This report presents the results of the initial phase of the File Organization Project, a study which focuses upon the on-line maintenance and search of the library's catalog holdings record. The focus of the project is to develop a facility for research and experimentation with the many issues of on-line file organizations and search. The first year has been primarily devoted to defining issues to be studied, developing the facility for experiment, and carrying out initial research on the issues. Achievements involved: (1) obtaining equipment; (2) programming and testing an initial software system, and then expanding it to supply access to the central processor from two different mechanical terminals at two remote locations; (3) planning for acquisition and incorporation of an existing machine file as well as bibliographic records which require original conversions; (4) developing software for data base preparation and for file handling and access; and (5) initiating analyses on issues such as optimum length of search keys. Appended are six reports which cover specific aspects of the project and an article entitled "The Organization, Maintenance and Search of Machine Files," reprinted from "The Annual Review of Information Science and Technology," volume 3. (JB)