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In the mean time the troubles between the Indians and the settlers had become aggravated from divers causes. Prominent among these was the fact that Georgia had by act of her legislature disposed of 3,500,000 acres of vacant land lying south of Tennessee River to the Tennessee Company. This association undertook to effect a settlement in the year 1791 at or near the Muscle Shoals.71 The matter coming to the notice of the Secretary of War was made the subject of a strong protest by him to the President.72

The latter issued his proclamation forbidding such settlement. The company persisted in the attempt, and as the President had declared such act would place them without the protection of the United States, the Indians were left free to break up and destroy the settlement, which they did.73