George and Marshall Mallory then erected yet another building on the site, for actor-director-playwright
Steele Mackaye who had produced a few shows in the small hall in 1879 under a name they kept, the
Madison Square Theatre. Mackaye's famous stage technology improvements included the "double stage", an elevator the size of the full stage that was raised and lowered by counter-weights and reduced scene changes to one or two minutes from five or more. The double stage required the builders to excavate an extra-deep foundation. Ventilation featured a primitive form of air conditioning, with cool air drawn in from the roof and circulated to perforations under the seats. To increase stage-room for action and house-room for seats, the orchestra was in a balcony above the stage, and the conductor received "cues by means of electric signals and reflectors." Interior decoration was meant to evoke an intimate drawing-room, with imitation-mahogany trim, gold and pale colors, Shakespeare illustrations, and a
Tiffany-designed drop curtain that burned in an otherwise uneventful fire a few weeks after the reopening.