Carolina Theater was built in the summer/fall of 1934 but was not officially in business until Christmas Eve of the same year opening as a live stage or motion picture theater. The structure had state of the art sound projectors with a seating capacity of 746, 460 on the main floor and 243 in the balcony with 43 seats available for black patrons. The theater also offered new air conditioning with two (2) 25 ton units new at this time. The structure was built by Carl V. Cline and then was leased to John F. Miller, President of Hickory Amusement Company until 1945. After the death of Carl Cline, his estate sold the property to family members forming Cline Realty which included several other properties, who, in turn leased the theater to Colonial Theaters of Valdese , NC around 1947.