The CR-3 was ordered by air racer Johnny Livingston in response to the performance he saw when competing against the Cessna CR-2 in the 1932 National Air Races. The CR-3 was of shoulder-wing design.
The CR-3 was a mid-wing radial engined taildragger racer with manual retractable landing gear and a tail skid. The propeller was from a clipped wing Monocoupe racer #14. The tail surface was designed to be neutral, without downforce in flight. The elevators experienced significant vibration in test flights without the wing root fairings installed.
The CR-3 lasted 61 days, winning every event it competed in:
En route to an airshow in August 1933, the CR-3 experienced a failure of both the tail skid and a landing gear weld that would not allow the gear to lock. Livingston bailed out over Columbus, Ohio and the CR-3 was destroyed in its ensuing crash.