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Upon closer inspection of the c1918 photo, that poster for “Queen of the Sea” may be an advertisement for the Busby Theatre in neighoring McAlester. Looks like the Palace is actually a cafe.
In this vintage snapshot the Caprice Theatre can be seen at the top of the hill. “Queen of the Sea,” starring Annette Kellerman, 1918, is playing at the Palace Theatre, also visible in this picture …
Caprice Theatre can be photo seen left …
A picture of the Opera House in Krebs can be seen on this website.