The warships in the front might be from the 1908 visit of the Great White Fleet or from a visit to mark the first Golden Potlatch in 1911.
Unlike the other two images in the panorama, this one has "water" spelled correctly.
The color and brightness of the three images do not quite match, and this one does not have dark areas in the sky. It may have taken several minutes for Otto to set up each photo using glass plates: put in a ground glass plate to frame the image, take an unexposed plate out of a lightproof case, replace the ground glass with the unexposed plate, take the photo, and put the exposed plate back into the lightproof case. Passing clouds and drifting smoke could have affected the brightness of the sky.