A bit of investigation allows me to add some substantial information about the Read-York CG-12. Interesting bits I found was:
- Date of contract AND manufacture was 1943, not 1944.
- Three aircraft ordered: two flying articles and one static test article. The latter was actually COMPLETED.
- The static test article was evaluated at Wright Field and found unsuitable.
- Wright Field issued some requests for changes and postponed the delivery date for the flying articles.
- Read-York was deep in debt and its subcontractor, Simmons, refused to proceed with the work.
- Read-York was declared bankrupt in June 1944.
- The Air Force reclaimed the sole prototype but what happened to it is unknown, though it must have been scrapped.
Under date of May 26, 1943, Read-York, Inc., New York, a firm incorporated for $100, secured a contract with the federal government for the manufacture of three 30-passenger gliders for the Army Air Force for the sum of $426,230. Funds for the performance of the contract were loaned and advanced by the federal government. Read-York, according to its articles of incorporation, was founded in June 1943, as a successor to York Aircraft Corp., which had engaged the Simmons Co. as a subcontractor in the building of experimental gliders. The officers were Holcomb York, president; Robert C. Read, executive vice-president, and Lincoln Epworth, secretary and treasurer.
For the purpose of conducting its operations under the contract, Read-York leased certain premises in Kenosha, Wisconsin, from the Simmons Manufacturing Company. However, the Simmons Co. allegedly refused to make further advances after it had already advanced a sum reported to be about $600,000. About October 16, 1943, Read-York ceased work on its contract and vacated the leased premises. One glider was manufactured but failed to meet the required tests, and the government thereafter terminated the contract. Certain property, including the property in dispute, was left in the Kenosha plant.
The termination of the contract was based upon the following findings of the contracting officer:
- Appellant failed to deliver the two flight test gliders.
- The structural test glider due to be delivered 10 July 1943 was not received until 27 July 1943.
- The structural test glider did not meet design specifications and could not be modified to meet any existing military requirements.
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- Appellant stopped work under the contract 16 October 1943 and was unable to proceed.
- The delays in performance were not excusable delays under the contract or in law.
In October 16, 1943, the Army Air Forces took possession of such property at the Kenosha plant, where it remained in storage and subject to the control of the Government. Neither Read-York nor anyone in its behalf resumed or performed any further work under the contract. In December 6, 1943, the Contractor was served with notice of termination for default, based upon this abandonment of the project and the failure of the only glider theretofore completed to meet the required structural specifications.
The appellant, however, took exception to such findings, and asserted:
- That the delivery date of the flight test gliders was extended to permit modifications requested by the Engineering Laboratory, Wright Field.
- That the delay in delivery of the structural test glider was inconsequential.
- That tests made of the structural test glider were not properly conducted and that this article did not, therefore, fail.
- That additional funds could and should have been made available to appellant, as the depletion of appellant's funds was in part due to the delay of the Government in completing the tests of the structural test glider.
- That it was understood that payment of appellant's obligation to York Aircraft Corporation was to be deferred until completion of the contract and final payment by the Government.
- That it was unable to proceed because of lack of funds and because of changes in requirements and specifications under consideration by the Engineering Laboratory.
Read-York's appeal from the termination was denied by the Board of Contract Appeals on May 30, 1944. On the following June 29, Read-York, Inc. was adjudged an involuntary bankrupt.
A schedule of assets and liabilities was filed with the clerk of federal district court on August 22. Its schedules admitted liabilities in excess of $700,000 with assets consisting entirely of personal property of a market value probably not in excess of $5,000. The schedule listed unsecured creditors' claims of $202,228.23 against the firm, and no assets other than an uncompleted glider for which the Government, prior to the abandonment of the project by Read-York, had made progress payments upon its property in the amount of $333,359.40, under the provisions of Article 44 of the contract.
Selected sources:
- File Schedule of Glider Firm; Assets Are Near Nil. The Milwaukee Journal, Tuesday, August 22, 1944
- Glider Firm Woes Aired. The Milwaukee Journal, Tuesday, September 5, 1944
- IN RE READ-YORK No. 25136.
- IN RE READ-YORK Nos. 8768, 8769.
- The Federal reporter. Second series, Volume 152
- Air victory: the men and the machines - Page 199
- Termination of war contracts; Coordinators' Corporation, 1945, p. 460