an apparatus for separating a lead pack from a continuously moving file of folded sheet objects such as paper napkins and transferring the pack to a work station . each pack in the file is identified by a flag which projects a short distance from the file . a flag detector senses that a flag has reached a predetermined point along the path to indicate that the lead pack has advanced into a transfer pan . the flag detector initiates a separation and transfer cycle in which the lead pack is separated from the moving file and the transfer pan containing the lead pack is moved out of the path of the file and adjacent a work station where the pack is moved onto the work station .