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ken mc, The photo you are linking to is the original Texas Theatre along with the Texas Grill (notice the Texas Grill sign). My father was the owner of the Texas Grill when it burned and I was 16 years old at the time. He had no insurance and lost everything. He rebuilt it around the other side of the block on the corner opposite the Runnels County Courthouse. The sign was moved and is still there.
The previous pictures of the “Texas Theatre” are after the fire and are the old Palace Theatre renamed (it was originally for minorities). The suggestion that the fire started in the Grill are the first I have heard. I have always understood that local teens had played with fireworks in the theatre and later a smoldering seat broke into flames causing the fire.
BTW the business on the left side of the threatre was Daughteries Drug store before it became a beauty salon.
Any other questions, just ask. I was there.