I think these musicians that were executed in the movie ( and based on a real life incident) were either deserters or draft dodgers, so a hiding area near Mt.Sterling probably fits right in to that.
EDIT: OK, here it is. This is very close to the story presented in "Cold Mountain::
http://www.rodsguide.com/mt_sterling_hike.htm
"From Knoxville or Asheville, take exit 451 (Waterville) off of Interstate 40. Proceed to the extremely small township of Mt. Sterling (a little over two miles), where you will encounter a four-way intersection. Take a left and proceed 6.7 miles to Mt. Sterling Gap and the trailhead.
Mt. Sterling Gap is one of the more historic gaps in the Smoky Mountains. The most famous story associated with the spot occurred near the end of the Civil War. Captain Albert Teague was a confederate scout who spent most of his time keeping an eye on Union sympathizers in east Tennessee and western North Carolina. He also spent time watching for outliers (war deserters) of draft age. One fateful day, Teague captured three such outliers: George Grooms, his brother Henry Grooms, and a simpleton named Mitchell Caldwell. The three were forced to march on foot from Big Creek to somewhere in the vicinity of Mt. Sterling Gap (the actual location varies from one account to the next). Henry Grooms, a talented fiddle player, had been forced to carry his fiddle during the long march. His captors commanded him to play one last tune on his fiddle before they executed him, and Grooms fittingly chose the tune "Bonaparte’s Retreat;" the haunting melody is called "The Grooms Tune" in many parts of the mountains to this day. Upon completing his performance, Henry Grooms asked his captors if he could pray for a moment before they killed him. George Grooms is said to have died cursing the scouts. Mitchell Caldwell, who was described as a slow-witted man, simply grinned at his captors, so unnerving them that they were forced to cover his face with a hat before they could bring themselves to execute him. Teague’s scouts left the three bodies at the side of the road. Eventually, Henry Grooms’ wife, Eliza, and a Sutton boy took the bodies back to Big Creek by ox-sled, where they were buried in the Sutton Cemetery."
http://www.lib.utk.edu/smokies/images/colloquy.8.2.pdf
And this is a good link!
http://www.angelfire.com/mo/groomsfa.../groomtune.htm
"Played on the fiddle in a minor key it is a sad tune. Dogs howl whenever it is being played. The treble notes seem to cry out, "Fare you well. Farewell". All three bodies were left lying in the road, near a bullet scarred tree. House later, HenryŐs wife, Eliza, a Sutton boy and others came with an ox hitched to a sled and carried them back across the mountain.
They were buried in the same common grave in a single pine coffin in a cemetery known as "Sutton Family Cemetery Number One". It is located on the waters of Big Creek in the Cataloochee Section of Mt. Stirling.
L. A. Sies, USN (Ret), 2220 East 10th St.,
National City, CA 92050.
Addendum by Marvin Grooms: Shortly after reading the attached story my wife and I took a second honey-moon to the area and visited Dollywood. Dolly Parton has used the amusement park to provide work for many of family friends and neignbors. There is a small museum about her life in the mountains as a child and her later career. Imagine my surprise when I looked into one of the glass cases and found THE fiddle which figured in the Grooms Tune story! It was passed down to her Grandpa Jake Owens by his G-Grandfather, Solomon Grooms and has been in her family for over 100 years. So, not only does she have THE fiddle, she is also connected to the Grooms family too.".
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