When the Army Air Corps started a glider development program in 1941 it ordered two types of transport glider from the Frankfort Sailplane Company, a nine-seat and a 15-seat glider. The smaller glider was to carry a pilot and eight troops and the prototype was designated the XCG-1, the larger glider designated the XCG-2 was to have a pilot and co-pilot and carried 13 troops.
The company was busy with the production of the TG-1 training glider so the development of the two new types was slow but a static test XCG-1 was delivered to Wright Field in December 1941 for testing by the Army. The glider failed structural tests and the Army cancelled the contract for both the CG-1 and CG-2.