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Shippensburg is a borough in Pennsylvania , 41 miles (66 km) west-southwest of Harrisburg . In 1900 , 3,228 people lived there; in 1910 , 3,457; and in 1940 , 5,244 people lived there. The population was 5,586 at the 2000 census. Shippensburg is located in the Cumberland Valley on the fringe of Cumberland and Franklin counties and was incorporated as a borough on January 21 , 1819 . In the past, there were furniture factories, engine and pump works, and other industrial works located within the town. Shippensburg is also the home of The Beistle Company, the oldest and largest manufacturer of decorations and party goods, which sells its distinctive honeycomb paper decorations worldwide. It is also the location of Pague and Fegan, the oldest continuously operated hardware store in Pennsylvania. Shippensburg is also home to Shippensburg University of Pennsylvania , one of 14 universities of the Pennsylvania State System of Higher Education . Every summer on the last Saturday of August, Shippensburg holds the Corn Festival, an event that brings regional artisans and vendors to operate stands downtown. The downtown is closed to traffic for at least 5 blocks for most of the day. Average attendance at the festival is estimated at 60,000 - 70,000 each year.