NEW ORLEANS, Jan. 7—The police gunned down a sniper atop a 17‐story hotel where 10 persons died and a dozen were wounded today in a barrage of bullets and fire. But they said another sniper was holed up in a stairwell near the roof.

Firing from a Marine helicopter gunship over the Downtown Howard Johnson's Motor Lodge, the police cut down one sniper when he bolted from concrete block above the stairwell. Tthe other sniper, the police said, retreated into the stairwell from the rooftop cubicle, which had come under gunfire.

Within an hour after sniper's death, the helicopter gunship made three more passes over the hotel, firing round after round into the concrete cubicle and stairwell area in an attempt to flush out the other sniper.

On one of the sweeps, the police reported they spotted gun barrel and were fired upon by the second sniper. The police also said there might be third sniper.