on January 16, 1967, the Monkees held their first recording session as a fully functioning, self-contained band, recording an early version of Nesmith's self-composed top 40 hit single "The Girl I Knew Somewhere", along with "All of Your Toys" and "She's So Far Out, She's In". The same month, Kirshner released their second album of songs that used session musicians, More of the Monkees, without the band's knowledge. Nesmith and Tork were particularly upset when they were on tour in January 1967 and discovered this second album. The Monkees were annoyed at not having even been told of the release in advance, at having their opinions on the track selection ignored, at Kirshner's self-congratulatory liner notes and also because of the amateurish-looking cover art, which was merely a composite of pictures of the four taken for a J.C. Penney clothing advertisement. Indeed, the Monkees had not even been given a copy of the album; they had to buy it from a record store. The climax of the rivalry between Kirshner and the band was an intense argument among Nesmith, Kirshner and Colgems lawyer Herb Moelis, which took place at the Beverly Hills Hotel in January 1967. Kirshner had presented the group with royalty checks and gold records. Nesmith had responded with an ultimatum, demanding a change in the way the Monkees' music was chosen and recorded. Moelis reminded Nesmith that he was under contract. The confrontation ended with Nesmith punching a hole in a wall and saying, "That could have been your face!" However, each of the members, including Nesmith, accepted the $250,000 royalty checks (equivalent to approximately $ in today's funds). Kirshner was reported to have been incensed by the group's unexpected rebellion, especially when he felt they had a "modicum" of talent when compared to the superstars of the day like John Lennon and Paul McCartney. Soon after, Colgems and the Monkees reached an agreement not to release material directly created by the group together with unrelated Kirshner-produced material. Kirshner immediately violated this agreement in early February 1967, when he released "A Little Bit Me, A Little Bit You", composed and written by Neil Diamond, as a single with an early version of "She Hangs Out", a song recorded in New York with Davy Jones' vocals, as the B-side. (This single was only released in Canada and was withdrawn after a couple of weeks.) As a result, Kirshner