Two problems are described in this paper. The first is concerned with the theory of the inclination error, i.e. both pitching and heeling error, in which the equations are led to separate principal parts from the coefficients of inclination error. The second is the new method of adjusting inclination error. When inclination error was corrected by vertical magnets well known at present time, continual readjustments are required by reason of its variation due to the variation of induced magnetism with change of magnetic latitude. But correctors proposed in Fig.1 and 2, when once adjusted, would no readjustment on change of locality.