 The 1907 panic began with a stock manipulation scheme to corner the market in F. Augustus Heinze 's United Copper Company . Heinze had made a fortune as a copper magnate in Butte , Montana . In 1906 he moved to New York City , where he formed a close relationship with notorious Wall Street banker Charles W. Morse . Morse had once successfully cornered New York City 's ice market , and together with Heinze gained control of many banks — the pair served on at least six national banks , ten state banks , five trust companies and four insurance firms . 
