Two things: are you using the -w flag, and is the file in the location you are expecting?

When I checked the code, I found that when the file existed in the current directory, I saw the whole thing, but when it didn't, all I saw what what you are seeing.

With the -w flag set, I got this message back when the file did not exist:

readline() on closed filehandle main::FILE at script.pl line 7.