On 27 August 1774, Richard Henderson, a judge from North Carolina, organized a
land speculation company with a number of other prominent North Carolinians. Originally called Richard Henderson and Company, the company name was first changed to the Louisa Company, and finally to the Transylvania Company on January 6, 1775. The Transylvania Company investors hoped to establish a British
proprietary colony by purchasing the Kentucky lands from the Cherokee who had earlier settled much of the south and southeastern Kentucky areas and still claimed hunting rights in the abandoned Shawnee lands.
Treaty of Sycamore Shoals (a.k.a. Watauga Treaties) In March 1775, Richard Henderson and Daniel Boone met with more than 1,200 Cherokee at
Sycamore Shoals (present day
Elizabethton in northeastern Tennessee). Present were Cherokee leaders such as
Attakullakulla and
Oconostota. With five grant deeds that constituted the Treaty of Sycamore Shoals, Henderson purchased all the land lying between the
Cumberland River, the
Cumberland Mountains, and the
Kentucky River, and situated south of the
Ohio River on March 14, 1775. Some adjacent land to the southeast, in Virginia and North Carolina, was also purchased. The land thus delineated, 20 million acres (81,000 km2), encompassed an area half the size of present-day Kentucky. Henderson and his partners probably believed that a recent British legal opinion, the
Pratt–Yorke opinion, had made such purchases legal. In fact, the Transylvania Company's purchase was in violation of both Virginia and North Carolina law, as well as the
Royal Proclamation of 1763, which prohibited private purchase of American Indian land and the establishment of any non-
Crown sanctioned colony. The treaty was disavowed by some of the chiefs. A dissident Cherokee chief,
Dragging Canoe, refused to sign, endorse, or obey the Treaty of Sycamore Shoals, declaring that "it is bloody ground, and will be dark and difficult to settle". It would prove to be prophetic, and subsequently Kentucky came to be referred to by the sardonic phrase,
dark and bloody ground. Dragging Canoe left the Sycamore Shoals treaty grounds and took those who were loyal to him and his way of thinking into southeastern Tennessee, near present-day Chattanooga. This group came to be called the "
Chickamauga" after the nearby creek of the same name. Dragging Canoe and this group went on to become the chief protagonists of the
Cherokee-American wars. ==Settlement==