United Copper

United Copper

Company type	Public (traded on the curb)
Industry	Copper mining
Founded	1902 (1902)
Defunct	Template:End date and age
Fate	Entered receivership
Headquarters	Incorporated in New Jersey
Key people	F. Augustus Heinze

The United Copper Company was a brief-lived American enterprise in the copper mining sector during the early 1900s, recognized primarily for its involvement in the events leading to the Panic of 1907.

Incorporation

Established in 1902 by copper industry leader F. Augustus Heinze, United Copper was formed amid intense competition with Amalgamated Copper over prime mining assets in Butte, Montana. The corporation was registered in New Jersey with an authorized capital amounting to US$80 million. It unified Heinze's various interests, including The Montana Ore Purchasing Company, The Nipper Consolidated Copper Company, The Minnie Healy Mining Company, The Corra Rock-Island Mining Company, and The Belmont Mining Company.

At the time of its formation, United Copper's annual output was approximately 42 million pounds (19,000 metric tons) of copper, whereas Amalgamated's production reached about 143 million pounds (65,000 metric tons).

Shares of United Copper were traded "on the curb" outside the confines of the New York Stock Exchange, a marketplace that would eventually develop into the American Stock Exchange (AMEX).

Attempt to corner United Copper stock

Following resolution of legal conflicts with Amalgamated in 1907, United Copper became embroiled in controversy when Otto Heinze, brother of F. Augustus Heinze, sought to corner the market for United Copper shares. Holding a substantial portion of the company's stock, Otto assumed that a significant number of shares had been lent out for short selling purposes.

His plan involved aggressively purchasing shares to elevate prices sharply, thereby compelling short sellers to buy back shares at higher values—a tactic known as a "short squeeze." Nevertheless, Otto misjudged the extent of family control; short sellers managed to cover their positions by acquiring stock from alternative sources. Once this attempt failed, United Copper's share price plummeted dramatically.

This drastic decline precipitated bank runs on financial institutions owned by F. Augustus Heinze and triggered widespread anxiety among affiliated banks, playing a key role in sparking the Panic of 1907.

Decline and receivership

In 1908, F. Augustus Heinze faced indictment related to his role in the failed cornering scheme. United Copper's stock price never rebounded thereafter, and by 1913 the company was placed into receivership to facilitate liquidation of its assets.