October 16, 1986

After months of bitter feuding, John S. Dyson, the Liberal Party candidate for the United States Senate, will endorse his Democratic opponent, Mark Green, today, according to aides to both candidates and the Liberal Party. They said Governor Cuomo had played a major role in persuading Mr. Dyson to forge a united front against the Republican incumbent, Senator Alfonse M. D'Amato, who won his first term in 1980 in a three-way race. The Governor has been sensitive to criticism that he has not vigorously opposed Mr. D'Amato in a year when the Democrats are attempting to win control of the Senate. Attacks Since the Primary Most of the Green-Dyson crossfire came during the Democratic Senate primary between the two. Mr. Green won that race, but Mr. Dyson has continued his attacks, calling Mr. Green and Senator D'Amato ideological ''extremists'' and identifying himself as ''the mainstream Democrat.''

''OH dear.'' Thus spoke the New York decorator Keith Irvine, gazing at a plastic yellow banana phone. The object of Mr. Irvine's dismay was a novelty telephone (''nasty''), one of hundreds of home phones that have sprung up since the 1977 divestiture of A.T.&T. Where once simple black boxes sporting elegant dials ruled, today Alexander Graham Bell's invention comes in a menagerie of forms that include Coca-Cola bottles, toucans, peekaboo Lucite globes and, in the case of the desk-top Versailles phone, with a reproduction Renoir discreetly planted in the number card. To try to untangle the brave new world of telephone design, where taste and tackiness collide, The Home Section invited four leading designers - the decorators Mark Hampton and Keith Irvine, the industrial designer Niels Diffrient and the architect Frances Halsband - to a Phone City outlet on East 57th Street.

Shearson Lehman Brothers Inc. offered to acquire E.F. Hutton Group for at least $1.5 billion in a friendly transaction but was turned down by the brokerage firm's management, according to Wall Street sources. Rumors, however, continued to circulate on Wall Street that other offers have been made to Hutton, including one from another investment banking firm, and that Shearson may at some point return to the bidding. The sources said the Shearson proposal was made in recent days and was contingent on the deal being done on a friendly basis, a common prerequisite for brokerage industry mergers since the success of the business is so dependent on having cooperative employees.

John Jay Iselin, who presided for 15 years over bounding successes and recurring financial crises at WNET, Channel 13, resigned as president of the New York public-television station yesterday, saying, ''It's a good thing for the organization, and for the individual.'' Channel 13 has been undergoing drastic reassessment in recent months, including a major revision of its operational structure and plans to retreat from its cherished but costly role as a principal supplier of programming to the Public Broadcasting Service, the national programming system, which serves some 300 member stations. The station, pressed by economic woes, also eliminated about 60 jobs, more than 10 percent of its work force. Growing Dissatisfaction Although his resignation yesterday was voluntary, Mr. Iselin was in effect ''put on notice'' by a committee of Channel 13's board of trustees last month that there was growing dissatisfaction with his leadership, according to members of the station's board.

The House of Representatives tonight approved a $576 billion comprehensive appropriation bill for 1987 that would restrain the growth of Federal spending. The 235-to-172 vote came after House and Senate conferees agreed this morning on the compromise bill. The Senate is to take up the comprehensive bill Thursday. Prospects for passage there are considered good, Budget writers said that based on the conference agreement, it appeared Federal spending in 1987 would grow as little as 1 percent over 1986. This is far below the 4.5 percent increase in 1986 and well below the average annual increase of 11 percent from 1975 to 1985. The increase would be the smallest since Federal spending actually declined in 1965. Closer to Deficit Ceiling The slowdown of spending set out in the measure, which includes the 13 separate appropriations needed to pay for Government operations, will help Congress move toward the $154 billion ceiling for the Federal deficit under the budget-balancing law.