Findlay, Ohio, Dec. 11- A terrible accident, but one that could have been much worse. This sums up the reaction of Findlay residents who witnessed or heard the flaming crash of the Phillips Petroleum Co. plane near Sixth and Park Streets shortly before noon yesterday. It could have been worse because the site of the crash was in a heavily populated part of the city. the plane, as if by some unerring instinct, picked the back yards of two homes instead. The 200 by 100 foot wide space was possibly the largest open spot in the south of the city. 3 Blocks from School The spot is within three blocks of the Jefferson Elementary School, six blocks of Blanchard Valley Hospital, and a half block from a gasoline bulk storage station. Many residents heard the converted B-26 making low level approaches to Findlay Airport, its intended destination, about a mile south of the crash site. Mrs. Mildred Buck and Mrs. George Miller witnessed the crash which sent debris scattering over their homes, but luckily, resulted in no injury or damage. Mrs. Buck said the crash caused "a huge rolling black ball of smoke... the impact knocking things down in my house and damaged the siding some." High Speed NotedMrs. Buck said she thought of the hundreds of children at Jefferson School and was immediately thankful that the plane did not hit the building. Cecil Launders, who has spent many years in aeronautics, said he was watching the plane with interest and noted the "high speed" of the craft, "When the plane banked," he said, "I knew it was in trouble. It went down at a radical angle and made a straight nose dive into the ground, disintegrating.