Most serious was the Indian threat to the construction of the First Transcontinental Railroad routed through southern Wyoming. Although army forces had been augmented along the Bozeman Trail and at Fort Laramie in the wake of the Fetterman disaster, resources were still insufficient to take the offensive against the Indians. Peace negotiations conducted by the friendly Lakota chieftain Spotted Tail with Red Cloud initially seemed promising, but proved to be only a delaying tactic by the Indians. The Lakota held their annual Sun Dance in July, delaying the renewal of major hostilities.