CHASE LINCOLN FIRST ADDED TO EMPLOYEE BUYOUT PLAN MILKEN CHARGES TO BE HEARD BANK TAKES LOSS ON BUILDING UTILITY BUYS PROPANE DEALER CENTRAL HUDSON SETS DIVIDEND GE LAYOFFS WON'T HIT WAREHOUSE SEATTLE TOP FOR BUSINESSES.(Business)

Byline: -Staff and wire reports

Chase Manhattan Corp.'s woes are beginning to hit home at Chase Lincoln First Bank, its profitable upstate subsidiary, which has seven offices in the Capital District.

Chase Lincoln First announced Tuesday that it is making a severance program available to some employees. The program had previously been available only to employees of the parent corporation, which announced a major cost-cutting and layoff program Sept. 21.

Chase Lincoln spokesman James A. Sykes said the voluntary severance pay program will be paired with a cost- and staffing-reduction program that is in its final stages of design.

The program is intended to identify services that the bank feels are …