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Matheus was born in Keyser and later moved with his family to Ohio. Many of his stories take place in the West Virginia–Ohio area. He also wrote about folktales from Europe, Africa, and the Caribbean.
Matheus graduated from college in Ohio in 1910 and later earned a master’s degree from Columbia. He also studied in Paris and Chicago. From 1922 to 1958, he taught foreign languages at West Virginia State College (now University).
Matheus was part of the Harlem Renaissance in the 1920s, a time of great creativity in Black art and writing. He wrote plays, poetry, and short stories about African American life and struggles. His short story "Fog" won an important top prize in 1925, and "Swamp Moccasin" won another award in 1926.
He also co-wrote the opera Ouanga! about an enslaved Haitian who leads a revolution. It was performed at the Metropolitan Opera House and Carnegie Hall in New York City.