The XIT, which conducted most of its business from Channing, was the town's chief customer until liquidation of the ranch in 1911. The local economy was severely impacted, although the real estate market temporarily thrived from the sale of XIT lands. A fire swept through the business district on September 6, 1931, destroying seven buildings including Hotel Rivers. By 1940, Channing had an estimated population of 475 with several businesses, a high school, and three churches. A restored XIT office building is located in Channing as a museum.