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)

Peter Marks reviews Visiting Mr Green, new play by Jeff Baron at Union Square Theater; photo of Eli Wallach and David Alan Basche (M)

Increasing number of corporations move to impose structure and supervision on their work-at-home employees; goal is to allow coveted workers flexibility and support they are demanding, while addressing bosses' concerns about productivity, liability and fairness; in Somerset, NJ, Merrill Lynch has set up 'Telecommuting Simulation Lab' whose goal is to teach people to work at home the Merrill Lynch way; typical employee seeking to work at home undergoes four full months of applications, interviews and formal training about how telecommuting should and should not be done; workplace experts say Merrill Lynch lab is one of most ambitious efforts in country to regulate working at home, and reflects turning point in how telecommuting works; charts (M)

Japan, with economic power to ease Asian economic crisis, has instead contributed to it by long ignoring its own problems; few analysts expect Japan to move decisively to fix its own problems or Asia's, despite its announcement of $16 billion in tax cuts and plans for $77 billion bailout of its own financial mess; foreign critics charge Prime Min Ryutaro Hashimoto has adopted contractional fiscal policy that threatens world economic growth; graphs (L)

for the holidays, dining well and warmly in the soft light of history**Ruth Reichl article on New York's Hudson Valley in winter recommends food at several old inns: Old Drivers Inn in Dover Plains, Aubergine in Hillsdale, Depuy Canal House in High Falls and Xavier's at Piermont; photos; map (M)

The Wiz Inc, largest consumer electronics retailer in New York region, files for protection from creditors under Federal bankruptcy laws; Wiz was in part victim of its own strategy: electronics retailers now routinely try to undersell their competition, shaving profit margins so deeply that it has become increasingly difficult to make money; company will close 17 of its 50 Nobody Beats the Wiz stores; photo (M)

George Vecsey Sports of The Times column discusses problems besetting New York Rangers; speculation that trades or coaching change will occur soon noted; photo (M)

Mandela Scolds the Whites Nelson Mandela, who has often been conciliatory, said in a major political speech that whites were trying to maintain a privileged socio-economic position in South Africa. Page A3.