General :: Xargs - Inserting Picture Into Group

I want to insert a picture into a group of pictures (I memorized their names in a text file) resulting a new group of picture (which I also memorized their name in another text file), but I have a problem doing that. I want to write something like that:

$> cat file1 | cat file2 | xargs composite -blend 30 text.jpg line_file1 line_file2
where
file1 is:
frame1.jpg
frame2.jpg
frame3.jpg
....

and file2 is:
new_frame1.jpg
new_frame2.jpg
new_frame3.jpg
...