October 11, 1981

YONKERS TWO years ago, a brash young Democratic City Councilman, Gerald E. Loehr, succeeded in ousting the incumbent Mayor, Angelo R. Martinelli, with a campaign promise of restoring fiscal integrity to the city and of eliminating the political divisiveness that he said had often characterized Yonker's politics under Mr. Martinelli's administration. Mr. Martinelli, a Republican who lost his bid for a fourth term by an 800-vote m argin, recently conceded that ''continued feuding with members of hi s own political party,'' may have cost him that election. Mr. Loehr, a 38-year-old lawyer whose grandfather served as Mayor of Yonkers during the Depression, was a three-term City Councilman before his election to the mayoral post. Mr. Martinelli, a 53-yearold self-made millionaire, served as Mayor from January 1974 to last December. ''I've learned the error of my ways,'' Mr. Martinelli said last week in his offices at Gazette Press, just down the hill from City Hall. ''I want another chance to get this city on the right track.'' Mr. Martinelli owns Gazette Press, which publishes Westchester Illustrated magazine.

''I shall always be a priest of love and a glad one. Once you've known what love can do, there's no disappointment and no despair.'' -D.H. Lawrence By LESLIE BENNETTS The daughter of a Baron, she was the aristocratic German wife of a proper English professor. The son of a coal miner, he was a young English writer just beginning a literary career that would make him one of the most controversial and celebrated artists of the 20th century. They were the unlikeliest of lovers, and sh e had three children and a conventional home to care for. But when Frieda von Richthofen Weekly met D.H. Lawrence, the power of their passion compelled her toabandon her family and run away with him to l ive the gypsy life with a nomadic genius.

''THERE is no essential difference between the artist and the craftsman. The artist is an exalted craftsman.'' With this proclamation, Walter Gropius opened the Weimar Bauhaus in 1919 and dedicated it to breaking down the ''arrogant barrier between craftsman and artist.'' More than 60 years later, in spite of the reverence of museums, collectors and even the public at large for the Bauhaus's products, we are not yet able to accept without reserve the concept of craft as art. New York City in particular, perhaps because of its position at the pinnacle of the art world, has been slow to admit craftsmen to the exalted ranks of the fine artists. This is despite the pioneering efforts of the Museum of Modern Art, which almost from its inception in 1929 has been dedicated to promoting Bauhaus notions of integrated creativity, and the presence of the museum's near neighbor, the Museum of Contemporary Crafts (now the American Craft Museum), celebrating its 25th anniversary this year. What other city can boast two such showcases for esthetically oriented crafts?

THE Grumman Corporation's case against the proposed takeover by a Dallas-based conglomerate went to United States District Court last week at the same time that Wall Street analysts were speculating that rival bidders might join the fight to buy Grumman's stock by offering more than the $45 a share that the LTV Corporation wants to pay. If that happened, one analyst said, the Bethpage-based defense manufacturer could become the grand prize in a bidding war similiar to the protracted fight earlier this year to take control of Conoco. The E.I. du Pont Company acquired Conoco after outbidding Seagram's, the liquor distributor. Grumman officials declined to comment on the possibility that other companies had expressed any interest. Financial analysts say that defense-related issues are attractive now because of the Reagan Administration's commitment to an increased defense budget, which is thought to hold the promise of a decade of prosperity for defense and aerospace companies like Grumman.

Haunted by the memory of the assassination four days ago of President Anwar el-Sadat while he was surrounded by aides and bodyguard s, Egyptian officials turn ed his funeral today into an intense exercise in security control. Thousands of soldiers, airmen, policemen and special security agents were detailed to insure that the leaders of more than 80 nations who came here for the funeral, as well as Egyptian officials and the family of the slain President, would be safe. Policemen and soliders carrying automatic weapons guarded hundreds of miles of streets in this sprawling city. Sandbagged gun emplacements could be seen in the lobbies and on balconies of official buildings. Armored cars filled with soliders in battle dress stood ready in every major square, and helicopters circled continuously overhead.