The Philadelphia Experiment was actually known as the Rainbow Project. It was set up by the United States Military so that they could try and create a vessel that would seem invisible on enemies radars.
The experiment centered around a test on the ship USS Eldridge which was situated on the Philadelphia Naval Yard.
Now what happened to the ship is still pretty much up for grabs but lets just say that legend has it that it managed a time shift of sorts. The ship was hammered with electromagnetic energy until it actually became invisible to radar.
The problem was they went to far – the ship completely disappeared out of sight!
Apparently the ship materialized in Norfolk, Virginia but only stayed there for a handful of seconds before returning to Philadelphia.
There was a mass panic when the ship returned but only for a few seconds – everything looked fine!
When they boarded the ship they were confronted with horrors they never expected. Some of the crew had been fused with the metallic ship during the teleportation and the remainder seemed completely insane.
The government and the military were so shocked by the results they decided to close down the Philadelphia Experiment immediately. They decided to use the remainder of the money on the Manhattan Project (and we all know how that turned out!).