On October 11, 1998, at 1130 central daylight time, a Piper J3C-65, N70880, owned and operated by a private pilot, sustained substantial damage during a low level maneuver following takeoff from runway 14 (3,600' X 75' dry asphalt), at New Holstein Municipal Airport, near New Holstein, Wisconsin. The pilot and a pilot passenger suffered serious injuries. The personal 14 CFR Part 91 flight was operating in visual meteorological conditions. No flight plan was on file. The local flight was originating at the time of the accident. Several witnesses were located on the airport ramp in front of the fixed base operator's office when the accident airplane departed runway 14. Various witnesses stated in verbal and written statements, that the accident airplane lifted off during the departure and they observed it start a left turn at low altitude continuing a steep bank until impact with the terrain in front of the office near where they were standing. One witness said, "Seemed like they were trying to do something special. Unsure if goofing off or was doing a maneuver." Another witness said, "He took off on runway 14, made a slow steep turn to the north and continued to the steep turn to the west. The airplane was 50 feet off the ground when the airplane stalled and the left wing came into contact with the ground." Another said, "I saw him in the air taking off of runway 14 when I saw the right wing come up and the plane banked to the left. I thought he was taking a sharp turn, when all of a sudden the nose pointed down, and the plane crashed into the blacktop." The pilot said in his written statement, "Upon takeoff, when I rotated the airplane skidded and banked to the left. I tried to react with right aileron, but to no avail. That's all I remember." An examination of the airplane after the accident confirmed control continuity and revealed no pre-accident anomalies.