I am not sure if this water color image is prior to the previous 1912 photo, but I believe it is after.  I have seen this same image in black and white in a book.  

The book says,  "That there is a cobbler's bench and a booth for curios.  The owner is utilizing such portions of the ruin as are still stable as part of a tenement house he is building.  When reproached for thus obliterating a historic relic he blandly offered to leave it in its former state, provided he were paid a rental equal to that the tenement would bring in.  There being no society for the preservation of historic places in Panama his offer went unheeded, and the church is fast being built into the walls of a flat house."
Panama and The Canal by Willis J. Abbot

This is very disturbing to hear how no one cared in those times for the preservation of such a historical old ruin.  This is why all the grand old walls you see in the first two photos of this presentation are gone today.