Damage at the Palace Theater, Lansford, caused by a fire of unknown origin yesterday morning, is estimated at $200,000. The entire interior of the building, owned by William J. McDonald, was gutted and a large stock of new household furniture was completely destroyed. The building served as a storage area for the Ridge Center. Sgt. Joseph Delpero and patrolman Francis Karnish of the Lansford Police Department were patrolling in the area and heard an explosion when the doors of the building were blown open.