call-with-input-file is an R5RS procedure that takes an arbitrary procedure of one argument and returns the result of that procedure. The port opened by call-with-input-file will be closed upon return from the procedure given in the 2nd argument, however if the procedure never returns, the port won't be closed. The MzSchemecall-with-input-file* function will close the port even if control leaves the procedure passed to it.
Of course, if you want to read everything into a big string and process the string (like calling File.read() in Python), you can define the following:
MzScheme's call-with-input-file accepts a third argument which allows you to specify 'text or 'binary, 'text is used to handle platform differences in newlines.
Don't be fooled by read. read is for reading S-Expressions from a port (i.e. Scheme code). readline and read-string are for reading raw text.