The status of the lands held by the Indians had now become a matter of serious concern, As has been stated, the deeds had been made out by Thomas in his own name, as the state laws at that time forbade Indian ownership of real estate. In consequence of his losses during the war and his subsequent disability, the Thomas properties, of which the Cherokee lands were technically a part, had become involved, so that the entire estate had passed into the hands of creditors, the most important of whom, William Johnston, had obtained sheriff's deeds in 1869 for all of these Indian lands under three several judgments against Thomas, aggregating $33,887.11. To adjust the matter so as to secure title and possession to the Indians, Congress in 1870 authorized suit to be brought in their name for the recovery of their interest. This suit was begun in May, 1873, in the United States circuit court for western North Carolina. A year later the matters in dispute were submitted by agreement to a board of arbitrators, whose award was confirmed by the court in November, 1874. The award finds that Thomas had purchased with Indian funds a tract estimated to contain 50,000 acres on Oconaluftee river and Soco creek, and known as the Qualla boundary, together with a number of individual tracts outside the boundary; that the Indians were still indebted to Thomas toward the purchase of the Qualla boundary lands for the sum of $18,250, from which should be deducted $6,500 paid by them to Johnston to release titles, with interest to date of award, making an aggregate of $8,486, together with a further sum of $2,478, which had been intrusted to Terrell, the business clerk and assistant of Thomas, and by him turned over to Thomas, as creditor of the Indians, under power of attorney, this latter sum, with interest to date of award, aggregating $2,697.89; thus leaving a balance due from the Indians to Thomas or his legal creditor, Johnston, of $7,066.11. The award declares that on account of the questionable manner in which the disputed lands had been bought in by Johnston, he should be allowed to hold them only as security for the balance due him until paid, and that on the payment of the said balance of $7,066.11, with interest at 6 per cent from the date of the award, the Indians should be entitled to a clear conveyance from him of the legal title to all the lands embraced within the Qualla boundary. [442]