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Sponsored by William T. Piper, a Bradford industrialist and investor, the affordable E-2 was meant to encourage greater interest in aviation. Later in 1930, the company went bankrupt, with Piper buying the assets, but keeping founder C. Gilbert Taylor on as president. In 1936, an earlier Cub was altered by employee Walter Jamouneau to become the J-2 while Taylor was on sick leave.

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