The Panic of 1901 followed a failed attempt to corner the shares of Northern Pacific Railway.
The struggle involved financier E. H. Harriman and a group led by James J. Hill and J. P. Morgan. Speculators bought Northern Pacific shares aggressively, driving the price upward. When traders who had sold the stock short rushed to cover their positions, the market became extremely volatile. On May 9, 1901, Northern Pacific shares fell sharply, helping trigger a broader Wall Street panic.
The episode damaged several railroad and financial companies, although the resulting disruption was shorter than the severe panics of 1893 or 1907. The contest contributed to a later settlement between major railroad interests and helped shape the Northern Securities combination.
It is easy to confuse this event with the Panic of 1907, which centered on the failed United Copper corner and led to J. P. Morgan's rescue effort. The two panics had different triggers and occurred six years apart.