JohnT14808: Actually, telegraph poles cropped up as fast as the railroads did–so while they weren’t technically “telephone” wires, the “talking wire” was already up and running, even in fairly remote places.
Cars or trucks, no, but plenty of horses and wagons and other horse-drawn conveyances.
Paved streets? Yes, paved in cobblestone. Mud/dirt streets provide their own challenges to model.
Four-story buildings? Certianly possible, and definitely probable if the ralroad stops in towns of any serious size–and plenty of towns grew to serious size shortly after the railroad’s arrival.
I suppose that if you dislike building and detailing structures, then you could always model a stretch of mainline in the proverbial “middle of nowhere”, but you could do the same thing and use a modern-era layout–ride Amtrak through Nevada or Utah sometime, there are plenty of places where the only sign of human habitation is the train you’re riding and the track it’s running on.
Modeling the 1870s certainly does not exclude cities, cobblestone-paved streets, talking wires, and lots and lots of ornate, gingerbread-covered Victorian buildings, detail-rich backwoods shanties, rip-roaring Western towns with every cowboy cliche’ featured, from the town drunk stumbling out of a saloon to ladies of the evening beckoning to the railroadmen from the second story of the red-light district.
The Panic of 1873 wasn’t so much due to the overbuilding of railroads (but the Panic of 1893 was, among other things.) In 1873, railroad executives ran out of people to sell bonds to, starting with the Northern Pacific, and so the value of their stocks plummeted.
Oh yea, another reason why more people don’t model the 1870s: knuckle couplers weren’t in general use, so you kind of have to “handwave” their presence on your layout (or assume that your railroad was particularly forward-thinking in terms of safety.) Link-and-pin couplers are a royal pain in HO scale…