P. Macfadyen

Patrick Macfadyen (16 May 1841 – 20 October 1906) was a Scottish businessman, banker and politician. He committed suicide in 1906 in London due to the crash of Arbuthnot & Co.

Early life

Macfadyen was born in Campbeltown, Argyll and Bute, Scotland, to Archibald Mcfadyen and Margaret McKinlay.

Macfadyen traded in West Indian sugar and owned businesses in Java. He even invested in railroads in the United States of America. Based on his connections in Madras, Macfadyen established P. Macfayden & Co., the London branch of the Arbuthnot Bank. That firm is still remembered for the pooling arrangements in cross-border insolvencies.

Business failure

In 1906, Arbuthnot & Co and P. Macfayden & Co. failed. P. Macfayden & Co. had liabilities of £1,044,952 (£ as of ), of which £412,034 was unsecured, and assets of only £25,530. Arbuthnot & Co. likewise had £1,783,333 in liabilities (£ as of ) and £474,000 in assets. The turnover was stated to be between £2–3 million per year.

Death

Macfadyen committed suicide on Saturday, 20 October 1906, at age 65, by walking into a railway tunnel in Shoreditch near the Old Street station, Islington, as a train was approaching. It is generally believed that on the morning of 20 October, Macfayden received a telegram from Madras stating "Cannot remit any funds. Money still going out. We must stop payment on Monday". At the inquest, however, other witnesses described Macfadyen as "completely unhinged" in his demeanour as he walked toward the train.

Ernest Wallace, manager of the firm, said he saw Macfadyen on the Saturday morning of his death, when he stopped by the office for approximately an hour. He was greatly worried about business matters and left a letter for him that stated, "October 20th – Dear Mr. Wallace, Enclosed from Arbuthnot and Co. is the last straw. I suppose must put down the catastrophe our endeavour to keep Arbuthnot and Co. going. Wills (solicitor) will advise you." He left a note for a female, which may or may not have been for his wife, who was in Australia at the time. Three months after his death, creditors had submitted 291 proofs of liability amounting to £282,340 (£ as of ).