After the defeat in the Battle of Fetterman, the ongoing guerrilla warfare of the Sioux, Cheyennes and Arapaho, the exorbitant freight rates in the area, and the difficulty of finding contractors for the railway lines, the U.S. government organized the Indian Peace Commission to negotiate the end of the ongoing hostilities.   A government-elected peace councillor arrived at Fort Laramie, later, wyoming, on April 19, 1868. The result will be the second Treaty of Fort Laramie, signed in 1868.  :2 The Treaty of Fort Laramie was born out of the war in the northern plains. Led by Chief Red Cloud, the Sioux and their allies Cheyenne and Arapaho defeated U.S. Army divisions and prevented wagon trains from crossing the Dakotas to the Wyoming and Montana regions. With its submissive soldiers, the United States sent peace commissioners to reach an agreement. .