Do a cat -v LIST to see if there are any special characters that you don't see with a simple echo. I suspect DOS line endings, i.e. extraneous carriage returns before the newline.
EDIT: to convert the LIST file:
dos2unix < LIST > LIST.new && mv LIST.new LIST
Or if you don't have dos2unix, but do have vim: vim LIST, then :set notx, then :wq