PMTT debentures

As can be seen by the graph below, the PMTT was highly leveraged during its existence, relying on borrowings almost entirely until 1914-15 to fund its expansion. No further amounts were borrowed from 1915-16, and further development of the network and assets was derived from income, as can be seen by the growth in capital value. The other notable development was the substantial increase in depreciation allowances from 1915-16 to the end of the Trust period, taken out as a hedge against price increases driven by the First World War, and to retain surpluses within the Trust that might otherwise have had to be disbursed to its constituent municipalities, with the objective of retaining this money for post-war development of the network.

PMTT capital, borrowings and depreciation. Source: PMTT annual reports PMTT capital, borrowings and depreciation, 1909-10 to 1918-19.
Source: PMTT annual reports.

Below is an image of a Prahran & Malvern Tramways Trust 500 debenture, guaranteed by the municipalities of Prahran, St Kilda, Malvern and Caulfield. Debentures like this were the primary capital-raising mechanism for construction of the PMTT tramways system. Note the signature of the Chairman, Alex Cameron, who would later become the first Chairman of the Melbourne & Metropolitan Tramways Board. This particular debenture is held by Public Record Office Victoria.

PMTT debenture. Source: Public Record Office Victoria