<$foo> reads from the file. So you're reading the first line in the file, then in print reading another one and printing it. Try using $_ instead.

For clarity sake, especially in situations where speed is not as important, it's best to say something like:

  while (my $line = <foo>) {
    print $line, "\n";
  }
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The code is a bit more self-explanatory to Perl newbies (and sleep/food-deprived programmers) and is less likely to be buggy if you start using things like grep that twiddle with the value of $_.