the Panic of 1907 and the 1929 crash. Its importance lies in the railroad-centered market structure of the era and in the later creation of the Northern Securities Company.