It was all part of the campy Dr. Silkini & Company touring stage show, which was headed by the namesake doctor character and featured various monsters, ghosts and horror scenes, along with some interaction with the audience. Sometimes the show featured a name monster like Frankenstein, other editions of the show apparently had different themes. But Dr. Silkini was the guy who held it all together with his various assistants.
It looks like it was a lot of good, clean fun.
Below is a vintage theater promotion for another edition of the Dr. Silkini show, this time featuring Garganta, the giant Gorilla of the Universe. Give it a click – it's hilarious.
Here's a link to a blog that has some promotional stills from the Asylum of Horrors edition of the show. And here is a pretty good history of the whole Dr. Silkini concept, written by someone who caught the Asylum of Horrors show as a kid and then caught the show decades later. According to this writer, it's still touring – so maybe it will make a return engagement at the Palace someday!