General Vaughan learned of Burgoyne's surrender at Saratoga on October 17. On October 22, 1777, the British fleet left the Mid-Hudson Valley, never to return. The town was organized from the town of Kingston on April 5, 1811. At that time the hamlet of Saugerties contained twenty-one houses. Henry Barclay (1778–1851), was an importer from Manhattan who, with his wife Catherine (1782–1851), came to Saugerties about 1825. Barclay, who had business relationships with Robert L. Livingston, had a dam constructed on the Esopus Creek near today's 9W bridge. Circa 1828, he established the Ulster Iron Works to produce bar and hoop iron. It had a capacity for manufacturing about 6,000 tons annually. and employed approximately 300 hands working round the clock shifts. At the same time he was building the iron mill, Henry Barclay built a paper mill powered by water from the Esopus Creek, which at that location had a fall of thirty-one feet. This mill was operational by 1827. Barclay imported skilled workers and engineers from England to man his mills. Upon Barclay's death in 1851, the mill was under the management of Messrs Norman White and Joseph B. Sheffield. This firm would eventually purchase the mill in 1857 and later absolve into the long-standing company J. B. Sheffield & Son. The original mill was first rebuilt in 1860 by Messrs. White & Sheffield, and again rebuilt in 1868–1869. In 1872, the mill burned and was once more rebuilt. By 1877, a second mill was built adjoining the older section. The mills produced two and one-half tons of paper daily, and employed about 130 people. The mills would operate through various companies until 1969, then after years of abandonment and structural decay were demolished in the late 1970s. William R. Sheffield the son of J. B. Sheffield built the Clovelea mansion around 1880. In 1888, Martin Cantine built a paper mill on the North side of the dam. Cantine's mill would produce coated papers, similar to what one would find in older magazines. The Cantine mill closed in 1975, and burned in 1978. Part of the Sheffield mill complex, formerly a blank book bindery and envelope factory, has been renovated as senior citizen housing. The village was incorporated in 1831 as "Ulster," and changed its name to "Saugerties" in 1855. In 1832, blue stone was quarried in nearby Toodlum (now Veteran). At one time, 2,000 men were employed