P.W. Matthews has disposed of his 222 acres of swamp and overflow lands at Big Lagoon - to the Lagoon Lumber Company, who own 34,000 acres of redwoods adj to the lagoon. The 222 acre tract has been the cause of litigation between Mathews and the Lagoon Lumber Company the past 18 years. The suit came to trial a year ago. Judge Connick granted a new trial. Recently, Matthews was in S.F. and met reps of the lumber company and a settlement was reached. The company will probably use the site which faces on the lagoon, for milling their lumber when logging operations are commenced.