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The "Bollwerk" is a fortified tower that was originally part of the medieval city wall of Mulhouse. It was built in the 14th century and modified several times over the centuries. The fresco dates from 1893 and commemorates the defense of Mulhouse against the attack by Martin Malterer in 1385.
Mulhouse suffered extensive war damage during World War II, which is probably why some of the houses are no longer standing.
Even at the time the old photo was taken, the tram seemed to be running right past the bulwark tower.