On May 21, 1998, at 1240 eastern standard time, a Cessna 150, N2916J, piloted by a commercial rated pilot, was substantially damaged when it impacted the terrain, following a loss of control during takeoff from runway 08 (4013' x 50', dry, asphalt) at the Griffith-Merrillville Airport, near Griffith, Indiana. The commercial pilot was on the initial climb with the intentions of circling the airport to retrieve a banner on the next pass. Visual meteorological conditions prevailed at the time of the accident. The 14 CFR Part 91 banner tow flight was not operating on a flight plan. The pilot reported no injuries. The flight was originating at the time of the accident. According to the pilot's written statement, the pilot stated that was taking off on runway 08 with 20-degrees of flaps and when he was approximately 100' above the runway he released the banner hook out the pilot's window. The pilot stated that shortly after he dropped the hook the aircraft began to sink while the aircraft was in a left turn. The pilot stated that, "the nose came down and the plane would not fly level." In an oral statement to the Griffith police, the pilot stated that the aircraft was, "Mushing, and would not fly." The pilot stated in his written statement that the aircraft hit the ground nose first, flipped over and came to rest in an inverted position. In a telephone conversation with the Investigator In Charge (IIC), a witness to the accident stated that the pilot did not utilize all of the available runway for the takeoff and was "Surprised" with how little runway the aircraft used to become airborne. The witness stated that he saw the aircraft pitch-up before the aircraft descended towards the ground. The witness stated that the hook had freely fallen from the aircraft and that there was no evidence of the hook contacting the ground or surrounding terrain. In a post accident investigation of the aircraft, no anomalies were found with the aircraft controls or engine.