December 17, 1997

Pataki supports a proposal to give off-peak E-Z Pass discounts to truck drivers. PAGE B3 Inaugural festivities for Giuliani are to stretch over three days. PAGE B2

Office tower at 540 Madison Avenue has long been subject of fierce disputes involving owner, contractor and architect over flaws in brick wall that tumbled into street last week and is now being repaired at cost of millions; lawsuit filed in 1973 contended that exterior walls on two sides of tower began to collapse, crack and otherwise deteriorate shortly after building opened in 1970; owner was Francis Kleban, now dead, contractor was Diesel Construction, now absorbed by another company, and architect was Kahn & Jacobs, now defunct; it is unclear how lawsuits were resolved; current owner, Harry Macklowe, and city's Buildings Dept both say Diesel Construction, one of city's largest contractors, had erected tower largely without thousands of brick ties that bind brick facade to building's internal masonry; Macklowe says he was unaware of problems when he bought building 18 months ago; photo (M)

Japan's Prime Minister Ryutaro Hashimoto calls for two trillion yen cut in Japanese income taxes to help revive economy that has stagnated for much of decade; tax cut of that magnitude, worth $15.4 billion at current exchange rates, is more in line with what private economists say is needed to reinvigorate Japan; Nikkei 225-stock average closes up 555.85 points, or 3.48 percent, to 16,541.06 (L)

John Willoughby-Chris Schlesinger article in praise of Smithfield and other country-style hams of the American South; photos; recipes (M)

R W Apple Jr article on winter stay at Old Chatham Sheepherding Company Inn in Old Chatham, NY; recommends fine cuisine of young chef, Melissa Kelly, as well as wine list and attractions of surrounding countryside at northern end of Taconic Parkway; photos; map; recipes; handsome Federal inn is owned by Tom and Nancy Clark, who also run largest sheep dairy in US on property (M)