On February 5, 1897, the Indiana General Assembly voted unanimously to pass a bill set the value of π equal to 3.2. The bill actually dealt with issues behind an old geometrical puzzle involving squaring a circle. Is it possible to create a square with the same area as a circle in finite steps using only a compass and straightedge.
An Indiana amateur mathematician named Edwin Goodwin believed he had discovered the elusive solution to this problem. He approached his state representative, Taylor Record with an idea that would gain him recognition for his achievement, and help his home state out in the process. Record introduced bill #246:
Fortunately, this vote took place the same day the head of Perdue University's Mathematics Department, Clarence Waldo was at the statehouse securing funds for the University's budget. When he heard the assembly was discussing mathematics, he listened in and was amazed. He spent the rest of the day educating Indiana senators on geometry and properties of transcendental numbers. His lessons were effective enough that the bill died on the Senate floor on February 11.
Find out what else occurred on this day in science history.
An Indiana amateur mathematician named Edwin Goodwin believed he had discovered the elusive solution to this problem. He approached his state representative, Taylor Record with an idea that would gain him recognition for his achievement, and help his home state out in the process. Record introduced bill #246:
A Bill for an act introducing a new mathematical truth and offered as a contribution to education to be used only by the State of Indiana free of cost by paying any royalties whatever on the same, provided it is accepted and adopted by the official action of the Legislature of 1897.If Indiana would accept the validity of his work, Goodwin would allow the state to use his discovery in school textbooks free of charge, while the rest of the country would have to pay a royalty. The bill contained various mathematical steps to square the circle where one step involved the value of the ratio of the diameter and circumference (the definition of π) is as five-fourths to four, or 3.2.
Fortunately, this vote took place the same day the head of Perdue University's Mathematics Department, Clarence Waldo was at the statehouse securing funds for the University's budget. When he heard the assembly was discussing mathematics, he listened in and was amazed. He spent the rest of the day educating Indiana senators on geometry and properties of transcendental numbers. His lessons were effective enough that the bill died on the Senate floor on February 11.
Find out what else occurred on this day in science history.

Comments
I think you should make it more clear that this is an urban myth.
http://www.snopes.com/religion/pi.asp
Sorry, you are correct, the link is to an Alabama myth.
Purdue has an interesting write up for the pi story at http://www.agecon.purdue.edu/crd/Localgov/Second%20Level%20pages/Indiana_Pi_Story.htm
This is funny, especially his choice of 3.2. According to his logic, he should have chosen 3.1, since Pi is closer to it than to 3.2. (And it goes without saying that 22/7 would be still better.)
actually, the snopes article lists, at the bottom:
“Though the claim to the alabama state legislature is pure nonsense, it is similar to an event that happened more than a century ago. In 1897 the Indiana House of Representatives unanimously passed a measure redefining the area of a circle and the value of pi. (House Bill no. 246, introudced by Rep. Taylor I. Record.) The bill died in the state Senate”
– http://www.Snopes.com/religion/pi.asp
So snopes actually states that this story is _not_ an urban myth. (the urban myth snopes mentions is about alabama setting it to 3. )