The 1901 U.S. stock-market panic triggered by the Northern Pacific Railway corner was the Panic of 1901.
The crisis developed during a struggle for control of the Northern Pacific Railway. Investor groups associated with E. H. Harriman and James J. Hill competed with interests linked to J. P. Morgan and others. Speculators bought Northern Pacific shares aggressively, creating a short squeeze when available stock became scarce.
On May 9, 1901, Northern Pacific shares collapsed after briefly reaching an exceptionally high price. The turmoil spread to other railroad securities and produced heavy losses, although major banks helped prevent a broader banking collapse. The event exposed how concentrated ownership and speculative trading could destabilize the market.
The Panic of 1901 is distinct from the more severe Panic of 1907, which led to calls for monetary reform and eventually helped inspire the creation of the Federal Reserve. The 1901 episode was primarily a railroad-stock confrontation rather than a general economic depression.