February 20, 2006

Israeli cabinet decides to freeze transfer of $50 million per month in tax and customs receipts due to Palestinian Authority, arguing that Hamas-dominated legislature means that militant group now leads Palestinians; cabinet decides to wait on other penalties it was considering, but withholding receipts puts it at odds with United States and rest of so-called quartet, European Union, Russia and United Nations; Israeli move will change shortfall of bankrupt Palestinian Authority from $60 million a month to $110 million; Hamas says it will seek aid from Muslim countries, including Iran; Israel and quartet have threatened to reduce aid to Palestinian Authority unless new government recognizes Israel's right to exist, renounces violence and accepts previous Israeli-Palestinian peace agreements; Hamas rejects conditions but is said to be seeking wording to satisfy at least part of world community; photo (M)

US speedskater Joey Cheek discusses rejection from Harvard University, and decision to donate his Olympics bonus money for gold medals to Right to Play children's humanitarian organization; photo (M0

Sumner Redstone stops purchasing shares of Midway Games after pushing his holdings to more than 89 percent equity by end of Dec causing those watching to question why; investors feel Redstone believes strongly in power of convergence between media companies and video game manufacturers although it is unclear that Redstone will see payoff on Midway; photos (M)

David Carr column discusses how grand jury investigation of high-profile private investigator Anthony Pellicano highlights possible corruption of legal system in Hollywood's movie industry; Pellicano and his co-conspirators were indicted on 110 counts of racketeering and conspiracy; charges of wire-tapping and background checks point to Los Angeles protection racket threatening integrity of courts; corruption seems to be throwback to days of moguls running studios less tied to larger media companies (M)

Anderson, Ind, and other midwestern towns rely on General Motors retirees long after plants have closed; GM's generous medical plans, prescription drug coverage and pension checks are indispensable for 10,000 GM retirees and their spouses and families who still live in Anderson area; they in turn help keep doctors, hospitals, restaurants and shopping centers in business; GM retirees outnumber its remaining workers by four to one in Anderson and city is expected to struggle as company reduces its benefits; Anderson is stark example of damage plant closings can cause; city has abandoned plants, deserted downtown and frustrated retirees who say city will die with them; photos; map of auto manufacturing jobs (M)