1881 census (Ancestry)
RG11/5605 folio 53 page 16 schedule 84
72 Derby Square, Douglas, Onchan
George H. Clague, head, unmar, 40, Income from property, born Douglas
Elizabeth ", sister, un, 42, Income from property, Douglas
Emily ", niece, un, 35, Income from shares, Douglas
Catherine Quirk, dom, un, 19, No income, born Santon.

It would be hoped she got some income! Note that it says birthplace Santon, not German.

Sue has already given:

RG11/5605 f.53 p.16 sch.81
69 Derby Square, Douglas, Onchan
Mona Stewart, wife, m, 32, Advocate's wife, Douglas
Charles ", son, 2, Douglas
Maria ", d, 5mo., Douglas
Margaret Quayle, serv, 28, Cook domestic, Andreas
Mary Quillin, serv, 26, nurse domestic, Rushen

There is at least one other Margaret Quayle from Andreas in Douglas in 1881:
RG11/5606 f.38 p.25 sch.131
7 Bathurst St, Douglas, Onchan
Edward & Margaret Quayle with unmarried daughter Margaret Quayle, 23, born Andreas, and other children,

RG11/5607 f.9 p.12 sch.50
Oatland, St Ann
Adam Watson, h, m, 64, Ag. lab., Ireland
Jane ", w, m, 63, labourer's wife, IOM

I couldn't spot a suitable George Watson or George Quayle born after 1881 with an IOM connection in an 1891 census. Did James & Catherine have any other children do you know?

Do you have George's marriage certificate to see what he said about his father?