The 1901 United States stock-market panic that followed the Northern Pacific Railway corner was the Panic of 1901.
The episode began when rival groups led by James J. Hill and Edward Harriman competed for control of Northern Pacific Railway. Speculators bought shares aggressively, and the available supply became extremely limited. On 9 May 1901, Northern Pacific common stock rose from about 70 dollars to 1,000 dollars before collapsing, producing severe losses for short sellers and other traders.
The corner spread fear through the New York Stock Exchange and affected related railroad securities. Banks and brokers faced pressure as participants tried to meet obligations created by the violent price movement. The panic was brief compared with later economic depressions, but it showed how concentrated ownership and leveraged speculation could destabilize a major exchange.
The Panic of 1901 is often confused with the Panic of 1907. The earlier event centered on a railroad-stock corner, while the later crisis involved bank runs and trust-company failures.