On June 4, 1997, at 1245 eastern daylight time, a Champion 7ECA, N5253X, sustained substantial damage during impact with trees and the terrain following a descent from initial climb on takeoff. The accident occurred at a private airport located near Gregory, Michigan. The pilot received serious injuries, while the passenger received minor injuries. The local personal 14 CFR Part 91 flight was operating in visual meteorological conditions. No flight plan was on file. The flight was originating at the time of the accident. The pilot stated that he elected to conduct the takeoff to the south (runway 20) after checking the windsocks at both ends of the runway. He said that the aircraft performance was normal; however, after takeoff the airplane began to descend and impacted trees. The nearest recorded weather was 22 nautical miles to the southwest of the accident site. Five minutes after the accident that station was reporting the wind condition to be 030 degrees at 7 knots. The airplane and engine were inspected subsequent to the accident and a copy of the report of that inspection in included as an addendum to this report. The inspection did not establish any preexisting anomalies with the airplane or engine.