TIMBER.

There is a considerable quantity of accessible spruce and red cedar of merchantable size growing near the shores of the inlet, and much larger bodies on the banks of the streams, and in the valleys a few miles back. It would be expensive to obtain the latter by reason of log obstructions, except where the fall is sufficient for the construction of chutes. On Slate Chuck I saw spruce trees over thirty feet in circumference, and red cedars nearly as large. Occasional groves of alder used exclusively for fuel by the Skidegate Oil Company, are found on the shores.

COAL.

Several out-croppings of coal have been hitherto discovered on the inlet, including the only anthracite, so far as known, on the Pacific Coast. The vein is situated on the east side of Seymour Mountain, about a mile and a half from the shore at Anchor Cove. Upwards of a hundred thousand dollars were expended in its development by the Queen Charlotte Coal Mining Company, chiefly in the construction of a railway and other shipping facilities. Several tunnels were bored, the longest to a depth of 450 feet, reaching a vein of good anthracite coal from three to six feet in thickness, from which a vessel load was sold in San Francisco at a good price. But the vein soon becoming faulty, and the owners dissatisfied with the outcome from their investment, the mine was abandoned in 1872, and before the explorations made were sufficiently thorough to determine with much certainty the character and extent of the deposit.

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.