The engine was as useless as water carried in pails, with which the villagers tried to quench the flames.  When the alarm was given a gentleman telegraphed Mr. Fred ACKERMAN, of this city, to have a fire engine sent there.  Mr. ACKERMAN communicated the request to Chief Engineer KAESS, and he ordered Niagara Steamer No. 2 and hose to be taken to the P., H. & B. railroad, for shipment to the Valley. Superintendent PERKINS, placed a locomotive and car at the disposal of the department, and in one hour from the time the chief received word, Niagara and fireman were at the Valley.

The villagers who had pluckily faced the overpowering enemy again and again, only to retreat with tears streaming from their eyes and partly suffocated in removing furniture, could not have been more exultant than when the boys began to lay hose from the steamer to the Wappingers creek, 1,000 feet away.  A few minutes before the steamer began playing water on the fire, the roof fell in, making a big blaze, and the sparks were carried against the residence of Joel O. HOLMES, and other residences, scorching them badly, despite the blankets and carpets hung up against them.  The fireman arrived too late to prevent the building from being entirely consumed, but their heroic work prevented other buildings from getting afire and removed household furniture to the street.

It was difficult for the firemen to keep the large crowd of spectators a sufficient distance from the burning building to allow them to work.  They reached home at 5:30 o'clock, having partaken of lunch at Mr. Joel O. HOLMES's prior to their departure.

The fire began in the rear kitchen under an arch kettle.  Insurance upon the building, $4,000.  Estimated Loss - $10,000.  A portion of the furniture was saved.  Four hundred dollars in bills belonging to the proprietor, in a room on the upper floor of the building, were secured by him.

The building was a three-story frame, about 60 feet front.  It was erected in 1770, and used as a private residence until 1820, when it was converted into a hotel.  Mr. W. C. ARMSTRONG has owned and occupied it for many years, and it had been a favorite resort for sleighing and dancing parties from this city and for New York summer boarders.  Mr. Armstrong will probably build another hotel.