The Panic of 1901 was the first stock market crash on the New York Stock Exchange, caused in part by struggles between E. H. Harriman, Jacob Schiff, and J. P. Morgan/James J. Hill for the financial control of the Northern Pacific Railway.
The stock cornering (having the greatest market share in a particular industry without having a monopoly). was orchestrated by James Stillman and William Rockefeller's First National City Bank financed with Standard Oil money. Harriman, who was chairman of the executive committee of the Union Pacific speculated heavily with Union Pacific holdings, and his attempt to monopolize the Chicago rail market led to the Panic.
The panic began when the market crashed during the afternoon of May 8. Investors did not see it coming, but by 1:00 pm, the decline in the market was beginning to show. First came the gradual decline in Burlington stock. It had been high all morning, but suddenly a sharp weakness came about. Prices of stocks such as St. Paul, Missouri Pacific, and Union Pacific began to fall. Soon enough, the whole market was drowning. Investors who had once held on tightly to their stocks were selling out of panic. Others caught on and an overwhelming cry of "Sell! Sell! Sell!" was heard throughout the floor of the New York Stock Exchange During the selling, a rumor spread among traders that Arthur Housman, broker for J.P. Morgan, had died. Housman, the head of A.A. Housman & Company, was brought to the floor of the New York Stock Exchange to assure traders that J.P. Morgan was still doing business........As a result of the panic, thousands of small investors were ruined.
As Paul Harvey would say.. "Now you know the rest of the story".
All Enjoy Your evening.
- Scoot
The stock cornering (having the greatest market share in a particular industry without having a monopoly). was orchestrated by James Stillman and William Rockefeller's First National City Bank financed with Standard Oil money. Harriman, who was chairman of the executive committee of the Union Pacific speculated heavily with Union Pacific holdings, and his attempt to monopolize the Chicago rail market led to the Panic.
The panic began when the market crashed during the afternoon of May 8. Investors did not see it coming, but by 1:00 pm, the decline in the market was beginning to show. First came the gradual decline in Burlington stock. It had been high all morning, but suddenly a sharp weakness came about. Prices of stocks such as St. Paul, Missouri Pacific, and Union Pacific began to fall. Soon enough, the whole market was drowning. Investors who had once held on tightly to their stocks were selling out of panic. Others caught on and an overwhelming cry of "Sell! Sell! Sell!" was heard throughout the floor of the New York Stock Exchange During the selling, a rumor spread among traders that Arthur Housman, broker for J.P. Morgan, had died. Housman, the head of A.A. Housman & Company, was brought to the floor of the New York Stock Exchange to assure traders that J.P. Morgan was still doing business........As a result of the panic, thousands of small investors were ruined.
As Paul Harvey would say.. "Now you know the rest of the story".
All Enjoy Your evening.
- Scoot