57:(now Chennai) was hit by the worst financial crisis the city was ever to suffer. Of the three best-known British commercial names in 19th-century Madras, one crashed; a second had to be resurrected by a distress sale; and the third had to be bailed out by a benevolent benefactor. Macfadyen, one of the partners, engaged in speculation, in the process losing huge amounts of the firm's money. Prior to its collapse, Arbuthnots employed between 11,000 and 12,000 people, had 7,000 creditors and £1,000,000 in liabilities. It was ascertained that the liabilities of Macfadyen's were £400,000 and there were 1,000 creditors. It was agreed by the English trustee in bankruptcy and the official assignee in Madras that the assets of the two insolvent firms were to be treated as one and the same business, all creditors were to be entitled to share rateably in the pooled assets.
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Macfadyen committed suicide by throwing himself under a train in 1906, and both firms had to close their doors. Both
Macfadyen and Arbuthnot were consistently over-optimistic concerning their speculations. Arbuthnot was tried for the fraudulent activities the collapse revealed, and received a
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106:"MADRAS BANK FAILURE. - SIR G. ARBUTHNOT IMPRISONED. LONDON, September 26. - the Advertiser (Adelaide, SA : 1889 - 1931) - 27 Sep 1907"
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who fought
Arbuthnot Bank on their behalf and obtained a compensation for them. Later, he was one of the founder-directors of
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which was founded upon the ruins of
Arbuthnot Bank.
125:"Pooling Arrangements in Cross-Border Insolvencies"
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153:Indian independence movement in Tamil Nadu
48:Indian independence movement in Tamil Nadu
64:The depositors approached eminent lawyer
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158:Economic history of Tamil Nadu
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53:In the last quarter of 1906,
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123:Knights, Samantha (2004).
27:Fall of Arbuthnot & Co
168:1906 in British India
178:1906 crimes in India
112:. 27 September 1907.
66:V. Krishnaswami Iyer
32:Arbuthnot Bank crash
18:Arbuthnot Bank Crash
34:led to the fall of
36:Arbuthnot & Co
40:Madras Presidency
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129:. Retrieved
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70:Indian Bank
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110:Advertiser
131:13 July
55:Madras
76:Notes
133:2020
30:The
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