A study investigated how elementary teachers use literature in their classrooms, focusing on what instructional philosophies drive elementary literature programs; elementary teachers' knowledge of children's literature; and which books are being read to children and which books they are reading on their own, so that their "literary" knowledge can be ascertained. Seventy-four subjects--46 classroom teachers; 15 reading, special education and gifted and talented specialists; 5 librarians; and 8 administrators from 6 schools in Albany, New York, two each from urban, suburban, and rural settings--were interviewed. Lists of books, school or districtwide policy, individual teachers' weekly schedules for language arts activities, and student writing samples were also analyzed. Results indicated that: (1) the subjects expressed a strong belief in the importance of literature in the elementary curriculum; (2) reading aloud to students was the most widely used activity for involving elementary students in literature, followed by independent reading by students and by guided reading; (3) almost all students of the teachers interviewed spent half an hour a week in the school library; and (4) poorer readers were treated the same as better readers in terms of read-aloud and independent reading activities. (Three tables of data are included; 26 references and 3 lists of interview questions are attached.) (RS)