When this photograph was taken St. Moritz was still a fairly small, sleepy alpine town in stunning surroundings. This area of the Alps is truly beautiful, and the railroad that serves it is an astonishing feat of engineering that still offers exceptional views of the countryside.
Notice the band of haze. Air pollution problems arise with surprising ease in mountainous regions, which hold air masses captive during some types of winter weather. Even though there were almost certainly no automobiles in St. Moritz when this photograph was taken, the burning of firewood can produce quite high levels of air pollution, which may be what we are seeing here. Not all problems are modern!
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