Fort McPherson was established none too soon, for it was in the following year, 1864, that the war with the Sioux and Cheyenne Indians commenced. This war continued for over five years and many emigrants and soldiers were killed.
What is now known as Lincoln county, was first organized as a county under the territorial government of Nebraska in 1860. Cottonwood Springs was made the county-seat. The following officers were elected: County commissioners—I. P. Boyer, J. C. Gilman and J. A. Morrow; judge—Charles McDonald; treasurer—W. M. Hinman. Instead of calling the county Lincoln, it was named "Shorter." Nothing, however, was done under this organization. Judge McDonald qualified and the only business was the marriage ceremony.
On September 3, 1866, a meeting was held and arrangements made to reorganize Shorter county under the name of Lincoln county. Under the reorganization, the following officers were elected: J. C. Gilman, W. M. Hinman, and J. A. Morrow were elected county commissioners; S. D. Fitchie, county judge; Wilton Baker, sheriff; and Charles McDonald, clerk. The county seat was at Cottonwood Springs. W. M. Hinman built a sawmill near Cottonwood Springs and did a large business. The Union Pacific railroad was then being constructed through this county and the cañons south of the Platte abounded with cedar timber, furnishing an abundance of material.
During November, 1866, the Union Pacific railroad was completed to North Platte and a town was laid out by the railroad company. The plat of the town was filed with the clerk of the county on January 31, 1867; a military post was established, and a garrison of soldiers was stationed here.
In 1867 the Union Pacific railroad began the erection of shops and roundhouse, North Platte having been designated as a division station. During the year 1867, a freight train was wrecked by the Indians. Several of the trainmen were killed and the train plundered and burned. In September, 1867, the Indian chiefs were all called to assemble at North Platte, where they were met by the commissioners appointed by the government to treat with them. These commissioners were General Sherman, General Harney, and John P. Sanborne, and a treaty of peace was entered into. During the stay of these commissioners, they were well entertained by the citizens of North Platte. The county-seat was moved from Cottonwood Springs to North Platte at an election held October 8, 1867. A total of twenty-one votes were cast. The officers elected were B. I. Hinman, representative; W. M. Hinman, county judge; Charles McDonald, clerk; O. O. Austin, sheriff; Hugh Morgan, treasurer, and A. J. Miller, county commissioner. There was no courthouse, and the records were kept at the home of W. M. Hinman, who had moved from his farm to North Platte. The first county warrant was issued in 1867. The first term of district court was held at North Platte in 1867, Judge Gantt then being the circuit judge for the entire state. July 1, 1867, the first levy on the Union Pacific railroad in Lincoln county was made on an assessed valuation of $49,000.00.
During this year, there was an Indian scare and settlers throughout the county thronged to the military parks at McPherson and North Platte, taking refuge in the railroad roundhouse at the latter place.
The first money collected from fines was that paid into the county treasury on February 1, 1868, by R. C. Daugherty, a justice of the peace, who fined a man $21.50 for stealing an overcoat.
The first school in the county was taught at North Platte during the summer of 1868. Theodore Clark was the first teacher. The next term of school began November 30, 1868, and was taught by Mary Hubbard, now Mrs. P. J. Gilman.
The first Sunday school in the county was at North Platte, and was founded by Mrs. Keith, Mrs. Miller, Mrs. Cogswell, and Mrs. Kramph. There were only three children in attendance.
During the year 1868, troubles with the Indians were on the increase. On one occasion, "Dutch" Frank, running an engine and coming round a curve with his train, saw a large body of Indians on each side of the road, while a number were crowded on the track. Knowing it would be certain death to stop, he increased the speed of his train and went through them, killing quite a number.