Early in this same year, Patrick Henry, who, as already pointed out, had entered large tracts in Kentucky in violation of Virginia's treaty obligations with the Cherokees, united with William Byrd 3d, John Page, Ralph Wormley, Samuel Overton, and William Christian, in the effort to purchase from the Cherokees a tract of land west of Donelson's line, being firmly persuaded of the validity of the Camden-Yorke opinion.
Their agent, William Kenedy, considerably later in the year, went on a mission to the Cherokee towns, and upon his return reported that the Indians might be induced to sell.

When it became known that Judge Henderson had organized the Transylvania Company and anticipated Patrick Henry and his associates, Colonel Arthur Campbell, as he himself states, applied to several of the partners of the Transylvania Company on behalf of Patrick Henry, requesting that Henry be taken in as a partner.

It was afterward stated, as commonly understood among the Transylvania proprietors, that both Patrick Henry and Thomas Jefferson desired to become members of the company; but that Colonel Richard Henderson was instrumental in preventing their admission "lest they should supplant the Colonel [Henderson] as the guiding spirit of the company." Fully informed by Preston's elaborate communication on the gravity of the situation, Dunmore acted energetically, though tardily, to prevent the execution of Henderson's designs.

On March 21st Dunmore sent flying through the back country a proclamation, demanding the immediate relinquishment of the territory by "one Richard Henderson and other disorderly persons, his associates," and "in case of refusal, and of violently detaining such possession, that he or they be immediately fined and imprisoned.

This proclamation, says a peppery old chronicler, may well rank with the one excepting those arch traitors and rebels, Samuel Adams and John Hancock, from the mercy of the British monarch.