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I can't see anything you're doing wrong.

Have you thought that the error might be generated by a line within your 'testfile'?

Perhaps put an echo command in at line 1 to see if you get output...

What is in testfile?

What you described is a common symptom of having a first line in your shell script be something like:
#!/shell/pathname
where the file specified by /shell/pathname either...

Pick a box or a desktop as home. Create ssh keys on the home box. Push the public ssh keys to 127 other boxes (this is the first and last bit of dog work)
How to:
ssh-keygen: password-less SSH...

With that many hosts, installing ssh public key is the way to go. Pick a good host to use for your management host. Don't use your desktop. It may take sometime to do for the first time but after...

This page will be handy for SSH Keys generation and copying it to the remote servers

3 Steps to Perform SSH Login Without Password Using ssh-keygen & ssh-copy-id