THE SKIDEGATE OIL COMPANY'S Works, buildings and wharf are situated on Sterling Bay, between Image and McGregor Points, ten miles from the entrance to the Inlet. They manufacture from 35,000 to 40,000 gallons of refined oil annually, representing over 500,000 dogfish, giving employment to hundreds of the natives during the summer months. This important industry is capable of indefinite expansion, and great credit is due to the enterprise and energy of Messrs. Sterling & Co, for its establishment and successful management. THE SLATE CHUCK QUARRY, From which the natives of the islands obtain the material for their stone carvings, is situated on the east side of the mountain of that name, on the west bank of Klickadoo River, about three miles and one-half from its mouth. The deposit is evidently an extensive one, the exposures covering several acres. No united effort has been made to develop it, the Indians quarrying it individually and carrying it out on their backs--over a rough trail--as required. SKIDEGATE CHANNEL, From three miles in width at its west coast entrance to two and three hundred feet where it meets the waters of Skidegate Inlet, flowing in from the east, is of sufficient depth on the rapids to admit of the passage at flood tide of vessels drawing seven or eight feet of water. Canoes pass through at all stages of water, but encounter very strong currents in the narrows, near the divide--not less than five miles an hour--when the tides are running out. Its shores are comparatively low, not infrequently sandy, except for several miles from the entrance, where the mountains are higher and more rocky and precipitous. The bordering country is clothed with a dense forest of spruce, hemlock and cedar. SWAN INLET,