The Varo Edition
In Jessup’s first book entitled “The Case for the UFO,” he put forth the idea that his readers should pressure their political representatives to demand research into the unified field theory, for possible application to new kinds of space-ship drive, such as antigravitational. This tidbit sparked Carl Allen’s interest in Jessup, whereupon he started writing to Jessup in January of 1956.
Late in 1955 a copy of Mr. Jessup’s book, “The Case for the UFO” was mailed to Admiral N. Furth, Chief of the Office of Naval Research, with a mysterious “HAPPY EASTER” written on the manila envelope. The envelope was postmarked “Seminole, Texas.” 
Major Darrell L. Ritter took interest in the strange book and brought it to the attention of Captain Sidney Sherby (ONR Officer) and Commander George W. Hoover (ONR Special Projects Officer.)
When examined, the book contained several hundred notes written by three different people in three different colors of ink (blue, blue-violet, and blue-green.) The comments were written on the top, bottom, and edges of the printed text, and referenced underlined passages in the book.
The unknown commentators implied knowledge of UFO’s and their propulsion systems, and of at least two different alien races. Some of the comments scrawled in the book contained terms such as “mother ship, home-fleet, Great ark, great bombardment, great war, force-fields, deep freezes, undersea buildings, scout ships, magnetic and gravity fields, vortices, dematerialization, magnetic net, etc.” 
Scrawled in the margin of page 7:
“U.S. Navy’s force-field experiments, 1943, October produced invisibility of crew & ship. Fearsome results. So terrifying as to. Fortunately further research halted!” – Mr A.
Other references to the PX;
“Ethereal types, Similar to results of Navy experiments, in force-Field invisibility, 1943 SOLIDS GO THROO THEM, NO HARM TO OCCUPANTS AT ALL.” – Mr A.
“Perhaps they detected “FIELD” Activity of NAVY D-E WHICH WAS CLOSE BY, (BEFORE) TESTING AN INVISIBILITY EXPERIMENTAL ‘gadget'” – Mr A.
“…THUS NOW YOU SEE OVER-ALL WISDOM OF EINSTEINS RETRACTION OF HIS UNIFIED FIELD THEORY. IN U.S. NAVYS SHIP INVISIBILITY EXPERIMENTS (sic). 1943. RESULTS OF SUCH UNINFORMED TINKERING SEEMED TO SHOW THE CORRECTNESS OF HIS ‘REASON’ FOR RETRACTION” – Jemi
“…I dread these Fireballs & I believe the U.S. NAVY May also have formed some out of Human Material, 1943-44.” – Mr A.
In regards to “intelligent instrumentation” found 300,000 years ago:
“Einstein wasn’t alive then, but the natural functions of our universe and this planet worked quite well without him.” – Mr A.
In regards to people being killed by unseen forces:
“One had a compass on him, fouled a ‘sweep’ … made the LMs angry.” – Mr A.
The Annotators regard themselves as gypsies:
“Show this to a Brother Gypsy…” – Mr. B.
“Only a Gypsy will tell another of that catastrophe. And we are a discredited people, ages ago. Hah! Yet, man wonders where ‘we’ come from…” – Mr B.
“Ours is a way of life, time-proven and happy. We have nothing, own nothing except our music and philosophy, and are happy” – Mr A.
Morris Jessup was invited to the Office of Naval Research to discuss the strange annotations. Mr. Jessup reviewed the annotated book in detail and found references to invisibility projects. He began to recognize one of the sets of handwriting and said, “I feel certain that I have two letters from one of the commentators.” Later Jessup provided the letters he received from Carl Allen. The ONR officers studied the two letters and concluded that Allen’s writing style, wording, and punctuation matched the first of the three commentators. An ONR Officer said to Mr. Jessup, “You may be interested in knowing that your book along with all the notes is going to be reproduced in a limited edition for circulation among some of our top people.” Mr. Jessup left the Office of Naval Research bewildered and puzzled.
The annotated version of Mr. Jessup’s book was reproduced by the Varo Manufacturing Corporation of Garland, Texas. Reportedly the Varo Corporation produced twelve copies. Varo, an electronics firm, has been engaged in classified military for the Navy. Mr. Jessup received a copy, and entered his re-annotations into it on slips of paper about every ten pages.
The Varo edition contained close to two hundred retyped (by Miss Michael Ann Dunn), mimeographed pages including the Carl M. Allen letters, and a special three page introduction written by the Office of Naval Research. It was printed on standard letter size (8.5″x11″) paper and bound with plastic covers. 
Eventually there were approximately 127 copies produced and circulated and some copies ended up in the hands of the general public. The book instantly became the object of greatest value to any UFO buff. Gray Barker, publisher of UFO-related materials, produced and sold some facsimile copies of the Varo Edition in 1973.
“The genesis of the Philadelphia Experiment myth dates back to 1955 with the publication of The Case for UFO’s… The Office of Naval Research never conducted an official study of the manuscript… and we do not have even a file copy of the annotated book.” – Betty W. Shirley, Head of Research and Public Inquiries Section / Dept. of the Navy Office of Information.
In 1969 Varo corporate President Austin Stanton was visited by Carl Allen. Carl demanded a copy of what he referred to as “his book” and a small payment to assure that Varo would not be further bothered by him.  He referred to it as “his book” because as it turns out he solely wrote all three sets of comments.
“Enclosed is a book I Co-authored with professor Morris J. Jessup…. 24 Years ago… and so this book I helped to write (alone by myself with no ‘Mr. or Mr. B.’)…” – Carl Allen’s letter to his parents, Mar 30, 1978. 
Of interest here is Austin Stanton had retired from Varo in 1967, yet Carl Allen states he visited him in 1969. Where or how did Carl find him if he was no longer at Varo?
“Austin N. Stanton, who died November 27, 1994, at the age of 91 following a brief illness. Austin Stanton was the inventor of microcircuitry–the precursor to the computer age. In 1945, he founded Varo Corp. in an old building on his farm in Garland, TX, with about $800 in capital. The building was converted into a laboratory, and his young, small staff began work on the design for a revolutionary power conversion unit for military aircraft. They also developed tiny power supplies, microcircuitry, and precision timing devices for space vehicles. Varo conceived and developed the first light-amplifying, night-vision telescope, first electronic inverters, and the first microcircuits. Microcircuitry led to the development of integrated circuits, which brought about the computer age. Varo was the only producer and supplier of microcircuitry for more than 5 years. Their microcircuit transmitter was donated to the Smithsonian Institution, where it was placed on display. When Mr. Stanton retired as chairman of the board of Varo in 1967, he had parlayed his $800 investment into a successful $60 million per year international business. He also provided advice and assistance to Texas Instruments Co. in the microelectronics field. Since 1967 Mr. Stanton has been actively involved in developing advanced technology. He was chairman of the board of the Keller Corp. and Methacoal Corp., both research and development companies and leaders in various phases of the alternative fuels, power and energy, electric generation, and waste utilization fields. With Leonard J. Keller, an expert in engineering, he developed Ambient Energy Corp, and built the first Ambient Energy Home, a model of affordable, all- electric energy homes. In 1990 he coinvented the cleanest, most efficient, and least costly coal-based electric generating plant in the world. He earned approximately 40 patents during his lifetime and was actively involved in technology development until his recent illness. Mr. Stanton was for many years a personal friend and associate of Wernher von Braun, the principal scientist of space-age technology. He provided valuable assistance to Von Braun and was the first to propose the commercialization of space. He made presentations on the subject at the first international conference on space utilization.” – Ralph M. Hall 
Additionally, I found out that this was a Common practice of Carl Allen. He had annotated books, and mailed them to people such as Carl Segan. Bob Warth has boxes of letters and “annotated” books by Carl on file at Pursuit. Joel Carpenter while looking through the Condon archives (Colorado University UFO Project) stated to me;
“In it was a large manila envelope, which contained a large stack of postcards and a copy of “Flying Saucers: The Startling Evidence of the Invasion From Outer Space” by Coral and Jim Lorenzen. I flipped through the book and noticed that it had been heavily annotated and underlined in ball-point pen in many places. One chapter in particular was heavily overwritten. I looked closer. It was a chapter about electromagnetic propulsion. And inside the front cover was an autograph. Carlos Miguel Allende. …oh my God, Allende was writing to the Condon Project! The postcards were all in the same vein – microscopically handwritten notes on UFO propulsion, the Navy’s involvement with UFOs, theories that the ONR had solved the UFO problem long ago and Condon’s people should contact ONR to save time, etc. Most of the cards were addressed to Dr Low, not Condon, and they had postmarks, in his style, from all over the map – some in Minnesota, some Texas, some Mexico. The style and handwriting was unmistakably his” – Joel Carpenter 
People continue to “forget” to publish these facts as it lessens the whole mystery of the Varo Edition.
In 1965, Vincent H. Gaddis’s Published one of the early accounts of the Philadelphia Experiment in his book “Invisible Horizons: True Mysteries of the Sea” He sums up the Varo Edition by saying;
“There was certainly something in the notes and letters that justified the time and cost of producing the Varo edition. What was it?” – Vincent H. Gaddis
If the Varo Edition was just a hoax, why did the ONR officers go to the trouble of copying and circulating the book? Did it contain information that only the Navy could fully appreciate? Or was it just more “disinformation”?
In 1979 Larry Kusche (author The Bermuda Triangle Mystery—Solved (1975), and a founding member of CSICOP ~ Committee for the Scientific Investigation of Claims of the Paranormal) located some former ONR officials, one of whom, Jack G. Smith, told him: “In the 1950s many engineers and scientists had not yet made up their minds about the reality of UFOs. Many of those at Varo were interested in UFOs basically as a lunchtime hobby… Because the annotations were such a jumble that no one could make any sense of them, Stanton [the president of Varo] hired a high school girl [Miss Michael Ann Dunn] to type them after school. Copies were mimeographed and sent to various scientists and Navy officials, and the eventual conclusion of all concerned, including the men at ONR, was that the annotations made no sense at all.” 
“It is suspected that the Varo Company manufactured the huge magnetic degaussers that made the Philadelphia Experiment possible.” – Gary Barker
“ONR has never conducted any investigations on invisibility, either in 1943 or at any other time (ONR was established in 1946.) In view of present scientific knowledge, ONR scientists do not believe that such an experiment could be possible except in the realm of science fiction.” – Department of the Navy, Office of Naval Research (ONR), Arlington, Virginia, 22217
“The Philadelphia Experiment” by Bill Moore & Charles Berlitz, Pg 63
“Invisible Horizons: True Mysteries of the Sea” by Vincent H. Gaddis, Pg 214
“Invisible Horizons: True Mysteries of the Sea” by Vincent H. Gaddis, Pg 211-212
“The Philadelphia Experiment” by Bill Moore & Charles Berlitz, Pg 127
 Email from Joel Carpenter received October 18, 1997 11:46AM
 The Skeptical Inquirer, Fall 1979, page 60