xargsにスペースと特殊文字を処理させる方法は？

使用-d '\n'あなたのコマンドでxargs：

cat file | xargs -d '\n' -l1 mkdir

マンページから：

-d delim
              Input  items  are  terminated  by the specified character.  Quotes and backslash are not special; every
              character in the input is taken literally.  Disables the end-of-file string, which is treated like  any
              other  argument.   This can be used when the input consists of simply newline-separated items, although
              it is almost always better to design your program to use --null where this is possible.  The  specified
              delimiter  may be a single character, a C-style character escape such as \n, or an octal or hexadecimal
              escape code.  Octal and hexadecimal escape codes are understood as for the printf command.    Multibyte
              characters are not supported.

出力例：

$ ls
file

$ cat file
Long Name One (001)
Long Name Two (201)
Long Name Three (123)

$ cat file | xargs -d '\n' -l1 mkdir

$ ls -1
file
Long Name One (001)
Long Name Three (123)
Long Name Two (201)