On May 30, 1998, at 0930 eastern daylight time, a Luscombe 8E, N1968K, piloted by a private pilot, sustained substantial damage when it impacted trees and terrain, during a forced landing after a loss of engine power during takeoff from runway 35 (2600' x 25', dry, asphalt) at the Ottiger Airport, near Montague, Michigan. Visual meteorological conditions prevailed at the time of the accident. The 14 Part 91 personal flight was not operating on a flight plan. The pilot reported minor injures. The flight was originating at the time of the accident. According to the pilot's written statement, the pilot stated that he was approximately 60' above ground level (agl) after takeoff when the engine lost power. The pilot stated that he pitched the nose forward and attempted to troubleshoot the loss of engine power. The pilot stated that the engine gained partial power, but then lost engine power again almost immediately. The pilot stated that there was not enough altitude to turn back to the airport, and he did not want to enter a stall-spin situation. The aircraft struck some tree tops, approximately 50' agl, and then subsequently impacted the ground. The pilot stated that both fuel lines were separated from the wing tanks, as result from the impact, and fuel was pouring out. Post accident investigation, conducted by the Federal Aviation Administration (FAA), showed that the left wing had been separated from the aircraft, leaving the left fuel tank compromised. The right wing was still partially attached to the fuselage, with the evidence of useable fuel in the right fuel tank. The fuel selector and ignition switch were in the "Off" position. The pilot confirmed that he placed them in the "Off" position after the accident. The fuel type was determined to be auto-fuel. There was confirmation that the aircraft had a Supplemental Type Certificate (STC) for the use of auto-fuel. There was evidence of carbon build-up on the upper and lower spark plugs of the number two cylinder. The carburetor was disassembled and inspected. The fuel inlet screen was found to be clean. It was noted that there was no fuel in the bottom of the bowl assembly. The fuel sump bowl was disassembled and inspected, and was found to be clean. The crank shaft was rotated, by hand, and the engine had compression in all cylinders. It was noted that the magneto impulse coupling was functional. There were no other engine or aircraft anomalies found. A weather observation, taken from Muskegon County Airport at 0913, indicated that the ambient temperature was 64-degrees Fahrenheit and the dew point temperature was 54-degrees Fahrenheit. The weather observation station is 18 nautical miles northwest of the accident site. The above weather observation was taken 17 minutes before the occurrence time. According to the table "Conditions Known Favorable For Carburetor Icing," appended to this report, the above noted temperatures were favorable for moderate carburetor icing.