Patrick Macfadyen 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. On completion of his studies, Macfadyen started a business of his own.
Career
Macfadyen initially operated from Madras and achieved considerable success. He was nominated to the Madras Legislative Council for the terms 1874–75 and 1875–76. He was also elected as the President of the Madras Chamber of Commerce in 1875. In 1876, Macfadyen was appointed to the newly established executive committee of management of the Madras School of Arts. 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, of which £412,034 was unsecured, and assets of only £25,530. Arbuthnot & Co. likewise had £1,783,333 in liabilities 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 as a train was approaching. The bank had been required to remit a sum of £50,000 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. Several other business associates and old friends, including Sir Lewis McIver, testified at the inquest into Macfadyen's death with various stories about his recently distraught and altered behavior. The judge delivered a verdict of suicide while of unsound mind. Macfadyen's suicide and the subsequent claims on his estate by creditors received significant coverage in the British media. It was reported that his body was found "cut in pieces" and he had been decapitated. Bankruptcy proceedings determined Macfadyen had business liabilities of £400,000 and personal separate debt of £30,000. Three months after his death, creditors had submitted 291 proofs of liability amounting to £282,340.
