Do not take any given persons opinion, everyones idea of proper towing will vary. Like below, you would actually put BOTH transmission and transfer case in neutral, but different year vehicles have different limits, 50 miles at 50 mph, or 30 miles at 40 mph, etc. (I reposessed and impounded cars for three years during college for a BIG local tow company).
Use either a tow-bar or a trailer. Either have all 4 wheels on the ground or none. Put the T-case in nuetral and the Trans in Park and you will be fine.
And if you wanted to take a chance, it wouldnt be all 4 on the ground or none, lol, it would be dolly the rear wheels, tie your steering wheel off straight with the t-case in 2-hi or neutral, or none (trailer). Wranglers were one of the few vehicles that we had to ALWAYS dolly (and the other two wheels were on the wheel lift) so all four were off the ground. Cherokees are not as touchy according to the manuals.
Your best bet is to call a reputible tow company and ask them to check specs for your vehicle, they will have stacks of tow manuals from the 60's and 70's to present, year by year that will document most vehicles "by the book" tow measures. While you can get away with towing "improperly", we all learned in 9th grade physical science that every action has an equal and opposite reaction...you're better to stay on the side of caution, make a 10 minute phone call to a pro.