I assume by "does not start" , you mean does not crank over ...

http://catalog.worldpac.com/mercedesshop/sophio/wizard.jsp?partner=mercedesshop&clientid=catalog.mercedesshop&baseurl=http://catalog.peachparts.com/&cookieid=21H0MN3YU22C0YGWFW&year=1995&make=MB&model=E-320-004&category=J&part=Neutral+Safety+Switch

Replace it...common complaint.

I would do the shift bushing at the same time...

http://catalog.worldpac.com/mercedesshop/sophio/quote.jsp?clientid=catalog.mercedesshop&cookieid=21H0MN3YU22C0YL13F&baseurl=http://catalog.peachparts.com/&partner=mercedesshop&year=1995&product=J4070-44817&application=002613918

Check this post:

1995 E320 intermittently does not start

Easy and inexpensive repair, but don't put it off. One random day the neutral start switch will fail completely and the car won't start at all. Per murphys law, this will occur at the most inconvenient time and location. Don't ask how I know this...

- JimY