Little Italy, in East Harlem, was the scene of a terrific bomb explosion early this morning. The district had been celebrating the feast of Our Lady of Mount Carmel. There was a crowd of possibly 10,000 Italians in the street.

The celebration was still going on when the explosion took place in front of the grocery store of Marco Latadubo, 352 East 105th Street, which is practically the west side of a double house, Nos. 352 and 354.

The entire front and most of the contents of the store were blown clear across the street, windows were shattered, a lamppost broken in half, and other damages done.

Following the explosion a sheet of flame shot out of the wrecked store and caught the drapery that decorated the house front. The flames spread with such rapidity that the escape of the occupants by the front door and fire escapes was shut off.

They got out by the roof and the rear escapes. Up to an early hour the police had not found that any one had been injured.

The groceryman and his family were out celebrating at the time of the explosion. The fire did $3,500 damage.

Marco Latadubo, according to those in the neighborhood has been receiving Black Hand letters demanding money. He gave out the information that he was not afraid, and he took no trouble to let it be known that he did not intend to give up any money.

Among those who turned out to watch last night's celebration were Alfred J. French and John Bedell, watchmen in the Harlem Market. The men were standing near the store when they noticed two men acting in a suspicious way near the entrance to the building.

"What are you doing there?" shouted French.

One of the men shouted something back, and as the watchmen started toward them they ran away. The others started after them and the pursuit had only gone about 100 yards when the explosion came. The whole front of the store up to the cornice of the first floor was blown across the street. A scene of great excitement followed. Italians began to pour from every house.

Policeman Harry Taylor of the East 104th Street Station was standing just down First Avenue from the corner. he fired his revolver three times to attract the attention of the reserves, some 50 of whom had been scattered through the district.

In the meantime an alarm of fire had been turned in. The policemen with other volunteers went into the building. There were twenty-five families in each house, but many were still upon the street. After the rescue party got into the building they found that the flames had cut off their escape by the front door. They assisted the tenants to escape by the rear escapes and the roof.

Fire Chief Graham said that there were two explosions, and that while he could not account for the first one he knew that the second was caused by gas.

The police have obtained descriptions of the two men who are supposed to have set off the bomb, and detectives are searching for them.