Hannah Stern displays her grandparents' memorabilia. A famous photograph shows Theodor Herzl, the founder of mod- ern Zionism, leaning over a Jerusalem bal- cony, gazing to the Jaffa Gate and the Citadel of the Old City. The photograph isn't quite ge- nuine, according to Meir Stern, whose first-floor balcony possesses that par- ticular view of the Jaffa Gate and the Citadel. The photograph of Herzl was executed in Basle, Switzerland. The Jerusalem scenery was superimposed later, Stern says. Which is not to say that the photograph is completely dis- ingenuous either. For eight days in 1898 Herzl was able to stand on that balcony at 18 Mamila Street and con- template the Old City, then in the hands of the Ottoman Turks. The Zionist leader was a house guest of Stern's grandfather. But a genuine shot of Herzl on the balcony would have been impossible because Herzl was only in the house in the mornings, and the sun, rising over the Old City, would have obstructed the photograph. But for the Sterns, the memory of Herzl's visit was neither obstructed nor obscured by the passage of time, and the family has erected a kind of 24 FRIDAY, JULY 14, 1989 Herz]. Slept ere Preserving the memory of Zionism's founding father is just an old family tradition for Meir Stern. 111111MENUMBimmurall DAVID HOLZEL Israel Correspondent shrine to the Zionist leader. Meir and his sisters, Hannah and Ruth, say their connection to their house and their grandfather's illustrious visitor is so strong that for 19 years they have defied attempts by the authorities to demolish the building to make way for a commercial center on the western approach to the Old City. Jerusalem officials broke ground on the Mamila Development Project in May. Because of the Stern's perseverence, the house is now an in- tegral part of the plan. It is the latest chapter in a story that began 119 years ago, at a time when the first tentative steps were being taken by Jews to settle outside the Old City's walls. In 1870, when Herzl was a lad of 10, the Sterns' great-grandfather Judah sold his mills in Germany and moved to the land of Israel. Finding the Old City too crowded and poor for his affluent standard of living, Judah Stern bought a parcel of land from a nearby Greek Orthodox convent and began building a house amid a grove of olive trees less than a mile from Jerusalem's walls. In those days, even those who had any business outside the walls retreated behind them at night for safety. The Sterns, however, remain- ed at home at nightfall. Were they more fearless than other