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A source familiar with the operation of the Journal said that publisher Ed Brennglass ordered the removal of the ar- ticle and two smaller sidebars on the Milken brothers just an hour or so before the paper was to start its press run. The deleted article was highly complimentary of the Milken family's generosity but also mentioned the indict- ment of the "junk bond" in- novator on federal racketeer- ing and securities fraud charges. Michael and Lowell Milken pleaded innocent to the charges Friday in a New York federal courtroom. Brenglass allegedly ex- plained that he had an agree- ment with the Jewish Federa- tion Council not to mention the Milken case in the Journal. The Journal, whose 65,000 circulation makes it the largest of the three Jewish weeklies in Los Angeles, was owned outright by the federa- tion until two years ago. After consistently losing money, the paper was sold in 1987 to eight major federation con- tributors and leaders, who in- corporated the paper and named Brennglass as publisher. The source cited a state- ment by Brennglass that he had polled the other board members of the Journal, who agreed with his decision to remove the articles. The two Milken brothers are natives and residents of the Los Angeles area, and their family foundations have been the leading benefactors of numerous Jewish and general causes in their hometown. The unpublished article reported widespread concern over whether to government might move to freeze these charity dollars if it claims and proves that the dispersed funds were obtained illegally. The largest beneficiaries in the L.A. Jewish community, according to the article, have been: • The Jewish Federation Council itself, including more than $5 million for the fun- ding of the Bernard Milken Jewish Community Campus in the San Fernando Valley section of the city. • The Simon Wiesenthal Center's Museum of Tolerance, now under con- struction, as well as $165,000 for the anonymous purchase of letters written by Anne Frank to American pen pals, which were purchased at an auction. • Endowment of a marriage and family counseling pro- gram and book acquisitions at the University of Judaism, a Conservative institution. • Endowment of the Sarah Milken Building to house the day school at Stephen S. Wise Temple, a Reform synagogue. The two Milken brothers and their families are active members of the temple and have funded teacher grants and cantorial scholarships. Other major beneficiaries have been the Bet Tzedek public interest law program, the Anti-Defamation's League's multi-media pro- gram to fight prejudice, and various Jewish day schools. Brennglass could not be im- mediately reached for com- ment over the weekend. Bill Would Monitor Activities By PLO Washington (JTA) — Two senators were to introduce a bill this week that would re- quire the Bush administra- tion to report every four months on Palestine Libera- tion Organization activities, as long as the United States continues its dialogue with the PLO. Sens. Connie Mack (R-Fla.) and Joseph Lieberman (D- Conn.) said they do not oppose the U.S. decision last December to begin its dialogue with the PLO, and do not see the bill as a first step in ending that dialogue. "We are trying to put a positive approach on this, that in fact there is now a dialogue, that there has been a positive statement on the part of Mr. Arafat," Mack said. There is a need for more "positive actions" by the PLO, he said. Besides requiring Bush to tell Congress of any PLO plans to repeal sections of its covenant, the bill would ask Bush to report, "in