In 1866, in searching for a short route to Montana and Idaho, the government took possession of the Powder River and Big Horn country, along the mountains, where gold is said to abound. A regiment of soldiers was ordered, under Colonel Carrington,--the 18th Regulars,--to open up a road and build forts for protection. He went up by Fort Laramie, an old trading-post, situated on the North Platte River; from there he laid out one that shortened the distance from Omaha to Virginia City, Montana, three hundred miles. The colonel founded three forts, one on Powder River, one at the crossing of the Big Horn, and one on Tongue River. They were named Fort C. F. Smith, Fort Reno, and Fort Phil. Kearney,--after distinguished generals. These cost about six hundred thousand dollars. As soon as it reached the Indians that their country was to be occupied by the whites, Red Cloud claimed the whole portion all along the Big Horn Mountains, and sent word to them that the Indians would kill all they met. Notice was sent to the government that if the soldiers did not withdraw north of the Platte, he would declare war. Of course no attention was paid to this, and the colonel went on to open roads, strengthen posts, and patrol the country. Some skirmishes took place between small bands of Indians and parties, but no fight of much account occurred till fall. In October it was said that Red Cloud had given orders for all the Sioux to meet and prepare for war, and next month it was reported he was marching at the head of three thousand warriors. This the government as usual was slow to believe, and gave no heed to it. But early in December the Indians became troublesome along the Powder River country, and Red Cloud's policy was seen to guide them. The wily chief had planned the movement so as to strike a hard blow and capture Fort Kearney, and murder the garrison. PHIL. KEARNEY MASSACRE. Red Cloud collected all his warriors near the fort, and concealed them in the hills. Watching his opportunity, he surrounded and attacked a small party sent out against him from the post. As he expected, when the attack was made known, the gates of the fort were thrown open, and the main portion of the soldiers--cavalry and infantry--marched out to rescue their friends, corraled by the Indians. As soon as he got them where he wanted, in the hills, he surrounded them with his three thousand warriors, and cutting off all chance of retreat, massacred every one of them! So sudden was the surprise, that the battle was over before a reinforcement could go out, and the commander at once closed the gates and remained in a state of siege, to protect those who were not slaughtered. In the Phil. Kearney massacre there fell three officers, forty-nine infantry, twenty-two cavalry, and two citizen employes, with Colonel Fetterman, the officer who led them.