"...half a decade after the Panic, railroad construction in the Union had begun to recover, with three competing railroads headed west to challenge the Union Pacific Railroad now ramping up construction, buffeted primarily by Canton Chinese immigrants who toiled in near-slavery. A crucial difference in 1875, though, was that railwork in the West was now under siege by Indians stirred by the bloody campaigns of the infamous Custer and other Army officers under the guise of "clearances." An ugly massacre in what is today Idaho that spring left forty-seven Chinese dead and their unique queues scalped. Though the US Army didn't retaliate specifically over the deaths of mere Chinamen, the incident was one of many that led to one of the ugliest episodes in American history at the Missoula Massacre that autumn, where close to seven hundred Indians, mostly women and children rounded up over the summer campaigns, were summarily murdered over a weekend, with Custer's cavalrymen often competing for who could perform the most barbaric tasks.
Less grim, perhaps, was the story of the Central Pacific Railroad, which by the mid-1870s successfully connected all of California. Also built on the backs of poor Chinese laborers, as well as free blacks often fled from the Confederacy, the CPR ran from San Diego through Los Angeles, to its major interchanges in Oakland and Sacramento, and then north. By the early 1880s it would extend all the way through the Willamette Valley, connecting the West Coast north to south.
The most important event of the mid-1870s as far as railroads went, though, and perhaps one of the most important episodes of the incipient labor movement in the United States, was the Great Railroad Strike of 1875, which began with employees of the Baltimore and Ohio Rail Road [1] in Bellaire, Ohio [2] tipping over locomotives, blocking off the railyard and in one instance even ripping up tracks and ties and knotting the steel up. Word of the strike spread by telegram, an innovation that allowed news to rapidly cross the country and inspired thousands of other rail workers throughout the nation to go on strike.
Despite fears of a "Paris Commune" or a Hyde Park Riot as had occurred in Britain, President John Hoffman refused to use the army to crush the strikes as his predecessor Salmon Chase had nearly done, and told the Governors that their militias would have to keep peace if they so chose. In doing so, Hoffman was adhering to the Democratic Party's principle of state's rights - many of his Midwestern supporters had been lukewarm on the peacetime use of the Army during the Civil War, and this insurrection was nothing close to the rebellious secession of the Confederacy fifteen years earlier. Though economists now suggest that the work slowdowns, large strikes (though nothing on the scale of 1875, which stretched for five weeks before state militias and hired strikebreakers eventually broke them), and fear of labor unrest may have prolonged the Depression, the move was widely seen as being the first efforts at peaceable labor rights solutions in US history [3] and the beginnings of the ties of organized labor to the Democratic Party..."
- The Age of the Railroad
[1] Much like OTL
[2] Home of Buffalo Bill in Silence of the Lambs
[3] Obviously another huge butterfly