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Hotel, built in 1897, is the third hotel on the  Anderson,  local  miner's  son,  had  his  first  ballroom, with a small platform serving as a
        site,  and  was  designed  by  Vahland's  pupil,  employment in theatre. He was a programme  stage  and  bandstand.  In  1890,  the  land
        Phillip Kennedy. The first hotel was built on  seller at the age of ten. Anderson went on to  between  the  adjacent  fire  station  and  the
        the site in 1854, and was known as the Royal  produce  The  Squatter's  Daughter,  On  Our  existing building was purchased. As a result,
        Exchange.                           Selection, and similar Australian plays, most  the western wall was opened up, and a stage
                                            of  which  were  performed  in  Melbourne's  and orchestra pit were added to the existing
        Around the same time as he was working on  Kings  Theatre,  of  which  he  was  the  first  hall. The extended facility became known, in
        the  Masonic  Temple,  Vahland  was  also  lessee. He also went on to be involved in other  turn,  as  the  Masonic,  New  Britannia  and
        involved in the designing of the magnificent  theatres  and  to  build  Wonderland,  an  early  Capital (originally spelt Capitol) Theatre. It
        Royal  Princess  Theatre,  almost  opposite.  amusement park, on the cliffs above Sydney's  opened on 4 April 1880, with two 2-act plays,
        This  was  a  three  level  theatre  holding  an  Tamarama Beach.       Checkmate  and  Bardwell  v.  Pickwick,  a
        audience  of  2,000.  Incidentally,  the  Royal                         comedy and courtroom drama, respectively. It
        Princess  is  where  Bland  Holt’s  rival  as  the  What  is  now  the  Capital  was  originally  continued to be used for plays, concerts and
        ‘King  of  Australian  Melodrama’,  William  designed  as  a  flat  floored  concert  hall  and  dancing,  with  regular  vaudeville  shows  and
                                                                                the occasional operetta.
                                                                                In  the  late  1920s,  a  bio  box  was  added,
                                                                                allowing  the  Capital  to  compete  with  the
                                                                                Lyric  Theatre  nearby,  itself  said  to  be  the
                                                                                first  purpose  built  cinema  in  Australia  for
                                                                                picture patrons. The Capital, competing with
                                                                                the Royal Princess, which was converted to a
                                                                                two level cinema in 1936, and the up-to-date
                                                                                Plaza  as  well  as  the  Lyric,  was  the  poor
                                                                                relation as a cinema and, by 1952, its major
                                                                                use was again as a live theatre, and home for
                                                                                the  Bendigo  Operatic  Society,  which  later
                                                                                became the Bendigo Theatre Company. This
                                                                                group used the theatre until 1977, when it was
                                                                                closed  to  the  public  by  order  of  the  Health
                                                                                Department as a fire risk.
                                                                                Few were sad to see its passing, as the stage
                                                                                facilities  were  primitive,  there  were  'dead
                                                                                spots` in the auditorium, and the theatre, being
                                                                                flat  floored,  had  poor  sightlines  for  stage
                                                                                shows. In a word, the place was decrepit. The
                                                                                closing  of  the  theatre  caused  the  Bendigo
                                                                                Theatre  Company  and  visiting  artists  to
                                                                                perform in schools and sports stadiums.

                                                                                The fact that, by this time, the Royal Princess
                                                                                had been demolished, and there was no other
                                                                                suitable  performing  arts  venue  in  the  city,
                                                                                added to a critical report by the Arts Council
                                                                                in 1971 of the lack of stage facilities, causing
                                                                                the  community  to  demand  something  to  be
                                                                                done  about  it.  By  1974,  following  similar
                                                                                comments by the Australia Council, the State
                                                                                Government offered funding for a performing
                                                                                arts venue. Several sites, including the Plaza
                                                                                Theatre,  were  considered  and  rejected.
                                                                                Finally,  after  much  in  the  way  of  "maybe  -
                                                                                maybe not", several local councils (but not the


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