January 10, 1997

Article by Mimi Sheraton on her one-year walk through every street, avenue, alley, court, place, lane, mews and square in Greenwich Village, NYC; says four-season stroll celebrated her 50th anniversary as a resident and was an attempt to judge whether friends are right whey they say the Village is not what it used to be; map; photos (L)

Comment on New York City Medical Marijuana Buyers' Club, whose members, all ill, buy marijuana each week from wholesale club, and smoke it for medicinal purposes; club has existed for nearly four years, mostly without much attention, but passage of referendums in California and Arizona legalizing marijuana for medical uses has caused groups's leaders to go more public, working to make a similar change in New York; photos (M)

Speaker Newt Gingrich, who promised not to use House office or allies to counterattack on ethics charges against him, nevertheless made suggestions to Republican leaders about statement they would issue immediately after charges were disclosed; Gingrich held telephone conference call with allies on very day in December when he admitted bringing discredit on House and promised not to orchestrate response, in exchange for avoiding humiliation of full-scale public trial; call was made even before charges were made public; it was taped by people in Florida who heard it on police scanner that picked up cellular phone transmission, and later given to Democratic Congressman who passed it to The New York Times; Gingrich suggested timing of responses which would not technically violate Gingrich's elaborate plea agreement with ethics subcommittee; clearly heard on tape are Gingrich attorney Ed Bethune and Reprs Dick Armey, Tom DeLay and Bill Paxon; photo of Gingrich and other House members prior to final Electoral College count in Presidential election (M)

VW to Pay $100 Million To G.M. to Settle Lawsuit Volkswagen agreed to pay $100 million to General Motors to settle a lawsuit contending that a former top VW executive, Jose Ignacio Lopez de Arriortua, stole trade secrets when he left G.M. The settlement brings to an end a four-year feud between two of the world's largest car companies. In the agreement, one of the biggest in a corporate espionage case, Volkswagen also agreed to buy at least $1 billion worth of auto parts from the American company over the next seven years. While not admitting any wrongdoing, VW also said that it ''acknowledges the possibility that illegal activities'' by Mr. Lopezmight have occurred. $(Page A1.$) Hughes Bids May Top $10 Billion The two bids for the military businesses of Hughes Electronics are likely to come to perhaps $10 billion, but will hinge less on their face value than tax considerations and estimates of the future value of the stock of the winning company. The bidders, Raytheon and Northrop Grumman, have both submitted packages that come to 500 pages each. $(D2.$) Producer Prices Rise Producer prices rose more than expected during December, but when the cost of energy and food was excluded, the increase was below forecasts. Prices were up half a percent over all, but they rose only one-tenth of a percent without the two volatile categories. $(D2.$) Liggett Seeks Broader Settlement The Liggett Group, which shocked the rest of the tobacco industry last March by breaking ranks and agreeing to settle several major lawsuits, is now trying to reach an even broader settlement, according to lawyers familiar with the talks. $(A16.$) F.A.A. Found More Valujet Flaws The F.A.A. found problems with Valujet's system for assuring the safety of its planes as recently as December, six months after one of its jets crashed in the Everglades. $(A12.$) Labor Votes at United Airlines Mechanics for United Airlines rejected a wage increase proposal, but other workers accepted the plan. $(D2.$) Norfolk Southern Loses Court Bid Norfolk Southern lost a bid to have a court strike down an agreement that prevents Conrail from discussing a merger with anyone other than the CSX Corporation. $(A16.$) Telmex Aims for American Market Telefonos de Mexico plans to seek authorization with the F.C.C. to offer its own phone services in United States markets that are heavily Spanish-speaking. $(D3.$) The Agony of Finishing Second Ikon Office Solutions, a giant office equipment and technology company with a new name, is urging those who consider business a battle to ''Work to win.'' The company hopes the theme of its $50 million campaign will cut through the technological clutter of office supply advertising. And it will do that with humorous views of the downside of not finishing first. One ad shows a dinosaur skeleton, declaring, ''Second place, evolution.'' Another ad shows a statue of Lenin being pulled from its pedestal; the headline is ''Second place, cold war.'' Stuart Elliott: Advertising. $(D15.$) Nasdaq Shifts on New Rules Nasdaq said that it had it scaled back its proposal to reduce the minimum number of shares that can be traded under the S.E.C.'s new order-handling rules. $(D2.$)

Bill requiring HIV tests for residents of state-run psychiatric hospitals clears New Jersey Assembly Community Services Committee; supporters say bill will protect patients and staff from being infected with AIDS; Gov Christine Todd Whitman's AIDS Advisory Council opposes bill (S) (New Jersey Daily Briefing)

Stock prices rise to new highs, propelled largely by inflation report that caused short- and long-term interest rates to fall sharply; Dow Jones industrial average jumps 76.19 points, to 6,625.67, third closing high it has set this year; Standrd & Poor's index of 500 stocks rises 6.44 points, to 754.85; volume on New York Stock Exchange is heavy, at 555.37 million shares; analysts say catalyst for rally was Government report showing that producer prices remained largely in check during December(M)

Sharp decline in Japanese stock market noted

Task force recommends that Bergen County (NJ) lease Bergen Pines Hospital in Paramus, state's largest public hospital, to Bergen County Improvement Authority, independent agency; authority could then sublet it to a private hospital or nonprofit group; county has been trying to find way to get out of running hospital; union that represents 650 nurses at hospital charges that move is thinly veiled effort to lay off staff and substitute nonprofessionals (S) (New Jersey Daily Briefing)

Carnivorous lizard loose in museum. Familiar but fun.

Essex County (NJ) grand jury indicts Sandra M Childress, 36-year-old child-care director of West Orange YMCA, on charges of stealing $23,936 from Y (S) (New Jersey Daily Briefing)

Two pipe bombs placed in trash bins in rundown section of Tel Aviv explode 10 minutes apart, wounding 13 people; photo; Prime Min Benjamin Netanyahu says signs point to terrorists, and suggests he may suspend current negotiations with Palestinians if bombing was staged from territory they control; cuts short meeting with US mediator Dennis Ross to visit hospital; no group takes responsibility; police say devices were small and improvised; bombs were placed near former bus terminal in seedy area where thousands of foreign workers live in crowded hotels (S)

Harry B Helmsley bequeaths his entire $1.7 billion empire to his wife, Leona, except for $25,000 he leaves to his long-time secretary; his will automatically anoints Leona Helmsley as one of dominant forces in New York City real estate; will transfers to Mrs Helmsley ownership and management over his stable of properties, from Empire State Building and One Penn Plaza to chain of hotels that includes Helmsley Park Lane and St Moritz; it also gives her freedom to transfer or sell any properties (M)