Miles City, 1881 After the Battle of the Little Bighorn in 1876, the U.S. Army created forts in eastern Montana, including one where the north-flowing Tongue River flowed into the east-flowing Yellowstone River. The first fort was known as the Tongue River Cantonment or the Tongue River Barracks and was founded on August 27, 1876. A second, permanent fort was constructed on higher ground two miles to the west of the mouth of the Tongue and this became Fort Keogh. Fort Keogh started as a few rough winter cabins, but grew into a moderate sized western fort, from which its commander, General Nelson A. Miles, effectively brought the remaining "uncontrolled" Native Americans into subjugation during the last decade of the 1800s. Nelson Miles said that "whiskey caused him more trouble than the Indians" and, after tiring of drunken soldiers causing problems during the winter campaign, evicted the sutlers who provided "liquid stock" in the spring of 1877. Moving two miles due east of the Tongue River Cantonment, these early merchants founded the first Miles City. Although fondly referred to as "Milestown," the first post office and first official plat both called the town "Miles City.