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P.S. The Katz posting, on April 1, 2004, is mistaken. The Merrill Auditorium—formerly called City Hall Auditorium, is behind City Hall, at 389 Congress St.
This theater was torn down in the early 1960’s, and replaced with a multi-storey parking lot. It was owned, at the time, by Casco Bank. Its President, Halsey Smith, had commissioned architects to prepare a plan to refurbish it, and the bank committed to spending about $250,000 to do the work. They sought a group who would commit to take it over, and be responsible for any operating losses. At the time—before the rise of awareness in the value of preservation—no one was interested, so the bank retreated, and had it torn down. Consultants from Actors' Equity in New York, said it had acoustics that could not be replicated. It was a real tragedy. It was beautifully decorated with plaster cherubs and intricate deatils.
Remnants of the decoration can still be seen in the surviving Preble Street entrance. Dick Paulson, March 31, 2005