Third R

Four of Lynchburg, Va.'s seven city fathers last week looked sheepish as men who had gone to school with them pointed derisive fingers. The Lynchburg council had made a monkey of itself over arithmetic. The council was about to tax Chesapeake & Potomac Telephone Co. of Virginia 3% of its gross revenue for doing business in the city, when a councilman suggested that the franchise tax be set at 1 1/2% and the company be required to provide city officials with 40 free telephones. A 3% tax was calculated to yield $8,000. The annual charge for 40 telephones was $2,880. The council majority wanted whichever proposition would yield the city the greater net profit. For 15 minutes they argued about arithmetic. Then they voted 4 to 3 for a 1 1/2% tax and 40 free telephones. As proof of their wisdom the majority offered the following calculations :

Tax at 3% $8,000

Less cost of 40 telephones. . . . 2,880

Net yield $5,120

Tax at 1 1/2% $4,000

Value of 40 free telephones. . . 2,880

Net yield $6,880

Not until Lynchburg mathematicians explained to the council that in one case the city would have $5,120 in cash and 40 telephones and in the other the city would have $4,000 in cash and 40 telephones did its members discover the fallacy of their greedy vote.

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