AERONCA 7AC INSTRUCTOR AND TRAINEE HAD A FORCED LNDG DUE TO FUEL STARVATION.

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WHILE PRACTICING TKOFS AND LNDGS IN AN AERONCA CHAMP AS PART OF MY TRAINING FOR TAILWHEEL ENDORSEMENT; I TOOK OFF RWY 24 AT POTOMAC AIRFIELD (VKX) FOR THE 6TH TIME. AFTER ATTAINING ABOUT 150 FT ALT; BUT STILL OVER THE RWY; THE ENG SPUTTERED A FEW TIMES AND BEGAN LOSING PWR. MY INSTRUCTOR IN THE REAR SEAT TOOK THE CTLS AND LANDED THE ACFT STRAIGHT AHEAD ON THE GRASS BTWN THE END OF THE RWY AND THE ARPT BOUNDARY. HE THEN TURNED THE ACFT AROUND AND TAXIED BACK TO THE HANGAR; WHERE HE SHUT OFF THE ENG. AT FIRST HE SUSPECTED CARB ICING HAD CAUSED THE PWR LOSS; BUT AFTER CHKING THE FUEL TANK; WE DETERMINED THE FUEL LEVEL WAS LOW ENOUGH THAT WHILE CLBING; THE NOSE HIGH ATTITUDE OF THE ACFT CAUSED AN INADEQUATE SUPPLY OF FUEL TO REACH THE ENG TO MAINTAIN FULL PWR -- EVEN THOUGH AT NO TIME DID THE ENG QUIT UNTIL WE SHUT IT OFF AFTER THE ACFT WAS PARKED AT THE HANGAR. WHILE PERFORMING THE PREFLT INSPECTION; I HAD NOT VISUALLY CHKED THE FUEL LEVEL; BUT AFTER STARTING THE ENG; I CHKED THE FUEL GAUGE IN THE COCKPIT AND READ IT AS 1/2 FULL. SUBSEQUENTLY; I BELIEVE I MISREAD THE GAUGE AND THAT IT HAD BEEN CLOSER TO 1/4 FULL. A RECURRENCE OF THIS EVENT COULD BE PREVENTED BY FOLLOWING THE PREFLT CHKLIST AND VISUALLY CHKING THE FUEL LEVEL.