Issue Position: Cornerstone

Issue Position

Issue Position: Cornerstone

Bringing high quality jobs to Northeastern Pennsylvania has always been a high priority for me, and I am always searching for technologies especially appropriate to our region. I was excited to learn that there was a technology that could pulverize coal and replace the use of foreign oil, and for decades I followed the development of water jet technology.

I tried to interest various public and private, for profit and non-profit entities to develop this technology to take advantage of our remaining coal resources in Northeastern Pennsylvania.

Over time, I supported appropriations to fund further research and development of water jet technology. Upon approval of the budget, the Defense Department issued a request for proposals for which Cornerstone successfully competed. Over the next several years Cornerstone conducted research under the guidance of the Office of Naval Research. At its peak Cornerstone employed more than twenty individuals, including several PhDs and other scientists, and also subcontracted research with several universities. Cornerstone designed a variety of water jet machines, conducted experiments on various materials using the machines, and attempted to market the machines and the pulverized products to commercial companies. All of the work met the stringent requirements of the Defense Department and was fully audited.

Unfortunately, Cornerstone did not succeed in developing a profitable product and was forced to declare bankruptcy in late 2006. A business dispute among the founders contributed to the company's failure. There was no wrongdoing. When allegations arose in the context of my re-election campaign six years ago, they were fully examined and dismissed.

At no time did I ever have a financial interest in Cornerstone, any related companies, or any entity with an interest in water jet technology.

Several members of my family earned market rate salaries from Cornerstone, but no one in my family made any profit from their involvement with this company. In fact, they invested several hundred thousand dollars to try to keep the company in operation.

It is always disappointing to see a company with a promising technology fail. Had oil been selling for more than $130 per barrel five years ago as it is now, this technology may well have succeeded and may yet succeed in the future. However, I remain committed to continuing to help new and existing companies develop technologies that can employ the people of Northeastern Pennsylvania and improve the lives of all Americans.

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