Posted on 02/04/2004 5:58:06 AM PST by Born Conservative
NANTICOKE: Company owned by the congressman's family had $9 million in grants. By JERRY LYNOTT jlynott@leader.net
NANTICOKE - For months, equipment and materials from a much-touted company funded by millions of federal dollars and run by nephews of U.S. Rep. Paul Kanjorski has gathered dust in an unheated basement garage under a bowling alley. The assets of Cornerstone Technologies are stored on pallets and behind a plywood wall in the dirty and dark underground parking lot of the LS Bowl-A-Rama on Prospect Street.
Owner George Ellis, a family friend of the congressman and his nephews, said Tuesday the equipment and material from the company's former rented building on Second Street, Plains Township, was placed under the bowling alley in August.
Five months ago, when the equipment was moved to the bowling alley parking garage, Cornerstone President and Chief Executive Officer Peter Kanjorski said the company expected to start production in a few weeks in a smaller facility.
He also said major corporations were interested in the company's silver powder product for use in microcircuits.
The equipment has not been moved since it was placed in the garage.
Peter Kanjorski did not immediately return a phone message on Tuesday.
"This is just a stepping stone for them," Ellis said.
Scores of plastic barrels of graphite powder and pellets, metal shelving and a motorized floor sweeper are in the open. More valuable equipment is out of sight behind the wall.
The privately held company, headed by Peter Kanjorski, developed a method of applying high-pressure water jets to materials such as graphite to create microscopic particles. The particles are used in high-technology applications in the electronics, aerospace and automotive industries.
With the help of U.S. Rep. Kanjorski, D-Nanticoke, the company received more than $9 million in government funds between 1999 and 2003 to fine-tune the micronization process.
But after the congressman came under scrutiny for his role in securing funding for the company, Cornerstone all but shut down its operation. It received the last of its multi-million dollar federal grants last year.
"According to the boys, they're looking for funding now," Ellis said.
Congressman Kanjorski did not immediately return a phone call left with his office in Washington, D.C.
In an answer to questions about Cornerstone in October, he said the company was completing its research and development phase and engaged in establishing commercial operations.
"I think they want to get the process started," Ellis said of the Kanjorskis' plans for Cornerstone. Until then, they can continue to rent space in the garage, he added.
The Kanjorski brothers - Peter, Paul, Russell and Mark - have access to the storage and come and go, said Ellis. Surveillance cameras watch the area, which can be entered only through a locked garage door.
The owner of the building assured residents the material stored in the plastic barrels was safe. "There's no plutonium, no bodies down there."
Last week, city officials visited the garage after questions about the barrels were raised at a council work session.
Greg Gulick, city administrator, said the matter would be discussed at tonight's City Council meeting starting at 7.
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